New Zealand Law
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Hi and welcome. My first response will follow shortly. Please feel free to follow up if anything is not clear.
I have looked through the manual (as I am sure you have) and could not find any reference. The same applies to the Immigration Act. I suspect this is one of those difficult exercises of discretion, based on prejudice rather than reason
So they can justify punishing somebody for a relative's misdemeanour...with absolutely no statute backing...just like the communists did when a relative jumped the iron curtain!?
Your analogy may be accurate. But at law, you cannot assume a person will act in a way, because his relative has done so. That would be an evidence issue if we were not discussing a discretioary power.