Latest news with #IndustrySkillsBoards
Scoop
22-05-2025
- Business
- Scoop
Tertiary Study Subsidy Boost In Priority Subjects
Minister for Universities Hon Penny Simmonds Minister for Vocational Education The Government is backing the tertiary system with new investment in study that delivers the greatest value for students and for New Zealand, Minister for Universities Dr Shane Reti and Minister for Vocational Education Penny Simmonds announced today. 'Budget 2025 invests an extra $398 million in tertiary education over the next four years. We need to grow our domestic pipeline of skilled workers to support the growing economy,' Dr Reti says. Ms Simmonds says, 'When considering subsidies, we focused on workforce demand areas where study adds the greatest value – both for students planning their futures, and for the wider economy that relies on their skills. 'These subjects often lead to rewarding careers and contribute to productivity and growth in sectors like health, energy, infrastructure and digital technology,' she says. The Budget tertiary system investment includes: · $213 million to provide a 3 per cent increase in tuition and training subsidies in many subjects across all levels of tertiary study. The extra funding will be ongoing from 2026. · $64 million for an additional 1.75 per cent lift in tertiary education subsidies at degree level and above in high demand 'STEM' subjects (Science, Technology, Engineering and Maths), along with Initial Teacher Education and other priority health workforce areas. This is on top of the broader 3 per cent increase, meaning that, in total, the STEM and other higher-priority subjects will attract a 4.75 per cent tuition cost subsidy increase at degree level and above. $111 million to fund forecast enrolment in 2025 and 2026. This includes ongoing funding for another 175 Youth Guarantee students a year – this scheme provides fees-free tertiary tuition at Levels 1–3 to help young people move to higher-level study or work. Budget 2025 proposes an annual maximum fee rise of 6 per cent for 2026 to further help providers manage cost pressures and maintain quality delivery. 'The proposed maximum rate reflects that fees have lagged behind inflation in recent years, making it harder for providers to maintain course quality. I will consult on the proposed fee increase later in 2025 through a notice published in the New Zealand Gazette,' Mr Reti says. 'Together, the targeted funding rate increases, and the proposed fee increase will support tertiary education and training providers to sustain the quality of provision and further invest in priority areas,' the ministers say. Changes to funding for vocational education and training will provide some additional support during the transition away from Te Pūkenga to the redesigned system. The new Industry Skills Boards will receive ongoing funding of $30 million a year for industry-led standards-setting alongside Budget funding for a one-off $10 million in 2025/26 towards establishment costs. 'Provider-based delivery in priority areas, including engineering, trades and primary industries will receive a boost to funding rates. There will also be funding available for two years from 2026 for institutes of technology and polytechnics during their transition to greater independence,' Ms Simmonds says. 'In developing the Budget package, we have reprioritised funding to focus on core activities and to further support frontline tertiary education services. 'Taken together, these initiatives support a sustainable tertiary education and training sector that will lift student achievement and contribute to growing the New Zealand economy.'
Otago Daily Times
20-05-2025
- Business
- Otago Daily Times
Bill passes first reading to disestablish Te Pūkenga
Penny Simmonds. Photo: supplied Legislation to disestablish New Zealand's centralised vocational education and training system passed its first reading in Parliament yesterday. "Today, we've taken a major step forward toward a vocational education and training system that works for learners, employers, industries and local communities," Vocational Education and Training Minister Penny Simmonds said. "The Bill, which has passed its first reading, will return decision-making to where it belongs — in the hands of regional polytechnics and industry. "This is a common sense reset that ensures polytechnic education and training is responsive to regional needs and work-based learning for apprentices and trainees is led by the industries that rely on it." The Education and Training (Vocational Education and Training System) Amendment Bill proposes a structural reset of vocational education, focusing on two key priorities: restoring local decision-making for polytechnics, and giving industry greater leadership in standard-setting and work-based learning. Among the key changes in the Bill are: • Disestablishing Te Pūkenga and creating a network of regional polytechnics, which will operate as standalone institutions or within a federation. Te Pūkenga will remain as a transitional entity for one year to manage unallocated programmes and activities. • Replacing Workforce Development Councils with new Industry Skills Boards, effective January 1, 2026. These statutory bodies will be governed primarily by industry representatives and responsible for setting standards, undertaking workforce planning and advising the Tertiary Education Commission on relevant funding matters. • Transferring work-based learning functions from Te Pūkenga to Industry Skills Boards for up to two years, allowing time for new delivery arrangements across polytechnics, private training establishments and Wānanga to be developed. •Amending training levy provisions to enable Industry Skills Boards to levy industry members, subject to industry support. Ms Simmonds said implementation would take up to two years, with the first group of polytechnics and new Industry Skills Boards in place from January 1. — APL
Scoop
20-05-2025
- Business
- Scoop
Bill To Reset Vocational Education Passes First Reading
Press Release – New Zealand Government Today, weve taken a major step forward toward a vocational education and training system that works for learners, employers, industries and local communities, Vocational Education and Training Minister Penny Simmonds says. Minister for Vocational Education Legislation to disestablish New Zealand's centralised vocational education and training system has passed its first reading in Parliament, Vocational Education and Training Minister Penny Simmonds says. 'Today, we've taken a major step forward toward a vocational education and training system that works for learners, employers, industries and local communities,' Ms Simmonds says. 'The Bill, which has passed its first reading, will return decision-making to where it belongs — in the hands of regional polytechnics and industry. 'This is a commonsense reset that ensures polytechnic education and training is responsive to regional needs and work-based learning for apprentices and trainees is led by the industries that rely on it.' The Education and Training (Vocational Education and Training System) Amendment Bill proposes a structural reset of vocational education, focusing on two key priorities: restoring local decision-making for polytechnics, and giving industry greater leadership in standard setting and work-based learning. Among the key changes in the Bill are: Disestablishing Te Pūkenga and creating a network of regional polytechnics, which will operate as standalone institutions or within a federation. Te Pūkenga will remain as a transitional entity for one year to manage unallocated programmes and activities. Replacing Workforce Development Councils with new Industry Skills Boards, effective 1 January 2026. These statutory bodies will be governed primarily by industry representatives and responsible for setting standards, undertaking workforce planning, and advising the Tertiary Education Commission on relevant funding matters. Transferring work-based learning functions from Te Pūkenga to Industry Skills Boards for up to two years, allowing time for new delivery arrangements across polytechnics, private training establishments, and Wānanga to be developed. Amending training levy provisions to enable Industry Skills Boards to levy industry members, subject to industry support. Ms Simmonds says implementation will take up to two years, with the first group of polytechnics and new Industry Skills Boards in place from 1 January 2026. 'Industry knows the skills it needs. That's why we're putting them back in charge of standard setting and qualification development for their industry,' Ms Simmonds says. 'This is about building a stronger, more relevant system — one that sets our people and our economy up for future success. 'We look forward to hearing what New Zealanders think during the select committee process so that we can get on with the changes.'
Scoop
20-05-2025
- Business
- Scoop
Bill To Reset Vocational Education Passes First Reading
Hon Penny Simmonds Minister for Vocational Education Legislation to disestablish New Zealand's centralised vocational education and training system has passed its first reading in Parliament, Vocational Education and Training Minister Penny Simmonds says. 'Today, we've taken a major step forward toward a vocational education and training system that works for learners, employers, industries and local communities,' Ms Simmonds says. 'The Bill, which has passed its first reading, will return decision-making to where it belongs — in the hands of regional polytechnics and industry. 'This is a commonsense reset that ensures polytechnic education and training is responsive to regional needs and work-based learning for apprentices and trainees is led by the industries that rely on it.' The Education and Training (Vocational Education and Training System) Amendment Bill proposes a structural reset of vocational education, focusing on two key priorities: restoring local decision-making for polytechnics, and giving industry greater leadership in standard setting and work-based learning. Among the key changes in the Bill are: Disestablishing Te Pūkenga and creating a network of regional polytechnics, which will operate as standalone institutions or within a federation. Te Pūkenga will remain as a transitional entity for one year to manage unallocated programmes and activities. Replacing Workforce Development Councils with new Industry Skills Boards, effective 1 January 2026. These statutory bodies will be governed primarily by industry representatives and responsible for setting standards, undertaking workforce planning, and advising the Tertiary Education Commission on relevant funding matters. Transferring work-based learning functions from Te Pūkenga to Industry Skills Boards for up to two years, allowing time for new delivery arrangements across polytechnics, private training establishments, and Wānanga to be developed. Amending training levy provisions to enable Industry Skills Boards to levy industry members, subject to industry support. Ms Simmonds says implementation will take up to two years, with the first group of polytechnics and new Industry Skills Boards in place from 1 January 2026. 'Industry knows the skills it needs. That's why we're putting them back in charge of standard setting and qualification development for their industry,' Ms Simmonds says. 'This is about building a stronger, more relevant system — one that sets our people and our economy up for future success. 'We look forward to hearing what New Zealanders think during the select committee process so that we can get on with the changes.'
Scoop
24-04-2025
- Business
- Scoop
Energy Resources Aotearoa Welcomes New Industry-Led Work-based Learning Model
Energy Resources Aotearoa has welcomed Vocational Education Minister Penny Simmonds' announcement today confirming the introduction of an independent, industry-led model for work-based learning from 1 January 2026. John Carnegie, Chief Executive of Energy Resources Aotearoa, says the announcement reflects strong industry feedback and is a positive step forward for vocational education in New Zealand. "It's great to see the Government listening to industry and confirming the 'independent learning model' that we and others have strongly advocated for," says Carnegie. "This approach recognises the importance of relevant, fit-for-purpose training that meets the real needs of employers and learners." Carnegie says the energy sector, in particular, has faced challenges under the current system. "In the past, the energy industry has had to work across two different standard-setting bodies, creating fragmentation and inefficiencies. We would like to see a cohesive Industry Skills Board representing the broad energy sector to ensure consistency and coordination across our workforce needs. This is especially important given the skills deficit and the particular challenges the sector faces to deliver secure, reliable and affordable energy to households and businesses." Carnegie says the timeframe is tight, but the 2026 start date provides some runway to prepare for the transition. "We acknowledge that the timeframe is ambitious, but we also appreciate the clarity that changes will take effect from January 2026. This allows industry and training providers to plan for a smooth shift." Carnegie also highlights the need for more detail on implementation. "We would like to see more detail on how the Industry Skills Boards will be appointed and when this process will begin. It's also important that we get clarity around the structure of these boards, particularly which industries will fall under which board, and how those decisions will be made. This is especially important given the skills deficit and the particular challenges the sector now faces to deliver secure, reliable and affordable energy to households and businesses." Energy Resources Aotearoa looks forward to working closely with Government to ensure the new model delivers high-quality, relevant training that supports a skilled workforce for the energy sector and beyond.
