What’s happening?

Vocational education and training decisions support return to regions

The Government will reshape vocational education and training to return decision making to regions and enable greater industry input into work-based learning Tertiary Education and Skills Minister, Penny Simmonds says.

“The redesigned system will better meet the needs of learners, industry, and the economy. It includes re-establishing regional polytechnics that are financially sustainable,” Ms Simmonds says.

“A strong vocational education and training system contributes to New Zealand’s economic prosperity, and improves work opportunities and wellbeing for individuals, their families, and communities.

“Vocational education and training is crucial to support economic growth in regional economies, and helps retain young people and workers within those regions.”

For the latest information please see the press release published on Friday 20 December here Vocational education and training decisions support return to regions | Beehive.govt.nz

What is happening now?

August to September 2024 - The consultation on the proposed changes took place between August 1 and September 12, 2024. We supported our Industry with an awareness campaign that reached 1.7million people. And we had a strong response from our sectors seeking support for making their submissions.

October to December 2024 - The results are being analysed to guide the Cabinet decisions. Messaging from the Government is that the proposed decision will be published prior to Christmas 2024, once Cabinet approval is obtained.

2025 onwards - The Government plans to announce the final structure and policies for the VET system after the Cabinet reviews the consultation feedback. During 2025 we can anticipate that the Government will carry out further reviews, industry consultations and legislative change as we prepare for transition. The new system is expected to be live from 1 January 2026.

August to September 2024

The consultation on the proposed changes took place between August 1 and September 12, 2024. We supported our Industry with an awareness campaign that reached 1.7million people. And we had a strong response from our sectors seeking support for making their submissions.

October to December 2024

The results are being analysed to guide the Cabinet decisions. Messaging from the Government is that the proposed decision will be published prior to Christmas 2024, once Cabinet approval is obtained.

2025 onwards

The Government plans to announce the final structure and policies for the VET system after the Cabinet reviews the consultation feedback. During 2025 we can anticipate that the Government will carry out further reviews, industry consultations and legislative change as we prepare for transition. The new system is expected to be live from 1 January 2026.

The reform process

The opportunity for public consultation closed on 12 September 2024. However, there will be additional opportunities for input on the new system. Find out the latest updates on the TEC website.

Join the conversation

Benefits for your business

See just how a new vocational education system could help you or your business thrive.

Making it easier to learn on the job

Tama has been in the same role at a dairy business in the Waikato for four years and feels stuck. He is considering a move for a change and a potential pay rise too. His employer is struggling to find more staff and can't afford to change his role until he finds someone to take his role. Sending Tama to a local education provider for training would keep Tama in the business, but it's busy and they need more staff first. Greater access for recognised on-the-job training could help Tama to feel more motivated and valued, and his employer to save valuable time and workforce capacity when he needs it most.

Tama has been in the same role at a dairy business in the Waikato for four years and feels stuck. He is considering a move for a change and a potential pay rise too.

His employer is struggling to find more staff and can't afford to change his role until he finds someone to take his role. Sending Tama to a local education provider for training would keep Tama in the business, but it's busy and they need more staff first.

Greater access for recognised on-the-job training could help Tama to feel more motivated and valued, and his employer to save valuable time and workforce capacity when he needs it most.

Keeping skills relevant for career growth

Malcolm has run his small heavy engineering firm in Hamilton for 20 years, training apprentices who stay with him for years. When necessary, he sends them to Auckland for training. Though he prefers to train them himself on the job, Malcolm acknowledges that his staff might need more up-to-date skills for future roles at other businesses. Co-produced courses between business and education providers can better align taught skills with industry needs, making Malcolm more likely to offer his employees qualifications that will benefit his business (and make it easier to sell when he retires), while also setting up his employees for a more prosperous future.

Malcolm has run his small heavy engineering firm in Hamilton for 20 years, training apprentices who stay with him for years. When necessary, he sends them to Auckland for training. Though he prefers to train them himself on the job, Malcolm acknowledges that his staff might need more up-to-date skills for future roles at other businesses.

Co-produced courses between business and education providers can better align taught skills with industry needs, making Malcolm more likely to offer his employees qualifications that will benefit his business (and make it easier to sell when he retires), while also setting up his employees for a more prosperous future.

A reliable skilled recruitment pipeline

Lisa runs a small manufacturing business. Tough economic conditions and falling salaries have led some staff in her Christchurch office to resign. Larger firms quickly adapt to tech advancements, using them to improve their bottom line and attract staff from smaller companies. Lisa knows she needs these advancements to stay competitive but struggles to find skilled workers in Christchurch, because the qualifications for the industry are not aligned with what her business needs. Larger Auckland firms can afford to train staff in-house, but she relies on finding ready-to-work talent. Standardised qualifications would help Lisa find skilled employees, allowing her to compete more effectively with larger firms, often owned by overseas companies.

Lisa runs a small manufacturing business. Tough economic conditions and falling salaries have led some staff in her Christchurch office to resign.

Larger firms quickly adapt to tech advancements, using them to improve their bottom line and attract staff from smaller companies. Lisa knows she needs these advancements to stay competitive but struggles to find skilled workers in Christchurch, because the qualifications for the industry are not aligned with what her business needs. Larger Auckland firms can afford to train staff in-house, but she relies on finding ready-to-work talent.

Standardised qualifications would help Lisa find skilled employees, allowing her to compete more effectively with larger firms, often owned by overseas companies.

Making industry training accessible for people of all backgrounds

Richard was a skilled machine operator at an industrial manufacturing company. After a workplace injury limited his mobility, he sought to upskill in CNC programming and robotics technology to remain in the industry. However, the nearest training center was in Australia, far from his home, and the costs were prohibitive. Unable to afford the travel and training expenses, Richard remains unemployed and uninspired. His former employer values his contributions and recognises the need for technological advancements but cannot finance his training due to rising costs. Richard hopes for an alternative solution, such as remote training or sessions at local polytechnics, which would provide access to the same level of training available in major cities. This approach would support regional and rural areas, helping businesses stay competitive and upskill their workforce.

Richard was a skilled machine operator at an industrial manufacturing company. After a workplace injury limited his mobility, he sought to upskill in CNC programming and robotics technology to remain in the industry. However, the nearest training center was in Australia, far from his home, and the costs were prohibitive.

Unable to afford the travel and training expenses, Richard remains unemployed and uninspired. His former employer values his contributions and recognises the need for technological advancements but cannot finance his training due to rising costs.

Richard hopes for an alternative solution, such as remote training or sessions at local polytechnics, which would provide access to the same level of training available in major cities. This approach would support regional and rural areas, helping businesses stay competitive and upskill their workforce.

Hanga-Aro-Rau Submission

During the consultation, Hanga-Aro-Rau engaged with a large number of employers and industry stakeholders nationwide. The response to the consultation proposals was valuable and identified clear priorities for MEL industries. This feedback shaped our submission on behalf of you, our Industry stakeholders.

Download submission

Supporting our people and industries

Here at Hanga-Aro-Rau we are working hard to support the 82,000 businesses we represent.

We’re continuing to advocate for the needs and opportunities for Māori, Pacific peoples, women, disabled people, and other underserved communities, whose needs must be considered in the new system design.

To help ensure everyone has the opportunity to have their voice heard, we can offer support.

Talk to us