Public Consultation Highlights Need for Regulatory Overhaul in Early Childhood Education

The review was prompted by concerns from parents about the lack of affordable early childhood education options and from ECE providers regarding the impact of regulations on their ability to serve communities effectively.

Regulation Minister David Seymour has reported a strong response to the Ministry for Regulation's public consultation on the early childhood education (ECE) regulatory review, signaling a clear need for action to reduce the regulatory burden on the sector.

"Over 2,320 submissions have been received from parents, teachers, center owners, child advocacy groups, unions, research bodies, and others connected to the sector," said Minister Seymour. "In addition to written feedback, various face-to-face meetings were held across the country."

The review was prompted by concerns from parents about the lack of affordable early childhood education options and from ECE providers regarding the impact of regulations on their ability to serve communities effectively.

The Ministry will now analyze the feedback and prepare a report for Minister Seymour. Following this, a Cabinet paper will be prepared to seek decisions on the review's recommendations and proposed actions, with the process expected to be completed by the end of the year.

Emerging themes from face-to-face engagements indicate that many parents desire a wider variety of early childhood education options, easier access, and more affordable choices. Some parents also expressed a preference for smaller child-to-teacher ratios.

ECE sector professionals have voiced their frustration with the amount of compliance-based paperwork that detracts from focusing on children’s learning and care. Service providers have raised concerns about the regulatory framework, its inconsistent application, and confusion between what constitutes a requirement versus guidance. Many providers acknowledged that they are struggling to meet community demand.

"As the first of many sector reviews, this consultation process demonstrates the Ministry's commitment to hearing directly from those affected and providing practical solutions," Seymour said.

Highlighting New Zealand's increasing regulatory environment, Seymour noted that the country has slipped from being the second least regulated economy in the OECD in 1998 to ranking 20th this year. He cited a 2015 NZIER study estimating that the cost for businesses to comply with tax and regulatory requirements is around $5 billion annually, or about 1.3% of GDP, excluding tax regulation.

"It's time for a spring clean. Through these reviews, we can eliminate unnecessary, costly, and restrictive regulations that hinder the success of New Zealanders," Seymour concluded.