Prime Minister Christopher Luxon is conceding that the current level of inbound migration into the country "doesn't feel sustainable at all", but he's not being drawn on what sorts of numbers the new Government would look to achieve.
Luxon made his comments in an interview to RNZ, with the context being the plans for Australia to drastically cut back its numbers of inbound migrants.
In New Zealand, official figures for the 12 months to September show that we had a net inbound gain of migrants of 118,800 - a record high.
The Reserve Bank, in releasing its latest Monetary Policy Statement (MPS) late last month devoted much comment to the surging migration, with the MPS noting that "there are signs that a stronger demand impulse from high population growth is emerging, contributing to an upward revision of our outlook for capacity pressure" and that "in recent months, high net immigration appears to have put more pressure on rental price growth".
Asked about New Zealand's migration situation, Luxon said: "Really, to be honest, we are inheriting a system that’s been a complete hash."
He said New Zealand’s immigration system "closed New Zealand off" to all immigration for two years "at a time when employers were desperately looking for workers".
“And then Labour opened the floodgates just as the economy was starting to slow."
Luxon conceded that a net migration of 118,800 people "doesn’t feel sustainable for New Zealand at all".
“We’ve got to make sure we are working with Immigration New Zealand to make sure there are audits and checks in place – that it’s not just carte blanche and it isn’t just keep opening the floodgates and letting anyone and everyone into the country. That it is actually linked around skill and where we have skill shortages.
“We have to do a much better job," Luxon said.
“When net migration is 118,000 but at the same time 60,000 more kiwis on unemployment benefits and on welfare – that isn’t a good outcome either at a time when there are job vacancies to fill. We’ve got to work both sides of that equation.”
Luxon said he understood why Australia was pulling back on inbound migration.
“We are also watching and monitoring very closely…118,000 migration is very, very high for New Zealand. It’s the highest it’s been.
“We understand that there’s a little bit of catch-up that’s been needed to fill some shortages that’s existed since the lockdown periods but having said all that we expect that to be slowing month on month. And actually making sure it’s linked very strongly to the jobs shortages."
But Luxon would not be drawn on what sort of numbers of inbound migrants he would like to see.
Asked if a number of perhaps 50,000-60,000 should be targeted, he said: "Well, again it’s actually very hard for any government to lay up a number, a hard and fast number. What we’ve got to do is make sure that any migration is linked very strongly to those worker shortages that we have."
Luxon said the Government can’t control numbers of Kiwis returning or Australians coming here.
"But what we’ve got to do is make sure that we are getting the settings right.
"They’ve gone from being way too restrictive to being way too loose and we’ve got to find that balance."
He said this would be the work new Immigration Minister Erica Stanford would be getting into in the next few months.
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