Over-optimistic forecasting of visa numbers has contributed to a blow-out in Immigration New Zealand's finances.
Visa fees rose sharply in 2024, but the agency's memorandum account - balancing costs and visa revenue - has sunk into a $152 million deficit.
The education and workforce select committee heard that deficit is likely to continue, despite INZ shedding 100 jobs last year.
It is spending $336 million over eight years on a new IT system.
Immigration policy manager Siân 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.
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.
New legislation has widened the potential for user-pays, to charge third-parties who benefit from immigration, such as the international education sector.
Another bill - not yet before Parliament - will look at tightening up compliance activities.
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.
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.
Stanford said INZ staff had been moved from visa operations to compliance, and the response had been stepped up.
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.
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.
Refugee services manager Fiona Whiteridge said 41 quota refugees have not been able to travel to New Zealand because of the Middle East war.
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.
Twyford asked whether the government would create a longerterm solution as it did for Ukrainians when war broke out in 2022.
Stanford said that had not yet been discussed, while they dealt with the immediate knock-on effects of the conflict in Iran.
No decision has been taken on the future of the community organisation refugee sponsorship pilot programme (CORS), which settled almost 200 refugees.
-By RNZ