First industry training 'excellence centre' rolled out with help of $18m funding

Thursday, 22 August 2019

The Government has allocated $18 million to new 'centres of excellence' as it overhauls construction and vocational industry training.

The controversial reforms will eventually bring all industry training organisations (ITOs) under one national polytechnic.

Industry Training Federation chief executive Josh Williams echoed the concerns of up to 148 businesses which had written a letter opposing the reforms because they believed industry-owned ITOs provided the best results.

The building sector is coming to grips with training reforms.

Construction Minister Jenny Salesa and Education Minister Chris Hipkins Building who launched the construction centre of excellence said it would drive innovation and strengthen links between education providers and industry.

* Shock, apprehension and hope: Can the radical plan to fix New Zealand's polytechnics work?

* Taratahi new Primary ITO training provider in south**

However Williams said changes to vocational education must be managed carefully and New Zealand needed to build on the efficiency and success of the existing ITO-led system to ensure employers continued to have confidence in training.

In 2018, ITOs supported more than 50,000 apprentices and 88,000 industry trainees.

According to figures provided by Williams, employers currently qualify 45,000 people a year through the ITO system, at a cost to taxpayers of $3500 per qualification.

Williams said it cost $18,000 per qualification through private training establishments, and $19,800 through the institutes of technology and polytechnics.

The cost difference was due to employers contributing their time, equipment, and money to train people through the workplace, Williams said.

'Trainees and apprentices earn and learn, rather than draw on student loans and allowances,' Williams said.

Earlier this month the Government announced a centre of excellence for primary industry training, and a third for health services is being considered.

Some trade training begins at High School level.

Warwick Quinn, chief executive of the Building and Construction Industry Training Organisation (BCITO) welcomed the news but said plans were 'embryonic'.

He expected the first CoVE to be under way by the end of this year.

'We're not quite sure yet how it will track but the focus of the reforms is to build a national body to look after on and off the job training.

'We are just too small a country to have so much duplication.'

Quinn said an example was prefabrication training which was shared across five ITOs.

Having a CoVE focus on what was required and developing best practice and sharing it was preferable to many providers doing it poorly.'

According to 2017 Ministry of Education figures there were 140,000 trainees and apprentices and approximately 110,000 vocational education learners.

Quinn said setting up the construction Centre of Excellence (CoVE) was especially important for small firms.

'Delivering training is a real challenge for small firms. The construction industry employs more than 250,000 people but 91 per cent of the companies have five staff or less.

The $18m funding is over four years for the construction, primary industry and health CoVes with the locations and functions yet to be decided.

The main aims will be to share curriculum design, research and training support with employers and providers, minimise cost and duplication, strengthen pathways into education, including from school.

Quinn said the CoVE groups were likely to be set up in regional centres and would most probably include some permanent staff but other people might be brought in to achieve a particular goal.

He said questions remained about how CoVEs will interact with training providers.

Skills in the construction sector were in high demand with 80,000 new workers required over the next five years.