New Zealand Labour Party

Joyce must get to grips with widening payroll debacle

Revelations that 95 per cent of complaints about holiday pay to MBIE have been upheld and news that McDonalds is investigating its own systems show Steven Joyce needs to get to grips with the extent of the unfolding payroll debacle, says Labour’s Economic Development spokesperson David Clark.


“Steven Joyce has admitted the Government was aware of issues with holiday pay at least as far back as 2010. When he decided to merge the payroll systems of MBIE in 2012 he should have ensured the Ministry was compliant but instead picked the wrong system.

“National has had six years to get to grips with the problem but still Steven Joyce isn’t doing enough. It now appears the payroll issues could be in businesses as big as McDonalds and effect thousands of workers. The payroll issue could be tens or hundreds of millions of dollars.


“It’s ironic that this issue extends to Novopay, the payment system Steven Joyce was sent in to fix but clearly has failed to do so.


“The minister has to get to grips with this issue immediately. Leaving it to a MBIE working group, when that very Ministry got its payroll wrong, isn’t enough.


“There needs to be a full inquiry immediately to ensure New Zealanders understand the scale of the problem,” says David Clark.