$140m for ‘20 hours free’ policy has no checks

Paula Bennett MP
National Party Associate Education Spokeswoman (Early Childhood)

21 January 2007

$140m for ‘20 hours free’ policy has no checks

The Government must immediately review how it will monitor the $140 million pot of cash it has dedicated to ‘20 hours free’ early childhood education, says National’s Associate Education spokeswoman, Paula Bennett.

Papers released under the Official Information Act show the Ministry of Education has no process for monitoring the spending of money that the Labour-led Government is putting into ‘20 hours free’ from July 1.

“The Government is going to spend $140 million with no way of monitoring how or where this money is spent.

“Ministry officials raised the issue but still the problem has not been addressed, so Minister Steve Maharey is risking $140 million of taxpayer money on a scheme that has no monitors or measures, and leaves the system open to interpretation.

“The documents quote Ministry officials as saying: ‘We recognise that our inability to validate funding claims once Free ECE is implemented opens up increased risk of undetected errors and over-claiming’.

“And even if officials do detect fraudulent behaviour, documents show they have no way of sanctioning services without punishing parents.

"The rules around ‘20 free hours’ are messy and unclear.

“The Government is throwing money into the pot and crossing its fingers, hoping it will all work out.

“Services want clear guidelines and parents want to know that this Government will actually fulfil its election promise. Neither of these look likely.”

ENDS