The Government has taken control of the flawed Novopay payroll system.
The Australian company that held the contract is gone, but there's a catch - the taxpayer will keep paying them millions of dollars for years to come.
"I don't think it would necessarily be seen as a failure," says Steven Joyce, the minister brought in as 'Mr Fix-it'.
Australian company Talent2, Novopay's owner-operator, is getting out of the contract – meaning from October, Novopay will be Government-controlled; it's now solely the taxpayers' problem.
"I think it is a mutually acceptable outcome," says Mr Joyce.
The deal means Talent2 will pay the Government a package worth between $18 and $22 million, including $11-$15m for software and $7m cash.
In return the Government gets the Novopay system – which Mr Joyce last year called "a dog".
What Mr Joyce's press release on the deal didn't say today, however, was that the Government will keep paying Talent2 millions of dollars more over the coming years.
"[The taxpayer] pays $9m over six years, for the discounted service arrangement, yes," says Mr Joyce.
He says the total cost to the taxpayer for Novopay is $110m.
"He described the system as dog with fleas - this needed a vet, not a groomer," says Labour MP Chris Hipkins.
The system has improved but still has bugs, with teachers relieved Talent2 has gone.
So it goes like this: the Novopay name stays, the software stays, the problems stay, too, and so does the fix-it job.
Talent2 goes, but the taxpayer keeps paying the company.
3 News
source: newshub archive
