KEY POINTS:
One of the first major childcare groups to support the "20 free hours" scheme is warning parents that if they don't pay up to $3.75 an hour in "optional" fees the free funding could be withdrawn.
KidiCorp has sent letters to parents of about 3000 children offering the 20 free hours of early childhood education to 3- and 4-year olds, but saying it might have to withdraw it if not enough parents sign up to an "optional fee".
Chief executive Wayne Wright said the extra charges of $1.25 to $3.75 an hour were needed.
"The reality is that it's not a 'free' 20 hours that the Government is offering. It's a subsidy - that's what it is."
National Party early education spokeswoman Paula Bennett said parents were effectively over a barrel because centres could drop the "free" funding altogether if they didn't cough up.
"It is difficult for parents to speak out. They want the subsidy and won't be turning away from anything that saves them a few dollars each week, but the Labour Government has made a promise to parents - 20 hours for free - and it's time to follow through."
The free funding scheme is due to begin next month. However, many centres have opted out, saying the rates of $4.09 to $10.60 an hour are not enough to meet even the basic costs of centres in expensive areas. The rates are based on the average national cost of a basic service. Centres cannot charge compulsory fees on top of this.
Ms Bennett said the Government's insistence that the hours were "free" was a farce. Other examples of top-up charges were the Auckland Kindergarten Association, which is charging 50c an hour, and the TreeHouse in Tauranga, which is charging a "quality education surcharge" of $20 a day to cover such things as good staff ratios, guest speakers, a "beautiful and aesthetic learning environment" and "provision of nutritional and sumptuous morning tea".
"Kidicorp were one of the first to say they would opt in and even they are unable to deliver the 20 hours for free under this flawed policy," Ms Bennett said. "The minister needs to come clean, call it a subsidy and stop this ridiculous situation where the sector has to come up with crazy ways to justify charging a fee."
In a statement, Education Minister Steve Maharey said his ministry would monitor the policy closely for any "unforeseen" effects, and survey services' circumstances. This would "inform consideration of Budget 2008".
He would not comment on individual providers, but said parents at centres that did not sign up were potentially missing out on $80 a week.
Last week Mr Maharey told Parliament he still did not know how many centres were signing up and how many of the 92,000 children eligible for the education would get it.
Mr Wright said other private providers, such as ABC, were not offering it at all. "We've tried to develop a programme that keeps us well and passes the maximum possible savings on to parents, but it's really on the parents to accept the optional charges."
He said about 75 per cent of parents so far had agreed to the charges and he had undertaken to reduce them if the Government raised its rates.
Bear Park, which has nine centres in Auckland, has sent a letter to parents turning the free hours scheme down, but saying it will continue to monitor it.
It says it does "not feel comfortable" offering the scheme because the rates are below operating costs "and we simply cannot afford to offer it".
