Allan said that people don't become gang members overnight and "the causes are complex and often inter-generational".
These issues are "complex", she said and preventing people from joining gangs in the first instance will always be better than simply punishing them.
"We are working across the sector to tackle the sources of gang participation, looking closely at youth justice, looking at how we can tackle the issues. Ministry of Social Development is leading work on the drivers of youth offending and the Ministry of Education is focusing on improving educational outcomes for at-risk youth."
She said in regards to her own patch – the East Coast – the gang lifestyle is now significantly different to what used to be on offer.
"There's a new way of recruiting young people... It used to be a bit like Once Were Warriors but now, it's a much more enticing lifestyle – bikes and bling."
Hipkins said the increase in gang activity could be linked to the "importation of gang activity".
"501s being deported from Australia is one of the contributing factors – clearly we have more work to do in this sector and this is exactly what we're doing."
However, the National Party does not think the law changes go far enough.
Acting police spokesman Chris Penk said "the announcements today simply tinker around the edges of a problem that the Government is not taking seriously".
"The new proposals don't go far enough."
He said the Government should ban gang patches, give police non-association powers to prevent gang members communicating and planning criminal activity, allow police to issue dispersal notices where gang members come together in public to intimidate, threaten and sometimes assault members of the public and give police warrantless search powers.