| 1. Make youth skills, training and employment pathways a priority |
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Young people’s futures must not be jeopardised by the economic downturn. Careful government stimulus is needed to to build young people’s skills and training, so that they are job-ready. The unemployment rate for those aged 15-24 years was 11.1% for the year to December 2008, up from 9.7% in the previous year. Ministry of Social Development data show unemployment beneficiary numbers rising 34% over the last year with growth weighted toward those aged less than 25 years. Youth unemployment is expected to rise further over the next year. |
| 2. Extend paid parental leave from 14 weeks to one year |
| Paid parental leave has proven economic benefits. It stimulates the economy, retains skilled parents in the workforce, and safeguards New Zealand’s future health and prosperity. Fathers should also be able to have primary entitlement. The Rationale: More than 20,000 parents access Government-funded paid parental leave (PPL) every year, according to the Department of Labour. A number of OECD countries have moved towards up to a year’s paid parental leave. If New Zealand increases its PPL provision, in line with such international trends, it would boost the health of mothers and children and encourage the establishment of healthy parent-child bonds in the critical early years, including breastfeeding. It would also enable parents to balance their caring responsibilities with contributing to the economy. International experience shows that parents who receive paid maternity leave are more likely to return to work than those who do not, giving employers a real saving on the bottom line. Men are currently not entitled to paid parental in their own right – it must be transferred to them by their female partner. Giving fathers the right to PPL will benefit employers and productivity by encouraging greater loyalty, health and cohesiveness and is more likely to be a positive economic generator than a cost. |
| 3. Change public procurement policies to retain provincial jobs, particularly for defence contracts |
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| 4. Postpone tax cuts indefinitely |
| Tax Cuts are unlikely to stimulate the economy The Rationale: A growing body of expert opinion believes tax cuts will not help the New Zealand economy. Air NZ’s CEO Rob Fyfe says tax cuts won’t save jobs because the middle and high-income classes who benefit most from them will save the extra money rather than spend it. Lower income earners, who are traditionally more likely to spend any extra cash, will receive less benefit from the tax cuts. Postponing the tax cuts indefinitely and instead investing in boosting skills, training and jobs is fairer for all New Zealanders. |