Otago Museum officials said early this year they might call in the debt collectors because Te Papa was belatedly disputing part of a bill, involving $1987.50 plus GST, which had been invoiced more than 18 months earlier.
Te Papa received more than $30 million from the Government each year, the officials added In a recent letter to Te Papa chief executive Dr Seddon Bennington which was tabled at this week's Otago Museum Trust Board meeting, Otago Museum chief executive Shimrath Paul said that because the outstanding bill was for less than $2000, no further action would be taken over Te Papa's "regrettable" decision not to pay.
"Te Papa will, of course, remain a debtor on our books," Mr Paul said.
"Unfortunately, as with many past examples as well as a number of issues still outstanding, Te Papa's behaviour on this matter further diminishes our trust and yet again lowers our expectations of the kinds of behaviour we can expect from our national museum," Mr Paul wrote.
Board chairwoman Margaret Collins said Te Papa's response had been "pathetic".
This had been particularly disappointing, given that Te Papa and the Otago, Canterbury and Auckland regional museums had early last year signed a protocol which had aimed to "establish more collaborative working relationships with each other", she said in an interview.
In June 2006, Te Papa had received an invoice for $4625.44 from the Otago Museum to meet staff, transport and other costs linked to the loan of Maori artefacts for a Te Papa exhibition.
More than a year later, Te Papa made a part-payment - $2389.50 - but the balance remained unpaid.
In a letter to Mr Paul on August 26 this year, Dr Bennington said Te Papa had been unwilling to pay an invoice for "unsubstantiated staff costs", after previously requesting a breakdown before approving payment.
In a written reply on September 15, Mr Paul said extra labour costs had been required because of the Otago Museum's small staffing levels and the "exceptionally short notice" given by Te Papa in making a large loan request.
"We wish this matter to be resolved and all correspondence to cease. Should you find it beyond you to settle in full, then don't pay at all - we will consider the matter over," Mr Paul wrote.
Dr Bennington replied on September 19 saying he regretted "the tension this has caused between our institutions" and was pleased to accept the proposal that the matter be settled in full, without further payment.
Mr Paul wrote back on October 1 that Dr Bennington's letter had been "misleading" and that the decision not to pay had been made "unreasonably".
