The $16m campaign fell apart just weeks before the FIFA vote after fans rioted during Euro 2000 and a FIFA inspection team rated its facilities below that of rival bids South Africa and eventual winners Germany.
Now Hoey says she wants the campaign team, led by Alec McGiven, to outline how they spent their budget.
Said the minister: “We never had a chance of winning. But people kept writing and saying that we did and swallowed the words of Alec McGivan as if he was some kind of god. As I travelled around Europe and spoke to sports ministers it became clear that the gentleman’s agreement with Germany, which we went back on, had upset people and given us no hope.
“We shouldn’t have gone ahead in that climate. The vote in the end was all about politics and the sort of things our bid team did were never going to make any difference.”
England’s 2006 team reacted angrily to Hoey’s comments. McGivan said: “I find Kate Hoey’s comments puzzling, bearing in mind how much enthusiastic government support we had.
“A World Cup held in England could have been worth #1 billion to the country and they did everything they could to help.”
UK Prime Minister Tony Blair was a major supporter of the bid.