Focusing on the opportunities and challenges ahead

The recent Horticulture and RSE conferences in Wellington was a real highlight, bringing growers, industry leaders, government, researchers and partners together to focus on the opportunities and challenges ahead for our sector.

There was strong engagement and a clear sense of shared ambition -- from discussions on innovation, trade and workforce to the importance of sustainability and resilience. It was great to see the sector’s optimism and determination on full display.

The Government’s decision to allow only a 2.5 per cent increase in Recognised Seasonal Employer (RSE) accommodation cost recovery was certainly a topic of discussion.

From 18 August, RSE employers are permitted to lift weekly accommodation charges for workers by this limited amount to “reflect rising costs.”

But after a six-year freeze, the change falls well short of the reality.

HortNZ has been clear that the modest increase is disappointing and risks undermining the Government’s own ambitions for horticulture growth.

Growers will know construction, operational and compliance costs have increased dramatically over that period, and the new settings bear little resemblance to the real cost of providing safe, high-quality housing.

HortNZ has met with Immigration Minister Erica Stanford to discuss the issue and the Minister also explained the decision to attendees at the conference.

We’re encouraged by the Minister’s comments that the increase is an interim measure, not a permanent change.

She told conference delegates that the Ministry of Business, Innovation and Employment (MBIE) is working closely with industry and Pacific representatives to develop a permanent, fair, and transparent accommodation cost methodology.

This framework will aim to balance the realities of seasonal work, support both employers and workers, and ensure the ongoing sustainability of the RSE scheme.

We believe any future adjustments must be based on transparent and verifiable cost data. Independent analysis from Infometrics shows what a fair, evidence-based accommodation rate looks like --taking into account regional variations, while ensuring worker contributions remain reasonable at no more than 30 per cent of income.

The horticulture sector has an ambitious target to double farmgate value. Alongside this, the Government has set its own bold goal of doubling horticulture export values by 2034.

But none of this will be possible without the people to pick, pack and process our produce, and growers cannot secure that workforce without fair and sustainable accommodation cost recovery.

The RSE scheme has been a success story for nearly two decades, built on mutual benefit: essential seasonal labour for New Zealand growers and valuable income opportunities for Pacific communities.

At HortNZ, we know growers take their responsibilities to workers seriously, investing in pastoral care and support to ensure welfare is always prioritised.

With the Government making it clear it will not tolerate poor employment practices or employers failing to meet standards, we must continue to uphold our obligations and hold ourselves accountable.

A key part of that commitment is safe, good-quality housing. Many growers have lifted standards significantly in recent years, but the strain of doing so without cost recovery is becoming unsustainable.

To continue building trust and delivering on shared values, the sector has also supported new initiatives such as Whānau Moana Nui -- “family of the Pacific.” This pilot programme aims to set a world-class benchmark for industry-led, government-enabled labour mobility.

Growers want to do the right thing by their workers. But goodwill and commitment alone cannot bridge the gap when the economics don’t stack up.

If New Zealand is serious about growing horticulture and protecting the integrity of the RSE scheme, we need policy settings that are fair, future-proofed and sustainable, for employers, for workers, and for the long-term success of the sector.