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New Zealand’s new PM decries ‘open floodgates’ immigration policy after upsurge in arrivals

  • New Zealand’s population rose 2.7 per cent in the year to September, its biggest jump in more than 30 years, as immigrant numbers surged
  • Prime Minister Christopher Luxon said the annual immigration gain of 118,835 people through September ‘doesn’t feel sustainable … at all’

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New Zealand’s Prime Minister Christopher Luxon speaks in parliament last week. Photo: AFP
Bloomberg
New Zealand’s record level of immigration is unsustainable and the government expects it to slow, Prime Minister Christopher Luxon said.

The net annual immigration gain of 118,835 people in the year through September “doesn’t feel sustainable for New Zealand at all”, Luxon told Radio New Zealand on Monday in Wellington. “We understand that there is a little bit of catch up that has been needed to fill some shortages that have existed since the lockdown periods. We expect that to be slowing month on month.”

New Zealand’s population rose 2.7 per cent in the year to September, its biggest jump in more than 30 years, as immigrant numbers surged. The Reserve Bank last month surprised markets by signalling a greater risk of a rate increase next year, citing concern that the flood of new arrivals is pushing up rents and house prices, and may fan inflation.

An aerial view of downtown Auckland. New Zealand’s central bank last month highlighted concerns that the flood of new arrivals was pushing up rents and house prices, and may fan inflation. Photo: AP
An aerial view of downtown Auckland. New Zealand’s central bank last month highlighted concerns that the flood of new arrivals was pushing up rents and house prices, and may fan inflation. Photo: AP
Luxon’s comments come after Australia said it plans to bring its own record-high levels of immigration under control as it struggles with a growing housing crisis and soaring rents.

Luxon didn’t provide any target for annual immigration, noting that New Zealanders and Australians are free to come and go, which makes it hard for governments to set exact numbers.

He said the key is to link immigration policy to worker shortages and the government’s broader economic agenda. At the same time, the government has to manage the infrastructure that’s needed to support that population growth, he said.

The previous government had been too loose with its immigration policies, allowing more people to arrive than was necessary to meet skills shortages, said Luxon, who took office late last month after winning the October election.
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