English proficiency requirements 'could harm businesses'

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Created on Friday, 01 June 2012 14:50

Written by Editorial staff

The requirement for wealthy businesspeople to have a firm grasp of the English language is not as important as the authorities would have others think, the Northern Territory government has indicated.

Under plans announced by minister for immigration and citizenship Chris Bowen last week (May 25), a new visa program is being introduced to attract successful investors and entrepreneurs to Australia.

The Significant Investor visa is designed to entice those who can make a minimum investment of $5 million in the Australian economy, a process that migration consultants will be able to assist with.

It was presented by the Department of Immigration and Citizenship as a means of helping to boost the economy and improve Australia's competitiveness in attracting investment immigration.

However, the Northern Territory government has questioned the need for a strong English proficiency requirement, saying that even those without a solid grasp of the language can make a valid contribution, reports The Australian.

It has consequently made a submission to former Treasury secretary Ken Henry's review into how Australia engages with Asia, saying that the requirement has the potential to bring "significant negative impacts on business investment from Asian countries.".

Australia prides itself on its trade ties with Asia, so adding this condition to the visa could do some damage to those relationships.

The submission read: "Genuine business people who do not have English skills will engage professional advisers and interpreters to assist them."

A spokesperson for the NT government was keen to point out that there was no immediate objection to English language proficiency being part of the points system used during the visa application process.

However, it needs to be adopted in a way that does not potentially disadvantage business migrants who could bring real advantages to Australia and its economy.

Mr Bowen indicated when he announced the Significant Investor visa that it should make it easier for investors coming to Australia for business purposes, as some of the usual concessions have been removed.

For example, applicants will not face points testing and will benefit from reduced residence requirements, which he said would be in recognition of their "meaningful investment contribution."

Minister for financial services and superannuation Bill Shorten added his support to the initiative, saying: "This creates a new source of investment capital and increases the pool of funds managed locally."

"This is good for jobs and growth in areas such as financial planning, fund administration, stockbroking, accounting and funds management."