Social Development Minister Paula Bennett has denied she offered money to a beneficiary who laid a privacy complaint against her.
It was reported tonight that Ms Bennett yesterday met Natasha Fuller, the solo mother who was at the centre of a controversy last year after she talked about her inadequate study grant, then saw details of her benefits released by Ms Bennett.
TV3 News said it had emails which showed the meeting had taken place. It reported a monetary settlement was discussed and the idea of Fuller dropping the complaint was floated.
Ms Bennett denied she had offered Ms Fuller money to make the complaint go away.
"Absolutely not. Not in any form, not in any type of conversation, not face to face, not in writing," she said when asked about it by a TV3 reporter.
Ms Fuller went to privacy commissioner Marie Shroff after Ms Bennett revealed details of her benefit, which the minister said she was entitled to do because Ms Fuller had complained about how little she was receiving.
If Ms Fuller withdraws her complaint, the privacy investigation will not continue. TV3 said the deadline for a private settlement between Ms Bennett and Ms Fuller is thought to be tomorrow.
Ms Bennett refused to discuss the issue, and would not confirm that she had met Ms Fuller who says she has had to move house, change her phone number and have counselling as a result of the controversy.
"We're still working our way through a process and at this stage I'm not prepared to comment on that," Ms Bennett said.
"It's a privacy commissioner process and I'm trying to keep it a bit private."
Ms Bennett said she thought it was "entirely appropriate" for a minister to visit a member of the public who had laid a complaint against them.
"I am working my through a process and I'm respecting that process and the people in it," she said.
Labour's social development spokeswoman, Annette King, said Prime Minister John Key should be very worried about what was happening.
"It is not transparent, it is not open and it doesn't seem to be honest," she said.