Batch payments botched by Westpac NZ

Westpac messed up public sector payroll, compensation and other payments in New Zealand for the second time in 12 months on Tuesday, generating fresh rumblings over the need for the New Zealand government to review its 23-year-old transaction banking contract.

Westpac had processed the missed payments by early yesterday afternoon. The bank said it would make good any fees incurred by customers for the lack of funds yesterday.

The Public Service Association said Westpac failed to process payroll at around this time last year too and called for a fresh tender for banking services.

Westpac has held the banking contract with New Zealand's central government since 1989.

There has been no competitive tender since that time, though the topic has been the subject of some debate over the last year or so.

In June last year, the Government said that it would put the contract out to tender. Ten months later this has not yet been done.