Horticulture New Zealand
1 August 2007

Crisis looms in horticulture industry unless Govt extends seasonal work permit scheme

Horticulturists say the government’s plan to drop the Seasonal Work Permit scheme will mean the industry, which is already facing significant labour shortages, will have several thousand fewer workers next season, leaving tonnes of fruit and vegetables unpicked and unable to be exported.

With the introduction of the recognised employer scheme (RSE) the Government has signalled the end of the existing Seasonal Work Permits (SWP) on 30 September.

There has been increasing concern from industry about the impact of the withdrawal of SWP. Yesterday the Ministers of Agriculture and Immigration announced that the Government wanted to work with the industry to develop options to assist more employers move to the RSE scheme.

“The Government’s announcement is a move in the right direction. However the issues facing growers with the RSE scheme are too significant and cannot be resolved by 30 September. The only real solution is to allow for a longer transition time to the new RSE scheme by continuing the SWP scheme for two more years,” says Horticulture New Zealand President and Bay of Plenty kiwifruit grower Andrew Fenton.

“Unless the SWP scheme is extended for two more years, we will not have sufficient staff to manage and move our produce when the scheme ends on 30 September. If it’s not picked at optimum time, we can’t export it.

“Even if we fill the RSE scheme quota that allows up to 5000 people to be recruited offshore, based on the number people we recruited last year under the schemes being replaced, we will still be at least 1500 people short.

“Contrary to what the government thinks, the labour shortfall won’t be addressed overnight on 30 September. Growers need more time to transition to the new scheme and its increased requirements like pastoral care, such as providing accommodation.”

Mr Fenton said a longer transition period would allow the industry to phase out the existing scheme and in doing so, maintain workers and meet production targets while the new scheme is introduced.

“While the RSE scheme has merits, it is not suited to smaller growers. They do not have the continuity of work or accommodation required to make it work. We need a longer transition period to help growers make the changes required.”

New Zealand’s horticulture industry is worth $4.5b, of which $2.5b of produce is exported.

Under the RSE scheme workers from five Pacific countries (Tonga, Samoa, Vanuatu, Kiribati and Tuvalu) will be provided work permits for seven months to work in the horticulture and viticulture sectors, when no New Zealanders are available.

Growers will be required to pay half the workers’ airfares to New Zealand, provide accommodation and care, transport to and from the workplace (if necessary) and take liability for anyone who overstays their visa.

“This is Export Year and yet the government is effectively rail roading us into a scheme that will adversely affect our ability to export and do business globally. The horticulture industry is at a turning point – we currently contribute $4.8 billion to the economy. With the right policies in place and development we could be a $10 billion industry.

“Unless we retain the permit scheme for two more years we could find this policy devastates the industry rather than building it,” says Mr Fenton.

The Horticulture NZ conference is being held at the Christchurch Convention Centre from 31 July to 2 August 2007. For a full conference programme visit www.hortnz.co.nz

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