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Significant Lift In Funding For Industry Training

22 May 2002
Budget 2002

Industry training will receive an additional $14 million over the next four years in tomorrow’s budget, Prime Minister Helen Clark and Associate Minister of Education (Tertiary) Steve Maharey announced today.

Delivering the closing address to the Work in Progress international vocational education and training conference in Wellington today, Helen Clark said the extra funding will mean total government support for industry training in the coming year will have increased by nearly 48 per cent since the government took office.

“The Industry Training Fund increased by $8 million to $78 million in the current financial year, and was due to increase by a further $8 million to $86.7 million in 2002-03.

“The government has decided to lift further the investment through the Industry Training Fund by an extra $14 million over the next four years. That will increase the Fund to $88.72 million in 2002-03 and to $90.72 in 2003-04 and out years.”

The industry training budget in1999-00 was $60 million.

“There are now more New Zealanders participating in industry training than at any time in our history. Last year over 95,000 people were involved in industry training, compared with 81,000 trainees in 2000,” Helen Clark said.

The new funding, which is in addition to the $41 million announced at the weekend to double the number of Modern Apprenticeships, will see the number in work-based traning grow even further.

“The Labour-Alliance Government has made significant new investments in industry training in each of its budgets because the sector is a key generator of the skills we need for a succesful and prosperous economy,” Helen Clark said.

Steve Maharey said those in industry training often came from educationally-disadvantaged backgrounds and the chance to gain national qualifications while in the workforce was highly prized.

“More than 80 per cent of the workforce in 2010 are already working. It is therefore essential that we provide on-going workplace learning opportunities for these people to constantly improve and refresh their skills and knowledge.

“Reflecting this commitment, the government has also agreed in principle to introduce changes to the way industry training is funded.

“Over the years 2002-03 to 2004-05 we will phase in an annual adjustment to the baseline funding for industry training to allow for changes in the total number of trainees to be funded, similar to the funding arrangements for other parts of the tertiary education sector,” Steve Maharey said.


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