‘Stoked’ over Apprenticeship Boost

Car-industry organisation praises decision to extend scheme to train new staff.

Posted on 10 May, 2022

The Motor Trade Association (MTA) says the government’s extension of Apprenticeship Boost until the end of 2023 is great news for the automotive industry.

Greig Epps, advocacy manager, says the MTA has been making the case for the scheme to be continued for many months.

“It has enabled many businesses in our sector to take on an apprentice successfully, which means more young New Zealanders in employment and support for businesses at a tough time during the Covid pandemic. It’s more important than ever this continues. Our membership certainly agrees.”

In a survey of members MTA carried out last year, 42 said Apprenticeship Boost helped them to employ a new apprentice, 36 said it helped them to retain existing ones and 30 replied it was essential to support their employment decision.

The MTA wrote to Chris Hipkins, Minister of Education, twice and Finance Minister Grant Robertson to argue the case for Apprenticeship Boost.

“We know we haven’t been the only voice in the government’s ear about this,” says Epps, pictured. “We know the building industry has also benefitted.

“It’s great the government has listened, especially at a time when difficult decisions need to be made.”

While Apprenticeship Boost was originally conceived as relief from coronavirus pressures, the MTA says the demand for apprentices hasn’t diminished. If anything, it has grown.

It can take up to two years for an apprentice to start contributing fully to a business and financial costs are the biggest obstacle to a business wanting to provide such training.

Apprenticeship Boost has enabled employers to retain and take on new apprentices without fear of financial hardship.

The MTA says it’s disappointing the amount of the subsidy has been reduced to $500 a month, but it will still help employers find a place for an apprentice on their books.

“Vocational education doesn’t always get the best deal – it’s referred to as the ‘forgotten classroom’ for that reason,” adds Epps. “We’re stoked it hasn’t been forgotten this time.”