Immigration path for ‘wealthy’ investors and the highly skilled

WELLINGTON: Wealthy investors and ‘‘highly skilled workers’’ will be the targets of New Zealand’s Covid19 immigration ‘‘reset’’ to reduce the economy’s reliance on lowwage migrants.

In a speech setting out the Government’s intentions for immigration policy, Economic Development Minister Stuart Nash yesterday said that would include making it harder for employers to take on workers from overseas, other than in areas of genuine skills shortages.

‘‘When our borders fully open again, we can’t afford to simply turn on the tap to the previous immigration settings,’’ Mr Nash, who was filling in for Immigration Minister Kris Faafoi, said.

‘‘That path is a continuation of pressures on our infrastructure, like transport, accommodation, and downward pressure on wages.

‘‘Since the borders closed, we’ve seen a reversal in the horticulture sector, for example, where there’s been a lift in wages to bring in local workers.’’

Covid19 had meant immigration had ground to a halt.

This pause gave a ‘‘onceinageneration’’ chance for a reset, Mr Nash said.

‘‘A reset is not merely about numbers, it’s also about ensuring we have the right incentives to support the growth path we want in our postCovid recovery.’’

The moves are in line with Labour’s 2017 immigration policy, which was to cut net migration (then at around 70,000 a year) by 20,000 to 30,000 by cutting back on international students coming for ‘‘low quality’’ courses, and low skilled workers.

High levels of migration have contributed to 30% of New Zealand’s total population growth since the early 1990s.

‘‘This has been fuelled, in particular, by increasing numbers of temporary migrant workers and students,’’ Mr Nash said.

Temporary work visa holders made up almost 5% of New Zealand’s labour force, the highest share compared with other OECD countries.

Increasingly, these temporary workers were at lower skill levels and nearly half of all Essential Skills visa approvals in 2019 were at the two lowest skill levels, he said.

‘‘This means businesses have been able to rely on lowerskilled labour and suppress wages rather than investing capital in productivityenhancing plant and machinery, or employing and upskilling New Zealanders into work.’’

In the decade prior to Covid19, the number of people on temporary work visas in New Zealand doubled a from fewer than 100,000 to more than

200,000.

There was also a huge increase in demand for residency in New Zealand, with the vast majority of applicants already being onshore.

About 80% of applications for the Skilled Migrant category come from onshore applicants.

Another key initiative was the new Investment Attraction Strategy to encourage highvalue international investment into New Zealand, he said.

‘‘We want targeted, highquality investment that establishes frontier firms, brings skills and technology to New Zealand.’’

The Government had also created border exceptions for the Innovative Partnerships Programme and New Zealand Trade and Enterprise’s Investor Programme to enable representatives from global companies to come to New Zealand to conduct ontheground negotiations with companies in which they wished to invest.

These would allow more than 200 wealthy international investors to come to New Zealand over the next 12 months.

There would be changes to immigration services.

‘‘As we focus on reopening New Zealand’s borders, we are determined not to return to the preCovid status quo.

‘‘Sectors which rely on migrant labour, like tourism and the primary industries, will look different in future.’’

Some sectors had been creative in addressing labour shortages, adjusting wages and working conditions, with changes to job offerings and career paths better suited to local labour.

Prime Minister Jacinda Ardern said the immigration reset was not about ‘‘crude numbers’’ but the outcomes New Zealand and those coming here were after.

It would not affect Recognised Seasonal Employer workers from Pacific island countries. —

❛ When our borders fully open again, we can’t afford to simply turn on the tap to the previous immigration settings