Comprehensive review of childcare services provided by church agencies in response to submissions by the New Zealand Council of Christian Social Services to the Minister of Social Welfare and the Director-General of Social Welfare in conjunction with representatives of the Council. Review argues that if the Churches opted out of childcare, NZ’s social welfare system would be very much the poorer for it and therefore Churches should be actively encouraged to continue their childcare work. This is due to the dignity given to parents with the right to choose between state or voluntary agencies, there being more flexibility and variety of services in private children’s homes, the greater staff stability in voluntary agencies, and the ability to provide an adequate standard of care at a lower cost (average of $57 a week in a church home vs $195 in a departmental home). By 1977 the contribution of voluntary agencies to children in care had dropped from 50% twenty years earlier to 20% now. This trend appears directly related to the financial difficulties faced by voluntary agencies and the measure of financial support provided by the state. For example, the capital subsidy available to Churches from the Department of Health is more generous than the capital subsidy for children’s homes. One option suggested was to raise the capital subsidy from $12.60 to $28.50 (half the average cost of one child), possibly over a three year period for financial reasons. Another was for the State to subside the salaries of approved staff in children’s homes. Also proposes the establishment of District Councils of Social Service that represent all social welfare agencies in the area in order to coordinate and streamline services.