Immigration Policy Update - Siân Roguski - Manager, Immigration Policy, MBIE June 2019 - Wolters Kluwer NZ
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Outline 1. Introduction and overview of MBIE’s role 2. Outcomes sought from the immigration system 3. The policy focus over the last year: addressing current and future challenges 4. Deep dive 1: changes to Post-Study work rights for international students 5. Deep dive 2: the Electronic Travel Authority (ETA) 2
Introduction 3
MBIE’s role and structure Immigration Policy provides advice and analysis to the Minister of Immigration on immigration policy development, to support and advance the Government’s objectives. This includes advice on the end-to-end immigration process - from selection through to settlement - border security and international obligations. Immigration New Zealand (INZ) is responsible for managing immigration to New Zealand. INZ decide on visa applications. In 2017/18, they: • Made around 943,000 immigration decisions involving 1.1 million people - 26,000 residence applications - 525,000 visitor visa applications - 250,000 work visa applications, and - 112,000 student visa applications • Received 1.5 million phone and email enquiries And they control New Zealand’s borders. • In 2017/18, they: - Prevented 3,400 people from boarding aircraft for NZ - Denied entry to 1,200 individuals at our border - Deported 600 people, with a further 2,300 departing voluntarily - Resettled 1,000 mandated refugees 4
Overview of numbers Population • One in four people in New Zealand were born overseas. • New Zealand has the second largest population living overseas (behind Ireland) and, relative to its population, NZ has the largest temporary labour migration flows in the OECD. Source countries • Our top 3 source countries for residence visas and temporary work visas are China, India and the UK, with a steady decline of over 50% from the UK over the past decade • $2.9 billion a year net fiscal contribution from migrants • In 2018/19, the top three source countries for visitor visas were China, India and Thailand. Workforce • 27% of the workforce are foreign born; 43% of the Auckland workforce are foreign born. • Around 20% of work visas currently require Labour Market Testing (Essential Skills and Recognised Seasonal Employment) 5
What outcomes are we looking for from the immigration system? 6
There is a broad set of desired immigration outcomes Security & Social Integrity Supporting migrants to participate fully in all Facilitating access while aspects of NZ life; managing border & Enhancing the wellbeing national risk; Maintaining of NZers and migrants, the integrity of the including enabling them immigration system, to form and maintain including protecting against their families exploitation Labour Market International & Economic IMMIGRATION Linkages & Trade Filling skill and labour OUTCOMES AND OBJECTIVES Supporting foreign shortages; Attracting policy goals and foreign investment and relationships; entrepreneurs; Reducing the costs of Supporting skilled international trade; migrants’ settlement so Facilitating the growth that they can quickly Humanitarian of key export contribute to NZ Fulfilling New Zealand’s industries international humanitarian obligations; Contributing to the global community’s efforts to assist refugees and protected people 7
Where has the policy focus been to address current and future challenges? 8
Labour market & economic outcomes What’s going well? ▪ Contribution to strong overall GDP growth ▪ Good employment outcomes for migrants ▪ Short adjustment period for migrants Current and future challenges ▪ Distribution of migrants heavily weighted towards Auckland ▪ The skill levels of skilled migrants has reduced ▪ Reliance on migration in lower-skilled, lower-paid and lower-productivity occupations ▪ Achieving good labour market outcomes for all New Zealanders ▪ Contribution of immigration to per capita GDP growth and productivity ▪ A long-term pool of temporary migrants with no pathway to residence What’s happening in this space? ▪ Confirmation of the New Zealand Residence Programme objectives in December 2018. ▪ Implementation of the Construction and Infrastructure Skill Shortage List in December 2018. ▪ A new approach to employer-assisted temporary work visas and regional workforce planning. Consultation closed in March 2019. 9
Social and humanitarian outcomes What’s going well? ▪ Most immigrants integrate well ▪ Positive attitudes and social cohesion ▪ New Zealand fulfils its international obligations ▪ World recognised resettlement scheme for refugees Current and future challenges ▪ We could better understand the impacts of migration ▪ Maintaining good outcomes from immigration ▪ Skills matching ▪ Achieving good outcomes for refugees What’s happening in this space? ▪ In September 2018, the Government announced that it will increase the annual refugee quota to 1500 per annum from July 2020. ▪ Process evaluation report of the Community Organisation Sponsorship Category (CORS) published in May 2019. ▪ Migrant Worker Exploitation Review underway . Due to report back to Cabinet by the end of 2019. ▪ Cross-government response to events in Christchurch. 10
International linkages & trade outcomes What’s going well? ▪ Contribution to Free Trade Agreements and New Zealand’s key international relationships ▪ Supporting tourism and other key industries Current and future challenges ▪ Security and integrity of the immigration system. What’s happening in this space? ▪ Changes to Post-Study work visas for international students announced in August 2018. ▪ A policy review of Pacific immigration policies, including temporary and residence settings, will be conducted. This includes a comprehensive review of the RSE scheme. 11
Security & Integrity outcomes What’s going well? ▪ Managing increased volumes ▪ Decreasing numbers of over-stayers ▪ Efficiency gains made Current and future challenges ▪ Responding to the changing global context ▪ Exploitation of migrants ▪ Funding settings ▪ Effective and modern regulation What’s happening in this space? ▪ New fees and levy schedule implemented in November 2018. ▪ The Electronic Travel Authority to be implemented from 1 July 2019 (compulsory from 1 October 2019). 12
Changes to Post-Study Work Rights International Students 13
International student market growth and its consequences Number of approved international student visas • Education is the fourth largest 40,000 100,000 export industry in New 90,000 Zealand, and is worth $5.1 Approved student visas by education provider type 35,000 80,000 billion in foreign exchange 30,000 each year. Total approved student visas 70,000 25,000 • Around 90,000 international 60,000 student visas are approved 20,000 50,000 each year. 40,000 • China is the largest source 15,000 30,000 country of international 10,000 students followed by India and 20,000 South Korea. 5,000 10,000 0 0 2013 2014 2015 2016 2017 2018 2019 (to 30 April) Schools Private Training Establishments Insititutes of Technology and Polytechnics Universities Total 14
What were the objectives of the changes? • To ensure that post-study pathways for international students are fit-for-purpose and contribute the skills and qualifications NZ needs; • To reduce the likelihood of students being exploited by unscrupulous employers, education providers and agents; • To minimise losses of genuine international students; • To incentivise study in the regions. 15
Post-Study Work Rights: Changes Made The changes: • Removed the employer link to the issuing of a post-study work visa (reducing the risk of exploitation); • Reduced the length of post-study work visas for students studying qualifications at lower levels on the NZ Qualification Framework. Designed in such a way to: • Still provide an opportunity for international students who have completed their qualifications to gain New Zealand work experience • Send a strong signal that New Zealand values migrants with higher level qualifications for residence; • Incentivise higher level study and direct students studying at lower levels into other visa options, such as the labour market tested Essential Skills visa; • Remove the employer-assisted post study work visa which has been contributing to the exploitation of some international students. 16
First-time student visa applications approved at tertiary level 40,000 37,200 35,000 33,200 31,700 31,600 30,000 30,150 25,000 21,800 20,000 17,300 15,000 15,250 11,950 10,000 10,500 9,500 7,800 5,000 0 2013 2014 2015 2016 2017 2018 Total first time student visa applications approved First time student visa applications approved at Level 4 - 7 non-degree 17
Level of study: incoming students 20000 18000 16000 14000 4 12000 5 6 10000 7 8 8000 9 10 6000 4000 2000 0 30/04/2017 30/04/2018 30/04/2019 18
Incentivising study in the regions 100,000 90,000 Approved international student visas 80,000 70,000 60,000 63% 62% 61% 59% 62% 50,000 60% 40,000 30,000 57% 20,000 37% 36% 37% 38% 41% 40% 10,000 43% 0 2013 2014 2015 2016 2017 2018 2019 (to 30 April) Outside Auckland Auckland 19
The Electronic Travel Authority Required from 1 October 2019 20
New Zealand’s ‘fantastic problem’ • Tourism contributes $39.1 billion a year to New Zealand. 365,000 people employed in New Zealand work directly or indirectly in tourism – almost one in seven jobs. • Over the past 10 years, international visitor arrivals have grown from 2.5 million to 3.9 million per year • By 2024 the forecast is for over 5 million arrivals per annum • Air traveller numbers have increased by 33% (between 2012 and 2017) • Cruise passenger numbers are also growing strongly at around 13% p.a.
Responding to these challenges • The changing global travel environment raises challenges and issues that our current visa and border security frameworks are not well-placed to respond to. • Immigration border settings needed to change to ensure: • faster and better facilitation for the increasing numbers of travellers • more secure borders • In order to respond to these challenges, the border system needs to have better advance information about more travellers: • Currently visa waiver air visitors receive only light-touch screening at check-in (1.3 million arrivals in 2016/17) • Cruise ship passengers and crew are not screened at all (200,000 non-NZ citizen arrivals in 2016/17). 22
What will the NZeTA look like? • From 1 October 2019, some visitors and transit passengers must have an Electronic Travel Authority (NZeTA) before travelling to New Zealand. • The NZeTA will not be required for NZ citizens or visa holders, or Australian citizens. • The NZeTA will: • improve the way travellers are assessed before they arrive in NZ • help reduce the time needed for border clearance, and strengthen border security • last for up to two years (for passengers) or five years (for crew) • cost $9.00 if applied for through the mobile application and NZ $12.00 via the website. Most visa waiver passengers will also need to pay the IVL ($35 per person). • On 1 October 2019: • Air passengers from 59 visa waiver countries will be required to hold an ETA. • All Air and Marine Crew will need to hold an ETA (or a visa). • Marine passengers will need to hold an ETA and/or a visa (an ETA granted to a visa required passenger travelling on a cruise cannot be used for air travel). 23
Questions? 24
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