Methodist Mission chief executive Laura Black, of Dunedin, said the Ministry of Social Development had shown it
lacked the skills to deliver the plan safely.
''They don't seem to know how to do this stuff.
''It speaks to a lack of experience, and a lack of skill.''
From July, NGOs were supposed to provide client details to a government database as a condition of funding, but it is on hold after it was revealed last week to be insecure.
Separately, a critical Privacy Commissioner report last week said the plan was ''excessive and inconsistent with the privacy principles''.
Commissioner John Edwards said the ministry had not given adequate consideration to unintended consequences.
''There is a real risk that the new arrangement will deter some people who are most in need from seeking support or assistance.''
Mr Edwards suggested the ministry look at less invasive ways of achieving its objectives.
One option was to have Statistics New Zealand receive the information, and provide the analysis to the ministry on an anonymised basis.
Ms Black agreed with the suggestion that Statistics New Zealand might be able to assist.
Unlike other social sector managers, Ms Black has no ethical qualms about data collection itself, as long as it is safe and secure.
There was good reason to collect the data, but the ministry had been unable to explain why it was needed, she said.
''In order to meet our legal obligation we need to know what this is going to be used for, and how this is going to be kept securely,'' Ms Black said.
It was revealed last Wednesday that the new information portal was not secure.
Some providers had started uploading details on to the new IT platform, and one had reported that they were able to access another provider's file.
Social Development Minister Anne Tolley told Radio New Zealand the system would not be implemented until it was safe and secure.
She acknowledged it would take ''months'' to redesign, but could not say exactly how long it would take.
''I got the details that there had been this breach.
''We shut the portals down completely . . . and I've asked for a full report,'' Mrs Tolley said.
Mrs Tolley said the Government needed better information about who was using publicly funded social sector agencies.
