Early Childhood Education Funding Sensible, Affordable.

This financial year, the Government will invest $1.4 billion in Early Childhood Education (ECE). That’s an increase of $200 million over the previous financial year. So it is simply not true to say that funding for ECE has been reduced. The per-child funding of ECE is now $7600 per child per year. This compares to an average of $5528 for a primary school student and $6733 for a student at secondary school. Despite Dr Clark’s scaremongering, 20 hours free ECE is still in place.

However, while the goal of the previous Government was to increase participation in ECE, the massive increase in government funding has resulted in just a 1% increase in participation and in some parts of the country up to 40% of pre-school children are missing out on ECE. So we are making sure that funding reaches those children who need it the most. We are investing $91.8 million over the next four years in five intensive community-led participation projects in high priority areas. This will lead to an additional 3,500 places in ECE, targeted at Maori, Pasifika, and children from lower socio-economic areas.

So why all the fuss about ECE? Put simply, this is about the qualifications of the staff into whose care we entrust our children. The previous Labour Government committed to a goal of 80 % qualified ECE teachers by 2010 and 100% by 2012. This unrealistic target would have led to up to a thousand ECE centres having to close. At the moment only 67 % of teachers in the sector are registered. We amended the target to 80% by 2012.

In Budget 2010 we also announced that we would align funding to the 80% goal. Thus, prior to 1 February 2011, in a facility where the mix and age of children required say 5 staff, the Government would fund all five if they were registered teachers. After 1 February funding will be for up to four registered teachers and one unregistered staff member. The unregistered staff member could be an experienced teacher aide or parent of grown children returning to the workforce but without formal qualifications.

The staffing adjustment could be achieved by attrition. ECE centres have had eight months’ notice of this change and with the turnover in the sector of around 20%, there was plenty of opportunity to do so. Furthermore, given the demand for registered teachers, no registered teacher would be out of a job. The likely impact would be an increase in the proportion of registered teachers in those ECE centres that presently have numbers below 80%.

The union that represents ECE teachers, NZEI, cites research that qualified teachers are a key factor in the provision of quality early childhood education that provides the most benefit for children. I agree with this. However, given the care and safety aspects of ECE I have no doubt that an experienced parent or caregiver can make a meaningful contribution to an ECE facility as part of a team led by registered teachers without compromising educational outcomes.

Dunedin’s ECE facilities were faced with choices in response to the Government’s funding change. Disappointingly, some ECE centres have chosen to burden already financially constrained parents with a fee increase based on the ideological belief that the 80% model would materially compromise the quality of ECE. As the parent of a preschool child, I strongly disagree with this view. What is also disappointing is that some ECE centres unilaterally increased fees without asking parents if they would be happy with the staffing model the Government is funding. My child’s ECE facility wrote to parents outlining the four options the centre was considering. The options did not include the 80% model which avoids the need for fee increases. It did not ask parents whether they would be satisfied with a staffing complement that would avoid the need to increase fees.

In affirming Labour’s commitment to restoring the goal of funding 100% registered teachers, Dr Clark makes no attempt to explain how this (and many other hollow Labour promises) will be funded or how much debt a Labour Government would be prepared to burden those same children with repaying in the future.

My Government’s response is sensible in the constrained economic circumstances without compromising the quality of ECE in New Zealand. I believe this as much as a parent as I do as a politician.

More money for primary sector innovation

The National-led Government has announced a further $107 million of funding from the Primary Growth Partnership (PGP) for primary sector innovation.

This money will support innovation in the aquaculture, wildfish harvesting, and timber industries. The investment takes the Primary Growth Partnership's spending in our world-leading primary sectors to more than $475 million.

The Ministry of Science and Innovation was launched this week. It will lead our drive to harness scientific and innovative capability across the business, science, and government sectors.

Last month, the Government announced public and private investment of $17.25 million over five years in a wool research consortium, tasked with lifting the economic return of the wool industry. The Ministry of Science and Innovation is contributing $8.6 million.

National is committed to lifting economic growth through primary sector innovation.

http://www.beehive.govt.nz/release/primary-sector-innovation-fund-tops-475-million
http://www.beehive.govt.nz/speech/launch-ministry-science-and-innovation
http://www.beehive.govt.nz/release/1725m-wool-research-consortium-set

New initiatives for biodiversity and green growth

Three huge marine reserves, totalling 435,000 hectares will be established around New Zealand’s Subantarctic Islands. The areas are recognised globally for the diversity of their marine life. Protecting the surrounding waters will add to the prestige of this area and its attraction as an eco-tourism destination.

http://beehive.govt.nz/release/subantarctic-islands-become-marine-reserves

The Government is proposing a National Policy Statement to protect indigenous biodiversity. The policy sets out our expectations on how local councils will protect rare and endangered species on private land. This delivers on National’s 2008 election promise, and our commitment to the Māori Party.

http://beehive.govt.nz/release/new-policy-proposed-protect-biodiversity

We have also established an Advisory Group on Green Growth. The group will look at how we can add value to our export industry, ensure smarter uses of technology and innovation, and assist small and medium-sized businesses to become more energy efficient.

http://beehive.govt.nz/release/green-growth-initiative-announced

A bad year for P dealers

2010 was a year P dealers would rather forget. A record 30.4 kilograms of P, worth an estimated $30 million, were seized by Police and Customs. This is up 46 per cent on 2009.

National has made tackling P a priority. Our multi-pronged Methamphetamine Action Plan is paying off by greatly strengthening the police’s arsenal in the fight against P.

These seizures are testament to the vigilance, expertise, and experience of our frontline police and customs officers. Their hard work in reducing the amount of P available weakens the criminal gangs that sell the drug. It reduces crime in our communities, making our neighbourhoods safer for hard-working Kiwi families.

More information: http://www.beehive.govt.nz/release/police-and-customs-make-2010-bad-year-meth-dealers

90-day trial periods a success

Research shows 13,000 New Zealanders got jobs they otherwise wouldn’t have through 90-day trial periods. The trials had a positive impact on jobs for small employers during rising unemployment.

Analysis by New Zealand Institute of Economic Research looked at the impact of trial periods following its introduction in March 2009.

Unemployment peaked at 7.1 per cent that year. Small businesses faced tough economic times, so it was encouraging to see hiring was almost six percentage points higher than expected.

National is committed to lifting the long-term performance of the economy and creating more jobs. Trial periods bring opportunity for all New Zealanders.

With the extension of trial periods on April 1, we expect to see increased hiring through larger employers providing further benefits for hard-working Kiwis.

More information: http://www.beehive.govt.nz/release/minister-welcomes-analysis-trial-periods

Boosting savings and investment

New Zealand needs to save more, spend less, and reduce our reliance on foreign debt. That's the only way we can deliver the jobs, higher incomes, and better living standards that Kiwi families aspire to and deserve.

Improving savings and investment is central to National's economic programme, designed to tilt the economy towards savings, exports, and investment, and away from excessive borrowing and government spending.

The Prime Minister signalled last week the Government is prepared to lift its own savings. We’re working to reduce borrowing and get back to meaningful surplus by 2014/15 – a year earlier than forecast.

We are also considering the viability of a mixed-ownership model for four energy SOEs. This would reduce the amount we need to borrow to boost Government assets such as schools, faster broadband, and better transport infrastructure.

These are just some of the steps the Government is considering to boost New Zealand’s national savings. The Savings Working Group, which delivered its final report this week, has provided a wide range of other practical options worth considering.

The report will help the Government consider its next steps in building a stronger economy. It will also encourage an informed and open public debate on the national savings challenge facing New Zealand.

Any immediate policy decisions are likely to be included in the Budget.

More information: http://national.org.nz/onepager/Boosting_Savings_and_Investment.pdf

General election on 26 November

New Zealand will go to the polls on 26 November, five weeks after the Rugby World Cup final.

Prime Minister John Key announced the general election date this week to create certainty around the tournament, which begins in September.

National will be campaigning on our record as responsible managers of the economy. We are taking clear steps to get the country’s debt under control and to put the right incentives into the economy to drive faster real growth.

The election will also be about building greater value for money in public services, and who has the better plan to build a safer New Zealand.

Over the coming months we will keep developing and implementing our programme to build the brighter future New Zealanders and their families deserve.

More information: http://www.beehive.govt.nz/release/general-election-be-held-26-november