Hipkins Chris: Questions for Oral Answer — Questions to Ministers 
Text is incorporated into the Bound Volume 
Hipkins Chris: Questions for Oral Answer — Questions to Ministers 
[Sitting date: 20 September 2012. Volume:684;Page:5509. Text is incorporated into the Bound Volume.] 
8. 
CHRIS HIPKINS (Labour—Rimutaka) 
 to the  
Minister of Education 
: When was she first informed of problems with the Novopay system for the payment of teachers and was she given a date for when problems with the system would be solved? 
Hon HEKIA PARATA (Minister of Education) 
: 
 As the member will know given that it was his colleague the Hon Chris Carter who approved the contract with Talent2 to develop Novopay in 2008 it is the largest and one of the most complex pay systems in Australasia. I am pleased to note that over 89000 school staff were paid in each of the last two pay cycles since Novopay went live. As with any new IT system there have been some teething problems. I have been kept informed about how the system is performing since it went live. I appreciate the patience of school principals and payroll administrators as the new payroll system is rolled out. 
Chris Hipkins 
: I raise a point of order Mr Speaker. I appreciate that the Minister is having a go at the Labour Party in her answer but could she actually now address the question? It is— 
Mr SPEAKER 
: Order! I think I can assist the member. Indeed the question did not ask for all that information; the question asked when the Minister was first informed of problems with the system and whether she was given a date when they might be remedied. It would be helpful if that was answered. 
Hon HEKIA PARATA 
: On 20 August. There were different problems in each of the pay cycles each of them is being sought to be dealt with so there is no fixed date. 
Chris Hipkins 
: Can she give the 85000 teaching and support staff relying on the Novopay system an assurance that they will receive their correct pay in the next pay round; if not why not? 
Hon HEKIA PARATA 
: It is actually 89000 permanent teachers. 
Grant Robertson 
: That makes it better? 
Hon HEKIA PARATA 
: Well it attests to the complexity and size of the payroll. There have been problems in each cycle and the Novopay team is working really hard to overcome them. I am advised that up to 250 known errors occurred each month under the previous system. 
Chris Hipkins 
: I raise a point of order Mr Speaker. My question was relatively specific notwithstanding the fact that the Minister disputed the figure I quoted in it. It was whether she could give teachers an assurance they would get their correct pay in the next pay round. She has not actually addressed that question. 
Mr SPEAKER 
: I suspect she has not because I suspect she cannot but the Minister may like to correct that impression given her answer. 
Hon HEKIA PARATA 
: The reason I corrected the first part of the member’s question was because I know that we all want to deal with facts. There are 89126 teachers being paid so that was why I was correcting it. We are aiming of course at that—that is the intent of the payroll system. For each one of them we are working hard to make sure that that occurs yes.  
Chris Hipkins 
: Will any employees who have incurred late-payment penalties or defaulted on any automatic payments—for example mortgage repayments—receive any compensation either from the payroll provider or from the Government as their employer; if not why not? 
Hon HEKIA PARATA 
: My understanding is that for both of the last two pay cycles since the system went live those who were not paid in the first run were either paid within 24 hours or arrangements were made with their schools. 
Chris Hipkins 
: I raise a point of order Mr Speaker. That was not actually my question. I did not ask what time frame they were paid in. In fact only a couple of hours’ difference can result in somebody defaulting on their payments. I asked whether somebody who defaulted on their payment because they did not get their pay on time will be compensated either by the payroll provider or by the Government as their employer. That matter has not been— 
Mr SPEAKER 
: That is indeed the question the member asked and I accept that absolutely. Maybe the Minister could answer that question because the answer she gave was not to that question. 
Hon HEKIA PARATA 
: It is not my expectation that that would be the case because arrangements have been made with each school in respect of the particular errors in each of the two pay cycles. 
Chris Hipkins 
: Is she therefore suggesting that if any teachers have in fact incurred late-payment penalties or defaulted on any automatic payments the responsibility for remedying that in fact rests with the school and not with the payroll provider or with the Government as the employer of the teacher or support staff member concerned? 
Hon HEKIA PARATA 
: I will have to take advice on this and come back to the member but my understanding is that the way that some of these errors has occurred has been as a result of the inputting of the data.