Catering for 44 children aged 0-5, there are 10 places available at the centre for children under two.

Those 10 places have a waiting list of 50.

"The biggest barrier that we face for local families is the under two placement for small babies. Every centre tells me of waiting lists to get access to those places," the Member for Throsby said.

Visiting the Alunga centre yesterday, parliamentary secretary for early childhood education and child care, Maxine McKew, said with the Government rebate for fees lifted from 30 to 50 per cent, child care was now more affordable than it had ever been.

But when it came to a shortage of places, Ms McKew said supply and demand was variable.

"You'll find there is a long waiting list at a quality centre ... at other centres they'll have places begging," she said.

Ms McKew said the biggest issue facing child care in Australia was how to address the huge staff turnover at child-care centres.

The Government has waived TAFE fees for diplomas and will provide 1500 places at universities over the next three years for the early childhood degree.

"We are sending a signal there has never been a better time to train," Ms McKew said.

She said the handling of the ABC Learning Centres' collapse by Deputy Prime Minister Julia Gillard, the department and receivers was remarkable.

"We've now got certainty for 230 centres and minimum disruption for parents, carers and children."

Ms George said ABC centres at Corrimal and Shell Cove did look problematic at one stage, but "in both cases Mission Australia has come in as the new operator and ... the situation has been put to bed".

Not all community preschools in NSW qualify for rebates.

But Ms McKew said the Government was providing almost $1 billion for up to 15 hours of quality preschool for every Australian child.