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A user-pays proposal to charge an ¡°immigration levy¡± from New Zealand educational institutions risks costing the country far more than it raises, universities have warned. ?

The government is considering extending the levy, which currently only applies to visa applicants, to groups that ¡°benefit¡± from the immigration system ¨C including universities and over 100 other educational institutions with international enrolments.

¡°This would more accurately reflect the immigration system user base and be consistent with the principle that those who benefit from the service, or create the risk or need for the service, should bear the cost,¡± says a from the Ministry of Business, Innovation and Employment.

¡°Education providers¡­financially benefit from the immigration system by tapping into¡­students who are generally charged high[er] fees than domestic students. [Institutions] also enjoy the benefits of migrant attraction activities and access to licensed immigration advisors to help with ¡®recruiting¡¯ foreign students.¡±

The New Zealand proposal appears significantly smaller in scale than the UK¡¯s mooted levy, which could divert as much as 6 per cent of international tuition fee earnings to help cover government expenditure on tertiary education.

Nevertheless, Universities New Zealand warned that the idea could undermine education exports that contribute billions of dollars to the Kiwi economy.

Chief executive Chris Whelan said universities had enrolled 10 per cent fewer foreigners than expected after student visa fees were doubled to NZ$750 (?331) last October. Whelan warned that demand could decline again if universities found themselves forced to pass on the costs of a new levy to students.

He said overseas students had ¡°choices¡± about where to study, and cost was a ¡°particularly important factor for many¡±.

Whelan said each international student spent NZ$58,000 a year in New Zealand, on average, including NZ$22,000 on expenses like accommodation, food and entertainment. A 10 per cent decline in demand would cost the country some NZ$120 million over the duration of a typical university degree, he estimated.

Would-be students already pay the NZ$265 immigration levy on top of the NZ$750 visa application fee. Some also incur a NZ$100 conservation and tourism levy. Universities are required to pay the government 0.5 per cent of their international education earnings through a mandatory Export Education Levy.

john.ross@timeshighereducation.com