Slump in millionaire migrants prompts talk of rules rethink

The flow of millionaire investors winning approval to live in New Zealand has dried up after the Government made eligibility changes that it now concedes probably went too far.

Just three people have been approved for entry into the country under new investor category rules announced a year ago - a significant slump from 284 approved under looser rules the year before.

To qualify for residence under the investor category a person must now show that he or she has $2 million to invest for five years, instead of $1 million for two years.

The investors are said to be typically North Asian and it is hoped that they will put their money to work boosting the economy and creating jobs.

But the flow of approvals has fallen so sharply in the past year that Immigration Minister David Cunliffe is now flagging fresh changes to the entry requirements.

"I would be quite frank in saying that I think the flow has dropped more significantly than some people expected," Mr Cunliffe said yesterday. "I have asked officials to review it, and I have said I would not rule out a policy change in the reasonably near future."

The rules were initially changed to counter what the Government claimed was rorting of the system.

Anecdotal evidence suggested "investors" were borrowing money to place in any old venture that might have no benefit to New Zealand and paying it back as soon as they were granted residence.

Mr Cunliffe said in some cases people were buying expensive properties in Auckland, moving in their dependants then moving back abroad - leaving the country with liabilities rather than assets.

Immigration consultant and former National minister of immigration Aussie Malcolm yesterday described the policy changes as a "total failure".

He said he had dealt with interested millionaires and billionaires who had walked away from the new investor process because they objected to the authorities' "crazy" efforts to control their investments.