Migrants cost $1.47m in emergency benefits

By AUDREY YOUNG, political editor

Immigrants on emergency benefits are costing the taxpayer $1.47 million a week, but the Government says tighter immigration entry rules will mean significant reductions in the figures before long.

A total of 5458 immigrants who arrived in New Zealand in the past five years were on the emergency benefit as at May 28, according to Associate Social Development and Employment Minister Rick Barker.

Their benefits bill was $1,471,350 a week, he told New Zealand First leader Winston Peters yesterday in answer to a written parliamentary question seeking a "snapshot".

"I would expect a significant shift in these numbers over the next year or two," Mr Barker said.

But the figure does not include immigrants who may have qualified for the unemployment benefit and sickness benefit after being here for two years - they are ineligible for both benefits in the first two years of arrival.

The emergency benefit is income and asset tested and is paid to people who do not qualify for another benefit. It is generally paid at the rate of the unemployment benefit ($164 single rate and $273 for a couple).

Mr Barker said one elderly person had been left on the emergency benefit for 10 years - and had been entitled to more under superannuation.

But the minister is confident that the trend for paying emergency benefits to immigrants is downward.

In November 2002, the total being paid per week was $1.75 million to 6927 people.

"I expect it to go down further," he said.

Changes in the immigration policy, announced last year, would take time to work their way through.

But the changes would prevent the sort of situation in which qualified doctors came to New Zealand under the old points system and could not get a job.

"Today you register an interest and people apply and are granted residency when they have an actual job. So we are matching the immigrants to jobs, not giving people access into New Zealand then hoping they will find a job."

He had also asked Work and Income to examine "more closely the circumstances of people in this situation", citing the case of the 70-year-old.

"We have to be more hands-on about this. If the benefit is appropriate, we shift them."

Mr Barker also hoped there would be greater success in matching existing skilled immigrants to jobs.

He cited a scheme in Auckland involving the Auckland Chamber of Commerce which "has credibility in areas that Work and Income does not" and he hoped it would expand to other areas.

"Employers are looking for people with a considerable amount of skill - IT, a whole range of things and employers won't necessarily go to Work and Income to find people of this nature."

Mr Peters could not be contacted last night, but a spokesman said the figures were alarming, especially as they did not include unemployment and sickness benefits.

The party would pursue the issue to see just how much the taxpayer was paying.

Migrants and benefits

* 5458 immigrants who arrived in the past five years were on the emergency benefit at May 28.

* Their benefits bill was $1,471,350 a week.

* The emergency benefit is income and asset tested.

* It is paid to people who do not qualify for other benefits.