$50,000 fine for school payroll faults 'not enough'

TOM PULLAR-STRECKER
Last updated 10:13 25/11/2012

Related Links

Novopay boss infuriates teachers Novopay a $30m horror show

Relevant offers

National News

#ChicagoForOne: Man forced to spend bachelor weekend alone after airline cancels flights Scottish childcare worker suspended after enraging parents with expletive Facebook post Family capture love for newborn with inoperable brain tumour in heartwrenching photo shoot Australian Border Force goes overboard into Operation Overkill Cruise passenger wakes from coma to deny suicide bid No decision made on refugee quota: Government Chef 'too fat' for New Zealand to learn immigration fate NZ Breakers star Corey Webster off for NBA shot with New Orleans Pelicans Spate of N.W.A tagging follows Straight Outta Compton movie release Hutt girl heartbroken by thief who stole precious family photos from classroom

Australian company Talent2 faces a maximum penalty of $50,000 each time its Novopay payroll system botches teachers' fortnightly payroll cycle, according to a source with connections to the company.

That would mean only about 10 per cent of Talent2's total earnings from its contract with the Education Ministry would be at risk, despite widespread dissatisfaction with Novopay among schools which say Talent2 has been responsible for thousands of pay errors.

One school administrator said the fine was "not enough".

The Education Ministry would not confirm the size of the penalties, saying they were confidential. Spokesman Matt Radley reiterated that Talent2's contract to build and run Novopay was worth $100.5 million over eight years.

Talent2 chief executive John Rawlinson indicated last week Talent2 expected to be penalised for Novopay's performance, but hoped the company would be cut some slack given big information technology systems often had a "settling-in period".

Labour communications spokeswoman Clare Curran said she hoped Novopay would be a "wake- up call" to government departments negotiating such contracts with suppliers.

"The wider question is the culpability of the ministry itself to deliver pay effectively to teachers and I have got a concern that any mistakes get blamed on public servants rather than the minister.

Ad Feedback

- Sunday Star Times

Special offers

Featured Promotions

Sponsored Content