Ottawa lets N.B. subsidize more for-profit child-care spaces

The Higgs government has won a major concession from Ottawa that is allowing it to subsidize more child-care spaces in for-profit centres around the province.

The province asked the federal government last year to give it more flexibility under the five-year, $544-million agreement, but was turned down at the time.

Now, on the eve of a provincial election, federal Families, Children and Social Development Minister Jenna Sudds has given the New Brunswick government more leeway to fund hundreds of additional spaces in for-profit child-care centres.

"We certainly recognize that there are many for-profit operators across this country who are providing high-quality, much-needed service, including here in New Brunswick," Sudds said at a news conference at Centre ducatif des trois chnes, a child-care centre in Moncton.

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The spaces designated under the program are eligible for federal-provincial funding that will lower the cost to families to an average of $10 per child per day by 2026.

Sudds said the new action plan that runs to 2026 will "allow a distinction and a ratio that works here in New Brunswick."

It permits funding for up to 665 additional spaces in the for-profit sector, including a minimum of 315 francophone centres and an almost equal number in rural areas.

Under the revised numbers, only 1,735 spaces will have to be in not-for-profit centres, down from the original 2,400.

Education Minister Bill Hogan joined Sudds for the announcement and said he was happy Ottawa was being flexible, given the only daycares in many small communities are for-profit businesses.

"We're pleased with that, because that provides the opportunity for more children to have a space that's designated, and for more parents to return to the workforce, which is what we want."

The April 2022 agreement committed the province to create 3,400 child-care spaces by 2026 2,400 in non-for-profit centres and 1,000 in private, for-profit centres with early learning designation from the province.

More than two-thirds of spaces in the province were in for-profit centres at the time the deal was signed.

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The federal government will let New Brunswick subsidize hundreds more spaces in for-profit child-care centres.

Last year, Hogan said that almost all of the funding for the 1,000 for-profit spaces was already allocated, and the province wanted the flexibility to use the federal money to fund more such spaces.

Sudds said at the time that she would "hold the province" to the original requirement.

The 2022 deal said New Brunswick would prioritize not-for-profit spaces but more for-profit spaces would be allowed "should there be a demonstrated need."

Sudds said Wednesday the province had demonstrated the need, adding the province's designation system for early learning centres includes quality and cost controls.

"Child care is unique in different parts of this country," she said. "The needs of families are diverse and our regions are diverse."

Parents aren't concerned whether a child-care centre is for-profit or not-for-profit as long as it's affordable and convenient and they feel comfortable leaving their children there, Sudds said.

Hogan said funding has been allocated for all 3,400 spots under the agreement, though not all of them have been created.

Those new allocations include the larger share of for-profit spaces Ottawa is now allowing.

Hogan said the province was funding an additional 200 for-profit spaces.

Of the $544 million in the agreement, Ottawa is paying more than $492 million and New Brunswick is supplying $53 million.

As part of the new phase of the agreement, the province has promised to use Regional Development Corporation funding to support the creation of new not-for-profit centres.

The new phase commits the province to a set number of spaces in rural and francophone areas and for newcomers and families who need child care with extended hours.

Indigenous early learning centres will also be eligible for designation and funding under various programs, the action plan says.

Hogan said there are still 4,000 children on the waitlist for child-care spaces in New Brunswick, and if other provinces aren't using all of the federal program funding available to them, he'd be happy to take it to create more spots here.