Children's Minister Karen Chhour says she is relieved two youths who were part of the boot camp pilot have been found, despite the circumstances.
They had been in family or community placements after the completion of the facility-based part of the boot camp trial, but were on the run after another participant died in an unrelated car crash.
The two were reportedly among four people taken into custody in Hamilton on Saturday night, after a stolen Toyota Corolla was spotted about midday on Cobham Drive.
The driver allegedly fled after being signalled to stop until the car hit road spikes, then - wielding a machete - tried to carjack another vehicle which drove away. They were then arrested along with two others, the fourth being found about five minutes later by a dog unit.
In a statement, Chhour said the circumstances were disappointing but she was "relieved" the pair had been found.
"As this matter is now part of an ongoing investigation, I am unable to provide further details," she said.
"The Military-style academy pilot programme is a pilot programme. It consisted of a three-month in-residence stay, then another nine months back out in the community, with mentor support. Oranga Tamariki does not have the ability to restrict the movement of these young people, or the choices they make, once they are back in the community.
"The young people have been in either family or community placements, where they are trusted to comply with their legal orders."
"The law change I'm bringing in with the new Young Serious Offender legislation will give us the ability to work longer with young people with more complex needs. We've already seen successes with this pilot, including involvement for the participants in jobs, education and training."
The minister refused to be interviewed on the matter, saying the incident was now the subject of a police investigation and youth court orders.
Labour's children's spokesperson, Willow-Jean Prime said the incident showed the boot camps should be halted.
"It's a mask off moment for Minister Karen Chhour who looks set to use these recent failings as justification to intensify the very boot camps she's already lost complete control of."
"Forcing legislation through to entrench these boot camps without even learning from it is incredibly reckless. Instead of focusing on tightening the cuffs, the Government should focus on prevention and providing stronger safeguards and supports for our children's complex needs.
"The prime minister must step in and stop this experiment. He said earlier this year he didn't care whether boot camps worked or not. If he doesn't put a stop to things now, it's clear he never cared about our most vulnerable to begin with."
RNZ approached Chhour for a response to Labour's accusations, but she declined.
RNZ has also sought a response from the prime minister's office.
'I don't know how some of these people sleep at night'
Green Party justice spokesperson Tamatha Paul said the death and alleged carjacking showed that the legislation should be halted.
"It's an absolute tragedy that these young people have been given the highest level of support and intervention and still the boot camps have failed, and I think that raises some really big red flags about the way that we treat and deal with young people who have committed crime in this country."
She said New Zealand needed an entirely new approach to youth justice.
"There is no denying now, after everything we've seen in the last week, there is no denying that this is history repeated. You look at the abuse in state care, and this is exactly the same."
Chhour should have been removed as minister "ages ago", she said, but the boot camps had sprung out of a wider mindset in New Zealand society, that said "punishing children is OK", she said.
The government had ignored the evidence from the children's commissioner, youth psychologists and legal experts that boot camps did not work, she said.
"It's gutless, it's heartless, it's cruel and it's unfair. I don't know how some of these people sleep at night."
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