Immigration Minister Michael Wood has announced a major loosening of the settings for temporary work visas and for visas for family members.
The move, announced at an event in Mt Albert for migrant community leaders on Wednesday afternoon adds to significant loosening of settings for seasonal fruit pickers and hospitality and tourism since he took the reins as Immigration Minister in July to replace the retiring Kris Faafoi.
The latest loosening of the settings is the biggest yet and reflects a pivot from the Government's approach last year and earlier this year, when it tried to limit the numbers of temporary migrants returning after the lifting of Covid controls and increase wages.
Businesses, hospitals and many other employers have called for a loosening of the settings as they struggle to find workers at pre-Covid wages. Temporary work visa holders, including those on skilled migrant visas, holiday makers with work rights and students with work rights, made more than 5% of the workforce before Covid, but have since dropped sharply as many left and new arrivals either weren't able or didn't want to come.
Wood announced:
- the immediate reopening of the Skilled Migrant Category work visa ahead of a full review of the settings;
- the immediate reopening of the parent visa category and an increase in the quota from 1,000 per year to 2,500; and,
- the removal of the planning range for residency visa, which has been around 50,000 per year for decades prior to covid.
“As the world recovers from COVID-19, labour shortages continue to be a global symptom,” Wood said.
“We are listening closely to the concerns of businesses, many of whom have approval to hire migrants but are finding it difficult to recruit internationally in a constrained labour market. Today’s changes work in tandem with the immigration changes already made and will help further relieve labour shortages, and ensure a competitive edge to attract talent to New Zealand," he said.
Wood said the resumption of the Skilled Migrant Category under the current settings would be at a threshold of 160 points, with subsequent selections at an increased threshold of 180 points, "to better align with the future direction of the category and our rebalance goals."
Wood said over 12,000 international migrants had applied for 511 different occupations across New Zealand since the Accredited Employer Work Visa opened.
"The Skilled Migrant Category provides a pathway for retaining the majority of these much needed skills in New Zealand permanently, strengthening our nation’s resilience to global shocks and economic security into the future.
“Getting the long term settings of the category right is important for New Zealand’s future economic security, and ensuring that we can attract and retain high skilled talent. At the same time as resuming selections, we are commencing consultation on a proposed new system that will future proof the category and will further complement the new Green List and Highly Paid residence pathways," he said.
“The previous system restricted the number applications which were progressed through a planning range, this meant that only 40% of SMC applications were processed in 2019."
“Our proposed changes, include removing the planning range, so that all applications that meet the criteria will be processed. It will also include a more simplified points system, will set a clear, fair and transparent eligibility threshold and offer several ways for people to demonstrate their skill level," he said.
“The proposed changes will also see a faster route to residence for very highly skilled migrants, such as university lecturers or scientists who hold a PhD, while other professionals such as teachers and registered tradespeople will have a clear route if they work for a period in New Zealand. The new system will improve processing times and there will be no cap on the number of people who can gain residence each year, if they meet the skills threshold.”
Parent visa category reopened
The reopening of the parent visa category and the increasing of the number of parent visas, along with reducing income thresholds, would encourage migrants to come, Wood said.
“We recognise the importance for migrants resettling here to have a pathway for their parents to join them,” Wood said.
“Re-starting the parent category is the right thing to do, and will see New Zealand become an even more attractive destination for high skilled migrants looking to resettle long term, knowing they can do so with their families. Alongside reopening and modernising the category it means more family reunifications,” he said.
The category will see a lower income threshold for sponsors, a new ballot, and the resumption of selecting expressions of interest from the existing queue starting 14 November, among other changes.
“The number of Parent Resident Visas granted each year will also increase to 2,500 a year. Resuming selections from existing Expressions of Interest queue is a priority, and I know how important this is to many migrant families. I’m pleased to say selections will resume on 14 November, and up to 2,000 visas a year will be granted to people with existing expressions of interest.
“As part of modernising the Parent Category, from today, any new expressions of interest submitted will go into a ballot rather than add to the existing queue. Moving to a ballot means people will avoid a lengthy queue and they will be eligible for selection for two years after submitting their expression of interest.
“An additional 500 visas a year will be granted from the ballot, starting with the first selection in August 2023."
Wood said migration was important to the nation's economic future.
“We recognise the important role the immigration system plays in our nation’s economic future. We are committed to working with businesses to ensure we are striking the right balance”, Wood said.
The proposed new system of skilled migrant visas would require applicants to have at least 6 points. This can be made up of 3 to 6 points based on their NZ professional registration qualification or income. People who meet the minimum skill threshold can also claim 1 point per year worked in New Zealand in a skilled job, up to a maximum of 3 points. All migrants will have to have a job, or a job offer in New Zealand, and be paid at least the median wage for ANZSCO 1-3 occupations or at least 1.5 times the median wage for ANZSCO 4-5 occupations
This is now open for formal consultation on the MBIE website. The first selection will be based on the status quo of 160 points, so those who have already submitted an expression of interest, or those who have made plans to come to New Zealand based on the current system, have an opportunity to apply at the current level. The first selection will take place on 9 November. People with existing applications will be advised about how to update their existing expressions of interest, or to withdraw and request a refund. ·
Subsequent selections will be at an increased threshold 180 points. The first at this threshold will be on 18 January 2023. Any expressions of interest submitted after 9 November will need to meet 180 points.
The changes to the Parent Category are:
- increasing the number of Parent Resident Visas granted each year from 1,000 a year to 2,500;
- lowering the income threshold for sponsors to 1.5 times the median wage for one sponsor supporting one parent, and 2 times the median wage for joint sponsors;
- for someone sponsoring more than one parent, the income threshold will increase by 0.5 times the median wage for each additional parent sponsored, up to 6 parents;
- expanding joint sponsorship arrangements to allow two adult children (siblings) to combine their income to meet the relevant threshold, rather than only with their partner (a maximum of two people sponsoring still applies)
- re-starting the expressions of interest (EOI) selections from 14 November for people who already have EOIs in the queue. Selections will be made in chronological order;
- introducing a ballot for new expressions of interest (EOI) selections, starting on 12 October 2022, with the first selection in August 2023;
- after that, selections are planned to take place every three months (August, November, February and May).
Reaction
Green Party Immigration spokesman Ricardo Menéndez March said the Government's decision to prioritise family reunification for high income earners, while forcing those on lower incomes to stay apart, was unacceptable.
“The Green Party is calling for an end to the Government’s blatantly unfair salary-based family reunification policy,” Menéndez March said.
"While we welcome the lowering of salary thresholds, the Minister has not gone far enough to make sure everyone has the right to be with their family regardless of income," he said.
“I don’t think anyone that comes here to work expects to be told that their parents’ right to come here to join their family will be determined by their salary. Essentially what the Government is saying is that if you come here to work in a big business where you can earn a high salary, then your parents can come with you."
He said childcare costs in New Zealand are among the highest in the OECD, so these visa settings exacerbate disadvantage for lower paid families.
(Updated with political reaction)
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