Clark dashes hopes of full start to parent leave

By VERNON SMALL deputy political editor

Working mothers expecting 12 weeks' paid parental leave next year look likely to be disappointed.

Prime Minister Helen Clark yesterday confirmed some form of paid parental leave would be in place by April 1.

But she said the Government did not have the money to move to the full implementation of 12 weeks straight away.

"You can't go from nothing to nirvana in one leap," she said.

Instead, the scheme could be introduced over two, three or four years.

Her comments, made during a visit to South Korea, have angered the Alliance, which believes she has breached the "no surprises" understanding between the Coalition partners.

Finance Minister Michael Cullen yesterday backed his leader, saying in Parliament that phasing in the scheme had always been an option.

The May 24 Budget will contain an unquantified provision for the scheme, which is likely to cost between $40 million and $60 million in a full year.

Details are still under negotiation, and the Alliance is concerned Helen Clark has ruled out one option - moving to 12 weeks immediately - before talks are complete.

Women's Affairs Minister Laila Harre, an Alliance MP, would not comment yesterday, but has said the April 1, 2002, start date had been settled with Dr Cullen.

Other details, including the amount of money available, the number of weeks covered, how the weekly payment will be calculated and a possible cap on weekly payments would not be settled until August.

The Alliance has campaigned for 12 weeks' paid leave at 80 per cent of a mother's income, paid through ACC with a cap at $720, equal to 80 per cent of the average male wage. But $600 a week cap seems more likely.

Paid leave for fathers is considered a lower priority, but it is possible that two weeks' leave for them will be part of the scheme.

Once the amount to be spent on the scheme is settled the Alliance and Labour will negotiate a mix of entitlements, including the number of weeks, within that cap.

The overall budget will also depend on the fate of the existing parental tax credit, which gives low or middle-income working families a maximum of $150 a week for eight weeks.

Sources said the Coalition wanted to scrap the tax credit, but would retain a residual scheme or a grandparenting arrangement so that no one would miss out because of the change.

The complete abolition of the parental tax credit could reduce by $20 million a year the amount of new money needed to finance the paid parental leave scheme.

The Alliance feels Labour is dragging its heels on paid parental leave, fearing a crucial branding issue will be watered down.

Labour leaders believe the Alliance is pressing its case too hard in public, leading to Helen Clark's move to pour cold water on expectations of an immediate 12-week entitlement.

But both parties were yesterday stepping back from a public scrap for similar reasons.

The Alliance is concerned that a crucial branding issue could be seen as a defeat if the Coalition does not introduce 12 weeks' leave.

Senior Labour figures are keen for the Alliance to get due credit to improve its election chances because they see Jim Anderton's party as an easier partner than the Greens.

Budget 2001

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