Response to interpellation 2023/24:364 on the consequences of marketization in preschools
Translated from Swedish by AI; the translation may contain errors. The Swedish text is the original.
Summary AI, written in advance
The debate concerns the consequences of marketization within preschools. L believes that the government is initiating a complete renovation of the independent school system to clear away unhealthy drivers and safeguard freedom of choice 1. L argues that an inquiry should propose expanded ownership reviews, profit distribution limits, and stricter sanctions to ensure quality 1 2. L believes that the government recognizes problems regarding profit extraction and low quality, and that quality should be the driving force rather than profit 3. L argues that children's right to a pedagogically sound operation is the main point 3. S believes that the pursuit of profit in preschools is desperate and deteriorates quality 4 5. S argues that a profit ban must be introduced and supervision strengthened 4 6. S believes that it is senseless to exploit the system to make money at the children's expense 7.
Written by AI in advance and may contain errors. The numbers lead to the speech a statement builds on; check against the text below.
Statsrådet Lotta Edholm (L)
Madam Speaker! Eva Lindh has asked me what general measures I intend to take in view of the fact that the quality of preschools risks deteriorating when profits are prioritized. Eva Lindh has also asked me what general measures I intend to take to counteract parents and children becoming worried and upset in view of what is described in the interpellation.
All children and students should get a good start in life. Conducting education within the school system in Sweden means that one manages society's trust for that mission. Many preschools conduct an operation of high quality, but unfortunately, there are also preschools and school administrators that do not.
The Government considers that unserious and unsuitable actors should not be permitted within the school system. Therefore, we are now starting a complete renovation of the Swedish independent school system, which shall clear away the unhealthy drivers while simultaneously safeguarding freedom of choice. Individual owners who run preschools or schools of low quality shall not be allowed to take out profit.
The Government decided on 6 July 2023 on supplementary directives for the Inquiry into Profit in Schools (dir. 2023:109). The investigator shall, among other things, propose an expanded ownership and management review, certain profit distribution prohibitions or other profit distribution limitations, and significantly tightened sanctions - a package of various measures as a response to all cases where children's and students' right to a good education is not met. The inquiry shall submit its proposals by 28 February 2025 at the latest.
For the government, it is important that the reform also covers preschool. It should not be possible to make money by reducing quality, neither at independent schools nor at preschools. We know, for example, that the preschool teacher density is lower in independent preschools compared to municipal preschools. Unlike the directive that the previous government decided on, our directive to the commission fully includes preschool as well. All children and parents should be able to trust that individual operators who run independent preschools prioritize the children's right to good education and care over the owners' profits.
Eva Lindh (S)
Madam Speaker! A Norwegian multi-billionaire corporation bought up three preschools in Norrköping. Now staff and parents are fleeing because it has become obvious that the ownership has primarily been about making money, not the children's care. The same company has had to close primary schools in Sollentuna and Nacka after massive criticism.
During 2022, the group, in which the three preschools in Norrköping are included, took out 10.9 million Norwegian kroner in dividends. The three preschools in Norrköping are therefore owned by the Norwegian company Dibber. It is a multinational group that exists in ten countries. The first preschools in Sweden were purchased in 2017. Today they have 91 preschools and 13 schools from Malmö to Bollnäs. In a few years they have become a large group in Sweden, and they turn over amounts of many millions.
Private large corporations of this kind are common in the school world but not yet as common in the preschool world. That situation can, of course, change if it becomes noticeable that profits can be made at the expense of the quality of the operations.
In Norrköping, the group wanted, for example, to get in as many children as possible even though the premises were limited. The children were then to be driven around in box bikes to reduce the number of children in the premises. Fortunately, this was not approved by Norrköping Municipality, but it shows that the pursuit of profit is actually desperate and can come at the expense of the children.
What is the general situation in Sweden? Well, just as the Minister mentioned, for example, the prevalence of preschool teachers is decreasing. That is to say, there is a lower proportion of qualified staff in private than in municipal preschools. It is also the case that the proportion of preschools operated by companies is increasing, and a few large corporations are taking an increasingly dominant role. There is a risk that unserious actors and the pursuit of profit – just as in primary school and upper secondary school – will have an ever-increasing negative impact on the preschool's equality and quality.
What needs to be done then? We Social Democrats believe that a profit ban needs to be investigated and introduced in the preschool area as well, and that the supervision of preschools needs to be strengthened. Fewer qualified educators means a difference in the operations. A preschool should not just be a place to be. It must also contain a pedagogy and fulfill what the curriculum says. In the case of Norrköping, there is only one qualified preschool teacher per children's group.
We know that preschool and the pedagogy there play a major role for the children here and now, but also for their future knowledge development in school. That is why I also asked what measures the Minister intends to take when the quality deteriorates due to the pursuit of profit.
Mattias Ottosson (S)
Madam Speaker! Norrköping is my home municipality. That is where I and my children grew up, and where my children attended preschool. There, I have also been a municipal politician for quite many years and worked with various municipal issues - naturally also the preschool.
My experience is that parents and children are very fond of preschool. I experience that one is more fond of preschool than of primary school or upper secondary school. That feeling changes with the years. That means something; preschool fulfills an important function for children and parents.
Since the billion-dollar corporation Dibber took over preschools in Norrköping, very much has happened. It is not so common in the preschool world, but it has happened. They took over three preschools: Gården, Hagen and Kolmårdstrollen. Kolmårdstrollen is also a lovely name!
It concerns three different types of preschools. Gården is located in central Norrköping, Hagen is in Hageby, which is a more socioeconomically disadvantaged area, and Kolmårdstrollen is out in the countryside. These are, therefore, different areas, but the development has been the same in all three. The children and the parents have moved away from the preschool since the billion-dollar corporation took over. The reason for that is that they perceive that there have been significant and large deteriorations. They do not perceive it to be a good operation. They have moved in protest.
The parents have tried to demonstrate this. They have noticed it and written letters. They have reported to the School Inspectorate that the preschool is not functioning. Norrköpings Tidningar has also examined this in a very good way and highlighted the problems. It has also emerged that it has been reported to the Work Environment Authority that the staff do not enjoy working at the preschool. People have moved as staff. It has decreased quite significantly. Today, there is one preschool teacher per group of ten children. In the rest of the municipality, it lies somewhere between two and three preschool teachers per group. It is clear that it is about chasing money.
The absolute worst thing I heard was that those who work in the kitchen are allowed to bring their own kitchen appliances so that they can provide the children with breakfast and lunch; that is something they no longer invest in. It becomes so obvious that it is only about a Norwegian multi-billionaire corporation making money.
Preschool has been important for our children to receive good pedagogical activities during the day and for women and men to be able to work. We have a high employment rate in Sweden. Both women and men are out in the workforce, and one of the absolutely strongest contributing causes to that is preschool.
It is actually the same question again to Minister Lotta Edholm. Does the Minister not agree that we must put a stop to a system where only profit counts and where someone is to make money on the children? The important thing with preschool is that the children receive a pedagogically good education and that women and men can work during the day. That is what creates development and growth in Sweden.
Statsrådet Lotta Edholm (L)
Madam Speaker! The most important thing about preschool is exactly what Mattias Ottosson highlights; preschool was expanded significantly so that mothers could work. Then, over the years, the activity has taken an increasingly pedagogical direction, a direction that I fully support. Preschool is important for children's development but also so that they will gradually have better prerequisites in primary school.
There are naturally problems even in preschools linked to independent alternatives, just as within the school world. That is why the government has chosen to include preschools in the investigation on independent schools that has now been commissioned. The previous government chose to let it be a voluntary part for the investigator, but we believe that there are problems even within independent preschools and that they should be treated in the same way as the independent schools as a whole.
Then it is clear that it is a bit more complicated when it comes to the preschools, because it is the municipalities that grant the permits and also carry out the supervision. A very large responsibility therefore rests on the municipalities: to ensure that the independent alternatives that one approves are inspected and that they follow the legislation that exists. I know from my own experience as a former school board member in Stockholm that it is a neighborly and important task for an education committee to ensure that the operation is of the quality that it should have a permit. In Stockholm, we revoked many permits over the years for varying reasons. Often it was precisely about what the interpellor is touching upon, namely lack of quality. Therefore, it is important that this investigation into profits in schools now also covers the preschool.
Eva Lindh (S)
Madam Speaker! The importance of preschool for children cannot be overstated. It is incredibly important that both children and parents feel secure with the care and pedagogy that the children receive at preschool. It therefore makes me incredibly upset when such things are uncovered: that money is more important than the children's care.
What perhaps distinguishes us from the government is that we believe profit bans should apply. The pursuit of profit shall be prohibited within the school system. We propose that it should also be so in the area of preschools. Now that we see this happening in more and more preschools as well, it is important to address it and ban the pursuit of profit. Money must never be allowed to be governing when it comes to the quality of preschools.
It is naturally important to now have clear and good supervision so that we can detect if there are deficiencies in quality. It really needs to be strengthened. But during the time that the supervision is ongoing, problems can also occur. That these are addressed is naturally important every year and every day for the children attending preschool. Therefore, we believe that a profit ban should be introduced, so that these risks do not arise.
In addition to supervision, it is of the utmost importance that the municipalities have a decisive influence over the establishment of independent schools. This means a lot, because parents often choose a preschool that is located nearby. It is, of course, about being able to manage everyday life. I know many parents who say that they have no other choice, either because there is no other preschool nearby or because there have become so many independent schools that one cannot choose a municipal one that is located nearby.
We must put a stop to the profit-seeking in preschools, primary schools, and upper secondary schools. We cannot risk that children and young people receive a poorer education because the pursuit of money is the overriding priority. We need to collectively put a stop to this.
Mattias Ottosson (S)
Madam Speaker! We live in a time when it is quite tough economically. The municipalities are currently going through a steel bath, and Norrköping Municipality is no exception. Then it is clear that it stings even more in the eyes when someone exploits the system in this way. One is forced to close municipal preschools that have two or three preschool teachers employed in each children's group. But in the independent preschools that I mentioned, one has a preschool teacher for ten children and is constantly trying to chase costs to bring in money for the Norwegian owners. I think it stings in the eyes when one acts in that way.
I think the example with the unused cargo bikes says it all. One would try to exploit the system and squeeze in more children. But they would not fit in the preschools and would instead be cycled around the city. In bad weather, one would go into the city library. To me, this is completely nonsensical. It is a way to cheat the taxpayers. If it were the case that this could be run in an efficient way, I think one should lower the tax instead. I become upset when I learn that this can occur.
It is clear that we must have a preschool that is for the children's best interests and so that parents can go to work. That is why we have a preschool, and that is why I think the government must act immediately and put a stop to these profit extractions. What is happening right now is not wise.
Statsrådet Lotta Edholm (L)
Madam Speaker! It is now extremely important that we address the problems that exist. It is very important that the investigation that is currently underway provides proposals concerning preschool, even though both licensing and supervision of it are handled by the municipalities, in contrast to primary school and upper secondary school.
What should the investigation do then? It should, for example, submit proposals for stricter ownership reviews when one starts or buys and takes over an existing preschool. There must be significantly better financial guarantees.
A problem in the school sector and especially in the preschool sector - I would say, and which the School Inspectorate has also pointed out - is that there are many operations that are very fragile. One has very few financial resources behind them if, for example, problems arise.
The investigator shall also submit proposals on how to reclaim, for example, school fees in the case of criminal activity. It is important that owners cannot get away with receiving school fees and then using the money for criminal activity.
The investigator shall also submit proposals regarding profit distribution for new friskolor. This also applies to profit distribution bans for preschools and schools that do not have a sufficient quality or where there are major problems.
The investigator shall propose sanction ladders to ensure that quality is improved. The investigator shall also propose possibilities for compulsory management of schools that do not meet the requirements.
Today, it is possible to compulsorily manage municipal schools. It has only been used on one single occasion. The investigator will now propose this also for the school and preschool area for the independent schools. It is naturally an important instrument. The children do not need to change activities; the school can simply be compulsorily managed.
The investigation is working now and will present its proposal in about a year. At that time, we will see a regulatory framework that has been significantly tightened compared to how it is today, and preschool will also be covered, unlike the directives that the previous government presented.
Eva Lindh (S)
Madam Speaker! The proportion of preschools run by companies is increasing. A few large corporations are taking an increasingly dominant role. The risk of unserious actors and profit-seeking is increasing, just as in primary school and in upper secondary school. We will see an increasingly negative impact on the quality of the preschool's equality and the children's care. The marketization of the preschool, the school, and the upper secondary school has gone too far. We must put a stop to the profit-seeking now.
The Minister mentions that profit distribution should be stopped for new schools and for those that do not meet the requirements. At least the Liberals have seen and perhaps begun to understand that this has negative consequences. But what we want is to stop the profit-seeking on the total.
It is outrageous that money that we taxpayers have collectively decided should go to the care of children in preschools to give them a good preschool and good quality goes to profit. Parents should be able to go to work and feel secure that the preschool the children attend maintains a high quality and gives their children a good day.
Now it is happening at the expense of someone having to withdraw money to live a better life. It really stings in the eyes of me and so many others. We must put an end to the profit-seeking now. Therefore, I just wonder: What does the Minister think when one sees that this is occurring? Doesn't it feel painful in the heart even for the Minister?
Statsrådet Lotta Edholm (L)
Madam Speaker! The reason the investigation is now concluded is that the government recognizes the problems that exist. This concerns, for example, the possibilities of taking out profits and the fact that there is sometimes low quality in both preschools and schools.
We see major problems, not least in metropolitan areas, with extremism in some schools. The Swedish Schools Inspectorate has also revoked permits for a number of independent schools precisely for this reason. It is important that this continues.
The Government considers that further measures are needed to ensure that it is not primarily profit that is the driving force when starting a preschool or a school. It should be a concern for quality. It could be that one, for example, has a pedagogical idea of how the operation should be conducted.
That is why the investigation has now received additional directives that also concern preschool. This government sees that preschool must also be covered by the directives in order for us to be able to achieve a change. It is the children's right to a pedagogically good operation that is the main point and not the possibilities to take out a profit.
Since it is also important in the current situation that the municipalities take their responsibility when it comes to both permits and supervision. There, the legislation has already been tightened today, I would say.
Source: The Swedish Parliament. The speeches come from the open data of the Riksdag, translated into English by AI, which may contain errors.