By AUDREY YOUNG political reporter
Prime Minister Helen Clark is coming under criticism from two rival quarters over a speech which hinted that limits should be placed on the number of foreign Chinese students in tertiary institutions.
Auckland-based National list MP Pansy Wong says it was a "knee-jerk" reaction to the immigration debate.
New Zealand First leader Winston Peters said Helen Clark didn't know what message she was giving on immigration.
Mr Peters said New Zealand was not honouring its pledge to the Chinese Government - made when it lifted the Chinese student quota in 1999 - that students would have to return home after their studies.
The number of student permits approved by the Immigration Service for Chinese students has rocketed since the quota was abolished.
In 1997-98 a total of 193 permits were issued, which compared with 1851 in 1998-99, 5566 in 1999-2000, 14,655 in 2000-2001 and 32,424 last year.
In the past five years, 54,689 study permits have been issued to applicants from China. Chinese students now make up 44 per cent of New Zealand's foreign students with permits.
Helen Clark told the New Zealand Asia Institute in Auckland this week that the numbers of Chinese students had expanded so rapidly in recent years "that we are probably close to capacity in some cities".
"There will be an optimal rate for absorbing large number of overseas students in total and from any single market," she said.
New Zealand schools appeared to be aware of when they had reached "the optimal threshold" and they adjusted their entry procedures accordingly.
She suggested there could be rule changes ahead and said there was likely to be a greater move towards New Zealand institutions delivering courses to foreign students in their own countries.
Mr Peters, who has been criticised by Helen Clark over his anti-immigration speeches, said: "I don't think she knows what she is saying. She is becoming deeply embarrassed. Her deceit in this area is being exposed.
"I saw her daily going along with the asset sales of this country, billions and billions of dollars worth.
"Now she's gaily selling up the heritage of this country and running round saying I've got bizarre policies."
He believed that many of the student graduates gained permanent residency, meaning New Zealand was breaking the undertaking given to Beijing.
"When we entered an agreement with Mainland China, it was that we would take people and train them and then send them home.
"The Government is not honouring that and now they are claiming that this [Chinese immigration] is critical to our trading relationship."
Immigration Service figures for the past five years show that of the 188,449 principal applicants that were approved for student permits, 15,765 were subsequently approved for permanent residence.
Pansy Wong said she had no doubt Helen Clark was essentially saying New Zealand had too many Chinese students.
"At the moment I just feel that the Government reaction tends to be quite knee-jerk.
"I just don't get a good feel. I don't think they have done proper surveys in terms of the issue.
"I am concerned about the Labour Government signalling a change in student policy without giving us thorough studies to back up those statements."
Mrs Wong said it was "quite disturbing" that shifts in policy could be the result of "a certain party turning up the heat" on immigration.
According to Ministry of Education statistics, 50 per cent of Chinese foreign students are in tertiary institutions, 30 per cent are in English language schools and 20 per cent are in schools.
Auckland University has 3688 international students (12 per cent of its student roll) and 1766 of those come from China.
Just over 32 per cent of Auckland University's students are Asian - that includes foreign fee-paying students and permanent residents.
Helen Clark said last night that the Chinese Government had not raised concerns with her about students not returning home after obtaining their qualifications in New Zealand.
But she acknowledged her concerns with Chinese students dominating the foreign student population.
She believed it was important to have a diversity of students both for their own good and the good of the New Zealand students.
Some thought was being given to addressing the problem.
She rejected criticism that her comments on Chinese students were a knee-jerk response to Mr Peters' campaign.
It had been a considered speech written by a Foreign Affairs official to mark the 30th anniversary of diplomatic relations between China and New Zealand.
Further reading
Feature: Immigration
Rivals zero in on PM's immigration remarks
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