Tough new entry rules biting back

By ADAM GIFFORD and GREG ANSLEY

The Government could have shot itself in the foot by its tough new immigration criteria blocking would-be investors.

Under changes announced and effected on Tuesday by Immigration Minister Lianne Dalziel, entrepreneurs or investors wishing to move here must now score a 5 (modest English user) in a language test, rather than the 4 (limited English user) previously accepted.

They will no longer be able to pre-buy English-language lessons, which allowed them to skirt the tests.

General settlers must score the much higher 6.5 in the language test.

Aeryun Leo, chief executive of Seoul-based Overseas Investment and Migration, said Koreans trying to migrate to New Zealand were "shocked and frustrated" by the sudden policy change.

Bart Janowski, the head of Max-Impakt Group, which prepares business plans and feasibility studies for intending business migrants, said he laid off half his 15 staff because of the changes.

"We had 56 clients we were working for at the beginning of the week, but 55 said they did not qualify," Mr Janowski said.

Max Impakt client David Downes said the change could scupper his attempt to get Korean LCD manufacturer Collins to use New Zealand as a base to develop specialised monitors for the marine industry.

"Part of the plan was that [the owner] would have the option of eventually moving here with his family, but this new policy seems to end that since he doesn't speak English."

David Cooper, the general manager of immigration consultancy Malcolm Pacific, said the policy would wipe out 80 per cent of investor category migrants.

"Last year the Government estimated those migrants were worth $1.5 billion. Well, we have lost $1.2 billion of that, and you are only talking 700 or 800 families," he said.

"Add to that housing, other investments they make and consumption, and the economic impact is probably closer to $2.4 billion."

A former New Zealand First MP and Minister of Immigration, Tuariki Delamere, said the Government had effectively stopped business immigration from China overnight, potentially losing $1 billion a year of incoming investment.

But the rules have won applause from Australia, despite fierce rivalry for talent from abroad. Its Immigration Minister, Philip Ruddock, said the tighter requirements for skilled migration would produce economic gains.

Herald feature: Immigration