Social Development Minister Anne Tolley yesterday announced an independent review of the botched plan, after the IT platform for the sensitive information was found to be insecure.
Separately, the Privacy Commissioner released a report last week questioning the entire premise of the plan, calling it ''excessive''.
The Government says it has to have names to make sure people are using the right services, but the Privacy Commissioner and many NGO leaders believe handing over their names will put people off using services.
Mrs Taylor said the Privacy Commissioner listened to NGOs' concerns and his report was ''fantastic''.
Fixing the botched IT platform would not address the wider concerns in the commissioner's report, she said.
Ahead of last week's disclosure of the platform problems, there had been ''a wee bit of pressure'' to start uploading client data ahead of the official start date.
She told her staff to ignore the instruction, which proved to be the right decision.
It was time for the Government to start listening to NGOs and the service users themselves, she said.
''Instead of everybody shouting at each other about who's right and wrong ... we need to sit round the table, air our concerns, and find solutions together, instead of us getting emails saying: 'You've got to do this and if you don't you won't get your funding'.
''I cannot explain to people the reason why their private details should be released to the Government, because the Government hasn't explained that to us.''
Mrs Taylor said she had received no formal notification of the past week's developments and was hearing everything through the media.
''The communication is very poor.''
Mrs Tolley announced yesterday Murray Jack, a former consultant with Deloitte NZ, would lead the review into the botched IT platform.
''I have now received a briefing from MSD on what led to last week's technical issue with the portal.
''It's extremely disappointing that the report appears to raise more questions than answers on the security of the IT system and the governance of the project.''
Mr Jack would be supported by IT and privacy specialists.
''The review will consider the circumstances which led to the technical breach, the decisions made on why the portal was used and the security steps taken, as well as the governance and management of the project,'' Mrs Tolley's statement said.
The minister's office declined to answer questions yesterday about the Privacy Commissioner's report.
''Given there's an independent review into the system, it would be inappropriate for the minister to comment further on the client level data system and the wider issues raised until that process has been completed,'' a spokeswoman said.
Last week, in Parliament, Mrs Tolley dismissed concerns data collection would put people off seeking help, calling it an assumption.
