Thursday 11/03/2010

Wealthy elderly foreigners will be able to buy entry to New Zealand under plans originally rejected by immigration officials a decade ago.

Immigration Minister Jonathan Coleman has announced two new "retirement visas" aimed at increasing investment and stimulating the economy. Coleman said the new package delivered on an election promise to enable high-income foreigners of retirement age to live in New Zealand.

Under the plan they can apply for entry to New Zealand under a temporary retirement category if they have good health and character, can invest a minimum of $750,000 in New Zealand over two years, can demonstrate an annual income of at least $60,000 at the time they apply and have assets of at least $500,000. They must be over the age of 65 and must hold comprehensive health insurance for the duration of their permit.

Temporary retirees will be able to renew their permits as long as they continue to meet criteria, including investment funds, income and health insurance.

The Government is also making it easier for retirees who have family in New Zealand to settle here. Those who meet the criteria for the family parent category and can invest a minimum of $1 million over four years will be able to apply for residency.

Labour immigration spokesman Pete Hodgson said National was recycling an idea rejected by officials more than a decade ago. Hodgson released an August 1999 briefing presented to the then associate immigration minister, Lockwood Smith, that noted "significant risks" that at least some of the visa-holders' healthcare would be provided by the public health system even if they had health insurance.

The report said "there would be significant risks associated with retirement visas, with the two major areas of risk being the potential impact on publicly funded health services and the potential to create immigration problems".

Some measures could mitigate the risks, such as attaching financial and health conditions. However, hospitals could not turn away sick people even if they refused to pay for their treatment, the report said.

It was also doubtful whether elderly people on temporary permits would be able to gain health insurance, it said.

(Source Colin Epiner - Political editor - The Press)