The post-Covid immigration reset

The Minister of Finance Hon Grant Robertson has recently requested the New Zealand Productivity Commission to produce a report about our country’s immigration settings[1].

The inquiry is focused explicitly on analysing the impact of immigration on the labour market, housing and associated infrastructure, and the natural environment. The verification process intends to take into consideration submissions presented by external stakeholders, including opinions and information from Māori and Pacific communities, migrant and ethnic communities, relevant government agencies, skills organisations and Trade Unions. The public is also generally invited to present appropriate, specific and pertinent submission[2]
The inquiry started on 3 May 2020 and is meant to be finalised by 30 April 2022.

The main reason for the Minister’s request is to allow the current Government to realise its immigration system innovation plan based on objective and detailed information. Specifically, the review's objective is to “strategically optimise the immigration system by taking a system-wide view, including the impact of immigration on the labour market, housing and associated infrastructure, and the natural environment", as the Economic Development Minister Stuart Nash announced it in his public speech on 18 May 2021.

Essentially, the Government plan is to understand the pros and cons of the current New Zealand immigration system and accordingly implement changes that might more effectively and punctually address our country's skills shortages. At the same time, they want to decrease the migration’s impact on housing markets, infrastructure and communities and eliminate migrants' exploitation. The changes desired by the Government have been referred to as the post-Covid immigration reset.

The project seems to be in line with the current Government's manifesto regarding immigration. The Labour Party wants to be more prone to attract wealthy investors and highly skilled professionals instead of low skilled migrants unable to substantially impact the country's productivity and GDP growth.

After all, New Zealand is currently seen by the rest of the world as a secure and safe piece of heaven, which has been almost untouched by the Covid19 pandemic and where people can still enjoy unrevealed freedom and lack of restrictions in their everyday life. The Government would be short-sighted not to take advantage of this privileged position and make the most of it, welcoming the money of wealthy offshore investors who want to be part of this idyllic scenario.

However, we believe this purpose can be reached without turning the back to people who have contributed to New Zealand in the last years and have invested a considerable amount of time and money to settle down in the country where they see their future.

Instead, the current Government is not taking any action to strengthen the immigration status of migrants currently in New Zealand, who are many and living in limbo since the pandemic started.

Almost 80% of the residence EOIs currently in the pool (they now amount to a total of 9000) have been submitted by people onshore who have often lived and worked in New Zealand for several years.

Part of the public opinion is that temporary migrants, because holders of a definite visa, should not have the legitimate expectation to live in New Zealand permanently. However, the reality is often very different from what is codified by regulations. Temporary visa holders who have been in New Zealand for many years have usually done it during the most formative years of their lives. They create networks, have friends and families here, their children attend New Zealand schools and often do not recognise any other place in the world as their home. Their permits might say they are here temporarily, but most temporary migrants are, in fact, an integral part of the groups and communities they belong to. They are entitled to know if they should keep on investing their lives here or go somewhere else.

Moreover, the Government, in its recent statements, seems to suggest that migrants are to be blamed for the increase in housing cost and use of infrastructures, therefore it would be a good strategy to limit the migration flow, especially of low and mid-skilled migrants. This position seems arbitrary. Increased pressure on infrastructure and higher living costs are the natural result of any country's growth and economic development.

Also, low and mid-skilled migrant might appear not desirable, but they are, in fact, necessary for the sustainment of New Zealand's prime industries. The wealthy offshore investors who New Zealand is awaiting will undoubtedly want to experience New Zealand, shop in its newly built shopping malls, travel and enjoy local restaurants and accommodation, and be welcomed by reassuring and expert hands if they even need to attend a health facility. Migrants are the heart and soul of these industries, and it is hard to see how it would be possible to reduce the flow of low and mid-skilled migrants without damaging them.

The employers’ desperate call for the Government’s ease on the limitations imposed on the immigration flow by the pandemic[3], seems to indicate a genuine need for migrants who can and want to do jobs that otherwise would simply remain undone.

We believe that migrant workers are essential for the growth and development of our country. We encourage employers who share our perspective to present submissions in support of their migrant workers to the New Zealand Productivity Commission and have their voice be heard through official channels.

Migrants are an important force that drives every country’s economy; they deserve certainty for their future, respect and appreciation everywhere they live and work, but even more in New Zealand, a country created by migrants.

References:

[1] https://www.productivity.govt.nz/inquiries/immigration-settings/]

[2] https://www.productivity.govt.nz/have-your-say/make-a-submission/?inquiry=596

[3] ‘Immigration policy review won’t address bigger picture’, Brett ‘O Riley, Chief Executive of the Employers & Manufacturers Association https://www.ema.co.nz/Ema/News/immigration-policy.aspx