To the Right Hon. Jacinda Adern and the Hon. Iain Lees-Galloway,

Welcome to Government. I am looking forward to the next 100 days. I am hoping some of rank injustice created by your predecessors will be swept away.

You said your Government will be empathetic. I am hoping you’ll have some empathy for those New Zealanders whose parents have been left in limbo since the National Government’s cancellation of the Parent Category.

A large number parents started application processes knowing they met the criteria for residence. The criteria were certain; the process predictable – albeit it a bit long. There was no hint that the rug would be pulled from under their feet.

Since then they have shuffled back and forth between New Zealand and a place they no longer regard as home because the children and grand-children are here. The stress and uncertainty has been significant. All they want is to know what is to become of them.

Your coalition partner might be critical of the parent category for allowing a group of people access to pensions when they have not contributed. But that is an issue of welfare reform not a failure of immigration policy.

It’s also not a reason to do leave things as they are.

The other injustice is the interim visa expiry date rule. At present the rule means a visa expires as soon as a decision is made. If that decision is to decline the visa and the old visa has already expired, the applicant becomes an overstayer 1 day later.

The rule renders people unlawful when they have no desire to become so.

If they wish to depart they do so with a stain on their immigration history as it is often impossible to arrange a departure within 24 hours of the decision especially after several years here.

From an administrative perspective it is creating a balloon of requests for visas that is creating unnecessary work for your Immigration Officers.

Finally, please let us know what is going to be done in regard the work visa right for international students. We are all expecting some change here. Given the impact this change will have on the export education sector and those already here, certainty is needed – quickly.

Aaron Martin

Principal Layer NZIL

With Labour looking to create 100,000 new houses for first home buyers within the next decade, who is going to build these homes? With the building industry already facing a labour shortage and currently filling the skilled positions with overseas workers, who will be left to fill the demand when immigration numbers are cut?

This morning reporter Tom Furley from Radio New Zealand discussed the potentially compromising position the New Zealand Government have put themselves in with their plan to cut immigration numbers.

The new government is promising to build 10,000 houses a year, but some in the construction sector doubt a stretched labour supply will be able to keep up. Labour’s $2 billion KiwiBuild scheme aims to produce 100,000 new houses for first-home buyers in the next decade.

For months now the building industry has been suffering from labour shortages and turning to overseas workers to fill skilled positions.

Recruitment company Tradestaff said they continue to have more jobs than people to fill them.

General manager Janice McNab said she could not see how an additional 10,000 homes can be built.

“While the idea of it I applaud … I can’t comprehend that that could happen, given current resourcing levels. Even with apprentices coming through the system, we do not have the capacity to be able to do that.”

Leighs Construction head Anthony Leighs said the whole industry was already working through unprecedented demand, with both residential and commercial builders relying on the same limited labour pool.

“Everybody is under significant pressure and while the industry has the ability to grow its capacity, to insert an additional 10,000 houses on the current level of work out there will certainly be challenging and it will push the industry in some ways into territory it hasn’t been to before”

The new government has reassured that, while immigration would be reduced, nothing would constrain the construction industry’s ability to get workers.

It plans to issue an extra 1500 new KiwiBuild visas to fast-track temporary foreign workers.

But employers using the scheme would need to take on a trainee for every foreign worker they hire.

Warwick Quinn, the chief executive of industry training group BCITO, said that was likely to encourage more companies to take on apprentices and build on the numbers entering the industry.

“Ten percent of firms are training 100 percent of our apprentices and if we can expand the number of firms willing to train by offering them more flexible options and a bit of carrot and stick stuff at the same time we could well fulfil the needs we require in helping fill the shortfall.”

Mr Quinn said building another 10,000 houses a year would be a challenge.

“But then again knowing there’s going to certainty of supply through some government support and guarantee for the next decade means theoretically during any recessionary times or when times get tough from a market perspective there’s going to be that continuous level of activity.

Registered Master Builders head David Kelly said while initially the residential sector had “questioned the idea” he was pleased to see the government’s plans.

“I think it’s encouraging in terms of some of the thinking they’ve done and the planning they’re starting to do.

Chief among plans is a move to enter more public-private partnerships with big firms Fletcher Residential, Ockham and Mike Greer Homes already approached by incoming minister Phil Twyford.

“That’s certainly the way it needs to go. It needs to involve those larger scale residential construction companies and I believe those companies are up for it if they’ve got the certainty around finance and the number of houses the government is going to contract with them to deliver. So I think it’s a good start,” Mr Kelly said.

He noted 10,000 homes would not happen in the next 12 months, but was optimistic.

“It will be that planning around where, what type of building, the joint venture arrangements with residential construction companies. If those things are done well I don’t see why we can’t achieve the goal.”

‘We’re going to build whole new communities’

Incoming Housing Minister Phil Twyford told Morning Report the new government will invest in trade training and apprenticeships and bring in foreign workers to help meet the target.

He agreed that there were skills shortages, but the new government had a plan to fix that.

“We’re going to invest massively in trade training and apprenticeships for young New Zealanders. The second thing is, because the former government didn’t invest in the workforce, we’re going to have to bring in skilled people from overseas, just like the former government did after the Canterbury earthquake.”

which would include some already underway.

“We’re going to partner with the likes of Auckland council, with Ngāti Whātua, if they want to, and other developers and investors, and we’re going to build whole new communities. And they will include large number of affordable homes, and state housing as well, and market housing.”

Mr Twyford will be sworn in as Housing Minister today.

What are your thoughts on Labours policy to cut immigration? Do you believe it will take a great toll on the building industry?

Immigration cuts to net migration

New Zealand’s new prime minister Jacinda Ardern has vowed to honour Labour’s election promise to cut net migration to 20,000 to 30,000 a year.

She also predicted that New Zealand will be facing an economic slowdown which she plans to prepare for:

“Certainly there were signs of an economic slowdown, “Ardern said.

“It was only fair of Mr Peters to reflect what might be on the horizon for this new Labour-led government, to make sure that people have some anticipation that we will potentially have a rocky road in front of us.”

It was the government’s job to manage the economy if it was affected by the international outlook, but the government couldn’t always control what it faced.

On Newstalk ZB, Ardern was asked whether she might have been better off spending the next three years in opposition, rather than going into government with NZ First, which could have given Labour a good chance of a strong result in 2020.

“You cannot take these moments in time and view them with political expediency,” she said.

“The decision we were making was not about what was the best political opportunity for Labour in the long term but what presented us with the greatest opportunity to deliver change for New Zealand and the New Zealanders who need us to deliver change.”

Concerned about your visa status? get in contact with NZIL today to see how we can assist your pathway to residency.

What Impact will Winston Peters bring to the migrant community?

The results of the election suggest the next year will be very interesting for the migrant community.

As predicted, Winston Peters is kingmaker. For 21 years Peters has pushed an anti-migrant platform, and we can expect that any coalition deal New Zealand First makes – whether with Labour or National – will include some attempt to curtail immigration numbers.

However, both major parties promised large-scale infrastructure works in this election. These projects would place enormous pressure on the market that could only be relieved by labour and skills from offshore.

Already many employers have discovered that “the skills shortage” has just become plain “labour shortage”, and they are struggling to fill essential positions. I predict greater pressure on the government from employers for work visas.

Therefore, I speculate that any coalition deal will put some restraint on New Zealand First efforts to cut migration numbers.

Several legislative changes this year already make it more difficult for migrants to live and work in New Zealand. Dramatic changes to residence visa rules have reduced the number of people who qualify for residence. And major changes to work visa rules have tightened time restrictions on how long migrant workers can stay. Many migrants, particularly in the lower-paid restaurant industry, will have to apply for repeated one-year work visas until being forced to leave the country after three years. Some will also find it much more difficult for spouses and children with them to New Zealand.

These changes are likely discourage people from accepting jobs in New Zealand, putting further pressure on the labour market.

Employers will need to develop new pathways for skilled migrant workers to obtain residence. They will need to familiarise themselves with the new rules to establish how long their workers will be able to stay in New Zealand so they can plan their human resource capability over a business cycle.

People coming to New Zealand for work with a view to migrating permanently will also need good practical advice to avoid errors and unexpected surprises along the way.

Migrants and employers both need expert guidance to ensure the new rules can work for them.

The issues are not insurmountable, but it’s good to have experienced advocates looking after you.

That’s us! If you want to establish your pathway, or develop a plan for future staffing needs, get in touch.

Investor 2 Visa changes cause a dramatic drop in applicants

What is Investor 2 visa category ?

The Investor 2 visa category is a visa based on an applicant willing to invest substantial amounts of money into the New Zealand economy.

Previously under the investor 2 program, points were awarded for business experience, level of funds being invested and age. It was a demand driven system with only 300 approvals per year. The type of investments that were acceptable were wide and all had the same standing.

Demand for this visa type meant the minimum investment amount was increased By IMNZ from the legal minimum of $1.5 million to $2.75 million. The previous policy yielded substantial foreign investment in New Zealand.

Demand for residence using this method was substantial and the category began to become oversubscribed.

Previously we predicted that the changes to the investor 2 category may have an adverse effect on “the market”. The previous iteration of the policy was the most successful we have seen in our 20 years of experience.

Investor 2 Visa | NZ immigration Law changes 2017

In May 2017 this popular and successful migration program was dramatically altered. All applicants now have to invest a minimum of $3 million, but greater credit is given to investments outside Government Bonds. Bonds were under the old system the most preferred form of investment because of its safety.

In an effort to drive more value out of investor category applicants, the Government is giving more points if an investor category applicant places a portion of their funds into higher risk investments.
Investing in higher risk areas also provides the ability for the investor applicant to reduce the level of time they must spend in New Zealand during the investment period.

The first under the new rules took place on 1 June. It was advertised that the top 25 scoring applicants would be invited to apply for residence. However no one expressed an interest in applying for residence by this category. No draw took place.

The 2nd draw on 15 June also stated the top 25 scoring applicants would be invited to submit a residence application. Only 5 people expressed an interest in applying this way.

The next selection will take place on 29 June. At the time of writing there are only 2 people expressing an interest in applying for residence by this method.

That does not bode well.

Did the Government get too greedy?

Or did somebody in Wellington forget the old adage: if it ain’t broke don’t try and fix it…

The unforeseen consequence of the immigration law changes is that New Zealand employers will struggle to fill roles on the skilled shortage list under the new system.

Analysis of the new immigration law changes has so far focused on the effects on the economy and the flow of migrants. But there are several other ramifications of the recent law changes that have been overlooked.

As the changes restrict pathways to residence under the skilled migrant category, New Zealand employers will find it more difficult to fill positions. Some employers may have roles available that would have been previously been defined as skilled jobs but with the new income thresholds that will no longer be the case.

Under the new rules, these jobs will no longer be considered highly skilled unless the salary is over $49,000. This will affect industries where the local labour pool is not adequate to meet the demand.

Changes to the required wage threshold for migrants will also hit employers who have existing employees on work visas. Employees holding essential skills work visas who earn less than this will now have to leave New Zealand after 3 years, and face a stand-down period before they can apply for another visa. This means an employer will have to find and train someone else for the role.

The salary threshold will particularly affect provincial employers who cannot meet the salary threshold to allow their migrant worker to transition to residence.

“I believe the government is attempting to reduce the flow of migrants, and attract only the top echelon of skilled labour who meet the new criteria for a pathway to residency. The consequences of these new restrictions will have a severe impact on employers and New Zealand businesses in an already limited labour market.” Aaron Martin, immigration law expert.

Another major change that will affect employers is that partners and children of migrants on a work visa will be given only visitor visas. Partners and children will no longer automatically be entitled to a work or student visa themselves, and will gain these visas if they meet the requirements in their own right, or are prepared to become international students. This further limits the options for employers who are finding it difficult to fill lower-skilled roles.

“We’re facing a major skills shortage and now it is even more difficult to recruit from offshore. The overall  impact will be businesses will find it increasingly hard to find the talent pool that they need” says Aaron Martin.