Not even Auckland City Council can make Pay Parity economic

10 December 2022

The Kauri Kids situation shows that even with Auckland City Council resources on your side, running an economic early learning centre is beyond many providers.

Kauri Kids’ future is being reviewed as part of a Council cost-cutting review, with a decision set for Wednesday 14 December.

“Everyone in early learning’s thoughts are with the children whose early learning is set to be disrupted, and their parents who may have to change routine or stay home from work while they find new care. This is the kind of low-cost or free early learning that’s absolutely needed in our communities, seeing its future up in the air is tragic,” said Simon Laube, ECC CEO.

“We understand Kauri Kids opted into Extended Pay Parity, the government’s latest offer to centres to help pay their teachers fairly, which increases teacher salaries significantly but doesn’t provide sufficient government funding to pay for the increase.”

“Providers like Kauri Kids benefit from the Council owning the property, avoiding costly interest repayments and high rents. If Auckland City Council can’t make Extended Pay Parity work, how is your average small private owner or community group supposed to?” said Laube.

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