The former Labour government’s overhauled business migration program saw a 90 percent fall in visa grants to business migrants due to unrealistic criteria. A joint parliamentary inquiry, essentially set up to study the failure of Business Innovation and Investment Program (BIIP),  and make recommendations,  has heard the program is “plagued by slow processing, unpredictable outcomes and selection criteria that deter good candidates in a search for ideal, younger migrants”.

The Australian reports that only 652 visas were granted over the first 21 months of the BIIP scheme, since its introduction in 2012.  That compares with 6790 in the final year of the system it ­replaced, the Business Skills ­Program. The department, in its submission to the inquiry, indicated the plunge in applicants “will make it increasingly difficult to maintain the number of business migrants as a proportion of the overall permanent migration program”.

“While there are sufficient ­applications under the previous business skills program to guarantee the 2013-14 program, the application rate may put the delivery of the 2014-15 program in question,” the submission read.

Sydney legal firm Immigration Solutions Lawyers, in its submission, blamed the “enormous decline” in applicants to “overly onerous” selection criteria that strive for an unrealistic ideal.

“A desirable candidate is someone between 35-39 years of age with a business turnover that is not under $1 million, with at least four years business experience and who has $1.3m in assets,” it read. “However, such a candidate would be unlikely to elect Australia due to heavy government regulation, taxation, and it being a relatively small market on the very outskirts of the Pacific Rim.”

The “venture capital entrepreneur” stream — for migrants who have secured $1m from a local firm and have the endorsement of a state or territory government — has attracted only one applicant since July 2012. That person was not successful as of March 31.

Migration specialist lawyer, Christopher Levingston, argued mainland Chinese applicants were deterred by possible information sharing between the department and communist law enforcement. “Candidates correctly believe (the department) sharing information with (China) is not only a breach of privacy but also places at risk persons who might be considering migration to Australia in order to spread the risk of having to operate a business in a totalitarian regime.”

Brisbane lawyer Dolf Van Zyl said in a submission “the current program is a dismal failure and not reaching any objects whatsoever”.

“The BIIP program makes a negligible contribution to the generation of economic growth and drastic changes need to be made to the program.’’