Diolch yn fawr, Mabon, and, again, thank you for your support for the Bill. It is a joint ambition. It has been a joint ambition of both Welsh Labour and Plaid Cymru, and I'm very pleased that we've got to this point now and, as I say, I'm very grateful for the work that we have done with Plaid to bring us to this point. And I absolutely agree with all the points that you made around the for-profit provision and the work that's been done by the Competition and Markets Authority, the work that they identified, or how they identified, the research that they produced that identified that we're seeing these organisations producing profits in the region of 22, 23 per cent. There was an article that you may or may not have seen over the weekend in The Guardian—it was a George Monbiot article over the weekend—that was talking about this—. It was from an English perspective, but the issues are exactly the same, and this is being addressed in a very similar way now in England. I think they've recognised that they have to do something like this. The costs that were being associated with placing one child in a residential care setting for a large for-profit organisation were something in the region of £280,000 for one child—around about £5,000 to £6,000 a week. Now, if you put that in the context of how much it costs to send a child to Eton, which is £46,000 a year, we could send six kids to Eton instead of putting one child in a residential setting run by a private company.
So, we absolutely know the challenges that exist. But you make a very good point about local authorities and their resilience and their ability to be able to plug the gaps that may come from removing private providers from the market. What I would say is, in the work that we've been doing on the elimination programme, we have been factoring in different scenarios. So, we have to look at—. We could have scenario A, which could be that no private providers transfer into the not-for-profit sector, to the very other extreme, where 100 per cent do, or somewhere in between.
Now, we're having some very positive discussions with a number of these providers, who are indicating their willingness to talk to us about moving their model of operation to not-for-profit, but we do appreciate, of course, that there could be some gaps, with not all of these providers wishing to move into the not-for-profit market, and so, therefore, we have to work with local authorities in building that resilience into the system that will enable them to deliver a not-for-profit service, whether they deliver it themselves directly as a local authority, or through one of the models that I set out in my statement.
But what I think is important to set out very clearly here is that this piece of legislation is not to be seen as a piece of legislation that sits in isolation. We have a whole transformation of children's services programme in Wales, which is largely preventative, and which is largely about working with families to keep families together, so that we have less demand for residential children's services, because it's the demand that's pushing the profits up. If a private provider can come in and can see a market, they will fill that market. That's what the private sector does. So, we are working with local authorities to build that resilience in through the different processes, and we know that there will be a cost to that. What I can't tell you at this moment in time, because that modelling is still taking place, for all the reasons I've just set out, is exactly how much that is going to cost. But we have made a commitment to delivering this legislation, and we will work with local authorities to find a way in which we can ensure that the resources that are required to deliver this are made available. But, as I say, this is not something that I can set out exactly at this moment in time, but through the course of the progress of this Bill, we will get a better idea, because a lot of the providers want to see more detail before they commit one way or the other.