Speech to New Zealand Association of Migration and Investment
ImmigrationGood morning and thank you for the opportunity to speak at your annual conference.
As the Minister of Labour and Immigration I am in a unique position to be able to talk about how these two portfolios intersect and what the government is doing to make sure immigration continues to contribute to the country's strong economic performance and to help meet labour market demands.
On that note, I thought today would be a good opportunity to touch on a number of areas:
- An overview of New Zealand's economic outlook
- What we've done in immigration recently
- What we plan to do
One of New Zealand’s goals is sustainable economic growth driven by an employment-rich, highly productive and innovative economy. Related to this are two key government goals to grow an inclusive, innovative economy for the benefit of all and to improve New Zealanders’ skills.
New Zealand's economic growth under Labour has been high – 3.6% a year since 2000, compared with 2.4% across the OECD. This has been reflected in the labour market, which has surpassed most expectations during the last 5 years. We now have the second lowest unemployment rate in the OECD at 3.9%. More New Zealanders than ever before – over two million – are now in work. Since 2000, 263,000 more people have become employed.
The critical issue now being identified by New Zealand businesses are skill and labour shortages. For the first time in more than two decades, we now have the situation where we have too many jobs and not enough people.
To address this, the government has also put an enormous amount of effort into developing the skills of New Zealanders. This has included the establishment of 45 Industry Training Organisations. At the end of 2004 there were nearly 140,000 people in workplace training. We are also aiming to have 14,000 Modern Apprenticeships by the 2008.
Our priority will always to make sure that New Zealanders get the jobs and training needed to grow the economy. However, immigration will always play an important role in helping fill skills and labour shortages that emerge.
New Zealand's immigration policy is designed to attract the skilled migrants, tourists and students who can make a contribution to society and the economy.
The cornerstone of our immigration policy is the immigration programme.
The figures for the year to June – 48,815 new residents - show how well we are tracking compared to last year when just over 39,000 new migrants arrived.
The immigration programme for 2004/05 was split up into:
- The Skilled/Business stream – 29,826 (20,596 in 03/04)
- The Family Sponsored Stream – 13,949 (13,462 in 03/04)
- International/Humanitarian – 5,040 (4,959 in 03/04).
As you can see, the skilled/business stream (including the Skilled Migrant Category) accounted almost all of the increase in the total immigration programme. The Skilled Migrant Category is already oversubscribed in comparison to this time last year. It is clear that New Zealand is an attractive destination for skilled migrants and that the policy is about right.
Through the SMC, we are attracting the quality migrants including teachers, nurses, tradespeople and IT professionals. What's more, 87 per cent of people under this category had a skilled job or job offer at the time they were granted residence.
Around 60 per cent of those jobs were also in areas other than Auckland, meaning all of New Zealand is seeing the benefits of immigration.
Cabinet has decided to leave the 2005/2006 immigration programme objective at the same level as last year - 45,000, with an allowance to approve an additional 5,000 if necessary.
The objective for this financial year takes into account our need to continue to attract skilled migrants, economic conditions, and our country’s ability to absorb the new residents.
Last month I announced changes to Investor Category to maximise the benefits to New Zealand.
The category, which allows people to gain residence on the condition they invest in New Zealand, has been operating in various forms since 1978.
The rules have been tightened to make sure only genuine investors who will contribute long-term to the New Zealand economy and society gain residence.
The changes bring the Investor Category into line with the Skilled Migrant Category, where applicants submit an expression of interest and the Department of Labour selects the best candidates.
Rather than passively accepting applicants, investors will now be selected on the basis of what they can contribute to New Zealand.
The main points of the new policy, which has been developed over the past 18 months, are:
Under the old policy, applicants were granted residence if they could reach a pass mark by accumulating points for business experience, the amount of funds brought into New Zealand and their age. Applicants falling short on the business experience and age criteria could compensate by bringing in more funds.
It was also difficult to verify that the investment was genuine. Applicants could put their money into any investment they chose and these often did not directly benefit New Zealand.
The new policy will make sure applicants will be quality migrants with proven business experience and who will contribute to our economy and settle successfully.
Working holiday makers and international students are also important to New Zealand and there have been many initiatives to make sure they continue to be.
For example, earlier this year I announced policy changes to expand the ability for international students to work while studying here and smoothing the path to gaining residence once they have finished their studies.
With unemployment at 3.9 per cent, working holidaymakers are a good source of temporary labour for seasonal industries and a potential pool of talent for the longer-term Skilled Migrant Category.
Last year I announced the increase in the number of working holidaymakers allowed each year and changes to their conditions and restrictions. The total country quota will be raised from just over 20,000 in 2003/04 to 40,000 in 2006/07.
While our immigration policy is about attracting people to New Zealand, it is also important that our borders are as secure as possible. Border security is a problem faced by most countries because some people will try anything to defraud immigration authorities. Given the increasing security concerns following September 11, it is New Zealand's right to keep out the people we don’t want and remove those who shouldn't be here.
That is why we have boosted border security by more than $30 million in the past two years.
For example, the government introduced Advanced Passenger Screening in 2003 and this has already stopped 650 people from entering New Zealand. This screening means that our border effectively starts when people board planes to come to New Zealand.
The recently established Immigration Profiling Group is responsible for processing all applications from the highest risk countries and is also reviewing all applications from high-risk countries approved in the last 2 years
Another step that we have recently taken to ensure that immigration policies are adhered to is the introduction in June of a Bill to regulate immigration advisers. We are regulating the industry to protect migrants and potential migrants. Most advisers act professionally and ethically but this legislation sends a strong message that the government will not tolerate the small number of crooks who prey on vulnerable people wanting to live in New Zealand.
The legislation will make it an offence to provide immigration advice without a licence. Offenders could face a fine of up to $100,000, seven years imprisonment or both. I am sure your association will welcome these changes.
The government is also reviewing the Immigration Act to make it more relevant to New Zealand’s needs and the international environment, which have both changed since the Act was passed in 1987. The review is part of a wider push from the government to attract skilled migrants and improve border security. I hope your association will provide input into the review.
A fundamental review of the Act was needed to make it more relevant to New Zealand’s needs and the international environment, which had both changed since the Act was introduced in 1987.
More people are travelling than ever before, tourism is increasingly important for New Zealand and there is growing demand for skills and labour.
But just as important, given increasing security concerns following September 11, is New Zealand's right to keep out the people we don’t want and remove those who shouldn't be here.
This is about balance. We want firm, fast and fair immigration processes that protect New Zealand's interests while also recognising that we want and need visitors and immigrants.
It had become increasingly clear the Act needed an overhaul to achieve these goals. Work will be divided into seven broad areas:
- Purpose and principles of immigration legislation
- Entry to New Zealand and migrant obligations
- Grant of protection in New Zealand (such as refugees)
- Enforcement
- Expulsion
- Review and appeal
- Inter-related issues (such as levels of decision making).
A discussion document is due to be released next January. This will set out the policy options for consultation with stakeholders. Public consultation will run from January to April before a final report back to the government with concrete proposals is due next October. We expect to introduce the Bill into Parliament by April 2007.
If we are to be attractive to the migrants we need for future prosperity, we must make sure that they settle successfully. With this in mind, the government is investing $62 million over four years to develop the settlement strategy to address the issues refugees and migrants face.
In conclusion the government's immigration policy is one of balance. We want to be a welcoming country to migrants, tourists and students and make sure people settle well, but we also want to ensure that our borders are as secure as possible.
I want to thank you once again for the opportunity to speak today and I wish you well for the remainder of your conference.