CTU Media Release

12 April 2012

Veto reveals Government’s real priorities

Finance Minister Bill English threatening a veto on Labour MP Sue Moroney’s Paid Parental Leave Bill before it has even had its First Reading, let alone the chance for Select Committee to consider it, says more about the government’s priorities and principles than government finances says CTU Women’s Council Spokesperson Suzanne McNabb.

Suzanne McNabb says “confirming that they intend to veto this Bill at such an early stage begs the question whether the government is genuinely concerned with the financial impacts, or simply against the principle of Paid Parental Leave?”

“The Bill process through the House and Select Committee gives everyone the opportunity to consider a whole range of options. To pre-emptively announce a veto undermines that process. There are a number of valid options that could help mitigate the financial implications of the Bill - extended parental leave could be legislated to come in gradually for example – but it seems the government is not prepared to give genuine consideration to any of these kinds of options.”

Suzanne McNabb says “the financial impacts are not as clear cut as the government is making out either. There are potentially savings that would offset its costs to the government. For example, parents who are at home on parental leave are likely to take their other young children out of early childhood services, reducing the subsidies the government has to pay.”

CTU Economist Bill Rosenberg says vetoing on the grounds of financial impacts is about choices the government is making, not just about affordability.

“The government has made many choices about expenditure and spending cuts, new revenue and tax cuts since it came to power. There would be more funding available if they hadn’t cut taxes on high incomes for example. Partial privatisations of state owned assets are estimated to cost over $90m a year net in lost revenue, and are likely to have a one-off cost in the order of $100 million, to pay for investment advisors, bankers and other costs to organise the sale. The public private partnership for the new Wiri prison will cost $21 million just to set up – let alone build and run. There will be several million dollars in setting up the school public private partnerships. And what will be the additional cost of the Charter Schools per year?”

“These are decisions that have been made on principle and not just on financial affordability. They are decisions about priorities that a government has to make every day it is in office. It seems that extending paid parental leave is being opposed as much on principle as on financial grounds,” concludes Rosenberg.

ENDS

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