How we got here The New Zealand early learning sector has historically enjoyed freedom when identifying and selecting locations to establish new services. Service providers have been able to select locations based on community needs, parental demand, land availability, and appropriate Council zoning. Provided the locations were suitable from a child health perspective, the Ministry of Education (Ministry) had to refrain from involving itself in locational decision-making. This historical approach has resulted in both positive and negative outcomes for tāmarki, whānau and the early learning sector. On the positive side, there has been an increased supply of services and therefore licence places. This provides parents with more choice and the ability to find a service that meets their specific needs. Additionally, competition in the market drives the need for providers to maintain or increase quality to ensure that they remain appealing to new families. Conversely, some argue that a lack of Ministry intervention in the distribution of the network has created an oversupply of services in parts of the community and undersupply in others. This may result in pressure on centres through increased competition for the same pool of children and teachers, therefore driving down the viability of centres. The change However, from 1 August this year – this will all be academic because, from this date, early learning service providers will no longer have sole discretion over where to establish new centres. Section 17 of the Education and Training Act, and the proposed amendments to the Act, establish a ‘Planned Network Approach.’ In simple terms, it’s the introduction of a new preapproval step that providers will need to pass through before being eligible to submit any licensing application. This requires anyone considering starting a new service to submit a pre-approval application to the Ministry where the appropriateness of the location of the service will be subject to: “(a) a high-level assessment of the relevant attributes of the area to be served, including (without limitation) the demography of the area, the needs of the communities in the area, the needs of the children in the area, and the availability of licensed early childhood services in the area with different offerings (for example, the provision of te reo Māori).” s17(2)(a) Education and Training Act Bill (No 2). The impact The Minister of Education will make a determination on the pre-approval application and, if granted, you will have two years to: ● Secure financing; ● Buy the land; ● Design a centre; ● Obtain resource consent; ● Obtain building consent; ● Construct and fitout the centre; ● Employee teachers; and ● Apply for and obtain your licence. That’s a tight timeline and, as we’ve seen over the last two years, external events beyond your control can slow down consenting and construction. Should the Minister decline your preapproval application, your only appeal is through a judicial review of the decision through the Courts – an expensive, untested and daunting prospect. Get involved To provide guidance to the sector, and to form a base against which to assess pre-approval applications, the Ministry will be producing ‘National and Regional Statements.’ The intent of these statements is to indicate where the Ministry wants to Network Planning: What you need to know By Logan Whitelaw March 2022 { 24 }
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