Pragmatism not idealism

Dr Rachel Hodder
Insights Newsletter
14 October, 2016

A motto I live by is to hope for the best but expect the worst. As such, I was disappointed but not surprised to hear immigration minister Michael Woodhouse announce this week that the government is getting tougher on immigration policy.

If there is one thing to call this, it is pragmatic. Deserved or not, immigration has been the subject of a lot of belly-aching recently. Being seen to address popular concerns without resorting to drastic change is smart politics.

But are they smart changes?

As far as tinkering to placate voters goes, it could have been worse. There is little evidence that immigration is actually causing problems. Yet, immigration is often first to get blamed and voters are demanding action.

Fiddling with the approval target might nip these concerns in the bud before the discussion gets any uglier. As discussions on immigration often do. 

Admittedly, there was nothing magic about the targets as they were. For most of the time the target was at this level, Kiwis were leaving in droves. We needed to bring people in to replace those we were losing.

But now, the beggar has turned chooser. While the rest of the world is getting uglier, New Zealand is looking much more attractive. Kiwis are not leaving as they used to, ex-pats are returning, and migrants are staying here longer. Now that we are popular, many people are calling for more selectivity over who gets to join the party.

Raising the points threshold on the skilled migrant category is an easy target. There has been a lot of criticism over the types of skilled workers being admitted under this category.

Suspending the parent visa and tightening up the family category is also politically savvy. The migrants admitted under these categories generally contribute the least to the economy but do present a fiscal burden.

Some businesses will now have more difficulty finding the workers they need. But it is unlikely that there will be major economic effects either negative or positive.

The biggest loss will be to the 5000 or so migrants who will no longer have the good fortune to make New Zealand their home. My optimistic side was hopeful the government would keep these people in mind, my pessimist side is relieved that the changes were not more drastic.

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