Proposal to scrap RSE worker limits cancelled by Cabinet, documents reveal

Immigration Minister Erica Stanford advocated for eliminating annual caps on Pacific migrant workers within the Recognised Seasonal Employer (RSE) program, but her proposal fell short due to Cabinet's disapproval, according to recently released documents. Stanford believed the move would cut administrative fees for RSE employers while boosting funds sent back to the Pacific region.

She had previously unveiled several RSE scheme adjustments, such as allowing workers to apply for migrant exploitation protection visas, and extending employer eligibility if they treated their staff adequately. Her office acknowledged the proposal was reviewed but ultimately shelved before an official announcement. No mention of the proposal existed in the decision minutes, indicating it likely never progressed beyond the committee stage.

While a limitless scheme could potentially boost worker numbers, the Cabinet paper acknowledged it might exacerbate competition for New Zealand workers—a common critique of seasonal worker programs. Officials plan to track RSE worker numbers and their share of the overall workforce, with regular reports aimed at determining if the cap should be reinstated.

Concerns were expressed by the horticulture industry about the cap's complexity, with Pacific partners having diverse opinions but none strongly opposing its removal. Employers generally consider their allotted worker slots as their own cap and have largely prioritized New Zealand workers, who still constitute three-quarters of the horticulture workforce, explaining the typically modest number of RSE workers compared to the cap.

Worker numbers have remained stagnant since 2022 despite cap hikes, suggesting the cap has rarely effectively limited RSE participation. Since its initial implementation in 2013, the cap has been consistently raised in response to demand, indicating its limited effectiveness as a volume-control mechanism. When the current government term began, the National-ACT coalition agreement set the cap at 20,750 workers for the 2024/25 season, a figure that remains unchanged.

During the 2023 general election, the ACT Party advocated for scrapping the caps, while Stanford's National Party supported a smaller increase. Agriculture spokesperson Andrew Hoggard of the ACT Party praised the RSE reforms last week, emphasizing the urgent need for workers when fruit is ready for harvest.