There are calls for ABC Learning to be taken over by local councils, as the nation's mayors converge on Canberra.

The Prime Minister is about to host the nation's first ever Council of Local Governments, but, he won't confirm reports of a $100 million investment in local projects.

“We’ll make a decision on what we announce when I get to the conference – and it may not be anything at all.” Mr Rudd said.

The Australian Services Union wants local governments to control the childcare centres, claiming they're more in touch with the community than big business.

National Secretary Paul Slape says they'll offer better childcare and more stability than big business. 
He says councils are already well placed to take on the centres.

“Local government is ideally placed to run childcare centres – they already do it in many areas, and they do it very successfully,” Mr Slape said.

“It would just provide a much more stable environment for childcare and security for the parents and for the kids who use the service.”

And to prevent a similar collapse, the Government wants greater powers for the consumer watchdog to stop creeping acquisitions.