Foreign student rules to change

Most foreign students who arrive in New Zealand from November will have fewer work rights, the Government has confirmed.

But the Government has compromised somewhat on its original plans and will attempt to steer new arrivals away from Auckland.

International students studying for qualifications below degree level will only be able to work for a maximum of two years after their courses finish, and in most cases for only one year if they study in Auckland.

That is down from the current situation where students can work for up to three years after they have finished studying.

The extra year of work rights for students outside Auckland only applies if students complete their qualifications before 2022.

Immigration Minister Iain Lees-Galloway said the changes would help ensure international students coming to New Zealand gained in-demand skills for economic growth, encourage students to study ‘‘in the regions’’, and would help reduce the risk of student exploitation.

The changes have been prompted in part by concerns that lower-level courses have been taken up by foreign students as a backdoor to immigration.

The Government had originally proposed immediately reducing post-study work rights to one year across the board for non-degree courses and removing them completely for foreign students taking NCEA level 7 courses that lasted for less than two years.

Post-study jobs that students take on will no longer have to be ‘‘employer-assisted’’, in a change designed to prevent exploitation by unscrupulous employers.

The announcement by LeesGalloway followed feedback from 2000 submissions. Lees-Galloway said it was difficult to pinpoint the exact financial impact because they could not be certain about people’s behaviour.

Ministry of Business, Innovation and Employment labour and immigration policy general manager Ruth Isaac said there could be between 6000 and 1200 fewer students starting that would flow into $12m less in fees up to $59m at the higher end.

Clare Bradley, chief executive of Aspire2 International, which is one of the country’s largest private training establishments, said it was great the Government had listened and made some changes to its original proposals.

The company estimated the Government’s original proposals would have meant 44,000 fewer students coming to New Zealand each year, costing the economy more than $1 billion a year.

It had warned in its submission that it might have to close its international division and stop courses part way through. Bradley could not immediately comment on whether that remained a possibility, describing the announced changes announced as complex.

The National Party said it welcomed the Government’s ‘‘major backdown’’ on post-study work rights for international students but said the damage to New Zealand’s international reputation had already been done.

In a joint statement, National’s Immigration spokesman Michael Woodhouse and Associate Tertiary Education spokesman Simeon Brown said the immigration minister had been forced into a U-turn.

Universities New Zealand executive director Chris Whelan welcomed the new rules. Providing good graduate outcomes was key to attracting the best students from overseas, he said.

‘‘Though most international students return to their home countries after they graduate, a proportion have the qualifications and skills that New Zealand employers need but can’t find enough of from pool of domestic graduates.

‘‘Having the option of staying in New Zealand for up to three years after graduating makes New Zealand a more attractive study destination for these international students while contributing to our businesses and economy,’’ he said.

The changes will reduce the risk of student exploitation. Immigration Minister Iain Lees-Galloway