B.C. Finance Minister Carole James visits a Victoria daycare on the eve of her first budget, allocating $1 billion over three years to expand child care, Feb. 19, 2018. (Tom Fletcher/Black Press)

Quebec daycare subsidies offer warning for B.C., study says

Over-55 women more likely to join paid workforce than young mothers

B.C. is following in the footsteps of Quebec 20 years ago, rolling out a subsidized daycare program to help mothers get back into the paid workforce.

A new study by the Fraser Institute compares the Quebec experience to B.C., where the new NDP government has embarked on a 10-year plan to provide universal daycare. Using Statistics Canada and other data, it finds that the employment and other benefits of subsidizing child care may not be what the B.C. government expects.

Quebec established $5-a-day universal daycare in 1997, when the employment rate for mothers was just under 70 per cent. That has risen to 83.1 per cent by 2017. But B.C. is starting with a maternal employment rate of 78.8 per cent, so the room for employment growth is substantially less in B.C., the study concludes.

Increased workforce participation was the basis for the B.C. NDP’s promise in its 2017 election platform that heavily subsidized daycare would pay for itself over the long term, through greater income tax revenue to the province.

Statistics Canada data show that in the 20 years of the Quebec program, employment among women aged 55 and over rose almost twice as much as employment by women of child-rearing age, 25 to 44.

The study also found greater employment increase among women 25-44 in Atlantic Canada, which did not have a subsidized daycare program. That may have been due to the federal Conservative government’s tightening of Employment Insurance rules in the region, a policy reversed by the Justin Trudeau government.

Finance Minister Carole James announced in her February budget that B.C. is committing $1 billion over the next three years, to provide 22,000 new licensed daycare spaces and add more training spaces for early childhood educators.

RELATED: New spaces a step to universal child care

The bulk of the B.C. NDP commitment, $630 million, is to subsidize parents and licensed daycare providers. For parents, the per-child subsidy ranges from $330 to $1,250 per month, reducing as income rises and falling to zero for households with a gross income of $111,000 per year.

“Policymakers in B.C. should heed Quebec’s warning, and instead consider providing resources directly to families to help cover the costs of whatever individual approach to daycare works best for them,” said Vincent Geloso, a Fraser Institute researcher and author of the study, Subsidized daycare – What British Columbians can learn from Quebec’s 20-year experiment.

Just Posted

Jordyn Huitema and Canadian nationals second at 2018 CONCACAF Women’s Championship

The Chilliwack teenager was among the tournament’s scoring leaders with four goals.

Chilliwack vacant homeowners could be hit with speculation tax

Municipality included although Cultus Lake and Chilliwack River Valley excluded

Chilliwack soccer stars help Coastal FC win national title

The team beat Ontario’s Burlington Bayhawks in the U-17 Cup final.

Drugs and cash seized by Chilliwack RCMP

One man was arrested and drugs were seized in the early hours of Oct. 12, police said

Heavy turnout at advance poll in Chilliwack

Some voters waited as long as two hours

B.C. NDP retreats again on empty-home tax for urban areas

Rate reduced for all Canadians, dissident mayors to get annual meeting

B.C. teen gives away tickets to Ellen Degeneres show, plans O Canada welcome

The Grade 9 student wanted to give away tickets in the spirit of inclusivity

Canada’s top general takes aim at new reports of military sexual assault

Gen. Jonathan Vance is unhappy some troops continue to ignore his order to cease all sexual misconduct

Online fundraiser to cover funeral costs of motorcyclist killed in collision

Larry Nizio, 37, died after crash with pickup truck Oct. 12 in Abbotsford

Ignoring climate change poses potential catastrophe for B.C.

Fisheries scientist says ‘extraordinary challenges’ in water management lie ahead

Grow ops left in legal weeds

“I think people are going to get a big surprise that it’s not going to change things much.”

Driving with dope: Police talk rules on cannabis in the car

Even though pot is legal, you can’t smoke in the car

Most Read