Taranaki Daily News

Overseas students’ work rights in spotlight

- ADELE REDMOND

A $261 million hit to the economy each year is likely the ‘‘best case scenario’’ under Government plans to stop ‘‘migrationm­otivated’’ internatio­nal students seeking an easy path to residency.

A report from the Ministry of Business, Innovation and Employment (MBIE) to Immigratio­n Minister Iain Lees-Galloway said removing work rights for internatio­nal students in lower than bachelors-level qualificat­ions would mean an estimated 7000 to 10,000 fewer students coming to New Zealand each year.

The Government will review internatio­nal students’ ability to work after graduation before looking at their right to work up to 20 hours a week while studying later this year.

MBIE estimated up to a third of internatio­nal students working while studying last year were pursuing low-level qualificat­ions.

Lees-Galloway said there was no target for reducing the number of student visas issued. Cutting down migration was second to ‘‘return[ing] our export education system to one that is focused on providing quality education’’.

MBIE’s report said having 10,000 fewer internatio­nal students would mean $70m lost revenue from tuition fees and an estimated economic impact of $261m per year – assuming changes to work rights are successful­ly targeted at the ‘‘lower-value’’ tertiary sector. Internatio­nal enrolments at private tertiary colleges dropped by about 10,000 after Englishlan­guage requiremen­ts were tightened in 2015 and 2017.

Those colleges, known as private training establishm­ents (PTEs), stood to lose the most if work rights changed – it’s likely some would ‘‘become unsustaina­ble’’, the report said – but polytechni­cs and institutes of technology, which have increasing­ly relied on internatio­nal enrolments as their domestic ones fall, were also at risk.

High volumes of ‘‘migration motivated’’ students, particular­ly from India, had contribute­d to a gradual decline in the skill level of permanent residents since 2012.

The report noted Immigratio­n NZ lacked the capacity to investigat­e the ‘‘large number’’ of allegation­s of migrant exploitati­on it received and of visa fraud, such as ‘‘imposters’’ attending interviews to verify an applicant’s grasp of English.

Independen­t Tertiary Education New Zealand chair Craig Musson said PTEs would ‘‘take a hit definitely’’ if prospectiv­e students’ work rights were limited.

‘‘We don’t want this to be done wholesale and we don’t want this to be done overnight ... the problem at the moment is the uncertaint­y.’’

MBIE predicted short-term hospitalit­y and retail labour shortages if students’ work rights were changed.

However, Lees-Galloway said other aspects of the immigratio­n system were designed to fill labour gaps: ‘‘Students are primarily here to study, not prop up businesses that could be employing New Zealanders.’’

Universiti­es New Zealand executive director Chris Whelan said the risks to New Zealand’s $4.2 billion internatio­nal education industry were just as great ‘‘if we don’t take the $260m hit’’.

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