It was disappointing to see the Government approve only a minimal 2.5 per cent increase for the Recognised Seasonal Employer (RSE) accommodation cost recovery rate last week.
It is a decision that undermines the Government’s own ambition to double export values by 2034 as well as NZAPI’s goal to reach $2 billion in export revenue by 2035.
What’s more, it came despite extensive pan-sector collaboration that resulted in the funding of an independent report into what a fair and evidence-based accommodation rate could be.
We know New Zealand’s horticulture sector cannot grow without the labour to pick, pack and process our produce, and you can’t secure that labour without a fair and sustainable cost recovery for accommodation.
RSE employers don’t want to take advantage of the system, but it is equally true that accommodation charges have been frozen for six years, while construction, operational and compliance costs have soared.
Many of our growers have invested in lifting accommodation standards and are committed to ensuring their workers are housed safely. However, that commitment now comes under increased financial strain.
Along with Horticulture New Zealand, Kiwifruit New Zealand and Summer Fruit New Zealand, we recently invested in independent economic analysis from Infometrics in an effort to determine a fair and evidence-based accommodation rate.
We wanted to take into account real-world costs while also keeping costs down for workers. This report was shared directly with the Government and Minister for Immigration Erica Standford. That it has not been used to form this decision is extremely disappointing.
Along with our industry peers, we will continue to urge the Government to revisit the methodology for setting these rates and ensure that future changes are based on transparent, verifiable cost data.
New Zealand’s RSE scheme is a success story built on mutual benefit, delivering essential seasonal labour for growers and economic opportunities for Pacific communities.
It’s important we keep that and focus on delivering benefits for all.