National opens door for wealthy retired migrants

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Should wealthy retirees be allowed to settle in New Zealand?

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Wealthy elderly foreigners will be able to buy entry to New Zealand under plans originally rejected by the Immigration Service a decade ago.

Immigration Minister Jonathan Coleman has announced two new retirement visas aimed at increasing investment and stimulating the economy.

Dr Coleman said the new Immigration Retirement Package delivered on an election promise to enable high-income retirees to live in New Zealand.

Under the plan, immigrants can apply for entry under a temporary retirement category if they have good health and character, can invest a minimum of $750,000 in New Zealand over two years, can demonstrate an annual income of at least $60,000 at the time they apply, and assets of at least $500,000.

They must also be older than 65 and have comprehensive health insurance. Temporary retirees will be able to renew permits as long as they continue to meet criteria including investment funds, income and health insurance.

The Government is also making it easier for retirees who have family in New Zealand to settle here. Those who meet the criteria for the family parent category and can invest a minimum of $1 million over four years will be able to apply for residency.

Labour immigration spokesman Pete Hodgson said National was recycling an idea rejected by officials more than a decade ago.

Mr Hodgson made public an August 1999 briefing presented to associate immigration minister Lockwood Smith which noted "significant risks" that visa holders would have at least some healthcare in the public system even if they had health insurance.

The report said the potential benefits of retirement visas "are likely to be marginal".

"There would be significant risks associated with retirement visas, with the two major areas of risk being the potential impact on publicly funded health services and the potential to create immigration problems," the report says.

While there were measures that could mitigate the risks, such as attaching financial and health conditions, hospitals could not turn away sick people even if they refused to pay for their treatment. It was also doubtful whether elderly people on temporary permits would be able to gain health insurance, the report said.

It estimated the likely costs to the public health system at $580,000 a year and $7300 to the ACC.

"Officials recommend that retirement visas not be introduced, as it is considered likely that the potential risks will outweigh the potential benefits."

A spokesman for Dr Coleman said that only those with full health insurance would qualify for temporary retirement visas.