Government Increases Early Childhood Funding Subsidy

The Government will increase early childhood education subsidies for licensed and chartered services by five percent from 1 July 1997, Associate Education Minister Brian Donnelly and Education Minister Wyatt Creech announced today.

"Early childhood education services will receive an extra $37 million (GST excl.) in direct Government funding over the next three years," the Ministers said.

"This is significantly above the rate of headline inflation (currently 1.8%) and the $10 million promised in the Coalition Agreement."

"The funding increase demonstrates the Government's continued commitment to early childhood education, and reinforces its consistent approach to early childhood education."

The Ministers said that today's announcement gives the lie to claims that the Government is abandoning the early childhood sector.

"This boost in funding will help ensure that children have continued access to early childhood education, as well as making it affordable for their parents."

"Early childhood education services are free to use this extra funding in any way they think will best meet the needs of children."

The Ministers made this announcement before the Budget to honour a commitment made when the Government passed the State Sector Amendment Act in early May.

The five percent increase in funding subsidies is only one part of the Budget package for early childhood education. Further announcements will be made on Budget night.

ENDS