Car industry to head up training

The Motor Trade Association (MTA) is pleased the government has announced work-based training will return to the hands of the automotive industry.

It has been assured by Penny Simmonds, Minister for Vocational Education, that MITO – the training organisation for automotive – will emerge from disestablishing Te Pūkenga, the New Zealand Institute of Skills and Technology, as an industry-owned and led body.

“While the minister’s announcement was short on detail, we are cautiously optimistic she has listened and landed on the best outcome for learners, employers and industry,” says Lee Marshall, pictured, the MTA’s chief executive.

“We’ve spoken directly with the minister. She has assured us that initially MITO will sit temporarily within a specific motor-industry skills board with minimal government influence, then be carved out as a privately owned training organisation.

“This is what industry advocated strongly for and, if confirmed in the detail, we congratulate Penny Simmonds for listening to industry and coming to the best decision.”

The MTA led a taskforce of 30 automotive organisations to give feedback to the coalition on the plans.

The group unanimously rejected government leadership of work-based training. It argued only the industry could develop a framework that supports learners and ensures they are equipped and ready for work.

Keeping training in the car industry hands will also better enable employers to shape vocational training, ensuring it remains current and directly aligned with business needs – benefitting not only the sector and learners, but the wider public.

Marshall adds: “The proposed alternative would have been a giant leap backwards that placed learners in the hands of polytechnics, which would inevitably have prioritised classroom-based tuition instead of learning in a hands-on, real-world environment that we know works best.

“If the government had taken that route, it would’ve been transparently obvious it was simply to make money and prop up failing institutions with no concern for learners.”

The MTA is now looking forward to working with the government and agencies on developing the new structure.

“The devil will be in the detail and the first task is to learn a lot more about what’s intended,” says Marshall.

“But we’re pleased the minister has assured us an independent MITO lead and owned by industry is ahead. We will take her at her word and look forward to working with her on the delivery.”

Securing the right skills

The government announced on April 24 that it will be making changes to work-based learning so industries have more influence over how they train apprentices and trainees.

“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,” says Simmonds.      

“However, industry representatives have made it clear 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 jobs they are working towards. 

“We are fixing this by giving industries more control over how they train people. Beginning next year, the government will introduce a new, independent and industry-led model for work-based learning. 

“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. 

“This is great for learners because it makes their learning more relevant to their employment, and it’s beneficial to businesses which will gain access to more capable workers to boost productivity and deliver economic growth.  

“Public and industry consultation clearly showed this model was the preferred option and this government is proud to deliver the changes that we called for.”

The way forward

From January 1, 2026, the government says: 

• New industry skills boards (ISBs) will be established to set training standards, endorse programmes and moderate assessments.

• Apprentices and trainees currently with Te Pūkenga will move to the ISBs for up to two years.

• New students will enrol directly with new work-based learning private providers, polytechnics or Wānanga.

• ISBs will be able to enrol new learners until other providers are set up to deliver work-based learning.          

Simmons says: “If you’re a learner or an employer, keep going. Your qualifications are essential, and your training is valuable. There will be no disruption, your training stays on track. We’re building a better system for learners, industry and the future of New Zealand.”