Officials rejected early childhood funding plans

The government's own officials warned plans to offer free education to three- and four-year-olds at community-based centres had no clear educational rationale, didn't offer value for money and could threaten private centres.

Education Minister Trevor Mallard announced the 20-free-hours a week in the May Budget. The plan, to start in 2007, is only for non-profit, community-based centres, meaning 25,000 children at independent centres miss out.

At the time, Mr Mallard said the plan would "make quality early childhood education available to more New Zealand children, while at the same time keeping a lid on costs to parents".

But papers released under the Official Information Act to United Future reveal the minister snubbed advice from Treasury officials, the NZ Herald has reported.

"We do not recommend you pursue this option," officials said in a report last November.

Papers released to the Early Childhood Council show the Ministry of Social Development (MSD) also said it did not support the plans "because they would be likely to significantly distort early childhood education (ECE) participation and labour market participation patterns and could threaten the viability of some private ECE centres."

Education Forum member and Early Childhood Council chief executive Sue Thorne (pictured) said MSD's concerns were valid. "Clearly the announcement of free 20 hours has raised expectations that all children will be able to access this entitlement and it is causing government concern about providing enough places to meet that demand."

Last week, the Prime Minister last week announced another $8.8M to build community centres for another 290 child places.

"In the true tradition of government-funded projects these new places are more than three times the cost of a high-quality, privately-funded centre. That is money that could have been used to fund children's attendance at the centres of each family's choice," Mrs Thorne said

"We don't buy the government's argument that free ECE has been limited to community centres because of fiscal restraints. It is purely and simply another example of the government's anti-business, anti-private education ideology getting in the way of what is good for children.

"Ultimately parents and children will have their choices in ECE restricted because private operators will be weighing up the risks of investing time and money in a sector that the government clearly does not wish the private sector to be in."

A NZ Herald story.

A Subtext story on the original Budget announcement.

An Early Childhood Council resource of media stories about the budget announcement, and reaction to it.