Coleman's Call 22nd January 2010
The Economic Case for Immigration
As MP for Northcote, I have the privilege of representing an electorate with a vibrant and varied ethnic mix. This is reflected in fantastic community events like the upcoming Northcote Chinese New Year celebrations, the North Shore Pasifika Festival, and the annual Korean Day. The last census showed that 38% of the Northcote electorate were born overseas, compared to the national average of 22%. In terms of ethnic groupings, while 62% of Northcote people describe themselves as European, and 9% Maori, 6% are Pasifika, and over 21% are Asian in origin.
As Minister of Immigration, I spend a lot of my time working on policies to enhance the economic benefits that New Zealand gains from immigration. Internationally, as well as in New Zealand, immigration is always an area that provokes debate. Many welcome the diversity that immigration has brought to our country on a whole variety of levels; others don’t feel so comfortable with change.
However an examination of the facts shows that migrants not only pull their weight economically, they are vital to our economic health. Sure, you’ll always hear anecdotes that people cite as evidence that immigration is not in New Zealand’s interest, but the statistics say otherwise. Migrants make up more than 25 percent of the workforce, bringing investment, skills, and international connections that grow the economy. Recent Immigration New Zealand research estimates that the average net inflow of 20,000 migrants per year adds an extra $1.9 billion to our GDP each year. The 23% of our population that is overseas born produces a net fiscal contribution of $3.3 billion per year. Without this contribution from immigrants, the economy would be much, much weaker. For the past 40 years New Zealand has been reliant on immigration to offset New Zealanders leaving. Immigration remains just as important in the current environment as New Zealand’s ageing population impacts on our labour supply: we will have fewer working age people relative to the numbers of retirees, and will need increased immigration to account for the shortfall in skilled Kiwi workers. Consider this: if we were to stop immigration today, but people continued to leave New Zealand at the rate of the recent average for the past few years, by 2021 real GDP would have dropped by 11%, and exports by 13% . Bottom line: every New Zealander would be a lot poorer. On the other hand, increased immigration inflows would result in a larger economy and an increase in GDP per capita. The current net inflow of around 20,000 overseas born per year results in a significantly larger and more externally focused economy than if there was no inflow of immigrants. We are in a worldwide competition to attract the best immigrants to grow our economy. Getting people who can make a real contribution is not as easy as some might think. We have to search the globe for people with the right skills and attributes to become productive Kiwis- that is my overwhelming focus as Minister of Immigration. Further to today's column, here is a link to Immigration New Zealand's research on immigration. http://www.immigration.govt.nz/migrant/general/generalinformation/research/impacts.htm








