Implementation agreement 2021 to 2025 of the March 10, 2017, Asymmetrical Agreement – Early Learning and Child Care component

Official title: Implementation agreement 2021-2025 of the March 10, 2017, Asymmetrical Agreement – Early Learning and Child Care component

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Between:

Referred to individually hereafter as the "Party" and collectively hereafter as the "Parties".

Preamble

Whereas the Department of Employment and Social Development Act authorizes the minister to conclude agreements with the provinces and territories, for the purpose of facilitating the formulation, coordination and implementation of any social development program or policy that are part of federal Minister’s mandate.

Whereas the Government of Canada has established an early learning and child care framework with the provinces and territories, with the exception of Quebec.

Whereas the field of early learning and child care is under the exclusive jurisdiction of Quebec and Canada recognizes that the allocation of its funding must respect and be in keeping with this exclusive jurisdiction.

Whereas Quebec has its own network of educational child care services since 1997, which has been fully funded, and will continue to provide early childhood services to its population including the English speaking community.

Whereas under the asymmetrical agreement between Canada and Quebec on health care funding of March 10, 2017, Quebec expects to receive approximately $1.2 billion from fiscal year 2017 to 2018 to fiscal year 2027 to 2028 period. This amount, which will vary according to population projections, will come from the social infrastructure child care component under the Federal Infrastructure Plan, and Quebec would use this amount to fund its priorities with respect to direct services to families.

Whereas Canada and Quebec signed, on March 29, 2018, the Implementation Agreement of the March 10, 2017, Asymmetrical Agreement – Early Learning and Child Care Component.

Whereas Canada and Quebec signed, on October 23, 2020, an extension of the Implementation Agreement of the March 10, 2017, Asymmetrical Agreement – Early Learning and Child Care Component, which ended on March 31, 2021.

Whereas the March 10, 2017, Asymmetrical Agreement provides for federal funding until fiscal year 2027 to 2028, and that, in order to allow Quebec to receive the funding planned for fiscal year 2021 to 2022 to fiscal year 2024 to 2025, the Parties must extend the Asymmetrical Agreement.

Whereas Canada is committed to extending the Agreement with Quebec until fiscal year 2027 to 2028, with terms similar to the current Asymmetrical Agreement, if Quebec's funding and child care services are minimally maintained at the fiscal year 2021 to 2022 level.

Whereas the Parties also signed a separate asymmetrical agreement providing Quebec the instalment of its share of the additional $27.2 billion over 5 years announced in the 2021 federal budget for provinces and territories for early learning and child care.

Whereas in November 2017, the Quebec government created the Secretariat for relations with English-speaking Quebecers whose mandate is to ensure that the concerns of English-speaking Quebecers are taken into consideration in the development of government policy direction and decisions, and in matters of access to government programs and their application.

Whereas Canada, the Assembly of First Nations, Inuit Tapiriit Kanatami, and the Métis National Council jointly released the Indigenous Early Learning and Child Care Framework in September 2018. This framework establishes key principles and sets a vision for Indigenous children and families.

Whereas Quebec's child care program is available on Indigenous reserves.

Whereas Canada recognizes that Quebec invests significantly in Indigenous early learning and child care, and Canada and Quebec agree to work collaboratively with Indigenous governing bodies and organizations on Indigenous early learning and child care.

Now therefore, Canada and Quebec agree as follows.

1. Definition

The following expression used in this Agreement will have the scope defined below:

2. Period of agreement

The Agreement will take effect upon the last signature being affixed and will remain in effect until March 31, 2025, unless terminated in writing by Canada or Quebec in accordance with the terms hereof in section 8. Notwithstanding its effective date, funding provided under this Agreement will cover the period from April 1, 2021 to March 31, 2025, in accordance with section 3.

The Parties agree that for the period subsequent to that covered by this Agreement, the Agreement will be extended under similar conditions and with the same funding formula until fiscal year 2027 to 2028 if the Quebec's funding and child care services are minimally maintained at the fiscal year 2021 to 2022 levels.

The proposed funding for the period subsequent to this Agreement and until fiscal year 2027 to 2028 is presented in Annex 3.

3. Contribution

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, 2021, and ending on March 31, 2025:

  1. $399,347,694 for the fiscal year beginning on April 1, 2021
  2. $524,347,694 for the fiscal year beginning on April 1, 2022
  3. $565,847,694 for the fiscal year beginning on April 1, 2023
  4. $565,847,694 for the fiscal year beginning on April 1, 2024

The final annual amount to be paid to Quebec will be calculated by multiplying the total amount of federal funding paid for that fiscal year as listed above (minus the fixed base rate of $2 million for each province and territory) by the quotient obtained by dividing the population of Quebec during that fiscal year by the total population of all the provinces and territories during that fiscal year, to which the fixed base rate of $2 million will be added. For the purposes of this calculation, the population for a fiscal year will be determined on the basis of official estimates produced by Statistics Canada on July 1 of that fiscal year, which are published in September of the same fiscal year. The final annual amount will be determined by Canada and communicated to Quebec on or about October 15 of each fiscal year.

For the fiscal year 2025 to 2026 and fiscal year 2027 to 2028 period, the amount of funding paid to Quebec will be calculated according to the calculation method presented above and will be used for the period beginning on April 1, 2021, and ending on March 31, 2025.

4. Payment of the contribution

Subject to the annual adjustment based on the formula described in section 3, the estimated amount of the contribution to be paid by Canada to Quebec will be as follows below.

Table 1: Estimated amounts of Canada’s contribution to Quebec from fiscal year 2021 to 2022 to fiscal year 2024 to 2025
Fiscal year Estimated amounts of Canada’s contribution to Quebec*
2021 to 2022 $86,233,029
2022 to 2023 $114,434,967
2023 to 2024 $123,798,011
2024 to 2025 $123,798,011

* Amounts represent annual estimates based on Statistics Canada population estimates.

For fiscal year 2021 to 2022, subject to approval of appropriations, the payment will be made in fiscal year 2022 to 2023 within 60 days after the signatures of both Parties have been affixed to this Agreement.

For fiscal year 2022 to 2023, the first payment will be made within 60 days after the signatures of both Parties have been affixed to this Agreement. The second payment will be made no later than November 15 of the same fiscal year.

Starting in fiscal year 2023 to 2024, the first payment will be made no later than June 15 of each fiscal year covered by the Agreement, and the second payment will be made no later than November 15 of the same fiscal year. The total of the two semi-annual payments will constitute the total contribution payment for that fiscal year and may not be adjusted once the final payment for the fiscal year has been made.

All payments made by Canada under this Agreement are subject to an annual appropriation by the Parliament of Canada for the fiscal year during which the payment must be made.

Quebec shall reimburse Canada for any amounts paid that exceed the amount to which it is entitled under this Agreement. Such a debt is a debt due to Canada and must be repaid quickly after the receipt of a written notice of a claim for repayment.

5. Use of contribution funding

As Quebec has been funding its own network of educational child care services since 1997, Quebec will use the contributions paid under this Agreement to fund additional direct services for families, including those provided as examples by Quebec in Annex 1.

6. Reports

Quebec will provide Canada with public reports consistent with Quebec's accounting practices, in particular those about its educational child care system and offered to non-governmental organizations and the public. These reports include objectives and indicators produced by Quebec and are associated with Quebec's educational child care system. Quebec agrees to let Canada distribute them and make them available to other provincial and territorial governments.

For a number of years, Quebec has been sharing its information, expertise and best practices with respect to early childhood development, including early learning and child care, with other governments in Canada and it intends to continue this practice, which will contribute to the development of comparable indicators.

7. Dispute resolution

Canada and Quebec 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.

Should a dispute between the Parties arise with respect to the interpretation and/or implementation of any of the terms of this Agreement, either Party may notify the other, in writing, of its concerns. Upon receipt of such notice, Canada and Quebec will endeavour to resolve the issue in dispute in a manner that is deemed appropriate by the designated officials.

In the event a dispute cannot be resolved by the designated officials, the issue may be referred, in the first instance, to the federal Deputy Minister of Employment and Social Development and the Quebec Deputy Minister of Families and, in the second instance, to the federal Minister of Families, Children and Social Development and the Quebec Minister of Families.

8. Amendments to the agreement

This Agreement may be amended at any time if the Parties mutually agree to do so in writing. Any amendments will enter into effect on the date agreed by the Parties. Neither Canada nor Quebec may terminate this Agreement unless it is demonstrated that the Agreement is not being honoured by the other Party. That Party must provide the other Party with at least 12 months' written notice of its intention to terminate the Agreement.

9. Waiver

Failure by any Party to exercise any of its rights, powers, or remedies under this Agreement or its delay to do so does not constitute a waiver of those rights, powers, or remedies. Any waiver by either Party of any of its rights, powers, or remedies under this Agreement must be in writing; and, such a waiver does not constitute a continuing waiver unless explicitly stated.

10. General

This Agreement, including Annexes 1, 2 and 3, constitutes the entire Agreement between the Parties with respect to the subject matter of this Agreement.

This Agreement shall be interpreted in accordance with the laws in force in Quebec.

Canada will make public the entire Agreement by posting it on the Government of Canada website.

No member of the House of Commons or the Senate of Canada or of the National Assembly of Quebec shall be admitted to any share or part of any contract, agreement or commission made pursuant to this Agreement, or to any benefit arising therefrom.

If for any reason a provision of this Agreement that is not a fundamental term is found to be 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.

11. Notice

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 be deemed to have been received on delivery and, except in periods of postal disruption, any notice mailed will be deemed to have been received 8 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

NC-SSP-ELCC-GD@hrsdc-rhdcc.gc.ca

The address for notice or communication to Quebec shall be:

Secrétaire général
Ministère de la Famille
425, rue Jacques-Parizeau
Québec QC  G1R 4Z1

Signatures

Signed on behalf of Canada by the Minister of Families, Children and Social Development at Gatineau this 20th day of September 2022.

[Signed by] The Honourable Karina Gould, Minister of Families, Children and Social Development.

Signed on behalf of Quebec by the Minister of Finance at Québec this 22nd day of August, 2022.

[Signed by] Eric Girard, Minister of Finance.

Signed on behalf of Quebec by the Minister of Families at Québec this 22nd day of August, 2022.

[Signed by] Mathieu Lacombe, Minister of Families.

Signed on behalf of Quebec by the Minister responsible for Canadian Relations and the Canadian Francophonie at Québec this 22nd day of August, 2022.

[Signed by] Sonia LeBel, Minister responsible for Canadian Relations and the Canadian Francophonie.

Annex 1: Examples of direct services to families and support for the early childhood education workforce

Over $2.7 billion for early child care services in fiscal year 2021 to 2022

As of March 31, 2022, there were 285,407 regulated child care spaces, of which 217,105 spaces are subsidized.

The Grand chantier pour les familles [Major action plan for families]

As part of the Grand chantier pour les familles, announced in October 2021, an investment of $5.9 billion by fiscal year 2025 to 2026 was made, including $4.3 billion for new measures, such as:

Protecting vulnerable persons and combating bullying

The Government of Quebec launched its new Concerted Action Plan to Prevent and Counter Bullying and Cyberbullying 2020 to 2025 [S’engager collectivement pour une société sans intimidation] on February 23, 2021. It is the result of the work of 17 departments and agencies and the cooperation of all parliamentary groups represented in the National Assembly. It includes 26 measures and focuses on adopting egalitarian behaviours that encourage openness to diversity. Several measures aim to provide a healthy, safe and positive environment for all young people, including in schools:

The government has allocated $20 million for the plan’s implementation, with an additional $9.6 million coming from the regular budgets of the departments and organizations responsible for this task.

Strengthening community action for families and supporting the deployment of a program in Indigenous communities

Organismes communautaires Famille [Community organizations Family] play an important role in helping all families, particularly those who are more vulnerable. Throughout all stages of life, beginning with pregnancy, they offer coaching and support services, as well as activities tailored to the needs of families.

The government recognizes the importance of community organizations that work with families. As a result, the Government Action Plan for Community Action 2022 to 2027 provides $117.4 million over 5 years, which include:

This is in addition to the $90 million announced in the fiscal year 2020 to 2021 budget to further support the Organismes communautaires Famille and community drop-in child care centres for the period from fiscal year 2020 to 2021 to fiscal year 2024 to 2025.

Operation workforce – targeted measures in selected priority areas

Quebec is facing labour shortages that affect most regions and sectors of activity, including early childhood education. Operation workforce aims to address this shortage through a series of targeted measures, including:

Annex 2: Early childhood workforce funding for fiscal year 2021 to 2022

Whereas, Canada and Quebec agree that the early childhood workforce is integral to providing high-quality early learning and child care.

Whereas Canada and Quebec recognize the importance of qualifications and training for the early childhood workforce as part of a high quality early learning and child care system.

Now therefore, the Parties agree as follows.

1. Contribution

Canada has designated the following maximum amount to be transferred in total to all provinces and territories with a fixed base rate of $2 million for each province and territory and the balance of the funding on a per child aged 0 to 12 basis, for the period starting April 1, 2021, and ending March 31, 2022.

  1. $420,000,000 for the fiscal year beginning April 1, 2021

The final annual amount to be paid to Quebec, in addition to the base funding, will be calculated by multiplying the total amount of federal funding paid for fiscal year 2021 to 2022 (minus the fixed base rate of $2 million for each province and territory) by the quotient obtained by dividing the population of children aged 0 to 12 in Quebec in fiscal year 2021 to 2022 by the total population of children aged 0 to 12 of all the provinces and territories during that fiscal year. For the purpose of this calculation, the population of children aged 0 to 12 will be determined on the basis of official estimates produced by Statistics Canada on July 1, 2021, which are published in September 2021. The final annual amount will be determined by Canada and communicated to Quebec on or about October 15, 2021.

2. Payment of the contribution

Subject to the annual adjustment based on the formula described in section 1, the estimated amount of the contribution to be paid by Canada to Quebec will be as follows below.

Table 2: Estimated amount of Canada’s contribution to Quebec for fiscal year 2021 to 2022 for the early childhood workforce
Fiscal year Estimated amount of Canada’s contribution to Quebec*
2021 to 2022 $90,781,732

* Amount represents annual estimates based on Statistics Canada population estimates.

Payment shall be made in one instalment in fiscal year 2022 to 2023 within 60 days of the date on which both parties have signed this Agreement.

3. Use of contribution funding

As Quebec has been funding its own network of educational child care services since 1997, Quebec will use the contributions paid under this Annex to fund additional services for families, including those related to the workforce and provided as examples by Quebec in Annex 1. Quebec recognizes the importance of supporting the recruitment and retention of the early childhood education workforce.

Annex 3: Estimated amounts transferred to Quebec from fiscal year 2017 to 2018 to fiscal year 2027 to 2028

Table 3: Estimated amounts of Canada’s contribution to Quebec by fiscal year from fiscal year 2017 to 2018 to fiscal year 2027 to 2028*
Fiscal year Estimated amounts of Canada’s contribution to Quebec
2017 to 2018 $87,447,014
2018 to 2019 $86,529,686
2019 to 2020 $86,275,188
2020 to 2021 $86,233,029
2021 to 2022 $86,233,029**
2022 to 2023 $114,434,967**
2023 to 2024 $123,798,011**
2024 to 2025 $123,798,011**
2025 to 2026 $125,038,896**
2026 to 2027 $139,252,673**
2027 to 2028 $139,252,673**
Total $1,198,293,176

* Funding beyond this Agreement will be confirmed during the renewal of the bilateral Agreements.

** The amounts indicated are indicative only for fiscal year 2021 to 2022 to fiscal year 2027 to 2028 and based on Statistics Canada's July 2020 population projections.

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