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The review of industry training in New Zealand is a key part of the Government’s commitment to making the tertiary education and training sector more responsive to the needs of our nation. The Tertiary Education Advisory Commission’s report, Shaping the Future, proposes a significant revamp for the tertiary sector to create a better alignment between the sector and the needs of a knowledge society.
The Industry Training Review, Skills for a Knowledge Society, focuses in detail on the industry training part
of the tertiary sector and explores ways of improving its effectiveness.
New Zealand needs an integrated skills strategy which supports the growth of a knowledge economy. A highly skilled workforce is the essential foundation for our economic growth and social well-being. New Zealand’s industry training system of the future must:
Overall, New Zealanders already invest substantially in industry training. Our numbers in job-related training
have increased greatly in recent years, with 63,000 people currently in industry training. The challenge now is to build on what we have achieved and to extend industry training to more people in a wider range of industries and occupations. There are also other key issues that need attention, such as the quality of training and the extent to which training anticipates emerging skill needs. SKILLS FOR A KNOWLEDGE ECONOMY deals with the following issues: Improving responsiveness The review looks at ways to improve access to training and the responsiveness of the training system. Industry Training Organisations (ITOs) are the driving force of the system. Their ability to respond effectively to the needs of industry and a knowledge society is critical to the future health of our industry training system. A number of strategies are discussed for improving ITO responsiveness. These range from increasing incentives for ITOs to be more responsive through to a more substantial change to the system to allow employers and employees to choose which ITOs arrange their training. The option is also discussed to strengthen employee involvement in ITOs so that issues of employee concern are not overlooked. Funding industry training The review proposes several approaches for the future funding of industry training in New Zealand. One issue is the ongoing basis of government funding – whether to retain a capped fund, or to adopt a demand-led funding system, as is used for more other areas of the tertiary sector. Another issue is the way in which industry contributes towards the costs of industry training. ITOs could be given the power to ballot the firms in their industry and recommend a levy if the majority is in favour, to ensure that all firms are making their contribution to industry training. The review also raises the possibility of funding more advanced training, at levels 5 to 8 on the National Qualifications Framework. This would allow assistance for higher level managerial and technical training and provide workers with stronger links to the rest of the tertiary sector. Targeting training funds for specific groups, such as small businesses and those who are geographically isolated, is a further possibility discussed in the review. Generic transferable skills New Zealand’s workforce needs a high level of generic, transferable skills. This is essential to give our workforce the flexibility it needs to meet the challenges inherent in a knowledge economy. The review discusses ways of increasing the development and use of generic standards in industry training, while acknowledging that the success of the system to date has been based on delivering industry-specific skills. Raising foundation skills A disturbing number of New Zealanders do not have the foundation skills of literacy and numeracy that are essential for most jobs. The review presents a number of options for boosting foundation skills training, including funding this area at a higher rate than other training, setting up a separate fund for foundation skills training and including a literacy/numeracy component in entry-level qualifications. Better information for decision-makers The review identifies the collection and analysis of skill development and labour market information as a key to improving efficiency and decision-making in our training system. Currently a large amount of information is collected by diverse organisations but there is a need to improve coordination between them and to make this information widely available to ITOs and employers. The focus for improvement could be on better coordination between agencies, or on giving one agency overall responsibility for the collation of information. There could also be stronger requirements on ITOs to provide information on current and future skill needs. Implications for government agencies
Finally, the review identifies the need for government to consider whether it has the right structures in place to
support the industry training system. Once policy decisions about the industry training system have been made, it will be necessary to consider what enhancements are needed to current government services, or to the way they are coordinated.
Copies of SKILLS FOR A KNOWLEDGE ECONOMY are available from:
The review is also available on:
SUBMISSIONS ON THE INDUSTRY TRAINING REVIEW CLOSE ON 11 APRIL 2001.
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