Overestimated visa projections have contributed to a $152 million deficit at Immigration New Zealand, despite steep fee increases and about 100 job cuts last year.

Officials told Parliament’s education and workforce select committee that revenue assumptions – including higher numbers under the Accredited Employer Work Visa scheme – did not eventuate, as applications were hit by the economic downturn.

It is reported that the agency’s memorandum account, which balances visa processing costs and fee income, is expected to remain in deficit.

User-pays funding now covers 91 per cent of costs, and the shortfall coincides with a $336 million, eight-year investment in a new IT system.

As per report in RNZ, outgoing chief executive Alison McDonald said work on a biometric and identity programme had been delayed while it is aligned with a broader government identity project.

Immigration Minister Erika Stanford said compliance efforts had been stepped up to prevent exploitation, after Labour’s Phil Twyford questioned whether 16 prosecutions last year were sufficient.

Officials said 49 migrant exploitation cases are currently before the courts, and more than 200 employers have had their accreditation suspended or revoked.

Separately, 41 quota refugees have been unable to travel due to the Middle East conflict. The government has set up a dedicated desk to assist affected Iranian nationals, but no decision has been made on longer-term visa arrangements or the future of the community refugee sponsorship pilot.

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