Immigration-economy link comes under spotlight

Press, 8 June 1989, Page 38

Immigration-economy link comes under spotlight

PA Hamilton Increasing the number of immigrants to New Zealand would not necessarily improve the economy, a Waikato University economics lecturer, Brendan Thompson, says. Speaking at the Demographic Society conference at the university, he said immigration should not be used as a means of improving the economy. Previously high immigration periods had had drastic results on the economy. After the Vogel period between 1873-1876 when

63,000 migrants were assisted to New Zealand, unemployment reached 12 per cent in 1886 and probably as high as 19 per cent in the. late 1880 s. Another high immigration period after World War II also had a similar outcome, although not quite as drastic. Mr Thompson said while extra people might create extra jobs to provide services, unless they also generated exports, the economy would not be helped. Every 10,000 immigrants had to create about

2500 more jobs in the export industry if they were to help the economy. New Zealand had risen from one of the three richest countries as far as income per capita was concerned to thirty second and that was partly because of faulty immigration policies, he said. New Zealand needed to concentrate on training its own people to skilled positions rather than rely on overseas labour. However, a Victoria University lecturer,

Jacques Poot, disagreed. He said there was significant evidence — including a study done at the university — which showed immigration could help growth in the long term. Mr Thompson’s theory was based on “snapshot” looks at the past when the surrounding circumstances were different from today. “We do have a low standard of living at the moment, but one of the ways of improving that standard is immigration," he said.