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Young New Zealanders going on their OE to Britain will be able to work there for two years from next month.
The British and New Zealand Governments yesterday announced the change to the current system which only allowed Kiwis aged between 18 and 30 to work for one year of their two-year working holiday visa.
The new visa, under the Youth Mobility Scheme, is also expected to cost less - about $270 compared with the current $554. It comes into effect on November 27.
Applicants will need £1600 (NZ$4560) available to them. British High Commission spokeswoman Nicky Baughen said previously there had been no set dollar requirement.
Prime Minister Helen Clark said the new arrangement was formally recognised this week in an exchange of letters by the British and New Zealand Governments.
"This is great news for New Zealanders aged 18 to 30 wishing to experience life in the UK," she said.
"British ministers and officials have recognised the low risk and high value New Zealanders bring to the UK during their travels."
Helen Clark said the British Government had conducted a wide review of its immigration system.
"The New Zealand Government worked hard to maintain and improve the good level of access New Zealanders have traditionally enjoyed to Britain," she said.
"The Youth Mobility Scheme is based on reciprocal visa provisions and the number of countries able to participate in the new scheme is significantly fewer than under current settings."
Helen Clark said about 5000 New Zealanders went to Britain each year on working holiday visas.
"The opportunity to build their skills is highly valued and of wider benefit to New Zealand when our young people return home, bringing their skills and experience with them."
George Fergusson, the British High Commissioner to Wellington, said that the new scheme was a "great opportunity" for young New Zealanders.
"Working holidays by young British people here and young New Zealanders in Britain have been a really important part of the relationship between the two countries. I benefited from this myself.
"This announcement ... shows how much we value the contribution New Zealanders make to UK. This is a great deal for NZ and UK."
The High Commission in Wellington issues about 11,000 visas each year. About 3000 of them are under the old Working Holiday Maker Scheme.
As part of the British Government's immigration rules shake-up, it considered abolishing the ancestry visa which allows Kiwis whose grandparents were born in Britain to live there for four years and eventually apply for residency.
About 4000 New Zealanders apply for the visas through the commission each year.
It had also considered stripping New Zealanders of the right to travel to Britain without a visa for up to six months, cutting it to three months.
Both proposals were dropped after they were opposed by Helen Clark and some British MPs.
- NZPA