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Home / New Zealand

Swooping on the immigrant debate

Wairarapa Times-Age
16 Jun, 2014 06:59 PM7 mins to read

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BLAME GAME: Foreigners are blamed for surging house prices.PHOTO/FILE

BLAME GAME: Foreigners are blamed for surging house prices.PHOTO/FILE

PROMISING to restrict immigration has long been a ticket to Parliament for minority parties appealing to a certain type of voter.

But this year Labour and National are the ones at loggerheads over whether to restrict the number of immigrants, and who should be let in.

High-profile cases of wealthy businessmen appearing to buy residency or citizenship have stirred controversy, and Labour's promise to cut immigration levels to cool the housing market seems to have struck a chord with some voters.

In May, 3 News and One News ran polls asking whether immigration should be restricted, with 62 and 57 per cent respective support.

But immigration experts are questioning whether a beat-up on foreigners is a smart move for politicians who may rely on them for votes in years to come.

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WHAT THE POLITICIANS SAY

Prime Minister John Key has been clear about attracting migrants to New Zealand.

At a conference last month he stated foreign students, investors and immigrants were welcome because the future of New Zealand's economic development lay in selling things to the rest of the world.

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Mr Key has rejected Labour's claim that New Zealand has a housing crisis and is promising to increase affordable housing stock and free up building consents.

In the May Budget, Treasury suggested up to 41,000 new migrants could move to New Zealand by the end of this year.

Meanwhile, Labour leader David Cunliffe says more immigrants equal a greater strain on our property prices, which are already out of reach for many Kiwis.

He has been vague about how he would restrict immigration under a Labour government, but says it needs to be pulled back to a sustainable level that takes the best candidates with most suitable skills.

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However, "Labour has always been committed to an open and multi-cultural society and we welcome the contribution that our migrant communities make", he told TV3's The Nation.

Alongside reducing immigration, Labour would increase housing supply, apply a capital gains tax to domestic investors and make it harder for overseas speculators to drive the property markets.

But how much pressure are foreigners really putting on domestic house prices?

Housing Minister Nick Smith released IRD-compiled figures in May on the proportion of New Zealand homes owned by offshore buyers.

The data showed 11 per cent of homes were owned by non-residents, but did not distinguish between expat New Zealanders and foreign buyers.

Massey University sociologist Paul Spoonley says, apart from New Zealand First, political parties have tended not to make immigration a major election issue for quite some time.

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"Any political party which makes immigration an issue treads a very fine path because it easily alienates the immigrant communities."

The immigrant recruitment system allows the Government to adjust how many arrive in New Zealand relatively easily and quickly, he says.

New Zealand Institute of Economic Research's chief economist Shamubeel Eaqab says most housing demand in New Zealand is caused by natural population growth and changes in domestic housing composition.

"As we're getting older we tend to live with fewer people per household ... you need more houses for the population."

A NEW KIND OF VOTER

The face of New Zealand is inevitably changing, as more migrants choose to make it home.

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In the 2013 Census, 74 per cent of the population identified as European, up from 67.6 per cent in the 2006 Census.

Maori made up 14.9 per cent, up from 14.6 per cent, Asians made up 11.8 per cent, up from 9.2 per cent, and Pacific Islanders made up 7.4 per cent, up from 6.9 per cent.

Meanwhile, 2010 projection figures from the Office of Ethnic Affairs showed New Zealand's Asian population was expected to grow to around 16 per cent by 2026.

Professor Spoonley predicts by that time, working-aged Asian New Zealanders will number about 540,000, a larger group than Maori and Pacific Islanders.

The Asian community is split in three ways: by language and culture, country of origin, and how recently they've arrived in New Zealand.

As voters, they are increasingly emerging as a force to be reckoned with, he says.

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More than a third of those in the Asian community did not vote in the 2011 election. But the longer they stayed here, the more likely they were to vote.

Meanwhile, Kiwi-born or raised Asians are now coming of political age.

"There are new political actors and new political leaders coming through, particularly from some of the younger members of the community as they reach political maturity."

It's difficult to know how Asian New Zealanders will vote as they become politically involved, Professor Spoonley says. "We've still got three-quarters of the Asian community in New Zealand who have been born overseas but by the next election I think you're going to see more participation."

FOREIGN INVESTORS

Not only has Labour promised to cut immigration, it would consider changing investor schemes introduced by National in 2009.

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The Investor Plus scheme allows applicants to get residency if they invest $10 million in New Zealand and commit to living here for 44 days a year, even if they speak little English and have no business experience.

The Investor scheme requires a $1.5 million investment, but has stricter language, age and travel tests.

Several wealthy but controversial businessmen have settled here under the Investor Plus scheme, including Kim Dotcom and Chinese businessman Donghua Liu, who has pleaded guilty to domestic-violence charges.

Immigration New Zealand data shows the number of successful Investor Plus applicants jumped from nine to 21 from 2010 to 2013, and from 30 to 99 in the Investor category over the same period.

Labour immigration spokesman Trevor Mallard said they would be looking at the schemes closely if in power.

Professor Spoonley says although the investor schemes have always had small numbers, they need to be managed carefully, otherwise it conveys the sense of "paying for citizenship".

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"As soon as you get into a scheme which prioritises those who can pay the most you're on very difficult territory.

"You (need to) have very clear expectations about what happens to the money, very careful checks on ... the applicant and you really do need to make sure the scheme isn't compromised by the individuals you approve."

CHANGING THE LENS

Mr Eaqab, an immigrant from Bangladesh, says politicians have been using immigration as a scaremongering tactic for too long.

"Even though it's in the very fabric of New Zealand it's still a very sensitive topic.

"There is a real risk that we take a knee-jerk reaction to immigration."

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Immigrants are not settling here "on a whim".

So politicians should not try to use immigrants' long-term commitment as a short-term political tool.

It's possible Labour's policy will gain traction with a minority of voters, because it's always worked for Winston Peters, he says.

"You play the race card, you win 5 per cent of the vote."

He refers to Paul Collier's book on immigration, Exodus.

It states a country needs to talk about immigration openly, not through lenses of "envy and racism".

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"(We need) a reasoned and deliberate discussion onnumber one, why we want immigration, number two, how many people we want, and number three, what kind of people we want.

"Right now we don'tactually have a population strategy."

None of the political parties, National included, has given a clear indication of how New Zealand should look in the future, he says.

The country needs a "mature" debate.

"Everybody thinks that talking about immigration is being racist.

"I don't think it is. Immigration happens and it's going to be more important going forward."

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