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V o t e :     I m m i g r a t i o n
P r o p o s a l :  
Community-Based Accommodation for Border 
Refugee Status Claimants 
F u n d i n g   a l l o c a t i o n :     O t h e r
Short Description 
Cabinet agreed [CAB Min (02) 3/2] that the Department of Labour’s New Zealand 
Immigration Service (NZIS) seek funding and approval in the Budget Round for a 
number of measures to manage immigration risk, as part of a counter-terrorism 
package.  One of these was Community-Based Accommodation for Border 
Refugee Status Claimants
.  Ministers directed officials to report back by the end of 
February 2002 on options for releasing refugee status claimants detained at the border 
on condition that they reside at the Auckland Refugee Council Hostel.  The paper 
noted that there could be fiscal implications should those refugee status claimants not 
be granted permits (enabling them to apply for emergency benefits) upon release.   
There are significant advantages to not granting refugee status claimants work 
permits.  In particular, refugee status claimants found not to have genuine cases can 
be easily removed from New Zealand, both because under international civil aviation 
law the airline which brought them is required to remove them, and because they do 
not have the ability to appeal against removal from New Zealand.  An advantage to 
housing them in the community is that it is more cost effective than detaining in the 
Mangere Refugee Reception Centre (MRRC) or granting them work permits and 
therefore entitling them to benefits. 
This bid therefore seeks a transfer from Vote:  Work and Income to meet the costs 
associated with accommodating, feeding, and providing health checks to those 
claimants in the community, noting that these costs would have been met through 
benefits had the claimants been granted permits.  It identifies savings of $0.051 
million (GST inclusive) in 2002/03 and outyears and recommends that these be 
applied to the Budget bid “Security:  Managing Immigration Risks”. 
Impact on the Provisions 
VOTE:  IMMIGRATION 
$000 (GST incl) 
2001/02 2002/03 2003/04 2004/05 Outyears 
Net operating impact  
-
(51)
(51)
(51)
(51)
Total Operating Impact 
-
601
601
601
601
Offsetting Savings/Revenue* 
-  (652) (657) (664) (664)


Benefits 
Following the events of 11 September 2001, tighter detention guidelines were put in 
place for undocumented arrivals at the border who claim refugee status.  There are 
potential benefits for New Zealand from enhanced requirements for positive 
identification of undocumented individuals who arrive and claim refugee status.  
Community-based accommodation is a relatively cost-effective mechanism of 
accommodating people who have been released from Mangere Refugee Reception 
Centre and, as noted above, enables the NZIS to remove people found not to be 
refugees in a relatively straightforward manner.  It also assists with the resettlement 
process of those people who are found to have genuine cases to be considered 
refugees. 
By contributing, along with the general Security initiatives, to the Government’s role 
in maintaining New Zealand’s security while upholding New Zealand‘s international 
obligations, this proposal contributes to the goals “Strengthen National Identity and 
Uphold the Principles of the Treaty of Waitangi” and “Restore Trust in Government 
and Provide Strong Social Services”.    
Costing information 
The operational design of the process is being worked through as part of the 
development of the Cabinet report back due by 28 February 2002.  The report back 
will examine the feasibility and cost-effectiveness of various mechanisms for 
accommodating detained asylum seekers who could be released on conditions from 
the MRRC. 
This bid represents the results of the preliminary investigation of costings.  It is based 
on 180 persons per year (including some people in family groups) spending on 
average 15 weeks each in community-based accommodation, at a cost of $180 per 
week each.  The total comes to $0.601 million (GST inclusive), and compares with 
the estimated benefit expenditure of the group of $0.651 million in 2002/03.  The 
assumptions are set out below. 
Assumptions:
most detained border claimants to be placed into community-based accommodation 
without permits, following new operating instructions
funding provided to community organisations at $180 per week 
($100 for accommodation, $80 for food)
Estimates of numbers over full year
79 border claimants detained
19/09/01 - 7/02/02
141.00 days
0.56 claimants per day at present
at that rate over entire year
205 maximum number per year
previous expectation (Budget 2000)
10 per month
0.333 per day
at that rate over entire year
122 minimum number per year
best estimate
180 per year
 
 



Costings
$180 per week (for accommodation and food, as above)
15 weeks average stay
$350 health costs (one off)
$10,000 Administration
$559,000 Total
$628,875 Plus GST
-$27,706 less money granted in 2000 Budget Round
$601,169 Total Net GST inclusive
$241 average benefit entitlement per week 02/03
$3,619 total benefit entitlement per person
$651,434 total estimated net benefit entitlement
$50,265 Difference between bid and entitlement
 
 
Risks 
Should a decision be made to not fund the costs associated with providing 
community-based accommodation for some persons whose identities cannot be 
positively ascertained, it would not be possible for this option to be implemented.  
There are limits to the holding capacity of the MRRC.  Therefore, it is likely that a 
number of people whose identities cannot be positively established would be granted 
permits and released into the community, or would be committed to prison.  Both 
outcomes would mean that the benefits gained from not granting permits would not be 
realisable. 
Should the total number of person / weeks exceed 2,700 (ie if more than 180 people 
per year meet the criteria for community-based accommodation, or if the average 
number of weeks in community-based accommodation is greater than 15) this funding 
would not be sufficient to meet the associated costs.  This could also necessitate the 
review of the operational instruction which changed the NZIS’s business processes. 
Should the designated community-based accommodation be full (ie not physically 
have room for more persons released on conditions), even if there were funding 
available for board, this would also raise issues.  These potential issues will be 
highlighted during the development of the report back. 
Evaluation  
Community-based accommodation has not been evaluated.  The success of 
community-based accommodation would be measured by the health and welfare of 
the people detained and the number of detainees who abscond.  
The entire Security package, including the community-based accommodation would 
be monitored and evaluated in terms of the overall reduction in refugee status claims, 
and in particular of unsubstantiated refugee status claims.  These are monitored on an 
ongoing basis. 
 



Draft Recommendations to Cabinet Committee 
It is recommended that Ministers: 
1. 
note that Cabinet directed [CAB Min (02) 3/2 refers] the New Zealand 
Immigration Service to report back on options for releasing refugee status 
claimants detained at the border on condition that they reside at the Auckland 
Refugee Council Hostel, by 28 February 2002; 
2. 
agree to support the proposal for providing funding to support those refugee status 
claimants who were released into the community without permits; 
3. 
approve the following changes to appropriations to give effect to the decisions 
made in recommendation 2 above, with consequential impacts on the operating 
balance; 
 
$ m – increase / (decrease) 
Vote Immigration 
2001/02 2002/03 2003/04 2004/05 Outyears GST 
Vote Immigration 
 
 
 
 
 
 
Departmental output class: 
Refugee Services 
- 0.601 0.601 0.601 0.601 
Incl 
(funded by revenue Crown) 
Vote: Work and Income 
Benefits and other 
unrequited expenses: 
Unemployment benefit 
- (0.408) (0.408) (0.408) (0.408) N/A 
(funded by revenue Crown) 
Accommodation supplement 
- (0.139) (0.139) (0.139) (0.139) 
N/A 
(funded by revenue Crown) 
Special benefit 
- (0.105) (0.105) (0.105) (0.105) 
N/A 
(funded by revenue Crown) 
Total  


(0.051) 
(0.051) 
(0.051) 
(0.051) 
 
4. 
agree  to apply the savings identified above to the Budget bid “Security:  
Managing Immigration Risks”.