Immigration Minister David Cunliffe has announced that New Zealand’s migrant intake will be reduced from that of last year in order to avoid inflation in the economy.

The New Zealand Immigration Service aims to admit between 45,000 and 50,000 migrants over the forthcoming year; a figure down from last year’s target of 47,000 to 52,000.

Interest rates in New Zealand have increased three times this year, raised by New Zealand’s central bank in an effort to subdue consumer demand. According to the bank, interest rates could increase to 2.8 per cent by March 2009, up from 2.5% last year.

Mr. Cunliffe stated: “our top priority at present is ensuring we get high quality migrants while not adding to inflationary pressures.”

The plan for the forthcoming year is that temporary migrants, those who will not be applying for residency in New Zealand, will be used to fill the void in skilled labour that will result from the decrease in migration arrivals.

Mr. Cunliffe continued: “I have directed the Department of Labour to investigate a range of initiatives to improve employer awareness of, and access to, temporary work policy.”