Government cuts flow on migrant worker tap

The Government wants to turn down the tap on temporary and skilled migrant workers, instead opening the door for high-roller investors.

Economic Development Minister Stuart Nash outlined intended immigration reforms in a speech yesterday evening that was light on detail. Nash stood in for Immigration Minister Kris Faafoi, who was sick.

‘‘When our borders fully open again, we can’t afford to simply turn on the tap to the previous immigration settings,’’ Nash told industry leaders and economic experts at the Beehive.

‘‘Covid-19 has starkly highlighted our reliance on migrant labour – particularly temporary migrant labour. The pressure we have seen on housing and infrastructure in recent years means we need to get ahead of population growth.’’ The border has largely been shut to non-citizens and nonresidents since March 2020, to guard against Covid-19.

Nash, in the speech and in comments afterwards, made repeated references to migrantfuelled population growth exceeding the country’s capacity.

He said sectors such as tourism and the primary industries would need to look elsewhere for employees in the future.

‘‘We have got to build a level of resilience into our economy in areas that were wholly, or largely reliant on immigrant labour ... Immigration got to the point where infrastructure could not cope,’’ Nash said.

The speech caused some disquiet among industry leaders at the event. Employers and Manufacturers Association head of strategy Alan McDonald asked Nash how fast the Government would move on the changes – a question Nash could not answer – and whether an under-strain Immigration NZ would receive more resources. Nash said such a question would be answered on Thursday in the Budget.

Aged Care Association chief executive Simon Wallace asked Nash what he meant by ‘‘highly skilled’’. He said the aged-care sector relied on skilled migrant workers, primarily from the Philippines and India, and a shortage of 300-500 nurses could not be filled while the unemployment rate was at 4 per cent.

‘‘Again the aged-care sector is a classic case,’’ Nash said. ‘‘We are reliant on migrant labour in the aged-care sector and . . . they do a fantastic job of it there is no doubt. But we have got to ask ourselves, why are Kiwis not attracted to those sorts of jobs?

‘‘Is it because . . . the wages are too low?’’ Nash said.

Wallace afterward told reporters aged-care workers were paid well above minimum wage and despite efforts to recruit locally, there remained a shortage.

In the speech, Nash said a key focus for the Government’s immigration reset would be temporary workers, the working rights of people on partnership visas, and the settings of the skilled migrant visa category.

The reforms for temporary workers – which include the poststudy work visa, skilled migrant visa, and essential skills work visa – would ‘‘strengthen both the minimum employer requirements and labour market test to be met before a migrant can be hired’’.

He said the settings of the skilled migrant category would be reviewed.

Nash said the Government would create an ‘‘Investment Attraction Strategy’’ to allow 200 people ‘‘representing high-value international investment interests’’ through the shut border in the coming year.

‘‘We can’t afford to simply turn on the tap to the previous immigration settings.’’ Stuart Nash Minister for Economic Development