NZ auto industry welcomes vocational training reform

Major vocational training reform in New Zealand promises to give the automotive sector greater control over apprenticeships and traineeships.

It involves a departure from the centralised model under Te Pūkenga, the country’s Institute of Skills and Technology and aims to ensure work-based programmes are more closely aligned with industry needs and job realities.

The shift toward industry-led vocational training brings New Zealand closer to the Australian model, which has operated with industry influence for decades through Jobs and Skills Councils that work directly with sectors to develop training standards and qualifications.

Despite backing from the automotive sector, the changes have faced criticism including from the Tertiary Education Union that fears the move could favour private training providers over polytechnics in similar ways to the competition in Australia between public TAFE institutions and private Registered Training Organisations.

Critics argue that polytechnics already have a strong presence in the training system and question the additional benefits the change would bring. 

NZ vocational education minister Penny Simmonds confirmed that the new industry-led model would be implemented by January 1, 2026.

This change will establish Industry Skills Boards (ISBs) that, similar to Australia’s Jobs and Skills Councils, will be responsible for setting training standards, moderating assessments and endorsing programmes.

“Whether you’re a carpenter building homes or a mechanic keeping us safe on the roads, it’s crucial that you have the right skills for your job,” said minister Simmonds.

New Zealand’s Motor Trade Association (MTA) supported the shift and is working with the NZ government to ensure a smooth transition.

Describing the minister’s announcement as “short on detail”, MTA chief executive Lee Marshall said he is “cautiously optimistic that she has listened to industry and landed on the best outcome for learners, employers, and the industry”.

Mr Marshall confirmed that the MTA had been assured that the Motor Industry Training Organisation (MITO) would no longer be a part of Te Pūkenga, instead becoming an industry-led and independent body.

It would initially be integrated into the Motor Industry Skills Board (ISB) before becoming fully independent.

“This is what the industry advocated strongly for,” Mr Marshall explained.

The MTA had previously led a taskforce of 30 automotive organisations that unanimously rejected the idea of government-led vocational training.

They argued that only the industry could develop the right framework for equipping learners with real-world skills. 

Mr Marshall said government-led alternatives, which prioritised classroom-based training over hands-on experience, would have been detrimental to the sector. 

“Keeping training in automotive industry hands will better enable employers to shape vocational training, ensuring it remains current and directly aligned with business needs.”

The NZ government’s new approach is hoped to benefit not only the automotive sector but also other industries by providing businesses with more capable workers and boosting productivity.

“It’s great for learners because it makes their learning more relevant to their employment, and it’s beneficial to businesses, which will gain access to more capable workers to boost productivity and deliver economic growth,” minister Simmonds said.

From next year, the new ISBs will have the power to endorse training programmes and set industry standards. 

Apprentices and trainees who are currently under Te Pūkenga will transition to the ISBs for up to two years, while new learners will enrol directly with industry-led providers, polytechnics, or wānanga.

Minister Simmonds claimed there would be no disruption to ongoing training and that current qualifications would remain valid during the transition to the new system.

“If you’re a learner or an employer, keep going. Your qualifications are essential, and your training is valuable. There will be no disruption; your training stays on track,” she said.

As the automotive industry prepares for these changes, Mr Marshall said the MTA will keep working to ensure the new structure delivers its intended outcomes.

“The devil will be in the detail, and our first task is to gain a deeper understanding of what’s intended,” he said.