Training scheme ‘permanent’

Labour will spend $420 million over four years to make Apprenticeship Boost permanent, if re-elected in October.

Introduced during the Covid-19 pandemic, the scheme pays employers $500 per month for the first two years of apprenticeships to support training staff.

It has contributed to a 61 per cent increase in the number of apprentices over the past three years.

Prime Minister Chris Hipkins, who announced the pledge at the party’s congress in Wellington on May 28, says: “Training more New Zealanders creates opportunities and good jobs, and reduces our reliance on offshore workers to plug skills shortages.
“Immigration remains important, but we shouldn’t have to rely on getting the skills we need from overseas.”

Making the scheme permanent will cost $6m in 2024/25 and then $120m each year for the following three years.

Hipkins was quick to point out the number of apprentices dropped under National between 2008 and 2011. “Labour is the party for apprentices, backing the tradies of tomorrow.” 

It was only in this month’s budget that Jan Tinetti, Minister of Education announced Apprenticeship Boost will carry on through until the end of 2024 instead of ending this year.

As of March 2023, 57,040 apprentices have been supported through the scheme with its extension being backed by the Motor Trade Association.