Government today unveiled the packages of $162 million for the implementation of 20 hours free from July 2007, and $30 million over four years to enable the ECE sector to progress towards its goal of all teachers being qualified and registered by 2012.

Commenting on the 2 – 13.2 percent increase in funding rates for ECE centres, she said, "it will enable employers to meet the costs of pay parity for qualified registered teachers.

"We know that some centres struggle to find qualified teachers and thus to enter the higher government subsidy bands. But there is a strong trend for more ECE staff to become qualified, so this problem will ease. Qualified teachers make a significant difference to educational outcomes for children," she said.

"Educational research that shows that taking part in good quality early childhood education benefits children. The knowledge, skills and attitudes developed in early years equip these children to be successful learners and participate constructively in society. This continues throughout schooling and into adulthood.

"The initiatives to increase the quality of teaching in the sector, and to make early childhood education affordable for more parents, will help ensure we get the maximum number of New Zealand children off to the best start in life" Nancy Bell said.

The 20 hours free initiative will be introduced with a limit of six hours a day subsidy for each child.

"Until we see what the demand is like, the cap of six hours per day is a sensible way to introduce this major initiative. However, the government will need to ensure that parents understand the six hour limit and the other details of the policy.

"Our members are counting on the government to undertake a major communications exercise with families to ensure that parents don’t turn up next year with unrealistic expectations about what’s on offer," Nancy Bell said.