National promises to extend paid parental leave as Nimon confirms Nash apology

The National Party has promised to gradually extend paid parental leave from 26 to 30 weeks by 2029 if re-elected.

The increase would begin with an increase to 27 weeks in next year’s Budget and followed by further increases in the next two Budgets.

The party announced the promise on Sunday morning.

Finance spokeswoman Nicola Willis said the policy was “about better supporting working mums and dads as they do the vital work of raising children”.

“National wants strong families, supported to give their kids the best start in life. Our modernisation of paid parental leave will support families by giving them more financial breathing space when they take on caregiving responsibilities.

“The birth of a child is an expensive time, as families juggle the costs that come with a new baby while their household income is less than when both parents are in paid work,” Willis said.

The party also promised it would give parents the option of taking some or all of their paid parental leave at the same time, in any order or combination up to the full entitlement.

The announcement came days after NZ First candidate Stuart Nash resigned his candidacy after calling National MP Katie Nimon lazy for taking leave after having a baby.

MPs do not get paid parental leave and Nimon disputed Nash’s characterisation of the length of time she spent away from Parliament.

Nimon was present at the National Party’s announcement of their policy. She said Nash called her on Thursday night to apologise for his remarks.

National costed the policy at $327 million over the four-year forecast period. It will pay for the policy by digging into future Budget allowances, the pool of money set aside for funding cost pressures and new policies.

The first increase will cost $27m in next year’s Budget.

Paid parental leave is currently capped at $811 a week. Willis said the Government had increased the cap each year.

Willis said the cost of paid parental leave falls on the Government and not employers. She described the funding as a “dividend” paid to New Zealanders for the Government’s efforts to restore fiscal sustainability — although Treasury expects budget deficits to persist until the end of the decade by the traditional measurement.

Willis said National had many parents with young children in its caucus and paid parental leave was a priority for them — she said the party would have announced this policy regardless of Nash’s comments about Nimon turning into a controversy.

Willis and National’s women’s spokeswoman Nicola Grigg said the party will “protect changes” in the new Employment Leave Act, so parents receive full holiday pay when taking annual leave after returning to work.

Annual leave is currently paid based on average weekly earnings over the previous 12 months, meaning a parent who takes a holiday soon after returning to work from paid parental leave can receive reduced holiday pay.

“Extending paid parental leave to 30 weeks will ease that pressure and give more parents the option to stay home with their baby for longer.

“This is part of National’s longer-term vision to eventually extend paid parental leave to 40 weeks, equivalent to around nine months.

“Gradually increasing paid parental leave over three Budgets means this policy can be funded responsibly, consistent with National’s plan to return the books to surplus and reduce government debt,” Willis said.

Grigg said the changes would give “more mums the option to stay home longer, giving them more time to recover and return to work with confidence.

“Some mums might need extra help from their partner after a difficult birth and allowing parents to take paid parental leave together means their partner can be home while they recover,” Grigg said.

At the last election, National campaigned on a similar policy of making paid parental leave more flexible, but it had not delivered the promise in government.

Willis said the party had been unable to get the policy included in coalition agreements and that ministerial responsibility for paid parental leave sat with the Act Party’s Brooke van Velden.

“She didn’t prioritise that change in her work programme,” Willis said.

“I think it is a shame that it wasn’t prioritised in the work programme this term,” Willis said, adding National would prioritise the change if elected for a second term.