Immigration is notoriously complex, with significant consequences attached to every decision and an intricate balance of competing interests. Despite these complexities, it remains an issue close to my heart in Government.
Vision for Immigration
A flexible, responsive immigration system that is user-friendly and efficient. Key components include timely decision-making, proper risk management, and focusing resources where they are most needed while adopting a lighter touch in lower-risk areas.
Four Priority Areas
To realize this vision, I have developed a comprehensive work programme focusing on:
- Rebuilding the Economy and Improving Productivity
- Delivering Better Public Services and Protecting Border Integrity
- Attracting Top Talent and Skills
- Advancing International Priorities, Especially in the Pacific
Balancing Workforce Needs
As Immigration Minister, my role involves balancing the need for businesses to access a capable workforce with providing employment opportunities for Kiwis amid rising unemployment. We aim to boost the economy, enhance productivity, increase exports, and cut job seekers by 50,000 within five years.
Operational Challenges
The immigration portfolio faces limited capacity, making it impossible to address everything simultaneously despite an ambitious work programme.
Inherited Challenges
The current Government inherited an overstressed immigration system from its predecessor. Previous policies were inadequate and failed to deliver on their promises.
Record-Breaking Net Migration in New Zealand: Challenges and Solutions
New Zealand has been experiencing an unprecedented surge in net migration. In 2023 alone, the country saw a net migration gain of almost 140,000 people in 12 months. This significant increase, initially propelled by the influx of lower-skilled work visa holders following the border re-opening, has led to substantial challenges for key services and infrastructure.
The impact is evident across various sectors. For instance, longer wait times to see a GP have become common, emergency departments are frequently overwhelmed, and there is an acute shortage of housing. In the education sector, with nearly 20,000 new students arriving, schools are bursting at the seams. The Ministry of Education (MOE) has struggled to deliver classrooms swiftly enough to meet demand. Additionally, there’s a massive increase in demand for ESOL (English for Speakers of Other Languages) support and a surge in students with undiagnosed additional learning needs. These factors collectively place enormous strain on an already overburdened learning support system.
Further complicating matters is the composition of this influx. The record migration numbers include a significantly higher proportion of low-skilled workers compared to the pre-COVID era. Although there is a need for entry-level positions in certain regions and industries, a higher proportion of skilled workers is essential to drive New Zealand’s economy and boost its productivity.
Despite the previous Government’s intentions outlined in their 2021 immigration reset speech, which aimed to improve the Immigration System Improvement and boost economic productivity, they inadvertently achieved the opposite. The surge in low-skilled and entry-level workers vastly outnumbered the arrival of higher-skilled migrants. This imbalance affected Kiwis directly as it became more challenging for MSD (Ministry of Social Development) to place local workers into jobs due to the influx of migrant workers filling these roles.
One critical issue was that the AEWV visa system was not delivering as intended. The timeframes set for processing were unrealistic—10 days for employer accreditation, 10 days for job checks, and 20 days for visa processing were never achievable targets. The pressure to facilitate rapid migration in 2022 led INZ (Immigration New Zealand) to take shortcuts and make hasty assessments without thorough verification.
Addressing these unsustainable levels of net migration remains a top priority for New Zealand’s current administration as they work towards balancing economic needs with sustainable growth.
Employer Support and Compliance in New Zealand
Employers are already making significant efforts to support New Zealanders, but a substantial number still approach hiring migrants as a mere compliance exercise rather than a genuine attempt to engage with the Ministry of Social Development (MSD).
For example, MSD has listed over 3,000 roles through Accredited Employer Work Visa (AEWV) associated listings since April. However, only just over 50 of those roles have been filled by New Zealanders—less than 2%. In contrast, when employers are not considering migrant workers, MSD has a success rate of 60% in placing New Zealanders.
This presents a challenge for all parties involved. While I understand why some employers may prefer migrants for various reasons, the future success of New Zealand hinges on supporting local workers. It’s crucial to avoid leaving tens of thousands of New Zealanders unemployed while simultaneously bringing in tens of thousands of temporary migrant workers.
I don’t apologize for the necessary pushback from Immigration New Zealand in situations where it’s unreasonable to claim that none of the 50 applications from New Zealanders for a lower-skilled job are suitable.
Skilled Migrants and Future Reforms
Once we finalize the AEWV review, we will focus on refining our skilled residence settings, including the Green List and Skilled Migrant Category, to better address skills gaps and bolster economic productivity. Currently, I don’t believe the existing Skilled Migrant Category residence settings are adequate. Besides the Green List, skilled workers need a degree, be in a registered occupation, or earn 1.5 times the median wage to gain residence through SMC.
This framework overlooks a category of skilled workers, especially tradespeople with years of experience who can train local workers but have no pathway to residence. Many employers express deep frustration over their inability to retain these skilled tradespeople due to this lack of options.
This needs to change. Early next year, we will contemplate how this can be improved. To all skilled trades facing no pathway to residence: we want you to stay.
If we aim to grow exports, build infrastructure, and rebuild the economy effectively, attracting and retaining skilled people is imperative. Changes to the SMC will be pivotal for this vision.
RSE & SPV Updates and Future Directions
Urgent Changes to RSE
To support our economic recovery, double our exports, bolster the primary sector, and strengthen our relationships with Pacific neighbours, we have introduced urgent changes to the Recognised Seasonal Employer (RSE) scheme that was announced yesterday. These changes follow substantial consultations with the sector and growers, reflecting on the impact of post-COVID settings and unintended market consequences. We aimed to balance reducing costs and compliance for employers while improving flexibility for RSE workers.
Specific Purpose Work Visa
As of today, the Government is advancing a time-limited pathway for essential seasonal workers through the Specific Purpose Work Visa (SPV). This pathway is designed to support employers during upcoming seasonal peaks by providing a new option under the SPV. The pathway maintains key requirements to uphold the integrity of our immigration system and ensure New Zealanders are given the first opportunity for roles. These requirements include:
- The role must be advertised.
- The pay rate must be at least $29.66 per hour.
- Employment must be for at least 30 hours per week.
- Reflecting seasonality, employment duration must not exceed 9 months.
Long-Term Pathways and Future Consultations
Consider a permanent, long-term pathway for seasonal workers as part of the ongoing Accredited Employer Work Visa (AEWV) review. Further consultations on this will be conducted shortly.
A Smart Immigration System
This term focus is to deliver an intelligent immigration system that:
- Targets key skill gaps in New Zealand and prioritizes higher-skilled migrants, ensuring we are well-positioned for economic rebuilding.
- Attracts top talent and facilitates foreign investment into New Zealand.
- Gets the basics right by delivering better public services through sustainable and efficient visa processing while effectively managing border integrity risks.
- Advances our international priorities, particularly in the Pacific region.
Restoring Balance to Immigration
The main goal is to restore balance to the immigration system through:
- Addressing New Zealand’s key skill gaps.
- Prioritizing higher-skilled migrants.
- Setting clear standards for accessing lower-skilled labour.
- Recovering the immigration system costs those who benefit from it.
- Utilizing immigration settings strategically to support international trade policy.
Reducing opportunities for migrant exploitation, supporting additional foreign investment in New Zealand, and establishing fit-for-purpose settings across work, study, and visitor visas. I aim for smart, flexible, responsive, and nuanced solutions that provide certainty within a stable and predictable immigration system.
