The Labour Party would double the time it takes to get permanent residence, under new immigration policies announced on Friday.

It would also offer children born to undocumented parents a citizenship pathway if they have lived here continuously for 10 years, and review financial criteria for parent visas.

Immigration spokesperson Phil Twyford wants to introduce an orientation and civic education programme and a Government Policy Statement on immigration, setting out long-term needs.

He said New Zealand was not good at retaining its talent, pointing to figures showing 14,400 migrants went across the Tasman last year.

"New Zealand cannot afford to operate as a training ground and transit lounge for Australia. We should be careful about what that figure tells us.

"It does not mean that those people came to New Zealand simply to secure a passport, or that they were all recent migrants. But it does demonstrate that attracting skilled people is only half the job. A successful immigration policy must also give them compelling reasons to build their lives and careers here."

Immigration had become a "dumpster fire" of right-wing populists demonising migrants and refugees, he told the New Zealand Association for Migration and Investment immigration conference in Auckland.

"We cannot follow Europe and the United States down the path of division and scapegoating. We must ensure that the political centre holds. That requires the two largest parties in particular to maintain a sensible, pro-immigration approach while maintaining public confidence in the system.

"It is not only wrong, it is irrational. Almost every advanced economy faces the same demographic and workforce pressures as New Zealand. Those challenges cannot realistically be met without immigration.

"But once toxic anti-immigration politics takes root, sound and practical policymaking becomes much harder-and democracy itself is corroded."

If elected, Labour would extend the Recognised Seasonal Employer (RSE) scheme over time and invest in vocational training.

Another priority was cracking down on migrant exploitation, and making it easier for affected workers to move to other employer.

Migrants would have automatic membership of approved independent immigration support, advocacy and welfare organisations. Labour also wants to review health and English requirements.