Immigration earns New Zealand over £1.2 billion

New migrants boosted New Zealand’s coffers to the tune of $3.3 billion (£1.2 billion) in the year to 30 June 2006, the New Zealand Government has announced. The figures are from a report, The Fiscal impacts of Immigration. Migrants contributed $8.1 billion (£3 billion) in income tax, GST and excise duties, far outweighing the $4.8 billion (£1.8 billion) New Zealand spent on education, health and welfare for the new migrants.

“Immigration ensures that our employers can access the much-needed skills they need for economic growth, and migrants also bring in links to export markets, investment, ideas and diversity” said Immigration Minister Mr Cunliffe.

The research report showed that the positive impact from migrants has grown about 80% from previous research done in 2003 which showed a net fiscal impact of $1.7 billion (£600,000).

The report used the latest census data which showed New Zealand had a migrant population of almost one million. Economically, Auckland got the biggest boost because 45 per cent of migrants lived there.

“The net fiscal impact per head for recent migrants rose nearly 35% from 2002 to 2006, which is evidence that our migrants are making a strong contribution to our economy, and that our immigration policies are attracting exactly the migrants we want,” said Mr Cunliffe.

“We are building up a picture of just how much immigration contributes to the wellbeing of all New Zealanders,” said the Minister. “We know that in general employers are impressed with the performance of their migrant staff, and we know that most migrants are happy to be here, and say they would recommend New Zealand to friends and family overseas.”

The research is part of a three-year series of work by the Department of Labour into the economic impacts of immigration.