Parental leave set for Budget

The Government is set to introduce paid parental leave, although details of the scheme are still being worked out.

Women's Affairs Minister Laila Harre said yesterday that provision would be made in this year's Budget for the scheme, which she has championed since the Alliance went into coalition with Labour.

Ms Harre originally wanted 12 weeks' leave paid for by a levy on employers, but Labour disagreed with that and said it should come from general taxation.

Ms Harre indicated in a statement that there was still work to be done between the Coalition partners.

"We have always said that we will only reach an agreement if we can be sure it will provide adequate support for new mothers and their babies. We have made extremely good progress so far," she said.

During talks, Labour has promoted a scheme of six weeks' leave.

Finance Minister Michael Cullen said in a report published yesterday that there would be provision for the scheme in his Budget and it would begin by June 2002.

Dr Cullen has said that he intends running a tight Budget this year, with extra spending within 1 per cent of the last Budget's forecasts.

- NZPA