Criticism from businesses as Immigration NZ collects millions from migrants eager to apply for residency – when it isn't even processing applications.
Migrants are being given "a false sense of hope" as thousands lodge expressions of interest for permanent residency with Immigration NZ, without indications from the Government on when the agency will resume processing applications.
Immigration NZ has close to $5 million in expression of interest application fees under the skilled migrant category sitting in its bank account, from 9329 applications.
The expression of interest processing pool has been put on hold because of Covid and the freeze was extended for another six months in October last year.
Before Covid, expressions would be processed every two weeks and could be in the pool for a maximum of six months.
Immigration NZ's border and visa operations general manager Nicola Hogg said that although the suspension was currently being reviewed, there was no timeframe for a decision.
Migrant Workers Association president Anu Kaloti says it was "appalling" for Immigration NZ to be accepting new expression of interests applications without any indication of when processing will resume.
"It's grossly unfair the government department is willingly taking people's hard-earned money when they know application processes aren't going anywhere," Kaloti said.
"The moment they suspended the processing, they should've also suspended accepting applications."
Kaloti said if a private company had taken money without offering a good or service nor indicating when a customer would receive it, the company would be breaching Consumer Guarantees Act.
To be successful in their expression under the skilled migrant category, migrants must have a job that qualify for at least 160 points under the immigration's system (determined by an immigration advisor). The expression of interest fee is $530.
If successful, migrants can apply for permanent residency after completing medical checks.
Currently there are about 13,000 people waiting in queue for their residency applications to be processed by Immigration NZ.
Immigration Minister Kris Faafoi said this was because of increased demand, but the government department said it was waiting for guidance from the minister to make a decision on a new approval quota.
Immigration NZ continues to be resourced in line with the Government's New Zealand Residence Programme which expired on December 31, 2019. While the agency waits for the Government to make a decision on the new quota, it has been processing applications at the same volume and with the same level of resourcing.
The programme ran for 18 months from July 1, 2018 until December 31, 2019 and included a planning range of 50,000 to 60,000 approvals for residency.
Migrants can apply for a refund of their expression of interest if their visa application has not been completed or they withdraw their application, but refunds are only given in special circumstances.
"You cannot get a refund if you change your mind about your visa application or your EOI has not been selected and has lapsed," Immigration NZ's website says.
The special circumstances include if incorrect fees were paid, you paid the fee but you did not need to, or if the expression of interest was withdrawn.
Kaloti says migrants are not likely to withdraw their applications over fears it may impact their residency process in the future.
She describes the Government's immigration announcement from earlier this week as "migrant scapegoating".
"We were told migrants were responsible for the housing and infrastructure problem in New Zealand. You're only worth what your skills are."
Business NZ chief executive Kirk Hope was also critical of the government's messaging towards favouring high-skilled workers over low-skilled migrants.
"Skill shortages are already hitting New Zealand businesses and it is disappointing the Government is continuing to perpetuate a myth that migration suppresses wages," Hope said.
"The so-called 'low value' people that the Government is talking about have helped keep our export industries going and have cared for some of our most vulnerable people over the last year."
