Migrants facing $1m bond

By VERNON SMALL

Immigration Minister Lianne Dalziel is considering forcing investment category migrants to invest the $1 million they are required to bring in low-yielding Government bonds.

An evaluation of the business immigration policy, released yesterday, has found that about 98 per cent of those in the investment category simply parked their money in trading bank accounts to meet their entry requirements.

Ms Dalziel said yesterday she had asked officials to look at overseas experience, where some were asked for longer-term investment in nil or low-interest bearing Government stock.

"At the end of the period they essentially get their capital back, but in the meantime that capital has been available for venture funds or infrastructure development. And that is certainly an option I am seriously looking at."

The present policy was introduced in 1999 to make New Zealand a more attractive place for business migrants and increase the population's skill base.

The evaluation report would be fed into a wide-ranging review of immigration policy, which Ms Dalziel said would lead to policy aimed at recruiting the best people for the country who could successfully settle.

The recent "work to residence" programme providing a direct link to the labour market with a two-year work permit followed by residence "was very much a signal of future direction".

But Ms Dalziel rejected Sunday newspaper reports that she was reviewing the skills and business migrant programme in secret.

The 1999 policy had created several business migrant categories: entrepreneur, business investor, employees of businesses relocating to New Zealand, and a temporary entry class of long-term business visa holders (LTBV).

Up to last March, 12,491 people had been approved through 4075 applications, made up of:

* 2167 applications through the LTBV.

* 1822 applications through the investor category.

* 56 applications through the entrepreneur category.

* 30 applications through the relocating business category.

The assessment found investor applicants intended to bring in an average of $1.28 million each. The average LTBV migrant intended to bring in about $449,000, although this was not always verified.

Ms Dalziel said the evaluation had identified other problems, but the response rate to the survey was low.

Many approached were either overseas, not at their last known address, or refused to take part. Only about 10 per cent responded.

"It can be taken as a given that participation in the evaluation process will be a prerequisite of future policies," she said.

There was also a concern that the business schemes were being used to access cheaper education.

Seventeen per cent of long-term business visa holders were absent from the country at any one time and almost six per cent were absent for more than six months. In the investor category 55 per cent were absent from the country at any one time.

Education Minister Trevor Mallard is examining the definition of "domestic student" to get around the problem and Ms Dalziel is looking at the returning resident visa policy.

"We are looking to see whether there are people using the policy simply to avoid international student fees."

Further reading
Feature: Immigration