Ontario has entered 'next phase' of negotiations with feds on child-care deal, official confirms

Ontario has entered the “next phase” in its negotiations with the Trudeau government to reduce the cost of childcare in the province, a spokesperson for the federal minister in charge of the file says.

The federal government has offered Ontario $10.2 billion in funding to reduce the average cost of child care by 50 per cent by the end of 2022 en route to lowering it further to $10 a day by 2026.

But the Ford government has failed to reach a deal with the feds to date, leaving Ontario as the only province which has not signed on to the $30 billion accord.

In a statement provided to CP24 on Tuesday, a spokesperson for Federal Minister of Families, Children and Social Development Karina Gould confirmed that Ontario “submitted a first draft of its action plan” on how it intends to disperse the funds late last week, allowing for “negotiations to move to the next phase.”

The development comes as the March 31 end of the fiscal year fast approaches.

Federal officials have told CTV News Toronto that more than a billion dollars of the funding promised to Ontario was intended for the 2021-2022 fiscal year and could “lapse” if a deal isn’t reached by the end of this month.

The funding likely wouldn’t be pulled entirely but the federal government would have to embark on a complicated process to reallocate it to the 2022-2023 fiscal year, potentially further delaying the fee relief for parents.

“We recognize the importance of reaching a deal before the end of the fiscal year, to ensure that Ontario families have access to all the funding that was allocated for them to help make their lives more affordable,” Gould’s spokesperson Mohammad Hussain said in a statement provided to CP24. “Although there is work ahead, Minister Gould remains optimistic that we can work together to secure a deal that will deliver for Ontario families and children.”

So far five provinces and territories have already begun putting the federal money towards reducing childcare fees, with a number of them slated to issue retroactive rebates to parents in the coming weeks.

As an example, Saskatchewan reduced fees by 50 per cent as of November and also plans to issue parents rebate cheques retroactive to last July. In Nova Scotia fees were cut by 25 per cent retroactive to Jan. 1 with parents able to either receive a credit or a rebate as of April. The province is also planning to reduce fees by another 25 per cent by the end of 2022.

Ontario Liberal Leader Steven Del Duca has also promised that parents will receive a rebate averaging $2,750 per child should his party from government after the June 2 election.

Speaking with reporters at a press conference earlier on Tuesday, Ontario Education Minister Stephen Lecce said that his government remains committed to getting a deal done “as soon as possible so that we can provide certainty and savings to Ontario families.”

However, he said that the province needs “more investment” to eventually lower the cost of childcare to an average of $10 a day.

He also dodged several questions on whether the prolonged negotiations could cost parents rebate cheques retroactive to Jan. 1 should a deal not be reached this month.

“The long-standing position of the province is that we need flexibility and more investment to get to $10 (a day),” he said. “We want to get to $10, we need to get to $10 so that we can retain the same affordable options in this province that those east and west will as well.”

DEL DUCA ACCUSES FORD OF DRAGGING FEET

Gould had chastised Ontario as recently as late last month for failing to submit an “action plan” that she said was necessary to move negotiations forward.

But now that the federal government has that document there is some optimism that a deal could follow within weeks.

In fact, a federal source told CTV News Toronto that other provinces were able to reach an agreement roughly three weeks after the government received their action plans.

“The submission of the first draft of the action plan has allowed for negotiations to move to the next phase, where officials can now work to ensure that the plan meets federal objectives on space creation, affordability, data and reporting, workforce supports, inclusivity and quality, within the parameters of the funding allocation for Ontario,” Hussain said in the statement provided to CP24.

At an unrelated briefing earlier in the day, Ministry of Education officials were asked twice to comment on whether they are preparing a mechanism to remit refunds to parents ahead of an expected deal but refused to comment.

Meanwhile at Queen’s Park, Del Duca accused Ford of “stubbornly” dragging his feet because $10 a day childcare is “not a priority” for his government.

“I don't think it should have come to this. I don't think we should be at the point where Ontario is the only holdout. I think that's a really horrible place for our province to be and families in this province need help,” he said.