Tony Abbott's paid parental leave scheme not ditched, say ministers

http://www.theguardian.com/world/2014/aug/03/tony-abbotts-paid-parental-scheme-has-not-been-ditched-say-minsters

Version 0 of 1.

Government ministers have denied reports that Tony Abbott’s $5.5bn paid parental leave (PPL) scheme has been shelved, saying the budget would take precedence.

At the same time, more details of indexation freezes, provided by the finance minister, Mathias Cormann, show savings of $165m over four years in health, education, aged-care and family services.

Coalition ministers, including the environment minister, Greg Hunt, and the immigration minister, Scott Morrison, said the prime minister and the treasurer, Joe Hockey, remain committed to the controversial PPL scheme, which is due to start in July 2015. Legislation for the scheme has not been released yet.

“The budget is the priority to get those measures through, and all of our other priorities then will be taken through the parliament in an orderly fashion,” Morrison said.

Hunt said there had been no change of position on the Coalition’s PPL policy, which would pay 26 weeks parental leave to mothers, on their full salaries up to $100,000. The present scheme, devised by Labor, pays 18 weeks leave, at the minimum wage.

The government’s legislative program will concentrate on getting the budget passed when parliament resumes in the last week of August.

Cormann’s latest information shows the savings that will be made in a range of programs using a so-called indexation pause, which translates as funding cuts.

It means $30.3m will be saved from health programs, including the national immunisation strategy and the national depression initiative, plus $26.4m in savings from the family relationships services program, which provides counselling for couples and families.

Aged-care services will lose $28.9m over four years from programs for standards in nursing homes. The industry workforce training program will lose $10m.

Labor’s Senate leader, Penny Wong, said the details reinforced the negative impact of the government’s “cruel” budget.

“Tony Abbott has not only broken his election promises, he has now been caught out trying to hide cuts which will hurt some of the most disadvantaged and vulnerable people in our community,” Wong said.