Hidden Government Failure drains NZ Economy
25th June 2008
In the light of government’s confirmation that migrants bring over $8.1 billion
into our economy every year no one can ignore the financial benefit they bring
(ref: NZ Herald, June 15th).
Immigration press releases confirm the government is doing a great job
attracting skilled and talented individuals to our shores to close gaps in
skills and help New Zealand businesses forge ahead on the world stage.
However these reports don’t tell you that the government is badly dropping the
ball when it comes to retaining these workers. As a result 24% of skilled
workers who intended to stay here permanently leave in the long term – a
massive loss to our economy of potentially nearly $2 billion a year.
Despite this financial benefit – calculated by Rob Hodgson the Department of
Labour’s Immigration expert to be $3,547 a head – the government is failing to
protect this source of income due to a fundamental lack of understanding of not
only the newcomers but also the main causes of migration failure.
Skilled Migrants
We have a variety of people entering the country with the happy holiday makers:
refugees, skilled workers, returning Kiwis and family joining settled
residents. Of that group last year there were: 168,725 temporary work
permits/visas issued and 52,688 permanent visas and permits.
Those looking to stay permanently (a majority of whom obtain temporary visas
first) are by definition: skilled workers we need; healthy; of good character
and able to speak English well. This group not only transfer their worldly
possessions, savings and pensions here, they also pay a levy (collectively
$11.5 million a year) to cover government costs.
However this group is almost entirely ignored after they arrive. Government
studies show that despite 90% of them encountering serious difficulties while
settling into New Zealand society – something many Kiwis will empathise with
after a spell overseas – only 9% have any post migration contact from the
Immigration service such as the settlement pack all are supposed to receive.
Government Spending
The Department of Labour/Immigration received $62.5 million from the 2004
budget (to be spent over four years) to assist migrants and refugees and the
Ministry of Social Development got $21 million. Not a bad return spending only
$83 million to protect the $8.1 billion brought in by newcomers each year.
Yet the vast majority of government spending, including that migrant levy, goes
on research and helping newcomers with English language. From the 2007/08
migrant levy alone spending included $3.75 million towards English Language
tuition; and $3.684 million on Research.
Only 20% ($2.4 million) of the levy payments went to settlement assistance, the
majority of which was spent on humanitarian work with the 750 refugees New
Zealand receives each year.
Dropping the ball
The government would like you to believe they are fully supporting skilled
newcomers. After all over 2006 – 2008 they put $11.7 million into the
Settlement Support initiative to help migrants and refugees. So what are they
doing and why are so many leaving?
The government launched Settlement Support (SSNZ), costing $11.7 million over
2006 – 2008. This initiative includes many excellent and dedicated staff,
however according to official releases “Settlement Support New Zealand connects
migrants and refugees with existing services in local communities. It does not
actually provide those services.”
So SSNZ doesn’t provide the services. We have found that even direct funding for
migrants is invariably tied in with spending on refugees. For example the
Refugee and Migrant Centres (which receive $1.5 million a year). These again
provide a great service, but not to migrants because they generally view
accessing services linked with refugees is seen as a sign of failure and source
of shame.
There are other initiatives, but they are small and regional run by passionate
people but limited in their effectiveness. As a result nearly a quarter of
those intending to stay here permanently are leaving again – either heading
home or over to Australia. That’s potentially nearly $2 billion annually
leaving our economy!
The solution
In March 2005 move2nz was launched by a migrant couple at their own expense to
counter the difficulties these workers and their families are facing. Offering
completely free services to new, prospective and settled migrants and
specifically targeting this majority group being missed by other services
membership has expanded to 27,000 couples and families from 189 countries.
Without every receiving government funding move2nz started a free website,
move2nz.com, which brings together migrants by offering international online
support. In 2006 they opened their first walk-in centre providing free face to
face assistance 5 days a week and national telephone support on every aspect of
settlement and integration and this year the team were awarded the NetGuide
People’s Choice trophy for the ‘Best Community Site’ in New Zealand.
Consisting of only two full time and two part time staff, the team successfully
assisted with over 7,000 enquiries each year, a number comparable to that
handled by the 45 officers employed by SSNZ. The move2nz organisation also runs
on approximately 3% of the budget allocated to SSNZ.
For the past two years move2nz has attempted to assist government staff to raise
the rate of successful settlement. Their work has expanded beyond government
restrictions to include running national and international events, regular
social gatherings and proactive international seminars in 2007 and 2008.
Providing free services is not easy and a request to the Finance and Immigration
ministers for funding, their first, has been declined on the basis that there
is not enough money available and that move2nz was duplicating undefined
current services anyway.
move2nz is appealing this decision and has started an online petition which
collected over 1,000 signatures in the first week. If you feel that move2nz is
a useful and needed service please add your voice.
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