POLICY | 2014
Immigration
labour.org.nz/immigration
Key Points
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Labour is seeking to upgrade to an economy that can support skilled, well
paid jobs across the country. We need an economy that works for all New
Zealanders, migrant and non-migrant. Through better management of its
immigration system New Zealand can create more and better jobs.
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The market for skilled migrants is highly contested internationally. Unless
New Zealand can design a 21st century recruitment programme that is based
on what we can offer here we will not get the range of skills we require for a
strong economy with high paid jobs.
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Labour will reform the immigration system to lift New Zealand’s economic
performance toward a high-skilled high-income economy.
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Labour will manage inward migration to reduce the peaks and troughs in net
migration. Any changes to have more even immigration peaks and troughs
would not apply to refugees or to quotas under agreements such as that with
Samoa.
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Labour will direct immigration towards boosting regional development and
take pressure off major cities like Auckland through improving incentives for
migrants to move to the regions, and our Economic Upgrade.
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Labour will improve the operation of the immigration system to boost the
confidence of New Zealanders in the system. This will include seeking to
reduce the numbers of migrants who are on temporary status for long
periods.
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Labour will review the laws around migrant exploitation and provide
sufficient resourcing to improve reporting of offences and prosecutions of
migrant exploitation will occur. We will ensure those on work visas do not
take jobs that New Zealanders could be easily trained for or undercut wages.
This will be by boosting immigration requirements for training and requiring
payment of a living wage after accommodation deductions. For those on the
RSE scheme we will require payment to be at least $1.25 above the minimum
wage after accommodation deductions.
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Labour will establish a modern, fit-for purpose settlement programme.
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Labour will establish a Ministerial Advisory Group and work with Pacific
communities to ensure our immigration systems are working for them. This
will include reviewing Pacific quota allocations and family reunification,
migration policy for people at risk of climate change, and the RSE scheme to
ensure they are properly supporting our Pacific communities.
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Labour will review the Investor and Investor Plus visa categories.
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Labour will progressively increase the refugee quota to 1,000 after current
migration pressures have passed in order to do our fair share.
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Authorised by Trevor Mallard MP, Parliament Buildings, Wellington
Immigration and the Economic Upgrade
Labour is seeking to upgrade to an economy that can support skilled, well paid jobs across
the country. We need an economy that works for all New Zealanders, migrant and nonmigrant. Through better management of its immigration system New Zealand can create
more and better jobs.
It is a democratic sovereign nation’s right to decide how many people should be allowed to
migrate to that nation. In the context of New Zealand’s size, significant swings in migration
levels, under-populated regions, pressures on housing and jobs, and desire to grow regional
and national GDP, immigration policy assumes much greater significance for national
development.
In an effective immigration system designed to grow New Zealand’s economy the focus
would be on deciding what we want, achieving stable levels of migration, and attracting the
right people. The policy would be non-discriminatory in terms of ethnicity and country of
origin except to recognise treaty relationships and those with the Pacific. The focus would
be on what people bring and their ability to settle and contribute. To a greater extent than
is currently the case people would be judged to meet our criteria for immigration before
they get to New Zealand rather than, as is currently the case, many having long waits
without any guarantees that a visa will be granted.
The market for skilled migrants is highly contested internationally. Unless New Zealand can
design a 21st century recruitment programme that is based on what we can offer here we
will not get the range of skills we require for a strong economy with high paid jobs.
Labour will reform the immigration system to lift New Zealand’s economic performance
toward a high-skilled high-income economy.
Immigration and Regional Development
Around half of permanent arrivals to New Zealand move to the Auckland region. If our
policies were based on the development of some of our most promising regions this could
be a trigger for attracting some migrants to these centres.
This approach holds greater promise if a particular industry or types of industries were
clustered in a region for the recruitment of highly skilled migrants and businesses
specifically for that region. In this way immigration can be a critical input into regional
development and a brake on growing our cities even bigger.
There is no reason why over time we should not locate some newer industries and
enhance local industries in selected regional centres supported by smarter immigration
and investment policies. Migrants with particular skills that are consistent with the
opportunities provided in regional centres have the potential for a win-win situation for
New Zealand as well as migrants.
Appropriate incentives could be designed to attract the right people in the numbers
required. Presently under the points system for Skilled Migrants and Entrepreneur visas a
small amount of bonus points are available for locating outside of Auckland. More varied
and larger incentives under the points system coupled with an increase in the total number
of points required provide a way to incentivise larger numbers of migrants to move to
regions facing skill shortages and create more jobs there. This could be adjusted regularly
to ensure migrants are being incentivised to locate to the regions they are most needed
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Labour will increase the incentives through the points system for
migrants to accept jobs or establish businesses in the regions. This
will be adjusted as required to ensure migrants are directed to where
they are most needed. To encourage them to remain we will make
the residency process easier for those who have worked in struggling
regions for a number of years.
Labour will investigate the role of immigration in regional development
based on attracting people with specialist knowledge and skills required
in advancing the economic development of selected regions.
Labour’s Economic Upgrade will focus on investment, innovation and
industry to create more and better jobs in the regions.
Smoothing Immigration Peaks and Troughs
While migration can have a positive impact on the economy high rates of net migration has
been seen by a Reserve Bank study to be a driver of housing demand which has impacted
on house prices, consumer confidence, in turn influencing consumption and general price
inflation.
Scenario 2 in the Budget 2014 Economic and Fiscal Update, which is based on net
migration being over 40,000 people, forecasts pressure on both housing and inflation,
and that “… additional consumption is funded through increasing levels of household debt
and this constrains consumption growth further as debt servicing costs increase”. Treasury
predicts in this scenario that the 90 day bill rate would be increased by a further 100 basis
points.
The peak in migration is expected to take place later this year and high levels of migration
to persist for a further two years. After this point it is likely any short term/cyclical
restrictions on migration could be lifted.
Net migration into New Zealand has varied from negative 2,000 to a net gain of 40,000
people each year. Immigration tends to be pro-cyclical, with higher net inwards migration
rates coinciding with strong local economic conditions.
A Treasury working paper has recently argued that “immigration policy should be more
closely tailored to the economy’s ability to respond to population increase” (Migration and
Macroeconomic Performance in New Zealand: Theory and Evidence, April 2014), while the
Reserve Bank has linked immigration to house prices, estimating that a 1 percent increase
in population causes an 8 percent increase in house prices over 3 years. (Migration and the
housing market, December 2013).
However, over the longer term, immigration can also have a significant positive effect on
our economy, with NZIER finding a positive impact on per capita income (NZIER Insight,
44/2014). During periods of economic downtown in particular, increased immigration
might help to lift growth.
Labour is committed to a multicultural New Zealand and we value diversity. We are
committed to immigration that not only meets economic priorities but which contributes
to social objectives and to New Zealand’s vibrant multicultural society.
However there may be a case for varying inward migration and/or work permits in a
counter cyclical manner meaning lower rates of immigration in some years and higher
in others. This would require consideration of a range of factors, including the lag time
between approval and arrival, the wage effects of inward migration at times of supply
constraints, and the need to meet skill shortages. This could involve adjustments to the
immigration points system, skills shortage lists, or permit levels for accredited employers.
Labour is committed to humanitarian immigration – we recognise the importance of
provision of refuge and that it is separate from economic immigration policy. Accordingly
any changes to smooth immigration peaks would not apply to refugees or to quotas
under agreements such as that with Samoa.
Labour will manage inward migration to reduce the peaks and troughs in net
migration to take the pressure off an overheated housing market, while ensuring
that the skilled labour required for economic growth is prioritised.
Operation of the Immigration System
A wide range of issues and concerns have been raised about the operational immigration
system that have labelled its decisions as inconsistent, focused on quantity rather than
quality of decisions, aimless, and devoid of strategic purpose. An immigration system
that produces this range of issues has become too focused on its administration at the
expense of its overall purpose.
In the context of Labour’s reforms we can expect a more creative focus on attracting and
retaining good migrants rather than the focus on the operational immigration system.
We need to ensure that there is a line of sight from the purpose of immigration to the
selection of good migrants, to assisting them in their arrival and settlement and to their
integration into New Zealand society by focusing as much on the communities in which
they settle as the migrants themselves.
There have also been significant issues of fraud highlighted in the immigration system. For
New Zealanders to have confidence in the immigration system they must be convinced
that such practices are detected and dealt with. New Zealanders also need to have
confidence that immigration is not being used as a way to drive down wages or avoid
employment laws.
Labour will bring a fresh approach to the operational immigration system based
on how New Zealand wants to develop as a nation, confident recruitment and
selection methods, elimination of immigration fraud, more effective processing of
applications; the primacy of being together with immediate family, and avoiding
people being suspended for long periods on temporary status only to be told in
the end they risk deportation.
Migrant Exploitation and Growing New Zealand Jobs
Significant numbers of cases of migrant workers being exploited have come to light in
recent years particularly in Christchurch however little action is taking place to address
this. Last year in Christchurch no prosecutions were completed under either labour or
immigration law to address migrant worker exploitation. Significant numbers of cases
of immigration fraud, including illegal job selling, have been brought to the notice of
Immigration New Zealand yet little is being done to resolve them.
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The Government has put forward proposals to increase penalties for migrant worker
exploitation however it has committed little to ensuring the rules around migrant
workers are enforced. The law will still depend on migrant workers coming forward. That
is a highly risky proposition for a worker new to New Zealand whose visa status often
depends on their job. The Government has also been dragging its heels particularly on
the protection of fishing crew which have had significant reports of mistreatment and
underpayment of crews.
Labour will review the laws around migrant exploitation and provide sufficient
resourcing to ensure reporting of offences and prosecutions of migrant
exploitation will occur.
Labour will prioritise ensuring every fishing vessel operating in our waters
including our EEZ, be New Zealand flagged meaning all of our laws and
regulations apply to them.
The Government has also failed to ensure that we are providing enough job
opportunities for New Zealanders. There are over 100,000 migrants in New Zealand
on work visas for less than two years yet at the same time there are 147,000 New
Zealanders unemployed. A significant number of migrant workers are being brought
in for relatively low skilled jobs on low rates of pay and having deductions from their
wages for accommodation and transport which leads to undercutting of the local
labour market. This is not fair either on New Zealander workers or the migrant workers
involved.
Employers are able to apply in advance to Immigration New Zealand for ‘approval in
principle’ to bring in temporary workers from overseas. The vast bulk of applications
are approved. It requires Immigration New Zealand to conduct a “labour market test”
to see whether any New Zealanders are able to do the job or can be readily trained
to do the job. The obligations on employers are passive, i.e., they are only required to
advertise for the job.
Labour will require businesses to give Kiwi workers a fair chance before they’re given
the right to bring in workers from overseas and ensure the rates of pay they are
offering are fair. These changes will put in place measures to ensure Kiwis are given the
priority they deserve and ensure the system isn’t undermined at the same time as still
allowing employers with a genuine need to get the labour they require.
Labour will require employers bringing in overseas workers to pay a living
wage after accommodation deductions where the job offer forms a part of the
reason the application is accepted.
Labour will require wages for workers on the Recognised Seasonal Employer
scheme to be paid at the rate of at least the minimum wage plus $1.25 per hour
and with accommodation provided in addition to the wages.
Labour will require employers to actively engage with agencies and industry
to establish they have exhausted all options to find New Zealand workers for
vacancies before they are given approval.
Labour will require employers to actively engage with WINZ and Industry
Training Organisations before they are given the right to bring in workers from
overseas.
Where industries have a high demand for migrant labour on low wages Labour
will work in partnership with industry bodies to develop industry training
plans and address other barriers to a sustainable domestic workforce, working
with employer representatives and unions. If pay is the issue, we will look to a
market response that is consistent with lifting economic performance toward a
high-skilled high-income economy.
Labour will give Immigration New Zealand discretion to require employers
to commit to training Kiwi workers, including through joining these industry
training plans, as a condition of the approval where appropriate (e.g. in trades
where the duration of the approval matches the training duration of the
particular trade).
Labour will facilitate consideration of residence applications for people who
have legally been here on work visas since 2009.
Labour will ensure there is sufficient support and resourcing for auditing and
compliance monitoring.
Labour will review the need for some consequences for employers who
misrepresent the facts in an ‘approval in principle’ application or for not
following through on the commitments made in that application.
Living wage requirements will not fully apply to visas under a specific agreement or the
Recognised Seasonal Employer scheme.
Immigration and Settlement
Immigration affects all citizens and communities. However the bulk of our post-arrival
settlement programme focuses on migrants. We know that migrants will inevitably
undergo changes in almost every facet of their lives, especially those who come from
societies vastly dissimilar to ours.
We also know that progressively our society will change as a result of immigration.
Providing high quality settlement services during the post arrival period is an
investment in smooth transitions for migrants and necessary adjustments by the
host populations. Migrants from significantly different cultures and societies to New
Zealand will require considerable assistance in the settling phase.
Currently the post-arrival settlement programme has a narrow focus that does not
address the changes taking place in our communities. The Settlement Strategy needs
a thorough review with engagement with migrant and local communities in order to
arrive at a coordinated and refreshed strategy and programme for settlement.
Labour will develop its resettlement programme strategy in collaboration with Pacific
communities for those who come to New Zealand under the Samoan Quota and the
Pacific Access Quota. This plan will include educational models covering employment,
education, health, housing, law and order, citizenship, and information on opportunities
available for settlement in regions outside of Auckland.
Labour will establish a modern fit-for-purpose settlement programme based
on international best practice and which is designed with local communities
and government agencies and which will be required to address the
adjustment needs of migrant as well as local communities.
Immigration and the Pacific
New Zealand has long-standing ties and a unique set of relationships with the Pacific
island nations including the Samoan Quota, the Pacific Access Quota, the Treaty of
Friendship with Samoa and the Recognised Seasonal Employer Scheme. New Zealand
is expected to take a leadership role and to be seen to be doing so.
Auckland is the largest Polynesian city in the world. Pacific families have close and
regular connections with the island. Many extended families are able to provide
support and care for their elderly or sick relatives who live in New Zealand from
time to time. Immigration systems should be sufficiently flexible to enable such care
arrangements to continue when they are required from time to time.
One method for addressing this dilemma is to use the concept of circular migration
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to provide regular access to groups of people to work in New Zealand for part of the
year and to return to the Islands for the remainder of the year. This enables remittances
to be provided for the subgroups dependent on the person in the Islands as well as
fulfilling their traditional roles when they return. Circular migration is a development
is not dissimilar to the seasonal workers scheme and could also be seen as aid to the
islands.
Labour will establish a Ministerial Advisory Group to examine the outstanding
immigration issues with Pacific countries with a view to recommending lasting
solutions reflective of our special relationship with Pacific Island states.
Labour recognises the contribution Pacific quotas make to enabling migration from
countries with long-established links with New Zealand, and welcomes the re-entry of
Fiji back into the quota system. Labour also recognises that these quotas are often not
related to the size of island populations, or the benefits mobility opportunities might
bring to developing island states. In addition the National government’s recent changes
to migration arrangements have made it disproportionately difficult for Pacific island
families to be reunited in New Zealand, even when most of the family have been living
and working here for long periods. Changes could involve moving family reunification
within the Pacific quota system with an appropriate adjustment or general changes to
the rules.
Labour will review the family reunification categories and Pacific quota to
ensure they are accessible for Pacific people, are working effectively, are
consistent with wider Pacific development commitments, ensure that Pacific
families are not excluded from family reunification possibilities, and allow
Pacific families access to family reunification and family visits on a similar basis
to that which applied under 2008 policy settings.
Labour recognises that some communities of the Pacific face real threats from climate
change, and that in some countries, increasing numbers of people will need to find new
homes in future years.
Labour will work with regional partners and organisations, and review migration
policy in relation to peoples of the Pacific under real climate change threat, to
ensure they have real and timely options for mobility across the region.
Labour will work with the Pacific communities to investigate and address the number
of Pacific people with irregular immigration status in order to curtail the increase in
immigration scams and to reverse the increasing number of young Pacific people who
are, through no fault of their own, missing out on education, medical and hospital care
as a result of their parents’ irregular status.
Labour recognises the success of the Registered Seasonal Employers (RSE) scheme,
which has enabled people from Pacific countries to come to New Zealand on restricted
temporary visas, contribute to seasonal work, and take their earnings back to island
communities where they make a significant contribution to daily living, costs of
education, and more.
Labour will continue to monitor the effectiveness of the RSE scheme and
its contribution both in New Zealand and the wider Pacific, with a view to
enhancing these contributions in the future.
Labour will enhance the Recognised Seasonal Employment Scheme by
extending the scheme to include industries with labour shortages and also
require the wages for workers on this scheme to be paid at the rate of at
least the minimum wage plus $1.25 per hour with accommodation provided in
addition to the wages.
Investor Categories
The Investor and Investor Plus categories created by the Government provide
significantly lower requirements for immigration of those who invest a significant
amount in New Zealand. Under the Investor category a person can gain residence by
investing $1.5 million in New Zealand. Under the Investor Plus category if they invest
$10 million the immigration requirements for age, business experience, and speaking
English are dropped and the person only needs to live in New Zealand for 44 days per
year.
These categories create some serious concerns around the fairness of our immigration
system and whether people being granted residency have sufficient ability to adjust
to life in New Zealand.
Labour will review the Investor and Investor Plus visa categories.
Refugee and Asylum Seekers
New Zealand has not increased its quota of 750 refugees since it was established
in the 1980s despite a significant increase in demand for resettlement. The National
government has offered to take 150 asylum seekers a year from Australia’s off shore
centres in Nauru and Manos Island with this number being deducted from the quota
of 750. It has further allocated 300 each from Asia Pacific and the rest of the world.
Labour will progressively increase the refugee quota to 1,000 after current
immigration peak pressures have eased.
The government passed an Immigration Amendment Act in 2013 to manage arrivals
by boat of more than 30 asylum seekers. This group will be treated differently from
other refugees and asylum seekers in that they can be subject to arbitrary detention
for up to six months, their application for permanent residence will not be assessed
until three years after they were first granted refugee status and family reunification
for this group will be limited to immediate family. Labour will repeal and replace the Immigration Amendment Act to be fully
consistent with our commitments under international conventions. 8
Authorised by Trevor Mallard MP, Parliament Buildings, Wellington