Immigration NZ admits $134 million over-estimate in tech overhaul, pauses project

A Cabinet report shows Immigration New Zealand’s Our Future Services project overstated its benefits by $134 million, more than a quarter of the forecast $453 million savings. New head Andy Milne told an Auckland conference that the assumed 50% productivity gain and $50,000 per-staff overhead cut were unrealistic, especially as visa migration to the Adept system lagged behind schedule. The failure of the Biometric Capability Update, which cost about $36 million and was later scrapped after a parliamentary inquiry, further eroded confidence.

Immigration Minister Erica Stanford said officials had been kept in the dark but believed the errors were not deliberate, and she supported pausing the programme. Both the OFS and BCU initiatives are now under review by the Public Service Commission, while MBIE will reconsider the strategic and technology choices before any further spending.