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The Government has scrapped its KiwiBuild Visa plan in favour of wider proposed changes to immigration settings to fix a 30,000 worker gap in construction.

A Cabinet paper released alongside the proposed changes warns that without them costs for KiwiBuild could blow out.

The proposed changes include a KiwiBuild Skills Shortages list which would set up a simplified process for employers to quickly hire overseas workers in critical roles without Immigration NZ needing to conduct a market test each time.

This is based on the model used by the last Government to bring in workers to help with the Canterbury rebuild.

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