SMALL firms in the North-west have come out strongly against Government plans to extend family-friendly work policies.

A new survey by international directories company Yell shows that more than a third of those questioned believe that giving working fathers the statutory right to two weeks' paid paternity leave from April 2003 will damage their business.

Nearly half say the decision to extend maternity leave from 18 to 26 weeks will have a similar damaging effect.

Government figures estimate that the cost to business in covering paternity leave will be at least £42 million a year.