New Zealand: the right choice," reads the slogan on the country's immigration forms. Perhaps that's true for immigrants, but many New Zealanders are now questioning the price and value of immigration. In recent weeks the number and origin of new arrivals have become topics of national concern. The debate, already blamed for sparks of violence, seems certain to be an issue in national elections later this year. And with 60% of recent immigrants coming from Asian countries, any undertone of racism has understandably alarmed Asian immigrant groups.

The latest dispute began in February with a proposal from the small, center-left New Zealand First Party to limit immigrants to 10,000 a year, less than one-fifth the current level, and impose a four-year probationary period for newcomers before granting citizenship or permanent residency. Most of New Zealand's immigrants have traditionally come from Europe. The population rose from just under 2.5 million to 3.5 million between 1960 and 1990, though only 6% of that growth came from immigration, in contrast to 36% in Australia. That is because for much of the '80s, fewer people came to New Zealand than left. In recent years, however, the number of immigrants granted residency has steadily risen, from 25,673 in 1992 to last year's 54,811. Winston Peters, leader of New Zealand First, says that is too many. Australia accepted fewer than 90,000 newcomers last year, he notes, though it has more than five times New Zealand's population. New immigrants are attracted by an improved New Zealand economy, which by many measures now outperforms Australia's; unemployment in New Zealand, for instance, is 6.2%, vs. 8.4% in Australia.

Peters' critics, who include Prime Minister Jim Bolger, argue that immigration boosts the economy, enriches society and helps strengthen links with the rest of the world--especially fast-growing Asia. Bolger accuses the New Zealand First leader of racism, particularly against Asians, who made up the majority of those approved for residency last year. Peters is "raising racial intolerance to a level that has never been seen in this country for 50 years," the Prime Minister told Parliament in March.

Ethnic leaders contend that Peters has created tensions between resident immigrants and other New Zealanders. "We are the victims of a political debate," says Yong Gwan Kim, a Christchurch businessman and district chair of the Korean Society. In recent weeks the debate took an ugly turn, with attacks--apparently racially motivated--on Somali refugees in three cities. Asian students have reportedly been taunted. Says Nagalingam Rasalingam, president of the New Zealand Federation of Ethnic Councils: "There may not be a direct link between what [Peters] says and such attacks, but it doesn't augur well." Peters counters by saying he has had phone calls from "people trying to get into New Zealand training colleges and universities, but they have seen those places taken by fee-paying foreign students." Several complaints about Peters' comments have been made to the Race Relations Office since he began speaking in public on the issue. "Debate about these policies is quite legitimate, but if it is at the expense of recent immigrants, it does nothing to build positive race relations," said the head of that office, Rajen Prasad, after a March meeting with Peters.

In Auckland, where most immigrants settle, housing is in short supply, and they have been blamed for helping drive the median house price up $12,240 in February, to nearly $150,000. New classrooms and more teachers are needed. Migrants too are critical of the lack of government programs to deal with their needs. "When we come here, there is no real assistance," says Kim. "When they fix that, then they can debate about new immigrants. They have no right now." Still, many New Zealanders seem to agree with Peters. In a national poll, support for New Zealand First jumped from 6% in February to 28% in April. "No party will be in government after the next election without New Zealand First as a major player in it," says Peters.

A slight tightening up on immigration has already begun. New Zealand last year stiffened its residency rules, forcing newcomers to learn English or forfeit $13,600. It also encouraged a wider range of job seekers, to include tradespeople in addition to highly educated professionals, and required workers to register with local professional bodies before residency is granted. For now, the new rules are having an effect: general applications for residency dropped to 414 in the four months ending in February, from 1,088 in the same period a year earlier.

In Asia ripples from the current row are only starting to be felt. "I have had a few people ask me if racism is a problem," says Eric Sampson, who runs the Hong Kong office of New Zealand immigration consultants Malcolm Pacific. "But if someone has already decided to move there, they probably won't be put off. New Zealand still has a very good image." New Zealanders, though, are struggling with that image--and whether what they want to project is Peters' vision for the country or the cheerful promise of the would-be immigrant's application form.