Michael Thornton
Thornton Immigration Lawyers
michaelt@thorntonimmigration.com.au
Skills shortages in the Australian workforce mean that many firms are looking to employ overseas workers. Employers choosing this option should first seek advice so that they are fully informed of their obligations. These include payment of minimum gazetted salaries, medical expenses and return travel costs for the worker and any family members in Australia.
In most situations these obligations are not excessively onerous but they need to be managed by the use of properly drafted employment contracts and private health insurance.
Employers also need to be aware that the Department of Immigration and Citizenship monitors the performance of employers who sponsor temporary overseas workers. This monitoring process involves the production of satisfactory proof that the employer is paying the agreed salary, superannuation and other benefits and that the worker is in fact working in the nominated occupation and not in some other role. In some situations, immigration officers will conduct unannounced visits to business premises and request production of the firm’s records, BAS statements and so on.
Firms should ensure that proper records are kept and that they are up to date. Failure to do this can be costly both for the firm and their sponsored workers. If a firm is found to be in breach of its undertakings it can have its approval as a sponsor cancelled or face other sanctions. The result of this may also be that the worker has to find an alternative employer at short notice or leave Australia. Workers who have planned to convert from temporary residence to permanent residence via employer sponsorship may also find this avenue closed if their employer is sanctioned for breaching undertakings.
Many thousands of Australian businesses are turning to sponsoring overseas workers using the 457 visa as a means of solving skills shortages. This is a valid strategy but care must be taken to manage the process and to fully meet sponsorship undertakings.
Monday, March 31, 2008
Monday, March 24, 2008
CANADA: NOVA SCOTIA IMMIGRATION PROGRAM FAILED APPLICANTS
Canadian HR Reporter
March 24, 2008
Immigrants don’t get much for $130,000
Nova Scotia scraps mentorship PNP and offers refunds
By Shannon Klie
An immigration program aimed at attracting business managers and entrepreneurs to Nova Scotia by promising them business mentorships was doomed from the start, according to an immigration lawyer.
Most immigrants want to settle in Alberta or British Columbia, because of the hot job market, or Ontario and Quebec, said Sergio Karas, a Toronto-based lawyer and chair of the Ontario Bar Association’s citizenship and immigration section.
“People in Nova Scotia and New Brunswick are making valiant efforts to reverse that trend but, let’s face it, the jobs are not there,” he said. “Immigrants are going to go wherever the jobs are and business immigrants are going to go wherever the money is.”
The Nova Scotia provincial nominee program’s (PNP’s) economic stream fast-tracked potential immigrants, who paid $130,000, to permanent resident status and promised them a minimum six-month mentorship with a local business, for which they would be paid a minimum of $20,000.
“It was designed to provide newcomers to the province with an opportunity to gain some exposure to the Canadian workplace,” said Mary Anna Jollymore, director of communications for the Nova Scotia office of immigration. The hope was they would then open their own business in the province, she added.
But with a softer economy, immigrants who came to Nova Scotia under the economic stream had a hard time finding mentorships with local businesses. Those who did find placements were often working well below their experience level.
“It wasn’t meeting the needs of many of the nominees who were coming through the program,” said Jollymore.
Of the $130,000 program fee, $100,000 went to the mentoring business and $30,000 went to administration fees, including a $20,000 immigration consultant fee.
PNPs in other provinces also have business or entrepreneurial streams, most of which require a minimum investment in a current or new business of up to $400,000 (usually with the requirement the immigrant own at least one-third of the company). Some provinces, such as Manitoba and Prince Edward Island, require the immigrant to make a good faith deposit with the provincial government, usually about $100,000, which the immigrant gets back when the business investment is made.
However, Nova Scotia’s economic stream differs because the immigrant doesn’t end up owning part of the company in which he has invested $100,000.
The economic stream program stopped accepting applicants on July 1, 2006. The unused mentorship fees are in a $75-million trust fund and last fall the government offered $100,000 refunds to participants who lived in Nova Scotia for 12 months but never found a mentorship. About 600 of the 800 participants qualified for the refund option.
However, about 75 immigrants who did find mentorships are petitioning the government for a refund of the difference between the $100,000 and what the mentorship paid. Some of these immigrants told the legislature’s public accounts committee last month they felt betrayed by the province because their experiences didn’t live up to the promise of the program.
A former department store manager from Tehran told the committee his boss at a fish company told him to stay home because there wasn’t any work for him. An Iranian psychiatrist spent his time at a construction company studying for Canadian medical tests.
Many immigrants who came to Canada under the program didn’t bother to stay in Nova Scotia and immigrants who found mentorships want the government to use the fees these immigrants forfeited for their refund.
There were, however, some success stories from the program. John Huang, a food exporter from China, had a year-long mentorship with the Atlantic Institute for Market Studies (AIMS) in Halifax, during which time he worked on research projects to improve trade between Atlantic Canada and Asia.
“As a think-tank, we exist to draw new and innovative thinking to public policy ideas. By going outside of the country, you get a guaranteed different perspective on things,” said Charles Cirtwill, the acting president of AIMS, who added that Huang brought a valuable perspective on immigration and trade policy.
While working at AIMS, Huang also set up his own China-Canada import-export business in Halifax, and he became a member of the city’s chamber of commerce.
Where the program fell short, in Cirtwill’s opinion, was in matching immigrants with businesses. Despite having paid a $30,000 administrative fee, it was Huang, not Cornwallis Financial, the organization that administered the program, who found AIMS and convinced the institute to take him on, said Cirtwill.
“It was that matching piece that they were never able to fulfil the promise of,” he said.
Nova Scotia is redesigning the economic stream into an entrepreneurial stream that will more closely resemble that of other provinces, said Jollymore.
“We’re still aiming to attract the same kind of individuals who have an interest in setting up their own business down the road or have skills that would meet the needs of the local labour market,” she said.
While the majority of immigrants to Canada aren’t choosing to settle in Nova Scotia, there has been an increase in the number of immigrants coming to the province since 2001, said Jollymore.
The province had 1,474 total landings in 2003 and that increased to 2,585 in 2006. The province wants to reach 3,600 annual landings by 2010 and increase its retention rate from 40 per cent in 2001 to 70 per cent by 2010, she said.
“While it’s all well and good to bring people into the province, at the end of the day you want them staying here,” she said. “The targets are ambitious, but we’re on track.”
March 24, 2008
Immigrants don’t get much for $130,000
Nova Scotia scraps mentorship PNP and offers refunds
By Shannon Klie
An immigration program aimed at attracting business managers and entrepreneurs to Nova Scotia by promising them business mentorships was doomed from the start, according to an immigration lawyer.
Most immigrants want to settle in Alberta or British Columbia, because of the hot job market, or Ontario and Quebec, said Sergio Karas, a Toronto-based lawyer and chair of the Ontario Bar Association’s citizenship and immigration section.
“People in Nova Scotia and New Brunswick are making valiant efforts to reverse that trend but, let’s face it, the jobs are not there,” he said. “Immigrants are going to go wherever the jobs are and business immigrants are going to go wherever the money is.”
The Nova Scotia provincial nominee program’s (PNP’s) economic stream fast-tracked potential immigrants, who paid $130,000, to permanent resident status and promised them a minimum six-month mentorship with a local business, for which they would be paid a minimum of $20,000.
“It was designed to provide newcomers to the province with an opportunity to gain some exposure to the Canadian workplace,” said Mary Anna Jollymore, director of communications for the Nova Scotia office of immigration. The hope was they would then open their own business in the province, she added.
But with a softer economy, immigrants who came to Nova Scotia under the economic stream had a hard time finding mentorships with local businesses. Those who did find placements were often working well below their experience level.
“It wasn’t meeting the needs of many of the nominees who were coming through the program,” said Jollymore.
Of the $130,000 program fee, $100,000 went to the mentoring business and $30,000 went to administration fees, including a $20,000 immigration consultant fee.
PNPs in other provinces also have business or entrepreneurial streams, most of which require a minimum investment in a current or new business of up to $400,000 (usually with the requirement the immigrant own at least one-third of the company). Some provinces, such as Manitoba and Prince Edward Island, require the immigrant to make a good faith deposit with the provincial government, usually about $100,000, which the immigrant gets back when the business investment is made.
However, Nova Scotia’s economic stream differs because the immigrant doesn’t end up owning part of the company in which he has invested $100,000.
The economic stream program stopped accepting applicants on July 1, 2006. The unused mentorship fees are in a $75-million trust fund and last fall the government offered $100,000 refunds to participants who lived in Nova Scotia for 12 months but never found a mentorship. About 600 of the 800 participants qualified for the refund option.
However, about 75 immigrants who did find mentorships are petitioning the government for a refund of the difference between the $100,000 and what the mentorship paid. Some of these immigrants told the legislature’s public accounts committee last month they felt betrayed by the province because their experiences didn’t live up to the promise of the program.
A former department store manager from Tehran told the committee his boss at a fish company told him to stay home because there wasn’t any work for him. An Iranian psychiatrist spent his time at a construction company studying for Canadian medical tests.
Many immigrants who came to Canada under the program didn’t bother to stay in Nova Scotia and immigrants who found mentorships want the government to use the fees these immigrants forfeited for their refund.
There were, however, some success stories from the program. John Huang, a food exporter from China, had a year-long mentorship with the Atlantic Institute for Market Studies (AIMS) in Halifax, during which time he worked on research projects to improve trade between Atlantic Canada and Asia.
“As a think-tank, we exist to draw new and innovative thinking to public policy ideas. By going outside of the country, you get a guaranteed different perspective on things,” said Charles Cirtwill, the acting president of AIMS, who added that Huang brought a valuable perspective on immigration and trade policy.
While working at AIMS, Huang also set up his own China-Canada import-export business in Halifax, and he became a member of the city’s chamber of commerce.
Where the program fell short, in Cirtwill’s opinion, was in matching immigrants with businesses. Despite having paid a $30,000 administrative fee, it was Huang, not Cornwallis Financial, the organization that administered the program, who found AIMS and convinced the institute to take him on, said Cirtwill.
“It was that matching piece that they were never able to fulfil the promise of,” he said.
Nova Scotia is redesigning the economic stream into an entrepreneurial stream that will more closely resemble that of other provinces, said Jollymore.
“We’re still aiming to attract the same kind of individuals who have an interest in setting up their own business down the road or have skills that would meet the needs of the local labour market,” she said.
While the majority of immigrants to Canada aren’t choosing to settle in Nova Scotia, there has been an increase in the number of immigrants coming to the province since 2001, said Jollymore.
The province had 1,474 total landings in 2003 and that increased to 2,585 in 2006. The province wants to reach 3,600 annual landings by 2010 and increase its retention rate from 40 per cent in 2001 to 70 per cent by 2010, she said.
“While it’s all well and good to bring people into the province, at the end of the day you want them staying here,” she said. “The targets are ambitious, but we’re on track.”
Thursday, March 13, 2008
CANADA: IMMIGRATION QUOTAS COMING SOON?
It is rumoured that the Federal government will soon impose some sort of quota system to reduce the number of applications entering the system, which is caving under its own weight. The following story appeared this morning in the National Post newspaper. Stay tuned for further developments....
MIGRANT BACKLOG TARGETED
Tories set to accept fewer immigration applications
John Ivison, National Post
Published: Thursday, March 13, 2008
OTTAWA - The federal government is set to reduce the number of new immigration applications it accepts in a dramatic change of policy aimed at cutting the backlog of nearly 900,000 people who have already applied to enter Canada.
Sources say Immigration Minister Diane Finley will table an amendment to the Immigration and Refugee Protection Act as early as today. The new legislation will limit the number of new applications accepted and processed annually.
The act currently requires the government to process every application that enters the system -- a provision that has led to the huge backlog and a wait-time of around four years for an application to be processed.
"It isn't sustainable," said one source, who added that the overall number of immigrants admitted to Canada is more likely to increase than fall in the coming years, even if the number of new applications accepted drops dramatically.
It is believed the amendment will be included as part of the legislation to implement the federal budget, making it a confidence matter.
Maurizio Bevilacqua, the Liberal immigration critic, said the Conservatives don't understand the role immigration plays in Canada's history. "The Conservatives are shutting the door on immigration because they fail to understand its importance to our labour markets and our nation-building. The lack of resources devoted to this issue shows they are not serious about immigration," he said yesterday.
In this year's budget, the government allocated $22-million to modernizing the immigration system. "It is not fair for prospective immigrants to wait for years before being considered, and it is not desirable to wait that long for the immigrants the country needs," the budget said, adding that the proposed changes will "more effectively manage the future growth in the inventory, such as addressing the number of applications accepted and processed in a year." The changes are designed to establish a "just-in-time" immigration system, where the wait time is reduced to an average of a year.
Ms. Finley has emphasized that the government is seeking to bring the "best and the brightest" to Canada.
"Immigration will play an increasingly important role in our long-term growth and prosperity, and we will continue to look for innovative ways to bring in talent from around the world," Ms. Finley told an audience in Mumbai, India, last November.
But critics contend that the new policy will target "economic class" migrants coming to Canada for work, rather than "family class" immigrants being reunited with Canadian family members, or cases where immigrants are admitted on humanitarian and compassionate grounds.
"The Conservatives are attacking family reunification but it attracts many skilled workers to come here," Mr. Bevilacqua said.
The government has made no secret of the fact it sees itself in competition with countries such as Australia and the United Kingdom for the most qualified immigrants. This is likely to mean the vast majority of applications accepted in future are from the "economic class" of migrants that currently make up around 60% of newcomers.
Canada accepts about 250,000 immigrants a year, a figure that has increased since the Conservatives took office. The backlog of applications grew from 50,000 when the Liberal party took office in 1993 to around 500,000 in 2000. By the time the Conservatives came to power in early 2006, it was around 800,000 and in the past two years that number has grown to around 875,000.
Some estimates suggest that as many as one-quarter of current applications are more than six years old.
The Liberals made a number of attempts to eat into the backlog. For example, when Liberal MP Dennis Coderre was immigration minister in 2002, he raised the total number of points required for admission to 75 from 70 (points are allocated on the basis of language skills, education and job offers).
However, under pressure from the Liberals' ethnic voting base, the party backed down and reduced the number of points required to 67.
In 2005, with an election pending, then Liberal immigration minister Joe Volpe announced he would increase the number of immigrants by 100,000 a year -- a rise of 40% from existing levels at that time.
The Conservatives have long argued the Liberals allowed political, rather than economic, factors to dominate their immigration and refugee policy.
A report by the Fraser Institute in 2005 suggested that only 23% of immigrants are net fiscal contributors to Canada at a cost to the taxpayer every year of more than $18-billion (although 60% of immigrants are from the "economic class," fewer than half that number pass the points test -- the remainder are spouses and children).
The government says it has already taken a number of measures to make the system more flexible and efficient, including the establishment of Foreign Credentials Referral offices in China and India and moves to make it easier for foreign students and temporary workers to obtain visas.
MIGRANT BACKLOG TARGETED
Tories set to accept fewer immigration applications
John Ivison, National Post
Published: Thursday, March 13, 2008
OTTAWA - The federal government is set to reduce the number of new immigration applications it accepts in a dramatic change of policy aimed at cutting the backlog of nearly 900,000 people who have already applied to enter Canada.
Sources say Immigration Minister Diane Finley will table an amendment to the Immigration and Refugee Protection Act as early as today. The new legislation will limit the number of new applications accepted and processed annually.
The act currently requires the government to process every application that enters the system -- a provision that has led to the huge backlog and a wait-time of around four years for an application to be processed.
"It isn't sustainable," said one source, who added that the overall number of immigrants admitted to Canada is more likely to increase than fall in the coming years, even if the number of new applications accepted drops dramatically.
It is believed the amendment will be included as part of the legislation to implement the federal budget, making it a confidence matter.
Maurizio Bevilacqua, the Liberal immigration critic, said the Conservatives don't understand the role immigration plays in Canada's history. "The Conservatives are shutting the door on immigration because they fail to understand its importance to our labour markets and our nation-building. The lack of resources devoted to this issue shows they are not serious about immigration," he said yesterday.
In this year's budget, the government allocated $22-million to modernizing the immigration system. "It is not fair for prospective immigrants to wait for years before being considered, and it is not desirable to wait that long for the immigrants the country needs," the budget said, adding that the proposed changes will "more effectively manage the future growth in the inventory, such as addressing the number of applications accepted and processed in a year." The changes are designed to establish a "just-in-time" immigration system, where the wait time is reduced to an average of a year.
Ms. Finley has emphasized that the government is seeking to bring the "best and the brightest" to Canada.
"Immigration will play an increasingly important role in our long-term growth and prosperity, and we will continue to look for innovative ways to bring in talent from around the world," Ms. Finley told an audience in Mumbai, India, last November.
But critics contend that the new policy will target "economic class" migrants coming to Canada for work, rather than "family class" immigrants being reunited with Canadian family members, or cases where immigrants are admitted on humanitarian and compassionate grounds.
"The Conservatives are attacking family reunification but it attracts many skilled workers to come here," Mr. Bevilacqua said.
The government has made no secret of the fact it sees itself in competition with countries such as Australia and the United Kingdom for the most qualified immigrants. This is likely to mean the vast majority of applications accepted in future are from the "economic class" of migrants that currently make up around 60% of newcomers.
Canada accepts about 250,000 immigrants a year, a figure that has increased since the Conservatives took office. The backlog of applications grew from 50,000 when the Liberal party took office in 1993 to around 500,000 in 2000. By the time the Conservatives came to power in early 2006, it was around 800,000 and in the past two years that number has grown to around 875,000.
Some estimates suggest that as many as one-quarter of current applications are more than six years old.
The Liberals made a number of attempts to eat into the backlog. For example, when Liberal MP Dennis Coderre was immigration minister in 2002, he raised the total number of points required for admission to 75 from 70 (points are allocated on the basis of language skills, education and job offers).
However, under pressure from the Liberals' ethnic voting base, the party backed down and reduced the number of points required to 67.
In 2005, with an election pending, then Liberal immigration minister Joe Volpe announced he would increase the number of immigrants by 100,000 a year -- a rise of 40% from existing levels at that time.
The Conservatives have long argued the Liberals allowed political, rather than economic, factors to dominate their immigration and refugee policy.
A report by the Fraser Institute in 2005 suggested that only 23% of immigrants are net fiscal contributors to Canada at a cost to the taxpayer every year of more than $18-billion (although 60% of immigrants are from the "economic class," fewer than half that number pass the points test -- the remainder are spouses and children).
The government says it has already taken a number of measures to make the system more flexible and efficient, including the establishment of Foreign Credentials Referral offices in China and India and moves to make it easier for foreign students and temporary workers to obtain visas.
Saturday, March 8, 2008
Van der Elst Visa
Third country nationals can come to Germany without having to apply for a residence title for the purpose of gainful employment first if certain conditions as provided in § 15 Employment Regulation (“Beschäftigungsverordnung”) are met. This is due to the so-called “Van der Elst - Visa” which is based on the case law of the European Court of Justice rendered with regard to Art. 49 EU Treaty.
Ҥ 15 Service delivery
For the grant of a residence title to persons who are orderly employed in the residence country of a company that is based in a member state of the European union or in a contracting state of the treaty on the European Economic Area and shall be relocated to the Federal Republic in order to perform services no approval is required.”
The regulation implements the case-law of the European Court of Justice which stipulates that a temporary relocation of employees who are third-country nationals for the purpose of cross-border services is generally protected by the freedom of services pursuant to Article 49 et. seq. EC Treaty (starting with the legal matter C-43, 93 – “Vander Elst” of the European Court of Justice). The amendment - which became effective on July 11, 2007 - was required in consequence of the judgement given by the European Court of Justice in the legal matter C-244/04. For a visa application the agencies abroad are checking whether the preconditions stipulated in the case-law guidelines of the European Court of Justice are fulfilled in the individual case. Different from the previous regulation there is no need to have had a previous employment for a certain time in the country where the employee has been employed before the assignment (such regulation being regarded as non-compliant with the EU laws and regulations by the European Court of Justice back in January 2006). However, the visa scheme is only applicable if there is an employment between the third country national and the service provider having its seat in another EU country and if the assignment is going to be for a certain period of time.
In case of any uncertainties whether or not this scheme does work it is recommended to involve the competent authorities upfront in order to get a clearance certificate whereas I would rather prefer to file the application by saying:
- firstly that the scheme applies and
- secondly, just in case it applies not, that the conditions for the “normal” work visa as laid down above are met.
With regard to proceedings cf. http://www.london.diplo.de/Vertretung/london/en/06/Visabestimmungen/Van__der__Elst__visa__seite.html for further information.
Please note that this should also apply to other member countries of the European Union; however this should be checked with the experts of the respective countries.
Ҥ 15 Service delivery
For the grant of a residence title to persons who are orderly employed in the residence country of a company that is based in a member state of the European union or in a contracting state of the treaty on the European Economic Area and shall be relocated to the Federal Republic in order to perform services no approval is required.”
The regulation implements the case-law of the European Court of Justice which stipulates that a temporary relocation of employees who are third-country nationals for the purpose of cross-border services is generally protected by the freedom of services pursuant to Article 49 et. seq. EC Treaty (starting with the legal matter C-43, 93 – “Vander Elst” of the European Court of Justice). The amendment - which became effective on July 11, 2007 - was required in consequence of the judgement given by the European Court of Justice in the legal matter C-244/04. For a visa application the agencies abroad are checking whether the preconditions stipulated in the case-law guidelines of the European Court of Justice are fulfilled in the individual case. Different from the previous regulation there is no need to have had a previous employment for a certain time in the country where the employee has been employed before the assignment (such regulation being regarded as non-compliant with the EU laws and regulations by the European Court of Justice back in January 2006). However, the visa scheme is only applicable if there is an employment between the third country national and the service provider having its seat in another EU country and if the assignment is going to be for a certain period of time.
In case of any uncertainties whether or not this scheme does work it is recommended to involve the competent authorities upfront in order to get a clearance certificate whereas I would rather prefer to file the application by saying:
- firstly that the scheme applies and
- secondly, just in case it applies not, that the conditions for the “normal” work visa as laid down above are met.
With regard to proceedings cf. http://www.london.diplo.de/Vertretung/london/en/06/Visabestimmungen/Van__der__Elst__visa__seite.html for further information.
Please note that this should also apply to other member countries of the European Union; however this should be checked with the experts of the respective countries.
Wednesday, March 5, 2008
HR PROFESSIONALS FACE DIFFICULTIES IN HIRING
Immigration Policies Force U.S. and Canada Employers to Boost Recruiting Efforts
Survey of human resource professionals cites challenges and solutions
ALEXANDRIA, Va.--(BUSINESS WIRE)--Roughly two-thirds of human resource professionals in the U.S. (66 percent) and Canada (65 percent) say tougher national immigration policies have caused their companies to increase efforts to recruit and retain local talent.
A report released today by the Society for Human Resource Management (SHRM) and the Canadian Council of Human Resources Associations (CCHRA), “2008 Global Talent Sourcing in the U.S. and Canada,” also examines how and why foreign workers are recruited.
“Human resource professionals value the local labor pool but know that sometimes the most highly qualified talent is found in the foreign workforce,” said Susan Meisinger, president and chief executive officer of SHRM.
Of the HR professionals polled, 25 percent in the U.S. and 35 percent in Canada said the primary reason they recruit foreign nationals is an inability to successfully attract local workers with the necessary skills. That difficulty in hiring qualified local people is particularly acute in fields requiring highly scientific or technical skills, such as in health care.
Canadian firms (37 percent) are more likely than U.S. firms (17 percent) to hire foreign national workers to fill vacant positions during the next 12 months. When asked if their organizations “most likely will not hire” foreign workers within the next 12 months, U.S. HR professionals (47 percent) agreed nearly two to one over their counterparts in Canada (25 percent).
“A tightening labor market is forcing organizations to increasingly rely on immigration as a source for new talent. Governments and corporations alike must ready themselves to take on this challenge,” said Lynn Palmer, CCHRA CEO.
The HR professionals reported seven key actions taken by their companies as a result of tightened immigration policies:
Increased efforts to recruit and retain citizen and legal-resident workers: U.S. (66 percent), Canada (65 percent).
Recruited foreign students pursuing education in the employer country: U.S. (19 percent), Canada (24 percent).
Decided against outsourcing internationally: U.S. (18 percent), Canada (14 percent).
Hired foreign nationals under different types of visas due to unavailability of preferred visa types and/or delays in document processing: U.S. (16 percent), Canada (22 percent).
Decided to outsource internationally: U.S. (11 percent), Canada (16 percent).
Hired local national into foreign subsidiaries first then transferred when possible: U.S. (11 percent) and Canada (12 percent).
Set up international “virtual” teams: U.S. (6 percent), Canada (5 percent).
Other notable survey findings include:
Paperwork processing time was cited as the most frequently encountered challenge in recruiting foreign workers, according to HR professionals from both countries.
About one-half of HR professionals from the U.S. and Canada said the average verification and hiring process for foreign national workers is more time-consuming now than it was just two years ago.
HR professionals from the U.S. reported the greatest average degree of difficulty in hiring foreign national workers was from countries not included in NAFTA, consistent with recent visa supply shortages. HR professionals from Canada reported the greatest average degree of difficulty in recruiting citizen and landed immigrant status workers.
Survey of human resource professionals cites challenges and solutions
ALEXANDRIA, Va.--(BUSINESS WIRE)--Roughly two-thirds of human resource professionals in the U.S. (66 percent) and Canada (65 percent) say tougher national immigration policies have caused their companies to increase efforts to recruit and retain local talent.
A report released today by the Society for Human Resource Management (SHRM) and the Canadian Council of Human Resources Associations (CCHRA), “2008 Global Talent Sourcing in the U.S. and Canada,” also examines how and why foreign workers are recruited.
“Human resource professionals value the local labor pool but know that sometimes the most highly qualified talent is found in the foreign workforce,” said Susan Meisinger, president and chief executive officer of SHRM.
Of the HR professionals polled, 25 percent in the U.S. and 35 percent in Canada said the primary reason they recruit foreign nationals is an inability to successfully attract local workers with the necessary skills. That difficulty in hiring qualified local people is particularly acute in fields requiring highly scientific or technical skills, such as in health care.
Canadian firms (37 percent) are more likely than U.S. firms (17 percent) to hire foreign national workers to fill vacant positions during the next 12 months. When asked if their organizations “most likely will not hire” foreign workers within the next 12 months, U.S. HR professionals (47 percent) agreed nearly two to one over their counterparts in Canada (25 percent).
“A tightening labor market is forcing organizations to increasingly rely on immigration as a source for new talent. Governments and corporations alike must ready themselves to take on this challenge,” said Lynn Palmer, CCHRA CEO.
The HR professionals reported seven key actions taken by their companies as a result of tightened immigration policies:
Increased efforts to recruit and retain citizen and legal-resident workers: U.S. (66 percent), Canada (65 percent).
Recruited foreign students pursuing education in the employer country: U.S. (19 percent), Canada (24 percent).
Decided against outsourcing internationally: U.S. (18 percent), Canada (14 percent).
Hired foreign nationals under different types of visas due to unavailability of preferred visa types and/or delays in document processing: U.S. (16 percent), Canada (22 percent).
Decided to outsource internationally: U.S. (11 percent), Canada (16 percent).
Hired local national into foreign subsidiaries first then transferred when possible: U.S. (11 percent) and Canada (12 percent).
Set up international “virtual” teams: U.S. (6 percent), Canada (5 percent).
Other notable survey findings include:
Paperwork processing time was cited as the most frequently encountered challenge in recruiting foreign workers, according to HR professionals from both countries.
About one-half of HR professionals from the U.S. and Canada said the average verification and hiring process for foreign national workers is more time-consuming now than it was just two years ago.
HR professionals from the U.S. reported the greatest average degree of difficulty in hiring foreign national workers was from countries not included in NAFTA, consistent with recent visa supply shortages. HR professionals from Canada reported the greatest average degree of difficulty in recruiting citizen and landed immigrant status workers.
Wednesday, February 27, 2008
CANADA: FEDERAL BUDGET HIGHLIGHTS ON IMMIGRATION AND BORDER SECURITY
Modernizing the Immigration System
Advantage Canada recognized that in a modern global economy, Canada’s immigration policies need to be closely aligned with our labour market needs. Budget 2007 took action to make the immigration system more responsive to the new labour market realities in Canada. The Temporary Foreign Worker Program was streamlined to enable employers to bring in workers more quickly to address their immediate labour shortages. The Government also introduced the new Canadian Experience Class to expedite the process for skilled temporary foreign workers and foreign students with Canadian credentials and work experience to remain in Canada as permanent residents, under certain conditions.Canada must maintain the ability to compete globally for the best and the brightest by creating the optimal conditions to attract immigrants who can contribute fully to Canada’s prosperity. A well-managed and efficient immigration system is critical to achieving this objective. The Government will continue to modernize Canada’s immigration system.Budget 2008 builds on Advantage Canada priorities with additional measures to improve the immigration system’s capacity and flexibility to respond to Canada’s dynamic and evolving labour market needs. Concrete measures will be initiated to expedite the processing of permanent resident applications. Combined with the recent improvements to the Temporary Foreign Worker Program, the expansion of the Provincial Nominee Program and the new Canadian Experience Class announced in Budget 2007, these measures will ensure that the labour needs of employers in all provinces and territories are met in a more timely fashion.To complement these actions, changes will be made to the Immigration and Refugee Protection Act to improve the immigration process. It is not fair for prospective immigrants to wait for years before being considered, and it is not desirable to wait that long for the immigrants the country needs. The measures proposed in Budget 2008 will expedite the processing of permanent residents to ensure that skilled immigrants can get to Canada when their skills are in demand. The proposed legislative changes will provide flexibility for concrete measures, as required, to more effectively manage the future growth in the inventory, such as addressing the number of applications accepted and processed in a year. The end result will be reduced wait times and improved service. These changes will allow Canada to take the first steps towards establishing a "just-in-time" competitive immigration system which will quickly process skilled immigrants who can make an immediate contribution to the economy.Action will also be taken to help address the growing demand at Canadian missions abroad for temporary resident visas for students and skilled workers. In particular, the Government will focus on helping post-secondary educational institutions attract foreign students and on facilitating their arrival in Canada. For example, an online application system, as well as other measures to improve service and speed up processing, will be implemented for student visas. These initiatives, combined with new Canada Graduate Scholarships for Canadian and international students, will enhance Canada’s ability to compete with other countries to attract and retain the best foreign students.Taken together, these initiatives will ensure the ongoing integrity of the immigration program. They will enable Canada to respond to growing demand and to admit more highly-skilled immigrants and their families, including foreign students. At the same time, Canada’s social and humanitarian objectives will be preserved and continue to be balanced with Canada’s labour market needs.Budget 2008 provides $22 million over the next two years, rising to $37 million per year by 2012–13, to implement this next critical stage of modernizing the immigration system.Improving Canada’s Borders
Our two-way trade with the world is equivalent to approximately two-thirds of our gross domestic product, and one out of five jobs is directly linked to trade. On a typical day, 266,000 people, 18,200 trucks, 77,900 courier shipments and 5,000 marine containers enter into Canada. These numbers reflect the increased mobility of people and goods in today’s world. This openness brings important benefits to Canada’s economy and society, but it also presents a number of risks.Given the importance of trade to our continued prosperity, our borders have to facilitate trade, travel and commerce, while protecting us from external threats. This is why Budget 2008 is investing in initiatives to:Ensure that the Canada Border Services Agency (CBSA) has the resources it needs to deliver innovative border services given current economic realities and a new security environment.Provide Canadians with access to better and more secure travel documents to cross international borders, particularly our border with the United States.Ensure the integrity of Canada’s immigration program so that our borders are secure and our communities are safe.Enhance the security of the Great Lakes/St. Lawrence Seaway region.Address obstacles to cross-border trade through the Security and Prosperity Partnership of North America.
Strengthened Front-Line Capacity
Better borders start with a stronger on-the-ground presence. The CBSA provides a critical front-line contribution to the prosperity and security of Canada by managing the access of people and goods to and from the country. Budget 2008 commits $75 million over the next two years to ensure that the CBSA has the resources it needs to deliver efficient and secure border services at more than 1,200 domestic and international locations. These funds will increase the number of on-site border services officers at key border installations in order to meet evolving operational demands resulting from increased trade and travel.
World-Class Travel Documents
Better borders also require better travel documents that address concerns over document vulnerability. Budget 2008 takes the steps needed to introduce a higher-security electronic passport by 2011. The validity period of the new passport will be doubled to 10 years. Canada will join other countries that have taken steps to strengthen the security of their passports.Budget 2008 also invests $14 million over the next two years to expand the joint Canada/United States NEXUS program by adding dedicated infrastructure, increasing the number of users from 160,000 to 350,000 and better targeting frequent travellers. The NEXUS program has been successful in reducing border transit times. Expediting crossings for low-risk frequent travellers will also free up resources to improve the clearance of regular traffic, thereby improving border security and reducing border congestion.Finally, Budget 2008 provides $6 million over the next two years for federal activities to support provinces and territories planning to introduce enhanced driver’s licences. Enhanced driver’s licences are optional licences that denote citizenship and are expected to be recognized as a valid travel document for land entry into the United States under the Western Hemisphere Travel Initiative. The United States is the primary travel and business destination for many Canadians who do not hold a passport, and many Americans visit and tour Canada every year without carrying a passport. The development of enhanced driver’s licences by provinces, territories and U.S. states is intended to provide Canadians and Americans who do not hold a passport with an accessible and convenient alternative. British Columbia and the state of Washington are currently deploying and testing enhanced driver’s licences. Other provinces and U.S. states are also in the process of developing enhanced driver’s licences for their citizens.Taken together, these investments will facilitate the secure movement of Canadians across international borders by providing access to reliable and accessible travel documents, in line with evolving international standards. These investments will also ensure a smooth transition to the U.S. Western Hemisphere Travel Initiative.
More Secure Borders
Canada continues to be a destination of choice for millions of individuals seeking to stay temporarily to travel, work or study. While our economy and society are enriched by the movement of people across our borders, it also poses a number of risks.Border security remains a priority for Canadians. Criminals are increasingly more sophisticated and well funded, including those who engage in document fraud to illegally move people or goods across borders. Further to biometric field trials in Canada that were successfully completed in 2007, the Government will introduce the use of biometric data, such as fingerprints and live photographs, in its visa-issuing process to accurately verify identity and travel documents of foreign nationals who enter Canada. This initiative will enhance the integrity and efficiency of the border by preventing criminals from entering Canada, and facilitating the processing of legitimate applicants. Budget 2008 provides $26 million over two years for this initiative. Canada will join other countries such as Australia, the United States and the United Kingdom, which have recognized the value of using biometrics in their immigration and border processes.
Marine Security—Great Lakes/St. Lawrence Seaway
The Great Lakes/St. Lawrence Seaway region is a key economic region with several international bridges and tunnels. It is a high marine security priority for both Canada and the United States. This area is also heavily travelled by both small pleasure craft and large commercial vessels.In 2005, an interim Marine Security Operations Centre in the Great Lakes/St. Lawrence Seaway region was established. Budget 2008 provides $15 million over two years to establish a permanent facility. The operations centre will help departments and agencies work collaboratively to collect, analyze and share information on marine and transborder traffic that is important to the security of the Great Lakes/St. Lawrence Seaway region. A permanent operations centre will also allow representatives from provincial/municipal and United States law enforcement agencies to participate.
A Stronger North American Partnership
The North American Free Trade Agreement (NAFTA) has helped make North America one of the most dynamic and prosperous economic regions in the world. Advantage Canada, the Government’s long-term economic plan, recognizes that Canadian companies must continue to profit from the commercial benefits of NAFTA, particularly as they strive to compete in North American and world markets.In August 2007, the Prime Minister met with the Presidents of the United States and Mexico in Montebello, Quebec, to discuss priorities under the Security and Prosperity Partnership of North America. The Government is addressing these priorities by allocating $29 million over the next two years towards:Greater efficiency at the Canada-U.S. border through better cross-border communication systems and improved wait-time information.The future elimination of duplicate baggage screening on connecting flights in North America.Increased regulatory cooperation on projects in the chemical, automotive and transportation sectors.Greater protection of the North American food supply through vulnerability assessments.Improved trilateral cooperation on energy research and achieving compatibility of energy efficiency standards for key consumer products.These investments will address consumer needs, increase business competitiveness and enhance North American security. They will be sourced from the Security and Prosperity Partnership allocation made in Budget 2006.Our borders have to facilitate trade, travel and commerce while protecting us from external threats. This is why Budget 2008 is investing in borders by:Committing $75 million over two years to ensure the Canada Border Services Agency has the resources it needs to effectively manage the border.Introducing a higher-security electronic passport by 2011.Doubling the validity period of Canadian passports to 10 years when this electronic passport is launched.Providing $14 million over two years to expand the jointCanada-United States NEXUS program for low-risk frequent travellers across the border.Providing $6 million over two years for federal activities to support provinces and territories planning to introduce enhanced driver’s licences.Allocating $26 million over two years to introduce the use of biometric data into visas issued to foreign nationals entering Canada.Providing $15 million over two years to establish a permanent facility to enhance the security of the Great Lakes/St. Lawrence Seaway region.Allocating $29 million over two years to meet priorities under the Security and Prosperity Partnership of North America.
Advantage Canada recognized that in a modern global economy, Canada’s immigration policies need to be closely aligned with our labour market needs. Budget 2007 took action to make the immigration system more responsive to the new labour market realities in Canada. The Temporary Foreign Worker Program was streamlined to enable employers to bring in workers more quickly to address their immediate labour shortages. The Government also introduced the new Canadian Experience Class to expedite the process for skilled temporary foreign workers and foreign students with Canadian credentials and work experience to remain in Canada as permanent residents, under certain conditions.Canada must maintain the ability to compete globally for the best and the brightest by creating the optimal conditions to attract immigrants who can contribute fully to Canada’s prosperity. A well-managed and efficient immigration system is critical to achieving this objective. The Government will continue to modernize Canada’s immigration system.Budget 2008 builds on Advantage Canada priorities with additional measures to improve the immigration system’s capacity and flexibility to respond to Canada’s dynamic and evolving labour market needs. Concrete measures will be initiated to expedite the processing of permanent resident applications. Combined with the recent improvements to the Temporary Foreign Worker Program, the expansion of the Provincial Nominee Program and the new Canadian Experience Class announced in Budget 2007, these measures will ensure that the labour needs of employers in all provinces and territories are met in a more timely fashion.To complement these actions, changes will be made to the Immigration and Refugee Protection Act to improve the immigration process. It is not fair for prospective immigrants to wait for years before being considered, and it is not desirable to wait that long for the immigrants the country needs. The measures proposed in Budget 2008 will expedite the processing of permanent residents to ensure that skilled immigrants can get to Canada when their skills are in demand. The proposed legislative changes will provide flexibility for concrete measures, as required, to more effectively manage the future growth in the inventory, such as addressing the number of applications accepted and processed in a year. The end result will be reduced wait times and improved service. These changes will allow Canada to take the first steps towards establishing a "just-in-time" competitive immigration system which will quickly process skilled immigrants who can make an immediate contribution to the economy.Action will also be taken to help address the growing demand at Canadian missions abroad for temporary resident visas for students and skilled workers. In particular, the Government will focus on helping post-secondary educational institutions attract foreign students and on facilitating their arrival in Canada. For example, an online application system, as well as other measures to improve service and speed up processing, will be implemented for student visas. These initiatives, combined with new Canada Graduate Scholarships for Canadian and international students, will enhance Canada’s ability to compete with other countries to attract and retain the best foreign students.Taken together, these initiatives will ensure the ongoing integrity of the immigration program. They will enable Canada to respond to growing demand and to admit more highly-skilled immigrants and their families, including foreign students. At the same time, Canada’s social and humanitarian objectives will be preserved and continue to be balanced with Canada’s labour market needs.Budget 2008 provides $22 million over the next two years, rising to $37 million per year by 2012–13, to implement this next critical stage of modernizing the immigration system.Improving Canada’s Borders
Our two-way trade with the world is equivalent to approximately two-thirds of our gross domestic product, and one out of five jobs is directly linked to trade. On a typical day, 266,000 people, 18,200 trucks, 77,900 courier shipments and 5,000 marine containers enter into Canada. These numbers reflect the increased mobility of people and goods in today’s world. This openness brings important benefits to Canada’s economy and society, but it also presents a number of risks.Given the importance of trade to our continued prosperity, our borders have to facilitate trade, travel and commerce, while protecting us from external threats. This is why Budget 2008 is investing in initiatives to:Ensure that the Canada Border Services Agency (CBSA) has the resources it needs to deliver innovative border services given current economic realities and a new security environment.Provide Canadians with access to better and more secure travel documents to cross international borders, particularly our border with the United States.Ensure the integrity of Canada’s immigration program so that our borders are secure and our communities are safe.Enhance the security of the Great Lakes/St. Lawrence Seaway region.Address obstacles to cross-border trade through the Security and Prosperity Partnership of North America.
Strengthened Front-Line Capacity
Better borders start with a stronger on-the-ground presence. The CBSA provides a critical front-line contribution to the prosperity and security of Canada by managing the access of people and goods to and from the country. Budget 2008 commits $75 million over the next two years to ensure that the CBSA has the resources it needs to deliver efficient and secure border services at more than 1,200 domestic and international locations. These funds will increase the number of on-site border services officers at key border installations in order to meet evolving operational demands resulting from increased trade and travel.
World-Class Travel Documents
Better borders also require better travel documents that address concerns over document vulnerability. Budget 2008 takes the steps needed to introduce a higher-security electronic passport by 2011. The validity period of the new passport will be doubled to 10 years. Canada will join other countries that have taken steps to strengthen the security of their passports.Budget 2008 also invests $14 million over the next two years to expand the joint Canada/United States NEXUS program by adding dedicated infrastructure, increasing the number of users from 160,000 to 350,000 and better targeting frequent travellers. The NEXUS program has been successful in reducing border transit times. Expediting crossings for low-risk frequent travellers will also free up resources to improve the clearance of regular traffic, thereby improving border security and reducing border congestion.Finally, Budget 2008 provides $6 million over the next two years for federal activities to support provinces and territories planning to introduce enhanced driver’s licences. Enhanced driver’s licences are optional licences that denote citizenship and are expected to be recognized as a valid travel document for land entry into the United States under the Western Hemisphere Travel Initiative. The United States is the primary travel and business destination for many Canadians who do not hold a passport, and many Americans visit and tour Canada every year without carrying a passport. The development of enhanced driver’s licences by provinces, territories and U.S. states is intended to provide Canadians and Americans who do not hold a passport with an accessible and convenient alternative. British Columbia and the state of Washington are currently deploying and testing enhanced driver’s licences. Other provinces and U.S. states are also in the process of developing enhanced driver’s licences for their citizens.Taken together, these investments will facilitate the secure movement of Canadians across international borders by providing access to reliable and accessible travel documents, in line with evolving international standards. These investments will also ensure a smooth transition to the U.S. Western Hemisphere Travel Initiative.
More Secure Borders
Canada continues to be a destination of choice for millions of individuals seeking to stay temporarily to travel, work or study. While our economy and society are enriched by the movement of people across our borders, it also poses a number of risks.Border security remains a priority for Canadians. Criminals are increasingly more sophisticated and well funded, including those who engage in document fraud to illegally move people or goods across borders. Further to biometric field trials in Canada that were successfully completed in 2007, the Government will introduce the use of biometric data, such as fingerprints and live photographs, in its visa-issuing process to accurately verify identity and travel documents of foreign nationals who enter Canada. This initiative will enhance the integrity and efficiency of the border by preventing criminals from entering Canada, and facilitating the processing of legitimate applicants. Budget 2008 provides $26 million over two years for this initiative. Canada will join other countries such as Australia, the United States and the United Kingdom, which have recognized the value of using biometrics in their immigration and border processes.
Marine Security—Great Lakes/St. Lawrence Seaway
The Great Lakes/St. Lawrence Seaway region is a key economic region with several international bridges and tunnels. It is a high marine security priority for both Canada and the United States. This area is also heavily travelled by both small pleasure craft and large commercial vessels.In 2005, an interim Marine Security Operations Centre in the Great Lakes/St. Lawrence Seaway region was established. Budget 2008 provides $15 million over two years to establish a permanent facility. The operations centre will help departments and agencies work collaboratively to collect, analyze and share information on marine and transborder traffic that is important to the security of the Great Lakes/St. Lawrence Seaway region. A permanent operations centre will also allow representatives from provincial/municipal and United States law enforcement agencies to participate.
A Stronger North American Partnership
The North American Free Trade Agreement (NAFTA) has helped make North America one of the most dynamic and prosperous economic regions in the world. Advantage Canada, the Government’s long-term economic plan, recognizes that Canadian companies must continue to profit from the commercial benefits of NAFTA, particularly as they strive to compete in North American and world markets.In August 2007, the Prime Minister met with the Presidents of the United States and Mexico in Montebello, Quebec, to discuss priorities under the Security and Prosperity Partnership of North America. The Government is addressing these priorities by allocating $29 million over the next two years towards:Greater efficiency at the Canada-U.S. border through better cross-border communication systems and improved wait-time information.The future elimination of duplicate baggage screening on connecting flights in North America.Increased regulatory cooperation on projects in the chemical, automotive and transportation sectors.Greater protection of the North American food supply through vulnerability assessments.Improved trilateral cooperation on energy research and achieving compatibility of energy efficiency standards for key consumer products.These investments will address consumer needs, increase business competitiveness and enhance North American security. They will be sourced from the Security and Prosperity Partnership allocation made in Budget 2006.Our borders have to facilitate trade, travel and commerce while protecting us from external threats. This is why Budget 2008 is investing in borders by:Committing $75 million over two years to ensure the Canada Border Services Agency has the resources it needs to effectively manage the border.Introducing a higher-security electronic passport by 2011.Doubling the validity period of Canadian passports to 10 years when this electronic passport is launched.Providing $14 million over two years to expand the jointCanada-United States NEXUS program for low-risk frequent travellers across the border.Providing $6 million over two years for federal activities to support provinces and territories planning to introduce enhanced driver’s licences.Allocating $26 million over two years to introduce the use of biometric data into visas issued to foreign nationals entering Canada.Providing $15 million over two years to establish a permanent facility to enhance the security of the Great Lakes/St. Lawrence Seaway region.Allocating $29 million over two years to meet priorities under the Security and Prosperity Partnership of North America.
Tuesday, February 26, 2008
SWITZERLAND WANTS TO OPEN THE DOOR - BUT ITS STILL HARD TO SQUEEZE IN
Caterina Naegeli
Buergi Naegeli Rechtsanwaelte
cnaegeli@bnlawyers.ch
The abolition of the so called “Lex Koller” law would mean that foreign nationals will be able to purchase residential property in Switzerland without being subject to a complicated authorization procedure. But although the federal council of Switzerland thinks that the Lex Koller is not needed any more, the abolition is not yet ripe for decision.
The “Swiss Federal Law on Acquisition of Real Estate by Persons Resident Abroad” - to give the Lex Koller its full title - was originally designed to protect Switzerland against an “inundation” of foreign nationals since property purchases were restricted by many prerequisites. Another intended effect was to prevent the country side from becoming overdeveloped. But the demands for vacation homes only remain high in a number of tourist regions and to prevent the country side in those areas from environmental damages Spatial Planning Law gives the better opportunities and is a more appropriate solution than the Lex Koller regulations, because it will be largely immaterial whether vacation homes are in the hands of foreign or Swiss National. So the Federal Office of Justice has decided that with the exception of a few communities the law no longer serves any purpose and should therefore be abolished. The federal council of Switzerland agreed and adopted the message for the abolition on the 04. July 2007.
But still the abolition is not ripe for decision. The parliament has to agree and there lays the problem. The committee for land planning of the parliament rebuffed the federal council and applied in November 2007 for the rejection of the abolition decision and the flanked arrangements with regard to the land planning to the federal council of Switzerland. On principle they do agree that the Lex Koller is not needed any more to restrict the foreign ownership, but they want more gripping measures against real estate speculation and the prevalence of building up second homes (the so called “cold beds”). Especially the introduction of a minimum residence duration must be considered and other possibilities to solve the second home problem in tourist regions.
The list of tourist areas with the highest percentage of second and vacation homes is topped by St. Moritz, Flims/Laax, Verbier and Goms. Some areas have focused so heavily on tourism that four out of five homes stand empty for a large part of the year. While the very high density of vacation homes does generate income, it also has its drawbacks for the local population and the countryside. The infrastructure is often geared toward the peak season and at other times fails to meet the needs of the local population.
The draft now must be overworked and the new one is to be checked together with the tandem-initiatives of environmentalist Franz Weber “Save the Swiss ground”. So the good news for anyone who is not Swiss and interested in buying property in Switzerland is that that Swiss government still wants to abolish the limitation on acquisition of real estate. The bad news is that this abolition will not take place in the next years and in principle not until three years after the revised Spatial Planning Law takes effect. As far as timing is concerned, the Lex Koller is unlikely to be abolished before 2011.
Buergi Naegeli Rechtsanwaelte
cnaegeli@bnlawyers.ch
The abolition of the so called “Lex Koller” law would mean that foreign nationals will be able to purchase residential property in Switzerland without being subject to a complicated authorization procedure. But although the federal council of Switzerland thinks that the Lex Koller is not needed any more, the abolition is not yet ripe for decision.
The “Swiss Federal Law on Acquisition of Real Estate by Persons Resident Abroad” - to give the Lex Koller its full title - was originally designed to protect Switzerland against an “inundation” of foreign nationals since property purchases were restricted by many prerequisites. Another intended effect was to prevent the country side from becoming overdeveloped. But the demands for vacation homes only remain high in a number of tourist regions and to prevent the country side in those areas from environmental damages Spatial Planning Law gives the better opportunities and is a more appropriate solution than the Lex Koller regulations, because it will be largely immaterial whether vacation homes are in the hands of foreign or Swiss National. So the Federal Office of Justice has decided that with the exception of a few communities the law no longer serves any purpose and should therefore be abolished. The federal council of Switzerland agreed and adopted the message for the abolition on the 04. July 2007.
But still the abolition is not ripe for decision. The parliament has to agree and there lays the problem. The committee for land planning of the parliament rebuffed the federal council and applied in November 2007 for the rejection of the abolition decision and the flanked arrangements with regard to the land planning to the federal council of Switzerland. On principle they do agree that the Lex Koller is not needed any more to restrict the foreign ownership, but they want more gripping measures against real estate speculation and the prevalence of building up second homes (the so called “cold beds”). Especially the introduction of a minimum residence duration must be considered and other possibilities to solve the second home problem in tourist regions.
The list of tourist areas with the highest percentage of second and vacation homes is topped by St. Moritz, Flims/Laax, Verbier and Goms. Some areas have focused so heavily on tourism that four out of five homes stand empty for a large part of the year. While the very high density of vacation homes does generate income, it also has its drawbacks for the local population and the countryside. The infrastructure is often geared toward the peak season and at other times fails to meet the needs of the local population.
The draft now must be overworked and the new one is to be checked together with the tandem-initiatives of environmentalist Franz Weber “Save the Swiss ground”. So the good news for anyone who is not Swiss and interested in buying property in Switzerland is that that Swiss government still wants to abolish the limitation on acquisition of real estate. The bad news is that this abolition will not take place in the next years and in principle not until three years after the revised Spatial Planning Law takes effect. As far as timing is concerned, the Lex Koller is unlikely to be abolished before 2011.
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