Schooled on risks to economy

A $261 million hit to the economy each year is likely the ‘‘best-case scenario’’ under the Government’s plans to stop ‘‘migration-motivated’’ 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 says removing work rights for international students in lower than bachelorslevel qualifications will mean an estimated 7000 to 10,000 fewer students coming to New Zealand each year.

Later this 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. Mbie estimated up to a third of international students who worked 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 annual 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 foreign students would mean $70m in 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.

Those colleges – known as private training establishments – 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, were also at risk.