Labour: free childcare for all working parents

Toddlers with parents in full-time employment will be given free childcare as part of Labour’s plans to encourage more women to find jobs.

The party estimates this will lead to 2,600 women joining the workforce – almost 30 per cent over existing projections – and create 500 carer jobs in the next five years.

It would see the Government subcontract childcare services to private companies, although existing facilities would continue and tax breaks for private childcare would remain.

Party leader Joseph Muscat said the free services would lead to 3,000 additional childcare places over five years.

The location, size and number of new centres would be worked out with the private sector in due course, though the system could start working “by 2014”, he said.

Dr Muscat announced the proposal yesterday, saying the estimated €3.1 million outlay in the first year would be gradually clawed back through tax revenue generated by the new women workers.

“Our projections show that the measure will bring in more money than it costs by the fifth year. And the outlay is itself small, con­sidering Malta Enterprise spent €4 million doing up its offices.”

The €3.1 million figure assumes all children now in private childcare would switch to free services. That was unlikely to happen, Dr Muscat said, with the party using conservative estimates to ensure the system would prove sustainable.

He said the proposal was based on calls by Union Ħaddiema Magħqudin some months ago. Alternattiva Demokratika had also said childcare services should be universally accessible and the Green party yesterday welcomed the PL’s plans.

It called on the PL to follow the proposal with further “progressive” measures, increasing the minimum wage and disability allowances as well as extending parental leave in line with EU recommendations.

In a reaction, the Nationalist Party said it would also provide free childcare services if elected. A spokesman said Prime Minister Lawrence Gonzi had already vowed to include UĦM work and family-related proposals in the party’s electoral manifesto.

“Although the proposal is limited to full-time workers, Dr Muscat said it would eventually be extended, pro rata, to parents in part-time work. He argued that it made little sense to make it means-tested since those who had higher-end jobs would have to contribute more in tax revenue.

Describing the proposal as “courageous but necessary”, Dr Muscat said Malta’s female workforce participation rate of 44 per cent remained unsatisfactory.