A smart move

December 1st, 2012 at 10:00 am by David Farrar

Richard Meadows at Stuff reports:

New Zealand are wading into the disaster to offer interest-free overdrafts to teachers and school staff running short on cash.

Problems with the Education Ministry’s new payroll system have led to thousands of teachers paid incorrectly or not at all.

Some have reported being unable to meet mortgage payments or falling behind on hire purchase or credit card debt as a result of the cashflow squeeze.

The banks participating in the interest-free overdraft offer are ANZ New Zealand, ASB Bank, Bank of New Zealand, The Co-operative Bank, Kiwibank, SBS Bank, TSB Bank, and Westpac New Zealand.

They are offering six weeks of interest-free respite –until January 15 – up to the equivalent of any missed payroll payments.

Affected teachers and school staff have to provide evidence to their bank, for example a letter from their school, detailing how much they are owed.

Their bank will then arrange an overdraft facility on the account to which their salary is paid, or to another account by arrangement.

New Zealand Bankers’ Association chief executive Kirk Hope said the banks had offered their support to help tide people over the holiday period.

“I encourage affected school staff to get in touch with their bank so they know they’re covered and can have some peace of mind over the holidays,” he said.

A very smart PR move from the banks.

As I understand it any teacher underpaid can also get reimbursed within 24 hours by their school directly – and the school then gets reimbursement from the .

However relieving teachers who have no main school, are less able to do this easily, so the move by the banks should be of assistance to them especially.

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11 Responses to “A smart move”

  1. peterwn (2,940 comments) says:

    When Goff Whitlam’s government could not get ‘supply’ in 1975, they could not pay Australian federal public servants. Goff or one of his ministers asked the banks to extend overdrafts to the public servants. I cannot remember how the banks responded but the Governor General sacked Goff very soon after.

    The banks would be on to a winner here. The employees in question would be reasonably entitled to have interest reimbursed. Actually the Education Ministry needs to state where it stands on this.

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  2. tvb (3,947 comments) says:

    I presume the teachers unions are keeping a close eye on this. it is a legitimate issue for them to be concerned with. However it would not surprise me if their political agenda matters more. Trade Unions seem to regard their political role as the more important.

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  3. hinamanu (2,352 comments) says:

    Leaves a bad taste in my mouth about the power of banks in society even though this seems like a practical good will move from them. They took away cash wage payments so we have to pay to access our wages. Immoral and should be illegal.

    Obvious collusion between banks and govt.

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  4. gazzmaniac (2,270 comments) says:

    They took away cash wage payments so we have to pay to access our wages.

    What planet are you on? Most banks offer accounts that don’t cost you anything to run. It’s not even difficult, you just have to turn your back on your chequebook (which isn’t a bad thing).
    There’s also nothing stopping you from getting your pay out of the ATM all at once, even from a cheque account, which would cost you $0.

    To be honest I think you’re just a dirty troll.

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  5. Paulus (2,299 comments) says:

    It would appear that as there are something like 13 Agreements and 10,000 Teacher pay permutations something is being incorrectly done. it would appear to be stuffed by part time staff rather than full time Teachers.
    Sounds like old phrase GIGO – garbage in garbage out –
    Is it possible that there is some deliberate politically based obfuscation from School input staff – or they lack some of the skills to handle a new system.
    Remember this was implemented by Chris Carter when he was Minister of Education (and quite agood one).
    Was the old hand written one perfect ?
    I am told by a retired former school admin manager that it was easier to manipulate and from what she can understand this new one, if correctly done, leaves little to chance.

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  6. hinamanu (2,352 comments) says:

    @gazzmaniac

    No administration cost to use ATM ?

    I stand corrected if that’s the case!

    What about credit default swaps which were illegal during the 20th century and helped bring economic collapse to the US and Europe.

    A better man than both of us said this which is now in rapid advance

    ‘”If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered…I believe that banking institutions are more dangerous to our liberties than standing armies… The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.”

    Thomas Jefferson

    Have you seen the farewell speech from Ron Paul to congress. Called the greatest speech America has been delivered.

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  7. Viking2 (10,744 comments) says:

    Another waste of taxpayers money all round.
    Sensible employers use Smartpay or something similar. Works everytime, easy and simple to use, customer service is eXcellent plus, no need to write anything, reports all available as you need. multiple access, constantly updated with all the legislative changes, on the cloud, costs bugger all to use.

    WHY WOULD YOU WANT TO WRITE YOUR OWN?????

    IF THE FUCKING STUPID GOVT. WOULD ACTUALLY GET TO GRIPS WITH THIS STUFF IT WOULD SAVE THE TAXPAYER BILLIONS.

    Better still each school could pay its own teachers.
    Then we could go back to bulk funding simple as and make the unions complain even more. Best reason ever to adopt it.

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  8. pidge (49 comments) says:

    Viking – I think you might mean EasiPay, NettPay or DataPay. SmartPay is the EFTPOS provider :)

    (OK, a shameless plug for the previous MoETP provider…)

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  9. pidge (49 comments) says:

    Ah, SmartPayroll

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  10. Viking2 (10,744 comments) says:

    Yep sorry got my solutions mixed up. Both are good though.

    http://www.smartpayroll.co.nz/the-benefits/

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  11. Lee C (4,516 comments) says:

    Yes a smart PR move . . This close to Christmas for people worried about keeping the house and having to engage in that financially cancerous activity we lamely call ‘credit card debt’ I’d say this is a life saver.

    Cavalier attitude towards people getting paid for their honest days’ work is, in my opinion, an outrage. Another private employer which did this kind of thing could be taken to court, couldn’t it?

    If it were beneficiaries, arbitrarily denied cash over a long-term, there would be a call for heads to roll.

    But because it’s teachers, it’s just swept under the carpet, because, well they aren’t seen as home-owners and familiy-providers, are they? Rather they are seen as all union-obsessed lefties who get too many perks and holidays and we all know they are loaded, right?

    Let them put it on the credit card while we play with our dicks.

    ‘smart PR’? Would have been nice to see the MoE, or a concerned Minister, and even dare I say – their unions indulge these poor saps with a bit of ‘smart pR’ by this time, too.

    Hats off to those banks I say.

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