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Home / Business

Immigration: Entrepreneur scheme is ‘a dog’, NZ missing out on job creators, adviser says

John Weekes
By John Weekes
Senior Business Reporter·NZ Herald·
8 Sep, 2023 03:44 AM4 mins to read

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Immigration Minister Andrew Little has ordered a review into aspects of the work visa application process after ‘serious concerns’ were raised by a whistleblower. Video / Mark Mitchell

Outrage over visa scheme abuse could be obscuring failures to attract highly skilled migrants and entrepreneurs, an immigration adviser says.

Recruitment agency boss Sharon Davies this week said many firms were missing out on the accredited employer work visa (AEWV) scheme and supply chains were at risk.

David Cooper, Malcolm Pacific chief executive, said the scheme was probably rushed through last year by the Government before immigration officials were ready for it, but was often performing well.

He was more concerned about what he called New Zealand’s failure to attract highly-skilled and investor migrants.

“Right now, the skilled migrant category is closed.”

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Expressions of interest for the skilled migrant category resident visa closed in mid-August and will reopen with new criteria on October 9.

“The other challenge we face is we are not doing enough to attract investors and entrepreneurs to New Zealand,” Cooper said.

He added: “We’ve got an entrepreneur policy that’s a dog, and hardly anyone applied.”

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To be eligible for the entrepreneur work visa, a person must have $100,000 to invest, a business plan, and able to claim 120 points on Immigration NZ’s points scale.

Migrants from South American countries gathered on August to share their story of how a visa job scam affected their lives. Photo / Alex Burton
Migrants from South American countries gathered on August to share their story of how a visa job scam affected their lives. Photo / Alex Burton

“In terms of the active recruiting of highly skilled high net worth people, it’s fallen off the radar,” Cooper said.

He said the country was missing out on people who could invest and create new jobs.

Cooper spoke to the Herald after debate resurfaced on the AEWV scheme.

Abuse of the accredited employer scheme has since surfaced, and the whole policy is under review.

But Cooper said in fairness, the AEWV scheme was not as bad as some critics made it out to be.

“In general terms, the process for reputable companies is working well.”

But the AEWV scheme was expensive compared to predecessors, Cooper said, and involved three stages.

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First, a business had to get accreditation, costing $740 for a company wanting up to five migrants, and $1220 for “high volume” requests.

Cooper said the second step was a job test, at $610 per occupation, not per employee.

For example, a hospital wanting to bring three radiologists over would pay $610 but if it wanted one radiologist and one psychiatrist it would pay $1220.

Cooper said officials were then supposed to ensure no New Zealander could fill the role or roles being sought.

Step three was getting the visa for the worker, costing about $750.

“That’s a lot of coin and that’s before airfares and all the other stuff.”

Cooper said he was confident the review would get answers, even though he said it was disappointing the private sector was not involved in the review.

Meanwhile, Immigration New Zealand responded, two days after being approached about concerns the AEWV system was missing many employers and causing supply chain risks.

“Any employer who wishes to employ a temporary migrant under the AEWV must first become accredited,” said Simon Sanders, deputy chief operating officer immigration.

“This first step, employer accreditation, was introduced in May 2022, job checks were introduced in June and work visa applications followed in July last year,” Sanders added.

“This means that the assertion that employers are waiting up to two years for accreditation is inaccurate.”

Sharon Davies, managing director of recruitment marketing agency Talent Propeller, earlier this week said the current model was inefficient.

And she said some companies were waiting up to two years just to cross the first AEWV hurdle, but Sanders said that was impossible.

Meanwhile, Sanders said an independent review into the AEWV scheme would not solely focus on migrant exploitation.

“The review will consider and report on the appropriateness of all aspects of the employer accreditation and job check processes undertaken by Immigration New Zealand as part of AEWV scheme,” he said.

“We fully support the review and we are committed to improving any processes deemed necessary.”

John Weekes is online business editor. He has covered courts, politics, crime and consumer affairs. He rejoined the Herald in 2020, previously working at 95bFM, Stuff and News Corp Australia.



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