Childcare shortage in Central Otago.

Photo: Daiga Ellaby.

“Cities have the capability of providing something for everybody, only because, and only when, they are created by everybody.”                              Jane Jacobs.

Introduction.

Access to early childhood education has been significantly impacted by the surge in housing development in rapidly expanding towns such as Cromwell, Wanaka, Hawea, Albert Town, Luggate, and Queenstown.

This blog post will explore the childcare shortage crisis in Central Otago and the debate around regulations for Early Childhood Education (ECE). We will also take a look at how short-term planned housing development can affect young working families in their quest for childcare spots. 

How does the lack of childcare accessibility impact families? 

Families confronting significant economic hurdles, such as mortgage repayments or the rising cost of living, often require both parents to work. In today's environment, having one parent stay at home has become a luxury. Recognizing that childcare waitlists in Central Otago can extend beyond a year adds additional anxiety for young working families.

In 2022, the Ministry of Women published a series of 5 reports titled "Access to Childcare." Report 4 examines how childcare access issues impact mothers' work.

Here are 6 facts on the impact of childcare access challenges on mothers.

(Read the full report here.)

  • Disadvantaged mothers, particularly from low-income households, face persistent issues with childcare access.

  • Many mothers unable to secure childcare still desire or require employment, often resorting to precarious childcare arrangements.

  • There's a direct correlation between childcare hours and mothers' work hours, with those lacking childcare working the fewest hours.

  • The total annual value of wages lost by mothers with a child under 3 due to lack of childcare access is estimated to be $116 million in 2020 dollars. 

  • On average, affected mothers would work 24 hours per week at 9 months and 27 hours per week at 2 years if childcare access wasn't an issue.

  • Māori and Pasifika women experience significant wage losses due to childcare access issues, with Māori mothers bearing a disproportionate share of the cost.

Statistics on early childhood education centre closures in New Zealand.

By June 2022, 70 early learning centres closed. Between 1 January 2023 and 30 June 2023, 113 licences were cancelled in total.

According to the Early Childhood Council, with an average enrollment of about 41 children per centre, over 3,700 children and families have lost their chosen early learning options.

The closure rate, averaging 2.16 centres per week, signals a distressing trend, prompting a call for urgent action from the Ministry of Education to address the crisis.

Simon Laube, CEO of the Early Childhood Council, expressed concern over the diminishing diversity of choice in New Zealand's early learning landscape.

“These closures are deeply worrying and show a worsening trend – we do not have a thriving early learning sector.”  Said Laube.

Early childhood regulations debate in New Zealand.

The debate over childcare regulations revolves around the requirement for obtaining a “network approval provision” and  the Early childhood education qualifications, specifically the possible future law requirement of having a fully registered (category 1 or 2) teacher at the premises at all times. 

The present Minister of Education David Seymour aims to eliminate the "network approval provisions" and stop the possible future law for Early Childhood Education (ECE) centres to have a highly-trained teacher in charge at the premises at all times. 

What is the Network Management approval provision for Early Childhood Education (ECE)?

The Network Management approval is a necessary requirement to obtain an early childhood education licence. Applicants need to apply for a “network approval provision" from the Ministry of Education, which assesses the demand for childcare services in the desired location and the qualifications of the applicant. 

The Early Childhood Network Approval got in place as a way of regulating the market for Early Childhood Education (ECE). Many ECE centres had to close down due to not being able to keep up with the competition, creating some unfair situations for businesses. This may not have been a big issue for cities, but small towns and rural areas were deeply affected. 

After a couple of years in practice, Network Management introduces new challenges for the sector regarding the amount of time and effort required to obtain approval. This discourages many potential applicants and, once again, leaves small towns and rural areas underserved with childcare services.


Projected housing developments near Wanaka, Cromwell, and Queenstown.

New housing development subdivisions are sprouting up all around Central Otago towns. A few examples: The Wooing Tree development in Cromwell will introduce 390 new homes to the area, while a future residential development may potentially transform the quarry on the Luggate-Cromwell road into an additional 450 houses. In Hawea, the Longview subdivision plans to accommodate 2,000 residential lots. Three Parks development in Wanaka is expected to have over 1000 houses. Additionally, Lake McKay in Luggate is set to add 83 houses to the town. 

Many of these homes are anticipated to be occupied by families, exacerbating the demand for childcare centres in areas already struggling with a shortage of childcare services.  Even if one centre opens in each location, it still will not be enough to meet the current demand. Having more accommodation available is a huge relief considering the deep housing crisis that Central Otago is facing. The challenge is how to satisfy the demand for housing while also providing future residents with access to basic services that will form the foundation of stronger communities.

The problem with short-term planned residential subdivisions development. 

Short-term planned residential subdivisions are a great example of the short-sightedness motion inherent in neoliberalism. In the rush to erect houses and obtain necessary permits, the focus tends to be solely on immediate gains, neglecting the broader implications for the community and environment. The emphasis on quick profits overshadow considerations of long-term sustainability and quality of life for residents. While houses are needed and may be constructed, the infrastructure, amenities, and social fabric required for a thriving community may be overlooked or inadequately addressed. This shortsighted approach risks creating neighbourhoods that lack resilience, cohesion, and the capacity to adapt to future challenges. Ultimately, it underscores the need for a more balanced and forward-thinking approach that prioritises the well-being of both present and future generations.

It's not only about having shelter; it's about creating an environment where we can thrive, connect, grow, work, and provide our families with a high quality of life. In neoliberal conditions, profit often takes precedence, particularly in the housing market, given its close ties to the financial sector. To safeguard our communities, we must advocate for a more sustainable and ethical approach to residential development, where enhancing quality of life becomes the priority.


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5 Ways to Find Accommodation in Central Otago. A guide to surviving the housing crisis.