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Four weeks’ leave another business burden

Four weeks’ leave another business burden

Doing business in New Zealand just keeps getting harder under this Government, says National's Commerce spokesman Tony Ryall.

"Labour's plan to support four weeks’ paid annual leave is another hurdle for small businesses trying to get ahead.

"For example, the principals of a small provincial accounting firm employing ten staff have told me they estimate Labour's extra week's paid leave will cost them around $22,000 a year in lost income, plus $7500 in direct wages a year.

"At a time when farm incomes are being hammered, an extra week's leave is another burden businesses can't take. Already, they’re facing added compliance costs – stress and OSH's ridiculously high fines, increased rates and competition in the Local Government Bill, fallout from Kyoto ratification and pay parity.

"The fact is that until New Zealand can get on to a higher growth path with positive long-term prospects, four weeks’ paid leave is a luxury we can’t afford,” says Mr Ryall.

“National wants lower taxes, fewer compliance costs, the freeing up of labour laws and an improvement in the education system. Only then can we lift our prospects,” he says.

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