(Excerpts from What We've Heard, HRSDC report on the Child Care Spaces Initiative)
Total Report available at http://www.hrsdc.gc.ca/en/public_consultations/child_care/report_summary.shtml#moving_forward
The federal government is committed to helping Canadian parents to better balance child care and work responsibilities. To support this commitment, Budget 2006 allocated $250 million per year, beginning in 2007, to facilitate the creation of new child care spaces that are responsive to the needs of families, regardless of where they live or their hours of work.
Throughout the summer and fall of 2006, Human Resources and Social Development Canada undertook consultations on the Child Care Spaces Initiative with employers, experts, community and non-profit organizations, provincial and territorial officials, and national organizations......
Participants clearly stated that there are a number of challenges both for creating and maintaining child care spaces. Although there were some regional variations in needs and challenges, participants representing diverse interests across the country reported the difficulties faced in recruiting and retaining child care staff; the need to support and sustain spaces; concerns about the effectiveness of tax credits or other financial supports for employers; and a preference to design the initiative at the community level.
Several key challenges were consistently identified across the country. Chief among them was the difficulties in recruiting and retaining child care workers. Other challenges included the difficulty of ensuring high quality for existing spaces and space shortages for infants and children with special needs, official language minority communities and Aboriginal children.
The child care sector in Canada is facing significant challenges in recruiting and retaining child care staff, primarily because of low wages. Participants identified staff recruitment and retention as the primary challenge facing the child care sector. There is a shortage of qualified early childhood educators across the country, in some cases, this means that spaces cannot be filled. There are concerns that the new spaces created through the Child Care Spaces Initiative will exacerbate this shortage and place greater pressure on an already strained sector.
The child care sector also faces significant challenges in ensuring the quality of existing spaces. Many participants indicated that existing spaces should be improved and stabilized before new spaces are created. In some jurisdictions, for example in Prince Edward Island, there is a surplus of existing spaces, but their quality needs to be improved. First Nations and Inuit participants expressed a need to renovate and invest in existing daycares that need repair to meet basic health and safety standards. Importantly, quality child care requires qualified childcare workers and, as noted above, there is a shortage of qualified early childhood educators across Canada. Participants emphasized that improving the quality of existing spaces and creating high-quality child care should be the central focus in the design of the Child Care Spaces Initiative.
Participants noted that different types of child care spaces have different requirements, making some spaces more costly to create and more difficult to access. Though there may be a surplus of toddler and pre-school spaces in some jurisdictions, in most cases there is a shortage of spaces for infants and children with special needs. Spaces for infants and special needs children represent a specific challenge in all jurisdictions because of their higher costs. The child/staff ratio for infants is lower than for other children and they require specialized equipment. Providing child care for special needs children often requires expensive equipment and retrofitting that can often present a barrier to providers.
In addition, many participants advised that the Child Care Spaces Initiative should include spaces for children between the ages of 6 and 12, as they are an often-overlooked age category requiring before- and after-school care. This poses a staffing challenge because a larger number of part-time staff is required before and after school hours, and during holidays and other periods of school closure.
Participants also noted specific challenges in providing child care services in rural and remote communities. Transportation figures prominently among these challenges, with parents facing difficulties in finding suitable transportation for their children. In addition, several participants noted that support for family home providers is needed as they play a key role in providing child care services in many non-urban parts of the country.
Representatives from official language minority and Aboriginal communities highlighted difficulties in finding affordable, high quality child care that offers services in the language of their choice and is culturally appropriate. These groups have suggested that special consideration be given to official languages minority communities, Aboriginal children and families, and other minority groups in implementing the Child Care Spaces Initiative.
Participants identified several approaches for successfully implementing the Child Care Spaces Initiative. These approaches include recognizing the need for sustainability, respecting and complementing individual provincial and territorial systems, building partnerships, and being accountable.
Participants expressed concern that although funding for start-up costs would help to create spaces, the initiative would ignore on-going expenses. Many participants emphasized that the high cost of operating a child care centre may prove to be a disincentive to employers contemplating supporting employee child care needs.
Provinces and territories highlighted the importance of working in close collaboration with the federal government to ensure that the Child Care Spaces Initiative complements their systems and plans. Generally, provincial and territorial investment in child care is increasing, but there is variation in the priorities and approaches based on the system in place and the unique pressures individual jurisdictions face. For example, the three territories and British Columbia are facing increased construction costs, and participants from Newfoundland and Labrador expressed concerns about seasonality of employment.
These concerns are shared by provincial and territorial officials as well as stakeholders and providers. Some child care providers and employers supported a direct transfer to provinces and territories to recognize child care delivery as an area of provincial/territorial jurisdiction, and to allow sufficient flexibility to complement existing systems and priorities.
There is much skepticism about the effectiveness of tax credits and other financial supports in providing an adequate incentive for employers to create child care spaces. This concern was raised by all stakeholders, including employers, child care providers as well as provinces that have attempted to encourage employer-sponsored child care with limited success.
There are also concerns that tax incentives favour large enterprises and would not work for non-profit organizations. In addition, participants pointed out that it would be problematic for families living in rural and remote areas, and for Aboriginal communities, where there are neither large employers nor the population to make a child care centre cost effective.
Most employers indicated they understand the role that child care can play in recruitment and retention for their businesses. They are also aware of the benefits of supporting work-life balance for their employees. Nevertheless, most businesses, small businesses in particular, do not envision themselves delivering child care. Most are interested in supporting their employees' ability to purchase child care in the community, but because it is treated as a taxable benefit they often choose not to provide this support. They also recognize value in partnerships with local child care providers, but not in setting up child care themselves and suggested that the incentive should be targeted toward the providers, not employers.
Moreover, equity concerns were raised about employer-sponsored child care. Participants feared that an initiative focused on employer-sponsored child care would exclude families living in rural areas or Aboriginal communities, parents who do not work or are self-employed, and those whose employer chooses not to support employee child care needs.
Many participants stressed the importance of a community-based approach to child care. Stakeholders feel strongly that communities are best placed to respond to families' needs, and working at the community level allows for a better allocation of resources. Community organizations are open to working with employers to ensure high-quality, accessible child care for all children, but raised concerns about their capacity to do this without consideration for on-going costs. There was consensus that the Child Care Spaces Initiative will achieve greater success if it fosters partnerships with community organizations and ensures a community-based approach to child care.
Participants also felt that it is crucial that the federal government ensure that any funds provided through the Child Care Spaces Initiative be devoted to child care. Many stakeholders were concerned that financial support to businesses would not translate into enhanced child care.
Participants shared innovative ideas on how to efficiently and effectively use federal funding to create child care spaces that meet the needs of Canadian families.
A recurring suggestion was a child care fund. Several stakeholders recommended variations on a capital fund that employers and governments could pay into, which could include matching funds from employers and the federal government. This option could be based on a community development fund model, and the design could allow for employers or providers to access the funds through grants or loans, which may or may not be forgivable. Funds could be used to create new spaces, retrofit or improve existing spaces, or be used for wage subsidies to attract and retain qualified staff. Tax incentives would encourage the private sector to contribute.
There were also suggestions that the fund be administered by a third party, by provinces and territories, or through the Business Development Bank of Canada.
In seeking a way to ensure the creation of quality, long-term spaces, many participants proposed the idea of forgivable loans for the construction of new child care spaces. Loans would be forgivable if certain quality standards are met, or if the child care space created remained for a certain period of time.
An integrated hub model was widely recognized among participants as a way to meet the needs of families, particularly those living in rural and remote communities. Several jurisdictions have developed integrated hub models that offer a multitude of family services in one centralized location.
Business associations or other professional organizations were identified as a possible avenue to develop co-operative child care for multiple businesses in a geographical location. This would be particularly beneficial for small and medium-size businesses unable to sustain individual on-site child care facilities.
Employers, as well as some child care experts, believe that an information program to educate employers about child care needs, child care options and the Child Care Spaces Initiative is essential. However, they also feel strongly that the $250 million per year allocated for creating spaces should not be the source of funding for such a campaign.
A mentoring program in which businesses that provide child care services to employees approach other businesses to encourage them to get involved in creating child care could be developed. This program could be offered as part of an employer information campaign.
During the course of the consultations, a Ministerial Advisory Committee was formed to provide objective and informed advice on the approach and mechanisms required to effectively design and implement the Child Care Spaces Initiative. The committee reviewed the results of the consultations and also reviewed written submissions from a variety of stakeholders. Report from the Ministerial Advisory Committee on the Government of Canada's Child Care Spaces Initiative.
Budget 2007 confirmed the Government of Canada's commitment to create child care spaces beginning in the 2007-2008 fiscal year. The federal government will transfer $250 million each year to provinces and territories for the creation of new child care spaces.
In addition, Budget 2007 announced that the government will provide a 25 per cent investment tax credit to businesses that create new child care spaces in the workplace, to a maximum of $10,000 per space created. This will allow employers to respond to their business needs and the needs of their employees.
We would like to thank everyone who contributed their time to the consultation process and shared their views, including those who sent correspondence to the Prime Minister, Minister, and other Members of Parliament.
Date Modified: 2007-05-17
Created by CCA Government Affairs July 20, 2007