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Jay Shadforth
Paul Hibbert
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NEWSLETTER
June 2010
Welcome to the new edition of ILA's Newsletter
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What you will find in this quarter’s newsletter:
- Better Opportunities for Global Internet Businesses in NZ
- Government Recognises Poor Quality of INZ Decisions
- New Budget Announcements Affect Migrants
- Expression of Interest Selection Observations
- Staff News
- Source of Migrants to NZ
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BETTER OPPORTUNITIES FOR GLOBAL INTERNET BUSINESSES IN NZ
The 2010 Budget recognized that New Zealand’s poor broadband services and relatively slow internet performance is a significant disincentive for migrants who provide consultancy services or operate businesses via the internet to settling in New Zealand. The Government wishes to attract these types of entrepreneurs and highly skilled consultants to New Zealand by allowing them to continue their work and provide goods and services globally whilst enjoying the New Zealand lifestyle. The only way that this can be achieved is through the provision of international quality broadband services and high speed internet. Consequently, the Government has allocated NZD$200 million for the roll out of ultra fast broadband, as well as NZD$48 million more for broadband in schools.
GOVERNMENT RECOGNISES POOR QUALITY OF INZ DECISIONS
The Department of Labour has recently conceded that one fifth of the decisions from Immigration New Zealand are “poor and questionable.” This is deemed by the Department to be on improvement on past performances which concluded that one third of decisions were poor and questionable. It should be noted however that this assessment has been made by the department of labour itself and in accordance with the assessment standards they impose. We therefore suspect that the “one fifth” estimate is therefore, in our opinion, likely to be a conservative estimate. In addition, we can only assume that it does not take into account those decisions that are determined by the appeal authorities to simply be incorrect.
http://www.stuff.co.nz/the-press/news/3774791/One-fifth-of-immigration-decisions-questionable
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NEW BUDGET ANNOUNCEMENTS AFFECT MIGRANTS
In the recent budget announcements a change to eligibility for student loans was announced that directly affects recent migrants. Effective from 1 January 2011 permanent residents will need to have held their permanent residence for two years and to have been resident in New Zealand for two years before they become eligible
EXPRESSION OF INTEREST SELECTION OBSERVATIONS
For at least the two years up to the end of 2009, the total fortnightly selections of Expressions of Interest (EOIs) from the Pool was consistently in the mid-late 700s. Since the beginning of 2010, every fortnightly selection has been in the mid-late 500s – a significant proportional decrease.
In 2010, the lowest fortnightly total of selected EOIs was on 7.4.10 – the Pool selection immediately following Easter weekend. This suggests a logical dropping off of submissions due to thesignificance of the holiday across the Western world.
The top two criteria, as per all recent selections, remain, in descending order: ‘All EOIs at or above140 points’; ‘All EOIs with a job or job offer claiming total points between 100 and 135 points’.
Criterion three remains as ‘All EOIs claiming 15 points for work experience in an area of absolute skill shortage…’ However, the minimum total of points in conjunction with this has varied significantly during the course of 2010 selections.
On only three occasions during 2010 have four separate criteria been used for selection purposes - all within the last five selections - with the fourth being ‘…10 points for work experience in an area of absolute skill shortage…’ The minimum total of points in conjunction with this has also varied between 125 and 135 points.
All applicants for Skilled Migrant Category should be aware, based on the above observations, that unless they have at least 140 points, OR 100 points AND a skilled job or job offer here in New Zealand, EOI selection is currently less certain than it was six months ago. However, this situation can quickly change and, as per current tends, may do so even within the next month or so.
STAFF NEWS
On a personal note, our team member Lina had a beautiful baby boy on November 19th, named Santiago. He came into the world earlier than expected and is now a thriving and bubbly 6 month old. Lina and family are now on holiday in Colombia and we look forward to seeing them again in August on her return to New Zealand.
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Source of Migrants to NZ for the Past Three Years ( Where Statistics are Available)
Work Permit Approvals (all categories) for the top 5 source countries:
Source of Migrants to NZ for the past three years (where statistics are available)
Work Permit Approvals (all categories) for the top 5 source countries:
2008/09 2007/08 2006/07
1. United Kingdom 20, 315 20, 680 19, 070
2. China 12, 592 15, 294 15, 057
3. India 9, 019 7, 299 5, 797
4. Germany 8, 713 8, 050 7, 342
5. United States 7, 508 7, 882 7, 221
Student Permit Approvals for the top 5 source countries:
2008/09 2007/08 2006/07
1. China 15, 077 16, 399 20, 275
2. South Korea 10, 715 11, 072 11, 169
3. India 8, 204 5, 769 3, 105
4. Japan 3, 310 3, 511 3, 691
5. Fiji 3, 295 2, 784 2, 126
Permanent Residence Approvals - Partnership & Dependent Child Streams:
2008/09 2007/08 2006/07
1. China 1, 443 1, 293 1, 030
2. United Kingdom 1, 304 1, 541 1, 771
3. Samoa 771 816 582
4. India 598 712 847
5. Fiji 492 521 492
Permanent Residence Approvals for 2008/09 only – Parent, Adult Child, and Sibling Streams:
2008/09
1. China 1, 407
2. India 876
3. Fiji 743
4. United Kingdom 518
5. Cambodia 223
Permanent Residence Approvals for 2008/09 only – Skilled Migrant Category / Business category:
2008/09
1. United Kingdom 6, 732
2. South Africa 4, 877
3. China 3, 818
4. Philippines 2, 992
5. Fiji 1, 968
Overview of Work and Student trends in relation to economic ‘slow-down’:
Work Permits:
· In New Zealand, the number of people granted a temporary work permit through Essential Skills and seasonal work policies last year was 6 per cent lower than the previous year.
· The global economic situation has had varied effects upon New Zealand’s temporary migration flows (i.e. non-residence). Rising unemployment in the country has lessened opportunities for new migrants to enter the labour market.
· In July 2009, 44 occupations were removed from the Immediate Skill Shortage List and 8 from the Long Term Skill Shortage List.
An additional policy change, also in July 09, reduced the duration of permits to lower skilled workers (ANZSCO levels 4 and 5) to just 1 year.
· These changes were instigated in order to protect the New Zealand workforce during the economic hardship.
· Demand for migrant workers has decreased; consequently there has been a significant fall in the numbers of applications accepted under Essential Skills and seasonal work policies. In the last quarter of 2008/09, the percentage decrease was 26 per cent, compared to the corresponding quarter of the previous year.
· Despite the above factor, the drop in Essential Skills workers was offset by increasing numbers in other policies, meaning there were 2 per cent more worker approvals in 2008/09 compared to the previous years.
Student Permits:
· There was an increase in the number of people approved to study in 2008/09 of 6 per cent, compared to the previous year.
· Whilst student numbers from traditional source countries such as China and South Korea have continued to fall throughout the past year, this decline has been offset by an increase in numbers from other countries, such as India.
· China still makes up the largest student market with around 20 per cent of the total number, but this has decreased sharply from almost a 50 per cent stake six years ago.
General Overview of impact on New Zealand of economic slow-down
Whilst New Zealand has seen a decrease in migrant numbers from some traditional high-volume source countries, such as the UK, USA and China, it has also seen an increase from other, less traditional source countries across the spectrum of categories.
Visitor numbers have decreased substantially over the past year as the tourist industry, in line with the rest of the OECD, has taken a big hit. However, even here numbers of visitors from countries such as Germany, Spain and France have increased.
New Zealand remains a country unique in its outlook, quality of life and opportunities. Thus, the impact of the economic crisis has been minor and the outlook remains bright for migrants.
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