Assessment of operations

MBIE delivered across its responsibilities while advancing Government priorities

During 2025/26, MBIE continued to deliver core services and regulatory functions while progressing significant reform programmes and investment initiatives across its portfolios. MBIE advanced the Government's priorities to grow the economy, improve productivity and strengthen New Zealand's resilience, while maintaining a strong focus on value for money, organisational performance and the effective stewardship of public resources in a constrained fiscal environment.

MBIE demonstrated agility in responding to emerging economic and operational challenges

A rapidly changing global environment required MBIE to respond to emerging risks while maintaining delivery of core services and programmes. During the year, geopolitical conflict in the Middle East created significant uncertainty for global fuel markets and supply chains. MBIE led a coordinated response across government and industry to support fuel security and developed plans to ensure continuity of supply for critical sectors.

This response required MBIE to mobilise quickly, coordinate across complex systems and provide leadership during periods of uncertainty. Timely monitoring, cross-agency collaboration and engagement with industry supported informed decision-making and helped minimise impacts on businesses, communities and essential services. While this work required some planned activity to be deferred or re-phased, it strengthened New Zealand's preparedness for any fuel supply disruption.

Sustained demand across key services created operational pressures

Demand for several MBIE services remained high throughout the year. MBIE continued to manage these pressures through process improvements, prioritisation of resources and ongoing performance monitoring. Maintaining service quality while responding to increased demand remains an area of ongoing focus.

As a critical part of New Zealand's quality and economic infrastructure, standards support MBIE's focus on Growing New Zealand for all. During 2025/26, Standards New Zealand published 448 standards, 153 more than in 2024/25 and the highest annual total in its 94-year history. This was achieved through the contribution of hundreds of volunteer technical experts, collaboration with Standards Australia and continued focus on operational efficiency and delivery.

Traditionally, standards are considered and adopted on a one-by-one basis. To improve efficiency and alignment with international best practice, Standards New Zealand is increasingly assessing related international standards together. This makes better use of specialist expertise and allows more standards to be adopted in a shorter timeframe while maintaining robust review and quality assurance processes.

Ninety-eight per cent of standards published during the year were international or joint Australian/New Zealand standards, reflecting a focus on trans-Tasman and international alignment. This supports the Single Economic Market, reduces duplication and enables businesses and regulators to benefit from internationally recognised good practice. Through its partnership with Standards Australia, Standards New Zealand can participate in standards development at a scale that would not be achievable domestically.

Biometric Capability Update – what went wrong?

During the year, MBIE discontinued the Biometric Capability Update (BCU) project.

The BCU project and the related biometric project, In-Person Enrolment (IPE), began in 2018 to modernise Immigration New Zealand’s identity systems. It was paused in November 2025 and ended in January 2026 after major delivery problems and rising costs. It did not deliver the planned capability. An independent review by Greg James: Review of The Biometric Projects: Biometric Capability Update and In-Person Enrolment projects found serious weaknesses in governance, assurance, decision-making and culture. MBIE accepts these findings and is making changes to reduce the risk of this happening again.

Purpose and scope of the Assurance Response Programme

Following the Greg James Review of The Biometric Projects, MBIE established the Assurance Response Programme (the programme). This programme is driving work to strengthen accountability, financial management, project oversight, transparency and organisational culture across MBIE, with the aim of improving investment delivery and maintaining public confidence.

The programme’s immediate actions include:

• supporting the Public Service Commission inquiry into issues raised by the review
• reviewing in-flight technology projects to confirm appropriate governance, assurance and reporting are in place
• driving improvements to MBIE’s technology investment and governance systems, supported by independent assurance
• supporting the Public Service Commission’s assurance review of the multi-year Our Future Services programme
• strengthening information management to improve oversight, coordination and consistency across inquiry-related material and official information releases.

In addition to these actions, MBIE is undertaking further work on:

• Organisational culture: reinforcing leadership expectations, accountability and capability to support culture and integrity at MBIE, including greater awareness of channels for speaking up.
• Transparency: identifying opportunities to improve visibility and transparency with Ministers and the public about MBIE’s projects and programmes.
• Future identity capability: assessing current operations and future requirements to support a stable, reliable identity service.
• Financial capability: strengthening financial capability to support better decision-making.

Public Service Commission inquiry and review

The Minister of Immigration referred concerns about MBIE’s conduct and integrity raised by the independent review to the Public Service Commission. The Commission subsequently established an inquiry, led by Michael Heron KC, to examine MBIE’s governance, decision-making, investment management and compliance with public service and Cabinet requirements relating to the project. The inquiry is also considering how concerns were managed and the organisational factors that contributed to the issues identified.

The Minister further requested that the Public Service Commission undertake an independent assurance review of MBIE’s Our Future Services programme, a complex, multi-year strategic transformation to modernise Immigration New Zealand’s systems and services. Conducted by David Hosking, the review is assessing programme governance, management, reporting, costs and expected benefits and the extent to which lessons from the BCU project have been addressed, including the programme’s reliance on biometric capability originally intended to be delivered through the BCU project. The review will provide independent assurance and recommendations on the Our Future Services programme’s viability, delivery approach and readiness to achieve its intended outcomes.

Privileges Committee

In March 2026, MBIE appeared before Parliament's Education and Workforce Committee to answer questions on Immigration New Zealand's performance and operations, including the BCU project. Following the release of the independent review of BCU and the subsequent referral of a question of privilege by the Speaker in June, the Privileges Committee considered the evidence MBIE had provided to the Committee about the project.

In August 2026, the Committee found that MBIE had committed a contempt of Parliament and had deliberately misled Parliament in relation to that evidence. MBIE accepted the findings, apologised unreservedly and is strengthening processes, assurance and accountability to support the provision of accurate, complete and transparent information to Parliament and its committees.

Technology stocktake

An initial stocktake assessed 70 of MBIE’s technology initiatives, including 31 major projects with formal governance arrangements. It examined whether appropriate governance, assurance, reporting, escalation, financial and delivery controls were in place and operating effectively and identified any gaps or areas requiring immediate action.

The stocktake provided a point-in-time view of MBIE’s technology investment portfolio. While it found no major gaps in governance controls, it did find room for improvement and a need for greater consistency between projects.

A plan to remediate identified weaknesses has been completed. The stocktake's methodology and findings were independently reviewed and validated. MBIE intends to report regularly on the status of its technology investment portfolio and the first public release was in September 2026.

Review of technology investment systems and processes

Following Greg James’ independent review and in parallel with the stocktake of MBIE’s in-flight technology projects, MBIE conducted a targeted end-to-end review of its technology investment systems and processes. The review recommended strengthening the portfolio management office, lifting capability across the technology investment lifecycle, improving the integration of systems, data and reporting, enhancing governance effectiveness and decision-making and implementing an action plan to address these areas.

Culture

The findings from the BCU project provided an important opportunity to reflect on and strengthen our organisational culture, which is a specific focus for all MBIE leaders. Through the Assurance Response Programme, we started work to better understand the experiences of our people, strengthen trust and create more opportunities for MBIE people to speak up, be heard and contribute to how our culture evolves. This work aims to ensure MBIE’s values are reflected more consistently in day-to-day behaviours and that staff feedback leads to meaningful action.

Adapting plans as circumstances changed

While most initiatives progressed as planned, some experienced delays, scope changes, cost pressures or other delivery challenges due to complexity, workforce constraints, procurement and technology risks, changing operating conditions or evolving government priorities.

Across a portfolio of MBIE’s scale and diversity, some variation from original plans is not unusual. However, the programme of work we have implemented recognises there is room for improvement and a need for greater consistency of delivery to ensure we achieve the best value and long-term outcomes for New Zealanders.

Lessons learned and improvements implemented

Experiences from the BCU project, the reprioritisation required during fuel supply disruptions, and major reform and transformation programmes reinforced the importance of strong governance and accountability, realistic planning, robust assurance, effective risk management, early escalation and flexibility.

MBIE is applying these lessons with a focus on transparent reporting, continuous improvement and stronger delivery of future technology projects, services and investments.

MBIE maintained a strong operational position while continuing to improve performance

Despite a challenging operating environment, MBIE maintained delivery of core services, progressed significant reforms and investments and continued to strengthen its focus on productivity, service quality, regulatory effectiveness and public value.

The year highlighted both the importance of resilient public services and the need for strong organisational capability to deliver complex programmes in an increasingly dynamic environment. While some delivery challenges identified areas for improvement, MBIE has taken action to strengthen its systems, capability, governance and investment management practices. The lessons learned through these experiences are helping build a stronger organisation that is better positioned to deliver future priorities, respond to emerging challenges and create long-term value for New Zealanders.

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