Brash Don: Questions for Oral Answer — Questions to Ministers 
Brash Don: Questions for Oral Answer — Questions to Ministers 
[Volume:614;Page:10274] 
2. Dr DON BRASH (Leader of the Opposition) 
 to the  
Prime Minister 
: Does she stand by the reported statement of her office in relation to the cost of implementing an extra week’s holiday leave that Treasury and the Labour Department had agreed that $350 million was “the most accurate figure”; if so why? 
Hon Dr MICHAEL CULLEN (Acting Prime Minister) 
: 
 Yes because officials did advise that that was the most accurate figure in terms of the cost to employers. 
Dr Don Brash 
: Why did she fail to mention when she announced this policy on 8 November that the total cost of implementing an extra week’s annual leave was in fact $700 million and that at least half that amount—$350 million—would come off workers’ future wage increases? 
Hon Dr MICHAEL CULLEN 
: Because all the whingeing about a fourth week’s holiday has come from the employers not the employees. 
Peter Brown 
: Does the Prime Minister acknowledge that the majority of people who are confined to 3 weeks’ holiday per year are casual employees low-paid employees or young people and does the Prime Minister concur that it is neither fair to build an economy on the backs of those folk nor economically sound in the long term? 
Hon Dr MICHAEL CULLEN 
: The member makes a very very good point and of course that would also apply to people who are immigrants to New Zealand as well as to New Zealand – born workers. 
Sue Bradford 
: In calculating the cost of an extra week’s leave did officials take into account the additional cost of childcare and health care as a result of workers trying to balance family and work responsibilities and did the final cost include net gains arising from a more productive workforce? 
Hon Dr MICHAEL CULLEN 
: On the first part no. There is always a good deal of uncertainty around these estimates because there is some productivity element taken into account but one assumption was that there would be a 75 percent flow-on of relativities. That itself I think is a highly questionable assumption. 
Deborah Coddington 
: In light of Business New Zealand’s estimates—Business New Zealand being one of the Government’s strategic partners—that the total cost to employers and employees is more likely to be $900 million will the Prime Minister admit that her statement of 10 November is misleading and incorrect; if not why not? 
Hon Dr MICHAEL CULLEN 
: No no and no because it is not. 
Dr Don Brash 
: Does the Prime Minister agree with Treasury that the impact of the cost of an extra week’s leave will be felt most acutely in terms of lower wage increases by the most vulnerable workers; if not why not? 
Hon Dr MICHAEL CULLEN 
: That is a debatable assumption. The certainty is I think as Mr Brown has argued that the benefit of a fourth week’s holiday will be most felt by vulnerable workers as they are the least likely to have 4 weeks’ leave now. 
Dr Don Brash 
: Does the Prime Minister agree with the Minister of Labour’s view that the extra week’s leave will “lead to a decrease in labour supply which is likely to have an adverse impact on growth”; if so how does she see this improving New Zealand’s prospects of getting to the top half of the OECD? 
Hon Dr MICHAEL CULLEN 
: That argument reminds me of Nassau Senior who argued that all the profit in the early 19th century was made in the last half-hour of work when he opposed attempts to lower the working-day from 12 hours. 
Dr Don Brash 
: I seek leave to table two Cabinet documents released under the Official Information Act which make it clear that much of the cost of this extra week’s leave will be borne by low-income workers and by exporters. 
Documents by leave laid on the Table of the House. 
Gerry Brownlee 
: I raise a point of order Mr Speaker. It is with regard to that last answer from Dr Cullen. You have said that Ministers must address the question. It cannot surely be an acceptable addressing of the question simply to say that the question reminds one of something from one’s learning of the historical past or whatever. Surely Dr Cullen has to give an answer that is vaguely to do with the question that was asked. 
Mr SPEAKER 
: I think I will ask Dr Cullen to expand on his answer. 
Hon Dr MICHAEL CULLEN 
: Absolutely Mr Speaker. Could I point out to the member in response to his original question that from time immemorial right-wing economists have always argued that every benefit gained in terms of workers’ conditions will somehow be paid for by workers only. I invite the member therefore to promise to repeal the 4 weeks’ holiday legislation.