Finley caught in child-care quagmire as new cheques printed for parents
Sue Bailey, Ottawa, Canadian Press
July 18, 2006

EXCERPT

Social Development Minister Diane Finley faced a pressing question Monday as the first federal cheques were printed for parents of kids under six.

She must now create 125,000 new child-care spaces using a tax incentive plan that has been widely dismissed as unworkable.

It's a thorny problem that has already been a source of stinging criticism for the Tories. Parents may appreciate the extra $1,200 a year (minus taxes) for each pre-school child, but many are still on waiting lists for care.

Finley is collecting input across Canada on how best to deliver on a key promise - adding spaces - without giving provinces billions of dollars pledged by the former Liberal government. She has already ruled out that kind of ongoing cash flow, she said in an interview.

"If we were to get into that, we would be treading on provincial toes. That's something that we've committed not to do."

Finley hopes to have recommendations for a space-creation plan by next fall.

Provinces are on their own as of next March 31 when the Conservatives cut off federal funds that were to reach $5 billion over five years.

Instead, the Tories are offering the family allowances plus $250 million a year in tax credits or other support to lure employers and non-profit groups to create 25,000 new spaces a year for five years.

Even critics of the Liberal plan say the Conservative approach is badly flawed...

As it is, the federal government seems to think that businesses will partner with non-profit groups to launch costly day-care ventures, Graham said.

"Mr. Harper, who do you think is going to take you up on that?

"Businesses don't necessarily want to enter into agreements with non-profit organizations. ..."

Monica Lysack, executive director of the Child Care Advocacy Association of Canada, says she has not yet been contacted by Finley's office.

"Who is she consulting with? We represent tens of thousands of citizens who are concerned about the development of child care."

Lysack has been vocally critical of Conservative tax-incentive plans. Child-care spaces often disappear when they're created with start-up funding but no ongoing support, she said Monday.