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Novopay in the hands of NZ Government

by Chris Huckstepp •
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New Zealand’s 90,000 teachers and support staff will no longer receive their pay through Novopay after October 2014, as the Government signals its intent to launch a Government owned company, and bring the responsibility for payment under its direct control. The current but soon to be removed provider company, Talent2 is required to hand over to the Ministry of Education up to $22 million (made up of cash and licencing) for settlement.

The New Zealand Herald is reporting that the system has cost $110 million to date.

Philip Harding, President of the New Zealand Principals’ Federation (NZPF), complained in a NZPF media release,Novapay Has To Go in February 2014 that, “Through a survey, 714 principals reported that collectively they had 4,413 staff incorrectly paid in the first pay round of the year. The Ministry reported the number as .69 percent of all staff. That’s a might big discrepancy.”

NZPF claimed again in March 2014 that, “The Novopay payroll system has been dogged with errors and has lacked fitness for purpose ever since its introduction. NZPF has repeatedly surveyed principals on the system and consistently finds that over 80% of principals have absolutely no confidence that it will get any better long term.”    

The minister responsible for Novapay, Steven Joyce, issued a press release on 30 July 2014 stating: “The new model involves a new government-owned company taking over the operation of the payroll service, and Talent2 licensing the core Alesco software to that company.”

He also argued that the Government was not coming into control of a system unable to be improved, “I’ve been pleased to note that the payroll has remained within the 0.5 percent acceptable steady state error rate over the past 15 months for all but the three ‘start of year’ payroll cycles at the beginning of this year,” according to Minister Joyce. 

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