Why pay extra for a sector that on average underperforms, he asked.
The National Day Nurseries Association, which mainly represents private and voluntary providers, says extra state-sector places have already put some private nurseries out of business.
ECONOMIST: What counts as heresy in schools is normal in nurseries
NDNA, to get most of the extra capacity from the private sector possibly at reduced prices for bulk buying than build it from scratch.
ECONOMIST: What counts as heresy in schools is normal in nurseries
It said the revised offer did "not properly take into account the extra money coming into the sector" from 2008, when students in all three years will be paying the "top-up" fees to be introduced from this autumn.
BBC: NEWS | UK | Education | Lecturers reject latest pay offer
Extra funding will go to voluntary sector organisations that might also deal with queries.
Extra job cuts in the public sector could also boost unemployment.
For some, that is another reason to take this first estimate with an extra dose of salt: service sector output is especially hard to measure accurately, even without all these special factors being thrown into the mix.
But Lord McNally said the Ministry of Justice is "confident" that its reforms will not mean people in Wales having further to travel to access legal aid services and that the Welsh government has been given extra funding to support the advice sector as it adapts to the system of funding.
BBC: Legal aid cuts hit 60 advice jobs and 'vulnerable' in Wales
American officials point out that the rise in arrests is partly because the Tucson sector was reinforced with 200 extra officers last year.
Thirdly, by buying in more capacity from the independent sector - in fact an extra 250, 000 operations which will help to cut waiting times for patients.
BBC: NEWS | UK | UK Politics | In full: Blair on his NHS pledges
Its phones are better looking than many in this sector - but you do pay extra for that.
Subsidies are more generous in countries such as Portugal, which is keen on building a marine-power sector of its own and offers extra cash to less mature technologies.
ECONOMIST: The government wants to build up a marine-energy industry
Airport directors, pilots and others in the aviation sector have argued that stripping away an extra layer of safety during the most critical stages of flight will elevate risks and at the very least slow years of progress that made the U.S. aviation network the safest in the world.
The prospect of extra, profitable, non-life and third-sector business could make all the difference.
The latest ONS figures show that between December 2010 and March 2011 an extra 104, 000 jobs were created in the private sector, taking the total to 23.08 million.
It is unashamedly populist: the president has proposed a real budget increase of around 12%, with much of the extra money to go to the already-swollen public sector, to national security, and to subsidies on basic foodstuffs.
"While any additional funding for education is welcome, it is only because of public anger against proposed cuts to the sector that ministers have been forced to find extra money they previously told us they did not have, " he said.
So the private sector, by increasing the total number of places available, can ease the mad scramble for the best schools in the state sector (bureaucrats, by contrast, dislike paying for extra places in popular schools if there are vacancies in bad ones).
ECONOMIST: Education vouchers: Free to choose, and learn | The
The government has been unable to find a suitable domestic buyer, and foreign companies have shied away because of the extra scrutiny and criticism they often receive in South Korea's financial sector.
Audits commissioned by the Spanish government recently showed the sector is likely to need 60 billion to 70 billion euros in extra cash to stay solvent.
Even if governments manage to put a global price on carbon, he says, the private sector will not necessarily trust them to maintain it, so may need extra incentives to invest.
Design, in close liaison with the Divisions in the Sector and Field Offices as may be necessary, regular programme activities and extra budgetary projects for building human and institutional capacities on policy formulation and monitoring through the use of science and technology indicators and programmes to foster inter-regional cooperation in close cooperation with the UNESCO Institute for Statistics (UIS).
UNESCO: Vacancy : Senior Programme Specialist (24/5/2011) (SC 433 - (P5))
Previously, Prospect had warned that the cuts would put extra pressure on the criminal justice system and leave large areas of England and Wales without public sector forensic cover.
But extra borrowing along these lines could make it harder to meet the second fiscal rule, which says that Public Sector Net Debt must be falling in 2015-16.
With barely enough cash in its coffers to pay pensions and public-sector salaries at the end of August, the finance ministry may raise short-term funds by selling extra treasury bills to the banks, squeezing cash-strapped local companies even harder.
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