Migrant cash plan rejected

By STUART DYE


Plans to force migrants to pay for Auckland's congested roads have been dismissed as unworkable by immigration bodies.

The Government is considering making business migrants invest in low-interest, set-term infrastructure bonds as a condition of entry to New Zealand.

Money would be creamed off to help make up a $2.4 billion shortfall for roading and public transport projects in the city.

Iain Macleod, vice-chairman of the New Zealand Immigration Institute, a policy think-tank used as a sounding board for the Government, said it was a good idea in principle, but it would discourage investors and fail to raise anything like the amount required.

"You would be very lucky to get more than 100 business migrants a year with these rules - and that would barely pay for a few sets of traffic lights."

Under the proposal, the cash would be pooled in a special infrastructure fund.

The change would probably be part of a review of the "investor" category for migrants, under which each one invests $1 million as a condition of entry at present.

It is understood wealthy American and British investors are the target market for ministers conducting the review.

Mr Macleod said: "We have been running the idea past US and UK clients and virtually all have said that if they don't see a return on their investment, they are not coming."

The option is one of several being considered by a group of senior Government officials and Auckland local body representatives. Others include a regional petrol tax, congestion charges on drivers who use busy roads at peak times, and borrowing millions for a handout to Auckland transport chiefs.

Advocates of the migrant charge, Rodney Mayor John Law and Auckland Chamber of Commerce chief executive Michael Barnett, say it has been successful in Canada.

But Mr Macleod described the reference as comparing apples with oranges.

"Business investors come here for the lifestyle - they go to Canada for different reasons," he said. "Whilst it is a good idea in principle, the Government is missing the point in its policy."

The proposal was also a u-turn on the Government's longstanding thinking that buying your way into New Zealand was undesirable.

Sanjay Rughani, of NZ Immigration Consultants, specialists in Indian business migration, claimed the idea was unfair.

"It is very sad that people who arrive here for a new life are forced to pay for 50 years of neglect on the roads which they had no part of," he said.

Ministers last night stressed that no decisions had been made and several options were being considered.

Transport Minister Paul Swain said he would not comment on "specific proposals being floated around in the media".