Minister denies subsidy rumour

Press, 31 May 1982, Page 5

Minister denies subsidy rumour

PA Wellington The Minister- of. Social Welfare' (Mr Young), says there is no truth in a statement by Labour’s Mr G. W. Palmer, that the Government is considering reducing child care subsidies for needy parents. Mr Young said that a decision on the administration of child care centres and early childhood education was expected within the next month after a State Services Commission report.

But, he said, the whole area of funding of child care was a completely separate issue which is considered in relation to other new policy proposals and commitments on Government expenditure. Mr Palmer. Labour’s

spokesman on social welfare, had said that the subsidies were to be reduced as part of the Government's over-all cost-cutting exercise.

Mr Young said that at no stage had the possibility of reducing the child care sub-' sidy programme been considered. “even during the 3 per cent cut exercise.’’ He described Mr Palmer's statements as “irresponsible."

Mr Palmer later said that Opposition members had been approached by “concerned people who had heard a rumour to this effect.” “Discussions with the Child Care Association revealed that the association had heard from a reliable source, that cuts to the programme were under-Jiconsideration.” he said. £'