New paid maternity leave plan considered

Yuko Narushima
September 29, 2008

Mothers could receive 14 weeks' paid maternity leave under a $500 million scheme expected to be recommended by the Productivity Commission today.

The Federal Government said yesterday it would consider the commission's draft model for a universal scheme with caution given the economic climate.

The Deputy Prime Minister, Julia Gillard, said the Government could not guarantee a plan would be in place by next year's budget. "We do want to see a paid maternity leave scheme in this country, but obviously when it comes to expenditure matters, we take a prudent approach."

The comments show a tempering of the Government's enthusiasm for a national scheme funded in part by taxpayers. It asked for independent modelling of a plan in January.

"What we have got to make sure of is that if the Government does more, that doesn't mean the businesses who are now offering paid maternity leave start to do less. We want to build on what's there, not substitute for what's there," Ms Gillard said at the time.

"Sometimes, when people hear politicians say the word inquiry, they think: 'Well, we will never hear about that again.' We want a short-term, focused inquiry."

Yesterday words of caution were echoed by the Minister for Families, Jenny Macklin, who said no action would be taken on maternity leave until the Productivity Commission handed down its final report in February, after another round of consultation.

"It's so critical for mothers to have time to recover after the birth; for parents, mums and dads to have time to bond with their newborn babies," Ms Macklin, a long-time advocate of paid maternity leave, said.

"Let's see the report tomorrow but engage in the debate over the next couple of months."

The comments came as the Finance Minister, Lindsay Tanner, has said repeatedly he will rein in Government spending. "It is not easy because once something's committed, once you've got an entitlement in place, it's very hard to take away."

Among 253 submissions made to the Productivity Commission, models from the Business Council of Australia and the ACTU both supported 14 weeks' paid leave, funded by government.

The federal Opposition Leader, Malcolm Turnbull, said the baby bonus had helped families but "more needs to be done".

Discuss the paid maternity leave scheme with Essential Baby Mums.