Prime Minister John Key has announced new changes to immigration rules to encourage migrants to settle in the regions.
He revealed the changes at the National Party's conference in Auckland over the weekend, which was largely dominated by the circus around Serco, the company contracted to run Mt Eden Prison.
The Corrections Department takes over the running of the prison today, following serious allegations of violence.
Mr Key told Paul Henry if allegations prove true, Serco may be ditched.
They also discussed the range of penalty options the Government could decide to go with for Secro, including "financial penalties".
Watch the video for the full interview.