IMG_1972.jpg

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.

Mar
09

08/03/12 - End-of-year interest hike signalled

The Reserve Bank is signalling the first interest rate hike around the end of this year, but after that there may be just one rise a year, according to Westpac Bank economists.

But Westpac says it still thinks an extended series of interest rate rises will be needed to rein in domestic inflation, arising from the Canterbury rebuild, even in the face of a strong exchange rate.

This morning the Reserve Bank left the official cash rate (OCR) steady again at 2.5 per cent, but said the high value of the New Zealand dollar was hurting exporters.

Stepping up the concern about a high currency, Reserve Bank governor Dr Alan Bollard said this morning that sustained strength in the New Zealand dollar would keep inflation down and reduce the need for future OCR increases.

The New Zealand dollar had risen almost 7 per cent since December, measured against a basket of our trading partner currencies, while export commodity prices had tracked sideways, the Reserve Bank said.

"Given the medium term outlook for inflation, it remains prudent to hold the official cash rate at 2.5 per cent," Bollard said, in a sign that the central bank is willing to keep rates on hold for longer.

ASB Bank chief economist Nick Tuffley said the Reserve Bank put a lot of weight on the high New Zealand dollar dampening inflation, in part in an effort to "talk the dollar down".

"The Reserve Bank is clearly frustrated by the strength of the New Zealand dollar," Tuffley said. "The tone of the statement is clearly aimed at trying to bring the New Zealand dollar down to a lower level," he said.

ASB also expected the first rate rise in December, but has now spaced out further rises, every three months rather than at six weekly intervals. The cash rate was still likely to peak at 4 per cent, even though the Reserve Bank's own forecasts imply a peak of 3.25 per cent to 3.5 per cent, ASB said.

The cash rate has been at 2.5 per cent for the past year. The central bank's projections for 90-day interest rates is on a much more gradual path than in expected in December, rising from 2.8 per cent to 3 per cent by the end of this year and just 3.3 per cent by the end of next year.

Inflation had settled near the middle of the central bank's target range and inflation expectations had fallen, Bollard said.

The domestic economy was showing signs of recovery.

Household spending appeared to be picking up in the past few months and there seemed to be a recovery in building activity. The building recovery would gain strength later this year as work picked up in Canterbury after last year's quakes.

Global confidence had improved and while that was "encouraging", Bollard said financial market sentiment was still fragile and there were still risks for the global outlook.

The easing in global monetary policy and a rising appetite for risk had seen a "marked appreciation" in the New Zealand dollar.

"While helping contain inflation, the high dollar is detrimental to the tradeable sector, undermines GDP growth and inhibits rebalancing in the economy," Bollard said.

"Sustained strength in the New Zealand dollar would reduce the need for future increases in the OCR," he said.

The Reserve Bank says the risk of a significant worsening in the global economy had eased since the December Monetary Policy statement.

Earlier fears that the European sovereign debt crisis would badly affect the New Zealand economy had eased after action by central banks in Europe.

The Reserve Bank's projections show quarterly economic growth of 0.6 for both the December 2011 and March 2012 quarters, picking up gradually to 1 per cent in the December quarter this year.

The projections also show annual inflation tracking well under 2 per cent this year and at 1.5 per cent by March 2013.

The projections also assume a modest fall in the New Zealand dollar over the next few years. If that did not happen the bank would see less need to raise the official cash rate through that time. The trade-weighted index is projected to fall from 72.5 now to 71.2 by March next year.

(Source Dominion Post)

Mar
08

07/03/12 - Launch of Immigration New Zealand's 'Vision for 2015'

Good morning. It’s great to be here today as the new Minister of Immigration for the launch of your Vision for 2015.

I thought this would be a good opportunity to meet senior managers at Immigration New Zealand and share with you some of my thoughts about the Government’s priorities for immigration over the next three years.

Turnaround of INZ over last three years

Firstly, I want to recognise that Immigration New Zealand has made huge progress in turning around its performance over the past three years – and that’s down to Nigel Bickle and his leadership team, and Ministerial action by my predecessor Jonathan Coleman.

I’m sure you remember that back in 2008 the Auditor General’s review found some real problems within Immigration New Zealand around leadership, timeliness, quality of decision-making and customer satisfaction.

The improvement in performance since then has been impressive. It’s clearly shown by:

  • the increase in client and employer satisfaction with your services
  • much better processing times;
  • and a marked increase in the quality of decision-making.

For example, around half of all student visas can now be done within 48 hours online, and the average length of a call to the call centre is now around two minutes, down from a high of 14 minutes.

A lot of hard work has gone into winning back the confidence and trust of the public and the Government. These are achievements you should be very proud of.

Next phase – Govt priorities

Looking forward now, during my term as Minister I want to maintain and enhance the major improvements we’ve made.

My priorities, and those of the Government, are to see the immigration system delivering maximum value to New Zealand.

We want to be ready for the future, and deliver better services for less cost.

I’m sure you all know this is a big priority for every Government Minister, department and agency.

Vision 2015, which we are launching today, is also a big step towards these goals.

This new vision for Immigration New Zealand is about having a more flexible, responsive and efficient approach to attracting the best people to New Zealand.

A practical example of this is the new Immigration Global Management System (IGMS), as mentioned by Nigel. We are making this major investment because we see it as a way to deliver timely, responsive and secure immigration services.

The Prime Minister has clearly signalled that the public sector needs to make greater use of technology to deliver better services. This is a good example of that.

The old computer system is around 20 years old, and with Ultrafast Broadband on the way, the time is right to move to a more responsive and flexible way of doing business.

As Nigel has said, this will mean looking at the physical footprint Immigration New Zealand has. We need to focus on our key markets that can make major contributions.

Economic contribution of immigration

I keep being reminded of the fact that migrants made up 60% of New Zealand’s workforce growth in the last 5 years, and that new migrants contribute an estimated $1.9 billion a year to New Zealand’s economy. So the importance of migrants to our economy cannot be overstated.

The Government strongly believes that immigration helps to build a stronger economy and creates jobs by encouraging innovation, deepening our links with international markets and providing the skills and capital New Zealand needs for growth.

I want Immigration New Zealand to ensure the right mix of new skills and investment, as well as proactive support of key growth industries.

We’re very focused on attracting migrants who will bring the most economic benefits to New Zealand – skilled workers, business people and investors, academics, entertainers and students.

One good example of this is the business migration scheme, which was revamped in 2009 and has to date attracted over $700 million in potential investment capital.

Attracting more business migrants who have the commercial nous and global networks to help New Zealand businesses helps grow the economy and create jobs.

We’re proud of what we have done so far in the immigration area.  Some highlights include:

  • The new Silver Fern Visa with 600 highly skilled young people given the opportunity to find jobs in New Zealand
  • The Retirement visa gives us a foundation for attracting wealthy retirees to New Zealand
  • Improvements to the RSE scheme
  • Changes to the Entertainer’s Visa to provide more certainty for New Zealand’s growing film industry; and
  • Boosting export education through allowing short courses to be studied while on a work or visitor visa.

Economic outcomes are always going to be a major priority. In short, we want immigration to work for New Zealand’s benefit.

A good example of this is the Canterbury rebuild. This will obviously create a huge amount of work for locals, particularly trades people, and our first priority is always jobs for New Zealanders. But we have to accept that in some industries we just won’t have enough people with the right skills.

Between June and December last year a total of 108 people were granted visas for work associated with the Christchurch rebuild, and a lot more skilled, specialist overseas workers will be needed in the future.

Another of our priorities is to get better outcomes for refugees coming to New Zealand. At the moment no single Government department has overall responsibility for meeting the needs of refugees. A centralised strategy is needed to bring together all the support that refugees can rely on, and I know you’re doing important work in this area.

Ministers have also announced a joint programme of work to improve our border management work. Immigration New Zealand, along with Customs and MAF, will be looking at ways the three agencies can work together more effectively.

Protecting our borders is a top priority, with $80 billion of exports and imports and 10 million travellers across our border each year. Recommendations for the next steps will be provided to the Government by mid-year.

Can I finish by thanking you all again for the hard work you’ve been doing.

We’ve made big strides over the last few years, but there is more work and challenges ahead.

I’m very confident though that Immigration New Zealand has dedicated and skilful staff ready to meet those challenges ahead of us.

Thank you.

(Source Beehive, N Guy, Minster for Immigration)

Mar
07

07/03/12 - New Immigration blueprint welcomed

Immigration Minister Nathan Guy has welcomed the release of Immigration New Zealand’s “Vision for 2015”, a blueprint setting out how the department will continue to improve its operations over the next three years.

“Immigration New Zealand has put a lot of hard work into winning back the confidence and trust of the public and the Government. This plan is an important step towards building on these achievements,” says Mr Guy.

“Major improvements have taken place under a National-led Government. The department now makes around 500,000 visa decisions a year, and the quality and timeliness of decision making has greatly improved, along with employer and client satisfaction levels.

“In future there will be fewer visa types and application processes will be simplified, resulting in a better service for customers.

“A practical example of this is the new Immigration Global Management System (IGMS), which was approved by Cabinet just before Christmas. This $75 million investment will allow more visas to be applied for online. It’s a good example of the public sector using technology to deliver more efficient services.

“Potential changes to the branch network around the world will also be looked at as part of a drive to bring down the cost of delivering services.

“Immigration makes a major contribution to New Zealand’s economy. New migrants add an estimated $1.9 billion to our GDP every year, international students contribute $2.3 billion, and inbound tourists around $9 billion.

“We are competing with other developed countries for the same pool of potential migrants, students and visitors. This is why we need to improve how we operate.”

A summary of the Vision 2015 document is available at www.dol.govt.nz\News\Media\2012\final-vision-2015.pdf

(Source, Beehive, Nathan Guy)

Mar
06

05/03/12 - Govt: Make it tougher to migrate to NZ

The Government is planning to create a two-tier immigration system that makes it more difficult for people to bring non-earning dependents into the country.

A Cabinet paper released to the Labour Party under the Official Information Act shows Immigration New Zealand is planning to create a system where applications from parents sponsored by their higher income children, or those who bring a guaranteed income or funds, would be processed faster than other applications.

Sponsors would be required to support immigrating parents for a period of 10 years, up from five, and parents would no longer be able to bring dependent children.

Parents with poor English would also need to "pre-purchase tuition''.

The sibling and adult child immigration category would be removed to reduce the number of unskilled migrants who find it more difficult to get jobs and are more likely to get benefit payments.

Labour's immigration spokeswoman Darien Fenton said New Zealand was becoming a country were only the rich were welcome.

"We roll out the red carpet for them, yet we make it near impossible for good, less well-off families.''

The paper was prepared for the first 100 days of the new government but the changes were omitted in a briefing to incoming minister Nathan Guy which was publicly released last month.

"They will come as a shock to the thousands of people in New Zealand looking to reunite their families, especially given the special treatment handed out to millionaires such as Kim Dotcom.''

(Dominion Post, Danya Levy)

Mar
05

05/03/12 - Plan to favour wealthy immigrants

Poor migrants who speak little or no English are to be subject to stricter immigration laws under a review that will create a "two-tier" system to favour the wealthy, a leaked Cabinet paper shows.

Immigration categories are to be changed in an effort to "reduce the number of unskilled migrants who find it difficult to get jobs and are more likely to get benefit payments".

Applications from parents seeking residency to be with children already in New Zealand will be placed in the slow processing lane if their children-sponsors are not "high-income" people.

Parents will no longer be able to bring in dependent children and applicants who are poor in English will be required to pre-pay for language lessons.

The changes are outlined in a Cabinet paper obtained by the Labour Party, which says the plan creates a divide between the rich and famous and ordinary migrants wanting to move to New Zealand.

The paper, titled "Issues and decisions for the first 100 days - Immigration" is directed at the new Immigration Minister Nathan Guy and Associate Minister Kate Wilkinson, and shows the decision to make changes to family categories was made by the Cabinet last May.

It says that under "a new two-tier process", applications from parents who are sponsored by higher-income sponsors, or who bring guaranteed income or funds, will be processed more quickly than those from other parents.

"Tier-one parents will be eligible regardless of what country their other adult children live in, while the criteria for tier-two parents will be tightened so that only those who had no adult children living in their home country will be eligible."

The paper does not say how the wealth of parent sponsors will be assessed.

The sibling and adult category will be closed soon after the Department of Labour - which oversees Immigration NZ - provides further details on implementation and changes to the parent category to be introduced from July, the paper says.

The changes are aimed at reducing costs incurred through the benefit system and to attract and retain skilled and productive migrants, it says.

Last year, 36 per cent (or 14,826) of all New Zealand residence approvals were family-sponsored migrants.

Of these, 4036 were approved under the parent policy and 1186 under the sibling and adult child category.

China and India have been the main source countries for immigrants under the two categories in the past three years.

Labour's immigration spokeswoman, Darien Fenton, said the proposed changes showed National's true values - that "money is all that matters".

"This will come as a shock for the thousands of people in New Zealand looking to reunite their families, especially given the special treatment handed out to millionaires such as Kim Dotcom," she said.

"We are becoming a country where only those with money are welcome."

Immigration expert Paul Spoonley said some of the proposed changes, such as stopping parents bringing in dependent children "seem harsh and unusual".

A spokesman for Mr Guy said the minister was unavailable for comment yesterday, but would "get on to this" today.

(Source NZ Herald, Lincoln Tan)

Mar
03

03/03/12 - Editorial: Immigration's self-serving edict must go

If any Government service should be sticking to the straight and narrow, it is surely Immigration New Zealand.

Too often over the past decade it has shown every indication of being a law unto itself. Yet a series of reputation-sullying incidents have not been enough to stop it stumbling into another of its own making.

A directive to its officials not to record information to avoid judicial reviews and extra paperwork has, quite rightly, attracted criticism.

In its calculated nature, it betrays a flippant notion towards concepts of accountability and transparency that should, in fact, be underpinning the service's behaviour.

The directive relates to section 61 of the Immigration Act, under which officers can grant visas to those unlawfully in this country and not subject to a deportation order. Their decisions are open to review by the Ombudsman. Last November, staff were told not to "record any reasons or rationale" in all such cases. According to operational policy official Kathy Tait, "they [resolution officers] strongly feel that including rationale just opens up the risk of judicial review and Ombudsman complaints".

Undoubtedly that is the case, and this creates additional, sometimes irksome, work. But the rationale for any official decision must be expected to pass outside scrutiny. To suggest otherwise is to eliminate transparency in decision-making and to diminish any prospect of accountability. It also flies in the face of the Public Records Act, which requires that "every public office and local authority must create and maintain full and accurate records of its affairs, in accordance with normal prudent business practice".

Immigration NZ has eschewed such niceties in favour of a wholly self-serving approach. Unfortunately, that is far from unusual. This was the service responsible for an internal memo in 2003 stating that "everyone had agreed to lie in unison" about the apprehension of Ahmed Zaoui. At much the same time, it kept in-house the case of a staff member who asked for sexual favours from a young woman seeking residency.

This was also the service from which, more recently, its head, Mary Anne Thompson, resigned over indiscretions that included helping relatives enter New Zealand. It is a record that should have persuaded its managers to steer well clear of any policy that threatened further opprobrium.

Perhaps worst of all, the new directive suggests a disgraceful attitude towards official information requests remains alive within the service. It was suggested in November that the Ombudsman should be contacted for comment on the instruction. But this has happened only recently after concerns were raised. There are echoes here of the contemptuous attitude of the service in the handling of an Ombudsman's request for information in 2003. Media logs were not handed over in the first instance, even though the Ombudsman had advised six years earlier that they carried official information status.

In that case, there was little inclination to observe the obligations of public servants under the Official Information Act. The new directive is a blatant attempt to torpedo any inquiries by denying documentation. This disdainful attitude to the Ombudsman and, by extension, the public is wholly inappropriate for a service that wields considerable influence. Matters of public interest must be handled transparently, and officials must be able to be held accountable. This directive must be rescinded.

(Source NZ Herald)

Mar
03

29/02/12 - Nigerian living in NZ under false identity jailed for passport fraud

A Nigerian man who has been living in New Zealand under a false identity since 2003 has been sent to prison for more than two years for passport fraud.

Jeffrey Ugochukwu Orji, 39, was found guilty at the Pukekohe District Court today (Wed) of eight offences involving the use of a false passport and one charge of possessing a false passport.

He has been sentenced to two years and three months' imprisonment.

Orji's offending was revealed in 2009 when forensic examination of the passport eventually connected it to a batch of blank stolen Nigerian passports, Immigration New Zealand Intelligence, Risk and Integrity general manager Steve Stuart said.

"While international security standards for passports have improved over the years, the ability of criminals to obtain legitimate passports fraudulently, or produce very high quality fakes, is a real challenge for immigration and border agencies internationally," he said.

Orji could face deportation when he is released from prison, Mr Stuart said.

(Source NZ Herald)

Mar
03

27/02/12 - Bureaucrats' burying visa decisions 'a blatant act of law breaking'

Instructions to immigration officials not to record information to avoid judicial reviews and extra paperwork have outraged civil libertarians, who are calling it a deliberate attempt to avoid accountability.

The Immigration New Zealand directive to staff concerns section 61 of the Immigration Act, which empowers the Immigration Minister to grant a visa to a person who is unlawfully in New Zealand and not subject to a deportation order.

This power is delegated to Immigration NZ officials and decisions are open to review by the Ombudsman.

In November last year Immigration NZ issued instructions to staff not to "record any reasons or rationale" in all cases involving section 61, including those that are thrown out without being considered, and those that are considered and are accepted or declined.

Department emails released under the Official Information Act and published on left-wing blog No Right Turn reveal that the instructions were given to lessen the workload and avoid the possibility of complaints.

"They [resolutions officers] strongly feel that including rationale just opens up to the risk of judicial review and ombudsman complaints," wrote Immigration NZ business analyst Kathy Tait, operational policy.

Lynne White, operations support senior adviser, replied: "It seems more logical to me not to include rationale for the reasons given by Resolutions.

"I wouldn't want to make it mandatory to put something [rationale] in AMS [department database] which is likely to generate more work and complaints for branches."

Two days after this email exchange, it was suggested that the department contact the Ombudsman for comment, but this never happened.

Council for Civil Liberties spokesman Thomas Beagle said the instructions could violate the Public Records Act, which requires that "every public office and local authority must create and maintain full and accurate records of its affairs, in accordance with normal, prudent business practice".

Failure to comply with the act regarding an individual could see a $5000 fine.

Mr Beagle said hiding under a complete lack of documentation was against the way a transparent and accountable Government should operate.

"It's so concerning that they're being so blatant about it. They're actually deliberately trying to work around the Public Records Act, and they're deliberately doing that to block the Ombudsman's inquiries, and those are important elements in the transparency of a Government."

George Mason, general counsel for the Department of Labour, which includes Immigration NZ, said he did not believe the directive violated any laws.

However, in light of concerns the department was now in discussions with the Ombudsman.

THE DIRECTIVE

  • Under section 61 of the Immigration Act, immigration officers can grant visas to those unlawfully in New Zealand and not subject to a deportation order
  • In November, Immigration NZ instructed officials not to record reasons for their decisions relating to s61 to avoid the risk of complaints and extra work
  • Civil libertarians say this is not how a transparent and accountable Government should operate, and question if it violates the Public Records Act
(Source NZ Herald, Derek Cheng)

Feb
17

16/02/12 - Government steps up border management work

The Government’s three border agencies are stepping up work to make trade and travel more efficient through better co-ordination of border services.

Primary Industries Minister David Carter, Customs Minister Maurice Williamson and Immigration Minister Nathan Guy today announced “Future Directions for the Border Sector”, a work programme to look at how the three agencies can operate together more effectively.

“A wide range of collaborative work is already underway across the three agencies. This new programme will build on the progress made in improving trade and travel services, while keeping a firm focus on border security,” says Mr Carter.

“It is about taking a fresh look at the functions of each agency and how co-ordination of the overall border management system can be improved.

“Protecting the integrity of New Zealand’s biosecurity system is a top priority. With $80 billion of exports and imports and 10 million travellers across our border each year, this must not be compromised,” Mr Carter says.

The Ministers say travel and trade patterns are changing rapidly as New Zealand interacts with more international partners, tourism is increasing and pressure is building for more streamlined travel.

“This work programme will build on a number of joint initiatives already overseen by the Border Sector Governance Group to improve information sharing and the targeting of risk at the border,” says Mr Williamson.

“An example is the Joint Border Management System (JBMS), a new information system developed by Customs and MAF, which is leading to reduced duplication and fragmentation of border services and lower costs for industry and government.”

The Ministers say the work is consistent with the Government’s goal of delivering better public services across the board.

“New technologies are giving us access to information faster and we should be using this to improve our effectiveness at the border,” says Mr Guy.

“We must ensure that our border is fit for the future. An efficient border management system is critical to New Zealand’s economic growth and prosperity.”

The work programme will provide recommendations to the Government by mid-year.

(Source Beehive, David Carter, Nathan Guy, Maurice Williamson)

Feb
13

08/02/12 - Speech to Bali Process Immigration Workshop

Speech to Bali Process Immigration Workshop by Nathan Guy

Ladies and Gentlemen - welcome to Auckland, the City of Sails.  I hope you have a chance to explore the city and perhaps see a bit more of New Zealand after this workshop.

I would like to acknowledge our guests from overseas today, particularly the Indonesian Ambassador, His Excellency Mr Antonius Agus Sriyono. Welcome to you all.

For those who haven’t been here before, New Zealand has a lot to offer. For a small country we have a huge variety of landscapes, scenery and attractions.

You can even bungee jump from the Skytower here in Auckland if you’re brave – you might get to see this on your visit tomorrow.

Or just a few hours drive away are some beautiful areas to explore like the Bay of Islands or the Coromandel peninsula.

This is the first formal speech I’ve given as Minister of Immigration since I took on the portfolio last December.

It’s a great honour to be asked to join Cabinet by the Prime Minister John Key, and I’m excited about the immigration portfolio. I’m sure everyone in the room today is well aware of the issues we face in protecting our borders and managing the flow of migrants between countries, both legal and illegal.

For the last two and a half years I served as Minister of Internal Affairs, responsible for New Zealand’s passport system, so I have already have some experience in working with other Ministers on these issues.

I would like to begin by thanking Australia for co-hosting this Bali Process Immigration Intelligence Best Practice Workshop.

Australia has given major support to this Workshop, and provides leadership across the region in combating people smuggling, trafficking in persons and transnational crime.

I am pleased to be here today to welcome delegates from the Asia Pacific region and even further afield. We have delegates here from Afghanistan, Bangladesh, the Maldives, Vietnam and the Philippines, and many other countries too. Welcome to you all.

The interest in this Workshop shows how seriously we take the challenges facing our region from irregular migration, and our desire to work together.

New Zealandis a strong supporter of the Bali process and we have been actively engaged since its inception in 2002. In October 2009 we co-chaired with the International Organisation for Migration, the “Best Practice Information Campaigns to Combat People Smuggling” workshop.

Here in New Zealand we have been relatively lucky. Our geographic distance has meant that no illegal boats have yet reached our shores.

However, we are not complacent. We have strong laws against people smuggling in place and a plan for dealing with such an event, if it occurs.

We know that boats have reached as far as Canada, travelling from Asia. For this reason the New Zealand Government has been working on further policies which will make New Zealand an even less attractive destination for this illegal trade.

At a regional level, working together and sharing information is a powerful way of countering the illegal activities of those involved in people smuggling and trafficking.

Of course, creating an effective information-sharing culture is challenging. It takes commitment, goodwill, understanding and teamwork.

During this workshop, I would encourage you to spend time networking, getting to know each other, building relationships and new ways of sharing information.

Most importantly, when you leave this workshop, continue to work hard at maintaining and strengthening these relationships over time.

Our Government takes the issue of illegal migration very seriously, and is determined to work with our friends and neighbours to deter such activity. This is a challenge that we all face together.

On that note, thank you again for coming to New Zealand and I wish you all the best for this very important workshop.

Nathan Guy, Minister of Immigration

(Source Beehive)


Dec
20

19/12/11 - Economist: Be grateful you live in NZ

Be grateful you live in New Zealand because the rest of the developed world is a mess.

That was the message from BNZ head of research Stephen Toplis, who gave his view of the New Zealand economy at a presentation this morning.

Despite the Christchurch earthquakes, he said, "New Zealand has one of the fastest growing western economies - that's quite a remarkable performance."

Meanwhile the United States and Europe is in "complete disarray".

The US housing market was still showing a high level of mortgagee sales, reflecting a structural problem that would take years to resolve, and Europe faced recession and "10 years of pain" before it would fully emerge from its current crisis.

Toplis said in his view the economy would continue to grow modestly despite international headwinds, with farming and construction providing most of the impetus.

While meat and dairy were enjoying good market and growing conditions, "construction will play a big part in growth over the next 12 to 18 months," he said.

And it wouldn't just be the Christchurch rebuild - the construction sector was building 12,000 houses a year, but there was demand for 18,000-20,000. Non-residential activity would also be driven by the need to upgrade commercial buildings for earthquake resistance.

Toplis said risks to New Zealand from Europe's problems were three-fold.

Firstly, a likely recession in Europe would affect New Zealand exports, but with just 10 per cent of exports going to Europe - and most of those to the stronger economies of France and Germany - the impact would be limited.

However, if Europe's recession dragged down growth in other economies such as Australia or China there would be more significant effect.

But the biggest and least understood risk, said Toplis, was a transmission of financial stress from Europe to New Zealand through the banking system.

"In effect New Zealand banks can't borrow enough money from New Zealanders, so they look overseas. A significant portion of funding comes from Europe and the US. If that source of funding dries up it's problematic."

Banks could tap money markets elsewhere or lean on the Reserve Bank, but another outcome could involve restricting lending, shrinking the bank balance sheets "and the size of the economy with it."

Still, BNZ is forecasting growth in gross domestic product of 2.3 per cent next year, rising to 2.7 per cent in 2013, while unemployment is tipped to fall from 6.3 per cent this year to just 5 per cent in 2013.

"Offshore developments will contine to be the bane of our lives," said Toplis. "Whatever the end result, just be thankful you live in New Zealand."

We have a sound banking sector, relative political certainty, a floating exchange rate and the right exports for current global demand.

"For these reasons we cling to our view that the New Zealand economy can continue to fumble its way ahead, albeit that the task is becoming more difficult by the day."

(Source The Dominion Post, Fairfax NZ News)

Covid 19 Notice

As the impact of the coronavirus continues to evolve, we face this unprecedented situation together. The pandemic is affecting all of us. At Terra Nova Consultancy Ltd we wish to reach out and update you on how we are addressing it. Our top priority is to protect the health and safety of our employees, clients, and our communities. Our focus on customer service remains at the center of everything we do, and we are fully committed to continue to serve you with our services, and striving to provide our services without interruption.Please listen and act upon the advise given by the Government, only in that way will we together be able to combat this challenge. And as always, stay healthy and keep safe.

TNC E-books

The Terra Nova e-book page contains publications in e-book and e-news format containing comments and reviews from Terra Nova Consultancy Ltd, and other contributors, that relate to a number of issues from immigration to operating a business.

Some of the Terra Nova e-books e-book and the Terra Nova e-news issues we believe may be quite helpful for prospective immigrants.

Check back regularly to find new editions of our Terra Nova e-book and Terra Nova e-news range.

Contact Details

Terra Nova Consultancy Ltd
14 Glanworth Place, Botany 2106
Manukau, Auckland 2106,
New Zealand

View map

Please arrange visit by appointment.

Mobile: +64 275 706 540

Postal Address:
PO Box 58385, Botany
Manukau, Auckland 2163,
New Zealand

Licensed Immigration Adviser

Johannes Petrus (Peter) Hubertus Cornelis Hendrikx

license.jpg
License number: 200800214

Is your Immigration Adviser
licenced by the NZ Government?
Click here for details www.iaa.govt.nz