Are you a childcare service provider, investor, or developer?
Are you a childcare service provider, investor, or developer?
The Minster of Education now has the final say as to whether the location in which you would like to develop or open an Early Child Education service is suitable.
As of 1st February 2023, required to establish a new childcare centre you will need to provide a business case to the minister covering off seven criteria that ministerial approvals will be assessed against. Applicants will be required to satisfy the minister of education that the criteria has been met before submitting an application to the Ministry of Education. The decision as to whether a childcare centre can be established will ultimately lie with the Secretary for Education who will assess the applicant, the individuals involved to ensure they are of a “fit and proper status” and the financial viability of the proposed service. Essentially it will be the Minister who will make the ultimate decision following advice from the Secretary of Education as to whether to approve an application for a new centre.
The assessment criteria include the financial position of the applicant, the suitability of the applicant, the capability, earlier licensing history, the attributes of the area and finally, whether the application aligns to the contents of the National Statement.
In addition to the above, the applicant is able to provide any information that they think is relevant to an application that is not covered in the considerations as outlined. This will be specific to the applicant and the proposed service. The premise is that the Minister of Education would like to have more control over the management of the early child education network. Any one intending to establish a new licensed childhood service would first need to apply for and be granted network approval.
Even if you already operate a licensed early children service, you will be required to obtain network approval if there were a situation which would necessitate a probationary licence application. For example, permanent relocation of your childcare centre, a complete rebuild of the current service or opening additional services.
Pursuant to the Early Learning Action Plan 2019-2029, the Government set certain objectives for early learning services. The idea is that each new service is to be part of a planned, diverse and coherent education ecosystem that is “sustainable and meets the needs of communities across New Zealand”.
Some services may be excluded from the Network Management Programme and as such, may not require applications. The Government are treating the growth and supply of early childhood services provided in Te Reo Maori as a priority and a responsibility under the Te Kuiti O Waitangi Treaty of Waitangi. If your service is a service that can demonstrate a commitment to using revitalising and protecting Te Reo Maori, then they will be excluded from the requirements to seek Network Management approval. However, we advise that individuals or organisations considering setting up a new licenced early childhood service to contact us in the early planning stages, whether it be development or seeking a licence to open a new early childhood education centre.
While applicants may be granted up to three years from the time of network approval to the date they apply for a new licence, network approval does not guarantee a licence will be granted to operate an early childhood service. Developers also struggling with the usual resource consent and building issues, delays in construction may fail to meet this three year timeframe from approval to application of the licence. This is clearly a significant change to those in the business of creating and developing childhood care centres and for those that have a passion for delivering early childhood education business services.
The Ministry of Education has become the default gatekeeper that will have the right to approve new centres based on demand and supply. This may be good for those contemplating selling an early childhood care centre in the future as existing centres will be able to optimise capacity, increase and add to a existing site, though conversely this policy may be a big disincentive for investors who spent years of hard work specialising in developing early education centres in New Zealand.
At Turner Hopkins we have the experience and expertise to help you through all of your early childhood education centre matters, including assisting with network approvals, sale and purchase of existing childcare centres and development of sites in terms of property and construction. If you are considering developing, buying or selling an early childcare centre, feel free to get in touch with one of our experts today.