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Giving industries more control The Government’s announcement that it will adopt a new model for work-based learning has received a mixed reception from educators and industry leaders. The move comes after the government announced it’d disestablish Te Pūkenga. From 1 January 2026, Industry Skills Boards will oversee training and temporarily enrol apprentices as Te Pūkenga […]
The Government’s announcement that it will adopt a new model for work-based learning has received a mixed reception from educators and industry leaders.
The move comes after the government announced it’d disestablish Te Pūkenga. From 1 January 2026, Industry Skills Boards will oversee training and temporarily enrol apprentices as Te Pūkenga transitions, while new students will enrol with private providers, polytechnics, or Wānanga.
Privatising the industry has raised concerns for some educators about quality and accessibility, and whether profits or outcomes will be prioritised, while others welcome the shift as a way to better align training with workforce needs.
“Whether you’re a carpenter building the warm, dry homes of tomorrow, or a mechanic working to keep us safe on the roads, it’s important you have the right skills to do your job effectively,” Vocational Education Minister Penny Simmonds says.
“However, industry representatives have made it clear that the current work-based learning model is not delivering because it has become overly centralised through Te Pūkenga. As a result, the training of apprentices and other workers is often disconnected from the realities of the jobs they are working towards.
She says these changes to work-based learning come so that industries have more influence over how they train apprentices and trainees.
“We are fixing this by giving industries more control over how they train people.
“This means vocational education and training providers will be able to manage all aspects of an apprenticeship or traineeship at an industry level, rather than taking direction from a centralised behemoth.
“Public and industry consultation clearly showed that this model was the preferred option, and this Government is proud to deliver the changes that we called for.”
Government announcements on work-based learning appear to recognise the importance of industry leadership in vocational training, but the timeframe for standing up a new system is very tight and more clarity is needed to ensure a smooth transition, says Business New Zealand Chief Executive Katherine Rich.
“As the system is pivoted back toward having more industry involvement in qualifications and quality assurance, it is important the Government works with industry closely to ensure that both businesses, apprentices, parents and training providers can have confidence in what the future system will look like.
“We need to ensure that in the transition, employers can work with the training provider that delivers best for their company.
“The new system is due to stand up on 1 January 2026, and we need clarity on the number of organisations, functions of the new organisations and funding to support businesses delivering industry training.
“Countries with high productivity have gold standard training and apprenticeship systems. Industry training is the most efficient and effective way to train with high employment rates post-graduation. With the significant outflow of skills over the last year, we need to build the skills pipeline and make it easy for employers to develop a highly skilled workforce to support economic recovery and growth.”
The New Zealand Council of Trade Unions Te Kauae Kaimahi (NZCTU) is warning that the Government’s decision will “lead to massive disruptions and instability in an already fatigued sector”.
“The NZCTU remains fundamentally opposed to these reforms, which will create further disruption across the sector and come off the back of a period of disruption and change in the sector over the past five years,” said NZCTU Acting President Rachel Mackintosh.
“We are concerned by the impacts that another several years of change processes will have on the sector, learners, and industries.
“Our major concern regarding the model that the Government is adopting is the risk of the creation of new private agencies competing for public funding within the sector; this model has not served New Zealand well in the past.
“Profit motives drive instability in education, and it is not a good use of resources to have multiple agencies competing for funding as they must focus attention on securing funding at the expense of focusing on delivery for learners.
“The whole process for these reforms has been flawed. There is no reason why the consultation needed to have such a narrow scope, excluding critical stakeholders, and key subject matter experts.
“The Minister’s insistence on pushing ahead with these poorly thought-through reforms is likely to create several more years of instability in the sector, and more uncertainty for learners, industries, and the vocational education and training workforce,” said Mackintosh.
