Deputy Prime Minister and Minister of Finance Chrystia Freeland listens to a question from a reporter on the phone during a news conference in Ottawa, Monday November 30, 2020. THE CANADIAN PRESS/Adrian Wyld

Deputy Prime Minister and Minister of Finance Chrystia Freeland listens to a question from a reporter on the phone during a news conference in Ottawa, Monday November 30, 2020. THE CANADIAN PRESS/Adrian Wyld

Liberals should drive daycare improvements, not redo system, report says

The report’s authors say the money should focus first on expanding the supply of licensed child-care spaces

A new report is urging the Trudeau Liberals to embrace “aggressive incrementalism” on their promised path toward a national child-care system, arguing the government should quickly build on what’s already there rather than push wholesale change.

The paper from the C.D. Howe Institute suggests that trying to revamp how child care is delivered in Canada by moving responsibility to Ottawa from the provinces appears unlikely to succeed.

Provinces aren’t likely to agree to national standards, the authors write, pointing to recent federal efforts on child care.

The think-tank’s report says the federal government should bundle funding for child care into an annual transfer payment similar to one it already provides to help provinces cover the cost of health care.

The report’s authors say the money should focus first on expanding the supply of licensed child-care spaces.

The authors add that any federal moves need to be aimed at quickly building up child-care services nationally because the status quo is not sustainable.

The report is the latest in a series of arguments being put before the Trudeau Liberals on the road to next month’s budget, in which child care is expected to feature prominently.

Finance Minister Chrystia Freeland has promised the budget will outline a plan for a national child-care system, modelled on the publicly funded program in Quebec.

Child care has been debated federally for decades, including the role Ottawa should play in an area of provincial jurisdiction.

Ken Boessenkool, one of the C.D. Howe report’s authors, said there is no need to shift jurisdictions, just have Ottawa help the country do more of what has worked and do it better.

“We’re saying we’re not on the wrong path, we just have to do more of what we’ve been doing and do it more quickly,” said Boessenkool, the J.W. McConnell Professor of Practice at the Max Bell School of Public Policy at McGill University.

“And we don’t need to blow the system up to fix it.”

He said the federal government should pick a lane on what it wants to do on child care to drive the agenda, specifically focusing on funding the expansion of spaces where they are needed most.

A report this month from Deloitte Canada estimated the government could spend between $7 billion and $8 billion on child care, which would return between $1.50 and $5.80 for every dollar spent through a combination of new revenues and reduced spending on social supports.

The two reports argue the federal government is better placed financially than provinces to boost spending on child care because federal fiscal room should loosen if and when emergency COVID-19 spending subsides.

To help with household finances, Boessenkool and co-author Jennifer Robson, an associate professor of political management at Carleton University, say the government should make the federal child-care tax deduction refundable, meaning that eligible parents could get more money back from the government. At the moment, it is deemed non-refundable, so it can only lower amounts owed, not boost a tax refund.

The authors contend the change in tax treatment would help low-income families qualify for the deduction, and help middle-income families more easily afford daycare.

Jordan Press, The Canadian Press

ChildcareLiberals

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

People are shown at a COVID-19 vaccination site in Montreal, Sunday, April 18, 2021, as the COVID-19 pandemic continues in Canada and around the world. THE CANADIAN PRESS/Graham Hughes
211 new COVID-19 cases in Interior Health over the weekend

Currently, there are 875 active cases of the virus in the region

Pharmacist Barbara Violo arranges all the empty vials of the Oxford-AstraZeneca COVID-19 vaccines that she has provided to customers at the Junction Chemist which is a independent pharmacy during the COVID-19 pandemic in Toronto, on Monday, April 19, 2021. THE CANADIAN PRESS/Nathan Denette
Increased COVID-19 activity brings vaccine clinic to Enderby

Registration opens Tuesday, April 20 for May clinic for anyone over the age of 18

A nurse prepares a dose of the COVID-19 vaccine in Kelowna on Tuesday, March 16. As of April 19, more than 230,000 doses have been administered across the Interior Health region. (Phil McLachlan/Black Press)
More than 230K doses of COVID-19 vaccine administered across Interior Health

A total of 220,216 first doses and 13,775 second doses have been given to residents across the B.C. Interior

Seth Blackburn is recovering in Royal Inland Hospital in Kamloops from a serious dirt bike accident on April 11, 2021 in which he was impaled by a small tree top. (Contributed)
Salmon Arm teen recovering from horrific dirt bike crash

A GoFundMe page has been set up to help family while one parent unable to work

In this image from NASA, NASA’s experimental Mars helicopter Ingenuity lands on the surface of Mars Monday, April 19, 2021. The little 4-pound helicopter rose from the dusty red surface into the thin Martian air Monday, achieving the first powered, controlled flight on another planet. (NASA via AP)
VIDEO: NASA’s Mars helicopter takes flight, 1st for another planet

The $85 million helicopter demo was considered high risk, yet high reward

A strange odour at a West Kelowna apartment building prompted the evacuation of 150 residents on Sunday morning, April 18. (Aaron Hemens - Capital News)
‘Do not occupy’ order lifted, residents of West Kelowna apartment allowed to return home

The building was evacuated early Sunday morning due to a strange smell

Families of two of three workers killed in a train derailment near Field, B.C., in 2019 have filed lawsuits accusing Canadian Pacific of gross negligence. The derailment sent 99 grain cars and two locomotives off the tracks. THE CANADIAN PRESS/Jeff McIntosh
Families of workers killed in Field train derailment allege negligence in lawsuit

Lawsuits allege the workers weren’t provided a safe work environment

Vernon Search and Rescue’s helicopter team was asked to be on standby to rescue a missing hiker in Naramata. (Air Rescue One/VSAR photo)
Lost hiker rescued in Okanagan Mountain Park

COSAR, PENSAR, and VSAR worked together to rescue a hiker in Okanagan Mountain Park

(New Westminster Police)
4 youth arrested after 30-person brawl in New Westminster leaves 1 seriously injured

Police are looking for witnesses who saw the incident take place

South Surrey’s Paul Cottrell, who works with the DFO, tows a grey whale out of Semiahmoo Bay Sunday. (Contributed photo)
Dead whale floating near White Rock towed to shore for necropsy

Animal has been dead since at least April 15

courts
Penticton man guilty of assaulting young boys

Bryan Lamb was found guilty of two counts of assault

Abandoned Rail Brewing Company, located at 1220 Davenport Ave. on the KVR trail, has applied to the City of Penticton for a manufacturing facility and lounge endorsement. The city will review the application in their April 20, 2021 council meeting. (City of Penticton photo)
A new brewery could be coming to the KVR trail in the South Okanagan

The patio would seat up to 113 just 10 feet from the trail

Sunday’s storm rocked one of the ferries crossing Kootenay Lake. Photo: Dirk Jonker
VIDEO: Storm makes for wild ferry ride across Kootenay Lake

The video was captured by ferry employee Dirk Jonker

Most Read