There has been criticism that the contract for Novopay was awarded to an Australian company rather than to a New Zealand provider. There will be time to debate the rights and wrongs of that decision once Novopay is sorted once and for all.
But we were alerted to this article this afternoon by a reader. It's a story from Computerworld last week and this may surprise you as it did us (the emphasis is ours):
The Ministry of Education will end up spending more than $100 million on the troubled Novopay pay system for teachers.
A ministry contract register shows that the contract with Talent 2 for Novopay extends to September 2015 and is worth $80 million.
But in response to questions from Computerworld, the ministry says that the contract register doesn’t take account of the delay to the implementation of Novopay and the resulting contract variations.
“The contract value of $80 million covers the Talent 2 implementation costs and six years of operation from go live,” the ministry says.
According to the ministry the total Novopay costs are:
- Development and implementation - $29.4 million;
- Long-run cost - $12.5 million a year until 2018.
Following a subsequent enquiry by Computerworld, the ministry now confirms the total cost will be $105 million over eight years.
The original contract was signed in September 2008, but the project was delayed for two years while additional testing was done.
Talent 2 has also earned around $500,000 by providing a programme manager, systems administrator, and business analyst, according to the contract register.
New Zealand went to the polls in November 2008, and elected a National government. So yes Dear Readers; the contract with Talent2 was signed BEFORE the 2008 General Election, at a time when the Hon Chris Carter was Minister of Education.
Oddly, neither Labour nor NZEI has bothered to mention that salient fact. We wonder why. Not only did Labour leave us with a Decade of Deficits to cope with, but they commissioned a dud payroll system for the nation's teachers.
Thanks a bunch Helen, Michael and Chris, all of whom have now of course gone on to high-paying gigs elsewhere. Thanks a bunch.