Editorial: A Poor Policy

The policy, unveiled by ACT leader David Seymour this month, has one disturbing feature - a $6/day infrastructure surcharge on temporary work visas on top of existing charges.

According to ACT, this ensures migrants contribute to NZ's infrastructure "from day one before they start paying taxes".

ACT hopes this will raise an additional $80 million.

While this money will be welcomed in urban centres like Auckland and Queenstown, where hospitals, roading and schools are facing the pinch of a growing population, it's hard to understand how this will help the rural sector.

Of course, immigrants do pay for infrastructure just like everyone else. If they fill up their care, they pay fuel excise. If they live in a house, they pay rates or water charges. Rural migrants are not adding to pressure on housing because the houses are available on farms or in rural towns.

Rural schools are closing as student numbers dwindle and additions to rolls would help.

NZ dairy farmers face stiff competition from Australia and Canada, where the dairy sector is also facing labour woes.

Dairy farmers want prime candidates to come here, but a $6 daily charge and an annual allocation/re-application process is a significant deterrent as workers weigh up whether to come here or somewhere else.

Dairy farm employers want certainty and permanent staff, with a firm residency pathway for workers with the skill and attitude to add value to the sector and New Zealand.

ACT's policy doesn't seem to be well thought out.

For a migrant on a three-year work visa, this will mean an extra $6,500 up front. And it's likely that farmers, as employers, will need to cough up the extra money to hire or retain the migrant worker.