Government moves forward on child care choices for parents

Prime Minister Stephen Harper today announced that the Government intends to move quickly to deliver on its commitment to support child care choices for parents, effective July 1, 2006.

Under the new Choice in Child Care Allowance, all families will receive $1,200 per year for each child under six, to be taxable in the hands of the spouse with the lower income.

“This Allowance will let parents choose the child care option that best suits their family’s needs,” said the Prime Minister.  “Our aim is to ensure that Canadian families get the greatest possible benefit from this new Allowance.”

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 Prime Minister also reiterated that the Government of Canada is phasing out the early learning and child care agreements signed by the previous government with the provincial and territorial governments.  The agreements allow 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 investments in early learning and child care.

The Prime Minister noted that the Government remains committed to introducing new measures to assist employers and community organizations to create new child care spaces.

The Prime Minister said legislation will be introduced in Parliament at the earliest opportunity to implement these changes.

The net fiscal cost of these measures and details on the design of the Allowance will be provided in the Government’s first Budget.