New Zealand Immigration News: Aug 2009

Upcoming New Zealand Immigration Seminars

Spring Is Sprung In New Zealand

I love this time of year, late July through early August when spring arrives in Auckland. A month or so after the shortest day (on which the sun comes up at 7.30 a.m. in the morning and sets at 5.15 p.m.) we now enjoy half an hour more sunlight a day and it really does seem to make all the difference to how one feels. It also amazes me that temperatures increasing by only one to two degrees can also make all the difference. Temperatures at this time of the year tend to average 15 to 16 degrees as opposed to 14 to 15 degrees through July. The humidity of Auckland tends to make these temperatures feel warmer than what they might sound to someone who does not live in a humid environment.

Through the Auckland War Memorial Domain thousands of Daffodil flowers poked their heads up about three weeks ago and are now carpeting many of the grassy areas there with their vivid yellow blooms.

In our harbour the fish are starting to feed again, fattening up for the big spawn which will begin in six to eight weeks.

It sounds so clichéd I know, but for those people who come from climates where they don't have four seasons there is really something magical about living with the changes. At this time of year there is a genuine sense of renewal and excitement that summer is just around the corner.

New Zealand Immigration Changes

The New Zealand Government recently released a new Business Investor Policy to replace the disastrous effort of the previous Government. When the previous Government's Investor Policy was dropped two weeks ago, New Zealand had attracted the sum total of twenty-three investors who were willing to part with significant sums of money. The Government replaced the three Categories of Business Investor with two:

1. Investor Plus – this is for people with NZ$10 million who are willing to transfer and invest in New Zealand for three years. Notable changes are the elimination of any requirement to speak English, but a continued requirement to show the funds were lawfully earned or acquired and an investment in NZ dollars in New Zealand.
2. Investor Category – remains a point system, but reduces the minimum amount of investment to NZ$1.5 million for four years and increases the cut off age to 66. Business experience is necessary, English language is a requirement (but at a graded level i.e. points are awarded depending on the degree of English) and applicants must have an additional $1 million in net worth, although this does not need to be transferred to New Zealand.

Normal health and character criteria apply to both Categories.

This is a major step forward and a policy that we are excited to take to the market. Since sending out a newsletter and writing a blog about the change in policy, we have already received a number of serious inquiries.

Entrepreneur Plus Immigration Category?

Around November 2009 we are expecting the Government to implement a new policy for the self-employed which we understand will be known as Entrepreneur Plus. This Category will require people to invest NZ$500,000.00 into an existing or new business and create and maintain three jobs for a period of three years. This will not be like the current Long Term Business Visa where the business must be owned and operated for a period of time before the residence application is filed, but the applicant can go straight to residence and if granted will be subject during those three years to the maintenance of those jobs.

I don't imagine that there will be a huge number of takers for this policy, but it does dovetail nicely between the current Long Term Business Visa and Entrepreneur Policy which requires applicants to buy, buy into or establish a business with no minimum investment and the creation of at least one job over two years being the basic criteria to get the permanent residence at the end.

Third Telco Enters The New Zealand Fray

Great to see that 2degrees has entered the market and is offering phone to phone call rates half that of Telecom and Vodafone.

Long may competition rule.

The Danger Of Immigration Chat Groups And Forums

I recently wrote a blog about the dangers I see in online immigration related chat groups and forums. Before anyone abuses me I do concede that they can be very useful in certain circumstances, but I am horrified at how much well intentioned but misleading advice is given to people about the Visa and Permit process and people's eligibility.

There is one chat group that someone, somehow, subscribed me to that I am simply unable to escape. I was a participant in this chat group until a few years ago when I realized that those who used it tended to be those looking for free advice, not necessarily good advice. It got to the point where I was either going to have to start taking tranquilizers or I needed to stop reading them as I was getting too frustrated for my own mental health. I managed to unsubscribe but, as I say, somehow I am now back in it and from time to time I sneak a peak at what can best be described, when it comes to the Visa process, as the blind leading the blind.

A fortnight or so ago a South African who was considering moving here posted a question which is one we deal with every day “When I land in New Zealand what public health cover am I entitled to?” Within the space of six hours there were six different answers from six different people and all were wrong. I only hope that he was smart enough to work out that six different answers from six different people to a pretty straight forward and simple question indicated that he needs to find a more reliable source of information.

The same chat group is full of people giving advice to South Africans (in particular) that the New Zealand Government is no longer renewing Work Permits and not issuing them, no one is finding jobs, the immigration process is “easy” people are being “deported” because they are losing their jobs.  In the same week IMMagine New Zealand managed to get Work Permits for:

• A minimum wage Security Guard with an Auckland firm;
   
• A Fabricator Welder from the Philippines;
   
• A self-employed Share Trader from Cape Town, to work as a Shepherd on a high country sheep station in the South Island!!

In recent months we have read newspaper reports and chat group babble about South African Security Guards being “deported” from New Zealand because their Work Permits won't be renewed, the Minister, himself, ordered the revocation of six Work Permits for Philippino Fabricator Welders in Taranaki and to get a Share Trader a Work Permit as a Shepherd was, even by our own standards, something of an achievement. The point is, however, if these three individuals had asked a question of the participants in these chat groups and forums whether they would be likely to get Work Permits, I am absolutely certain they would all be told “no”. The reality, however, is quite different when you know what you are doing.

So a word of caution. These chat groups and forums are, on many levels, very helpful and valuable, but I do wish that participants were wise enough to understand the difference between an opinion and fact. What happened to those offering advice on the immigration process does not necessarily mean the same will apply to someone else, especially given the inconsistent implementation of immigration policy by the Immigration Department.

The best source of information will continue to be Licensed New Zealand Immigration Advisers such as ourselves.

The New Zealand Economy And Employment Market

I would like to declare the local recession formally over (but I'm not sure anyone will listen). All the evidence, however, does tend to support the notion that in the September quarter New Zealand will have returned to positive growth. The consensus also appears to be, however, that that growth will be somewhat anaemic with our major export markets still suffering (with Australia perhaps being the exception). What is clear is the New Zealand Government's intention to try and avoid another housing property bubble and restructuring the economy so that we return to focusing our investments in exporting rather than have an economy booming through debt driven domestic consumption.

Housing prices have stabilized across the country and predictions are being made of 9% increase in values over the next twelve months. This has largely been driven by a significant increase in net migration. As the recession has bitten globally a lot of Kiwis have returned home from places like the UK and Australia, fewer are leaving the country and non New Zealand inwards migration is steady. This has resulted in a net gain over the last 12 months of approximately 12,000 people all of whom need houses. Building consents are very low at the current time meaning new housing stock is not being added to the market, demand is building and hence the expectation as property values will rise. That must be terribly worrying to the Government for the reasons outlined above. There is no talk of reducing migrant numbers and in fact a month or so ago the Government reconfirmed the status quo in respect of their annual target for 2009 – 2010 of 45,000.

The unemployment rate continues to drift upwards and has recently reached 6%. What is interesting is what is happening within the labour market. The first point to note is the size of the working population has grown significantly over the past 12 months due to fewer New Zealanders leaving and more New Zealanders returning. This has added then to the unemployment rate and the increase is not reflecting increased lay-offs within New Zealand, although lay-offs are definitely occurring.

Fewer companies are now intending to shed staff with four out of five confirming they have no plans to over the next few months. “Own outlook” measures of economic expectations are now increasingly positive. It's also clear from the latest labour market survey results that the hours worked have fallen in many businesses which tends to reinforce the view that I have had all year which is businesses are holding on to staff simply because it has been difficult to get anyone before this recession for a number of years to do anything because unemployment was so low, firms are concerned that if this recession does end soon and perhaps this time next year they are expanding again they simply won't have the staff to do it. The latest household survey is the first indication with empirical evidence that supports this view.

Employment growth over the past few months has been greatest in areas of health and community services, education, along with property and business services. Manufacturing and construction are the two hardest hit.

It is extremely gratifying to note that the significant majority of our clients who are coming here to find work in order to progress their residence aspirations have almost all secured skilled employment. What is clear, however, is that during 2009 the average time it is taking our clients to secure work is between six and twelve weeks. Work Permits are becoming more of an issue with some occupations however, and simply getting a job does not guarantee Work Permits.

I have to say from where I am sitting it appears the worst of the storm is over, New Zealanders are knuckling down, saving more (which will all help the current account deficit), spring has arrived and the storm clouds are starting to disperse.