23 Mar 2021

New govt scheme offers RSE workers cheap way to send money home

11:35 am on 23 March 2021

Pacific horticultural workers will have a safe and cheap way to send money home under a new government scheme.

Pacific Islander diong seasonal work under the RSE scheme in Hawke's Bay.

Pacific Islander diong seasonal work under the RSE scheme in Hawke's Bay. Photo: RNZ / Johnny Blades

The project follows a remittances and superannuation pilot last year and an earlier study that suggested RSE (recognised seasonal employer) workers paid about $400 a season in transaction fees and changes.

Immigration New Zealand (INZ) and the Ministry of Foreign Affairs ran the pilot with private financial services provider Apello Services.

The pilot found the new platform was easy to use and cheaper than traditional wire services.

"It has been decided the scheme will be rolled out to all RSE workers in New Zealand," said INZ. "The new approach provides a safe and secure pathway for workers to make voluntary superannuation contributions and send money home in a way that is convenient and cheap. It is also compliant with New Zealand's obligations under anti-money laundering laws."

An earlier study showed workers on average sent home 42 percent of their total take-home income, as cash transactions three times a month.

They could expect to pay between $330 and $440 in total remittance transaction fees and charges over the season. The study also highlighted security issues.

"Of particular concern is the way large groups of RSE workers, up to 70 van loads at a time, congregate on payday at the premises of their local MTO (money transfer) agent. Given that each worker is holding several hundred dollars in cash, this practice poses a significant risk to workers and MTO agents."

Research on RSE in the horticulture and viticulture industries shows a Samoan worker's income supports more than 10 people on average in their home country.

The maximum number of RSE workers each year rose from 5,000 when the scheme was established in 2007, to 14,400 now.

Workers from Fiji, Nauru, Papua New Guinea, Samoa, Solomon Islands, Tonga and Vanuatu can stay up to seven months during any 11-month period, and those from Kiribati and Tuvalu up to nine months because of the cost of travel.

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