Three workers in Child, Youth and Family residential centres have been sacked for "inappropriate relationships with clients".
The department has told National MP Judith Collins, in reply to a parliamentary question, that "inappropriate relationships" could include "receiving money from clients, over-familiarity with clients, giving gifts to clients, etc".
Its acting manager of residences, Chris Polaschek, said none of the cases, all in the four years to June 2002, involved sexual relationships.
But Ms Collins said the dismissals showed that the culture in the homes needed serious attention.
"The children in CYF care are our most vulnerable and often the most troubled," she said.
"I visited the Northern Regional Centre, before they shifted to their new building, and was very distressed by what I saw. Apart from the housing conditions [since rectified], many of the children appeared to be medicated [Ritalin] and the staff were demoralised.
"I was advised by a staff member that, at the time, the centre had not had a manager for 18 months."
The figures show that 46 disciplinary cases were taken against staff in the three youth residences in Manurewa, Palmerston North and Christchurch in the four years to June 2002.
More than half (28) were in the Northern Regional Centre in Manurewa, which now houses only 10 young people.
The building is being renovated to house an extra 10 youngsters, and another 46 were moved last year to a new youth justice facility, also in Manurewa.
All except two of the 28 disciplinary actions at the centre related to "performance of duties". Two related to "inappropriate relationships with clients", and one of those led to dismissal.
The other two dismissals for inappropriate relationships were at Christchurch's Kingslea centre.
Mr Polaschek confirmed that there had been times when the Manurewa home was run by an acting manager, but said the construction of a separate youth justice centre had changed the conditions since Ms Collins visited.
"If she visited all that time ago, why are these concerns being raised now when the culture is completely different?" he asked. "We have separated the 'care and protection' from the youth justice. It's a very different world now.
Child welfare staff sacked for 'inappropriate relationships'
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