TONY EASTLEY: Almost a year since the Rudd Government came to power and key Labour constituencies are stepping up their campaign for the Government to provide relief to people suffering from rising living costs.
Two of the strongest calls have been for the Government to give more money to pensioners and to provide paid maternity leave. But the Government insists it needs to be prudent and careful in its response.
From Canberra Alexandra Kirk reports.
REPORTER: More than half of Australia's female workers don't have access to paid maternity leave. Later today the Productivity Commission delivers its interim report on the subject. It's been speculated it will back a universal paid maternity leave scheme favoured by unions, the Australian Industry Group and the Federal Sex Discrimination Commissioner, Elizabeth Broderick.
ELIZABETH BRODERICK: What we've proposed is a 14 week paid leave for mothers and two weeks for the other parent in stage one of our scheme.
REPORTER: Australia is one of only two OECD countries that still doesn't have publicly funded maternity leave. Elizabeth Broderick says the Government should pay for it.
ELIZABETH BRODERICK: And the main reason for that is it can't be an impost on business so that it acts as a disincentive to the employment of women.
REPORTER: But the Finance Minister Lindsay Tanner points out some businesses already provide paid maternity leave to attract and retain staff.
LINDSAY TANNER: So I would be confident that in the future we'll see a bigger contribution from the private sector.
REPORTER: There's no hint on whether paid maternity leave would replace the baby bonus, to save money.
LINDSAY TANNER: Oh, look, I'm not going to pre-empt the Government's consideration of the report.
REPORTER: The final report is due in late February, as is the review of pensions. The Government is resisting pressure from age pensions and opposition parties for any interim help. Now, it has an ally. ACOSS, the Council of Social Service, will tell the Harmer Review the welfare system needs a total overhaul, not just a quick fix.
It's also calling for a $2 billion relief package for five million social security recipients mainly in rent assistance, starting next July not now, says ACOSS Deputy President David Thompson.
DAVID THOMPSON: As we all know rents have gone through the roof, and if you happen to be a single person on New Start, a sole parent, a carer or an aged pensioner in the private rental market, you're doing it very tough. They need help urgently.
REPORTER: Action on both fronts requires big spending. With constant reminders about uncertain economic times, the Government is wary about extra outlays.
Deputy Prime Minister Julia Gillard.
JULIA GILLARD: Obviously, when it comes to expenditure matters, we take a prudent approach...
REPORTER: And Families Minister Jenny Macklin.
JENNY MACKLIN: It just means we have to be very careful.
REPORTER: The Finance Minister, Lindsay Tanner, is urging caution but...
LINDSAY TANNER: Australia is really well positioned to ride out these circumstances, with a very strong budget surplus, business investment still very strong, unemployment is low, growth is still continuing at a reasonable pace.
So, although the international circumstances will have an influence, we shouldn't allow ourselves to panic as a result of them, and the Government certainly won't be.
TONY EASTLEY: The Finance Minister Lindsay Tanner ending that report by Alexandra Kirk.
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