Entrepreneur visa attracts 300 applicants from around the world in first year,
By Paul McBeth
June 8 (BusinessDesk) – The government's global impact visa designed to attract young entrepreneurs has received 300 applicants from more than 50 countries hoping to fill the 100 spots in the first year of the four-year pilot programme, says Immigration Minister Michael Woodhouse.
Launched last year by Immigration New Zealand in partnership with the Edmund Hillary Fellowship, Woodhouse told Parliament's transport and industrial relations select committee that the visa has “exceeded my lofty expectations for it”. The visa gives migrant entrepreneurs a pathway to residency by giving them a work visa with open conditions allowing them to apply for permanent residency after three years.
Nigel Bickle, deputy chief executive of Immigration New Zealand, told the committee investor visas had been successful, but typically missed entrepreneurs who were younger and may not necessary have $10 million in capital to park “into a range of investments”, and that the pilot project was off to a good start with applicants showing an interest in industries including augmented reality, virtual reality, biotech and agritech.
Woodhouse played down fears that immigrants were mopping up jobs at the expense of New Zealanders, telling the committee that a large number of long-term migrants were on working holidays or were international students and that the strong inflow of net migration was being compounded by Kiwis returning from Australia and more locals choosing not to leave.
Still, there were sectors that needed migrant labour to plug gaps that would typically be filled by the essential skills visa, and Woodhouse said employers were saying it's much harder to access international labour markets through that mechanism that it used to be.
"These are highly correlated to where the demand is and where the work is and because of that, arbitrary cuts to labour market tested work visas would be devastating to some industries," Woodhouse said.
Rising immigration has been blamed for putting upward pressure on housing prices, which are seen as becoming increasingly out of reach for young first-home buyers, while also combining with a tourism boom to drive consumer spending and boost economic activity.
Despite some industries facing skills shortages and struggling to attract staff, the net inflow of migrants has largely been absorbed by employers creating new jobs, which has meant wages have been relatively flat in recent years.
The Treasury's chief economic adviser Tim Ng told Parliament's finance and expenditure committee yesterday that he doesn't expect wage pressures will emerge until the unemployment rate falls below 4.4 percent. New Zealand's unemployment rate is currently at 4.9 percent.