Playboy’s Paradise – a New Brand for New Zealand?

NZ was enjoying the fruits of Dotcom’s labour

The Auckland arrest of billionaire Kim Dotcom, an investor and online piracy facilitator file-sharing host, in his mansion made worldwide news headlines – and cost Kiwi taxpayers at least $70,000. Along with American agents, the New Zealand police had been conducting an investigation into Dotcom’s website Megaupload since August of last year. He and six others were part of a group called the “Mega Conspiracy”, charged with reproducing and illegally distributing “free” copies of proprietary works such as software, films, TV programmes, music and books.

Dotcom was granted New Zealand residency in November 2010, under a scheme whereby he had to invest $10 million in government bonds and pass a test of good character. Despite strict regulations about the sorts of foreigners permitted to take up residency in the Pacific nation – thin people, people with low blood pressure, and the non-handicapped – Mr Dotcom, thought to be an obese diabetic with a slipped disc and hypertension, was welcomed with open arms. The health requirements link under the NZIS investor category information page is a 404. His past criminal convictions, sufficient to refuse him ownership of Kiwi land, were nonetheless glossed over when granting him residency.  In 1998 he had been sentenced to two years for handling stolen goods and credit card fraud. In 2001, he was charged with illegal speculations on the stock market and fraudulent misuse of funds. The following year, he was arrested in Thailand and sentenced in Germany for fraudulent misuse of funds. Presumably, there is a statute of limitations for the purposes of evaluation of fitness for residency?  Yes, dating from 1950, and it was repealed in January 2011.

Kim’s lifestyle, in a country where according to Darrin Hodgetts, poverty is the biggest growth industry, was conspicuous and even frightening, but no one could accuse him of not spreading the money around: large dollops were tossed merrily to politicians and the New Zealand Government. But it wasn’t actually the New Zealand Lifestyle he was after.  Internet security expert Jeffrey Carr has suggested that “New Zealand is under the radar, away from Interpol and a better lifestyle than Eastern Europe.”

Now a father of five, Dotcom was charged this time with five counts of copyright infringement and money laundering, along with other employees of his company and its subsidiaries: Megaporn, Megavideo, Megaclick, and Megarotic. When the police showed up for the bust, at his birthday party no less, he barricaded himself inside his mansion’s safe room with a sawed-off shotgun, which he had purchased for his family’s safety.

His English was undoubtedly good enough to pass; however, investor-category candidates only need an IELTS score of 4 out of 9 to gain residency.  It is clear that some immigrants are more equal than others, in a nation that trumpets its lack of corruption as a point of attraction.  Russian mining billionaire Abramov, incidentally also a citizen of Cyprus, and roughly a dozen others have become new residents under this category. Kim Dotcom is now out on bail, his order of arrest nullified and voided.

It turns out that John Banks, Auckland Mayor, is alleged to have given the German scofflaw unlicensed immigration advice.  But that was not the least of it. Current allegations under investigation suggest that Banks’ mayoral campaign received “donations” in two hefty $25,000 chunks from Dotcom that, along with gambling den Sky City’s, were listed as anonymous.  Although Banks has distanced himself from the issue, claiming faulty memory, it is clear there was schmoozing going on. Banks had attended parties at the Dotcom mansion, proposing toasts, and enjoyed personal helicopter taxi services.  ACT party leader Banks is small business and regulatory reform minister and an associate minister for the commerce and education portfolios.

What is unclear is where Kim received the inspiration for Welcome To The Good Life, on his first album Bailhouse Rock. The lyrics – “Sleep all day, party all night / have whatever you want, whenever you like” –suggest an esprit that Joe Blogs could never afford to embrace, even if he did like.

Only The Wealthy Need Apply To Live In New Zealand – updated

(scroll to bottom to read comment from  Moonlight) The Labour party has obtained a cabinet paper that reveals National is planning a raft of changes around immigration that somehow seem to have been ‘left out’ of last month’s briefing to the incoming Minister.

Labour’s Immigration spokesperson Darien Fenton has issued a press about it here and the confidential briefing paper that found its way into Labour’s hands may be viewed here - ISSUES AND DECISIONS FOR THE FIRST 100 DAYS – IMMIGRATION.

Negative Net Migration

The confidential paper reveals that the global economic slowdown presents some serious challenges for New Zealand in that skilled migrants are less willing to migrate and job offers are falling.

“In the year to October 2011, annual net migration into New Zealand fell to negative 100 people. This is the first annual net loss since the September 2001 year (1,700). It is largely driven by increased departures, particularly to Australia. The number of skilled migrants arriving has also fallen. Because of the global economic situation, potential skilled migrants are less willing to migrate, while fewer skilled job offers have been available in New Zealand.”

Funding shortfall

Consequently, reduced application volumes have caused a funding shortfall.

“A memorandum account was established in 1999 to manage fee revenue. While the account tracked about even until mid 2010, by the end of October 2011, the account recorded a deficit of $28.11 million. The memorandum account is forecast to be $44 million in deficit at 30 June 2012. This is largely a result of a drop in visa application volumes following the global financial crisis and the Canterbury earthquakes. INZ’s high fixed-cost business model means it is unable to reduce operating costs in the short-term in line with decreased application volumes and revenue….”

Wealthy Migrants

But we’ll leave that aside for now for a future blog, let’s get back to the news coverage of the press release which is based around New Zealand seeking to attract wealthier immigrants and the abolition of the Sibling and Adult Child Category.

Danya Levy, writing for Stuff, revealed that there are plans for New Zealand to introduce a ‘two tier’ immigration system, giving preference to the wealthy.

“A Cabinet paper shows the Government is planning to tighten up on family members seeking New Zealand residency while giving preference to better-off immigrants.

The draft paper leaked to the Labour Party shows Immigration New Zealand is planning to create a two-tier system where applications from parents sponsored by their higher income children, or those who bring a guaranteed income or funds, would be processed faster than other applications.

The system would also be tightened for those in the second tier for wealthier immigrants so that only those with no adult children living in their home country would be eligible.

Sponsors would be required to support immigrating parents for a period of 10 years, up from five, and parents would no longer be able to bring dependent children.

Parents with poor English would also need to “pre-purchase tuition.

The sibling and adult child immigration category would be removed to reduce the number of unskilled migrants who find it more difficult to get jobs and are more likely to get benefit payments.”

The reasoning behind this is for new migrants to be “self-sufficient and be able to contribute to New Zealand, rather than going straight onto a benefit.” But are new migrants eligible for benefits and aren’t there already controls in place to ensure that families are able to support their relatives?

This looks like just another cynical move to increase the dollar value of migrants in New Zealand, without any thought given to the skills they bring with them, how those skills can be used to grow the economy and benefit society as a whole.

Some may call it a cash grab that will leave lower income families spread out across the globe with little hope of being reunited.

This is a move that’s sure to drive a wedge into the gulf between rich and poor in New Zealand.

Only the rich welcome

Darien Fenton, Labour’s immigration spokeswoman said New Zealand was becoming a country where only the rich were welcome. A report by TVNZ told readers

“Parents whose families have higher incomes will go straight to the front of the queue in a ‘Tier One’ category and face less stringent eligibility tests, while those less well off will be ranked ‘Tier Two’ and will face tougher conditions and longer waiting times,” Fenton said.

Fenton said the paper also states that the Sibling and Adult Child Category is to be removed altogether from July this year.

She said it will come as a shock to the thousands of people in New Zealand looking to reunite their families.

“Sadly it appears New Zealand is becoming a country where only those with pot loads of money are welcome. We roll out the red carpet for them, yet we make it near impossible for good, less well-off families,”

Red carpets for the wealthy

A NZ Yahoo report suggested that the new measures have been kept a secret from the public, quoting Darien saying:

“These changes were signed off by Cabinet in May 2011, yet there was no mention of them in the publicly released Briefing to the Incoming Minister.

“They will come as a shock to the thousands of people in New Zealand looking to reunite their families, especially given the special treatment handed out to millionaires such as Kim Dotcom.

“There will also be an impact on Pacific families, something that was alluded to by MFaT officials who raised concerns in the in the Cabinet Paper that the changes must be handled carefully considering 2012 is the 50th anniversary of New Zealand’s treaty of Friendship with Samoa.

Mind the Gap (download pdf here)

New Zealand’s green party have a policy document called Mind the Gap that gives eight simple solutions to resolving inequality in New Zealand, you’ll notice that importing rich migrants isn’t one of them:

Fair tax

• Solution 1: A tax-free $10,000
• Soultion 2: A comprehensive capital gains tax (except on family homes)

“Making changes to the tax system is one of the most important and direct policy options available to the Government if the goal is to promote equality.”

Addressing energy poverty

• Solution 3: Progressive electricity prices

“Warm, healthy homes are hard to come by in New Zealand. The phenomenon of “energy poverty” – when households have to spend more than 10 percent of their income to keep warm – is a growing problem.”

Income support

• Solution 4: In-Work Tax Credits for all low income families with dependent kids
• Solution 5: Reinstate a discretionary Special Benefit

“Benefit levels have not risen in real terms since 1991. For many of our most vulnerable families, making ends meet on inadequate levels of welfare support is a daily struggle.”

Secure housing

• Solution 6: 6,000 new state houses in the next three years
• Solution 7: Investment in community housing
• Solution 8: Secure long-term rental tenure

“Safe, secure, sustainable housing is fundamental to the health and wellbeing of individuals, families and communities. Everyone living in New Zealand should have access to housing that is suitable for their needs.

Housing is a basic necessity but a lot of vulnerable New Zealanders are either homeless or do not have access to adequate housing. This has flow-on effects on their ability to participate fully in their communities, curtails people’s educational opportunities, and ultimately can negatively impact on the job market.”

Would You Vote For A New ‘Migrant Party’?

Patsy Wong’s resignation has resulted in a March by-election having to be held in the Botany constituency, where migrants make up more than half of the voters.

Rather than use a mainstream party to make the Chinese migrant voice heard in parliament action was taken to form a New Citizen Party.

The New Citizen Party aims to represent Chinese New Zealanders and has a focus on economic and law and order issues. The party has been organised by Auckland businessman Paul Young, former New Zealand Labour Party list candidate Stephen Ching, and Chinese businessman Jack Chen. The party is registered by the Electoral Commission, making it eligible to contest the party vote.

The membership of the new party is not just Chinese New Zealanders but also people in the Korean, Maori and Pakeha communities.

Last August Paul Young told the Herald that he believed that as New Zealand became more engaged with the rest of the world, “we do need to listen to different voices”. He also said ithat the new party will have “a focus on community safety, legal and education issues which required long-term policies, “and we do not see that happening“.

Given the large number of migrants living in Botany this is an excellent idea. As long as migrants from other countries are properly catered for it has a good chance of success. Its time for immigrants to have their own voice in parliament, they could effect some real changes in the way that New Zealand Inc.  is run.

Could this be the beginning of the end for the ‘Kiwi Way’ ?

Will trade/professional bodies be made to get together with the immigration service and adopt identical requirements? It would be good if migrants didn’t get all the way to NZ (an expensive process) only to find out they can’t get a job because their qualifications aren’t recognised. There are far too many lawyers and engineers driving taxis.

There could be more effective anti-discrimination laws, why put Kiwis first when there’s supposed to be a skills shortage in the country and the population is in decline? There should be a level playing field for all.  Is it such a radical concept to fill a job on merit, rather than accident of birth or ‘who you know’?

The New Zealand Herald’s headline says the new party faces an uphill struggle – looks like the status quo may be feeling  a nipping at their heels. But here’s the news for them – migrants are used to an uphill struggle in NZ.

If the new party gathers power, as  it will unless sabotaged, there are other communities in New Zealand that have high proportions of migrants that may want to follow the lead and put forward their own MPs.

It wouldn’t take much – perhaps 5 or so MPs to make a difference to the balance of power in New Zealand, and in an election year that’s going to cause some buzzing in the Beehive.

Would you give a New Citizens Party your vote?  if only to encourage the faint winds of change that are trying to blow away the cobwebs in New Zealand?

It will be interesting to see how seriously this ‘threat’ to the established order is taken. If a dirty tricks campaign is waged against the new party it could be seen as desperate move to prevent change in New Zealand.

Expect to see a lot of dirt digging in the coming weeks.

For the background to this story read this report in the Herald - New Migrant Party has an uphill struggle

Pike River Migrants Face Deportation From New Zealand, Happy Christmas?

Despite all the talk about keeping valuable, skilled miners in New Zealand following the explosion and subsequent closure of the Pike River Colliery, a number of immigrants working at the pit have been told they have to leave New Zealand in a few weeks if they don’t find alternative employment. They are already living in New Zealand illegally and say that if they stay on they will be deported.

Shockingly of the 20 migrants, all from ‘western’ countries, including 12 from South Africa, only 2 have managed to attain permanent residency. This case highlights the perilous state that many migrants on work permits find themselves in when they emigrate to New Zealand and how little protection they have when they lose their jobs. It also highlights how dependent New Zealand is on skilled migrant labour and how it fails to retain the people it really needs.

This appeared in Monday’s Greymouth Star newspaper:

Out-of-work miners who were lured to the West Coast for employment at Pike River say they have been given weeks to find work or face deportation.
Of the 20 migrants from the United Kingdom, South Africa and Germany who were made redundant last week after the hapless Pike River Coal Company was placed in receivership, only two have permanent residency.

One UK man, who moved to Greymouth a year ago specifically to work at Pike River, told the Greymouth Star he had been given five weeks to find work or leave town.
Immigration New Zealand officials were in Greymouth for two days last week to deliver more bad news to the newly-redundant miners.
“When I walked in I was told I was now living in New Zealand illegally and that they would turn a ‘blind eye’ for five weeks while I either found another job in Greymouth or left the country,” the UK miner, who asked for anonymity, said… read much more here

The New Zealand mining industry brought these men over from their homes countries so that they could work in their mines, when the jobs disappear are they to be thrown on the scrap heap and treated like undesirables? At the very least Work and Income and should be pulling out all the stops and finding them suitable employment, and if that’s not possible fully fund their repatriation expenses (including shipping of their household goods) or onward migration to another country that deserves them more.

One of the redundant UK miners told the paper

“I’ve just lost my mates in that mine, we are still in shock, now we are being forced to leave — what sort of Christmas are we going to have?”

…Bernie Monk, elected spokesman for the families of the 29 mine victims, said the situation for the migrant workers was “gut wrenching”.
He personally knew one of the men affected.
“Because his contract with Pike River is now null and void he no longer has a job. He has been told he has to find another job over $55,000 otherwise he will need to leave the country.
“He loves this place and doesn’t want to leave. This guy is still getting to grips with losing his workmates and then to have to deal with this … when will it end?”
Mr Monk said he had been working with West Coast MPs to try to get some compassion under the circumstances.”

We wish the men and their families the best of luck with getting some compassion, which they are more than entitled to.  We just hope that their impending deportation doesn’t affect their redundancy payments.

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Posts tagged:  Jobs for Kiwis

Philippines warns citizens against NZ work-to-residence scheme:

“”Philippines consul-general Emilie Shi says Immigration New Zealand is not doing enough to warn would-be applicants about the difficulties of finding a job or telling them that Kiwis will be given preference by employers.

“Immigration New Zealand continues to say what a great place this country is to come live and work in, but they cover up the fact that it is very difficult to find a job here, or that they will be treated as second-class workers under the scheme,” Ms Shi said….”"

90 Day Fire At Will Law

New Zealand trades unions have risen to the government’s challenge to prove that the new 90 day ‘Fire At Will’ law, which was passed under urgency (meaning that the public and unions had no chance to make submissions on it)  has resulted in workers losing their jobs.

They are to showcase a number of  videos on YouTube where they intend to name and shame businesses that unfairly dismissed workers under the new rule. They intend to make the public aware of the implications of the new legislation and the effects it is already having on some individuals.

The NZ Council of Trade Unions says

The Government wants to take away everybody’s right to fair treatment when they start a new job.
For now, the current Fire at Will law only applies if you start work for a company with fewer than 20 staff.
But if you are starting work with a small employer they can now fire you for almost any reason, or even no reason at all, during your first 90 days – and they don’t have to give any reason.

And they are encouraging workers to protest against the new law, which they fear will be extended by the government to all businesses in New Zealand. Watch a TV report about the campaign here

No prizes for guessing that the groups most likely to fall foul of the new rules are likely to be young people, women in low pay jobs and immigrants.

This is Heather Smith’s story, even though she’d been working in the business for three years she had no job security when it came under new ownership

If you’ve lost your job because of the new law please leave a message in the comments section and tell us about it.

Read more about this issue:

Report on 90-day trials at odds with Govt line - “questionable methodology” was used in a study to validate the effectiveness of the Fire at Will law.

All new workers set to face 90-day trial – The government plans to extend the scheme to new workers in all companies in New Zealand.