Prime Minister John Key today used his speech to the National Party conference yesterday to reiterate his Government’s commitment to an open economy which embraces free trade and immigration.
. . . Earlier generations could never have imagined the global opportunities opening up for New Zealand.
I want to lead a country that embraces those opportunities.
An open and confident country that backs itself on the world stage.
As I’ve said many times, we won’t get rich selling things to 4.5 million New Zealanders.
But we could by selling to 4.5 billion people overseas.
Our Party supports strong international connections.
We value the benefits that free trade agreements deliver and the opportunities they offer.
I back our farmers, our manufacturers, our ICT companies and in fact all our export industries to succeed.
If we can get an equal crack at world markets, we’re up there with the best in the world.
That opportunity is what free trade is about for New Zealand.
When the previous Government, with the full support of National, signed a free trade agreement with China in 2008, our annual exports to that country totalled $2.5 billion.
Since then, they’ve quadrupled and China is now our biggest trading partner.
That FTA has had huge benefits for New Zealand.
Just a few months ago, I was in Seoul to witness Tim Groser signing another free trade agreement – this time with Korea.
When that agreement comes into force, half our exports to Korea will immediately be tariff-free, and almost all the rest will follow.
I can tell you that the kiwifruit growers of Te Puke are going to be delighted when the 45 per cent tariffs they currently face are finally removed.
We’re also in the final stages of negotiating the Trans-Pacific Partnership Agreement.
TPP has been a big focus for our Government.
A successful conclusion will mean a trade agreement with a number of countries, including the giant economies of the United States and Japan.
This is something that successive governments in New Zealand, of both stripes, have been actively pursuing for many years.
That’s because it will mean better deals for Kiwi producers and exporters, better access to world markets, and better prospects for growing those markets in the future.
It will help diversify the economy through a broader range of trade and investment relationships.
And it will flow through to higher incomes and more jobs for New Zealanders.
The ability to export freely and earn the returns from exports unhampered by tariffs and other protective measures is one part of our international connectedness.
Immigration is the other.
New Zealand’s connectedness with the world is also about people coming to New Zealand to live and work.
Immigration benefits New Zealand because people coming here provide more of the labour, skills, capital and business links we need to grow.
A lot of people coming to New Zealand settle here in Auckland.
But as I go around other parts of New Zealand, mayors and employers often tell me they can’t get enough workers of the type local businesses need.
Southland, for example, is always crying out for workers in the dairy sector.
Across the whole South Island, in fact, the unemployment rate is a very low 3.6 per cent.
I can assure people that New Zealanders will always be first in line for jobs. That will not change.
And Auckland, as our largest city, will continue to grow.
But I believe we can do a better job of matching the needs of regions with available migrants and investors.
So today I’m announcing some changes to our immigration settings.
The first is aimed at encouraging people who come to New Zealand as skilled migrants to take up jobs in in the regions.
Around 10,000 skilled migrants get residence each year, together with their family members, and almost half of them come to Auckland.
We want to balance that out a bit, by attracting more people into other parts of the country to help grow local economies.
Currently, skilled migrants with a job offer get 10 extra points if that job is outside Auckland, and those points count towards the 100 they require.
From 1 November, we will treble that, and give them 30 extra points.
In return, they’ll have to commit to a region for at least 12 months – up from the current requirement of three months.
New Zealand also needs entrepreneurs to start new businesses, expand existing firms and create jobs.
So the second change we’ll make is to encourage entrepreneurs wanting to come to New Zealand to look for business opportunities in the regions.
Last year we launched an Entrepreneur Work Visa, targeting migrants who offer high-level business experience, capital and international connections.
Currently, people applying for this visa get 20 extra points if they set up a business outside Auckland, and that counts towards the 120 they require.
From 1 November, we will double that to 40 extra points.
Immigration New Zealand expects to approve up to 200 people next year under this visa.
With the changes we’re making, we expect to see most of these entrepreneurs setting up or growing businesses outside Auckland and creating new jobs across the country.
The third change I’m announcing will help employers find out faster whether New Zealanders are available to fill a particular vacancy, before they lodge a visa application with Immigration New Zealand.
From 1 November, they’ll be able to contact Work and Income directly to check availability.
This is a small measure, but it’s been really appreciated by employers in Queenstown and we’re extending it across the country.
The fourth announcement I want to make today is that the Government intends to provide a pathway to residence for a limited number of long-term migrants on temporary work visas in the South Island.
These people and their families have been in New Zealand for a number of years.
Their children are at schools. Their families are valuable members of their communities. And they are conscientious workers paying their taxes.
Their employers want to hold onto them because there aren’t enough New Zealanders available.
Around 600 overseas workers in lower-skilled occupations in the South Island have been rolling over short-term work visas for more than five years.
We envisage offering residency to people in this sort of situation, who commit to the South Island regions where they’ve put down roots.
We’ll set out the details of this pathway early next year.
Finally, the Government will consider a new global impact visa.
This would be targeted at young, highly-talented and successful technology entrepreneurs and start-up teams, who want to be based in New Zealand, employ talented Kiwis and reach across the globe.
There’s been quite a bit of interest in this idea and we’re going to look at it carefully over the next few months.
Ladies and Gentlemen.
Taken together, the changes I’ve announced today will contribute to a better balance in our immigration settings.
They will help spread the benefits of migration across the country, particularly in those regions crying out for workers, skills and investment.
As I said earlier, we need to be more connected with the world, because that’s where our opportunities come from.
This is just one small part of that approach.
We’ll also continue to press on with free trade agreements, build stronger investment links, and embrace the openness and connectedness that characterises successful countries in the 21st Century. . .
. . . “Thousands of people from all over the world are moving to New Zealand because it is a good place to live, work and raise a family,” Mr Woodhouse says.
“Those people make a significant contribution to New Zealand’s economic growth by providing skills, labour and capital we need, along with valuable cultural and business links.
“New Zealanders will always be first in line for jobs and that won’t change,” Mr Woodhouse says.
“Currently, many new migrants settle in Auckland, which faces infrastructure challenges as it transforms into a truly international city. At the same time, business owners in other parts of New Zealand often struggle to find enough skilled workers to meet their demands.
“While there are already incentives to encourage migrants to move to areas outside of Auckland, we can do a better job of matching the needs of regions with available migrants and investors,” Mr Woodhouse says.
New measures to take effect from 1 November include:
- Boosting the bonus points for Skilled Migrants applying for residence with a job offer outside Auckland from 10 to 30 points.
- Doubling the points for entrepreneurs planning to set up businesses in the regions under the Entrepreneur Work Visa from 20 to 40 points.
- Streamlining the labour market test to provide employers with more certainty, earlier in the visa application process.
In addition, from mid-2016 a pathway to residence will be provided for a limited number of long-term migrants on temporary work visas in the South Island.
“Unemployment across the Mainland is nearly half that of the North Island, and labour is in short supply,” Mr Woodhouse says.
“Most workers in lower skilled jobs must apply to renew their work visas every year. Some of these people have worked hard and paid tax to New Zealand for many years. They are valued at work and in their community, but have no avenue to settle here permanently.
“We’re looking at offering residence to some migrants, who have applied at least five times for their annual work visa. In return, we will require them to commit to the South Island regions where they’ve put down roots.”
These are very welcome changes which will make it easier for immigrants to settle in the regions and for employers in the regions to attract and retain staff.
I know a family who will benefit from the new policy to allow people on temporary visas who’ve been here for at least five years to settle.
They’ve been here for a decade, working, paying tax and contributing to the community.
They’ve spent 10s of thousands on immigration consultants but don’t have enough points to gain residency.
They are good people who would make good citizens and now they will be able to stay in the place they call home.
That’s good for them and the small town where they live.
Mr Woodhouse says the Government is also considering a new Global Impact Visa to attract high-impact entrepreneurs, investors and start-up teams to launch global ventures from New Zealand.
“I will announce further details later this year, but we envisage this visa would be offered to a limited number of younger, highly talented, successful and well-connected entrepreneurs from places like Silicon Valley,” Mr Woodhouse says.
This announcement shows National is open to business and people, a policy from which we’ll all benefit.