The collapse of ABC Learning is not merely a business failure, but a government policy failure of the highest order. Julia Gillard should be undertaking a fundamental reconsideration of child care support in Australia.

The full causes of the disgraceful collapse of this company may eventually come to light. Perhaps Eddy Groves’s penchant for related party transactions played a role. The reliance on an ever-increasing stock price to help fund ceaseless expansion certainly did. The Australia Institute argued back in 2006 that the company was vulnerable to share price collapse.