Business migration up

Tuesday, 8 March, 2005 - 21:00

With debate over Australia’s skills shortage hotting up in Canberra, business migration to Western Australia is set to break all records this year.

The most rapid growth has been in the use of so-called section 457 visas, which allow sponsored workers to stay in Australia for up to four years.

The Western Australian office of the immigration department granted 2,213 section 457 visas in the seven months to January, more than the total number granted in the entire previous year (2,103).

These figures understate the use of section 457 visas in WA, since many applications are processed through interstate offices.

Nationally, the total number of section 457 visas granted in the past seven months was 25,554, which on a pro-rata basis is well ahead of the 40,683 granted in the previous year.

The increased use of section 457 visas is just one illustration of the increased use of foreign workers in Australia.

Employers wanting to bring more than 50 workers into Australia, typically for big resources or infrastructure projects, can utilise labour agreements which allow them to nominate the number of people coming into the country.

As well as the rise in temporary labour imports, there has also been a substantial rise in permanent migration of skilled workers to Australia.

The number of migrants settling in WA reached 7,955 in the half-year to December, with about two thirds arriving under various skills programs.

On an annualised basis, this was slightly ahead of the 15,411 people who settled in WA in the previous year, which was, in turn, the highest figure for a decade.

The Federal Government has adopted several measures to boost skilled migration, particularly for people prepared to settle in regional areas, and Immigration Minister Amanda Vanstone recently said she would consider introducing a new type of short-term visa, mainly for seasonal workers.

In addition, there has been speculation the Government will approve a 20,000 increase in the national intake of skilled migrants.

The skilled migrant intake this year is 77,100 (out of a total migrant intake of 120,000), up from just 53,520 in 2001-02.

The Immigration Group’s Lance Fee believes the Govern-ment could achieve a better outcome by revising some of the current rules and regulations.

For instance, he said the points test made it difficult for people aged more than 30 years to qualify for permanent migration, even though they may have appropriate skills.

A second problem is that the process of formal skills assessment can take up to six months, unless applicants are prepared to pay an extra charge.

Mr Fee called on employers to take the initiative and utilise the employer sponsored visa options that are presently available.

Karen Waller, director of KPMG’s migration group, has found that employers sponsoring section 457 visa holders are struggling to comply with the onerous and complex regulations.

“Furthermore they are concerned that they may be unable to meet their workforce planning needs in the future if they are not able to comply with these new rules,” Ms Waller told WA Business News.

“The interpretation of the recent legislation can be very broad and companies are concerned that [the immigration department] will also take any failure to comply with these obligations into account in assessing any future sponsorship applications.”

Meridien Migration’s Charles Knight agreed that the regulations are complex, and include a requirement for employers to show financial records to the immigration department.

“There can be a fair amount of work that needs to be done behind the scenes,” Mr Knight said.

“When some people see how complex the requirements are, they baulk at the idea.”