02 August 2002

This is the report of the 1998 investigation by the then State Services Commissioner into aspects of personal information that is held by Inland Revenue Department and Work & Income New Zealand. The investigation was to provide public assurance in the security of customers’ personal information.

Preface

On 3 November 1998, the Associate Minister of Revenue, Hon David Carter, in answer to a question in the House, said that two employees of the Inland Revenue Department (IRD) were under police investigation. Rodney Hide, MP, had asked whether 20 employees of the department had been found to be selling taxpayers' information to debt-collectors. A police investigation identified only two employees involved in the sale of information.

On 4 November, the Prime Minister, Rt Hon Jenny Shipley, in answer to a question in the House, said that two employees of Work and Income New Zealand (WINZ) were being investigated for the misuse of confidential information. In the meantime, Mr Hide said on radio that the disclosure of personal information by IRD employees had led to a protected police witness being uncovered. This proved to be incorrect. A man who was reportedly a debt-collector appeared on television. That man said that personal information held by Government agencies and private sector organisations was readily available to be bought by debt-collectors.

On 5 November, the State Services Commissioner, Michael Wintringham,announced that, under the State Sector Act 1988, he would inquire into aspects of the management of personal information that is held by IRD and WINZ. The investigation was to provide public assurance as to the systems and processes that the two departments operate to ensure the security of customers' personal information. This is the report of that investigation.