Apprenticeship and training changes 'fundamentally flawed', industry groups warn

RNZ News

10-07-2025

Civil Contractors NZ chief executive Alan Pollard said the reforms were about cutting costs and protecting unsusustainable polytechnics.
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Industry bodies say the government's overhaul of apprenticeship and workplace training will short-change employers.
Organisations representing groups including dairy farmers, mechanics, and roading and infrastructure companies warned Parliament's Education and Workforce Select Committee on Thursday the changes would not give them sufficient say over skills training and qualifications for their employees.
They said the government's Education and Training (Vocational Education and Training System) Amendment Bill would give the government and its agencies authority over standard-setting and qualification development, but that power should rest with industries.
The bill would replace
mega-institute Te Pūkenga
and standards-setting Workforce Development Councils with stand-alone polytechnics and Industry Skills Boards next year.
Some of the industry bodies told the committee replacing the councils with boards receiving half the level of government funding was a mistake.
Civil Contractors NZ chief executive Alan Pollard said the decision was "fundamentally flawed".
He said the government's reforms were about cutting costs and protecting unsustainable polytechnics.
They were also critical of plans for the workplace-training organisations currently in Te Pūkenga to come under control of industry skills boards for up to two years before becoming independent training providers.
Motor Trade Association head of advocacy James McDowall said the former Motor Trades ITO should be shifted directly from Te Pūkenga to an industry-controlled charity.
Business NZ education and skills manager Rachel Simpson told the committee the legislation risked "knocking the knees out" of the VET system.
Simpson said the system was already failing to provide workers with the skills industry needed, which represented wasted investment.
Recreation Aotearaoa chief executive Sarah Murray said high-cost but important programmes such as outdoor leadership would remain under-funded and at risk under the government's changes.
Ringa Hora, the Services Workforce Development Council warned that disestablishing the councils at the end of the year and replacing them with industry skills boards with half the government funding was unworkable.
Toi Mai the workforce development council for sectors including arts and technology said the VET system already did not meet the needs of those sectors.
It warned the bill would entrench a system for a world of work that was already being left behind.