National does a flip-flop on paid parental leave
National Party had the first taste of confusion and disorientation that often comes naturally along with the job of being in opposition in parliament when it did a flip-flop on its original stand on the extension of paid parental leave by four weeks.
Cabinet had on Monday, November 6, extended the paid parental leave from the current 18 weeks to 22 weeks from July 1, 2018, and to 26 weeks from 2020.
“Parents can look forward to 26 weeks paid parental leave by July 2020 as part of the Labour-led government’s promise to better support working families with new-born and young children,” Prime Minister Jacinda Ardern had said.
The government will be introducing legislation to Parliament to give effect to this week.
“This is a key part of our Families Package and one all three parties of government have been proud to support because it’s the right thing to do.
“We want children to have the best start in life. Evidence shows having a parent at home as long as possible to care for a child provides a huge benefit for that child’s development,” Ms Ardern further added.
Today, Bill English announced on TVNZ 1's Breakfast programme that National Party would be supporting this legislation of extending paid parental leave.
This is after the National-led government had vetoed an earlier Bill in June 2016 for financial reasons.
However, in the lead up to the general election earlier this year National Party had declared intentions to extend paid parental leave by four weeks to 22 weeks if elected back to power.
Labour Party was always committed to extending paid parental leave to 26 weeks.
The government is confident that the net cost of this extension in paid parental leave would be of $325 million over the four year forecast period and is budgeted within Labour’s original fiscal plan.
Businesses sceptical over the extension of paid parental leave
Business New Zealand, while welcoming the positive impact of this announcement on parents and children, are sceptical about possible impacts on businesses, especially small and medium-sized businesses.
Business New Zealand chief executive Kirk Hope said the extension could present difficulties for some firms.
The challenge for smaller businesses will be in ensuring they have sufficient cover over this increased period, plus the added risk of workers returning back to work.
Some experts and small business owners are sighting anecdotal evidence where a large number of parents on paid parental leave fail to return back to work, thus exceeding costs and risk on the businesses.
Prime Minister Jacinda Ardern had herself acknowledged that the extension would have an impact on businesses as they tried to replace staff.
"I have taken on board that these issues provide, particularly for our small and medium-sized enterprises, some challenge, but I hope by setting out the timeline that we have they will be able to plan for that,” Ms Ardern said.
National Party had the first taste of confusion and disorientation that often comes naturally along with the job of being in opposition in parliament when it did a flip-flop on its original stand on the extension of paid parental leave by four weeks.
Cabinet had on Monday, November 6, extended the...
National Party had the first taste of confusion and disorientation that often comes naturally along with the job of being in opposition in parliament when it did a flip-flop on its original stand on the extension of paid parental leave by four weeks.
Cabinet had on Monday, November 6, extended the paid parental leave from the current 18 weeks to 22 weeks from July 1, 2018, and to 26 weeks from 2020.
“Parents can look forward to 26 weeks paid parental leave by July 2020 as part of the Labour-led government’s promise to better support working families with new-born and young children,” Prime Minister Jacinda Ardern had said.
The government will be introducing legislation to Parliament to give effect to this week.
“This is a key part of our Families Package and one all three parties of government have been proud to support because it’s the right thing to do.
“We want children to have the best start in life. Evidence shows having a parent at home as long as possible to care for a child provides a huge benefit for that child’s development,” Ms Ardern further added.
Today, Bill English announced on TVNZ 1's Breakfast programme that National Party would be supporting this legislation of extending paid parental leave.
This is after the National-led government had vetoed an earlier Bill in June 2016 for financial reasons.
However, in the lead up to the general election earlier this year National Party had declared intentions to extend paid parental leave by four weeks to 22 weeks if elected back to power.
Labour Party was always committed to extending paid parental leave to 26 weeks.
The government is confident that the net cost of this extension in paid parental leave would be of $325 million over the four year forecast period and is budgeted within Labour’s original fiscal plan.
Businesses sceptical over the extension of paid parental leave
Business New Zealand, while welcoming the positive impact of this announcement on parents and children, are sceptical about possible impacts on businesses, especially small and medium-sized businesses.
Business New Zealand chief executive Kirk Hope said the extension could present difficulties for some firms.
The challenge for smaller businesses will be in ensuring they have sufficient cover over this increased period, plus the added risk of workers returning back to work.
Some experts and small business owners are sighting anecdotal evidence where a large number of parents on paid parental leave fail to return back to work, thus exceeding costs and risk on the businesses.
Prime Minister Jacinda Ardern had herself acknowledged that the extension would have an impact on businesses as they tried to replace staff.
"I have taken on board that these issues provide, particularly for our small and medium-sized enterprises, some challenge, but I hope by setting out the timeline that we have they will be able to plan for that,” Ms Ardern said.
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