$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

Education

Children escape Palmerston North daycare, investigation launched Tauranga tumuaki unfairly dismissed from kura Pt Chevalier Kindergarten has a new home Christchurch school peers of Rakaia crash victim learn mindfulness Students given timeouts at Wainuiomata High School for incorrect shoes Taranaki principals hit back out at proposed Ministry of Education changes Campbell fails in a bid to be reinstated to principal's role at Salford School Students live, think in te reo at Te Rito: where English stops at the front gate Auckland teacher barred for having sex with student First jobs hard to find for primary teachers in the Waikato

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