Media Release
PAID PARENTAL LEAVE EXTENSION UNWARRANTED
Thursday, December 12, 2013
The government is reportedly reconsidering its opposition to
extending Paid Parental Leave from 14 to 26 weeks. This comes
despite Treasury advice that there would be "minimal benefit
from increasing the length of parental leave."
Welfare commentator Lindsay Mitchell said last year Treasury
analysed who was using paid parental leave, labour market outcomes,
and child health outcomes. It found that, "...there is not a
strong evidence-based argument to support extending the length of
paid parent leave."
Treasury's report states, "...the majority of mothers return
to work when the baby is six months old...". Marginal
benefits to labour market participation and child health and
well-being would therefore be small. Additionally, it notes, "...the
most vulnerable children are likely born into families where
parents are not eligible for paid parental leave...".
In a discussion about improving income adequacy it found that the
arguments are "weak" as "the current access group are
likely to be middle and high income women with stable employment."
Of the 32,000 paid parental leave recipients in 2011/12, 58
percent were earning over $40,000; 27 percent were earning over
$60,000.
Treasury also noted a possible negative impact for employers,
particularly small to medium enterprises, as their costs are, "...likely
to be more significant as the length of parental leave increases."
This could give rise to greater discrimination against child-bearing
age females in the labour market.
The implementation of 26 weeks Paid Parental Leave will cost $327
million by 2015/16. Unchanged, the cost would be $176 million in
2015/16. An annual increased expenditure of $151 million for "minimal
benefit" seems highly questionable. The benefit to the
government may lie in gaining electoral favour in 2014.
1634 A Notable Date For What?
1 hour ago
3 comments:
So yet again, the hard-working taxpayer will have their money STOLEN to pay for the feckless lazy breeders.
This is pure naked vote-buying.
It will do nothing except trap even more people in poverty.
Shame on you, John Key and Bill English. You might as well join Labour now.
Shame on you, John Key and Bill English. You might as well join Labour now.
Labour wouldn't have 'em because they are too left for Labour
Tuhoe settlement. Flag on the bridge. no cuts ever to unaffordable super. constitutional convention. and now this extension to parental leave. borrowing a billion a week.
Just yet more ways Key is further leftthan Hellen Klark ever was.
It would be National's final surrender if this absurdity happens, although we can expect ANYTHING from Key & co. in their pursue of potential welfare voters.
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