This 1988 report by provincial/territorial officials on the federal Child Care Act (Bill C-144) highlights three areas of concern: its overall rigidity in terms of funding ceilings, space projections, and standards; the lack of provision for funding beyond year seven; and the unprecedented powers afforded the federal Minister of Finance. In part two, the report also points out problems with the negotiations process, including a lack of consultation and failure of the federal government to provide opportunity for input to Bill-C144.  The last two sections comment on problems with the cost-sharing package being offered, as well as the importance of a well-delineated and understood CAP/Child Care interface.