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Small business first to suffer from Holidays Act

Lindsay Tisch National Small Business Spokesman

17 December 2003

Small business first to suffer from Holidays Act

It is the thousands of small business owners who will suffer first from the Government's Holidays Act, says National's Small Business spokesman Lindsay Tisch.

"The Act, passed last night, will increase compliance costs for small businesses and cap future wage and salary rises for employees - costing New Zealanders $700 million a year.

"Small businesses are already struggling - a recent Ministry of Economic Development report suggests that many small business owners take home around $31,000, that's less than the average wage," says Mr Tisch.

"Now, paying for an extra week's leave, employees will have to cover eight weeks of non-work time per staff member.

"Paying for four weeks' annual leave plus 11 statutory holidays, five sick days and four bereavement days will take its toll on small business owners.

"The Government's already burdened small business with a $40,000 bill for new compliance costs.

"The thousands of entrepreneurial, hard-working Kiwis with small businesses who create jobs and fuel our economy are being pushed to the wall by Labour," says Mr Tisch.

Ends

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