Question Period Note: NOVA SCOTIA’S IMPLEMENTATION OF A CANADA-WIDE EARLY LEARNING AND CHILD CARE SYSTEM

Some for-profit Early Learning and Child Care (ELCC) providers have reacted negatively in the media as the province moves towards implementation of its publically managed early learning and child care system under the Canada-Nova Scotia Canada-wide ELCC Agreement

• The Government of Canada is committed to working with provinces and territories to build a Canada-wide early learning and child care system that ensures that all families have access to high quality, affordable, flexible and inclusive early learning and child care, no matter where they live.
• Our agreement with Nova Scotia recognizes the importance of retaining existing licensed providers, including for-profit providers, as we work with provinces and territories to build this new system.
• That is why every type of existing licensed provider who joins Nova Scotia’s new publicly managed system can continue to receive operating funding.
If pressed
• Under the new system fees will be lowered and new spaces will be created. The ECE workforce, which is at the heart of the system, will be highly qualified and enhanced wage supports will be provided.
• In fact Nova Scotia is already taking early steps to reduce parent fees. On January 14, 2022, Nova Scotia and Canada announced a fee reduction of 25%, on average, retroactive to January 1, 2022.

On July 13, 2021, the governments of Canada and Nova Scotia announced the 2021-2022 to 2025-2026 Canada-Alberta Canada-Wide Early Learning and Child Care Agreement. To support the goal of ensuring access to high-quality, affordable, flexible, and inclusive early learning and child care, the Government of Canada will contribute close to $605 million for child care in Nova Scotia over five years.

Under this agreement Nova Scotia is moving towards a fully not-for-profit model. The new system will be governed and administered through a central provincial organization that will support all regulated child care centres and licensed family home child care agencies that fall under its mandate. When the organization is created, all regulated child care centres who opt in will transition to the new governance and infrastructure and all not-for-profit centres will fall under the management and mandate of the organization immediately.

Currently, regulated child care is administered through the Department of Education and Early Childhood Development (EECD) with individual contracts / relationships with licensed child care centres. EECD is responsible for the Early Learning and Child Care Act and the regulations, policies, standards, licensing, and funding agreements that support the Act. To receive provincial funding, providers must receive an acceptable rating under a provincially funded evidence-based quality assessment initiative (Quality Matters).

When it is created, the new organization will oversee contracts for or manage the overall delivery of provincial child care including managing child care spaces and needs in communities (community and demographic needs assessments, wait lists); overseeing daily parent fees and centre finances; and, managing ECE recruitment, retention, compensation and wages/benefits (labour relations). In addition, the organization will become the first point of contact for families on registering their child for care anywhere in the province so families have all they information they need in making decisions. All centres will be required to participate in the Quality Matters program to ensure high-quality care across the province. Nova Scotia is currently in the process of developing the new funding model.

Nova Scotia has a large for-profit child care sector. There are currently 166 for-profit licensees managing approximately 200 centres, and 159 family home daycares managed by 14 agencies. The move towards a provincially-managed not-for-profit system represents a significant transformation of the child care landscape in the province.

To support the transition, in summer 2021, a financial services firm was hired to define a path from for-profit to not-for-profit, including articulating options for operators to understand the steps involved in shifting their business process.

In October 2021, Nova Scotia began an expression of interest process inviting providers/ operators to indicate their interest in joining the Canada-wide system and to share any concerns about the process. All for-profit or commercial child-care programs that were licensed and provincially funded as of July 13, 2021, are able to take part in the new Canada-wide system, and receive funding to support items such as lower parent fees, as long as they follow the terms and conditions of the agreement. 165 out of a total 166 licensees applied to express interest and provided feedback and comments on the process.

In November 2021, the province developed three options available to providers using the feedback received through its Expression of Interest process. Initial information on these options was shared in December 2021 and the options were announced in mid-January 2022. Two options allow providers to move under the Canada-Nova Scotia Child Care Agreement and fall under the mandate of the provincial organization. A third option allows providers to continue to operate without government assistance.

$10M of funding has been earmarked in the Canada-wide agreement to support providers in their transition. In December 2021, for-profit providers were given the opportunity to apply for a $15,000 grant to help cover legal or accounting fees that may be incurred while options are assessed. As of January 14, 2022, the province had received 85 requests for those grants, covering 122 centres. The process closed on January 19, 2022. For-profit providers will also receive funding based on the option they choose as part of the transition to the Canada-wide ELCC system.
Nova Scotia’s Department of Education and Early Childhood Development is in the process of implementing a communication strategy to ensure that families, providers and stakeholders are accurately informed. This strategy includes multiple information sessions with providers and stakeholders, active presence in the media, and monitoring social media reactions and responding to clarify facts when needed. Information will also be made available on the provincial website in the coming days.

On January 14, 2022, Nova Scotia announced a 25%, on average, child care fee reduction. Fees will be reduced by 25 per cent retroactive to January 1, 2022 and families will see this adjustment beginning April 1 for all regulated centres that are part of the Canada-Wide and Early Learning Childcare System in Nova Scotia.

On January 14, 2022 the Province also announced that it approved a minimum of 1,500 new not-for-profit child-care spaces beginning this fall, part of the plan for 9,500 new early learning and child-care spaces by March 31, 2026. The new spaces will be made available in more places across Nova Scotia, with the goal of equitable access to affordable, accessible child care everywhere in the province. Communities with limited care options will soon have access to licensed child care for infants and toddlers, along with before and after school programs.

None