Harper cancels child care agreements, NDP will offer child care bill.

Prime Minister Stephen Harper plans to proceed with his Choice in Child Care and is canceling the early learning and child care agreements between the federal government and the provincial and territorial governments. His plans will meet with a challenge from the New Democratic Party caucus.

NDP MP Olivia Chow announced that her party will introduce a National Child Care Act when parliament returns in April. The aim of this Act is to protect and build on programs now at risk, given the stated intent of the new Conservative government.

Harper announced plans to use funds that would have supported the previous government's child care program and will finance the Choice in Child Care Allowance the Conservatives promised in the recent election campaign.

The new allowance will provide $1,200 per year for each child under six, to be taxable in the hands of the spouse with the lower income.

The Prime Minister stated that his Government intends to go ahead as well with its promise to switch to tax incentives to assist employers and community organizations to create new child care spaces. The Allowance will be effective July 1, 2006, and "payments will flow as soon as possible after that date, pending passage of legislation in Parliament."

The five year early learning and child care agreements with the provincial and territorial governments, allows for their termination upon one year's notice from either party.

The Government of Canada will transfer funds for one year, 2006-07 at the level set out in Budget 2005 to all provincial and territorial governments to support their early learning and child care programs. The provinces of Quebec, Ontario and Manitoba all signed five-year deals with the Government of Canada last year. Saskatchewan intends to submit their plan soon in order to receive the promised funding.

Chow said that: "The NDP will put forward legislation based on the principles of quality, universality, accessibility, educational development and inclusiveness," In a CBC Radio inter view she indicated that her party was willing to support a family allowance as well as its own child care approach.

The Canadian Child Care Advocacy Association states that a similar proposal by the Harris government in Ontario did not work. "Pledging $250 million to create child care spaces through tax breaks to businesses; no business took up the offer and not one space was created. Tax incentives will not create a child care program."

Canada's population is younger than the populations of most G8 countries. However, it is expected to age more rapidly in the coming years as a direct result of the baby boom following the Second World War and the rapid decline in fertility that followed. www.statcan.ca