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

29 January 2007

Minister seeks cover on '20 free' rates

Education Minister Steve Maharey knows he cannot deliver on his promise of '20 hours free' early childhood care and is now hinting at reviewing funding rates for the scheme, says National's Associate Education spokeswoman, Paula Bennett.

"From the start, we have known this scheme simply would not work.

"Now, after weeks of concern from service providers, the Minister tells us the rates he announced in December are not set in concrete and the Ministry of Education will further consult with the sector.

"Mr Maharey told the Sunday Star-Times that childcare centres need to talk to parents to work out whether the rates are high enough?

He said: 'They need to do their budgets, they need to talk to their parents and they need to attend the seminars. We'll come back then and talk about the rates.'

"This is in complete contrast to his announcement of the funding rates on December 21 last year, when his own press release said the subsidy had been 'set', and the rate recognised all of the costs involved in providing quality early childhood education," says Ms Bennett.

"The Minister said the rates were set but now tells us they are under review, and clearly there is a chance they may actually increase if he is placed under further pressure.

"Centres have been telling me for weeks that the Government's rate will not cover their costs.

"Now is not the time for those centres to give in, accept the low offer and cover the Government's shortfall.

"They must send a clear message to the Minister that the rate is not accepted and force him to place a decent offer on the table."

ENDS

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