Tories to flip-flop on child care: Their $250 million
will go directly to provinces
The Province
March 15, 2007
By: Norma Greenaway
Dateline: OTTAWA
OTTAWA -- The Tories have abandoned their plan to rely mostly
on private enterprise to create 125,000 new child-care spaces
over five years. Instead, the government will channel directly
to provincial and territorial governments the $250 million
a year it had originally earmarked for tax incentives and
grants to businesses and other private organizations, CanWest
News Service has learned.
The government's change of course will be outlined Monday
in the federal budget.
The child-care money, which will be divvied up among the
provinces and territories on a per-capita formula, will start
flowing on April 1.
Prime Minister Stephen Harper announced on the day he was
sworn in as prime minister last year that he would not honour
the former Liberal government's child-care agreements with
the provinces and territories beyond March 31 of this year.
The move meant the five-year agreements signed with the Paul
Martin government, worth $5 billion, were cancelled after
just two years, leaving the provinces and territories with
$3.5 billion less than they had been banking on. The Conservatives
promised to provide tax credits of up to $10,000 to employers
or organizations for each child-care space created.
The bigger ticket for the Conservatives has been its universal
child-care credit, a taxable $100 a month for each child under
the age of six. It started going to parents last July.
Don Geisbrecht, president of the Canadian Child Care Federation,
said many parents, now in the midst of filing tax returns,
are belatedly realizing the $100 is a taxable benefit.
"To a lot of families this is coming as a shock," Geisbrecht
said. "They are also coming to another realization. They've
realized this [$100 a month] isn't choice in child care."
|