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Over-optimistic forecasting of visa numbers has contributed to a blow-out in Immigration New Zealand’s finances.<\/p>\n
Visa fees rose sharply in 2024, but the agency’s memorandum account – balancing costs and visa revenue – has sunk into a $152 million deficit.<\/p>\n
The education and workforce select committee heard that deficit is likely to continue, despite INZ shedding 100 jobs last year.<\/p>\n
It is spending $336 million over eight years on a new IT system.<\/p>\n
Immigration policy manager Si\u00e2n Roguski said there was also a set of assumptions, which forecast higher revenue and volumes, but which never eventuated. One of them was an over-estimate of accredited employer work visa numbers, which have been hit by the economic downturn.<\/p>\n
The deficit coincided with a rise in user-pays funding (91 percent) and a surge in applications submitted before visa fees were due to rise.<\/p>\n
New legislation has widened the potential for user-pays, to charge third-parties who benefit from immigration, such as the international education sector.<\/p>\n
Another bill – not yet before Parliament – will look at tightening up compliance activities.<\/p>\n
Immigration minister Erika Stanford said the government wanted to “make sure we are not being taken advantage of”, cracking down on employers or those not abiding by their visa conditions.<\/p>\n
Opposition immigration spokesperson Phil Twyord asked whether she thought last year’s tally of 16 prosecution was an adequate response to the scale of migrant exploitation.<\/p>\n
Stanford said INZ staff had been moved from visa operations to compliance, and the response had been stepped up.<\/p>\n
Earlier, compliance manager Steve Watson said there were 49 migrant exploitation cases now before the courts. More than 2000 businesses have had their accreditation to recruit migrants suspended or revoked.<\/p>\n
Outgoing INZ head Alison McDonald said its biometric and ID programme has been delayed as it works with other departments, including Internal Affairs, on a new whole-of-government identity scheme.<\/p>\n
Middle East conflict<\/p>\n
Refugee services manager Fiona Whiteridge said 41 quota refugees have not been able to travel to New Zealand because of the Middle East war.<\/p>\n
A dedicated desk was being set up to field questions and requests for visa extensions for Iranian migrants in New Zealand, and others affected by travel disruption, said Stanford.<\/p>\n
Twyford asked whether the government would create a longerterm solution as it did for Ukrainians when war broke out in 2022.<\/p>\n
Stanford said that had not yet been discussed, while they dealt with the immediate knock-on effects of the conflict in Iran.<\/p>\n
No decision has been taken on the future of the community organisation refugee sponsorship pilot programme (CORS), which settled almost 200 refugees.<\/p>\n