Confused about where our Vocational Education and Training System is at?

Dieter Adam – 8 July 2024

Before what’s become known as the Reform of Vocational Education (RoVE), the system delivering vocational education and training (VET) was made up of the following

  • TEC (Tertiary Education Commission) managed the budget for all government-funded VET activities
  • ITOs (Industry Training Organisations) had a central function in the development of training content and qualifications; they were also responsible for the accompanying support of apprentices
  • NZQA (New Zealand Qualification Authority) was (and still is) responsible for ‘quality control’ in the system
  • The actual training was delivered by 16 polytechs in different parts of New Zealand. In addition, there were a large number of private providers – PTEs (Private Training Establishments)

n.b. the attached document Rove – an Overview provides more details about the roles of each of the above.

Over the past two parliamentary terms, Labour-led governments committed themselves to a series of far-reaching reforms in key areas (healthcare, vocational education and training, water and wastewater supply), all with the aim of centralising previously regionally or locally administered functions. The opposition, led by the National Party, made reversing these reforms a key part of its campaign for the 2023 election.

RoVE was driven, at least in part, by the fact that the whole system had suffered for years from a severe budget deficit of the 16 polytechs; sometimes less when the labour market was difficult and people were more interested in education and training, and sometimes more when there was a shortage of labour and earning money was more attractive than training.

Behind RoVE there was an Act of Parliament, the Education and Training Act 2020, which enshrined a new distribution of the above tasks:

  • TEC – no change. In an early version of the government’s plans, the authority to decide what training should be funded was to be transferred to the new WDCs (see below) in order to give industry more influence, at least indirectly, over what should be considered worthy of funding. The TEC ultimately successfully resisted this ‘disempowerment’
  • NZQA – no change.
  • Workforce Development Councils (WDCs) – newly created, there (are six in number for the various economic sectors. The one for our sector, Hanga-Aro-Rau, is responsible for Engineering, Manufacturing, and Logistics. The WDCs were to replace the ITOs, which were abolished, with the important difference that the critical function for industry of supporting and managing apprenticeship training (workplace-based learning) was transferred to the newly created institution Te Pukenga (see below)
  • Te Pukenga – newly created. Essentially a merger of the 16 different polytechs under one umbrella with the intention of saving money through consolidation of administration and better co-ordination of apprenticeship and training provision. Of particular significance is the expansion of its remit through the transfer of the function of supporting and delivering workplace-based learning to Te Pukenga. Originally, this function was to be managed in a separate department under the umbrella of Te Pukenga, but was soon fully integrated.

As a side note, in terms of the total number of learners in New Zealand’s VET system, apprentices in the traditional sense and ‘pure’ polytechnic graduates without workplace-based training are usually roughly equal. However, at least in the manufacturing industry, most employers clearly favour candidates with apprenticeship training when recruiting; pure polytechnic training is discredited as ‘remote from practice’. Apprenticeships in New Zealand have a significant ‘freeloading’ problem. Many employers are happy to take on apprentices but do not want to train them themselves. The introduction of a compulsory levy for freeloaders, as has been in place in the UK since 2017 (https://educationhub.blog.gov.uk/2023/03/10/how-are-apprenticeships-funded-and-what-is-the-apprenticeship-levy/ ), is being raised here from time to time, but not seriously considered.

The problem with RoVE was – apart from a 24-month tussle over responsibilities between TEC, the WDCs, and Te Pukenga, which paralysed important functions for months at a time – that the polytechs united under Te Pukenga, which still function(ed) essentially along traditional processes, were in no way up to their newly assigned function of supporting and handling apprenticeship training (workplace-based learning). The reform plans were at least not well thought out and unrealistic in these respects, which caused great frustration among the companies involved in apprenticeship training.

Right now, we are in a period of profound uncertainty. During the election campaign, the parties that make up the current government promised to wind up the WDCs and to reverse the consolidation of the polytechs. And the new government has acted on its promise. In its first 100-day plan after the election it announced the disestablishment of Te Pukenga and the WDCs – without, however, announcing what the new distribution of tasks in the area of vocational education and training should look like. As both Te Pukenga and the WDCs were established by an Act of Parliament, their abolition will presumably require a law change, which will take (many) months. In the meantime, Te Pukenga has been asked by the Minister responsible, the Hon. Penny Simmonds, to continue as is for the time being and to refrain from doing anything that could hinder its future dissolution. Individual polytechs are to be reinstated, but in smaller numbers, which will require regional consolidation, which in turn is likely to run into resistance from local interests. And in the meantime, the financial haemorrhaging continues apace, not to mention the personnel haemorrhaging. Many of those who are attractive to the general labour market have already jumped ship …

The WDCs have received their normal funding for another year in the new budget (July 24 – August 25) – with the request to use the year to prepare for the future … but without any concrete indication of what this future will look like. We need to make sure that our voice is heard, and our input reflected, in what is put in place instead of Hanga Aro Rau, in particular. And we need to make sure that attention to and support and funding for workplace-based learning will be improved, rather than further eroded, during the upcoming (reversal of) changes.

APPENDIX: Background information

1. What was the role of New Zealand’s industry training organisations before the Reform of Vocational Education (RoVE)?

Before the Reform of Vocational Education (RoVE) in New Zealand, Industry Training Organisations (ITOs) played a crucial role in the vocational education and training system. Their primary responsibilities included:

1. Arranging Training: ITOs were responsible for arranging training for apprentices and trainees who were employed. This included supporting employers to provide on-the-job training and working with supervisors to ensure they had the necessary skills to oversee the learning of trainees and apprentices[3].

2. Developing Qualifications: ITOs had a key role in setting industry skills standards and developing New Zealand certificate and diploma qualifications on behalf of the industry. They ensured that the qualifications met the needs of the industry and were consistent across the country[3].

3. Supporting Workplace Learning: ITOs supported workplace learning and assessment for on-the-job vocational education. They developed support materials for on-job learning and, in some cases, purchased training from training providers[3][4].

4. Prohibition from Operating as Providers: ITOs were prohibited from operating as training providers themselves. Instead, they had to purchase any off-job components of the training from other training providers[3].

5. Ensuring Quality and Consistency: ITOs played a role in ensuring the quality and consistency of vocational education and training across different regions and industries. This included moderating assessments and ensuring that the training provided met the required standards[3][4].

With the implementation of RoVE, the functions of ITOs were transitioned to other entities such as Workforce Development Councils (WDCs) and Te Pūkenga, the New Zealand Institute of Skills and Technology, to create a more unified and sustainable vocational education system[1][2][5].

Citations:

[1] https://www2.nzqa.govt.nz/about-us/strategies-projects/vocational-education-system/

[2] https://www.hito.org.nz/about-us/reform/

[3] https://conversation.education.govt.nz/assets/RoVE/Current-System-factsheet-Reform-of-Vocational-Education.pdf

[4] https://conversation.education.govt.nz/conversations/reform-of-vocational-education/

[5] https://oag.parliament.nz/2023/tei-audit-results/part2.htm

2. What is the role of the NZQA?

The New Zealand Qualifications Authority (NZQA) plays a crucial role in maintaining and enhancing the quality of education in New Zealand. Its primary responsibilities include:

1. Managing the New Zealand Qualifications and Credentials Framework (NZQCF): NZQA maintains records of all qualifications, micro-credentials, and standards listed on the NZQCF and the Directory of Assessment and Skill Standards (DASS)[3].

2. Overseeing secondary school assessments: NZQA manages the assessment system for secondary schools, including creating, distributing, and marking exams for NCEA and New Zealand Scholarship[3].

3. Quality assurance of tertiary education: NZQA independently checks the quality of tertiary education providers (except universities) to ensure they meet quality standards[3].

4. Administering the Code of Pastoral Care: NZQA is responsible for administering the Code of Pastoral Care, which outlines how education providers should care for international and tertiary domestic students[3].

5. Recognizing overseas qualifications: NZQA assesses overseas qualifications for equivalency within the New Zealand education system[3].

6. Standard-setting: NZQA sets standards for some unit standards and qualifications, particularly in areas not covered by Workforce Development Councils[3].

7. Supporting international recognition: NZQA works to improve the recognition, understanding, and portability of New Zealand qualifications overseas[1].

8. Maintaining New Zealand’s education reputation: NZQA helps maintain and build on New Zealand’s reputation as a high-quality education provider[1].

9. Supporting lifelong learning: NZQA aims to ensure learners have access to quality training throughout their lives and keeps complete records of their educational achievements[4].

10. Collaborating with other agencies: NZQA works closely with other government agencies such as the Ministry of Education and Education New Zealand to support its mission[1].

Through these functions, NZQA plays a vital role in ensuring the quality, consistency, and international recognition of New Zealand’s education system.

Citations:

[1] https://www2.nzqa.govt.nz/about-us/why-we-are-here/international-role/

[2] https://www2.nzqa.govt.nz

[3] https://www2.nzqa.govt.nz/about-us/why-we-are-here/our-responsibilities/

[4] https://www2.nzqa.govt.nz/about-us/why-we-are-here/

[5] https://www2.nzqa.govt.nz/about-us/working-at-nzqa/

3. What was the Reform of Vocational education in New Zealand?

The Reform of Vocational Education (RoVE) in New Zealand was a comprehensive overhaul of the country’s vocational education and training system, initiated in 2019. Key aspects of this reform included:

1. Creation of Te Pūkenga: The establishment of Te Pūkenga – New Zealand Institute of Skills and Technology, which merged 16 existing institutes of technology and polytechnics into a single national institution[1][5].

2. Disestablishment of ITOs: The 11 Industry Training Organizations (ITOs) were disestablished, with their functions transferred to other entities[2].

3. Formation of Workforce Development Councils (WDCs): Six WDCs were created to take over some of the functions of former ITOs, particularly in setting industry standards and developing qualifications[2].

4. Unified Funding System (UFS): A new funding system was introduced to support the delivery of vocational education and training[2].

5. Focus on work-based learning: The reform aimed to deliver more opportunities for learners to train on-the-job and earn while learning[2].

6. Emphasis on industry needs: The new system was designed to bring together industry, iwi, and educators to deliver a workforce fit for New Zealand’s current and future needs[2].

7. Qualification portability: The reform aimed to ensure that vocational qualifications support learners in transferring their learning across different contexts[2].

8. Quality assurance changes: NZQA reviewed its quality assurance framework to support the changes in vocational education[2].

The RoVE was described as the most significant change to New Zealand’s vocational education system in 35 years[2]. It aimed to create a more unified, flexible, and industry-aligned vocational education system that could better respond to the changing needs of learners, employers, and the economy[1][2][5].

Citations:

[1] https://ojs.victoria.ac.nz/nzaroe/article/view/8034

[2] https://www2.nzqa.govt.nz/about-us/strategies-projects/vocational-education-system/consultation/

[3] https://www.tec.govt.nz/vocational-education/vocational-education/

[4] https://conversation.education.govt.nz/conversations/reform-of-vocational-education/about-the-reform-of-vocational-education/

[5] https://conversation.education.govt.nz/assets/RoVE/Reform-of-Vocational-Education-Consultation-Discussion-Document.pdf

4. What is the role of the new Workforce development councils?

The new Workforce Development Councils (WDCs) in New Zealand play a crucial role in shaping the vocational education and training system. Their key responsibilities and functions include:

1. Skills leadership: WDCs set a vision for the workforce and influence the vocational education and training system through skills leadership plans[1].

2. Industry standards and qualifications: They take over some key functions of the former Industry Training Organizations (ITOs), particularly in ensuring qualifications meet industry standards[1][5].

3. Programme assessment: WDCs decide whether vocational education programmes are fit for purpose, regardless of whether they are on-the-job, on-campus, or online[1].

4. Programme endorsement: They endorse programmes leading to qualifications, which is essential for programme approval and funding[1].

5. Advisory services: WDCs provide employers with brokerage and advisory services[1].

6. Funding advice: They provide advice to the Tertiary Education Commission on funding decisions[1].

7. Collaboration: WDCs engage with Regional Skills Leadership Groups, Tertiary Education Commission, New Zealand Qualifications Authority, and other relevant bodies to ensure alignment of vocational education with industry needs[3].

8. Curriculum oversight: They focus on ensuring the curriculum of vocational education meets the needs of trade industries[4].

9. Industry voice: WDCs give industry and employers greater leadership and influence across vocational education[2].

10. Quality assurance: They are involved in the national external moderation of assessment standards[2].

It’s important to note that while WDCs have taken over some functions of ITOs, they are not directly involved in arranging apprenticeships and other on-the-job training. This function has moved to other providers such as Te Pūkenga, wānanga, and private training establishments[1].

Citations:

[1] https://www.tec.govt.nz/assets/Forms-templates-and-guides/RoVE-WDC-Fact-Sheet-v2.pdf

[2] https://ohuahumahi.nz

[3] https://ohuahumahi.nz/about-the-workforce-development-councils/

[4] https://schools.competenz.org.nz/te-pukenga/workforce-development-councils/

[5] https://businessnz.org.nz/workforce-development-councils-a-key-development/

5. What is Te Pukenga?

Te Pūkenga – New Zealand Institute of Skills and Technology

Largest vocational education provider in New Zealand

Formation and Purpose

  • Formed by the merger of New Zealand’s 16 Institutes of Technology and Polytechnics (ITPs) on 1 April 2020 to create a unified vocational education system.

Legislative Framework

  • Governed by the Education (Vocational Education and Training Reform) Amendment Act 2020, which restructured the vocational education and training system.

Size and Scope

  • Nearly 13,000 staff and 240,000 students across a variety of training programs including apprenticeships.

Dissolution Plans

  • As of December 2023, a national decision was confirmed to dissolve Te Pūkenga and transition to 8-10 separate institutions.

Te Pūkenga – New Zealand Institute of Skills and Technology is the largest vocational education provider in New Zealand, established as part of the Reform of Vocational Education (RoVE) initiative. Key aspects of Te Pūkenga include:

1. Merger of institutions: It brought together 16 institutes of technology and polytechnics (ITPs) and nine industry training organizations (ITOs) into a single national institution[2][3].

2. Scale: Te Pūkenga has approximately 13,000 staff, 240,000 students, and assets worth NZ$2 billion[3].

3. Unified system: It aims to provide a unified, sustainable public network of regionally accessible vocational education[2].

4. Flexible learning: Te Pūkenga offers work-based, campus-based, and online learning options, allowing learners to shift between these modes as needed[2].

5. Industry focus: It emphasizes collaboration with industry to ensure vocational education meets workforce needs[1].

6. Legal framework: Te Pūkenga operates under the Education (Vocational Education and Training Reform) Amendment Act 2020[3].

7. Current status: As of December 2023, Te Pūkenga is in a process of disestablishment following a change in government direction. The new government intends to dissolve Te Pūkenga and replace it with 8-10 regional institutions[1][3].

8. Transition period: Despite the planned disestablishment, Te Pūkenga continues to operate, ensuring that current students can complete their studies and new enrollments are still being accepted[1][5].

Te Pūkenga represented a significant shift in New Zealand’s vocational education landscape, aiming to create a more integrated and responsive system. However, its future structure is now subject to change as the government moves towards a more decentralized approach.

Citations:

[1] https://www.tepūkenga.ac.nz

[2] https://www.tec.govt.nz/vocational-education/vocational-education/delivering-vocational-education/te-pukenga/

[3] https://en.wikipedia.org/wiki/Te_P%C5%ABkenga

[4] https://www.nzqa.govt.nz/providers/details.do?providerId=604421001

[5] https://www.unitec.ac.nz/about-us/te-pukenga

6. How does the New Zealand apprenticeship system work?

The New Zealand apprenticeship system, known as New Zealand Apprenticeships (NZAs), is a formal work-based training programme that combines on-the-job experience with theoretical learning. Here are the key aspects of how it works:

1. Structure: NZAs are open to anyone aged 16 years and over. They typically take 3-4 years to complete and lead to a Level 4 qualification or higher[1][3].

2. Parties involved: There are three main parties in an apprenticeship – the apprentice, the employer, and the tertiary education provider[1].

3. Employment requirement: Apprentices must be employed in the occupation for which they are training[3].

4. Qualification: The apprenticeship must result in either a Level 4 New Zealand qualification of at least 120 credits, or two or more qualifications totaling at least 120 credits (with at least 60 credits at Level 4)[3].

5. Training plan: A training plan is developed and agreed upon by all three parties. This plan outlines the qualification to be achieved, required standards, key skills, training process, and assessment arrangements[1].

6. Support and mentoring: Tertiary education providers are responsible for arranging training programmes and providing support throughout the apprenticeship. This includes regular site visits, organizing attendance at block courses, study groups, and night school classes if appropriate[4].

7. Funding: There are various funding options available to help with the costs of taking on an apprentice[4].

8. Code of Good Practice: All parties are expected to comply with the Code of Good Practice for New Zealand Apprenticeships, which outlines the responsibilities and expectations of each party[1][3].

9. Industry alignment: Apprenticeships are designed to meet industry needs and ensure that upon completion, an apprentice is “work competent” for their occupation[3].

10. Regulatory compliance: The apprenticeship must meet any regulatory requirements for entry into the occupation[3].

This system aims to provide a premier vocational pathway with quality support for all apprentices, ensuring they gain both practical skills and theoretical knowledge relevant to their chosen trade.

Citations:

[1] https://www.tec.govt.nz/teo/working-with-teos/kis/new-zealand-apprenticeships/code-of-good-practice-for-new-zealand-apprenticeships/

[2] https://www.primaryito.ac.nz/assets/PDFs-Apprenticeships/Code_of_Practice_for_Apprentices_Pan600D01.pdf

[3] https://www.tec.govt.nz/teo/working-with-teos/kis/new-zealand-apprenticeships/

[4] https://www.competenz.org.nz/employers/how-apprenticeships-work

[5] https://www.careers.govt.nz/courses/find-out-about-study-and-training-options/apprenticeships/

2 responses to “Confused about where our Vocational Education and Training System is at?”

  1. Brian Willoughby Avatar
    Brian Willoughby

    Thank you Dieter for this extensive summary.

    The freeloaders are a problem that must be addressed. When you get to the stage where you employ your first apprenticeship qualified tradesperson, if you are not also training an apprentice you should be paying a fee to assist those that are.

    The apprenticeship contracts that bond an apprentice should be re-introduced. The year that was stopped we had four apprentices, and we lost three of them to employers that were paying more. We didn’t take on any more apprentices for many years after that. We restarted and have three staff members now that have all completed their apprenticeships here, but over the past three years we lost two that were a year into their training. One for higher wages. One because they had a perception that they weren’t valued enough. Both of them went to places where their trade skills will not be close to what they would have learned here. In both cases we would at least had to have a discussion in the presence of the “Apprenticeship Commissioner’ under the old system to resolve things. I’m certain at least one of them would have stayed. The other one I would have let go happily. Everyone loses out in these circumstances, not least the apprentice.

    Finally though some good news. We have had two staff go through training at Ara in different fields – not apprenticeships. The training in one case was dreadfully difficult to navigate initially because the skills we required were not being taught in a structured, part time, manner. Having got past that, more than a year later, the results have been excellent for both students and us.

    Sadly, we’re too gun shy to take on another apprentice in the machine tool workshop. I’m not sure how many apprentices we’ve trained to completion over almost 50 years across two industries, but it must be in excess of 20. The old ones often still come by, some when returning from overseas on holiday. There’s something seriously wrong when we’re not game to keep it up. Especially since we recognise that the only way we can build excellence in their skills and work ethic is if we train them ourselves.

    I would love to hear input about this from our other members that do train apprentices – or really any other training. We need to get feedback to those that will be making the next changes.

    Regards.
    Brian Willoughby

  2. […] In our advocacy work and as part of the New Zealand Manufacturing Alliance, we are currently focusing on two areas: securing access to reliable energy supplies at affordable prices (see also below), and ensuring that support for workplace-based learning isn’t further eroded in the course of the government’s unwinding of RoVE. You’ll find more of the latter here: https://makenz.org/2024/07/08/confused-about-where-our-vocational-education-and-training-system-is-a… […]

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