What is the Government proposing?

There were three areas where the Government sought feedback through the consultation process:

  1. Proposal 1: A return to a regional institute of technology and polytechnics (ITP) network that would see a combination of stand-alone ITPs and others joined in a federation model.‍
  2. Proposal 2: Establishing an industry-led system for standards-setting and industry training (Options A and B)
  3. Proposal 3: A funding system that supports stronger vocational education​


You can find more information on the MoE site.

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.

Benefits for your business

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 to have 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 a replacement for Tama. 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 to 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 the 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 to have 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 a replacement for Tama. 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 to 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 the most.

Keeping skills relevant for career growth

Malcolm has run his small heavy engineering firm in Hamilton for 20 years, training apprentices and this contributes to longevity in their role with Malcolm. When necessary, he supports them travelling to Auckland for training. Though he prefers to train them himself in the workplace, Malcolm acknowledges that his staff might need more up-to-date skills that he does not have the ability to train in, relevant to future roles at other businesses.Mixed-delivery training between business and education providers can better align skills growth with industry needs, making Malcolm more likely to offer his employees qualifications that will add value to his business, 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 and this contributes to longevity in their role with Malcolm. When necessary, he supports them travelling to Auckland for training. Though he prefers to train them himself in the workplace, Malcolm acknowledges that his staff might need more up-to-date skills that he does not have the ability to train in, relevant to future roles at other businesses.

Mixed-delivery training between business and education providers can better align skills growth with industry needs, making Malcolm more likely to offer his employees qualifications that will add value to his business, while also setting up his employees for a more prosperous future.

A reliable and relevant pipeline of skilled workers

Lisa runs a small manufacturing business. Tough economic conditions and stagnant salaries have led some staff in her Christchurch office to resign.Competing larger firms quickly adapt to tech advancements, resulting in efficiencies that improve their bottom line and an ability to attract staff from smaller companies. Lisa knows she needs these advancements to stay competitive but struggles to find skilled workers in Christchurch, because the industry qualifications are not aligned with her current 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 stagnant salaries have led some staff in her Christchurch office to resign.

Competing larger firms quickly adapt to tech advancements, resulting in efficiencies that improve their bottom line and an ability to attract staff from smaller companies. Lisa knows she needs these advancements to stay competitive but struggles to find skilled workers in Christchurch, because the industry qualifications  are not aligned with her current 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 centre 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 centre 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 engage and understand the process, we can offer support.

Let's talk