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Steven Joyce

31 January, 2013

Minister gives update on Novopay

Minister with responsibility for Novopay Steven Joyce today provided an update on Novopay and announced measures to address the situation.

“Novopay is one of the largest payroll systems in Australasia covering approximately 110,000 people and 15 separate collective agreements. After meeting with the key parties involved over the past week, it is clear the issues it has are complex, that there is no quick fix, and problems will continue for some time,” Mr Joyce says.

“Next week’s pay round covers the beginning of the school year and the Ministry of Education and Talent2 are expecting further issues particularly with the start of a new secondary school teachers’ collective agreement.

“I have made it clear to all parties that the on-going issues with Novopay are unacceptable and new measures are being put in place to provide timely solutions.”

The new measures include:

  • Conducting a technical audit of the stability of the Novopay system and the data contained in it
    o Technical review by Murray Jack of Deloitte, incorporating the results of the audit currently being undertaken by Ernst & Young on behalf of the Ministry of Education and an accelerated audit of a sample of schools.
  • Instituting a new Novopay Remediation Plan
    o Led by the Novopay Management Board
    o Will accelerate software stabilisation, monitoring and enhancements and improve customer service
    o Will involve more resources, which the Government will initially provide on a contingency basis while reserving its contractual position with Talent2.
  • Undertaking active sector re-engagement
    o Led by the acting Secretary of Education and the Ministry of Education
    o Will use the Ministry’s regional network to support schools, document their feedback and provide them with more information and training
    o Revitalise a reference group, chaired by the acting Secretary, which will include senior members of education sector bodies to ensure on-going sector engagement and input into system enhancements.
  • Investigating a revised Contingency Plan
    o Led by the acting Secretary of Education who has commenced dialogue with previous supplier, Datacom.
  • Establish a Ministerial Inquiry
    o Going to Cabinet on Monday
    o Intention is for the findings of the Technical Review to be fed into the inquiry, and for the inquiry to cover all aspects of the teacher payroll system from outset to present day.
    o More details will follow next week.

“I appreciate the issues with Novopay are hugely frustrating for those affected and I understand the pressures school pay roll staff are under. I can assure them that everything is being done to resolve the issues as quickly as possible,” Mr Joyce says.