MTA wants ‘real debate’
The Motor Trade Association (MTA) is calling for a “real debate” about how training is funded following the government’s announcement of an extension to Apprenticeship Boost for selected industries.
While the organisation has welcomed the stability this week’s decision on the scheme will bring to the motor-vehicle industry, it says employers need more support to reduce its reliance on immigration.
Lee Marshall, chief executive of the MTA, is pleased to see automotive is still eligible for the $500-a-month subsidy, but says it “betrays” a lack of acknowledgement of the costs employers incur in industry training.
He adds: “It’s welcome and every bit helps, but 500 bucks a month is detached from reality.
“One MTA member in the collision-repair sector told us taking on a three-year apprentice costs up to $90,000 in lost productivity and other costs. That would be replicated across other sectors.
“These employers are digging into their pockets to the tune of up $70,000 to take on an apprentice at a time when many are already under financial pressure.”
Marshall, pictured, says the automotive industry wants to hire New Zealanders for roles and strongly supports industry training.
“Employers accept they should carry a cost. But what they get from the government and what they fund themselves is imbalanced and unacknowledged. If employers can’t afford to take on apprentices, they’ll search for qualified technicians overseas. It’s as simple as that.
“Let’s make the next discussion not just about the industries that are eligible, but what does a meaningful contribution from government look like. That’s the approach taken in Australia where fewer industries are assisted by up to $20,000 – a far more realistic amount.”
The MTA recently assembled and led a taskforce of 20 industry organisations to present to government a blueprint for industry-led training that includes greater financial support for employers.
“It’s only under such a structure that learners can get the right training and career pathways, businesses get skilled and trained new staff, and all New Zealanders get a robust, efficient and future-facing automotive sector,” says Marshall.
“In some way, everyone relies on a robust automotive and transport industry. If not enough Kiwis are signing up to join the industry, it flows through to everyone – longer waits for repairs, maintenance and service, increased prices for lack of capacity or businesses forced into closure because of the staff shortage.
“The government must give the industry the support it needs. One key way is to target increases in Apprenticeship Boost to industries in need.”
The MTA’s suggested way forward was extensively reported on in the October 2024 issue of Autofile magazine. Among its recommendations is that MITO becomes an industry-owned and led entity. Click here to access that.
