"This is the worst crisis since those times: 51 million people displaced, and most of them children."
New Zealand's quota was reduced from 800 to 750 in 1997, in exchange for a government commitment to pay refugees' airfares.
Dame Susan said her experience of growing up in Rotorua had fostered a mentality of helping without discrimination.
"The everlasting impression was that we looked after each other, we helped our neighbour, particularly when in need," she said. "I took the essence of growing up in a very bicultural town for granted; as a child, I didn't recognise or see the inequalities that existed."
Although former refugees do come to live in Rotorua, there is no official resettlement programme based in the area - the five national centres of resettlement are in Auckland, Wellington, Nelson, Manawatu and Waikato.
Dame Susan said a refugee programme in her hometown would boost the national effort.
"Since the earthquake, Christchurch has been unable to take refugees. Wouldn't it be wonderful if Rotorua put their hand up?"
New Zealand was a world-leader in the care and provision for refugees who did settle here, Dame Susan said. But she feared the debate over quota numbers was hampered by a lack of understanding among the public.
"Everyday New Zealanders do not understand what or who is a refugee. Until we see these people as a resource to our country, and not a liability, it will always be a difficult argument to win."
She had seen first-hand the positive effects of resettling programmes across the country.
"All of the refugees I have met, some from 30 years ago, and others more recently, are great Kiwis so grateful for the second chance at life for them and their families, and have made tremendous contribution to the fabric of our society."