Novopay deal reaction mixed

Novopay Minister Steven Joyce.

A Government takeover of the troublesome Novopay teachers' pay system is potentially a positive move, says a Masterton principal.

On Wednesday senior minister Steven Joyce announced a Government-owned company would take over management of the Novopay system from Australian company Talent2 from October.

Wairarapa schools have struck countless problems since the system was introduced in 2012, including overpayment and underpayment of wages as well as missed wages, with school staff working long hours to try to correct the problems.

Wellington Regional Primary Principals' Association president Ed Hodgkinson, of Lakeview School, said it was difficult to determine whether the takeover would make a difference until it was brought in. Novopay had proved to be "woefully inadequate" and he hoped the takeover would resolve many payroll problems.

His school had faced difficulties contacting Novopay to resolve problems, he said.

"We don't have one single [Novopay] person that we can go to who knows the history of our school and knows what's going on. That history has to be repeated every single time and it's just so frustrating."

While the system had improved it still had some way to go.

Most problems occurred when pay conditions were changed, he said. "You cross your fingers and you just hope that they get it right."

Talent2 will pay the Ministry of Education between $18 million and $22 million including $7 million cash and considerations such as licence to use the core software.

Mr Joyce said although the system had been improving, recent contractual issues involving Talent2 not being prepared to further resource the system led to the takeover.

Reaction from the education sector has been mixed.

New Zealand Principals' Federation president Phil Harding said while government management would bring greater public accountability, its announcement did not cure the "shambles".

"The same challenges of random errors, frustratingly slow problem resolution, inaccurate personnel data, and significantly increased workload will continue," he said. "Success will be determined by the way the new entity is managed and, more importantly, resourced to deal to these priorities."

The federation wanted to see the money from Talent2 reinvested in schools to alleviate extra costs they had incurred and would continue to incur.

New Zealand Educational Institute national secretary Paul Goulter said the Government should have taken over Novopay at least a year ago.

"Government has dragged its feet for two years while the problems with Novopay wreaked havoc in our schools.

"While Government has negotiated a compensation package with Talent2, the issue of compensation for schools struggling on the front line of this debacle remains unresolved." additional reporting Adam Bennett