Rolling up for Budget Day

One of the cutbacks suggested by the 2025 Taskforce involves subsidies for preschool education and childcare; a cutback engulfed by discussions on increasing GST and tax income reductions, states the National Council of Women of New Zealand (NCWNZ).

The 2025 Taskforce report released in November last year, titled “Answering the $64,000 Question closing the income gap with Australia,” will in part be used by the Government for the Budget. The question is what parts?

“Cuts to preschool education and childcare will negatively affect working women and their families,” says Elizabeth Bang, NCWNZ National President. “With pay scales still not equal to men’s work, many women can only afford to take paying jobs if they can access reasonably priced childcare. The Taskforce seemed to think that middle class women don’t really need the subsidy (referred to as a ‘churn’), and those on lower incomes are not mentioned.”

The 20 free preschool hours were never meant to be a babysitting service, and many older NCW members know the benefits to children of fulltime parenting. Unfortunately modern economic pressure has forced many families to have both parents in paid employment. In addition to childcare, the costs of travel and clothing further erode any income earned. One young woman reported that without the 20 free hours she would be ‘working to pay tax.’

“In the report, the Taskforce questioned the value added by requiring preschool teachers to be qualified,” says Elizabeth Bang. “If the requirement were lifted, along with other regulations and restrictions, the overall service would be cheaper. Rational parents would seek out a provider that had qualified teachers if they really added value, claims the report.”

Factors which influence choices made by parents are varying, such as geographical locations, waiting lists, low incomes, unsecure jobs, transport issues, and cultural needs. All parents would enjoy basing their decisions on quality alone; however these other factors play their role in the decision-making process.

“The Government would be ill-advised to enact a recommendation for cuts on preschool education and childcare,” says Elizabeth Bang. “Particularly as these cuts are out-of-touch with the real world that most New Zealanders are living in.”

ENDS

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