Seasonal migration 'a triple win'

Published: 12:33PM Friday December 03, 2010 Source: ONE News

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Experts say New Zealand's new seasonal migration scheme is producing a triple win for industries, workers and the economy.

The Recognised Seasonal Employer scheme (RSE) is also boosting household income in the home countries of the migrants by almost 40%, according to new research out of the University of Waikato.

New Zealand's RSE scheme draws up to 8000 workers a year, mostly from Pacific nations.

Amongst the Pacific Island workers, nearly three-quarters are from Tonga and Vanuatu.

Head of Immigration New Zealand Nigel Bickle said the RSE policy is about creating a sustainable labour supply if no New Zealanders are available to do the job. At the same time, he said the RSE scheme provides Pacific people with an opportunity to contribute to their economy and island development, gain knowledge and transfer it to work experience through on-the-job training - an opportunity which may not be available in their home country.

"The impact results reflect a combined commitment of New Zealand and the Pacific to ensure a continuous success of the scheme by managing the local businesses' sustainability and to gain maximum advantage for both New Zealand and Pacific Island economies. The RSE is a great model of a triple win initiative," Bickle said.

Professor John Gibson of Waikato Management School and Dr David McKenzie of the World Bank are looking at the impact of such a scheme on the "sending" countries.

"Our research provides further evidence that migration is one of the most effective ways to boost development in poor countries" said Gibson.

"Coupled with analysis which shows improvements in productivity for growers that hire RSE workers and very low rates of overstaying and modest impacts on

the native labour force, these results suggest more countries should give seasonal worker programmes a chance."

After participating in the scheme, per capita incomes of households sending workers were approximately 40% higher than for matched households who did not have workers recruited.

"These gains in household wellbeing greatly exceed those of other popular development interventions like microfinance and conditional cash transfers," said McKenzie.

On top of higher incomes, the researchers found other benefits to households from participating in the RSE scheme.

"They are more likely to make dwelling improvements, to open bank accounts, and to make major purchases of durable goods. In Tonga we found substantial increases in secondary school attendance for 15- to 18-year-olds in households participating in the scheme," said Gibson.

More than half a million seasonal workers take part in temporary worker migration programmes across the OECD countries. Under New Zealand's RSE scheme, which began in 2007, migrants work for an accredited employer in the horticulture and viticulture industries for up to seven months in every 11 months, and may return if recruited again.

Employers first have to show that no New Zealanders are available for the work, must contribute one-half the cost of airfares for their migrant workers, must pay market wages and provide a minimum quantity of work, and are responsible for costs of repatriating any migrant workers who overstay their visa.

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