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

Last updated 10:13 25/11/2012

Related Links

Novopay boss infuriates teachers Novopay a $30m horror show

Relevant offers


'Our job is not to censor. We're not serving the political elite, business or corporations' Redcliffs School considering court action to stay open Twins graduate with same double majors from Massey University Invercargill's Fernworth Primary School latest to get iPads Southland Trades Academy likely to focus on four sectors Massey graduation ceremony sadder than funeral, parents say Education Minister Hekia Parata announces Marlborough colleges decision Lack of trust in National Standards on the agenda for Blenheim schools Mt Eden Normal Primary School's war memorial a mystery for student researchers Western Institute of Technology student numbers down by 8 per cent for 2015

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