Fed: Democrats challenge Costello over paid maternity leave

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Fed: Democrats challenge Costello over paid maternity leave

By Heather Gallagher

MELBOURNE, Aug 9 AAP - Australian Democrats leader Natasha Stott Despoja today challengedTreasurer Peter Costello to usurp the prime minister and give full support to a nationalpaid maternity leave scheme.

ACTU president Sharan Burrow echoed the call, saying Mr Costello should take the leadon the issue.

Senator Stott Despoja said her Paid Maternity Leave Bill was ready to be tabled inparliament and called for Mr Costello's support.

"I'd like to see him as the treasurer that introduced paid maternity leave in Australia,he might even be the prime minister who introduces paid maternity leave in Australia,"

she told reporters.

"But it's high time we had it. This bill is a workable model. To have the AIG (AustralianIndustry Group), the Democrats and the ACTU in broad agreement, well come on, isn't ittime to get some legislation tabled?"

The Democrats have proposed replacing the existing Maternity Allowance with a 14-weekgovernment payment at the minimum wage rate of $431 per week.

The payment could be increased by employer contributions, locally negotiated.

The ACTU support the bill but want employers to be responsible for topping up the governmentfunding, giving women average public-sector weekly earnings of $981.10 per week.

Employers, represented by the AIG, have argued in favour of a government-funded schemebut believe an employer-funded scheme would "place an excessive burden on industry".

The AIG and ACTU both argued in favour of replacing the Baby Bonus scheme, which givesmeans-tested government funding to parents of new-born children, with a paid maternityleave scheme.

Ms Burrow said it would be cheaper for employers to provide top-ups to the proposedscheme rather than wait for unions to demand entitlements as part of enterprise bargainingdiscussions.

"We think employers would be better off adopting this scheme than sitting back andwaiting till we get to the bargaining table where they would be responsible anyway forour ambit claim of full income replacement."

Senator Stott Despoja and Ms Burrow both called on Mr Costello to intervene in thedebate after he was reported as saying there was no evidence of a connection between highfertility rates and paid maternity leave.

AAP hmg/clr/las

KEYWORD: MATERNITY HEARING