LISTEN ABOVE AS NEWSTALK ZB POLITICAL EDITOR BARRY SOPER SPEAKS TO ANDREW DICKENS

The Government will lift the annual refugee quota to 1500.

Prime Minister Jacinda Ardern said the increase will not take place immediately, but from July 2020.

The increase is 500 more than the current quota of 1000, which took effect from July this year.

Ardern was joined by Deputy Prime Minister Winston Peters and Immigration Minister Iain Lees-Galloway to make the announcement. The decision was made by the Cabinet committee today, she said.

The refugee quota became an issue of contention recently after conflicting comments from Peters and Ardern on whether it would be raised.

But Peters said he supported today's decision.

Ardern said the timing meant that preparations could be made to ensure refugees were well-supported when they arrived.

"I'm proud that the Coalition Government has today agreed to make such a significant and historic increase to the annual quota of refugees," Ardern said.

"This is the right thing to do. It fulfils New Zealand's obligation to do our bit and provide a small number of people, displaced by war and disaster each year, a place to call home."

Ardern said the policy shift would "change lives".

"Refugees become great citizens, who bring valuable skills and experience to New Zealand and help make our country a more diverse and vibrant place."

Peters told reporters while in Nauru that NZ First had never made a commitment to double the refugee quota.

NZ First had agreed to increase the quota to 1000 but had made no announcement to double it.

"We've got 50,000 people who are homeless back home, and I can show you parts of the Hokianga and elsewhere, parts of Northland, with people living in degradation.

"We have to fix their lives up as well before we start taking on new obligations of the level that some people would like."

For 30 years New Zealand's refugee quota was 750 people per year.

In 2016 the previous National government increased the quota to 1000, which took effect last year.

Labour campaigned before the election on increasing that further to 1500 a year in its first term of government.

Immigration Minister Iain Lees-Galloway said the quota increase was made possible through a funding boost in this year's Budget.

"This included money to build and operate two new accommodation blocks at the Mangere Refugee Resettlement Centre to extend the lifespan of the complex, meet the demands of the current intake of 1000 and help enable an increase in the refugee intake."