Small businesses need 90-day Bill

Wayne Mapp MP

National Party Industrial Relations Spokesman

29 September 2006

Small businesses need 90-day Bill

National Party Industrial Relations spokesman Wayne Mapp say the Labour Government should take note of a business survey expressing serious concerns about employment-related compliance costs for small and medium businesses.

He is commenting on this year's Business NZ-KPMG Compliance Cost Survey which finds that compliance costs continue to rise and small businesses are faring the worst.

"Since Labour has been in office, employment law has become increasingly complex," says Dr Mapp.

"Small businesses, in particular, have had real difficulty complying with the volume of paperwork and bureaucratic requirements,"

The report singles out for mention the costs associated with personal grievance claims under the ERA. Dr Mapp says his Member's Bill that sought to introduce a 90-day probationary period for new employees would have provided a meaningful solution. "A probation period would enable an employer to take a chance with new employees without facing the risk of expensive and protracted personal grievance procedures.

"The Government's own Small Business Advisory Group identified grievance costs as the biggest obstacle to the growth of small business in this country - it's time Labour gave small business a break and did something about it.

"Small businesses are the driving force behind the New Zealand economy but ever-increasing compliance costs send the wrong message and threaten to drive them to despair."

ENDS