Update:
Finance Minister Bill English has today vetoed proposed changes to paid parental leave.
Mr English has exercised his powers of Financial Veto ahead of the third reading of the Parental Leave and Employment Protection (Six Months' Paid Leave and Work Contact Hours) Amendment Bill.
"Treasury estimates the cost of this legislation amounts to $278 million over the next four years, a significant extra - unbudgeted - cost.
"That's on top of the $251 million a year (net of tax) taxpayers are expected to spend by 2020 under the existing paid parental leave framework.
"The financial veto is intended to enable predictable financial management of public finances."
Earlier:
There is disappointment among some in Rotorua that the period of paid parental leave looks unlikely to be extended.
However, the head of Rotorua's Chamber of Commerce says he understands the reason for the expected Government veto.
Labour MP Sue Moroney's private member's bill, which would extend paid parental leave from 18 weeks to 26 weeks, has the numbers to pass into law.
It passed its second reading last month with support from the Greens, New Zealand First, the Maori Party and United Future.
However, Finance Minister Bill English is expected to veto the legislation this week, saying the country cannot afford the change.
Rotorua Parents Centre committee member Janelle Paki said she supported the extension, pointing out the World Health Organisation recommended that babies were breast-fed for the first six months.
Other national and international organisations, such as Plunket and La Leche League, had also made this recommendation, she said.
Mrs Paki said a report from the Families Commission said families were most economically vulnerable when a baby arrives. "It [parental leave] also enables better relationship-building between the mother and the child."
Other benefits of the paid parental leave being extended included time for recovery after childbirth, increased well-being and health of both the baby and mother, and the establishment of feeding and sleeping patterns, she said.
Mrs Paki said for children who did not get that settling time, there could be poor outcomes which led to higher health costs. This in turn spilled over into high societal costs, she said.
Ms Moroney has estimated extending paid leave to 26 weeks would cost an extra $107 million a year - but would also save $28 million a year in childcare subsidies, reduced unemployment benefits, reduced health costs and higher taxes.
Local midwife Dinie Brady said she thought it was "very disappointing" the extension might be prevented by a veto.
"We should be making families a priority."
She said it was an investment in children's futures and it was something she would be happy for her taxes to go towards.
However, Rotorua Chamber of Commerce chief executive Darrin Walsh said although the principle of maximising the parental leave allowance was one the chamber agreed with, he understood the Government's position of having limited resources and allocating them best - such as to the homeless and housing.
"Employees can take up to one year [parental leave] with their job held open and employers can top up the existing 18 weeks if they wish," he said.
"Perhaps the proponents for the extension should have looked for incremental change."