Language selection

Government of Canada / Gouvernement du Canada

Search

Canada – Newfoundland and Labrador Early Learning and Child Care Agreement – 2020-2021

On this page

Between:

Referred to collectively as the "Parties".

Preamble

Whereas, Canada and Newfoundland and Labrador agreed to a Multilateral Early Learning and Child Care Framework on June 12, 2017, which articulated their shared vision for early learning and child care and describes their approach to achieve this vision.

Whereas, the Department of Employment and Social Development Act authorizes the federal Minister to enter into agreements with the provinces and territories, for the purpose of facilitating the formulation, coordination and implementation of any program or policy within the mandate of the federal Minister.

Whereas, the Executive Council Act and Intergovernmental Affairs Act authorizes the provincial Ministers to enter in agreements with the Government of Canada under which Canada undertakes to provide funding toward costs incurred by the Government of Newfoundland and Labrador for the provision of early learning and child care programs and services.

Whereas, Canada has, pursuant to its Policy on Transfer Payments, established a transfer payment program to provide funds to the provincial and territorial governments for the development and delivery of regulated early learning and child care programs and services for children under six years of age, with consideration for families more in need.

Whereas, Canada and the Assembly of First Nations, Inuit Tapiriit Kanatami, the Métis National Council jointly released the co-developed Indigenous Early Learning and Child Care Framework in September 2018. This Framework establishes overarching principles and sets a vision for happy and safe Indigenous children and families, strong cultural identity, and a comprehensive and coordinated system that is anchored in self-determination, centered on children and grounded in culture. The Indigenous Early Learning and Child Care Framework can be used as a guide for all actors involved in Indigenous Early Learning and Child Care.

Whereas, Newfoundland and Labrador invests in early learning and child care for Indigenous children.

Whereas, in accordance with section 3 of the Canada – Newfoundland and Labrador Early Learning and Child Care Agreement – 2017-2020, which came into effect on December 15, 2017 (the Agreement), Canada and Newfoundland and Labrador wish to renew the Agreement for a period of one year commencing April 1, 2020 and ending March 31, 2021, on the same terms and conditions as in the Agreement, save and except for amendments as provided herein.

Whereas, the Parties’ intentions to renew the Agreement were stated in writing and negotiations had commenced prior to March 31, 2020.

Whereas, Canada and Newfoundland and Labrador will continue to work together towards a renewed Canada-Newfoundland Early Learning and Child Care Agreement.

Whereas, Canada and Newfoundland and Labrador further agree to amend the Agreement.

Now therefore, Canada and Newfoundland and Labrador agree as follows.

1.0  Vision for Early Learning and Child Care

1.1  Canada and Newfoundland and Labrador agree that the long term vision, principles and objectives for early learning and child care, which are set out in the Multilateral Early Learning and Child Care Framework that is attached as an annex (Annex 1), will guide the investment of funds provided under this Agreement.

2.0  Early Learning and Child Care objectives and areas of investment

2.1  Objectives

2.1.1  Canada and Newfoundland and Labrador agree that over the period of this Agreement, with financial support from Canada, Newfoundland and Labrador will further build its early learning and child care system by addressing local, regional and system priorities that have an impact on families more in need by increasing the quality, accessibility, affordability, flexibility and inclusivity in early learning and child care, towards achieving the objective of expanding existing services and programs and introducing new initiatives to enhance the quality, sufficiency, affordability and inclusivity of early learning and child care. Newfoundland and Labrador’s policy towards Early Learning and Child Care and approach to achieving these objectives is set out in their Action Plan attached as Annex 2.

2.2  Eligible areas of investment

2.2.1  Newfoundland and Labrador agrees to prioritize funds provided by Canada under this Agreement in regulated early learning and child care programs and services, as per the Newfoundland and Labrador Child Care Act, for children under the age of six where:

  1. regulated programs and services are defined as those that meet standards that are established and/or monitored by provincial/territorial governments
  2. early learning and child care programs and services are defined as those supporting direct care and early learning for children in settings including, but not limited to, regulated child care centres, regulated family child care homes, early learning centres, preschools and nursery schools

2.2.2  In developing and delivering its early learning and child care programs and services, Newfoundland and Labrador agrees to take into account the needs of the official language minority community in Newfoundland and Labrador.

2.2.3  Types of investments include but are not limited to: capital and operating funding for regulated early learning and child care, fee subsidies, training, professional development and support for the early childhood workforce, quality assurance, parents’ information and referral, and administration costs incurred by Newfoundland and Labrador in implementing and administering this Agreement.

2.2.4  Canada and Newfoundland and Labrador also agree to promote, define, and deliver identifiable innovative approaches to enhance the quality, accessibility, affordability, flexibility, and inclusivity of early learning and child care systems, with consideration for those more in need.

2.2.5  Canada and Newfoundland and Labrador agree that funding will be targeted toward programs and activities, as described above, with priority for children under the age of six, that will have an impact on families more in need such as lower-income families, Indigenous families, lone-parent families, families in underserved communities; those working non-standard hours; and/or families with children with varying abilities. Needs also include having limited or no access to early learning and child care programs and services in the children’s official language in official language minority communities.

2.2.6  In the fiscal year 2020-2021, under extraordinary circumstances, Newfoundland and Labrador may allocate funding under this Agreement to support short-term measures to minimize the impacts of the COVID-19 pandemic on Newfoundland and Labrador’s ELCC system. These measures must be aligned with the principles of the Multilateral ELCC Framework and be used to sustain ELCC programs and services.

3.0  Period of agreement

3.1  The Agreement came into effect on December 15, 2017 and was set to terminate on March 31, 2020, unless renewed by the Parties pursuant to Section 3, or terminated in writing by Canada or Newfoundland and Labrador in accordance with the terms hereof in Section 11. Funding provided under this Agreement, in accordance with Section 4, covered the period of April 1, 2017 to March 31, 2020. The current renewal of this Agreement shall be retroactive to April 1, 2020 and will remain in effect until March 31, 2021, unless renewed by the Parties pursuant to Section 3, or terminated in writing by Canada or Newfoundland and Labrador in accordance with the terms hereof in Section 11. Funding provided under this renewed Agreement in accordance with Section 4 will cover the period April 1, 2020 to March 31, 2021.

3.2  Renewal of bilateral agreements

3.2.1  Canada commits that the annual allocation for all provinces and territories for the period 2021-2022 to 2027-2028 will be no less than the annual allocation of this current Agreement. Funding for future years will be provided upon the renewal of bilateral agreements conditional on Canada’s acceptance of new action plans and informed by the assessment of the results achieved under the action plan set out in Annex 2.

3.2.2  The renewal will provide Newfoundland and Labrador and Canada the opportunity to review and, if required, realign new priorities in future bilateral agreements based on progress made to date.

4.0  Financial provisions

4.1  These contributions are in addition and not in lieu of those that Canada currently pays to Newfoundland and Labrador through the Canada Social Transfer in order to support early childhood development and early learning and child care within Newfoundland and Labrador.

4.2  Allocation to Newfoundland and Labrador

4.2.1  Canada has designated the following maximum amounts to be transferred in total to all provinces and territories under this initiative with a fixed base rate of $2 million per year for each province and territory and the balance of the funding on a per capita basis for the period starting on April 1, 2017 and ending on March 31, 2021.

  1. $399,669,692 for the Fiscal Year beginning on April 1, 2017
  2. $399,347,695 for the Fiscal Year beginning on April 1, 2018
  3. $399,347,695 for the Fiscal Year beginning on April 1, 2019
  4. $399,347,694 for the Fiscal Year beginning on April 1, 2020

4.2.2  Subject to annual adjustment based on the formula described in section 4.2.3, Newfoundland and Labrador’s estimated share of the amounts described in section 4.2.1 will be:

Fiscal Year Estimated amount to be paid to Newfoundland and Labradora
(subject to annual adjustment)
2017-2018 7,383,089
2018-2019 7,378,451
2019-2020 7,378,451
2020-2021 7,180,110

aAmount represents annual estimate based on Statistics Canada population estimates

Canada commits that the annual allocation for all provinces and territories for the period 2021-2022 to 2027-2028 will be no less than the annual allocation of this current Agreement under the conditions set in section 3.2.1.

4.2.3  For the per capita funding allocation set in section 4.2.1, the final yearly amount to be paid to Newfoundland and Labrador will be calculated using the following formula F × K/L, where:

  • F is the annual total funding amount transferred to provinces and territories minus the base funding
  • K is the total population of Newfoundland and Labrador, as determined using annual population estimates from Statistics Canada
  • L is the total population of Canada, as determined using annual population estimates from Statistics Canada

4.2.4  For the purposes of the formula in section 4.2.3, the population of Newfoundland and Labrador for each Fiscal Year and the total population of all provinces and territories for that fiscal year are the respective populations as determined on the basis of the quarterly preliminary estimates of the respective populations on July 1 of that fiscal year released in September of that fiscal year by Statistics Canada.

4.3  In this Agreement, “fiscal year” means the period commencing on April 1 of any calendar year and terminating on March 31 of the immediately following calendar year.

4.4  Payment

4.4.1  Canada’s contribution will be paid in approximately equal semiannual installments as follows:

The total payment for Fiscal Year 2017-2018 will be paid within 30 days after the signatures from both Parties are affixed to the Agreement.

In 2018-2019 and 2019-2020, the first installment will be paid on or about June 15 of each Fiscal Year. In 2020-2021, the first installment will be paid within 30 days after the signatures of the Parties are affixed to the Agreement. The second installment will be paid on or about November 15 of each Fiscal Year.

The amount of the first installment will be an amount equal to 50% of the notional amount of Canada’s maximum contribution to Newfoundland and Labrador for the fiscal year, which will be calculated in the manner described in sections 4.2.3 and 4.2.4.

The amount of the second installment will be an amount equal to the balance of Canada’s contribution to Newfoundland and Labrador for the fiscal year based on the actual amount of the contribution determined under sections 4.2.3 and 4.2.4 for the fiscal year.

Canada will notify Newfoundland and Labrador at the beginning of the Fiscal Year of their notional amount. The notional amount will be based on the Statistics Canada quarterly preliminary population estimates on July 1 of the preceding Fiscal Year. Canada will notify Newfoundland and Labrador of the actual amount of the second installment in each Fiscal Year as determined under the formula set out in section 4.2.3 as soon as possible following the release in September of each year of the Statistics Canada quarterly preliminary population estimates referred to in section 4.2.4.

Canada shall withhold payment of its second installment for the fiscal year if Newfoundland and Labrador has failed to provide its annual audited financial statement for the previous fiscal year in accordance with section 5.2.1 (d) until such time as the annual audited statement is provided.

Payment of Canada’s funding for each fiscal year of this Agreement is subject to an annual appropriation by the Parliament of Canada for this purpose.

4.5  Maximum annual contribution in respect of administration costs

4.5.1  Canada’s contribution in respect of Newfoundland and Labrador’s administration costs referred to in section 2.2.3 shall not exceed:

In Fiscal Years 2017-2018, 2018-2019, 2019-2020, and 2020-2021 an amount up to 10% of the maximum amount payable for those fiscal years.

4.6  Carry forward

4.6.1  At the request of Newfoundland and Labrador and subject to the approval of Canada’s Treasury Board, Newfoundland and Labrador may retain and carry forward to Fiscal Year 2018-2019, an amount of up to 50% of the contribution paid to Newfoundland and Labrador for 2017-2018 under section 4.2.3 that is in excess of the amount of eligible costs actually incurred by Newfoundland and Labrador in that fiscal year, and may only use the amount carried forward to 2018-2019 for expenditures on eligible areas of investment under section 2.2 incurred in that Fiscal Year.

4.6.2  For greater certainty, the amount carried forward to Fiscal Year 2018-2019 under this section is supplementary to the maximum amount payable to Newfoundland and Labrador under section 4.2.3 of this Agreement in 2018-2019.

4.6.3  The amount carried forward pursuant to section 4.6.1 must be spent by March 31, 2019. Newfoundland and Labrador is not entitled to retain any such carried forward amounts that remain unexpended after March 31, 2019, nor is it entitled to retain any balance of Canada’s contribution for fiscal year 2018-2019 paid pursuant to section 4.2.3 that remains unexpended at the end of that fiscal year. Such amounts are to be repaid to Canada in accordance with section 4.7.

4.6.4  At the request of Newfoundland and Labrador and subject to the approval of Canada’s Treasury Board, Newfoundland and Labrador may retain and carry forward to Fiscal Year 2019-2020, an amount of up to 10% of the contribution paid to Newfoundland and Labrador for 2018-2019 under section 4.2.3 that is in excess of the amount of eligible costs actually incurred by Newfoundland and Labrador in that fiscal year, and may only use the amount carried forward to 2019-2020 for expenditures on eligible areas of investment under section 2.2 incurred in that fiscal year.

4.6.5  At the request of Newfoundland and Labrador and subject to the approval of Canada’s Treasury Board, Newfoundland and Labrador may retain and carry forward to Fiscal Year 2020-2021, an amount of up to 30% of the contribution paid to Newfoundland and Labrador for 2019-2020 under section 4.2.3 that is in excess of the amount of eligible costs actually incurred by Newfoundland and Labrador in that fiscal year, and may only use the amount carried forward to 2020-2021 for expenditures on eligible areas of investment under section 2.2 incurred in that fiscal year.

4.6.6  For greater certainty, the amount carried forward to Fiscal Year 2019-2020 and 2020-2021 under this section is supplementary to the maximum amount payable to Newfoundland and Labrador under section 4.2.3 of this Agreement in 2019-2020.

4.6.7  The amount carried forward pursuant to sections 4.6.4 and 4.6.5 must be spent by March 31 of the subsequent fiscal year. Newfoundland and Labrador is not entitled to retain any such carried forward amounts that remain unexpended after March 31 of the subsequent fiscal year, nor is it entitled to retain any balance of Canada’s contribution for fiscal year 2020-2021 paid pursuant to section 4.2.3 that remains unexpended at the end of that fiscal year. Such amounts are to be repaid to Canada in accordance with section 4.7.

4.6.8  In the event that this renewal is approved after March 31, 2020, the Parties agree that it is an extension of the April 1, 2017 to March 31, 2020 Agreement from April 1, 2020 to March 31, 2021 and as such carry forward provisions set out in section 4.6.6 and 4.6.7 still apply.

4.7  Repayment of overpayment

4.7.1  In the event payments made to Newfoundland and Labrador exceed the amount to which Newfoundland and Labrador is entitled under the Agreement, the amount of the excess is a debt due to Canada and Newfoundland and Labrador shall repay the amount within 90 days of written notice from Canada.

4.8  Use of funds

4.8.1  Canada and Newfoundland and Labrador agree that funds provided under this Agreement will only be used by Newfoundland and Labrador in accordance with the areas for investment outlined in section 2.2 of this Agreement.

4.8.2  Canada and Newfoundland and Labrador agree that, within each fiscal year of the period of this Agreement, Newfoundland and Labrador may move funding between the individual programming categories outlined in its Action Plan in Annex 2 to ensure the maximum use of funding. Newfoundland and Labrador agrees to notify Canada in writing of any such change in funding allocation, including the rationale for the change.

5.0  Accountability

5.1  Action plan

5.1.1  Newfoundland and Labrador has completed and shared its Action Plan for the years 2017-2018 to 2019-2020 of federal funding with Canada, as set out in the Canada – Newfoundland and Labrador Early Learning and Child Care Agreement 2017-2020, Annex 2.Upon signature of this Agreement by both Parties, Newfoundland and Labrador will publicly release their Action Plan which:

  1. identifies specific priority areas for investment and objectives, within the Framework’s parameters, which build upon progress to date in the quality, accessibility, affordability, flexibility and/or inclusivity of their early learning and child care system, with consideration for those more in need
  2. describes how Newfoundland and Labrador plans to address the early learning and child care needs of its children/families more in need, including families that have limited access to programs and services in their official language in official language minority communities
  3. outlines their planned innovation spending
  4. demonstrates that federal investments will be incremental, and will not displace existing Newfoundland and Labrador early learning and child care spending, in particular spending dedicated to Indigenous populations
  5. outlines the indicators that will be reported on annually according to their planned investments
  6. identifies specific targets for each indicator that will be reported on annually for tracking progress in relation to the objectives of the Agreement
  7. identifies additional jurisdiction-specific indicators for tracking progress in relation to the objectives of the Agreement; and
  8. identifies consultation processes referred to in section 5.1.2, the type of groups consulted and annual priorities related to stakeholder feedback

5.1.2  Newfoundland and Labrador will complete targeted engagement with parents, child care providers, experts, Indigenous peoples, official language minority communities and other interested residents of Newfoundland and Labrador as an important step in developing and revising its Action Plan. The engagement will include, but is not limited to, face-to-face sessions; online sessions; written submissions, and; surveys. The goal of this engagement is to gather input on how to better address the early learning and child care needs of Newfoundland and Labrador communities.

5.1.3  Newfoundland and Labrador submitted an updated Action Plan to Canada for the fiscal year 2020-2021, as set out in the attached Annex 2 (2020-2021), which updated its areas of investments and targets, outlined in its Action Plan for Fiscal Years 2017-2018 to 2019-2020, where necessary. This updated Action Plan (2020-2021) may include some changes to programming and program delivery, provided that the more affordable child care spaces funded with federal support continue to be supported as much as possible, subject to extraordinary circumstances, such as the COVID-19 pandemic. Upon signature of this Agreement by the Parties, the updates to the Action Plan will be publicly released.

5.2  Reporting

5.2.1  In the first fiscal year, Newfoundland and Labrador agrees to provide available baseline data on indicators set out in their Action Plan as soon as possible after the Parties signing this Agreement and no later than December 31, 2017.

5.2.2  By no later than October 1 of each Fiscal Year for the Period of this Agreement, Newfoundland and Labrador agrees to:

  1. report to the people of Newfoundland and Labrador and to Canada on the results and expenditures of early learning and child care programs and services. The report shall include the number of children benefiting from subsidies, number of licensed early learning and child care spaces broken down by age of child and type of setting. The report shall show separately the results attributable to the funding provided by Canada under this Agreement
  2. continue to provide to Canada data required for the publication of the joint Federal-Provincial/Territorial report on Public Investments in Early Childhood Education and Care in Canada
  3. provide to Canada an Annual Report in the format and manner decided jointly by Canada and Newfoundland and Labrador. The report shall show separately the results attributable to the funding provided by Canada under this Agreement and shall include:
    1. a brief description of the activities, expenditures and results of the Canada-Newfoundland and Labrador Early Learning and Child Care Agreement as set out in Annex 2 (2020-2021)
    2. results achieved according to the indicators and targets referred to in Annex 2 (2020-2021)
    3. the impact on families more in need, including families that have limited access to programs and services in their official language referred to in Annex 2
    4. results achieved on innovation referred to in Annex 2
    5. a description of consultation processes consistent with section 5.1.2, the types of groups consulted and annual priorities related to stakeholder feedback; and
    6. any additional results of evaluation activities undertaken in the Fiscal Year, as available
  4. provide to Canada an audited financial statement of revenues received from Canada under this Agreement during the fiscal year including:
    1. the revenue section of the statement shall show the amount received from Canada under this Agreement during the Fiscal Year
    2. the total amount of funding used for early learning and child care programs and services under section 2.2
    3. the administration costs incurred by Newfoundland and Labrador in developing and administering early learning and child care programs under section 2.2.3
    4. the amount of any amount carried forward by Newfoundland and Labrador under section 4.6, if applicable; and
    5. if applicable, the amount of any surplus funds that are to be repaid to Canada under section 4.7

    The financial statement shall be prepared in accordance with Canadian Generally Accepted Accounting Principles and the audit shall be performed by the Newfoundland and Labrador Auditor General or his/her delegate, or by an independent public accounting firm registered under the laws of Newfoundland and Labrador and shall be conducted in accordance with Canadian Generally Accepted Auditing Standards.

5.2.3  Canada, with prior notice to Newfoundland and Labrador, may incorporate all or any part or parts of the said report into any public report that Canada may prepare for its own purposes, including any reports to the Parliament of Canada or reports that may be made public.

5.3  Audit

5.3.1  Newfoundland and Labrador will ensure that expenditure information presented in the annual report is, in accordance with Newfoundland and Labrador's standard accounting practices, complete and accurate.

5.4  Evaluation

5.4.1  As per established policies and processes with respect to program effectiveness, Newfoundland and Labrador will evaluate programs and services receiving funds provided under this Agreement and make public the results of any such evaluations.

6.0  Long-term collaboration

6.1  Canada and Newfoundland and Labrador agree to share and release data as available, and knowledge, research and information on effective and innovative practices in early learning and child care, to further support the development of and reporting on quality and outcomes. Canada and Newfoundland and Labrador agree to work together, and with stakeholders, towards the development of common quality and outcome measures that could be included in bilateral agreements in the future that could reinforce the Framework’s long-term vision.

6.2  Canada and Newfoundland and Labrador agree to work together to improve data collection and dissemination on key early learning and child care information for children under age six.

7.0  Communications

7.1  Canada and Newfoundland and Labrador agree on the importance of communicating with citizens about the objectives of this Agreement in an open, transparent, effective and proactive manner through appropriate public information activities.

7.2  Each government will receive the appropriate credit and visibility when investments financed through funds granted under this Agreement are announced to the public.

7.3  Canada reserves the right to conduct public communications, announcements, events, outreach and promotional activities about the Framework and this bilateral Agreement. Canada agrees to give Newfoundland and Labrador 10 days advance notice of public communications related to the Framework, this bilateral Agreement, and results of the investments of this Agreement.

7.4  Newfoundland and Labrador reserves the right to conduct public communications, announcements, events, outreach and promotional activities about the Framework and this bilateral Agreement. Newfoundland and Labrador agrees to give Canada 10 days advance notice and advance copies of public communications related to the Framework, this bilateral Agreement, and results of the investments of this Agreement.

8.0  Dispute resolution

8.1  Canada and Newfoundland and Labrador are committed to working together and avoiding disputes through government-to-government information exchange, advance notice, early consultation, and discussion, clarification, and resolution of issues, as they arise.

8.2  If at any time either Canada or Newfoundland and Labrador is of the opinion that the other Party has failed to comply with any of its obligations or undertakings under this Agreement or is in breach of any term or condition of the Agreement, Canada or Newfoundland and Labrador, as the case may be, may notify the other party in writing of the failure or breach. Upon such notice, Canada and Newfoundland and Labrador will endeavour to resolve the issue in dispute bilaterally through their Designated Officials, at the Assistant Deputy Minister level.

8.3  If a dispute cannot be resolved by Designated Officials, then the dispute will be referred to the Deputy Ministers of Canada and Newfoundland and Labrador most responsible for early learning and child care, and if it cannot be resolved by them, then the respective federal Minister of Canada and Newfoundland and Labrador Minister most responsible for early learning and child care shall endeavor to resolve the dispute.

9.0  Equality of treatment

9.1  During the term of this Agreement, if another province or territory, except the province of Quebec, which is not part of the Multilateral Early Learning and Child Care Framework, negotiates and enters into an Early Learning and Child Care Agreement with Canada, or negotiates and enters into an amendment to such an agreement and if, in the reasonable opinion of Newfoundland and Labrador, any provision of that agreement or amended agreement is more favourable to that province or territory than the terms set forth in this Agreement, Canada agrees to amend this Agreement in order to afford similar treatment to Newfoundland and Labrador, if requested by Newfoundland and Labrador. The amendment shall be retroactive to the date on which the Agreement, or amendment to such an agreement, with the other province or territory comes into force. This includes any provision of the bilateral agreement except for the Financial Provisions set out under section 4.0.

9.2  Canada will make publicly available up-to-date Early Learning and Child Care Agreements entered into with all provinces and territories, including any amendments, by posting them on a Government of Canada website.

10.0  Amendments to the agreement

10.1  This Agreement, including all attached annexes, except Annex 1, may be amended at any time by mutual written and signed consent of the Parties.

11.0  Termination

11.1  Canada may terminate this Agreement at any time if the terms of this Agreement are not respected by Newfoundland and Labrador by giving at least 12 months’ written notice of its intention to terminate. Newfoundland and Labrador may terminate this Agreement at any time if the terms of this Agreement are not respected by Canada by giving at least 12 months’ written notice of its intention to terminate.

11.2  As the effective date of termination of this Agreement under section 11.1, Canada shall have no obligation to make any further payments to Newfoundland and Labrador after the date of effective termination.

12.0  Notice

12.1  Any notice, information or document provided for under this Agreement will be effectively given if delivered or sent by letter, postage or other charges prepaid. Any notice that is delivered will have been received in delivery; and, except in periods of postal disruption, any notice mailed will be deemed to have been received eight calendar days after being mailed.

The address for notice or communication to Canada shall be:

Social Policy Directorate
140 Promenade du Portage
Gatineau QC  K1A 0J9

The address for notice or communication to Newfoundland and Labrador shall be:

Department of Education
P. O. Box 8700
St. John's NL  A1B 4J7

13.0  General

13.1  This Agreement, including Annex 1 and Annex 2, comprise the entire agreement entered into by the Parties with respect to the subject matter hereof.

13.2  This Agreement is based on the Multilateral Early Learning and Child Care Framework, Annex 1, concluded on June 12, 2017.

13.3  This Agreement shall be interpreted according to the laws of Canada and Newfoundland and Labrador.

13.4  No member of the House of Commons or of the Senate of Canada or of the Legislature of Newfoundland and Labrador shall be admitted to any share or part of this Agreement, or to any benefit arising therefrom.

13.5  If for any reason a provision of this Agreement that is not a fundamental term is found by a court of competent jurisdiction to be or to have become invalid or unenforceable, in whole or in part, it will be deemed to be severable and will be deleted from this Agreement, but all the other provisions of this Agreement will continue to be valid and enforceable.

13.6  This Agreement is drafted in English at the request of the Parties. Les parties ont convenu que le présent Accord soit rédigé en anglais.

Signed on behalf of Canada by the Minister of Families Children and Social Development at Gatineau this 11th day of January, 2021.

[Signed by] The Honourable Ahmed Hussen, Minister of Families Children and Social Development

Signed on behalf of Newfoundland and Labrador by the Minister of Education at St John’s this 12th day of January, 2021.

[Signed by] The Honourable Tom Osborne, Minister of Education

Signed on behalf of Newfoundland and Labrador by the Minister for Intergovernmental Affairs at St John’s this 15th day of January, 2021.

[Signed by] The Honourable Andrew Furey, Minister for Intergovernmental Affairs

Annex 1: Multilateral Early Learning and Child Care Framework

Federal, Provincial and Territorial Ministers most responsible for Early Learning and Child Care (ELCC) agree on the importance of supporting parents, families and communities in their efforts to ensure the best possible future for their children. For more details on this agreement, please consult the Multilateral Early Learning and Child Care Framework.

Annex 2: Newfoundland and Labrador’s Action Plan 2020-2021

Newfoundland and Labrador’s Action Plan supports the parameters established under the Multilateral Early Learning and Child Care Framework. It reflects the guiding principles of quality, accessibility, affordability, flexibility, and inclusivity, and considers those more in need.

Due to the COVID-19 pandemic, Newfoundland and Labrador’s ability to deliver on the initiatives outlined in this 2020-2021 Action Plan may be affected. As such, the targets may not be achieved and expenditures may differ.

Early Learning and Child Care System in Newfoundland and Labrador

The Government of Newfoundland and Labrador has a long history of providing a range of early learning and child care programs and services for young children and their families, while striving to increase access to affordable, high quality child care.

Child care for children (birth to thirteen years) is governed by the Child Care Act (2017). Newfoundland and Labrador has put in place three core programs and services to improve quality, sufficiency and affordability of early learning and child care:

  • The Child Care Services Subsidy (CCSS) program in Newfoundland and Labrador assists eligible families with the cost of regulated child care services by supporting low and moderate income families. The net family income (after income testing) is used to calculate the parental contribution towards the cost of child care. The subsidy is paid to the parent’s chosen child care service based on daily subsidy rates set under program policy. Child care services may set their daily parent fee above the subsidy approved rate (with the exception of child care centres participating in the Operating Grant Program).
  • The Operating Grant Program (OGP), launched in 2014, provides grants to participating child care centres to improve the affordability and sustainability of child care services for families with young children. The OGP sets conditions for receiving operational grants which include setting caps for parent fees, serving healthy snacks and lunches, and setting minimum wages for Early Childhood Educators (ECEs) working in the centre. This program lowers the cost of child care for all parents, and is particularly beneficial to those more in need who are eligible for a child care subsidy.Footnote 1
  • The Child Care Capacity Initiative (CCCI) program provides developmental, capital and start-up funding to not-for-profit community groups who want to develop child care spaces in underserviced areas of the province, which includes linguistic minority communities, Indigenous communities, and areas of the province where vulnerabilities in early learning have been demonstrated.

Recent initiatives in Newfoundland and Labrador

There are a number of provincial early learning and child care initiativesFootnote 2 that were introduced over the last few years in Newfoundland and Labrador, that support the direction of this Action Plan:

  • Full-Day Kindergarten for five-year old children was launched in the 2016-2017 school year. Full Day Kindergarten is a child-centred, developmentally appropriate, integrated program of learning through play available to all five-year-old children in public schools. A universal program for four-year old children (Junior Kindergarten) has been explored and is part of the Minister’s Mandate letter
  • in November 2016 a Premier's Task Force was appointed to conduct a review of the K-12 education system in Newfoundland and Labrador and to consider priority areas, including early learning. The Task Force gathered extensive input from parents, key stakeholder organizations and educators. Some key recommendations of the Premier’s Task Force for the early years are: to expand the Operating Grants Program, and to develop upgrading and professional learning opportunities for early childhood educators
  • the new Child Care Act and Regulations came into effect on July 31, 2017. The new legislation clarifies, strengthens and modernizes the previous legislation. Key changes include enhanced qualifications requirements for early childhood educators, changes in age ranges, and an opportunity to provide child care services outside regular hours. The changes provide flexibility for licensees and increase the quality expectation of newly licensed services (licensed child care centres, licensed family child care homes and family child care homes approved under a family child care agency’s licence). Consultations for the mandatory five-year legislative review are set to begin early in 2021
  • Navigating the Early Years: An Early Childhood Learning Framework, was launched in the Spring of 2019 accompanied by workshops, webinars and train-the-trainer sessions for ECEs offered by the Association of Early Childhood Educators Newfoundland and Labrador. The Framework guides the practice of ECEs in many settings

Early Learning and Child Care challenges in Newfoundland and Labrador

Despite these developments, Newfoundland and Labrador is facing unique challenges related to accessibility, affordability and quality of its early learning and child care system.

  • Challenges related to accessibility: The availability of child care spaces varies greatly across the province, as accessibility challenges exist in some neighborhoods in urban communities, and in some rural and remote communities.Footnote 3 The large geographic area and the fiscal realities of Newfoundland and Labrador, combined with the small population, presents challenges in developing child care services that will meet the needs of smaller, rural communitiesFootnote 4

    The COVID-19 pandemic has exacerbated these issues on two fronts: some child care services are reporting difficulty getting staff to return to work due to fear of the virus, and in some cases preferring the income from CERB and its replacement; and, some families not being ready to place their children back in the child care service. These effects are expected to last for the foreseeable future

  • Challenges related to affordability: In Newfoundland and Labrador, most licensed child care centres are privately owned and operated (approximately 65% commercial and 35% not-for-profit), setting their own rates and operational policies. The cost of child care is particularly high in urban areas. The Parent Trap report, released in December 2014 by the Canadian Centre for Policy Alternatives (CCPA), indicated that St. John’s had the second highest parent fees of major cities in Canada with a median monthly child-care fee of $1,400 for an infant space.Footnote 5 In the ensuing years of this report St. John’s has been noted as the only major city in Canada where parental fees dropped substantially. This is attributed to the enhancements in the Operating Grant Program that were funded through the first three years of this Agreement. Approximately 70% of child care centres currently participate in this program
  • Challenges related to quality: According to the Association of Early Child Educators of Newfoundland and Labrador, those working in the early childhood education sector can range from 40% having trainee (entry) level credentials to 60% having Level I-IV certification.Footnote 6 The qualification held by child care providers is linked in research to the quality of the service. In addition, a number of child care services were in need of renovations. More than 60 child care services availed of the Capital Renovation Grant under this Agreement to improve their physical child care space

This Action Plan aims to assist in addressing these challenges through the priority areas described below.

Newfoundland and Labrador’s priority areas for investment in the Early Learning and Child Care system are

  • improving accessibility and affordability of child care for low and middle income families, and
  • enhancing the quality of early learning and child care across Newfoundland and Labrador

Current planned investments are as follows:

Priority 1: Improved affordability and accessibility

Description Fiscal year 2020-2021 funding
Expanding and Enhancing the Operating Grant Program (OGP) $4,100,000
Changes to the Child Care Services Subsidy (CCS) $1,000,000
Carry Forward for COVID-19 Compensation Grant and Essential Worker Child Care Program $2,000,000
Enhancing the Child Care Capacity Initiative (CCCI) $500,000

Subtotal for 1: $7,600,000

Priority 2: Enhanced quality

Description Fiscal year 2020-2021 funding
Enhancements of grants, bursaries and professional learning for early childhood educators $200,000
New Quality Improvement Grant Program $800,000

Subtotal for 2: $1,000,000
Aministration: $580,110
Total: $9,180,110

Priority 1: Improved accessibility and affordability

The 2017 Premier’s Task Force Report emphasizes that “Affordability of and accessibility to early learning programs are significant challenges for many families”. This extended Action Plan proposes to continue to invest in three programs (Operating Grant, Subsidy and Capacity Programs) which work together to address the affordability and accessibility challenges in Newfoundland and Labrador:

1. Continued expansion of the Operating Grant Program

Increasing the operating grants provided to licensed centres under this program and introducing new operating grants for licensed family child care homes in order to reduce the child care costs for low and moderate income families and support the affordability of child care for all families in Newfoundland and Labrador. This Program also caps parent fees at the child care subsidy rate at participating child care services. This means children and families eligible for full subsidy have access to free child care in these services. In addition, children and families who are ineligible for subsidy still have access to more affordable child care at the subsidy rate at participating centres.

Under the first three years of the bilateral Agreement, more than 1,000 additional spaces joined the Operating Grant Program. Currently, including the spaces created through the 2017-2020 Agreement, a total of 2,500 spaces for children from birth through age six are supported in this program with funds under this bilateral agreement. The extended budget will maintain these more affordable spaces and will allow a moderate increase in both child care centres and family child care homes on the program in 2020-2021. Depending on the potential impacts of COVID-19 on the child-care sector, we estimate that an additional 150 more affordable spaces may be supported by federal funding through the program during the 2020-2021 fiscal year.

Note: Effective January 1, 2021 the Operating Grant Program is moving to a $25 per day rate for infants, toddlers, and preschoolers.

2. Continued Support of the increase in the Child Care Services Subsidy program

Increasing the net family income threshold (after income testing) under the first three years of this Agreement increased the number of families eligible for full and partial subsidies, and further reduced the parental contribution for child care for those currently not eligible for a full subsidy. The program sets maximum daily rates that are paid directly to the regulated child care service on behalf of families.

Investments made under the 2017-2020 Action Plan increased the net family income threshold (after income testing) from $32,000 to $35,000. Under the new threshold:

  • families in receipt of a full child care subsidy saw the elimination of surcharges and receive free child care when attending a child care service participating in the Operating Grant Program; and
  • moderate income families that are in receipt of a partial child care subsidy saw reduced child care fees

The extended funding under this Agreement will continue to reduce or eliminate child care costs for approximately 500 children.

Note: This program is application dependent and may be heavily impacted by the COVID-19 pandemic.

3. COVID-19 Compensation Grant and Essential Worker Child Care Program

The Province was unable to spend 30% of the 2019-2020 funding allocation ($2M) due to several unanticipated disruptions (extended and unprecedented state of emergency starting in January 2020). As a result, the Province would use the 30% of funds carried-forward to 2020-2021 to address COVID-19 impacts.

4. Continued Enhancement of the Child Care Capacity Initiative (CCCI)

The capacity initiative provides developmental, capital and start-up funding to not-for-profit community groups who want to develop child care centres. Enhancements increased the number of regulated child care services particularly in underserviced areas, with a focus on rural communities, linguistic minority communities, and Indigenous communities.

These enhancements increased the grant available for non-profit organizations. Newfoundland and Labrador values its partnership with and provides support for Francophone child care providers across the province. In the 2020-2021 year an “in-progress” capacity project with the Francophone Parents Association in St. John’s will support the development of approximately 30 new child care spaces.

Summary: Targets - Improved accessibility and affordability
Planned investment 2020-2021 anticipated target
Continued Expansion of the Operating Grant Program (OGP) Total of 150 additional affordable sustainable child care spaces in licensed child care services
Continued Support of the Child Care Subsidy Program This will eliminate or reduce child care costs for 500 children.
Continued Enhancement of the Child Care Capacity Initiative (CCCI) Total of 30 new francophone child care spaces.

Priority 2: Enhanced quality

Quality improvement in regulated child care is vitally important for the growth and development of children under six. This Action Plan focuses on improving quality through investing in three areas:

1. Continued Enhancements of grants, bursaries and professional learning opportunities for Early Childhood Educators (ECEs)

Quality and stability of the workforce in the child care sector is directly linked to the levels of education held by ECEs. Certification statistics in Newfoundland and Labrador clearly show that the higher the level of certification, the more likely a person is to renew their certification and to stay in the child care sector. The Child Care Act requires those without a credential in Early Childhood Education to be working towards at least a post-secondary one-year certificate within a five-year period.

The province offers different types of bursaries for early childhood educators to encourage upskilling, recruitment and retention in the regulated child care sector (i.e., trainee bursary, on-campus field placement bursary, graduate bursary program). Enhancements of these bursaries under this Agreement will attract early childhood educators to upgrade more quickly and to work in the regulated child care sector in the province.Footnote 7

This Action Plan enhances incentives to increase Early Childhood Education qualifications, thereby influencing the quality of the child care children receive in the province.

The continued enhancements include several key components:

  • increased ECE Trainee Bursary currently provides $250 per completed Early Childhood Education course to those working in the child care sector who are upgrading their qualifications. Lifting the cap under the 2017-2020 Agreement on the number of courses eligible for the bursary in each fiscal year encouraged quicker upgrading, which is positively impacting the quality of child care services. Based on an average of four distance courses per year per ECE, this raised the annual bursary to approximately $1,000 per ECE (including the $500 annual provincial contribution per ECE). Lifting the cap has seen steady growth in applicants for this bursary, prior to the increase we would see 20-25 applicants per quarter – in Quarter 2 of 2020-2021 there were 70 applicants for the bursary.Footnote 8
  • increased ECE On-Campus Field Placement Bursary currently provides $2,500 on successful completion of a mandatory field placement at a College campus for those working in the child care sector who are upgrading their qualifications. This initiative increased the amount of the bursary to $2,500 (including the $1,200 provincial contribution) in order to better support of the cost of completing a mandatory placement. Prior to COVID-19 the number of applicants for this bursary was steadily increasing – we expect this to pick up again in the coming months
  • increased ECE Graduate Bursary Program currently provides up to $7,500 based on completion of an Early Childhood Education Diploma program. Recipients of this enhanced bursary (approximately 25 per year) must agree to a three-year return in service in regulated child care in the province. This program provides an incentive to graduates who complete the two-year diploma program in Early Childhood Education to stay in the province and work in regulated child care. Ensuring that they work in regulated child care in the province positively impacts the quality of the child care services available for families. In Quarter 3 of 2019-2020 there were 32 applicants for this bursary – almost double the number we would see in a full year prior to the changes funded through this agreement

In addition, this Action Plan proposes to continue to broaden availability, accessibility, and quality of professional learning for those working in the early learning and child care sector, such as ECEs and those working family resource centres. As a result of these bursary investments under this Agreement, up to 15 additional ECEs will attain either a one-year Certificate or two-year Diploma in Early Childhood Education by 2021. This will have a positive impact on approximately 120 children, and all ECEs will have access to new professional learning opportunities.

2. Quality Improvement Program

During the first three years of the agreement Quality Enhancement was provided through the Capital Renovation Grant. Due to the high number of applicants for that program it was decided to enhance the physical quality of child care services that wished to remove waivers and meet the new legislative standards. More than 55 child care services availed of this grant.

The Quality Enhancement program (2020-2021) offers:

  • dedicated child care quality consultants who will work with and provide consultation to all child care services who wish to participate in order to increase quality (anticipated participation 50 centres (approximately 1,750 spaces / 220 early childhood educators) and 20 family child care homes (approximately 100 spaces / 20 early childhood educators); and
  • a Quality Enhancement Grant available to child care services participating in the Operating Grant Program to boost quality and provide consultation services. It is anticipated that 15%(approximately 15 centres / 525 spaces; 5 family child care homes/ 25 spaces) of participating Operating Grant Program services will apply for this grant once it is available
Summary: Targets - Enhancing quality
Planned investment Anticipated target
Enhancements to grants, bursaries and professional learning opportunities for ECEs

15 additional ECEs will receive a Certificate or Diploma in Early Childhood Education (impacting approximately 120 children)

(All ECEs in the province will have access to new professional learning opportunities)
Quality Improvement Program Consultation Services 50 centres (1,750 spaces / 220 early childhood educators) / 20 family child care homes (100 spaces / 20 early childhood educators)
OGP Quality Improvement/ Enhancement Grant 20 OGP child care services (15 centres/525 spaces; 5 family child care homes/ 25 spaces)

How Newfoundland and Labrador plans to address the early learning and child care needs of its children/families more in need

The combination of investments proposed in this Action Plan will continue to address the early learning and child care needs of children and families more in need. Continued support and enhancement of the capacity initiative and the operating grants will increase the number of affordable child care spaces while the changes to the subsidy program will result in additional children and families more in need receiving full and partial subsidies. In January 2021 parent fees under the Operating Grant Program will move to $25 per day. The combination of these initiatives will result in more families having access to free or low cost child care.

In addition, this Action Plan proposes continuation of a variety of incentives and supports to improve the quality of the early learning and child care sector. The quality enhancement program provides evidence-based process-quality supports and professional learning opportunities to continue to support the release of Navigating the Early Years will strengthen the sector’s capacity to address the early learning and child care needs of children more in need.

Newfoundland and Labrador’s Early Learning and Child Care Support for Francophone and Indigenous Communities

Newfoundland and Labrador’s Office of French Services is available to provide translation and linguistic support to facilitate dialogue and engagement with Francophone stakeholders and families to determine their priorities and needs for child care services. The policy document related to the Child Care Act and Regulations has been fully translated and posted online. Recently the early learning framework (Navigating the Early Years) has also been translated and posted online.

The Office of Labrador Affairs and the Intergovernmental Affairs Secretariat is available to support the Department of Education and Early Childhood Development to engage meaningfully so that the unique perspectives of Indigenous communities are at the forefront in determining priorities and needs for child care programs serving Indigenous families.

A Child Care Capacity project is underway with the Francophone Parents Association of St. John’s which will result in approximately 30 new child care spaces.

Using funds provided by the federal government under this extended bilateral Agreement, Newfoundland and Labrador will support the expanded Operating Grant Program and the Child Care Capacity Initiative to address unique needs and provide better access to affordable child care for Indigenous and for official language minority groups and communities, with a focus on French speaking communities. Enhancements to the Child Care Capacity Initiative will continue to increase the support available for the development of child care spaces in underserviced areas of the province, especially for French speaking communities.

Newfoundland and Labrador’s planned innovation spending

Newfoundland and Labrador is committed to develop and implement innovative approaches to address early learning and child care challenges through subsidies, grants, bursaries and professional learning opportunities that will support the principles of affordability, accessibility, inclusivity, and quality of regulated child care services provided to children in the province.

For instance, linkage of the operating grants with the subsidy program in Newfoundland and Labrador is innovative in the context of the provincial early learning and child care sector which insures that families more in need are able to access affordable child care spaces and has been shown to be successful over the first three years of this Agreement. Moving to $25 per day under the Operating Grant Program is innovative as no other province or territory (with the exception of Quebec) has made a regulated fee available to all regulated child care services that choose to participate.

The continued enhancement and expansion of both programs in this Action Plan will strengthen further this innovative linkage for supporting affordability of child care in Newfoundland and Labrador.

Quality improvement support through consultation services to all child care services and through access to a quality improvement capital grant for services participating in the operating grant program is an innovative program in this Province that increases the quality of child care services received by the children and families using the system.

Federal investments will be incremental, and will not displace existing Newfoundland and Labrador’s early learning and child care spending, in particular spending dedicated to Indigenous populations

The Government of Newfoundland and Labrador is committed to not displacing provincial investments with federal funding committed under this Agreement.

At this time there is no specific budget in the early learning and child care area that is dedicated to Indigenous populations – funding programs (e.g. Child Care Services Subsidy, Operating Grant Program) are available for any regulated early learning and child care service.

Newfoundland and Labrador’s engagement with stakeholders

Newfoundland and Labrador is committed to engaging key stakeholders and the public regarding early learning and child care initiatives. The Department meets with the Association of Early Childhood Educators and the Early Childhood Educator Human Resources Sector Council of Newfoundland and Labrador regularly to gather feedback on early learning and child care issues.

Specific stakeholder engagement processes have taken place recently with regard to the potential development of Junior Kindergarten. These consultations included face-to-face sessions; online sessions; key stakeholder interviews, and surveys and provided invaluable insight into the needs of the sector as well as the needs of children and families most in need.

In addition to these departmental specific engagement sessions the Premier’s Task Force on Improving Educational Outcomes also conducted wide-ranging public engagement, which included the early years in addition to the K-12 public school system in the province. The Division of Early Learning and Child Development also receives information relating to early learning and child care through other government engagement processes such as pre-budget consultations and minimum wage reviews.

Our ongoing commitment to public engagement is enshrined in our new Child Care Act which requires review, with public engagement, of the legislation every five years. This public consultation is slated to begin early in 2021.

Page details

Date modified: