Senate debates

Tuesday, 11 September 2007

Questions without Notice

Parental Leave

3:25 pm

Photo of Natasha Stott DespojaNatasha Stott Despoja (SA, Australian Democrats) Share this | | Hansard source

My question is addressed to the Minister representing the Minister Assisting the Prime Minister for Women’s Issues. In light of the positive visit and address today by the Canadian Prime Minister, I wonder if the minister is aware that working women in Canada have 15 weeks paid maternity leave at 55 per cent of the average wage, followed by 35 weeks parental leave at a percentage of the average wage. I ask the minister why Australia is one of only two OECD countries without a system of paid maternity leave. Clearly, it is not related to expense, given that the baby bonus costs more than $1 billion per annum and that a paid maternity leave scheme would be less than half of that. Why is this government dragging its feet on the issue of basic entitlements for Australia’s working women?

Photo of Helen CoonanHelen Coonan (NSW, Liberal Party, Minister for Communications, Information Technology and the Arts) Share this | | Hansard source

I thank Senator Stott Despoja for her question. I am sure that I am not out of order and that I speak with the best wishes of the whole Senate when I congratulate Senator Stott Despoja on her happy news: a playmate for the adorable Conrad. I commend Senator Stott Despoja for her enduring interest in advocacy for the interests of women, an interest that she has pursued over many years.

When it comes to maternity leave, it is much broader than just women—it is of course for the benefit of whole families, not to mention a new infant. The government share the objectives of supporting families and supporting women. We do it a slightly different way and I am very pleased to outline for Senator Stott Despoja, for the Senate and for those listening the fact that the government strongly believe that paid parental leave is best negotiated at the workplace level and that the baby bonus makes a very specific and very significant financial contribution to support parents, regardless of their employment status. Equity in these sorts of matters is something that our government is very conscious of. We target it in a different way and to good effect.

As at 31 March 2007, 50 per cent of women covered by current federal collective agreements have an entitlement to paid maternity leave and 29 per cent of all employees have access to paid paternity leave—that is, secondary carers leave. The Equal Opportunity for Women in the Workplace Agency reported that, in 2005, 46 per cent of organisations provided paid maternity leave, up from 36 per cent in 2003. In 2006 the Equal Opportunity for Women in the Workplace Agency reported that 32 per cent of its surveyed reporting organisations offered paid paternity leave, up from 14.7 per cent in 2001.

The government provides a range of support for women and families. In 2007-08 the government will spend around $30 billion in assistance to families through programs such as the family tax benefit, childcare benefit, parenting payment and baby bonus. The baby bonus is non means tested and is available to all families on the birth or adoption of a child, regardless of workforce status. We think that that is very important, because this assistance is needed regardless of whether or not someone is in the workforce. The payment is currently $4,133 non means tested and will increase to $5,000 in July 2008. When paid by instalments, the baby bonus provides ongoing income during the vital early weeks after birth to compensate for time taken off from paid employment.

In answer to Senator Stott Despoja, the government have taken a different but, we think, more effective and more targeted approach. We consider that $30 billion in assistance to families underscores this government’s very clear commitment to the welfare of families and children.

Photo of Natasha Stott DespojaNatasha Stott Despoja (SA, Australian Democrats) Share this | | Hansard source

Mr President, I ask a supplementary question. I thank the minister for her answer and best wishes. I also acknowledge a conflict of interest! I ask the minister: given that in reality only around 34 per cent of Australian working women do have access to paid maternity leave; given the low workforce participation rates of working women in Australia in comparison to the rest of the OECD—we are eighth lowest; given that the Equal Opportunity for Women in the Workplace Agency has told us that those workplaces that do provide paid maternity leave have a 19 per cent higher return to work rate by women; given that the baby bonus does nothing to ensure workplace attachment for women, nor the continuation of their superannuation; and given the fact that women who still get the baby bonus sometimes have to give up their job or go back to work too early or they cannot do what is in their best interests, those of their family or the child, will the government rule out paid maternity leave as a policy?

Photo of Helen CoonanHelen Coonan (NSW, Liberal Party, Minister for Communications, Information Technology and the Arts) Share this | | Hansard source

Thank you to Senator Stott Despoja for the question but, as I said in answer to her primary question, the government strongly believe that when it comes to paid parental leave it is best negotiated at workplace level. We think that the figures indicate that that is taken up by a lot of employment agencies and certainly by a lot of employers. It is certainly taken up under federal collective agreements. The fact that our workforce participation for women has increased substantially indicates that these policies do assist rather than inhibit women. We think that the approach that we have taken has very adequately targeted the need to assist women and families at the time of the birth. The $30 billion and the baby bonus are a pretty impressive suite of measures that support women and support families. That is the government’s approach to the matter. (Time expired)

Photo of Nick MinchinNick Minchin (SA, Liberal Party, Minister for Finance and Administration) Share this | | Hansard source

Mr President, I ask that further questions be placed on the Notice Paper.