The NZ Economy is in good health

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Chief Economist Tony Alexander's Quarterly Economic Forecast (BNZ)

Recent data releases show the New Zealand economy is in much better health than most people were thinking a year ago when surveys were showing very high levels of pessimism. Retail spending growth has accelerated, house prices are still rising, house sales are strong, and businesses are increasing their capital expenditure.

While the attention of most people will be on the housing market the growth in business spending is the most important thing happening in the economy at the moment. Businesses appear to have recognised that problems with getting skilled and unskilled labour in recent years are not going to go away. Expansion of output is now being sought increasingly through investment in more efficient buildings and more efficient plant and machinery.

In addition many businesses are investing in order to boost productivity and improve margins at a time when costs are rising for so many inputs such as labour, compliance, fuel and so on.

In addition the absence of very low interest rates two or three years from now means the cyclical decline in the New Zealand dollar will be limited. That means no export boom is in prospect either.

For those planning on boosting capital spending the recent rise in the Kiwi dollar is a positive development because most plant and machinery installed in New Zealand is imported. But the downside of the high currency is continued pain for many exporters which is likely to last through this year and into 2008 with the Reserve Bank fighting inflation caused partly by resource shortages and unlikely to cut interest rates until some time next year.

Activist guilty selling worthless work permits

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Friday February 16, 2007

A Maori activist has been convicted of selling worthless "Government of Aotearoa" work permits to two Thai nationals.

 

In a reserved judgment in the Auckland District Court, Judge Lindsay Moore dismissed the documents as "not worth the paper they were written on".

Sitting without a jury, Judge Moore found 53-year-old immigration consultant John Hikuwai, of Wainui Bay in Northland, guilty of charging Thaen Charoephan and Nongnuch Ruengsakul $500 each for the false permits. Hikuwai was also found guilty of three breaches of the immigration legislation by falsely declaring that the applicants understood the contents of a claim for refugee status before signing the documents.

"There can be no question but that the basis for each claim did not come from the respective applicants, but was a dishonest and indeed abusive exercise dreamed up by Mr Hikuwai and his associates who used it over and over again," Judge Moore said. A date is yet to be set for Hikuwai's sentencing.

In his written judgment, Judge Moore said the Thai couple, who are in their mid-40s, came to New Zealand in 1999. They had divorced and the woman married her sister's former de facto husband, who was living legally in New Zealand. Immigration authorities rejected her application for permanent residence.

Judge Moore said Ms Ruengsakul and Mr Charoephan then sought other ways to remain in New Zealand. They became associated with the Wat Thai Temple in Avondale, where they met Hikuwai.

The judge said Hikuwai and his colleagues persuaded the couple that their immigration situation would be enhanced by obtaining Government of Aotearoa work permits at a cost of $500 each.

(Source NZ Newspapers)

Read more: Activist guilty selling worthless work permits

Occupational Shortages Review

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Monday, January 29, 2007

The July 2007 Occupational Shortages Review is currently underway.

Job rule for migrants not working Carter admits

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Tuesday January 23, 2007

Ethnic Affairs Minister Chris Carter has conceded a policy requiring borderline skilled immigrants to get jobs within six months appears to be failing.

He discussed the issue with Immigration Minister David Cunliffe yesterday after earlier planning to bring it up at the Cabinet table before today's first Cabinet meeting of the year.

The Filipino Society has sent a 1300-name petition to Mr Carter, Mr Cunliffe and Prime Minister Helen Clark seeking a reinstatement of the former policy that gave skilled immigrants two-year work permits to find jobs which they could then use to apply for permanent residence.

The permits were reduced to six months from December 21, 2005. Migrants must now hold a job in their skilled field for at least three months in that six-month period to qualify for permanent residence.

The Herald reported last week that 617 people were granted six-month work-to-residence permits in the first six months after the new policy took effect. But only 19 (3 per cent) had gained permanent residence by the end of June.

Mr Carter said several people raised the issue with him at a Filipino festival attended by 4000 in Mangere at the weekend, and he agreed to take it to the Cabinet.

"If the statistics are right ... then clearly it's not working," he said.

Filipino Society president Agnes Granada said the Labour Department's own website advised immigrants that "even well-qualified migrants may take six or more months to find suitable employment", so a six-month permit was not realistic.

One migrant who was a senior executive in his home country told the Herald by email he received his six-month permit on September 15 but had to give three months' notice to leave his job and arrived with his wife during New Zealand's summer shutdown.

"This means that we barely have two months to go before our visa expires! With no job in hand, even though both of us were serving in senior executive positions back home, have we made the blunder of our lives?" he asked.

The Labour Department told interest groups late last year that the new policy was under review, and the Association for Migration and Investment has recommended extending the six-month permits to one year.

Association chairman Bernard Walsh (NZAMI) said yesterday that the latest business opinion survey showing a net 29 per cent of firms finding it harder to recruit skilled labour reinforced the case for easing the path for skilled migrants.

Mr Cunliffe said he told Mr Carter the issue was within the scope of an officials' review of the skilled migrant category and the Filipino petition had "sharpened the focus on that particular issue".

Officials were due to report back by about March.

How the scheme operates

* Most people granted permanent residence under the skilled migrant category get it immediately through points for their qualifications, work experience, age and current work or a job offer in New Zealand.

* Borderline cases may be given work-to-residence permits allowing them to work for six months, then gain residence if they have held a skilled job for at least three months.

* Of the 617 work-to-residence permits issued in the first six months after the policy took effect on December 21, 2005, just 19 were given permanent residence by last June 30.

Source; Simon Collins

Six-month permit too tough, say job-seekers

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Wednesday January 17, 2007

Electronics engineer Roberto Barrion has just received a job offer in his field after job-hunting for two months.

A controversial six-month limit on work permits for skilled immigrants is under review after only 3 per cent of intending migrants managed to gain residence in New Zealand in the first six months of the new policy.

The policy, introduced four days before Christmas 2005, gives immigrants permanent residence if they hold a skilled job for at least three months of their six-month permit. But migrants' groups say most employers won't employ people who are here on six-month-only permits.

The Association for Migration and Investment, representing immigration agents, says the Labour Department asked for comments on the policy late last year and the association recommended extending the permits to a year - although still less than the two years which applied before Christmas 2005.

Labour Department policy manager Lesley Haines said yesterday that the whole skilled migrant category was being re-evaluated. "It is too early in the process to say whether the work-to-residence policy will be an aspect that is evaluated. However, if the policy is reviewed, any feedback from migrants or communities will be considered."

Roberto Barrion, a 38-year-old electronics and communications engineer from the Philippines, has just received a job offer in his field after job-hunting for two months on a six-month work-to-residence permit. He left his wife and three young children at home until he could find a permanent job. "Since I arrived here I was under pressure. It's only now that I can relax," Mr Barrion said. "Ever since I arrived here it was very difficult - I'm always looking at the advertisements, the internet, the newspapers, friends."

He applied for jobs "almost every day" but got only two interviews in his field - one with a recruitment agency and the one that has landed him a job.

In the meantime he has been labouring at a window lock factory in Albany with six other Filipino engineers who have still not found work in their fields.

"Their visas expire next month. They are really in big trouble right now," he said. "I am luckier."

Labour Department figures show that 617 people were granted six-month work-to-residence permits in the first six months of the new policy. But only 19 (3 per cent) had gained permanent residence by the end of June last year.

More than 1300 Filipino immigrants sent a petition to Prime Minister Helen Clark and Cabinet ministers David Cunliffe and Chris Carter on January 5 seeking a reinstatement of the original two-year term.

"The policy on the work-to-residence deferral period of six months has proven to be ineffective, inequitable and inhumane as those who have gained entry into New Zealand under said policy have generally failed to secure employment in their field of skills," they said.

Filipino Society president Agnes Granada, who runs an employment support group through the Migrant Action Trust in Mt Roskill, said the department's own website advised immigrants that "even well-qualified migrants may take six or more months to find suitable employment".

"So why on earth do they have this policy when their own website says it may take more than six months to get a job?" she asked.

Migration and Investment Association chairman Bernard Walsh said his association had recommended to the Labour Department that the term be extended to a year.

How the scheme works

* Most people granted permanent residence under the skilled migrant category gain residence immediately through points for their qualifications, work experience, age and current work or a job offer in New Zealand.

* Borderline cases may be given work-to-residence permits allowing them to work for six months, then gain residence if they have held a skilled job for at least three months.

* 617 work-to-residence permits were issued in the first six months after the policy took effect on December 21, 2005.

* Only 19 of those people (3 per cent) were given permanent residence by June 30, 2006.

By Simon Collins 

Mel B. Libre: Migrants' dilemma is causing misery

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Friday January 05, 2007

Milagros (not her real name) is a licensed accountant in the Philippines. She had a stable job in a banking institution and earned enough to support her young family, rent a house and enjoy the little amenities in life.

With dreams of owning her own house, driving her own car and sending her children to a good university, she decided to emigrate to New Zealand after learning about the need for skilled professionals from a recruitment agency.

She realised she had to raise money for the many requirements, including an interview in Thailand.

When she got her six-month work-to-residence visa, she was ecstatic. She quickly resigned and borrowed enough money for her plane ticket and to keep her going for the first few weeks.

During the Christmas break, Milagros has not had the company of her husband and children in New Zealand. A kind homeowner has given her a small room and seen her suffer countless rejections in her job applications.

Her finances drained, she got work as a fruit picker, and with the six months almost up, Milagros may have to return home jobless, debt-ridden and emotionally scarred.

Many other professionals have come here under Amendment Circular No 2005/12 issued by Immigration NZ on December 20, 2005. The policy says: "Applicants may be approved for residence under Skilled Migrant Category policy at such time as they have become established in ongoing skilled employment for a period of at least three months during the six-month deferral period."

Another migrant, Angelita (not her real name), says: "I applied [for] a lot of jobs through the internet. Some I got from newspapers and through employment agencies.

"A lot of them ask what my visa is, and when I tell them the truth that I am on six months work-to-residence they immediately turn me down. My qualification suits their requirements but my visa is my problem."

Another migrant said: "I am weary and confused on what I am going to do because my six-months visa will expire on March 19. My family (husband and two kids) is with me here at Manurewa, South Auckland."

Another visa holder, Melinda (not her real name), said in exasperation: "This is now my dilemma. How can I get my permanent residence status if I will not be able to work in a related job where I do not stand a chance [of getting employed]?"

It is unfair, if not absurd, for Immigration NZ to have issued the six-month work-to-residence policy. Its website under the title Work Opportunities says: "Even well-qualified migrants may take six or more months to find suitable employment and will often need to move out of their specialist field."

It adds: "It is also common for highly qualified migrants to accept more junior positions than they held at home. Disappointing as this may be, it does provide new migrants with the New Zealand work experience most employers demand. These difficulties tend to diminish with time, but it is important to be prepared for a period of adjustment during at least the first year of residence."

The testimonies of many migrant professionals highlighted the policy's failure because of the following factors:

* Lack of understanding among potential employers on the status of a work-to-residence visa holder.

* Absence of any Government assistance in enabling applicants to find jobs where their skills are required.

* Limited time to adjust to the New Zealand culture, language and peculiarities and integrate into the society.

A petition signed by more than 1000 migrant Filipino professionals seeks, among other things, a review of the policy.

It wants the reinstatement of the work-to-residence two-year deferral period policy, and the extension of those covered by the present six-month work-to-residence by an extra year and six months, allowing two years to secure employment in their category of skill.

Milagros, like all the other applicants under the the present policy, says she is not asking for pity from the Government. She seeks equal opportunity in employment, a reasonable period to search for a job in her field of skill, and a chance to contribute her knowledge and skills to the development of New Zealand and its people.

Most important, she hopes to reunite with her family in this nation she wants to call home.

* Mel B. Libre is an Auckland-based journalist, songwriter and migrant rights advocate.

Pansy Wong: Ethnicity irrelevant to future prosperity

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Thursday January 04, 2007

Back in 1998, the late Rt Hon David Lange dropped a bombshell with his statement that Pakeha New Zealanders would one day be the minority in this country. His comments came after the decline in the polls of the popularity of Winston Peters, after he had peaked in 1996 at 18 per cent following his anti-Asian stance.

Soon after Mr Lange's statement, I was invited to appear with him on the long-running TV programme Asia Downunder, the only programme with a focus on Asian New Zealanders. When I asked him why he had said what he did, he told me that he wanted to "prepare" Pakeha.

Since then I have come to the conclusion that his statement also prepared Asian Kiwis like myself for the inevitable backlash that the growth in our numbers would release - so we could have ready the reasons people should not be afraid of this.

The latest release of data from the Census has attracted predictable media coverage, given that between 2001 and 2006, the Asian group was the fastest-growing population group, at 49 per cent.

These figures are not surprising for those who follow immigration trends and migration statistics.

However, the forecast that Asians will overtake the Maori population by 2021, to become the second-largest minority group, is unlikely to occur on two counts.

First, the Asian group does not share a common language, and before long more specific groups like Chinese, Indian and Koreans will emerge in their own right from behind the "Asian" tag.

Secondly, the changes made to immigration policy by the Labour Government in 2002 have resulted in a sharp downturn in the number of Asian immigrants, and we won't see them in the same numbers as in the early part of this century unless there is a policy change.

Labour's decision to require higher levels of English, and job offers for work in New Zealand, has been a backhand slap to our Asian communities, yet the Government continue to attend their functions, eat their food and praise their contribution to New Zealand. Labour needs to get real.

The number of net long-term Asian arrivals in the years to March 2002 was 20,214. Contrast this with arrivals for the year to March 2006 of 3153 and you can see that the predictions of Asians overtaking Maori do not stack up.

That I even have to debunk this comment is in itself bizarre. What is there to fear?

In the past week, reporters have asked me many questions about the forecast increase in the Asian population, and some of those questions were peppered with an unspoken apprehension about the effect of such an increase.

Despite me asking them what was there to fear, the feeling prevailed. I wonder if it would have helped if I'd told them we wouldn't make using chopsticks compulsory.

Having been part of a minority culture for over 30 years, I have not found life threatening, even though it may be frustrating. It's like being a soccer fan in a sea of Kiwi rugby supporters - you can still enjoy soccer and watch games (even if they are at odd times in the morning), while retaining your own identity.

The reality for New Zealand - our country - is that the world is getting smaller, and individuals who have acquired skills and the know-how to apply them in a global context will be in demand all over the world.

The challenge our country faces is not which group is bigger than the other, but that we won't be able to attract or retain go-getters who have the confidence to invest in our country to create employment and opportunities so we can enjoy our First World lifestyle.

Along with the population statistics, the latest Census revealed that 43.2 per cent of people who are aged 15 years and over had an annual income of $20,000 or less.

It is illogical to be debating the size of ethnic groups when we should be looking at ways to boost the wages of our lowest income earners. That is the real debate New Zealand should be having - because it affects New Zealanders of all backgrounds.

* Pansy Wong is National's Ethnic Affairs spokesperson.

Failed firm shows need to licence immigration agents

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Immigration Minister David Cunliffe says the reported case of hundreds of potential migrants allegedly owed money by a failed recruitment company highlights the need for his bill to licence immigration agents.

Immigration Minister David Cunliffe says the reported case of hundreds of potential migrants allegedly owed money by a failed recruitment company highlights the need for his bill to licence immigration agents.

The Press newspaper reported today it had been inundated with complaints about a failed Christchurch recruitment company the paper said owed 229 potential migrants about $600,000 in unrefunded fees.

"Cases such as this are good examples of why there is a need to regulate immigration agents and provide greater protection to those who use their services," Mr Cunliffe said.

"The Immigration Advisers Licensing Bill now before Parliament has been introduced to improve the standard of immigration advice.

"While there are many professional and helpful agents out there working in the interests of migrants, there are also those who abuse the trust of people wanting to start a new life in New Zealand.:

The legislation will make it an offence to provide immigration advice without a licence. Offenders could face a fine of up to $100,000, seven years imprisonment or both.

"In my role as an electorate MP I understand the impact unscrupulous immigration consultants can have on people's lives. That is why we have been working hard to ensure this new legislation is as robust as possible.

"The bill is progressing well. It is currently on the order paper awaiting its second reading. I look forward to this being passed into legislation as soon as possible in the new year."

Please also refer to Terra Nova Consultancy's news item on 12 September 2006.  

Immigration Policy amended

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Monday, December 11, 2006

The New Zealand Immigration policy has been amended to give effect to the New Zealand government’s sanctions against Fiji following the coup on 6 December.

Friday, December 08, 2006

The Government of New Zealand has imposed a number of sanctions against Fiji. The Department is taking appropriate actions to support the sanctions.

These sanctions relate to the following:

• Sporting contacts with Fiji
• Ban on the issue of work visas to Fijian citizens for the purpose of taking up work of a temporary seasonal nature.

For more information please  contact TNC  

 

New Immigration Act

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Tuesday, December 05, 2006

The government has unveiled a package of proposals for a new Immigration Act.