Extra holiday will be fatal for some businesses, IT chief predicts

By RICHARD PAMATATAU


The Government's desire to give workers four weeks' annual leave will cost small IT companies dearly and may send some to the wall, says one industry leader.

Grant Straker, founder and managing director of Auckland's Straker Interactive, said the plan for four weeks' leave was short-sighted, showed the Government was out of touch with business pressure and would send small new businesses under.

The Government was increasing the pressure on business owners with this piece of legislation and it would cost the country jobs, he said.

Straker's business is four years old and makes software and systems for companies using the internet for commerce and business.

It was born in his spare bedroom, and after "four years of very, very hard graft" was showing a good return, said Straker.

Among its New Zealand clients are Fisher and Paykel, Genesis Energy, Housing New Zealand and the Auckland Regional Council.

Overseas, it has lined up companies in Germany, the United Kingdom, France and Italy.

Straker said that if the holiday was in place today, it would cost him 17 weeks' man-time a year, because staff would not be available to work on projects or be billed out as consultants to customers.

David Cunliffe, Associate IT and Communications Minister, said the Government was committed to offering New Zealanders better working conditions and four weeks' annual leave to bring the country into line with many other OECD countries.

"If a company is running that close to the wind that an extra week's leave is going to cost them dearly, maybe they are not doing smart enough business," said Cunliffe.

Straker said all new businesses ran close to the wind, and that was why so many failed

He said Cunliffe's argument showed how out of touch the Government was with business.

"Owners pick up the can in this case."

"We recognise that good staff need to be rewarded, and this year because business was good we were able to offer very good bonuses to the team.

"This legislation removes some of our choice on how we recognise and reward our staff," he said.

Straker also believes that the Government must retain New Zealand House in London as a meeting place that New Zealand businesses can use.

"Taking a potential client into the top floor boardroom goes a long way to impressing them that the business, and the Government is serious," he said.

Straker said that if the Government wanted to see IT-based industry happen in New Zealand it needed to pay attention to basic issues, rather than spending its time on the marketing and hype of the "Knowledge Wave" which was just PR.