Dennis Jensen (Tangney, Liberal Party) Share this | Link to this | Hansard source

I rise to speak on an issue brought to me by some constituents in my electorate—namely, the cost to small business associated with 18 weeks of paid parental leave. It is not only the cost of salary and wages to replace staff that go on maternity leave that affects small business but also the costs that occur due to the loss of knowledge and skills during the leave period and the cost of training and skilling replacement staff. I bring to the attention of the House the experience of Kim Savill, Financial Controller of Dragnet Technology and Consulting:

We are a small family owned IT business, running since 1998.

It is difficult enough to run the business when someone goes on holiday or is sick let alone if we are faced with losing a vital member of the team for 18 weeks.

We would have to employ someone on a contract basis which is expensive and difficult as it takes 2 months on average to get someone up to speed with our customers and procedures.

If we had to hold a position open for 18 weeks we would not be able to grant anyone else leave and pray that no one became ill.

We are finding it hard enough in this current economic climate.

The prospect of this new Parental Leave entitlement is a major issue for us.

We feel the current government has no concept of what it is like to run a small business, the dedication, work, sacrifice and stress.

The actions of a few sully the majority and it makes my blood boil when I see government advertisements showing employers as uncaring, greedy thugs.

We need Canberra to understand the consequences of decisions made in the nation’s capital.

I would like Dr Jensen to ask the Labour government how we are to cope with this situation.

So I put that question to the House and to the Gillard government, which introduced the scheme: how are small businesses expected to absorb all the costs associated with paid parental leave and continue to be profitable organisations? Have the government actually modelled the wider impacts of this policy on small business, and do they understand the financial burden on small business of their paid parental leave policy? Our economy is still fragile in many small business sectors, and the imposition of increased costs by the government in this way serves to demolish the very backbone of our economy for the benefit of a small few.