Last week the Families Commission called for the government to extend taxpayer funded Paid Parental Leave from 14 weeks to 13 months.

The current scheme cost $135 million in 2008. Extending entitlement from 14 weeks to 13 months would push this cost up to $540 million. Based on Treasury's current projections, this would further increase to $672 million by 2013. Add to this the month's paid leave the Families Commission wants for fathers/partners and the cost would rise to over $700 million.
Back in 2007, the last time the Families Commission wheeled out this idea, a New Zealand Herald editorial gave it their blessing and ignored warnings that the costs would blow out.
It said, 'But these cautions will be based on an assumption the benefit will be fully subscribed. In all likelihood, the money might be hard to give away. Even with the offer of paid parental leave, career-minded young mothers may be as anxious as fathers to return before their baby is a year old.
Sorry, the money might be hard to give away? Since when has somebody else's money been hard to give away?
That Treasury's initial projected costs for PPL were far too conservative proves the point. In 2003, when PPL first became available, Treasury estimated it would cost $74 million by 2008. As we have seen, it climbed to almost double that figure.
Full subscription of the extended entitlement is exactly what the commission wants. Their philosophy is that parenting is a public good for which all should pay. Mothers should be paid to stay home with their children. (That's how we got the DPB, by the way. Now some mothers are reluctantly returning to the workforce early because somebody has to pay for those who either never entered the workforce, are returning to it very late, or never.)
The Families Commission argues that most developed countries pay parental leave for at least 12 months, yet according to the OECD, the average period is 18 weeks, just four more than New Zealand. As well, many of the countries that provide longer entitlements than New Zealand do not have long-duration single parent benefits. In Sweden, all parents get the same paid leave entitlement, but all are expected to return to work when the entitlement ceases.
Will it fly? When in opposition National was receptive to the extension. Although that was pre-recession I am not reassured their response as government will be very different. That is because National are very keen on currying favour with the younger female vote.
At a time when welfare costs in other areas are rising rapidly, New Zealand simply cannot afford to follow the Families Commission recommendation. A $700 million annual increase in public spending should be resoundingly rejected. New Zealand needs less welfare - not more.