Why the ECE free lunches contract is under scrutiny
OPINION/ANALYSIS.
June 18, 2025.
Associate Minister of Education David Seymour was in talks with KidsCan about potential funding for the organisation’s mahi supplying early childhood education centres with free food months before the Government announced plans to expand its healthy lunches programme to ECE services, which KidsCan was later given $8 million in public money to spearhead.
Documents obtained by the Office of Early Childhood Education from the Ministry show that KidsCan also advised the Ministry on the alternative operating model for Ka Ora Ka Ako Healthy School lunches programmes.
The OECE’s chief advisor Dr Sarah Alexander says the revelations spark questions about the Ministry’s procurement process of the contract, which need to be investigated.
The Auditor-General is looking into how KidsCan was selected to provide the Early Childhood Food Programme, as part of a wider inquiry into associate education minister David Seymour’s cut price school lunch programme.
It will also investigate the way the funding – a $4 million conditional grant – was awarded. (KidsCan will receive a second $4 million next year, as long as it meets the requirements of the funding agreement.)
KidsCan is a charitable trust that supplies food, jackets, shoes and health products to children in poverty through their schools and ECE services.
KidsCan was also one of several organisations that provided advice on the cut-price Ka Ora, Ka Ako programme.
So the Ministry asked Audit New Zealand for its advice “given the potential sensitivity”.
According to the Ministry’s general manager for ākonga and community outcomes Lynda Pura-Watson, Audit New Zealand told the Ministry that there was no apparent conflict of interest because the alternate school lunch provision model was considered a “separate activity” to the early childhood food programme.
Ministry staff involved in the procurement were also asked to declare any conflicts of interest they had with KidsCan. No conflicts were declared, Pura-Watson said.
But, Alexander questioned why the procurement process was shrouded in secrecy.
Her concerns did not lie with KidsCan. “Kidscan is known to do good work in communities,” she said.
Instead, Alexander was concerned “that the Ministry of Education was not transparent on its process for selection of a provider(s) and the conditions that the provider/s would be required to meet in return for funding”.
“The potential conflict of interest due to money being diverted from the school programme to the ECE programme, and granted to Kidscan, needs to be investigated,” Alexander said.
In a report to Seymour, obtained by the OECE, the Ministry acknowledged there was “risk” in how appropriate the public would consider the procurement approach. The Ministry said its communications content was designed to mitigate this risk.
The OECE requested an interview with Seymour about the ECE lunches programme. His press secretary said the Minister was not available, so the OECE sent detailed written questions, asking how the procurement process unfolded. Seymour’s office did not respond.
KidsCan founder Julie Chapman said the organisation could not comment as the Auditor-General’s inquiry was continuing.
How it unfolded – A timeline of key dates in the procurement process
February 28, 2024: KidsCan representatives meet with associate education minister David Seymour at Parliament
May 8, 2024: Seymour publicly announces that money saved from his cut price school lunches programmes will be put towards feeding 10,000 children in ECE
May 30, 2024: Finance Minister Nicola Willis releases the annual Government Budget, confirming that $8 million will be set aside over two years (2025 and 2026) to pay for lunches in ECE services
July 1, 2024: Sela Finau, the Ministry’s general manager for learner success and Tiriti policy contacts KidsCan founder Julie Chapman to ask how the KidsCan funding model works. She writes in the email that the Ministry is “looking at the funding structure of the Budget 2024 initiative to expand the provision of food to ECE”. Finau references discussions between KidsCan and Seymour earlier that year, about KidsCan’s funding model.
July 8, 2024: Chapman responds saying the average cost for fresh ingredients and distribution (freight) is $2 per child per day. “The $4M at $2 per child would support 10,000 children under our model,” she says.
September 3, 2024: KidsCan makes a formal application to the ECE Childhood Food Programme.
September 12, 2024: Ministry and KidsCan staffers meet via Microsoft teams to discuss the ECE Funding Agreement. They talk about reporting requirements, communications plans and how the payments will be managed, notes from the hui show.
September 19, 2024: KidsCan and the Ministry discuss “aligning” communications on a call.
October, 3, 2024: Ministry commercial manager Sarah Best sends KidsCan’s research, impact and culture manager its final draft of the funding agreement
October 8, 2024: The Ministry sends Seymour a report outlining the communications plan for the programme. The document says that the communications content was “designed to mitigate the risk [of]… public and commercial perception regarding the appropriateness of the procurement approach used”.
October 9, 2024: KidsCan’s research, impact and culture manager replies to Best’s October 3 email, saying the organisation’s legal team has reviewed the contract and KidsCan has made some changes. The revised contract is attached to the email.
October 23, 2024: The Ministry sends KidsCan the revised, signed funding agreement, which KidsCan co-signs and returns that day.
October 24, 2024: Seymour announces that KidsCan will be the provider of the ECE Healthy School Lunches programme
Early 2025: The Healthy School Lunches programme launches in ECE services
