A foreigner can work three years but must move home afterwards, "regardless of whether we can find a Kiwi to do the job or not", and Wallace said immigration rules should be relaxed for the right aged care workers.
Radius Matua manager Craig Shipton said its occupancy rate was "very high" at 97 per cent and immigration was also a "real concern".
"We have wonderful overseas staff. We advertise in the hope of getting Kiwis that are passionate about the job. Sadly, it seems lacking, so the immigration policy directly impacts us."
Tauranga Mayor Greg Brownless said the aged care sector was a special field requiring the right temperament and disposition.
"With my own family, I've seen the difference that good care and good staff make. I would rather people - whether locals or foreigners - who have a heart for the elderly looking after them."
National's health spokesman Dr Jonathan Coleman said the Bay had a growing seniors population, so it was important the Government planned appropriately to meet the demand for workers.
Coleman said such plans were being made under the National government and its pay equity settlement included provisions for career development and pay raises while making caring a more attractive career.
Minister of Health David Clark was unable to respond to queries before publication.