Don't cut trade training support

Don't cut trade training support - 22 October

Skill shortages are likely to reappear with the Government removing $55 million from apprenticeship training and reallocating it to fund university places say the New Zealand Manufacturers and Exporters Association (NZMEA). There are problems with the industry training structure which has meant that numbers on these courses have been down, but these problems must be addressed not swept under the carpet. This report details some of the issues.

NZMEA Chief Executive John Walley says, "Before the cut apprentice training was underfunded meaning that the costs are prohibitively high for employers even in the good times. It can take four years for apprentices to become fully productive and there is no guarantee that the apprentice will stay with their employer at that point."

In 2008, 55% of the tertiary education funding was given to the universities and they are responsible for 27% of the students; industrial training organisations received 8% of total government funding, combined with cash contributions from industries, and they trained 46% of the students.

"Trade and technician skills feed through immediate benefits to industry, the community and the economy. In hard times short term needs take precedence but down the track low levels of apprentice training will be a major problem. We went through this in the early 1990´s and that hole has not yet been repaired. Trade training has significant spillover benefit and this should be recognised through more support for this effort not less."

"High levels of productivity are essential for sustainable growth and trade skills are one of the main drivers for productivity, especially for a country like New Zealand with a small population. More effort is required to ensure that the trade training is viable for employers by increasing the support for trade training via the Industry Training Organisations."

ENDS

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