1988-89 cabinet paper 5790

CABINET -IN-CONFIDENCE

Copy No. 44

C A B I N E T M I N U T E

Canberra, 23 May 1988

No. 11196

Submission No. 5790 Migration Program 1988-89

The Cabinet agreed that :-

(a) the 1988-89 migration program be transitional,

pending consideration of the broad directions

set out by the Committee to Advise on

Australia's Immigration Policies (CAAIP);

(b) a program with a firm ceiling of 140,000 for

1988-89 be as set out at Attachment B to the

Submission;

(c) the program compose 35,000 family, 12,000

refugees and Special Humanitarian Program and a

contingency reserve of 2,000, 77,000 economic

(including 23,000 concessiona1 visas), and

14,000 Grant of Resident Status (GORS);

(d) entry under Independent and Concessional

categories be restricted only to applicants

scoring highly overall and on employability;

... /2

This document is the property of the Australian Government and is not to be copied or reproduced

CABINET-IN-CONFIDENCE

[1]


2.

No. 11196 (Cont'd)

(e) the Refugee, Humanitarian and Assisted Movements

vote be held at the 1987-88 Budget level but the

purpose be varied to permit loan fund

contributions;

(f) the Minister for Immigration, Local Government

and Ethnic Affairs make an announcement on

Friday 3 June along the lines of that at

Attachment A to the Submission; and

(g) the Minister for Immigration, Local Government

and Ethnic Affairs consult with the Ministers

for Finance and Foreign Affairs and Trade about

relevant resource questions and offsetting

savings and that, if agreement cannot be

reached, the matter be referred back to the next

meeting of Cabinet.

2. The Cabinet noted that :-

(a) the proposals set out in sub-paragraph (d) above

will give a higher emphasis to the selection of

young, skilled and readily employable migrants

but affects applicants who can no longer achieve

this higher selection requirement;

(b) the resulting projected net permanent gain after

allowing for GORS approvals, Trans Tasman flows

and emigration for 1988-89, is 130,000;

..• /3


CABIN ET-1 N-CON Fl DENCE

[2]

CABIN ET-1 N-CON Fl DENCE

3.

No. 11196 (Cont'd)

(c) the above proposals clean the slate of existing

caseload and allow room for manoeuvre to phase

in CAAIP recommendations later in the financial

year if endorsed by the Government;

(d) the Ministers for Finance and Immigration, Local

Government and Ethnic Affairs consult further on

resource implications (including those for the

Department of Foreign Affairs and Trade),

particularly in light of the decision that the

program be subject to a firm ceiling rather than

a planning target (sub-paragraph l(a) above

refers), and report back to Cabinet if

necessary; and

(e) the internal review system will have strict

regard to policy applicable at the time of

primary decision.

Secretary to Cabinet



[3]

CABINET-IN-CONFIDENCE ... - ~ t)O r., v•vv

Subm•ssion No." -· ... ..... .

FOR CABINET __ ,_...,~5 Copy ~o . ..... ......... ~.. ,_ ..

Title

M inister

Purpose/Issues

Migration Program - 1988/89

Hon Clyde Holding MP Minister for Immigration, Local Government and Ethnic Affairs Arrangements for the migration intake for 1988/89 pending consideration of the report of the Committee to Advise on Australia's Immigration Policies (CAAIP):

~~--~7.~~(a) program level of 140,000 migrant, refugee and Special '/~ Humanitarian Program (SHP) visas and Grant of

Relation to existing policy

Sensitivity /Criticism

Legislation involved

~ency: critical/significant dates

nsultation: • M inisters/Depts

consulted

• Is there agreement?

Timing/handling of announcement

Cost

~ Resident Status (GORS) approvals; maintain commitment to immediate family reunion and international commitments; continue the process of giving the intake a sharper economic focus.

CD 9655 of 4 June 1987 set program at 120,000 for 1987/88, 25,000 for 1988/89, 130,000 for 1989/90. On 6 April

1988, Government announced increase in 1987/88 program to 132,000 to accommodate more business migrants and Independent and Concessional (I&C) applicants while suspending I&C processing except for those with high employability profile.

CAAIP has stimulated.~desprer:u'l. r.nmmnn i t-v i nt:Arest and expectations. Not all sections s~pport either increased intake or implications of sharper economic focus. Reduction in concessional visas will be criticised by ethnic community leaders. Nil.

Urgent: Decision needed for program planning and Government Budget decisions.

Treasury; Finance (DOF); Prime Minister & Cabinet (PM&C); Foreign Affairs & Trade (DFAT); Employment, Education & Training (DEET); Industry, Technology & Commerce; Industrial Relations (DIR); Attorney-General's; Administrative Services. No. Broad support for thrust of Submission with some variation in option preferences. DIR, DEET wish increase in domestic training. DOF, Treasury, PM&C disagree with timing of resource decisions, DFAT flags overseas resource issues. Refer Attachment G. Announcement following decision. Refer Attachment A.

FinYr( 88- 89 $7.445m (43 ASL)

Fin Yr ( 89- 9\0 Fin Yr ( go- 9)1 $6.485m (32.5 ASL) $6.33m (46.

AS



I

I I

•

[4]


2

BACKGROUND

The size and composition of the Migration Program are determined by

a mix of economic, social and demographic considerations. Current

policy is guided by the Prime Minister's directive of July 1987 to

continue to sharpen the Program's economic focus while maintaining

family reunion and humanitarian entry. Future policy directions

will come under scrutiny in the context of the report of CAAIP,

which I expect to table shortly. Given delays in the finalisation of the report it has been necessary to develop a transitional

Program for 1988/89.

THE ISSUES

2. The major issue is to set 1988/89 program arrangements. Such

arrangements should clean the slate on existing caseloads and

provide the Government with room to manoeuvre in its pending

consideration of CAAIP.

3. Program Level: I propose a program level of 140,000 for 1988/89

to accommodate family reunion; maintain refugee and humanitarian

entry; meet essential skills demand through the Occupational Share

s~=tem (OSS) and Employer Nomination ~cneme (~N~j; provide for

increases to the Business Migration Program (BMP); and select those

I&C applicants already in the processing stream who meet a high

employability profile, ie have skills in demand. Proposed level and

composition of the 1988/89 program, compared with estimated program

outcome for 1987/88, is at Attachment B.

4. I have not set a planning level beyond 1988/89, pending

Government consideration of CAAIP, which is likely to recommend

150,000 for each of the next three years 1988/89 to 1990/91.

5. Family Migration: I propose to set the program at 35,000 visas

in 1988/89, in line with anticipated demand; this compares with

33,000 for 1987/88. Policy provides for virtually automatic entry

for spouses, dependent children and aged parents. CAAIP is likely

to recommend a continuation of policy with some minor adjustments.

6. Refugees and SHP: On the basis of international assessments and

domestic factors, I propose to hold the program at a ceiling of

12,000 visas plus a 2,000 contingency reserve in 1988/89 and to

allow the option of reducing the proportion of refugee and funded

SHP places. I propose dealing with any concomitant increase in

unfunded entrants by varying the purpose of the Refugee,

Humanitarian and Assisted Movements vote to permit limited

contributions as appropriate towards international agency travel


[5]


3

loan funds. CAAIP is likely to recommend an increase in the intake

to 15,000 compared with an expected outcome of 11,200 in 1987/88.

Details are set out at Attachment c. 7. Open Economic Migration: The remainder of the

the elements directed towards economic development

BMP and !&C) and the special eligibility category.

propose to:

program comprises

needs (OSS, ENS,

For 1988/89 I

(a) increase ENS and OSS to 18,000 visas, compared with 17,000

expected for 1987/88, to allow targeting skilled migrants to meet

economic priorities, including the continued development of

negotiated agreements. This dovetails skilled migration with

domestic training efforts.

(b) further expand BMP to 12,000 visas, compared with an estimated

outcome of 8,000 for 1987/88, to tap the business expertise and

development capital coming forward and to maximise the benefits of

the new private sector processing arrangements;

(c) process I&C applications (ie the pipeline plus likely additions

to it during 1988/89, an estimated total of 262,500 persons) as

.Lol.l.uw;:;: 19,500 visa;:; u.s the balance of applicants who na.ve dlLt=dLi.y

received preliminary approval; 14,000 visas for those with a high

employability profile being processed up to preliminary approval

stage by June 1988 and 12,000 visas for 1988/89 applicants with a

similar profile; details, including affected source countries, at

Attachment D.

(d) retain the special eligibility category at 1,500 visas in

1988/89, the same as in the previous year, to accommodate a variety

of special interests not elsewhere provided for within the program.

8. These arrangements will: continue to give the intake a sharper

economic focus by emphasising young, skilled and entrepreneurial

migrants; restrict entry to highest scoring I&C applicants

having a good employability profile (about 143,000 people who may

previously have been eligible for visas will therefore be rejected);

reduce concessional visas (refer to paragraph 13); and clear the

backlog for the possible introduction of new policy following

decisions on CAAIP, which is likely to recommend a consolidated

"open category" for economic migration and selection based on a

floating passmark. Fluctuations in demand necessitate an overhaul

of the points system.

9. I anticipate, as a consequence of moves to clear the backlog, a

significant increase in the number of appeals. In order to minimise


[6]


4

the impact of this increase on the review system it is proposed to

re-emphasise to decision makers and reviewing officers the need to

have strict regard to Government policy. Additionally it is proposed

to make clear to officials and applicants alike that it is not

appropriate to use the internal review process to challenge the

policy applicable at the time of the primary decision. Despite

these measures, significant increases in review applications cannot

be ruled out. Given current obligations to provide review and

reduce processing times, there may be a need to reconsider the level

of resources for the review function, which has been reduced by 50

ASL in 1988/89 forward estimates.

10. Grant of Resident Status: Permanent residence may be granted to

temporary entrants already in Australia, predominantly on the basis

of family relationship. I propose to increase approvals in 1988/89

to 14,000, compared with an estimated outcome of 11,800 for 1987/88.

Legislated criteria determine approval levels, which tend to

increase as temporary entry numbers rise.

11. Trans Tasman: Under the Trans Tasman Travel Arrangement, New

Zealand (NZ) ~iLi~~~s ~u 110 t need to acq~~re visas for travel to

Australia. Permanent arrivals of NZ citizens have increased from

10,601 in 1984/85 to 15,923 in 1986/87 and is estimated at 16,000 in

1987/88 and 1988/89. Details at Attachment E.

12. Permanent Departures from Australia: In 1988/89, the number of

permanent departures are projected to increase to about 24,400. The

projected net permanent gain for 1988/89 is 130,000. Details at

Attachment F.

OPTIONS

13. The most sensitive issue relates to the management of

applications in the I&C category to achieve the proposed intake.

Two options are :

a) to select those scoring well overall and highest on

employability: this is estimated to yield Independent visas and

Concessional visas in a ratio of 3:1, compared with a 1:3 ratio in

1987/88; or

b) to select those scoring highly overall and high on

employability: this is estimated to yield Independent visas and

Concessional visas in a ratio of 1:1.

While (a) is most closely targeted to economic requirements, the

cutback in the Concessional category is in my view far too great for


[7]


5

one year. There is a high level of community interest and there

would be a high political cost. I favour option (b) which would

still enhance significantly the economic contribution of the I&C

category without cutting so drastically into Concessional

applications. This option is also preferred by the Caucus Committee

on Immigration, Local Government and Ethnic Affairs. I intend

initially to select those scoring 80 and more points, plus those

scoring 75 points and the maximum 25 on the employability factor. I

will also be rejecting applicants scoring less than 75 points,

other than those scoring 70 and the maximum 25 on employability,

who will be held as a buffer for planning purposes. I do not

consider it appropriate to increase the program further just to

accommodate the pressures of the Concessional category.

RESOURCE IMPLICATIONS

14. Based on economic research, increasing the size of the

immigration program should, in time, reduce calls on the budget

through real growth and consequent revenue effects. On the outlays

side, increasing the size of the program by 20,000 places over that

approved in the 1987/88 budget con~ex~ and changing the basib uf

selection will have three key resource effects:

(a) additional resources will be required for post-arrival

services, in line with the formula increase agreed last year

including now some minor provision for accommodation, totalling

around $2.9m (13 ASL) in 1988/89, $4.3m (24 ASL) in 1989/90 and

$5.4m (43 ASL) in 1990/91;

(b) the migration program has increased from around 70,000 to

120,000 without supplementation of overseas administrative

resources. While an increase to 140,000 would be difficult to

absorb in the absence of computerised processing, it is clearly not

possible during a transition period. Accordingly, a very modest

increase of $1.255m per annum is proposed for the two year period to

1989/90 (covering 5 Australia-based staff and 25 Locally Engaged

Staff) until computer systems and procedures are fully operational

and the backlog has been eliminated; and

(c) the delivery of a migration program at specific levels is not

feasible, without causing unsustainable administrative pressures, in

the absence of a floating pass mark and concomitant computerised

processing and program management tools. If 1988/89 levels are to

be controlled, computer resource requirements would be $3.29m (25

ASL) in 1988/89 and $0.93m (3.5 ASL) in a full year. The higher

costs in 1988/89 reflect hardware and software establishment costs.


[8]


6

RECOMMENDATIONS 15. I recommend that Cabinet:

(a) agree that the 1988/89 migration program should be transitional, pending consideration of the broad directions set

out by the Committee to Advise on Australia's Immigration

Policies (CAAIP);

(b) agree to a program of 140,000 for 1988/89 as set out in

Attachment B;

(c) agree to a composition of 35,000 family, 12,000 refugees and

Special Humanitarian Program and a contingency reserve of

2,000, 77,000 economic (including 23,000 concessional visas);

and 14,000 Grant of Resident Status (GORS);

(d) agree to restrict entry under Independent and Concessional

categories only to applicants scoring highly overall and on

employability;

(e) note that this will give a greater emphasis to the selection of

young, skilled and readily employable migrants but affects

applicants who can no longer achieve this higher selection

~cquirement;

(f) note that the resulting projected net permanent gain after

allowing for GORS approvals, Trans Tasman flows and emigration

for 1988/89, is 130,000;

(g) note that the recommendations clean the slate of existing

caseload and allow room for manoeuvre to phase in CAAIP

recommendations later in the financial year if endorsed by the

Government;

(h) agree to additional resources of $7.445m (43 ASL), $6.485m

(32.5 ASL) and $6.33m (46.5 ASL) in 1988/89, 1989/90 and

1990/91 respectively;

(i) note that there may be a need to bring forward a further

submission on resource implications for Review in the 1988/89

Budget context;

(j) agree that the Refugee, Humanitarian and Assisted Movements

vote be held at the 1987/88 Budget level but the purpose be

varied to permit loan fund contributions;

(k) note that the internal review system will have strict regard to

policy applicable at the time of primary decision; and

(1) agree that I make an announcement along the lines of that at

Attachment A.

12 MA(;A~1NET-IN-CONFIDENCE CLYDE HOLDING

[9]


DRAFT NEWS RELEASE

NATIONAL INTERESTS

7 ATTACHMENT A

1988/89 MIGRATION PROGRAM TAILORED TO

1. "Australia will select 140,000 new settlers during

1988-89 in a migration program both economic and

humanitarian in outlook", the Minister for Immigration,

Local Government and Ethnic Affairs, Mr Clyde Holding

announced today.

2. "It provides the basis for any new directions that may

emerge from the Government's consideration of the FitzGerald

Report, tabled in Parliament on( .... date .... )", he said.

3. ''The policy has succeeded in being sensitive to

Australia's economy as well as to the genuine needs of

people.

4. "There will be emphasis on bringing into Australia

skilled and entrepreneurial people to contribute to our

economy.

5. "But, equally, Australia has compassion for those in

genuine need of sanctuary in our country and concern for the

reunification of close relatives in families".

6. "It means an increase of 8,000 migrants over the

expanded figure of 132,000 for 1987-88", the Minister said.

7. He said the 1988-89 program has been carefully tailored

to the national interest against the background of soaring

interest overseas, with migration inquiries now running at

around one and a quarter million a year.

8. Family Migration: "The program will continue to provide

for relaxed entry for close family members, inclu~ing

spouses, dependent children and parents. 35,000 places have

been allocated. These provisions benefit both overseas-born

residents and many people born in Australia who marry

overseas or who have close family living overseas", Mr Holding said.

9. Refugee and Humanitarian Migration: "The Government has

reaffirmed its commitment to the global humanitarian and

refugee intake. This category is maintained at 12,000


[10]


8 ATTACHMENT A

places, as in recent years, while the regional refugee

allocations have been adjusted to respond to changing

circumstances around the world."

10. "A key feature of this part of the migration program is

its responsiveness to genuine need," Mr Holding emphasised.

For this reason we must retain places for genuine refugees,

and the Government's aim is to ensure that priority is given

to the most pressing humanitarian cases." 11. "Australia's refugee resettlement program is generous

and strongly complements our international aid program and

diplomatic initiatives. Resettlement is a vital measure,

but it it is not the only or always the best way to assist",

Mr Holding noted. ''Australia will continue to work closely

with the Office of the United Nations High Commissioner for

Refugees, the Intergovernmental Committee for Migration and

other humanitarian bodies in international efforts to meet

the needs of refugees."

12. Open Economic Migration: "Our Occupational Shares

System and Employer Nomination Scheme will remain in place

for 1988-89", Mr Holding said. "This will help ensure that

our skilled migration and domestic training efforts are

working together. 18,000 places have been allocated" .

13 . The Business Migration Program has seen a dramatic

increase over the past year from 3,500 persons to an outcome

of 8,000 persons .

14. "The investment and job creation potential of this

program is very significant for our economic development",

Mr Holding said. "The interest shown in the prog:r;am

overseas is sufficient to increase it to 12,000 for 1988-89.

Each principal applicant brings an average of $0.55 million

to Australia and their new ventures stimulate employment

growth . Australia can expect this program to stimulate a

business capital inflow of more than $1.5 billion in

1988/89."


[11]


9 .ATTACHMENT A

15. "The Independent and Concessional category of the

program will continue in 1988/89 with a focus on young,

skilled and employable migrants, many of whom may have

family in Australia", Mr Holding said.

16. "Concessional points are awarded in this category for

sponsored applicants who are the brothers, sisters, nephews,

nieces or non-dependent children of their sponsors, and the

bonus points for a citizen sponsor have been retained".

17. "This category provides for 45,500 places in 1988/89",

Mr Holding said. "Half the places will be for Concessionals" .

18. "However, due to vigorous demand for places, only the

highest achieving applicants will be selected, rather than

all those who meet a fixed passmark. This will apply to

both current and new applicants, except in those cases where

preliminary approval has already been notified."

19. "While the Government regrets that many applicants will

be disappointed, Australia cannot afford to operate an

open-door policy. We have to look to the national interest

which is best met by selecting those with the most capacity

to make an early contribution to Australia's economic

development through an easy transition to the workforce."

20. "Migrants come to Australia as settlers, and settlement

assistance has for many years been a vital complement to

immigration. I am pleased to announce that next year the

Government will allocate an additional $2.9m and 13 staff

for settlement services".

21. "Immigration serves a mix of economic, humani~arian and

social objectives, "Mr Holding concluded. "Above all, the

program must be tailored to meet the national interest,

while treating sympathetically the claims of individuals".

22. Further details on categories of the migration program

are covered in paragraphs 23 to 44.


[12]


10 ATTACHMENT A

23. Family Migration: Expected outcome 1987/88 : 33,000;

Program 1988/89 : 35,000.

24. Allows for sponsorship of close family, principally

spouses, dependent children and parents. Selection criteria

are simple; mainly basic health and character requirements.

Other sub-categories include orphaned unmarried relatives,

fiancees, children for adoption, special need relatives,

aged close relatives and last remaining brothers, sisters,

and adult children. Sponsors, who in some cases must have

resided in Australia for two years, undertake to provide

accommodation and financial support as necessary.

25. This category responds to demand and the program is an

estimate of that demand. The planned figure may be

exceeded as required.

26. Refugee and Special Humanitarian Programs: Expected

outcome 1987/88 : 1i,200; Program 1988/89 : 12,000.

27. The programs are being maintained at 12,000 places, as

in recent years. The breakdown by region is anticipated to

be: Indochinese 5,200; East Europeans 2,300; Latin

Americans 2,000; Middle Easterners 1,600; Africans 200;

Others 100; and Unallocated 600.

28. The programs retain the flexibility to adjust to

developments through the year. As in previous years a

contingency reserve of 2,000 is available should an

unforeseen emergency situation arise requiring an Australian

resettlement response.

29. Government travel funding will continue to be available

for up to 7,000 persons. Passage assistance will . be

allocated on the basis of demonstrated humanitarian need.

30 Open Economic Migration: Occupational Shares System

(OSS): Expected outcome 1987/88 : 8,000; Program 1988/89

8,000.

31. Applicants are selected to meet foreseeable short to

medium term skilled labour force needs. The Department of

Employment, Education and Training conducts an annual survey

and a schedule of occupations expected to be in shortage is


[13]

"


11 ATTACHMENT A

produced with numerical limits or "shares" placed on the

number of migrants who may be selected in each occupation

Applicants must be under 45 years of age; and be allocated a

share; and have their qualifications recognised.

32. Employer Nomination Scheme (ENS): Expected outcome

1987/88 : 9,000; Program 1988/89 : 10,000. 33. The Scheme is designed to enable Australian employers

to seek highly skilled workers overseas when they have been

unable to fill their needs from the Australian labour market

or through their own training efforts. The Scheme will be

administered flexibly to ensure employers' genuine needs are

met. Applicants must be under 55 years of age; and be

nominated by an Australian employer; and have qualifications

and experience to match the advertised position.

34. Within the ENS, the concept of industry-wide negotiated

arrangements has been developed. Under these arrangements,

a 'share' or ceiling is allocated for a defined set of

occupations, but in contrast to OSS, the share is 'demand

driven' - that is, it is activated by employers seeking to

recruit from overseas under the ENS. Streamlined

administrative arrangements apply to the handling of

employer nominations lodged under such arrangements. In

particular, the usual requirements for labour-market testing

do not apply, as these matters are tested when arrangements

are negotiated.

35. Business Migration Program: Estimated outcome 1987/88

: 8,000; Program 1988/89 : 12,000.

36 Applicants must have a successful business bqckground

and intend to settle permanently in Australia and contribute

their expertise and capital to ventures that will benefit

Australia.

37. Independent and Concessional (I & C) Migration:

Expected outcome 1987/88 : 49,500; Program 1988/89 : 45,500.

38. This category aims to select young, skilled, educated

applicants who will make an early economic contribution

through easy transition to the workforce. Applicants are


[14]


12 ATTACHMENT A

assessed against a points system comprising factors of

employability, skills, education and age. Applicants may

score the maximum of 25 points for the employability factor,

if they are skilled in an occupation listed in the

"Designated Occupations List" which is revised periodically.

The maximum points available for each factor are as follows,

figures in brackets are lower scores available depending on

the individual circumstances of applicants:Employability

25 (20, 15, 5, O); Skills 20 (10, O); Education 20 (15, 10,

0); and Age 15 (10, 0).

39. Concessional points are awarded as follows:

(a) 10 points for sponsorship by a resident of Australia of

two years standing for non-dependent children, brothers and

sisters; and

(b) 5 points for sponsorship by a resident of Australia of

two years standing for nephews and nieces.

5 bonus points are available if the sponsor is an Australian

citizen.

40. The former selection mechanism for the I & C

categories, based on a fixed pass mark of 70, is replaced by

a flexible selection system which emphasises those scoring

highest overall and performing strongly on the employability

factor. Selection will target applicants scoring 80 or more

overall, or 75 overall and 25 on employability. Applicants

scoring less than 75, except those scoring 70 and 25 on

employability, will be rejected, while remaining

applications may be considered subject to the number of

available places.

41. Special Migration: Expected outcome 1987/88 : 1,500;

Program 1988/89 : 1,500.

42. Allows migration of applicants not eligible in other

categories where there is a social need or economic or

cultural benefit to Australia and comprises the following

elements: Trans Tasman Travel Arrangement for spouses and

dependents of migrating New Zealand citizens, who are

themselves not New Zealand citizens, (New Zealand citizens


[15]


13 . ATTACHMENT A

are exempt from visa requirements); self-supporting

retirees; special creative or sporting talents; former

Australian citizens and residents; and special abilities,

for those not eligible elsewhere but who have outstanding

abilities of obvious benefit to Australia.

43. Grant of Resident Status: Expected outcome 1987/88

11,800; Program 1988/89 : 14,000.

44. Allows for people temporarily in Australia to be

granted permission to reside permanently where the legal

requirements of the Migration Act (S6A(l)) and policy

requirements are met. Eligibility is for: spouses

(including de facto, dependent children and aged parents);

Ministerially recognised territorial asylees or refugees;

people who hold valid temporary entry permits, who are

authorised to work and whose continued stay would be

economically beneficial to Australia; and holders of valid

temporary entry permits who can demonstrate strong

compassionate or humanitarian reasons for remaining.


[16]


MIGRATION PROGRAM

Category

Family

Refugees &SHP

Contingency

Open Economic

oss ENS

BMP

Independent

Conce·ssional

14

'000 PERSONS

1987/88

Program

33

12

2(a)

8

9

3.5

1 42 J

Special Eligibility 1.5

Total Visas 109

GORS 11

TOTAL 120

Estimated

Outcome

33

11.2

8

9

8

13

,jQ.J

1.5

120.2

11.8

132 (b)

(a) Not included in 1987/88 program total.

ATTACHMENT B

1988/89

Proposed

Program

35

12

2

8

10

12

22.5

23

1.5

126

14

140

(b) Includes increase of 12,000 agreed for 1987/88 program at end

March.


[17]

CABINET-IN-CONFIDENCE ATTACHMENT C

15

REFUGEE AND SPECIAL HUMANITARIAN PROGRAM

1. The humanitarian program has two components: refugee

places and Special Humanitarian places (SHP). Refugee

entry is governed by our international commitments. The

SHP is a creation of our own humanitarian policies.

Program levels in recent years have been at the 12,000

mark (with an additional 2,000 places held in a

contingency reserve).

2. As noted in the body of the submission, CAAIP may

recommend an increase in humanitarian intake to 15,000.

Its position on maintaining a contingency reserve is

unclear at this time, but the 15,000 figure appears to

include ~~th the reserve and those cases granted

humanitarian entry while in Australia. It may prove

difficult to find sufficient numbers of deserving cases

to fill a program of 15,000, but it could be possible to

accomodate the increase if the program level were seen as

an absolute ceiling rather than an immutable target.

3. In advance of CAAIP no increase is requested. The

suggested program of 12,000 plus a 2,000 contingency

reserve essentially maintains the intake at similar

levels as in recent years. This is reasonable given

international resettlement demand and expected results in

1987/88. The figure should be regarded as a ceiling.

Grant of Residence cases remain separate from the

program.

4. In pursuit of our broader policy objectives, I believe we

must continue our gradual disengagement in the

resettlement of Indochinese. This recognises that the

majority of people leaving Vietnam today do not have

valid refugee claims. Furthermore, our efforts to


[18]


16 ATTACHMENT C

overcome obstacles in our family migration from Vietnam

are now beginning to show success and we should expect

increased numbers under this program during the course of

the coming program year. We have consistently argued

that normal migration through this channel is preferrable

to irregular boat departure from Vietnam.

5. In the 1987/88 program, some 5,900 places have been

allocated to Indochinese. I would wish to see this

reduced to 5,200 in 1988/89. I also wish to see a larger

proportion of Indochinese accepted under the Special

Humanitarian Program and not taken as refugees. By

reducing the refugee component of the Indochinese

program, the way will be cleared for further

disengagement in coming years. This is a key element of

6. In other areas of the world, a general stabilizing trend

in refugee movements is evident. The situation in

Central America, however, remains volatile. In-country

programs from El Salvador and Chile remain necessary,

though I believe we can terminate the special in-country

program for Poles, just as special provisions for

Lebanese and Sri Lankans were terminated in 1987/88.

Deserving cases will continue to receive consideration,

of course. In Eastern Europe we should expect new

caseloads, largely as a result of increased numbers of

people leaving the Soviet Union (eg Soviet Jews).


[19]


17 ATTACHMENT C

7. Though overall program numbers are not varied in 1988/89,

I propose that there be scope to reduce the refugee

component by up to 1000 places (or approximately 10 per

cent of the total program) and to transfer such places to

the SHP component. During the current program year, my

predecessor obtained Cabinet approval for this

flexibility to a level of 20 per cent for the Indochinese

portion of the program. This submission therefore is for

a funded component of some 7,000 out of 12,000 places,

similar to 1987/88, but presents 1,000 of these places as

notionally flexible. I see this flexibility as crucial

to allow a proper response to developments in the field

during the course of the program year. To maintain the

integrity of our humanitarian programs, it is important

that persons are selected under the categories which most

correctly · reflect i:.i1~ ucttu.ce uf Li1eir human ri1::1i1i..S

claims.

8. This proposed refugee/SHP flexibility has implications

for the way funds for travel assistance are applied. I

do not propose a reduction to the overall funds available

under the travel assistance vote. In 1987/88 this vote

stood at some $6.5 m, having been severely reduced in

1986/87, and currently provides travel assistance only to

persons accepted as refugees or under in-country SHP

programs. As was indicated last year, this created

hardship for many of those accepted by Australia under

the (unfunded) global SHP category. It is at the very

least necessary that Australia ensures persons accepted

on humanitarian grounds and requiring money for travel

have access to a loan on favourable terms.


[20]


18 ATTACHMENT C

9. The Intergovernmental Committee for Migration (ICM) is

well placed to provide interest free loans, and many

persons migrating to Australia already turn to ICM

funds. Any reduction in the number of funded places will

increase the pressure on ICM to provide soft loans. I

propose, therefore, that the purpose of the travel

assistance vote be broadened to permit, as appropriate,

the direction of a proportion of the funds to ICM,

earmarked specifically for travel loan assistance, should

the number of unfunded entrants increase. ICM has

previously sought an Australian contribution to its loan

funds precisely to ensure its capacity to provide soft

loans to migrants continues.


[21]

CABINET -IN-CONFIDENCE 19 ATTACHMENT C

PLANNED REFUGEE/SHP PROGRAM: DETAILED BREAKDOWN

( i) 1987/88 funded unfunded total anticipated ref/SHP SHP program outcome

(pro rata)

Indochinese 3,820 2,080 S,900 6,210 Eastern Europeans 1,100 900 2,000 2,166 Middle Easterners soo 1,100 1,600 1,066 Latin Americans 1,22S sso 1,77S l,S7S Africans lSO so 200 120 Others 25 170 19S 43 Unallocated 330 330 20

1987/88 TOTAL 6,820 S,l80 12,000 11,200 (plus 2,000 contingency reserve)

(ii) 1988/89 funded possible unfunded total ref/SHP funding SHP program

margin

Indochinese 2,800 400 2,000 5,200 Eastern Europeans 900 100 1,300 2,300 Middle Easterners 500 1,100 1,600 Latin Americans l,SOO 200 300 2,000 Africans lSO so 200 Others so so 100 Unallocated 100 300 200 600

1988/89 PROPOSED 6,000 1,000 s,ooo 12,000 (plus 2,000 contingency reserve)

CABINET .. IN-CONFIDENCE

[22]

20 ATTACHMENT D

INDEPENDENT AND CONCESSIONAL CATEGORY

1. The Government announced on 6 April that because of the

strong increase in interest in migration to Australia the

program for 1987/88 was to be increased by 12,000 to 132,000.

Of this increase 7,500 is for the I & C category where

applications under active consideration (the pipeline> have been

increasing rapidly.

2. In the I & C category <non-dependent children, brothers,

sisters, nephews and nieces and independent applicants) the

pipeline <comprised of about half Independent and half

Concessionals) is llk.~.i..y i..u :u~ ctLuui.. 1..;2, 000 by e:L ,~ June 1988,

growing to about 217,000 by June 1989 after allowing for an I &

C visa issue program in 1988/89 of 45,500. Under existing

policy <applying just a 70 points pass mark> and allowing for

normal attrition rates, it is estimated that another 143,000

would normally have been eligible for visas. Unless these

applicants are rejected they would represent a substantial visa

queue that would take at least two years to clear.

3. In the meantime processing of applications not already at

preliminary approval stage has been suspended except for those

scoring the maximum points <25/25> under the employability

factor and who also achieve the current pass mark <70) under the

points test. These applicants have a high employability

profile and accord with the Designated Occupations listed on the

advice of the Department of Employment, Education and Training.

4. About 70 per cent of the I & C pipeline could be

expected to be visaed under the existing 70 points pass mark.

Under the option supported in the Cabinet Submission

Independents and Concessionals who would be visaed would each

make up about 9 per cent of the pipeline whilst the alternative

option would yield about 13 per cent and 5 per cent

respectively.


[23]

ATTACHMENT D 21

5. There are significant differences in the profiles of the

Independent and Concessional components. Independents receive

no concessional points and have to score highly on all factors

to reach the 70 points pass mark (they can score a maximum of

80). Consequently those selected are generally young,

educated, skilled and assessed as of high employability in areas

most needed by the labour market. As Figure 1 shows, their

skill profile is on a par with Skilled Labour and Employer

Nominee categories. They are persons with the potential to

make the greatest economic contribution to Australia. Table 1

highlights the difference in occupational structure of the two

components.

6. Concessional applicants are generally less skilled and are

advantaged considerably in selection by the allocation of from 5

to 15 additional points, on the basis of the kinship

relationship with and the citizenship of the sponsor.

Concessionals thus have a maximum of from 85 to 95 points

available to them, depending on the sub-category. They have

required the same 70 points pass mark as Independents. Because

of the direct links with Australia via sponsors there are

significant ethnic community interests in this component.

7. Persons visaed by source country under the Independent

category are shown at Table 2, under the Concessio~al categories

shown at Table 3 and for I & C shown at Table 4. Table 3

indicates the source countries most likely to be directly

affected by a heavy curtailment of concessional visas. Some of

these countries <UK, Malaysia, Hong Kong> also supply

significant numbers of Independent migrants. Others

<Phillipines, Lebanon, Yugoslavia, South Africa, Fiji, India,

Chile, Egypt> provide relatively few Independent migrants and

will therefore experience a disproportionately heavy decline in

acceptances under the transitional arrangements proposed.

CABINET -IN-CON Fl 0 EN CE

[24]

)


22 ATTACHMENT D

Table 1: Proportion of I & C Principal Applicants scoring 70 or

more points by occupation

Occupation Independent Concessional % %

Professional, technical, skilled <a> 86.2 29.8 Clerical, administrative 5.8 32.5 Semi-skilled 0.7 26.4 Other 7.3 11.3

Total 100.0 100.0

<a> Includes those classified as professional, technical and related workers, medical and para medical, engineering and Qc~~uc~ , 0us~ness and c~rr~erce, other professionals, skilled building, metal and electrical and other skilled.

 Includes clerical, commercial and administrative workers (e.g. clerks, typists, stenos, receptionists, sales people and non-professional managers).

Source: Department of Immigration, Local Government and Ethnic Affairs <DILGEA), Migration Program Management System (MPMS> based on worker codes of principal applicants processed between July 1986 and October 1987.


[25]

23 ATTACHMENT D

Table 2: Independent Category - Persons visaed by Source Country

COUNTRY/POST 1986-87 1987-88 (Jul-Jan>

Number Per cent Number Per cent

UNITED KINGDOM 2,859 61.0 3,530 44.6 HONG KONG 211 4.5 542 6.8 MALAYSIA 79 1.7 408 5.2 IRELAND 220 4.7 405 5.1 DENMARK 129 2.8 220 2.8 U.S.A. 136 2.9 217 2.7 BRUNEI <a> 173 2.2 SINGAPORE (a> 157 2.0 PORTUGAL 103 2.2 153 1.9 GREECE (a> 134 1.7 SWEDEN \a J 115 1.5 SOUTH AFRICA 70 1.5 110 1.4 GERMANY, WEST <a> 110 1.4 MAURITIUS <a> 110 1.4 THAILAND <a> 110 1.4 SRI LANKA (a> 107 1.4 CANADA <a> 102 1.3

OTHER 800 18.8 1,214 15.3

TOTAL 4,687 100.0 7,917 100.0

<a> Less than 1.25% included in 'other'

(Source: DILGEA Migration Program Management System>


[26]

)

)


ATTACHMENT D

24

Table 3: Concessional Categories - Persons Visaed by Source Country

COUNTRY/POST 1985-86 (a> 1986-87 1987-88 (Jul-Jan>

Number Per cent Number Per cent Number Per cent

PHILIPPINES 1,049 3.5 2,792 8.0 4,428 17.5 UNIT~D KINGDOM 6,278 21.1 7,842 22.5 3,903 15.4 MALAYSIA 972 3.3 1,701 4.9 1,230 4.9 MAURITIUS (b) 1,607 4.6 1.186 4.7 LEBANON (c) 854 2.9 779 2.2 1,104 4.4 HONG KONG 2,213 7.4 1,254 3.6 1,079 4.3 YUGOSLAVIA 1,123 3.8 1,830 5.3 1,065 4.2 SOUTH AFRICA 1,844 6.2 1,903 5.5 1,048 4.1 FIJI (b) (b) 850 3.4 INDIA 1,145 3.8 1,075 3.1 664 2.6 CIIILE 1,169 .. 3. 9 1,006 :.:::.~ bjl 2.5 EGYPT (b) (b) 619 2.4 SINGAPORE (b) 1,020 2.9 619 2.4 SRI LANKA 991 3.3 1,398 4.0 590 2.3 VIETNAM (b) 896 2.6 (b) CHINA 739 2.5 (b) (b) KOREA, SOUTH 699 2.3 (b) (b) ARGENTINA 691 2.3 (b) (b) CANADA 687 2.3 (b) (b) PORTUGAL 619 2.1 (b) (b)

OTHER 8,718 29.3 9,688 27.8 6,329 25.0

TOTAL 29,791 100.0 34,791 100.0 25,345 100.0

(a) Excludes Nephews & Nieces sub-category which was opened from 1 July 1986.

 Less than 2% included in 'other'

(C) Processed through Damascus

<Source: DILGEA Migration Program Management System>


[27]

25

ATTACHMENT D

Table 4: Independent & Concessional Category - Persons Visaed by Source Country

NOTE: For 1985/86, excludes Independent and Nephews & Nieces sub-categories which were opened from 1 July 1986.

 Less than 2% included in 'other'

<c> Processed through Damascus

<Source: DILGEA, Migration Program Management System>


[28]


26 ATTACHMENT D

FIGURE 1·

Skill Level of Intake by Eligibility Category - 1986-87

% SKILLED(A)

501 40i 30

20

10

0 Famil~ Non Broth Neph Indep OSS EHS Busin Ref NZ cits

dep -ers -ews -ess chldn Sist Nie

-ers -ces

(A) Prof,tech and skilled trades. Excludes stenographers, clerks and t~pist~ (All persons, not just principal applicants )

Source: DILGER, Movements Data Base.


[29]


27 ATTACHMENT E

NEW ZEALAND CITIZEN PERMANENT ARRIVALS

Year ended 30 June No.

1979 11,668

1980 14,275

1981 19,102

1982 12,923

1983 7,789

1984 6,640

1985 10,601

1986 15,185

1987 15,923

1988 16,000(a)

1989 16,000(a)

(a) Estimate.

SOURCE: Department of Immigration, Local Government and

Ethnic Affairs, Australian Immigration Consolidated

Statistics and unpublished figures.

CABINET -IN-CON Fl DEN CE

[30]


28 ATTACHMENT F

PERMANENT DEPARTURES FROM AUSTRALIA

1. On an annual basis the number of permanent departures has

fluctuated in recent years. Numbers peaked at 44,900 in 1972/73 but

have generally declined since then (figure 1). Over the last 10

years numbers have fluctuated around 20,000. In 1986/87 they

numbered 19,930 and estimates for 1987/88 are about the same.

Figure 1.

Permanent departures,

Australia, rooo, 1961-87

Sources: Department of

Immigration and Ethnic affairs.

Australian Immigration

Consolidated Statistics No. 13.

1982and UIIIJUUiiShed

statistics. and Australian Bureau of Statistics. Austalian

Demographic Statistics.

September Quarter 1986.

1961 1966 1971 1976

YeJr ended JO June

1981

Other resident departures

Former selller departures

1987

2. Permanent departures are made up of former settlers and other

residents (primarily Australian-born). There is a relationship

between settler arrivals and former settlers departing: since the

1960s the latter have generally been between 15% and 20% of the

former two to three years previously. In recent years the lag

between arrival and departure has shortened to two years while the

departure rate has dropped from 19.5% in 1978/79 to· about 14% in

1986/87. This can be attributed to the changing composition of the

intake.


[31]


29 ATTACHMENT F

3. Rates of return migration vary markedly by birthplace group and

policy category. Lowest return rates are of people from Asia and in

the refugee category. Assuming a refugee intake of 12,000 and no

significant change to the birthplace composition of the intake, the

departure rate is estimated to be 15.5% in 1988/89. This, combined

with the increase in settler arrivals in recent years, is expected

to result in an increase in permanent departures to about 24,400 in

1988/89.

4. Given these trends, the gain to Australia from net permanent

migration is somewhat less than the intake figure. In 1986/87 net

permanent gain was 103,717, representing the continuation of the

rise in net gain from 55,501 in 1983/84. In 1987/88 net permanent

gain is estimated at 128,000 with a further increase to 130,000 in

1988/89 assuming a total program figure of 140,000. These figures

include Grant of Resident Status approvals and net permanent gain

from New Zealaw.l L:.J..L..J..~eu Htuvt=uu:::ui...


[32]


30

ATTACHMENT G

CO-ORDINATION COMMENTS

Department of Employment, Education and Training

1. The Department of Employment, Education and Training notes the

transitional nature of the proposed 1988/89 program and generally

agrees with the approach taken.

2. In relation to the two options presented for the Independent

and Concessional (I&C) category, option (a) would be preferable on

labour market grounds, but the Department recognises the likelihood

of strong community reaction if that option were accepted. However,

option (b) would also result in a significant increase in the

economic contribution of the I&C category compared to that of recent

years, and is therefore supported. At the same time, the Department

considers the increasing emphasis on economic migration should also

be accompanied by measures to increase domes~1c ~raining activity.

The Department agrees with the retention of the Employer Nomination

Scheme and the Occupational Shares System as separate categories

within the program, pending the consideration of the CAAIP report.

3. The Department notes the principal justification for the

increase in the overall program figure to 140,000 immigrants would

appear to be largely based on the need to clear the existing

backlog, and does not provide a guide to the ongoing program size.

It also notes with some concern the suggestion in paragraph 14(c)

that program levels in 1988/89 may not be controlled unless

additional computer resources are provided.

Treasury

4. Treasury supports the thrust of the Submission, noting the

intention to maintain program flexibility (essential to a program

which provides greater emphasis to economic considerations) by the

retention of separate ENS and Business Migration Program categories.

Resources should, however not be allocated for computers or other

resources in anticipation of Government approval of CAAIP

recommendations. Such proposals, in any case, require Expenditure

Review Committee considerations.


[33]


31 ATTACHMENT G

Department of Industry, Technology and Commerce

5. The Department of Industry, Technology and Commerce considers

that a higher intake to take advantage of the upsurge in the

popularity of Australia with independent, skilled or business

applicants would be preferable.

6. The Department also favours option (a) in paragraph 13 (ie a

higher proportion of independents in the Independent and

Concessional category) to more closely align the Migration Program

with economic policies and the need to improve the skills base of

the Australian workforce.

Department of Industrial Relations

7. The Department of Industrial Relations supports an increased

GC~~~~ic focus in the ~igration program by emphasising y~~~;,

skilled and entrepreneurial migrants. The Department considers

however, that the program should be matched by an increased domestic

training effort by industry (through mechanisms such as negotiated

agreements) to ensure the current migrant intake is not

unnecessarily maintained over the longer term. Given the proposed

expansion of the migration program, it is desirable that

consultation take place at an early stage with unions and employers

to ensure that the desired level of co-operation is achieved in

implementing the program and measures arising from CAAIP.

Department of Administrative Services

8. The Department of Administrative Services has· no comment on the

basis of the Department of Immigration, Local Government and Ethnic

Affairs' undertaking to locate additional staff so as not to incur

any significant office accommodation costs.

Department of Finance

9. The Department of Finance questions the need for decisions to

be taken on this Submission ahead of the Budget new policy process,

noting that the figuring in the forward estimates (125,000 intake in


[34]

.)


32

ATTACHMENT G

1988/89) and the recent decision for 1987/88 (132,000) provides

sufficient information for general planning purposes at this stage.

If, however, Ministers wish to take a decision now, Finance

considers that any additional resources should be treated as a first

charge on the portfolio's new policy allocation and that there

should be a clear expectation that offsetting savings will be

expected in that context. This should apply also to any resource

implications for the Review function foreshadowed in the Submission.

10. In relation to the size of the immigration program, Finance

does not accept that there is a clear case that an increase will

reduce calls on the budget over time; indeed, Finance is concerned

that an increase runs the risk of increasing calls on the budget in

the short term and increasing domestic demand when macro-economic

concerns require the opposite. The composition of the intake is of

greatest importance in both the short and longer term; in this

regard, FiD.u.u.::.s: .::c::.::;i.d.c:LS tt.~t , in line ~·7i -+:h option (a) , a stronger

emphasis should be given to economic migration by selecting only

those migrants in the Concessional category achieving highest scores

on the employability criterion.

11. Finance considers that a lower target than the proposed 140,000

should be set, but accepts that there may be a case for a small

increase in the level of the migration intake in 1988/89 (only) to

accommodate the backlog that has developed. It is concerned that

steps be taken to ensure that demand is managed so that the program

does not blow-out as has happened in each of the last two years. It

also considers that consideration should be given to substantially

increasing the level of migration fees to provide an improved

rationing device, and to offset cost pressures. Iri particular,

Finance considers that the increase in post-arrival services costs

should be met from increased revenue.

12. With regard to the additional funds sought for computer

systems, Finance considers that agreement to the proposal should be

subject to the identification of offsetting productivity gains

(savings).


[35]

CABINET -IN-CONFIDENCE 33

ATTACHMENT G

Attorney-General's Department

13. No comment.

Department of Prime Minister and Cabinet

14. The Department of Prime Minister and Cabinet, including the

Office of Multicultural Affairs, agrees with a 1988/89 migration

program of 140,000 and has no objection to the broad thrust of the

Submission about the appropriate balance between family reunion,

refugee and humanitarian and other categories. The Department

considers, however, that some recommendations are too pre-emptive of

the eventual outcome of the CAAIP report. In particular, the

Department considers that recommendations (c) in relation to the

creation of a new catch-all economic category, and (d) involve

potentially controversial matters on which the Government's respr

to CAAIP should not be pre - judged. The Dcp~rtment of Pri~e Min~sL~

and Cabinet notes that most of the Department of Immigration, Local

Government and Ethnic Affairs' request for additional resources

(recommendation (h)) is based on an assumption about the outcome of

CAAIP. The Department considers that such resource questions cannot

be addressed until the Government's position on CAAIP has been

decided. It is recognised, however, that resource implications

flowing from an increased program do need to be addressed at that

time.

Department of Foreign Affairs and Trade

15. The Department of Foreign Affairs and Trade (DFAT) supports the

recommendations but notes that the compromise in relation to the

Independent and Concessional category will entail attendant domestic

financial cost. With regard to recommendation 15(h), DFAT is

concerned that costs incurred by this portfolio on behalf of the

Department of Immigration, Local Government and Ethnic Affairs'

(DILGEA) Australia-based staff posted overseas are not addressed.

Specifically, the Department is concerned about provision of the

cost of utilities at officers' residences and additional costs of

office services, including equipment, stationery and telephones. In


[36]

.. CABINET -IN-CONFIDENCE

34

ATTACHMENT G

the absence of details about intended distribution of additional

staff, DFAT reserves its position in relation to possible additional

resources resulting from the proposed program's impact on individual

posts. Furthermore, DFAT is concerned about the possible effect

program changes may have on the work done at the posts where DILGEA

is not represented. Provision of additional Locally Engaged Staff

resources may be required if workloads increase.

16. The need for computing equipment and software at posts and for

international communications facilities is the subject of an

imminent review by the Information Exchange Steering Committee.

Issues relating to the compatibility of systems, provision of

communication and the disposition of existing DILGEA computers

should be considered by that review.


[37]

1988-89 cabinet paper 5790

Documents

Transcript of 1988-89 cabinet paper 5790