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Businesses across Nottinghamshire and Derbyshire face the prospect of being hit by extra annual costs totalling £58.8m on the back of an EU proposal to treble maternity pay. 

A European Parliament committee last night passed a plan to make firms pay new mothers their full salary for at least 20 weeks. The directive will go before the full European Parliament next month, when MEPs are expected to rubber-stamp it.

The plan would effectively triple statutory maternity pay in the UK, which currently provides women with six weeks at 90% of salary, followed by a longer period on a basic £123-a-week.

National estimates* put the additional cost to business at £2bn-a-year should the proposal receive approval, meaning the financial impact on local firms could be as much as £58.8m.

Derbyshire and Nottinghamshire Chamber of Commerce is currently exploring the issue of EU legislation and policy and the impact on businesses through its latest Quarterly Economic Survey, the results of which will be published in April. 
 
The Chamber's chief executive, George Cowcher, said: "The timing of this announcement is extremely unhelpful to say the least, given that we are still trying to drag the UK economy out of recession.

"The Pregnant Workers Directive should be about setting minimum EU standards for the health and safety of pregnant workers, not increasing the cost base of an already over-burdened business sector and putting more strain on a public purse which is under intense pressure because of the need to reduce the national debt.

"This vote introduces yet more complexity and uncertainty to what is already a red tape minefield. It is wholly unnecessary given that the UK, as with the rest of the EU member nations, already has a well developed national maternity pay system.

"Companies need to be given the space to deliver growth and jobs, free from the threat of increased burdens brought about by the constant tinkering with maternity rules.

"Business in general and small firms in particular will struggle to carry the extra cost of having to pay not only for maternity leave but also for extra staff providing cover and this may have an adverse effect on the decision-making process when it comes to recruitment.

"The Chamber has already backed calls for a three-year moratorium on new EU employment laws and as this directive moves towards a vote, we would urge the European Parliament to overturn these costly amendments, which can only hinder the progress of sustainable economic growth. The Chamber will certainly be making representations to our MEPs to this effect."