ECE Network Planning are you ready? By Logan Whitelaw From 1 February 2023, the control of where a new ECE service can establish lies with the Minister of Education. The biggest change to ECE supply in a generation is fast approaching – are you ready? From 1 February 2023, the control of where a new ECE service can establish lies with the Minister of Education. This is a significant change that adds layers of complexity, uncertainty and cost for anyone person or organisation wanting to open a new centre. With such a big change, we thought we’d answer a few of the key questions that we’re being asked. Why is Network Planning being introduced? The New Zealand early learning sector has enjoyed freedom with choosing locations to establish new services. Providers have been able to select locations based on community needs, parental demand, land availability, and appropriate Council zonings. 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 services. What are the changes? From 1 February 2023, and person or organisation seeking to establish an ECE service will need to apply for and obtain a network planning pre-approval. The grant of a pre-approval is required before that person or organisation can apply to the Secretary for Education to be granted a probationary licence to operate a service. Section 17 of the Education and Training Act, and the subsequent amendments to the Act, establish a ‘Planned Network Approach.’ In simple terms, it’s the introduction of a new pre-approval 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 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); and any statement issued under section 17D that is relevant to the application. What is Section 17D? Section 17D is all about the Minister (through the Ministry) creating a National Statement that will provide information on the strategic priorities for network approvals. 01. The Minister may, for the purpose of providing potential applicants for approval under section 17 with information about the network of licensed early childhood services, issue 1 or more statements that set out information relating to the network, at either a national or regional level, including: the Government’s strategic priorities for the establishment of licensed early childhood services; and information about the supply, forecast growth, demand, and need for licensed early childhood services; and any other information that the Minister considers relevant to applications for approval under section 17. 02. If a proposed statement relates to the Government’s strategic priorities referred to in subsection (1)(a), the Minister must consult the licensed early childhood services sector and Māori before issuing the statement. This National Statement was released on 24 November 2022 and can be found here, March 2023 { 28 }
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