|  Creation of childcare spaces still obscureCariboo Press -- Business Examiner Okanagan
 25 Apr 2007
  We have a new budget and the childcare issue, according 
                    to the Federal government, has been taken care of. The government 
                    will set aside $250 million to create new childcare spaces, 
                    giving the appearance that Prime Minister Harper and his government 
                    have carried through with their promise to help the "working 
                    family" by creating childcare spaces.   So how does it work?   According to the Child Care Advocacy Association of Canada 
                    the $250 million annual budget replaces previously committed 
                    and dedicated Federal funds for childcare services of $1.2 
                    billion; resulting in a net loss of $950 million.   Details of how the money that is going into the plan was 
                    going to be used was held back, even from the industry groups 
                    that were supposed to be using the money.   This lead to harsh criticism. "The Stephen Harper government 
                    has shown a complete lack of commitment to universal child 
                    care with this budget," says BCGEU president George Heyman. 
                    Information on the new childcare spaces was released with 
                    the 2007 Federal budget, but it was sketchy. A search of the 
                    Universal Child Care Federal government website gives vague 
                    answers with few details on how small, medium and large businesses 
                    are to create these spaces.   Kim Chernenkoff, manager of Daycare Connection in Kelowna 
                    describes the Federal budget as being about as clear as mud 
                    on the issue. "I've search the Internet for information and 
                    it's just not there," says an exasperated Chernenkoff. "I 
                    heard that MP Ron Cannan was speaking in town and I went out 
                    to talk to him on March 31st about this matter. He really 
                    didn't have much information either. He told me that the $250 
                    million would be divided by province per capita and the provinces 
                    will then decide how to spend the money, either through childcare 
                    spaces or post secondary education. So now we find out the 
                    money isn't just for childcare spaces."   In a letter to The Business Examiner Cannan has revealed 
                    more details. The funding will be used to assist firms to 
                    set up day care spaces via tax credits for up to 25% of set 
                    up costs.   There are restrictions. The new spaces can not cost more 
                    than$10,000 each to set up and the business receiving the 
                    tax credit can not be in the business of providing day care 
                    for a profit.   This excludes existing daycares from expanding their operations 
                    or benefitting from the tax incentives.   The tax break can be used for depreciable equipment costs 
                    such as the building, furniture, computer or AV equipment 
                    and playgrounds, but not property or motor vehicles.   Nor can the money be used for salaries, supplies or other 
                    ongoing expenses. The tax benefits came into play as of March 
                    19 and is eligible for the 2007/ 2008 taxation year.   Cannan also notes another $1.3 billion will be provided 
                    for daycare and education, but since the money will flow into 
                    directly into the province's general revenue the Federal government 
                    will have no control over how it is actually used.   In mid-April the Childcare Action Team from Kelowna is headed 
                    down to Penticton to the Ramada Inn to meet with Linda Reid, 
                    Minister for Children and Family Development to find out how 
                    the province intends to use the money.  |