Immigration should be made easier to allow foreigners to bring much needed skills and capital to SA to actively help grow the economy – like in Australia - instead of making SA a “retirement village”.

So says Barak Geffen, Executive Director of Sotheby’s International Realty, operated by Lew Geffen, who feels the government is to a large extent cutting SA off from economic growth by allowing foreigners to purchase property, without too much constraint, while preventing them from obtaining work permits easily.

“Although these regulations are aimed at ensuring sufficient employment for previously disadvantaged, there are many global examples proving that the most effective way to increase the disposable income of an entire population is via the multiplier effect of consumption of goods and services, driven by the attraction of skilled professionals to an economy.

“There is concern that foreign property ownership is out-pricing locals, however if we look at first world countries across the globe, they are brimming with skilled professionals, of varied nationalities. Any economy should be viewed as a macro-business that can only compete globally by attracting the best talent pool from around the world.

‘‘These professionals actively contribute to these economies; this is what attracts further investment, adding to the country’s success, creating wealth for all.

“Foreign ownership throughout SA is on the up and set to climb post-2010, as our international profile grows and foreigners continue to snap up relative ‘bargain’ properties. But, they are currently using their SA homes mainly for holidays and plan only to move to SA permanently when they retire due largely to the work permit laws.”

“For SA to truly become part of the global market place we need to step up onto the world stage, attract and retain a highly skilled workforce by loosening work permit and residency criterion, allowing foreigners to actively contribute to our economy,’’ he says.

Geffen says Australia’s work permit and residency laws are extremely favorable towards qualified professionals.

“This has helped contribute towards the country's sophisticated and resilient economy - rated as the world’s 13th largest – b 25% of its labour force is foreign.”
 
Geffen adds that the ease of starting a business, low cost business location, highly skilled and multi-lingual workforce, as well as its enviable position as the best place in Asia-Pacific to live and work are other contributing factors towards Australia’s success.

“The World Competitiveness Yearbook 2004, ranked Australia as having the most resilient economy for the third year running, a direct result of the country’s 14th year of uninterrupted economic growth.

“According to global consulting firm, A T Kearney, in its latest FDI Confidence Index, Australia jumped from 19th place in 2003 to the 7th most attractive market worldwide in 2004.”

ENDS-

ISSUED BY:        Lange Strategic Communications
ON BEHALF OF:     SOTHEBY'S INTERNATIONAL REALTY, OPERATED BY LEW GEFFEN
 
For further information please contact Barak Geffen at Sotheby's International Realty, operated by Lew Geffen on 082 600 8522 or Robyn Creer at Lange on (021) 448 7407.