Parental Leave Scheme
+ Cardinal George Pell, Archbishop of Sydney
4 Jul 2010
Before the recent political turbulence, an important piece of legislation passed quietly through both Houses of Federal Parliament.
It was a rare moment of bipartisan approval for a parental leave scheme. From next January 1st, 18 weeks parental leave at the national minimum wage will be available to all mothers on the birth of their child and almost 150,000 a year will probably apply.
Like every other country in the Western world Australia's birth rate is below the replacement level. But it is improving and not radically lower.
It is tempting to blame the contraceptive pill and the attitudes it produces, but a more important reason is the cost of housing. Many women would like to have more children, but feel they cannot afford to do so.
Thirty years ago the price of an average family home in the capital cities was 3 times the average annual wage. By 2007 it was 7 times average earnings. What one breadwinner could do then, now requires two wages. Capitalism has brought unprecedented prosperity, but capitalism puts an extra price on children.
At the 2007 election neither major political party supported this policy, but the change is welcome. I did not realize until recently that Australia was one of only two First World countries without such a programme.
Debate will run on about what is the best number for our annual migrant intake, but this is a different issue. Governments should help mothers who want to have children and the Baby Bonus moved effectively in this direction.
Tony Abbott's Opposition supported the legislation but they propose the more radical measure of 6 months parental leave that would replace a mother's full time wages.
As nearly 60 per cent of women are in paid employment before giving birth and 26 per cent of them are back at work within six months, the Abbott scheme would strengthen the bonding between mother and child and ease the home repayment pressures.
While parental leave schemes in the Western world vary, most are closer to 18 than 26 weeks, but most are a percentage of pre-birth earnings rather than a minimum wage. France, Germany, Spain, Austria and Denmark grant 100 per cent replacement pay. The U.S.A. has no such scheme and Canada gives 55 per cent of pre-birth earnings.
The Abbott proposal certainly needs a second leg to give comparably generous support to mothers at home, but I suspect a percentage replacement pay is the way of the future.
