The Otago Daily Times was told yesterday 40 Dunedin IRD staff were to lose their jobs from the debt management and child support divisions.
It was understood jobs were being centralised in Tauranga, Wellington, Auckland and Christchurch, and the IRD was not recruiting staff or providing ongoing training as it struggled to balance its budget.
Losing the debt staff from Dunedin would make it difficult for tax practitioners to get face-to-face time with IRD staff, one said.
"Getting to sit down in front of them, IRD staff can understand the human side of the situation as well as the maths."
Work for clients would have to be done by phone or email if the debt staff left, making it more difficult to act for clients facing trying circumstances, he said.
Mr Dunne said in an interview no decisions had yet been made about staff reductions.
A review was under way and there had been long consultations with staff about how the future IRD would look.
"We are a long way off making any decision and talking about numbers. Talking about losing 40 jobs, or even 20, is just idle speculation."
Mr Dunne was particularly incensed by a media report quoting Labour revenue spokesman Stuart Nash that the Napier IRD was being closed down with the loss of 100 jobs.
This was an "ignorant lie" and was not welcome at this time of the year, the minister said.
"We are going through the process and staff are being consulted."
Mr Nash said Mr Dunne could not have it both ways - either service changes were to be made that would inevitably affect staffing levels in regional IRD offices, or no changes were being made.
