1 INTRODUCTION AND BACKGROUND TO THIS REPORT

1.1 Purpose of this report

This report is the ninth in a series produced annually to provide information about trends in temporary and permanent migration. The report is prepared for:

• policy-makers concerned with migration flows and their impact
• the wider public with an interest in immigration policy and outcomes.

The information in these reports constitutes a time series so that recent immigration patterns can be compared with patterns identified in previous years.

This report contains an update of trends for the financial year 2008/09.

1.2 Structure of this report

The report is structured as follows:

• Chapter 1 introduces New Zealand's immigration policies.
• Chapter 2 reports on the impact of the global economic slowdown on migration.
• Chapter 3 describes migration flows into and out of New Zealand.
• Chapter 4 describes the characteristics of people granted student and work permits.
• Chapter 5 summarises the trends in permanent residence approvals.
• Chapters 6-8 detail residence approvals through the four residence streams:
  • Skilled/Business Stream
  • Uncapped Family Sponsored Stream and Parent Sibling Adult Child Stream (combined in Chapter 7)
  • International/Humanitarian Stream.
• Chapter 9 concludes the report.
• The Appendices contain:
  • information on recent immigration policies and legislative changes (Appendix A)
  • information on the methodology underlying this report (Appendix B, which includes a glossary)
  • a description of temporary and permanent residence categories (Appendix C)
  • supplementary tables and analyses (Appendices D-T).
• The References list all the publications referred to in this report.

1.3 Role of immigration

Immigration provides significant benefit to New Zealand's economic development. The temporary and permanent entry of people from other countries helps to attract global talent to address skill shortages, and brings capital, expertise, and international connections to build New Zealand's workforce.

Internationally, the nature of migration is changing. Migrants are increasingly mobile, and New Zealand has seen substantial growth in the numbers of temporary entrants coming to visit, study, and work. New Zealand faces strong competition for skilled people in a global labour market. New Zealand citizens also play a crucial role in our migration patterns, with many New Zealanders working overseas and contributing to other economies.

In 2008/09, there was still a strong focus on meeting New Zealand's labour and skill shortages through temporary and permanent migration, primarily at the skilled end of the spectrum. For example, the number of occupations on the Immediate Skill Shortage List rose to an all-time high of 132 during 2008/09, although the list was subsequently reduced.

The economic slowdown has had a significant impact on migration flows in New Zealand and internationally. Many governments have implemented immigration policies in response to growing unemployment levels. This impact is discussed further in Chapter 2.

1.4 Immigration New Zealand Change Programme

The Immigration New Zealand Change Programme (INZCP) provides an integrated platform for building a world-class immigration system.

This change will be achieved by focusing on four significant work streams.

• Immigration strategy
• Tools
• People
• Business processes and organisational alignment

1.4.1 Immigration strategy: Strategic direction and key outcomes

The INZCP will develop a long-term strategy to set clear directions and outcomes for immigration and put in place indicators against which achievement and performance will be monitored. It will ensure that Immigration New Zealand can 'measure what matters' and demonstrate quality improvements as quickly as possible.

The strategy will position immigration to help address the economic challenges and opportunities arising from demographic change, shifts in the global economy, and changing needs in the New Zealand labour market.

Benchmarking and performance indicators will be used to track quality improvements. An evaluation of immigration decision making will be undertaken quarterly to benchmark progress.

1.4.2 Tools: Technology and enablers

The INZCP focuses on building fit-for-purpose systems to support and enhance Immigration New Zealand's decision making, together with modern legislation that provides the foundations for desired immigration outcomes and supports an effective and efficient immigration service.

The Department is further stabilising its application management system over the next 2 years. In the medium term, the Department will focus on improving its core immigration management system so that it is fit for the future. These systems improvements are complemented by modern immigration legislation that provides the legislative framework for New Zealand to get maximum benefit from immigration.

Immigration Act

A comprehensive review of the Immigration Act 1987 is nearing completion, as the Immigration Bill passed its third reading. The aim of the review is to ensure New Zealand's immigration legislation does two main things: help the people New Zealand needs to enter the country and still protect New Zealand's border effectively.

The Department anticipates it will take 12-18 months to implement the Bill. This is because the Bill does not simply amend the current immigration legislation-it totally rewrites it. One of the key changes will be the introduction of a universal visa system, replacing the current visa, permit, and exemptions framework. This will mean that the term 'visa' will be used to describe the authority to travel to and stay in New Zealand, and all foreign nationals will be required to hold a visa to stay in New Zealand. More information about the Bill can be found at www.dol.govt.nz/actreview.

1.4.3 People: Leadership, capability, and culture

To address the consequences of past under-investment in capability, the INZCP seeks to:

• enhance leadership that motivates staff to perform well and enables stakeholders to engage constructively on immigration issues
• provide ongoing professional development to staff and create an organisational environment that recognises the importance of ongoing capability building and supports quality decision making
• develop a comprehensive capability framework setting out goals and desired outcomes
• enhance a client-service focus and create an environment where staff feel comfortable escalating issues if necessary.

1.4.4 Business processes and organisational alignment

The INZCP aims to have transparent processes that provide a foundation for quality decision making by:

• identifying opportunities to improve the efficiency and effectiveness of core processes
• reintegrating Pacific Division activities into core Immigration New Zealand
• reviewing immigration fees
• implementing an end-to-end service delivery model for visa and permits that is client-focused and that ensures consistent practice and enhanced decision making.

1.5 Temporary entry policy

New Zealand's temporary entry policy has four objectives: To help genuine visitors, students, and temporary workers enter the country, and manage the associated risks; to address skill shortages; to attract foreign exchange earnings through the entry of tourists, business visitors, and foreign fee-paying students; and to contribute to building strong international links. Work to Residence policies provide a pathway to permanent residence in New Zealand for certain temporary migrants.

Table C1 in Appendix C describes the temporary entry policies current in 2008/09.

1.6 Permanent Residence Policy

People who wish to migrate permanently to New Zealand must apply through one of the four residence streams of the New Zealand Residence Programme (NZRP). The streams are: Skilled/Business; Uncapped Family Sponsored; Parent Sibling Adult Child; and International/Humanitarian. Each stream has several categories and a separate approval limit (Table 1.1).

Table 1. 1 Approval limits for New Zealand Residence Programme (NZRP) streams, 2008/09

NZRP stream	Minimum	Maximum	Percentage of NZRP (%)
Skilled/Business	26,800	29,950	60
Uncapped Family Sponsored	9,900	10,700	21
Parent Sibling Adult Child	4,950	5,500	11
International/Humanitarian	3,350	3,850	8
Total	45,000	50,000	100

Source: Department of Labour

1.6.1 Skilled/Business Stream

During 2008/09, the Skilled/Business Stream comprised three categories: The Skilled Migrant Category (SMC); Residence from Work Category; and Business Immigration Policy.

Chapter 6 discusses the separate policies within the Skilled/Business Stream.

The categories in this stream in 2008/09 are summarised in Table C2 in Appendix C. Key enhancements to the stream are discussed below.

Skilled Migrant Category (SMC)

The main category in the Skilled/Business Stream in 2008/09 was the SMC, a points-based policy that allowed people to gain permanent residence in New Zealand if they had the skills, qualifications, and experience to contribute to New Zealand economically and socially. For information about the points system, see Chapter 6.

During 2008/09, some minor enhancements to the SMC were implemented. These included building on the success of the Magnet Programme^[1] to recruit potential applicants, and recognising some highly skilled people without degree-level qualifications. The former List of Recognised Qualifications (aimed at enabling applicants to gain points for qualifications without undertaking a separate New Zealand Qualifications Authority assessment) was renamed the List of Qualifications Exempt from Assessment, and was updated and expanded.

Business Immigration Policy

The Business Immigration Policy included the Investor, Entrepreneur, and Employees of Relocating Businesses policies.

Investor migrants needed to actively contribute to New Zealand businesses, either directly or indirectly. In 2008/09, the Investor Policy was segmented into three subcategories, based on the migrant's potential contribution and the assessed level of risk.

The Entrepreneur Category was for business migrants who could demonstrate they had successfully set up and operated a business in New Zealand.

From late July 2009, a new Migrant Investor Policy came into effect, which aimed to attract financial capital to local firms or government by providing residence to people who wished to make a significant financial contribution to New Zealand's economy.

1.6.2 Family-sponsored streams

Before July 2007, all applications for family sponsorship were processed under the family sponsored streams. Since July 2007, partners and dependent children have been approved through the Uncapped Family Sponsored Stream. Other family members (that is, parents, siblings, and adult children) continue to be approved through the Parent Sibling Adult Child Stream. These streams allow New Zealand citizens and residents to sponsor family members to live in New Zealand under certain circumstances.

The policies in these streams in 2008/09 are summarised in Table C3 in Appendix C.

Sponsoring family members under the Partnership Policy

Under the Partnership Policy (a policy of the Uncapped Family Sponsored Stream), a couple need to provide evidence that their relationship is genuine and stable. Applicants must have been living in a genuine and stable partnership for 12 months or more at the time they lodge their application.

Sponsors of less-dependent relatives (parents, siblings, and adult children) need to have held New Zealand residence for at least 3 years. Sponsors also have to sign a declaration that they will provide the sponsored migrant with accommodation and financial support for the first 2 years of the sponsored migrant's residence in New Zealand. Applications from partners and dependent children of expatriates continue to be prioritised over other applications in these two streams.^[2] Applicants under these streams are also encouraged to submit an expression of interest for the SMC when an applicant appears to meet SMC policy.

1.6.3 International/Humanitarian Stream

The International/Humanitarian Stream enables New Zealand to fulfil its international obligations and commitments regarding refugees. This stream also means New Zealand can maintain its special relationship with some Pacific nations, as expressed by the Samoan Quota and Pacific Access Category (PAC).

The quotas and categories in this stream in 2008/09 are summarised in Table C4 in Appendix C.

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