Business and farming industries concerned by Labour victory

The farming and business communities are worried about the new coalition Government's planned cuts to immigration.

Federated Farmers say migrants are crucial to the industry, while Business New Zealand says it could lead to a skills gap.

When Winston Peters announced it was Labour he'd chosen, organisations around the country had to do a major rethink. Federated Farmers is just one of those feeling unsettled by a Labour-NZ first coalition. 

"We're worried about some of the policy," Katie Milne, President of Federated Farmers, said.

Migrants are crucial to our agriculture and horticulture, and Milne believes planned immigration cuts are a big concern.

"We need a good, strong labour force available for us in the regions so that we can go about our daily business 

"If they can't come from Kiwis they've gotta come from somewhere, so yeah, that is something that worries us."

But something that may no longer be a worry is Labour's proposed water tax for farmers, with Mr Peters against it.

"We are going to release the details early next week, but people will understand that Mr Peters campaigned very firmly on that issue," Ms Ardern said.

Business NZ is another organisation looking at the effects of a cut to immigration

"Clearly there is going to be some policy change - immigration is one of those areas," Kirk Hope, CEO of Business NZ said.

"If there is a skills gap we want make sure that the education system is able to fill that skills gap."

The education sector on the other hand is welcoming the new Government. Labour has promised tertiary students the first year of study for free, eventually increasing it to three years.

It's fair to say students aren't complaining.

"It's probably the boldest policy we've seen for students since 2005,"Jessica Palairet , executive-vice president of the Auckland University Students' Association said.

The AUSA says with rising living costs it's never been more expensive to be a student.

"We know at AUSA that students come to us for food parcels and welfare packages and have been doing that this year more than any other time in history." 

When it comes to housing, Labour's promised to ban foreign speculators and build 100,000 affordable homes over 10 years.

Property and real estate experts are waiting for more policy detail before commenting - but some told Newshub that cutting migration would most definitely impact on market demand.