A Labour government will offer free childcare to all working parents with children aged three years and younger, Labour leader Joseph Muscat said this morning.

Addressing a news conference, Dr Muscat said this measure, which was estimated to cost €3.1 million in the first year, would create 3,000 child care places over a five year period and 500 new carer jobs. The calculation was on the high side as it was including all the children who were currently in private child care.

It was aimed to increase the female participation by 2,500 and would be a cash generating measure by the fifth year as more taxes were paid by the people joining the employment market.

The measure, based on a proposal by the Union Haddiema Maghqudin, would be implemented in partnership with the private sector.

Parents who already had their children in childcare could keep them where they were and continue to benefit from the existing benefits but could also switch to the free service if they so wanted.

Existing government child care facilities would continue to be run as at present, Dr Muscat said, adding that the service would start to be offered in 2014.

Dr Muscat described the proposal as courageous but necessary as it would significantly increase the number of working women and would help solve Malta’s pension issue.

He reiterated the PL’s commitment not to increase the pensionable age and said the plan was to gradually open up the measure to also make it available to part timers pro rata.

Discussions were still needed to iron out the details but he was convinced there would be significant interest by the private sector, the Labour leader said.

In a reply, the PN said that on Tuesday, the Prime Minister had already said it was accepting the UHM's proposals aimed at increasing participation in the Labour market.

All Dr Muscat did today was repeat what Prime Minister Lawrence Gonzi said three days ago, the PN said.