Around two-thirds of new migrants to New Zealand settle in Auckland, and are rapidly changing the social and economic complexion of the city. At the time of the 2006 Census, around 40 per cent of Aucklanders were born overseas. The proportion of new immigrants in Auckland should continue to grow, and that's a good thing.
The 21st century has been called the century of the city. Around the world, millions of people are pouring into cities to be near the industries that generate wealth. This rapid urbanisation is best seen in China and India which have leveraged the concentration of skilled labour to achieve spectacular economic growth.
Fundamental to the success of any city in the 21st century is its ability to lure the best, brightest, most enterprising people. Those skills drive new industries that will invest and deliver high returns and create long-term growth and revenue.
But the competition for talent and capital is intense. Auckland is up against cities with far deeper pockets, that are closer to the action of global commerce, and can offer a wider range of career choices and higher salaries than we can possibly offer here.
Thankfully though, competitiveness is not just about size and salaries. If it was, Auckland wouldn't stand a chance against the Tokyos, Shanghais, Melbournes, Singapores and Hong Kongs of our Asia-Pacific neighbourhood.
Competitiveness is more holistic than that. Many migrant professionals will have taken a pay cut when they moved to New Zealand. The reason they were prepared to do this - and take what might be seen as a career downshift - was that they place a premium on other things. Catching a snapper in the harbour, having a back yard for the kids to play in within sight of town, sea that is safe to swim in, a well-rounded existence that accepts a balance between work and family time, can be enormously appealing to someone from a crowded overseas city.
According to the OECD's Wellbeing Index, New Zealand scores highly on most measures of wellbeing - education, life expectancy, happiness, air quality - but the average wage is less than the OECD average.
Liveability, then, is Auckland's secret weapon. The challenge is to recognise its importance, elevate it as a competitive advantage, and use it strategically to attract talent.
Creating this pool of talent will have a snowball effect that will further build momentum in the region's economy. A community of highly skilled, entrepreneurial people won't go unnoticed by foreign investors and capital. As former New York mayor Michael Bloomberg said: talent attracts capital more effectively and consistently than capital attracts talent.
So what needs to be done?
Be forward thinking
Migrants are optimists who look to a better future. They will be most comfortable in a place that shares their optimism and is ahead of the curve with new technologies, infrastructure or regulations that encourage the pursuit of personal goals and prosperity, but with an emphasis on a high quality of life. Auckland is already off to a great start. Business migrants will look for a stable legal, regulatory, political and social environment, and a strong vision from central and local government that focuses on growth and good governance.
Raise our level of cultural maturity
I still see far too many examples of cultural ignorance, prejudice or outright xenophobia. It saddens me because if New Zealand is to succeed, we need a thriving diverse cultural blend - and that blend then needs to work together to take New Zealand to the world. It is just not acceptable for anyone - be they politicians, government, private sector workers, blue collar or white - to perpetuate any form of racism. New Zealand needs to be known as a country that truly welcomes anyone who is prepared to come here to work and contribute to our economy.
No infrastructure - no secret weapon anymore!
If Auckland is to continue growing it needs to become denser and invest in infrastructure. But there is a balance to be struck. Clear air, a clean harbour, much improved public transport options and fewer cars on the road and the opportunity to have a back yard a short drive from town, are some of the city's biggest attractions and must be preserved. Investing in our living environment - better sewerage and stormwater systems and parks - are just as important as other pro-business initiatives. Density and lifestyle doesn't need to be a zero sum game; what is being proposed in the Auckland Council's 10-year plan strikes a good balance between meeting the economic goals of the city, while ensuring it retains the character that makes it such a desirable place to live.
Emphasise education
Many migrants come from cultures that place a huge premium on education, and they will be looking to put down roots in places where there are excellent educational opportunities and a culture that values lifetime learning. Companies looking to invest or establish businesses will want to know the skills they require are available today, and that training institutions are preparing to teach the skills they will need in the future. Developing partnerships with local universities or polytechnics is an important part of any city's growth plan.
Coming here
New arrival migrants
• Migrant inflow (i.e. long-term or permanent arrivals) to NZ has been trending upwards since May 2013.
• Migrants on resident visas increased from 870 in May to 1040 in August.
• Migrants on work visas increased from 1940 in May to 2710 in August.
• UK, Australia and US were the countries with the largest number of migrants coming to NZ for long-term work. A large percentage of migrants on resident visas were
Local ethnic segment
• Just under 39,000 people were approved for residence in the 2012-13 year with China emerging as the top source country for residence approvals with 5800, closely followed by the United Kingdom and India.
• India was the top source country of Skilled Migrant Category principal applicants in 2012/13, mainly due to former Indian international students who transition to temporary work then to permanent residence.
International students
• The majority of overseas students that bank with ANZ are from China, India and the Philippines. At least 20 per cent of international students gain permanent residence within five years of their first student permit.
Sources: Statistics New Zealand/Department of Labour
