Inland Revenue has failed to make any savings from a $46 million restructure and is instead asking for an extra $36 million a year.
Parliament's finance and expenditure select committee yesterday criticised the department for its "contempt" in not providing it with some answers about the restructuring.
Committee chairman Mark Peck said the IRD appeared to have ignored a report last year criticising its culture and operations.
He said the committee was concerned that the IRD had not provided information it was asked for three weeks ago about the restructuring.
The department was given $46 million in 1998-99 for restructuring that was supposed to break even in the following four years and generate $41.1 million in savings after 10 years.
"These savings will no longer be achieved and the department has in fact received an additional $36 million in 2000-01 and out years," said an Audit Office report to the committee on August 2.
A thousand jobs were lost in the restructuring.
The biggest component of the $36 million funding boost now required is $22 million earmarked for "restoring capacity to meet the level of demand for service that can be reasonably anticipated."
Mr Peck said the funding boost combined with the shortfall equated to $82 million. He said the committee wanted to know what had gone wrong and what steps had been taken to prevent similar problems.
Last year, a committee inquiry found that the IRD ran a culture of punishment and fear.
A spokeswoman for Finance Minister Michael Cullen said he did not agree with the committee's report but he was unavailable to comment because the debate on the Employment Relations Bill was his priority.
But Act finance spokesman Rodney Hide said it was about time Dr Cullen did something about the IRD's problems.
He said members of the select committee had questioned IRD executives "most carefully" about the restructuring proposals because many of the MPs were "sceptical" about the plans.
- NZPA
IRD blasted over revamp 'contempt'
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