Harper flip-flop shows tax breaks can't create child care spaces

Tories now plan to give the provinces and territories $250 million with no strings attached

Ottawa (16 March 2007) - Stephen Harper’s flip flop on $250 million in business tax breaks for child care proves that the Conservative's child care policy is ill-conceived and cannot work, says Code Blue, a campaign dedicated to building a national child care system.

Code Blue says the idea that tax breaks will produce child care spaces has failed miserably in the past and the Conservative government should have known this from the beginning.

The Harper government is also well aware that a $1.2-billion cut in federal child care funding, scheduled to take effect April 1, will "spell disaster" for many families and should be called off, it argues.

The Code Blue campaign includes national, provincial and territorial child care organizations along with labour, women's and social justice groups as well as Canadians from all walks of life. The National Union of Public and General Employees (NUPGE) is one of the largest participating groups.

Widespread media reports this week say the $250 million budgeted by the Conservatives for corporate tax breaks to create child care spaces will now be transferred to the provinces and territories on a per capita basis with no strings attached.

The change of direction is expected to be announced in the new federal budget on Monday.

The money amounts to a drop in the bucket compared with a cross-Canada network of five-year child care agreements, worth $5 billion, that the former Martin Liberal government signed with the provinces and territories. The agreements were cancelled by Harper after he came to power last year.

Code Blue says transferring federal funds to the provinces makes sense because they are responsible for delivering child care programs.

"But the federal government must ensure these federal tax dollars are spent in a way that gives families access to quality, regulated care," argues campaign coordinator Morna Ballantyne. "We’ve seen transfers used for anything but child care in the past.”

Code Blue is planning a "cross-country child care tour" beginning in April. The initiative is timed to coincide with the expected run-up to a generally-expected federal election this spring. NUPGE

More information:
• NUPGE and Child Care
• Code Blue for Child Care