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Surrounded by little children waving Canadian flags, Paul Martin announced that a Liberal government would extend its child-care program over another five years, and add $6-billion to its previous promises.

In last year's election, Mr. Martin committed to invest $5-billion over five years for child care. His government then signed agreements with all 10 provinces to honor the pledge through 2010.

His announcement Tuesday would give the provinces and territories $1.2 billion each year for another five years to 2015.

It's the first major Liberal promise of the eight-day-old campaign for the Jan. 23 election and it comes just one day after Conservative Leader Stephen Harper outlined a very different approach to child care in Canada.

Mr. Martin told a crowd of restless children, child-care workers and his federal candidates at a YMCA child-care centre that he wants to create a "permanent nation-wide system of early learning and child care."

"This program is here to stay," he said, comparing it to medicare and calling it a "lasting addition to our social foundation."

He also said the money gives the provinces the stability to expand their programs and investments.

With his wife, Sheila, in the audience, Mr. Martin couldn't resist mentioning that he wouldn't mind having grandchildren.

"I've got three sons and one of them better make me a grandfather soon," he said.

Mr. Harper announced his child-care platform Monday, once again grabbing the headlines and the agenda of this week-old campaign.

The Conservatives would give families $1,200 a year for every pre-school child to spend on whatever kind of daycare they want.

The Tory policy would kill the agreements the 10 provinces have already made with the federal government.

"During this campaign, I have frequently said that it matters who Canadians choose to lead the country, and it matters what they believe," said Mr. Martin.

"Few issues bring that into clearer focus than child care," he said. "Mr. Harper says he will oppose government-supported child-care. Well I disagree with him. I favour government supported child-care."

"He's not talking about spending that money on child-care," Mr. Martin said later in the "Fabulous Fours" room of the day care, where the four-year-olds usually play.

"It is not going into child-care. The only money that he is putting into child-care is a $1.2-billion or something that is going into the building of empty boxes, and understand that isn't child-care ...

No child-care worker, no early learning, nothing that focuses on the development aspects of the child."

The duelling announcements by Martin and Harper set up an old-style, left-right policy choice for the electorate between government funding for a national system of regulated daycare programs and more cash back from the government to parents.

The Conservative plan, outlined Monday by Mr. Harper at a children's activity centre in Ottawa, would cost $10.9-billion over five years. That would include $1.4-billion to honour the Liberal government's agreements with the provinces until the end of the 2006-07 fiscal year and $1.25-billion in grants or tax credits to encourage businesses and community groups to create 125,000 new daycare spots over five years.

Under the Liberal plan Mr. Martin announced Tuesday, federal funds earmarked for municipal infrastructure funds could be used to build day-care spaces.

The Conservative plan announced Monday would benefit about two million children under six, but because some is taxed back, would cost about $1.6-billion a year, or $8.25-billion over five years, Conservative campaign aides said.

"Parents can spend that money however they wish," Mr. Harper said. "You can choose the child-care option that best suits your family's need."

The Conservatives' $1,200 allowance would be taxable, so upper-income families could lose almost half of it to taxes in some provinces. But the allowance would go to the spouse with the lower income, so families with one stay-at-home parent with no other income would get to keep it all.

The new allowance would come on top of current child benefits, including the income-tax deduction for child-care expenses. However, it would roll in an existing $20 a month benefit for low-income families, so that they actually would get only an extra $80 a month.

NDP Leader Jack Layton dismissed Mr. Harper's child-care proposal, saying Monday that it would fail.

"This is not a child-care plan, this is not going to create any child-care spaces. It's a tax change. The leader should know the difference," Mr. Layton said. "This is the kind of plan that Mike Harris brought forward and it didn't create any child-care spaces," he said, referring to the former Ontario Tory premier.

The Liberal government's Social Development Minister, Ken Dryden, said the problem in Canada is not a shortage of child-care spots, but a shortage of good-quality care.

"Does it make you able to afford better child-care? Not really," he said of the Tory proposal. "It gives you three hours of babysitting a week."

With a report from Gloria Galloway in Ottawa