Media release 1 May 2001

Employers pleased at Govt. decision on paid parental leave

The Government is to be congratulated for its decision on paid parental leave, says Business NZ Executive Director Anne Knowles.

News that the Government's paid parental leave scheme is to be funded from taxation rather than an employer levy will be welcomed by employers, Ms Knowles said.

"It is reassuring to know that the Government has listened to the voice of employers on this issue. An employer-funded scheme would have added to the compliance burden on employers and would have impacted negatively on job growth.

"While there are still some concerns about a taxpayer-funded scheme - on the grounds that it adds to the general tax burden and will not help reduce tax levels - it is certainly preferable to an employer-funded scheme," Ms Knowles said.

© Scoop Media