The government splashed $37.6 million on private security guards for MIQ hotels in eight months after announcing it would use its own guards instead.
Despite ending its contracts with 15 security companies, the number of private security guards working at the hotels each day has now increased by about 20 percent.
This comes amid a struggle for the government to recruit its own guards with just 48 working so far.
Figures obtained by RNZ show in January about 244 private security guards were working at MIQ hotels every 24 hours, costing $198,000.
In May that rose to 291 guards, costing about $153,000 per day. The drop in pay could be due to fewer hours or MIQs being less full.
New Zealand Security Association chief executive Gary Morrison initially welcomed the move away from the private companies but he was let down.
"There was talk about providing better wages and a big emphasis on providing better training. We're very disappointed that it's not the case. Effectively the training is no different to what private security staff were being provided previously. Some of the rationale for that change has to be questioned," he said.
The Ministry of Business Innovation and Employment (MBIE) wanted to fill 156 security roles by July, but only 48 people have been employed, despite 634 applications.
Those people are working alongside the defence force, AVSEC, and the private security guards from First Security, and the ministry said they were offered training in Situational Safety and Tactical Communications, mental health and Certificate of Approval.
Morrison said most private security guards worked about 55 hours per week and get paid the living wage, but the job offer from the ministry was less appealing.
"Where MBIE has come from is that they're offering one-year fixed-term contracts so there's no certainty of continuity at the end of that term. They are offering slightly higher wages but with the hours capped, so effectively a lot of staff are looking at a pay decrease if they go to work for MBIE," he explained.
Covid-19 Response Minister Chris Hipkins said there were other reasons for the shortfall.
"There are a variety of things they're balancing up there. One is just making sure that we've got the right fit, the right kind of workforce there. There's still only a limited number of people available to do that work. But we will be bringing more of those roles in-house," he said.
He was unsure exactly when that would happen.
The government first announced it would hire its own security force after a slip-up when a guard used Snapchat to post the names, room numbers and arrival and departure dates of 27 returnees.
In April, a guard was fired for making unwanted contact with a returnee, another was caught lying about having been tested for Covid-19 - after testing positive, and passing the virus onto a colleague.
Morrison said having people working to different rules and pay expectations was risky.
In a statement, MIQ head Brigadier Rose King confirmed the ministry had trimmed down the number of different private employers from 16 to one to "rationalise" and strengthen its security force.
It did not intend to completely stop using private security guards.
"We need to retain one private security company so that we have some surge capacity and contingency support across our 31 facilities," she said.
She said once the recruitment process was complete, First Security would still provide about 15 percent of the workforce - about 130 security staff - while government agencies would make up the other 85 percent.
E Tū union organiser Mat Danaher said it could be a good thing to have multiple security providers available.
"It probably does make sense to have people from different agencies and different providers who can be brought in at different times and fill different roles, and where levels can be increased as required and then reduced," he said.
"Because it is really intense working in MIQ and it does have an impact on family life in ways other jobs might not. So being able to cycle people through and then out again at some point is probably a pretty good thing as well."
RNZ also requested the number of security guards working last year, when the facilities were under the control of the Ministry of Health.
It refused the request because only "security companies themselves" would know how many were working.