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With the introduction of the Universal Child Care Plan, the Government of Canada announced in Budget 2006 that it would phase out the ELCC agreements with provinces and territories at the end of March 2007. This was consistent with the provisions of the ELCC agreements with provinces and territories, which allowed for their termination upon one year's notice by either party. To support the transition, the Government provided $650 million in 2006-07 to provincial and territorial governments; these funds were distributed on an equal per capita basis.
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