Canada's low ranking internationally means the universal child care benefit that was introduced in July 2006 could have a positive gain, if other investments in child care services are not coming out as a cost, because they'll be withdrawn. If you're asking me if it's one or the other--it has to be either/or--then I think international research would say that if you're concerned about human capital, if you're concerned about labour supply, if you're concerned about gender equality, then the child care service route has much more evidence defending it than would sending money directly to parents, particularly if the money is as modest as $100 a month, about $30 of which we tax back. That cannot make the cost of regulated child care services a genuine option, so it doesn't then necessarily help with the labour supply or the gender equality issue. And the human capital issue is much dicier.
On October 3rd, 2006. See this statement in context.