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Australia, NZ fight for skilled migrants
17:35 AEDT Tue Mar 8 2005
Australia and New Zealand are competing against each other to attract skilled migrants, New Zealand's finance minister and Deputy Prime Minister Michael Cullen said.
Mr Cullen, speaking to reporters before addressing a business symposium in Melbourne on Wednesday, said the trans-Tasman neighbours are looking for the same workers to help boost their economies.
"Inevitably there is some degree of competition," Mr Cullen said.
"We're looking for extraordinarily similar people - it's the trades and technical areas which are in particular short supply and they are the hardest for us to attract in many respects.
"We have a disadvantage because Australian wage rates are higher than in New Zealand."
Mr Cullen said there had been major concerns about the lack of skilled labour in New Zealand for at least three years.
"It's been ranking very high on the list of business concerns - we even have labour shortages in semi-skilled and unskilled labour," he said.
Australian Prime Minister John Howard has been encouraging students to head to employment in skilled trades rather than university after completing high school.
A report released last month said the ageing of Australia's population will lead to permanent labour shortages across many industries by 2010.
Employment solutions company Drake International said severe labour shortages are being felt in the skilled trades and the automotive, education, health and transport and distribution sectors.
Mr Cullen also said a trans-Tasman council was being set up to look at harmonising banking regulations.
He said the NZ banking regulator, the Reserve Bank of New Zealand (RBNZ), was concerned about the loss of head office capacity for banks in New Zealand.
He said if there was too much transfer of that capacity offshore it would make it difficult for the RBNZ to fulfil its statutory duties.
The four major banks in New Zealand are owned by Australian banks.
"In New Zealand it is very difficult to sell the idea that APRA (Australian Prudential Regulation Authority) becomes the regulator of New Zealand financial institutions," Mr Cullen said.
"It's not consistent with either sovereignty model and the Australian model may be somewhat heavier than the RBNZ would prefer to see."
He also dismissed any speculation that Australia and New Zealand should have a single sharemarket.
He said the NZ sharemarket performed well in 2004, finally shaking off the effect of the 1987 crash.
"The sharemarket is showing much better resilience," he said.
"What's important over time is that there is perhaps more co-operation between the two but it's not necessary for us to think in terms of a single sharemarket.
"If there were one it would be difficult for moderate size companies looking for a float."
©AAP 2005
17:35 AEDT Tue Mar 8 2005
Australia and New Zealand are competing against each other to attract skilled migrants, New Zealand's finance minister and Deputy Prime Minister Michael Cullen said.
Mr Cullen, speaking to reporters before addressing a business symposium in Melbourne on Wednesday, said the trans-Tasman neighbours are looking for the same workers to help boost their economies.
"Inevitably there is some degree of competition," Mr Cullen said.
"We're looking for extraordinarily similar people - it's the trades and technical areas which are in particular short supply and they are the hardest for us to attract in many respects.
"We have a disadvantage because Australian wage rates are higher than in New Zealand."
Mr Cullen said there had been major concerns about the lack of skilled labour in New Zealand for at least three years.
"It's been ranking very high on the list of business concerns - we even have labour shortages in semi-skilled and unskilled labour," he said.
Australian Prime Minister John Howard has been encouraging students to head to employment in skilled trades rather than university after completing high school.
A report released last month said the ageing of Australia's population will lead to permanent labour shortages across many industries by 2010.
Employment solutions company Drake International said severe labour shortages are being felt in the skilled trades and the automotive, education, health and transport and distribution sectors.
Mr Cullen also said a trans-Tasman council was being set up to look at harmonising banking regulations.
He said the NZ banking regulator, the Reserve Bank of New Zealand (RBNZ), was concerned about the loss of head office capacity for banks in New Zealand.
He said if there was too much transfer of that capacity offshore it would make it difficult for the RBNZ to fulfil its statutory duties.
The four major banks in New Zealand are owned by Australian banks.
"In New Zealand it is very difficult to sell the idea that APRA (Australian Prudential Regulation Authority) becomes the regulator of New Zealand financial institutions," Mr Cullen said.
"It's not consistent with either sovereignty model and the Australian model may be somewhat heavier than the RBNZ would prefer to see."
He also dismissed any speculation that Australia and New Zealand should have a single sharemarket.
He said the NZ sharemarket performed well in 2004, finally shaking off the effect of the 1987 crash.
"The sharemarket is showing much better resilience," he said.
"What's important over time is that there is perhaps more co-operation between the two but it's not necessary for us to think in terms of a single sharemarket.
"If there were one it would be difficult for moderate size companies looking for a float."
©AAP 2005
