Government decision on RSE accommodation charges disappointing

The Government’s decision to approve only a 2.5 per cent increase in Recognised Seasonal Employer (RSE) accommodation cost recovery directly undermines its own ambition to double export values by 2034 and the horticulture sector’s goal to double farmgate value.

 

“New Zealand’s horticulture sector can’t grow exports without the labour to pick, pack and process our produce, and you can’t secure that labour without fair and sustainable cost recovery for accommodation,” says Kate Scott, chief executive of Horticulture New Zealand (HortNZ).

 

“Accommodation charges have been frozen for six years, while it’s no secret that construction, operational and compliance costs have soared.

 

“Many growers have invested significantly in lifting standards, and they are committed to ensuring workers are housed safely. That commitment now comes under increased financial strain.”

 

Independent economic analysis from Infometrics has determined a fair and evidence-based accommodation rate, says Scott.

 

“The Infometrics analysis took into account real-world costs across regions, as well as the need to keep contributions from workers reasonable, typically no more than 30 per cent of their income.

 

“We 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, she says.

 

“To protect that success, we need settings that are fair, future-proofed and sustainable for both employers and workers.

 

“To further strengthen the scheme, we’ve helped establish Whānau Moana Nui, meaning ‘family of the Pacific’.

 

“This pilot initiative is designed to set a world-class benchmark for industry-led, government-enabled labour mobility that reflects our shared values.

 

“That means doing right by our workers, fostering mutual respect and meeting the expectations of consumers and trading partners.”