Licensed for the Future

 

 

Venue: Sorrento in the Park, One Tree Hill, Auckland

Time:    11.10am, 1 August 2008

 

 

 

 

 

New Zealand Association for Migration and Investment Chairman, Richard Howard, and Association members; Alasdair Thompson, Chief Executive Officer of the Employers & Manufacturers Association and Conference Chairman; Arnold Conyer, National President of the Migration Institute of Australia; Bernie Waters, the Chief Executive Officer of the Migration Institute of Australia; the Registrar of the Immigration Advisers Authority Barry Smedts; my Parliamentary colleague, Dr Hon. Lockwood Smith; special guests; ladies and gentlemen.

 

Good morning. It is a pleasure to be here. Today I would like to discuss some of the immigration issues that face us as a nation. I will also outline the new developments and strategies in government policy that will ensure that we can continue to meet those challenges - to the benefit of all New Zealanders, including those professionals who work in this sector, such as the people in this room.

 

I do not need to tell members of this Association of the many ways immigration is important to New Zealand's economy, society and family units. It is after all your business and it is a business many of you have worked successfully in for years. But it is, I think, still helpful to sketch out in broad terms how nationally significant this business is. Let's look at the statistics.

 

Migrants and the economy

 

It is widely known that migrants make a major contribution to our economy, but not so widely recognised is quite how large that contribution is.

 

The Department of Labour’s report on The Fiscal Impacts of Immigration showed that the migrant population provided a net fiscal contribution of $3.3 billion in the year to 30 June 2006. This contribution is up by approximately 80% from 2003. 

 

In addition to this is the economic contribution from international tourism, which was $8.8 billion for the year ending March 2007. And export education is the fourth largest export industry in New Zealand, and is worth over an estimated two billion dollars in foreign exchange each year.

 

Economic contribution

 

Migrants drive innovation, give our businesses international connections, and provide a range of skills to transform our economic landscape. Temporary workers enable our employers to fill their job vacancies when there are no New Zealanders available to take up the positions.

 

Over the past five years, migrants have accounted for 60 percent of the growth in the national workforce. Much of that growth has occurred in skill shortage areas — areas that are vital to the basic functioning and future growth of our economy. Without migration, many kiwi businesses would be like a four-cylinder engine running on only three cylinders – unable to maximize their potential, under strain and inefficient.

 

Migrant flows growing

 

The migration trends we are seeing are positive. Growth is occurring across all immigration categories. The latest Migration Trends report shows that temporary migration has continued to grow at a rate of around 18 percent a year over the past decade. In 2006/07, temporary work permits were issued to 115,500 people – 16 percent more than the year before.

 

More than 95,000 student visa and permit decisions were also made in 2006/07 – an increase of 10 percent compared to 2005/06. Since the introduction of the Skilled Migrant Category in 2003, there have been more than 105,000 people approved for residence under this policy, including more than 46,000 principal applicants.

 

Even more encouraging is the emerging trend we are seeing of the growing link between temporary and permanent migration. The vast majority of residence applicants —89 percent— previously held some form of temporary permit. This makes it easier for them to make well-informed choices about settling in New Zealand and helps ensure that migrants integrate into our communities.

 

The Association for Migration and Investment is part of that success story. Your involvement and commitment to prospective migrants and their families goes well beyond just making sure the forms have been filled in correctly. Support in shepherding prospective migrants through the application process, matching their skills to job opportunities and providing expert advice on a whole raft of settlement issues, such as housing, schooling and asset transfers, are a few examples of the kind of services you offer.

 

This sort of pastoral care is usually not associated with immigration consultancy but it is a critical component of the work you do. It’s the kiwi way of doing things, in terms of going the extra mile and giving a personal service. Keep up the good work.

 

International competition

 

In fact it is that kind of professional service that will help retain New Zealand's reputation as a preferred destination to live and work in.

 

We must now compete for skilled migrants in a global and increasingly mobile labour market. Competition with New Zealand for skilled workers is broadening beyond our traditional competitors such as Canada and Australia, to other countries such as those in the European Union.

 

Marketing New Zealand as a migrant destination has never been harder and the government recognises that to compete successfully we must offer first-class immigration services.

 

That is why we are here today. We are here to share insights into what we have achieved and learnt, and how we must plan for the future.

 

Competitive Immigration Systems

 

Immigration systems must be able to adapt quickly to changes to the global and national environment - to rapidly identify emerging opportunities and risks. Our immigration system has this capacity and is envied internationally for this.

 

To give a few examples; our points-based Skilled Migrant policy is flexible, and can be changed to reflect labour-market conditions and New Zealand's requirements.

The skill shortages list is also a responsive labour market mechanism. The government conducts a biannual review of the Long Term Skill Shortage List and the Immediate Skill Shortage List (ISSL) in which submissions to add, remove, or make amendments to occupations are considered. This review is employer-led, with input from the public. 

Our legislation is also flexible as it is framework legislation, meaning that the underlying policies contain most of the detail and requirements. What this means is that we do not have to make an amendment to the immigration legislation each time we want to amend a policy.  Where we identify a risk or need we undertake an appropriate policy process to respond.  This is a quicker and more streamlined process that having to undertake a legislative amendment.

 

In comparable countries such as the UK, Australia and Canada, their immigration policies are not so responsive as the detail is set in the legislation.

 

That said, there is still room for improvement within our immigration processes, and the government is working hard to deliver a system that will better serve New Zealanders and migrants, and into the future. We need to anticipate the opportunities and challenges ahead if we are to stay on top.

 

Immigration Change Programme

 

In this context, the Government has been working to deliver a comprehensive Immigration Change Programme. This comprises three components.

 

Legislative change is the first essential of this programme.

 

As you know, the Immigration Advisers Act 2007 has already passed into law and the Immigration Advisors Authority is now up and running. The Immigration Bill has been reported back by to the House by the Select Committee and I hope to see it enacted before the end of this year.  

 

Secondly, this new legislation will be supported by policy changes. As I mentioned before, this will ensure that we can adapt to changing circumstances. Our policies must meet national interests and the expectations of those we seek to attract as prospective migrants. If we don’t do that they will simply look elsewhere — immigration is an internationally competitive business.

 

The third component of the Immigration Change Programme focuses on how we deliver immigration services. The ten proposals that Cabinet decided on cover both the ICT components of our immigration business, as well as security and service delivery aspects. 

 

The broad strategic direction for security and service delivery is to move from a reactive, border-focussed activity to one that proactively seeks the migrants we want, keeps out those we don’t, and where we make consistent immigration decisions based on risk and value. This is backed by our settlement support operations, which ensure the migrants we have attracted here feel welcome, integrate well into our society and make New Zealand their permanent home.

 

Immigration Advisers Licensing Act 2007

 

A key part of attracting the migrants we want and need is being able to ensure that immigration support services are professionally run by ethical, competent people.

The passing of the Immigration Advisers Licensing Act 2007 was a crucial step in ensuring this happens.

 

The Act has brought in significant changes. Before the new law, anyone could call himself or herself an immigration adviser. In the past, a small number of incompetent and/or unethical practitioners damaged the reputation of the industry. In some cases of incompetent or unethical practices by an adviser, applicants suffered serious financial loss due to high fees and unsuccessful settlement in New Zealand.  Some also suffered damage to careers, family dislocation, significant personal hardship and were unable to gain approval to re-enter New Zealand. 

 

The legislation and the Authority will ensure that unscrupulous operators are not allowed to practice as immigration advisers. It will be compulsory to be licensed as an immigration adviser onshore from May 2009, and offshore from May 2010.

 

The Immigration Advisers Authority benefits us all

 

These improvements will have flow on benefits for New Zealand. They will confirm the integrity of New Zealand’s immigration system and help us attract the migrants we need. We will be seen as a country that operates according to defined standards and is concerned to ensure that the interests of prospective migrants are managed by trustworthy and competent advisers who are licensed by an independent body — the Immigration Advisors Authority.

 

The establishment of the Immigration Advisers Authority shows that New Zealand is committed to ensuring that migrants are given the best advice by the best people and that there are regulatory measures in place to maintain professional standards, including the Immigration Advisers Complaints and Disciplinary Tribunal.

 

I want to publicly acknowledge and thank your Association for its valuable support over this initiative. I am especially grateful to those members involved in the various reference groups that helped develop the immigration adviser competency standards and a code of conduct. More recently, your members have helped develop the Authority’s assessment and evidence processes. I also understand that members just recently participated in a focus group on professional development policy. As a result of your contribution, the Authority will be sending out a discussion paper in August.

 

The Act represents a win-win situation for us all – for migrants, for immigration advisers, for industry and for New Zealand. Migrants can now trust and rely on the accurate and sound professional advice licensed immigration advisers provide. Trustworthy and proficient operators are protected by law and supported in their professional development. The industry’s reputation is enhanced as its work is seen as regulated and having high standards of professionalism.

 

The Immigration Advisers Authority has been accepting applications since May. To date more than 400 people have attended licensing workshops around New Zealand, and there are approximately 700 people signed up to receive newsletters and information from the Authority. That is a very encouraging result, and no doubt the NZAMI has had a huge role to play in raising awareness.

 

The Authority has been issuing licences, and is processing more. The momentum is clearly underway. A public register of licensed advisers has been established on the Authority’s website. This transparent approach shows all migrants who are thinking of making New Zealand their home that this is a country that demands high standards in its immigration services.

 

Role of Immigration in Decision-making

 

I believe that it is important to acknowledge that while there has been tightening up of standards with the introduction of licensing immigration advisers, I want to assure you that those same high standards are demanded by the government from Immigration New Zealand. Immigration staff must also be responsible and held accountable for their role in immigration decision-making.  As I am sure all of you are aware, there are currently several reviews underway into the historical actions of immigration staff, and the way this was handled by the Department. It is appropriate for these reviews to run their course to enable full and factual information to be placed before Ministers.  The government will be taking the findings seriously and will act to make any improvements to any issues identified. 

 

While we expect immigration advisers to act in accordance with certain standards, it is equally important that we have standards for our immigration staff.  Adequate training and support will be an important feature of this.

 

The Immigration Bill

 

I would also like to thank you for your involvement with our cornerstone piece of legislation – the rewrite of the Immigration Act 1987. The Immigration Bill is the result of extensive consultation both with members of your industry and a wide range of social and commercial interests. This has included key Crown Entities, immigration lawyers and of course employers, businesses, and the organisations that represent them. The government has also received submissions from members of the public and a number of social interest groups. 

 

This has been important because we want this Bill to become a piece of legislation that works for all New Zealanders. The Act review has taken a few years because we needed to sound out both professional and public opinion to make sure we got the balance right. It was a process that couldn’t be rushed; it had to be done appropriately. And I believe we have achieved that. The Immigration Bill provides a framework that balances the rights of the individual and the national interest. Importantly, it also enables us to successfully fulfil our immigration-related international obligations.

 

The government’s goal is that the legislation is passed this year, and that it is implemented one year after enactment. In the interim, we will ensure that robust transitional processes are put in place and everyone knows how the new legislation will impact on them.

 

New Policy settings

 

Dovetailing in with our major legislative changes are our evolving policy settings. We need to respond innovatively to changes in global conditions if we are to fill skill and labour gaps, manage security risks, and ensure migrants settle and integrate well.

 

In this context, we have recently concluded reviews of our Skilled Migrant and Temporary Work policies. Obviously, the outcome of these reviews is of interest to your members and I will provide a brief outline of some of proposed changes.

 

Temporary Work policies

 

The Government has just introduced a new temporary work policy that encourages the recruitment of highly-skilled overseas workers and better protects the jobs of New Zealanders who work in lower-skilled professions.

 

The new Essential Skills policy replaced the current General work policy from 28 July 2008. It means that applications for work permits in lower-skilled and higher-skilled occupations are now treated differently.

 

The former temporary work policy was developed in a time of higher unemployment for employers to use to recruit workers for skilled occupations.  However, with the tight labour market, employers have used it to fill lower-skilled jobs.  This new policy will allow that to continue, but it is designed to provide greater assurance that local unemployed people are considered first for these lower-skilled jobs.  This 'Kiwis first' principle is fundamental to the new policy.

 

Under the new policy, Immigration New Zealand will continue to do labour market checks for all applications, but will do an additional check with Work and Income before issuing any work permits or visas to people wanting to fill positions in lower-skilled occupations. This is to ensure there are not unemployed New Zealanders available who could take up the work.

 

Labour market checks include whether the occupation is listed on either the Long Term Skill Shortage list or the Immediate Skill Shortage list, or if the employer can show that they have made a genuine attempt to recruit a New Zealander.  Immigration New Zealand will accept that as evidence of a lack of New Zealanders to do the job.  Employers are required to pay the market rate for an occupation.

 

The only exception to this requirement is if Work and Income advises that an absolute regional labour shortage exists for a particular industry.  These generally apply to seasonal industries.

 

The process for employers lodging applications is the same, but employers are encouraged to approach Work and Income first to help speed up the application.

 

The other changes will allow employers to recruit highly-skilled employees for longer.  We have created a new one-off, five-year work permit for highly-skilled employees whose job will pay at least the same as the residence salary under the Accredited Employer policy.  Currently that is an annual salary of $55,000.

 

Twenty per cent of firms say that the lack of suitably skilled people is the main constraint on their expansion, and this new permit will give employers more incentive to hire highly-skilled workers from overseas.  If these workers want to stay beyond the five years, they can apply for further three-year permits, which they can already do under current policy.

 

Skilled Migrant Category

 

There have also been improvements made to the Skilled Migrant Category, which is the major route by which skilled migrants are approved permanent residence in New Zealand. Recent research shows that it is working well.

 

Employment amongst skilled migrants is high with 93 percent securing employment within six months of obtaining residency. Job satisfaction is also high with over 80 percent of skilled migrants reporting that they are working at the same or higher skill level than in their home country.

 

Employer satisfaction is also commendably high with 81 percent of employers reporting that they are satisfied with the performance of skilled migrants. Retention rates are also encouraging with 87 percent of skilled migrants happy with New Zealand as a place to live and only 17 percent of the principal applicants approved between 1997 and 2005 have left for six months or more.

 

A recent OCED study found that New Zealand is better at matching immigrants to jobs than any of the other 17 countries surveyed. The report - A Profile of Immigrant Populations in the 21st Century: Data from OECD Countries, 2008 - rates New Zealand as best among OECD countries in matching immigrants with available jobs. This is demonstrated by New Zealand having the lowest proportion (9%) of immigrants holding jobs for which they are overqualified. 

 

However, we cannot afford to be complacent, so the government has made a number of policy improvements over the past year.

 

We have developed a more transparent definition of skilled employment and revised the bonus points system to better match market needs. The work to residence period has been increased from six to nine months with a longer period available before Skilled Migrants have to arrive in the country.

 

Students are also accessing the pathways post qualification to stay on and contribute to New Zealand. These pathways enable students eligible for the Skilled Migrant Category to access a one year open work permit, followed by a two year permit if they get a job in their skill area.

 

And the Department of Labour is working with the New Zealand Qualifications Authority to broaden the countries and types of qualifications on the existing list of Recognised Qualifications.  This will help to speed up processes around recognising migrants’ qualifications.

 

Active Investor Migrant Policy

 

A final policy area I would like to touch on is the Active Investor Migrant Policy that was introduced at the end of November 2007. The new policy is designed to provide residence to a small number of business people who want to invest in New Zealand firms. It changed the focus under the old investor policy from passive investment, to more active investment, where the money and the investors’ knowledge is likely to have the most benefit for New Zealand. 

 

I think it is important to be clear about the rationale behind the new Investor policy.  I know the National Party criticised this policy at the Lexis Nexis conference last week.  But let’s move from the rhetoric to what this policy is actually designed to do.  It is not about approving vast numbers of migrants – as was the case under National’s Investor policy where migrants had to invest only $1 million – enough for a nice house in Auckland, and simply place it into a bank account where it was of no benefit to New Zealand.  Not to mention the money-go-round scams and poor settlement outcomes of those Investor migrants.  This new Investor policy acts in New Zealand’s interests with a much stronger focus on active investments that add value to our economy. 

 

While the policy is still new, the government has already received 23 expressions of interest, and 20 invitations to apply have been issued to date.  One of these is for the Global Investor policy, which requires migrants to invest $20 million in New Zealand. Of the 12 applications received to date, they have the potential to bring up to $50.5 million in investments to New Zealand.  So already we are seeing some good results.

 

Conclusion

 

The government’s Immigration Change Programme is all about practical steps to make New Zealand’s immigration policy more effective. This makes your business as immigration advisors easier. Neither these practical improvements in the way we do day-to-day business, nor the ambitious legislative changes we are putting in place, would have been possible without the expertise furnished by the people here today.

 

We appreciate the support your Association and many of its individual members have provided in the development of new policies and legislation. A spirit of cooperation has informed all these changes, and made them relevant and workable. I look forward to continuing to work with you in this very same spirit as we face even greater challenges in the years ahead.

 

 

 

 

ENDS