Reform of Vocational Education
Business Central and Wellington Chamber of Commerce Submission
- Improvements to vocational education are required. But, overall, we consider the proposals contained in this discussion document are not the ideal solution. The new model would be a one-size-fits all solution hinging on the creation of a single monopoly ITP provider. Such a large transformation of the sector introduces its own execution risks, particularly within such a small timeframe before 1 January 2020.
- Our greatest concern is that employers lose confidence in the apprenticeship system because of this uncertainty and pull-back, even temporarily, from investing in employee training. Such a disruption to New Zealand’s skills pipeline could have a macro-economic impact at a time when we are already suffering from skills shortages.
- The stated benefits of the new model, namely greater employer voice, financial sustainability, industry choice and greater agility, are not thoroughly explained. In our view, there are key risks as to why each of these benefits will not be fully realised. The dilution of the employer’s voice by making Industry Skills Bodies just one of many advisory agencies to TEC and the new NZIST is a major weakness.
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