Security intelligence work within the police is to be beefed up in next week's Budget, with the establishment of special teams to stop passport fraud and investigate crimes including terrorism.
The funding for national security teams and an identity fraud team comes amid growing publicity about fake NewZealand passports being sold abroad.
Thai police arrested a Pakistani national in March with 11 counterfeit New Zealand passports.
Also in March, two Israeli men were arrested in Auckland, with police alleging they tried to fraudulently obtain a New Zealand passport.
Internal Affairs has also moved to shut down an internet site offering New Zealand and Australian passports for sale.
The Government said yesterday that the new security teams would cost $14.8 million.
A police post would also be established in Fiji to monitor transnational crime in the South and West Pacific.
Foreign Affairs Minister Phil Goff and Police Minister George Hawkins said the teams would boost New Zealand's counter-terrorism capacity.
The money would pay for 35 police who will be placed in units that will conduct investigative and intelligence-related work and one separate identity fraud team.
Mr Hawkins said it was critical New Zealand maintained the integrity of its documents, particularly as identity fraud was increasing and was linked to other activities such as terrorism.
New Zealand passports were highly prized by transnational criminals, partly because of visa-free entry to other countries.
Mr Hawkins said the demand for security work had increased since September 11 and the workload was expected to continue rising.
