Paula Bennett National MP Associate Labour & Industrial Relations spokeswoman

23 May 2006

Business regulation review doomed from start

The Government's review of business regulation is doomed from the start thanks to the refusal to do anything about the Holidays Act, says National's Associate Labour & Industrial Relations spokeswoman, Paula Bennett.

"Last week I pointed out the meat industry's concerns about a 39% increase in sick days.

"This is thanks to the Holidays Act - a law Labour brought in despite the objections of business groups.

"This review is a waste of time and taxpayers' money when it will not result in any of the required changes to the Holidays Act.

"Besides the impact on the meat industry, Air New Zealand has reported a $17 million increase in its wage bill thanks to the Act, and 80.5% of Hospitality Association members described the Act as having a negative or extremely negative impact on their businesses.

"The Northern Employers and Manufacturers Association has warned that Holidays Act-related cost increases could be high enough to trigger profit warnings from some publicly listed companies.

"Instead of listening to what businesses have already said, this when-in-doubt-review-it Government is going to start on yet another drawn-out review.

"But the evidence is already right there for the Government - if it actually listened."

ENDS

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