New Brunswick

Jody Carr calls daycare funding changes a cut aimed at women

The Progressive Conservative Opposition says daycare funding changes slated to take effect in June amount to a cut targeted at women.

Education Minister Serge Rousselle counters Liberals are focusing money on workers who need it most

The Progressive Conservatives says daycare funding changes slated to take effect in June amount to a cut aimed at women.

Progressive Conservative MLA Jody Carr says some daycares will have to cut jobs or increase fees to deal cut funding changes by the provincial government. (CBC)
Tory MLA Jody Carr led the attack on the change in the legislature on Tuesday, with about 25 daycare owners watching from the public gallery.

"Private daycare operators as small businesses do not make money," said Carr.

"But they do create jobs."

Changes stemming from the recent provincial budget mean some daycare owners will be receiving less of a subsidy from the provincial government while employees will be receiving more money.

Carr said reducing the subsidy to the owners of for-profit daycares will force them to close or increase fees.

Carr said access to daycares will be reduced in either case, even though Brian Gallant's Liberals promised to increase access to daycare.

Education Minister Serge Rousselle says funding changes will see daycare workers receive additional money instead of it going to the owners of for-profit daycares. (CBC)
Education Minister Serge Rousselle said the provincial government is not cutting, but moving $2.4 million from owners to employees and adding another $400,000.

"We are looking, right now, generally at women, who work in an industry that usually would pay minimum wage," he said.

"So we made the choice to give a top-up, so those women have the benefit of getting $5 more if they have the training, and [$3.07] if not."

Rousselle said workers need the financial help, not owners.

"If we're talking about for profit, we can guess that they're there because they are making a profit," said Rousselle.

However, Fredericton daycare owner Sarah Thornton said with her razor-thin profit margin, the loss of the subsidy could force her to close.

"I'm a new business so I'm in my third year, but we sustained a loss last year," she said.