Edward Anand’s attitude was "of concern", panel convener Judge Geoffrey Ellis said at a Parole Board hearing last month.
The 73-year-old was sentenced to 13 years’ imprisonment in 2016 after being found guilty on a slew of charges following a trial in the Dunedin District Court.
But he has continued to claim innocence, despite appeals to higher courts being dismissed.
At a previous parole hearing, Anand said he had applied to the Criminal Cases Review Commission — an independent body established last year to investigate potential miscarriages of justice — to look into his case.
The Tongariro Prison inmate had worked at the former Elliot St home between 1980 and 1986, where he preyed on girls as young as 10.
Because of his repeated denials, Anand was ineligible for sex-offender treatment.
Instead he undertook Te Anga Whakamua — a pilot programme for offenders in denial.
The board heard the prisoner had been working on his safety plan but had no address to propose for release.
Anand had been declined a spot with one supported-accommodation provider but had an interview with another.
He would be eligible for superannuation once out and had no employment lined up.
"He has however gained qualifications in beekeeping and he has an interest in gardening which is appreciated and shared by his supporters," Judge Ellis said.
He declined parole, suggesting Anand needed further time to show he could be trusted.
"We would encourage him to engage in whatever reintegrative activity is made available to him including guided releases and if possible, the opportunity for Release to Work to develop his contacts and skills and to be tested in a variety of situations," Judge Ellis said.
Anand will see the Parole Board again in March next year.
His sentence ends in 2029.
