ECE Sector Reforms Underway

  • Hon David Seymour

Regulation Minister David Seymour has today provided an update on the implementation of the Early Childhood Education (ECE) regulatory review.

"This review and the changes announced today show the power of a sector review. The Ministry for Regulation went in and listened to the people who actually run, work at, and use early childhood regulation. They found people encircled by multiple regulators enforcing out of date rules, and proposed solutions now being put into action," Mr Seymour says.

"By the end of next year ECE providers will be governed by a regulatory system which ensures regulations are focused on what matters, child safety.

Cabinet has agreed to 15 changes which modernise and simplify regulations across ECE. Services will be able to get on with what they do best - providing safe, high-quality care and education as the changes are rolled out over the coming year.

"Part of the change will involve amending laws in Parliament. The Education and Training (Early Childhood Education Reform) Amendment Bill will action many of these changes. The bill will be introduced in July, and I expect it to be passed by the end of the year," Mr Seymour says.

"The biggest complaint arises from the calcified, high stakes licencing criteria - 98 of them - that can each have a centre shut down with little to no notice. New licensing criteria will be gazetted by the end of September, following the recommendation to change or merge approximately three-quarters of the licensing criteria. Consultation will begin shortly to test the precise changes.

"By mid next year, graduated enforcement tools will be used to respond to breaches of the remaining licensing criteria. The only enforcement tools previously available were the granting or removal of ECE licenses, which is too blunt a tool for managing minor breaches and enabling early intervention. There will no longer be high-stakes open-or-shut rules that create anxiety and strained relationships for regulators and centre operators alike."

Graduated enforcement will give the regulator a range of enforcement measures. They will be able to respond proportionately to breaches, changing the sector's culture from a punitive approach to promoting quality.

"The implementation of the recommendations represents a major shakeup of the sector's outdated system. It is a great result for children, parents and ECE service providers," Mr Seymour says.

"The changes will reduce unnecessary compliance costs, remove duplication, and streamline operational requirements. ECE providers will no longer be burdened with 98 separate licensing criteria, many of which were arbitrary or outdated, such as requirements to:

  • ⁠maintain a constant indoor temperature of 18 degrees, when common sense says a minor deviation from 18 degrees won't hurt anyone, and
  • ⁠hold immunisation records for every child over 15 months, which the Ministry of Health already does.

"This will encourage more providers into a thriving market with reduced operation costs and compliance headaches. For parents this will mean more safe and affordable ECE options for their children.

"As part of its comprehensive review, the Ministry for Regulation analysed over 2,300 submissions and written feedback, met with parents and caregivers, providers and workers, visited 16 ECE services, and conducted a series of structured interviews and workshops with other agencies that engage with or regulate the sector. Thank you to the thousands of people who contributed their views.

"This is just the beginning. The Ministry is now helping the agriculture and horticulture sector implement sector review findings, and progressing sector reviews into the hairdressing and barbering, and the telecommunications sector. They're also working closely with the industrial hemp industry and others who've come forward through our red tape tipline.

"In a high-cost economy, regulation isn't neutral. It's a tax on growth. Every completed review makes it easier to do business, access services, and innovate in New Zealand. The ECE review is the first of many examples of what smarter regulation looks like in action."

Link to report: https://www.regulation.govt.nz/about-us/our-publications/regulatory-review-of-early-childhood-education-full-report/

Link to report summary: https://www.regulation.govt.nz/about-us/our-publications/regulatory-review-of-early-childhood-education-summary/

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