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NEWS

A variety of immigration, business and general news articles taken from New Zealand newspapers, websites and other sources (sources are mentioned at the bottom of each article) and selected by Terra Nova Consultancy Ltd. It may assist the reader being more or less up-to-date what is happening in Aotearoa, "the Land of the Long White Cloud". Happy reading, enjoy ... and if you have any questions on these updates - please contact us...

Newest article always on top.

Sep
15

15/09/15 - Calls for wealthy migrant investors to put more into local start-ups

Business leaders are proposing that wealthy migrant investors be required to put more of their money into productive local companies with high growth potential.

Among those calling for the change is The Icehouse. It offers mentoring and support for start-up companies. It wants to see at least 10 percent of wealthy migrants' funds put into the start-up sector.

It estimates this could generate an extra $50 million and $100 million a year in investment into local companies.

KPMG is also calling for change. It calculates that New Zealand businesses will require more than $420 billion in capital by 2025. But there will be a shortfall of $115 billion.

It believes that wealthy migrant investment is one way to help make up this shortfall.

"There is evidence that start-up and early stage New Zealand businesses are likely to face the most severe funding constraints, compared to their established peers.

"Investor migrants have the potential to provide a vibrant pool of capital, which can be a part contribution to addressing both of these issues."

New Zealand introduced a wealthy migrant category in 2009. Around 1500 applications have been approved, approved in principle, or are under consideration and another 300 applications are imminent.

The wealthy migrants are bringing around $4 billion with them.

But The Icehouse estimates that around 80 percent is being invested in bank bonds and deposits.

Chief executive Andy Hamilton says "this has very little economic impact and ultimate benefit for New Zealand".

"We are proposing that at least 10 percent of wealthy migrant capital is placed into growth investments, such as angel investment, venture capital or private equity growth funds."

These are riskier investment classes. So the proposal would allow for up to 90 percent of the migrant's capital to be placed in lower risk investments, such as bonds and bank deposits.

Angel investors, venture capital funds and private equity investors are all putting money into New Zealand's start-up sector.

But Mr Hamilton says their research has concluded that only around half of the capital needed by young companies is likely to be available for investment.

"An untapped source of capital are wealthy migrants who want to live in New Zealand. Other countries require these migrants to commit a portion of their investment to growth opportunities."

He points to the example of Australia, which introduced similar rules earlier this year.

Canada also requires a portion of investor migrants' funds to be placed in "at risk" investments.

This is through investment in venture capital and private equity funds, which invest in start-up businesses in those countries.

Canada requires the money to be invested for fifteen years and Australia for four years. This compares with New Zealand where the requirement is for between three and four years.

KPMG says the longer investment timelines make investor migrant capital a particularly "sticky" form of investment. But it says the Canadian 15 year requirement could be too long.

So it is proposing three changes:

  1. Fast tracking investor visa processing if investments are made into active investments.
  2. Require active investments after a one year transitional period.
  3. Compulsory investment making a certain proportion of the investment into at-risk investments, and relax other requirements such as physical presence and English.

Currently "Investor Plus" migrants have to invest $10 million in New Zealand for three years. The "Investor" category migrants must invest $1.5 million for four years, they must have three years business experience and they must be aged under 65.

KPMG's proposal is for the Government to reconsider the policy settings for the 'Investor' and 'Investor Plus' categories to require a percentage of investment funds (for example 20 percent) to be invested in venture and angel capital or similar types of investments.

It says this could be through a designated fund which has the same investment profile (portfolio) as the New Zealand Venture Investment Fund (VIF).

"This would offer some comfort to migrant investors that the portion of their investment capital 'at risk' is being invested in early stage companies that the New Zealand Government is happy to support through VIF (i.e. investor migrants would get the benefit of the due diligence carried out by VIF on these companies)."

It says more "adventurous" investor migrants could be given the option of investing the "at risk" portion of their investment funds in privately managed venture and angel capital funds.

(Source 3 News)

Our comments: 

This is strong lobbying from businessleaders and will result in tweaks and changes in the investor category applications in due time. Time frame? My rough guess, in 6 to 12 months time.

Sep
08

07/09/15 - New Zealand to take 750 more Syrian refugees

The Government has today announced New Zealand will welcome 750 Syrian refugees over the next two and a half years in response to the ongoing conflict in Syria, says Immigration Minister Michael Woodhouse.

Of the 750 places, 600 will be by way of a special emergency intake above New Zealand’s annual refugee quota of 750, and 150 places will be offered within the quota.

“Like most New Zealanders, the Government is very concerned at the humanitarian crisis now unfolding in Syria and Europe that has visibly worsened in recent times,” Mr Woodhouse says.

“That’s why we will dedicate 150 places for Syrians within the existing 2015/16 annual quota of 750.  On top of that we’ll take in another 100 Syrians in this financial year, and a further 500 over the next two financial years (2016/17 and 2017/18). 

“This means a total of 750 Syrian refugees will be welcomed into New Zealand over the next two and a half years.”

Mr Woodhouse said the cost of the additional places is estimated at $48.8 million over two and a half years. This is on top of the $58 million the Government already spends annually on resettling refugees.

“This commitment will be in addition to any decisions that may come out of the standard three year review of the refugee quota which will take place in 2016 as planned.

“Today’s decision is an appropriate response. Official advice is an immediate intake of any more than the extra 100 announced today for this year could put unreasonable strains on services, affecting the quality of resettlement outcomes for all refugees in New Zealand.

“There are practical limitations around our ability to provide enough housing, translators, health services -  all factors we need to take into consideration,’’ he says.

Today’s announcement is comparable to New Zealand’s response to the conflict in Yugoslavia in 1999 when we offered to take an extra 600 refugees.

The Government will continue to monitor the situation in Syria closely and review the possibility of further assistance during the 2016 quota review.

Notes:

What is the process for the 600 additional places and how soon will the refugees arrive in New Zealand?

The process for the 600 additional places will be the same as any intake under the current quota. 

The UNHCR carries out its own screening process and does not refer high risk or complex cases for resettlement.

In addition to this, all cases submitted for consideration undergo robust assessments as part of INZ’s decision-making process. That includes on and off-shore screening and assessment that focuses on credibility, risk and settlement to ensure that the person is not a security risk or character of concern to New Zealand, and that settlement in New Zealand is the right option for them. 

INZ also specifically carries out its own security checks alongside NZSIS, biometric checks and health assessments.

INZ will undertake an initial mission to Lebanon in October and another in December for the current year.  The first 100 selected for resettlement will arrive in New Zealand in three groups – anticipated to be January, March and May 2016.

What services are provided for refugees once they arrive in New Zealand?

Quota refugees are given permanent residence on arrival in New Zealand and spend their first six weeks at the Mangere Refugee Resettlement Centre.  While there, they complete a reception programme to support living and working in New Zealand and English language. They also complete medical and mental health assessments.

A number of government agencies and NGOs are involved in the settlement of quota refugees, including the Ministries of Health, Education and Social Development, Work and Income, Housing New Zealand, the Tertiary Education Commission, NZQA, Careers New Zealand, NZ Police, the Office of Ethnic Affairs, DIA and NZ Red Cross.

NZ Red Cross is contracted by Immigration NZ to provide settlement support in the community over the first 12 months. This includes an orientation programme and connecting refugees to services they require such as doctor’s appointments, English language, education and employment.

(Source Beehive, Michael Woodhouse),, Minister of Immigration)

Sep
01

01/09/15 - The colour of money: New Zealand's new brighter bank notes


5dollsrNew $5 and $10 banknotes have been revealed - and the Reserve Bank says it is possible the redesign will be the last, amidst speculation of a move to cashless society.

New Zealand's banknotes are being redesigned at an additional cost of $40 million over five years, in a bid to stay one step ahead of counterfeiters.

Reserve Bank deputy governor Geoff Bascand spoke to media at the launch of the new notes in Wellington and was asked if the redesigns could be the last.

"It is possible. People are speculating and talking about becoming a cashless society, but we haven't seen it yet.

"Funnily, cash is still growing, quite rapidly. I suppose that is partly the tourism industry - people come to New Zealand and want to use cash. It is also handy and used in all sorts of ways."

The new $5 and $10 notes feature brighter colours, but the same famous faces and flora and fauna design features.

Artistic renditions of all new banknotes were released in November, but the Reserve Bank has been completing work on security features since, meaning the final versions released today are different.

The shape, size and feel of the new notes remains the same, and Sir Edmund Hillary and Kate Sheppard still take pride of place on the $5 and $10 notes respectively.

New Zealand's new $5 note will be in circulation from October.

However, the new notes contain more sophisticated security features, including:

  • A large clear window that contains a hologram featuring a fern, map of New Zealand, and the same bird that features on the left-hand side of the note.
  • When the note is tilted a rolling bar, that changes colour, flashes across the bird. On the reverse of the note, in the same position, a similar effect can be seen in the fern window.
  • If the notes are held up to the light, coloured irregular shapes on the front and back combine like puzzle pieces to show the note's denomination.
  • Raised ink features on both sides of the notes, including the words "Reserve Bank of New Zealand Te Putea Matua" and "New Zealand Aotearoa".

All banknotes are being redesigned and rolled-out progressively, by denomination.

The $5 and $10 notes will be released from mid-October, with the $20, $50 and $100s likely released in April 2016.

It could be some time before people find the notes in their wallet, because $5 and $10 notes are not usually dispensed by ATMs.

The new notes, which will be called Series 7, will co-circulate with the current notes for a period of time and both sets will be legal tender.

The last banknote upgrade was in 1999. Mr Bascand said the redesigned notes would be fit-for-purpose for 10 to 15 years, and the security features would help deter counterfeiters. They are being produced by the Canadian Banknote Company.

"New Zealand's counterfeit rate is low by international standards, it is below five notes per million. But in other countries, including Australia, at times they have had quite serious counterfeiting runs...it is better to be ahead of the time."

This morning's event was attended by Prime Minister John Key who, referencing the release of four alternative flag designs at Te Papa, said, "new notes and new flags are the order of the day".

Sir Ed's son, Peter Hillary, attended the launch and commented that his father looked "as handsome as ever" on the new $5 note.

The new banknotes can be "taken for a spin" at the interactive website www.brightermoney.co.nz

(Source NZ Herald)

Aug
27

15/06/16 - The IPT Annual Report 2015

Please click here for some interesting reading noting that on average 33% of Appeals with the IPT is allowed! Interesting question you could ask yourself: what does that mean for a Decision made by INZ?

Aug
25

23/08/15 - Job seekers best 'head south' says Immigration Minister

Anyone looking for a job should "head south", Immigration Minister Michael Woodhouse says.

New measures to encourage skilled migrants and businesses to move to the regions were announced last month.

The rules were designed to boost local economies and meant new migrants would get bonus points for heading to the regions, but they have to stay for 12 months rather than three.

Mr Woodhouse told TVNZ's Q+A programme today that while immigration was a complex issue with "moving parts", he did not believe migrant numbers were pushing up interest rates, exchange rates and house prices.

He said the idea there were 60,000 people coming and staying in New Zealand was "simply not true".

"What's creating the volatility...is the temporary migration.

"We have quite a strong mismatch between where the labour need is and where the people are, and one of the thing I would say is anybody that wants to see work should head south. There's plenty of it."

He said there were a number of factors at play in the interest rates and house prices - with the Government introducing measures to curb the situation.

"There's some contest about whether or not those things are occurring," he told Q+A.

Mr Woodhouse also said the "significant" changes proposed in the new Health and Safety Reform Bill were being lost after news broke that worm-farming was classified as "high risk" - ahead of sheep, beef and dairy farming.

He said he had no doubt there would be an exemption regime to remove worm farms once the bill was passed.

"Yes, it does seem a bit silly but...we haven't even started that conversation. So, let's get the bill through.

"I don't want this to distract from the very important message that is, this reform bill is a significant improvement on the status quo.

"This is serious stuff."

Labour leader Andrew Little has called the legislation a national joke.

He told Q+A the Government only had "one chance" to pass the law, and get it right.

"I don't accept his view that we can now go through the law change process, have it ridiculed, if only for some parts of it and then somehow through the consultation process that will follow that will restore public confidence, because it won't."

(Source NZME lp)

Aug
21

19/08/15 - Auckland GDP rising 3.7pc annually

More Aucklanders are working and they are earning more than people elsewhere, with the city in the midst of a significant economic growth phase.

The latest Auckland Economic Quarterly from Auckland Council's chief economist Chris Parker identified the city's growth across various economic indicators including job market expansion, wages, immigration, retail spending and construction.

But it also raised concerns about high house prices.

The report showed Aucklanders' real average wage now stands at $1166/week, ahead of the rest of New Zealand's $1084/week.

Auckland wages are also rising, albeit marginally, from $1164/week in last year's fourth quarter to $1166 in this year's first quarter.

Auckland employment numbers rose from 782,000 at last year's fourth quarter to 797,000 by this year's first quarter.

But Auckland's median house sale price had hit $755,000 by Jun, according to the Real Estate Institute, compared to $450,000 for the rest of New Zealand and Parker said that remained an issue.

"Auckland's housing market still dominates debates and it has even been described as the major political issue of not just the year but maybe of this decade," Parker wrote.

However, Auckland is doing well economically.

"The Auckland economy continues to grow strongly. Auckland's GDP is up 3.7 per cent over the year to March 2015," the quarterly stated.

"This is driven by strong investment, spending and employment as increased international net migration boosts demand. Strong hiring growth underpins Auckland's economic performance with employment growth at 5.2 per cent on the year."

Auckland's net annual migration is at historic highs of 26,800 as at June, up from a low of 4000 in January 2013.

"The increase is driven in equal measure by a reversal of the transtasman brain drain and higher number of Europeans on work visas and students moving into Auckland," the quarterly said.

More people are spending more too: retail spending grew up 6.4 per cent for the March year. And the outlook is for the good times to continue.

"The lower exchange rate, increasing construction demand and high net migration are expected to sustain Auckland's growth for a while yet."

Building consent numbers rose to 8195 for the May year, up 21 per cent for the same period a year ago.

The quarterly pondered the dramatic drop in dairy prices indirectly flowing through to Auckland's economy during the next 12 to 18 months but said a falling dollar was good for the city's export and tourism sectors.

Auckland tourism guest nights rose from 6.9 million in December to more than 7 million by May.

(Source NZ Herald, Anne Gibson)

Aug
14

14/08/15 - NZ's population growing at faster rate than Australia

New Zealand's population is growing at a faster rate than Australia and at its fastest rate for more than a decade, according to new estimates.

Statistic New Zealand figures released today show the country's population grew by 86,900 people, or by 1.9 per cent, in the year to June 30. The latest figures show Australia's population growing at 1.4 percent a year.

Net migration (arrivals minus departures) was 58,300, and the "natural increase" - births minus deaths - was 28,700.

New Zealand's estimated resident population was 4.6 million.

"The last time New Zealand's population grew at this rate was in 2003 when the increase was 2 percent," population statistics manager Vina Cullum said.

"The last time New Zealand's growth rate exceeded Australia's was 2004."

There are also changes in the age structure with the younger (15-39 years) and older (40-64 years) working-age populations now similar in size (33.3 and 32.2 percent of the total population, respectively).

In comparison, two decades ago, those in the 15-39 age bracket accounted for 38.7 percent of the population while those aged between 40 and 64 years comprised only 26.7 percent.

"The working-age population is now equally split between younger and older people," Ms Cullum said.

"The population has aged over the last 20 years with a larger proportion of the population in the 40-64 age group than there was in 1995."

(Source NZ Herald)

Aug
06

04/08/15 - Wairarapa draws Aussie, UK migrants

The Wairarapa is a popular destination among migrants from Australia and the United Kingdom.

And Carterton's mayor says the prospect of more migrants for the area is "wonderful".

The Government recently announced measures to entice more migrants to the regions. Skilled workers who take jobs or set up businesses in the regions will be given increased bonus points, which are used to calculate whether residency requests should be approved or denied.

Statistics New Zealand data shows 443 migrants arrived in the Wairarapa area in the year to June 2015. Australia was their most common country of origin, with 181 migrants. The next most common place of origin was the United Kingdom, with 89 new migrants. Third equal were the Philippines and Canada, with 20 people each.

In the year to June 2014, 389 migrants arrived in the Wairarapa and in the year to June 2013, 329 arrived.

The figures cover Masterton, Carterton and South Wairarapa and include overseas migrants who came to New Zealand intending to stay for 12 months or more and New Zealand residents returning after an absence of 12 months or more.

Carterton mayor John Booth said Filipino people had been coming to the area to work on dairy farms and in the honey industries.

Many people of the people at a recent citizen ceremony had been British.

It was too early to say where the next influx of migrants would come from, he said.

"I don't mind where they come from. If they qualify and if the new points system [makes it] more favourable for them to come to a rural area like this, that's wonderful," said Mr Booth.

Regions such as Wairarapa had been a bit neglected in the past.

"All credit to the Government for looking at changing their immigration policy to encourage people to come to areas like this."

Housing for a young family was cheap in Wairarapa and it was within an hour of Wellington.

"To me, it's a no-brainer and I think that could be a very big attraction for people coming to live in New Zealand."

Carterton was getting stuck into economic development and had been talking to big businesses about relocating to the area, said Mr Booth.

Economist Shamubeel Eaqub said the Government measures to attract migrants to the regions were still in their early stages of policy development.

"We have seen no quantification of what kind of people will be attracted and for what reason," he said.

In his book, Growing Apart, he described a century during which people had generally gone to urban centres at the cost of rural centres, for a number of reasons. Census data showed nearly 88 per cent of those living in Masterton in 2013 were born in New Zealand compared to just over 85 per cent of Carterton people and just over 84 per cent of South Wairarapa people.

The United Kingdom and Ireland were the next most common birth places of people living in the three districts. Data showed just over 5 per cent of those living in Masterton came from the UK or Ireland, alongside nearly 9 per cent in Carterton and more than 8 per cent in South Wairarapa.

(Source NZME Wairarapa Times-Age)

Aug
05

30/07/15 - Changes to support regional development

On 26 July 2015, a range of changes were announced to immigration policy primarily aimed at supporting regional development.
New measures to take effect from 1 November include:

  • Boosting the bonus points for Skilled Migrants applying for residence with a job offer outside Auckland from 10 to 30 points.
  • Doubling the points for entrepreneurs planning to set up businesses in the regions under the Entrepreneur Work Visa from 20 to 40 points.
  • Streamlining the labour market test to provide employers with more certainty, earlier in the visa application process.

In addition, from mid-2016 a pathway to residence will be provided for a limited number of long-term migrants on temporary work visas in the South Island.
 
The Government is also considering a new Global Impact Visa to attract high-impact entrepreneurs, investors and start-up teams to launch global ventures from New Zealand.

(Source INZ)

Aug
03

27/07/15 - At a Glance: Govt's immigration changes

Prime Minister John Key unveiled tweaks to immigration rules yesterday that he hopes will result in more migrants and entrepreneurs settling in areas outside Auckland.

Almost half the 10,000 skilled migrants and their families who take up residence each year settle in Auckland and the Government wants to strike a greater balance with other regions.

The Government's changes include:

  • Boost in bonus points from 10 to 30 for skilled migrants applying for residence with a job offer outside Auckland;
  • Double the incentive to 40 points for entrepreneurs planning to set up businesses in the regions under the entrepreneur work visa;
  • Help for employers to find out faster whether New Zealanders can fill a particular vacancy, before they lodge a visa application;
  • Provide a pathway for residence for a limited number of long-term migrants on temporary work visas in the South Island.

(Source 3News)

Jul
08

17/06/15 - NZ an attractive destination for immigrants: survey

A stronger US dollar makes New Zealand a more attractive destination for immigrants, a survey has found.

Mercer's annual Cost of Living survey highlights the impact the movement of currency can have on the cost of doing business globally and shows which cities are cheapest to live in for expatriates.

The survey showed that the weakening of the New Zealand dollar saw Auckland and Wellington both drop in the Cost of Living ranks.

Auckland, which is New Zealand's most expensive city for expatriates dropped by three places, whist Wellington dropped by four.

"Movement in the New Zealand dollar can create a competitive advantage for New Zealand organisations in terms of attracting key global talent," said Mercer's Global Mobility Practice Leader, Lorraine Jennings.

"Falling down the rankings of the most expensive cities to send your workforce to is actually great news for New Zealand employers wanting to attract global talent."


A weaker New Zealand dollar meant it was more cost effective for multinational companies to send their talent to our shores, she said.

"International compensation is an increasing concern for many multinational companies operating in a variety of economic, social and political contexts.

However, Joanna Rapley from Alpha Recruitment, which does some international recruitment, said most people moving to New Zealand did so for the lifestyle - and this was particularly the case for immigrants from the UK and South Africa.

"They'll bring their children here, to bring them up, or they'll come here in their latter years for their retirement," she said.

"I'm not sure that they're coming here for the money, that's not really a key driver."

Walter Stone from Eagle Migration agreed that lifestyle was the main attraction for immigrants, pointing out that salaries in Australia were often higher.

While they might look at the cost of living, currency changes were not a concern for most of his clients, he said.

According to the survey, Asian and European cities - particularly Hong Kong, Zurich, Singapore and Geneva - topped the list of the most expensive cities for expatriates.

At number one for the third consecutive year was Luanda, the capital of Angola - despite being a relatively inexpensive city, the cost of important goods and safe living conditions are priced steeply.

The survey includes 207 cities worldwide and measures the comparative cost of each location, including housing, transportation, food, clothing, household goods, and entertainment.

Mercer Cost of Living Survey - Worldwide Rankings 2015

The most expensive

1. Luanda, Angola
2. Hong Kong, Hong Kong
3. Zurich, Switzerland
4. Singapore, Singapore
5. Geneva, Switzerland
6. Shanghai, China
7. Beijing, China
8. Seoul, South Korea
9. Bern, Switzerland
10. N'Djamena, Chad

The cheapest

1. Bishkek, Kyrgyzsta
2. Windhoek, Namibia
3. Karachi, Pakistan
4. Tunis, Tunisia
5. Skopje, Macedonia
6. Banjul, Gambia
7. Minsk, Belarus
8. Cape Town, South Africa
9. Managua, Nicaragua
10. Tbilisi, Georgia

(Source NZ Herald NZME)

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