UPDATED 1.50pm: Labour has launched into damage control over the Movement for Change initiative set up by former chief of staff Matt McCarten.

The party is busy confirming foreign students brought to New Zealand for the campaign to change the Government have been working legally.

It follows a report on the Politik website that student volunteer workers, brought in from overseas to help Labour's election campaign, have complained about accommodation they've been given and that promises of a political learning programme haven't been delivered.

Labour Party General Secretary Andrew Kirton understands they're here on work visas, but said that's part of the information being gathered today.

"Look, we're figuring out all the details at this stage. Obviously it's important that we comply with all of the rules, and we're just working through all of that at the moment."

Mr Kirton said they were alerted to problems with it a few days ago, and that's why the Party's head office has stepped in and taken the program over.

"We're now going through the process of sorting it out, giving these volunteers the option of working on other campaigns around the country if we can provide billets, or offering support for them to return home."

ACT Leader David Seymour wants Immigration New Zealand to look into the matter, accusing Labour of hypocrisy, and putting the students up in slum conditions.

And it appears the story is creating some sensitivity for the Labour Party.

Media had anticipated asking Leader Andrew Little for comment on the issue at an engagement he's at in Christchurch this morning.

Labour are disputing suggestions it didn't want to talk about the issue.

That had been the impression given to media earlier today when they wanted to raise it with Andrew Little at a transport announcement in Christchurch this morning

However Little's chief press secretary said that's not the case and Little will address the matter at a stand up this afternoon.

He's already described the matter as embarrassing in a Newstalk ZB studio interview this morning

Former Labour Party chief of staff Matt McCarten is blaming popularity for the problems.

In a written statement Mr McCarten, who said he hasn't been employed by the Labour Party since last month, said the program was popular and became over-subscribed.

He said its scale is greater than he can manage and he's aware of issues it's caused.

Mr McCarten said he has agreed to the Labour Party taking over the program over and is no longer involved in it.

He's declined to be interviewed.