‘Young people are future of industry’

A $77 million extension to Apprenticeship Boost is welcome news for the automotive industry, says the Motor Trade Association (MTA).

The scheme supports employers taking on apprentices by paying $500 a month for the first two years.

“Young people are the future of our industry,” says Brian Anderton, pictured, the MTA’s advocacy and stakeholder manager. 

“Apprenticeship Boost makes it easier for a business to take on an apprentice by shouldering some of the expense until that apprentice is up to speed. Our members tell us that, especially in a tough year like this one, Apprenticeship Boost can be the difference between taking an apprentice on or not.”

MTA has long championed the scheme. According to MITO, the number of new automotive apprentices grew by 31 per cent from 1,425 to 1,862 between 2019 and 2021. As of March 2023, 57,040 had been supported through the initiative, says the government.

The scheme was scheduled to end this year, but an extension to the end of 2024 was included in Budget 2023.

“As recently as last week, in our election year publication Driving New Zealand, we called on the government to extend Apprenticeship Boost,” says Anderton. “While we appreciate the extension until next year, we actually think it should be made permanent.”

The MTA says the news will be welcomed by employers too. “We know the labour shortage is the number one issue keeping our members awake at night. They simply can’t find enough people for the roles available.

“Our members want to hire New Zealanders where they can. They want to encourage young people to join the industry and see the great opportunities that exist. There’s a lot more to be done, but this announcement helps.”