KEY POINTS:
At the last export education conference, guest speaker Auckland Chamber of Commerce chief Michael Barnett spoke of the need for New Zealand to be seen as welcoming to visitors wanting to study. Somewhat provocatively, he found NZ Inc wanting.
Although this came as no surprise to the English language school sector, it was refreshing to hear it from an astute outsider with no direct vested interest.
But it wasn't what the ministers wanted to hear. For the last nine years, the Government's welcome mat has been missing - certainly as far as English language school students have been concerned.
A key pointer to this is the discrimination against English-language students in seeking part-time work. Defying all logic, the immigration policy requires students to pass an external language test before they are allowed to seek part-time work.
Given these students want to travel to gain competency, the reality is they have two choices - try for a working holiday visa which allows them to work full-time for up to 12 months with no English test (but which restricts their length of study) or go to Australia where they can study and work part-time.
Not surprisingly, most choose the latter.
A few weeks ago, the Trade Commissioner's staff in Thailand presented their findings that work-rights for students was the most important thing for success in that market. Backing this up, counsellors from key source countries estimate this regulation alone drives at least 25 per cent of potential New Zealand-destined students to Australia. In smaller niche countries, the figure is much higher.
Our $2.3 billion export education industry should actually be at least $2.6 billion and heading towards $3 billion.
During 2008, the industry lost about $300 million in export income - because of policy settings that favour nobody.
Not only is export education being undermined but the opportunity for job growth is hugely curtailed. On average, every 10 more students creates an additional job - just in the school itself. The flow-on effect to tourism and accommodation is just as significant.
The other damaging effect of the former government's policies is to constrain diversity. Volatility in student demand, as seen in the highs and lows of the Chinese market, has been driven by the performance of those few markets large enough to tolerate the official settings. When those markets find more attractive immigration policies in other countries, as with China, the effect is hugely damaging.
Whenever a major market is lost to the industry, the political catch-cry has been to diversify. Well, every year we invest in marketing in European and South American countries to prepare for market spread and to be ready when the immigration regulations are corrected.
Why are we in this situation? Seemingly the last administration felt English language schools, particularly privately owned ones, were not to be encouraged.
Suggested changes to policy that would benefit the whole industry fell on deaf ears. Any direct rebuttal regarding work rights suggested students who achieved part-time work would displace locals - despite the fact students actually create jobs for locals way in excess of job displacement.
I'm sure the last Government would point to countless reviews and some changes that its officials delivered.
However, the bottom line is the English language sector is regulated to almost suffocation point, is subject to an industry tax (euphemistically called a levy over which it has no governance input) and its reasonable requests for immigration policy change have apparently ended up in a recycling bin.
At this time of economic crisis, New Zealand needs to be driving its export revenue up and creating sustainable new employment so we are looking to the new Government with great hope for change.
As a study-abroad destination, New Zealand is second to none and the quality of our English schools is up with the best in the world. We don't need government funding, we certainly don't need more regulations or codes. All we need is a sincerely placed welcome mat and the chance to compete on an equal footing with our neighbours across the Tasman.
* Rob McKay chairs English New Zealand, the body representing English language schools.
