Industry training organisations (ITOs) co-ordinate structured on- and off-the-job training for employees, enabling them to gain New Zealand Qualifications Framework (NZQF) qualifications while earning money. ITOs are owned by industries, are recognised by the government, and receive funding from both.
In 2011 funding was allocated to 38 ITOs covering most New Zealand industries, from traditional trades like building and plumbing, the primary industries and manufacturing and retail, through to government and community services.
ITOs are formally recognised under the Industry Training Act 1992 and the Education Act 1989, which provide for them to be partially funded by the Crown via the Tertiary Education Commission (TEC) and Investment Plans. ITOs differ from other tertiary education organisations in that they do not deliver industry training themselves. Instead, they:
The Tertiary Education Strategy (TES) defines the core roles and expectations of ITOs as:
In 2011, ITOs received $151.3 million in government
funding – 6% of
its total spending
on tertiary education organisations
|Core roles||Government expectations|
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ITOs contribute to advancing the Government’s TES priorities by:
A number of operational policy changes were made to improve the link between funding and performance, and to focus funding on industry training with wider economic benefits
In 2011 a number of policy changes were made to improve the link between funding and performance, and to focus funding on training that brings wider economic benefits.
Key challenges and factors influencing ITOs included:
In 2011 a total of 140,056 (45,074 standard training measures) trainees participated in industry training. This dropped from 2010, partially attributable to a lower uptake of training in line with lower employment rates.
Clarification of 2010 industry training participation
In 2011 TEC introduced a new data collection system and reporting rules for ITOs and compiled the information in a new Industry Training Register (ITR). This has improved reporting and data quality, but makes it difficult to compare directly ITO data for 2011 with the information previously published for 2009 and 2010.
For the sake of comparability, TEC has recalculated industry trainee numbers for 2010 with the new approach used for 2011. This removes duplicate and unfunded trainees and results in a more accurate industry trainee count of 168,798 across the ITO sector in 2010 versus the 195,963 originally recorded. The revised figure should be borne in mind when comparing overall industry trainee numbers in 2010 with those for 2011.
In 2011, the majority of ITO training was at Levels 3–4 (62%). While there has been a decrease in trainees across all levels, the spread of training by level remained similar to previous years.
Aggregate data for Māori and Pasifika trainees are presented in Figure 56, and are discussed in more detail in the Performance against TES priorities section below.
The ITO sector has committed to improving trainees’ credit achievement and programme completion, and performance on these factors improved in 2011.
TES Priority: Increasing the number of young people (aged under 25) achieving qualifications at Level 4 and above, particularly degrees
Trainees under 25 years of age accounted for 32 percent of total ITO enrolments in 2011. This youth cohort achieved 79 percent for credit achievement and 72 percent for programme completions in 2011. These results improved from 2010, at least in part as a result of the sector’s commitment to improve completion rates.
In 2011 youth participation at Levels 4 and above accounted for 15 percent of total youth in industry training (21,627 trainees). Achievement across this group was higher than for the overall youth cohort in industry training, with youth achievement at Levels 4 and above at 86 percent for credit achievement and 83 percent for programme completions.
TES Priority: Increasing the number of Māori students enjoying success at higher levels
Māori continued to make up 17 percent of the ITO sector’s trainees in 2011. Māori educational performance improved from 2010: credit achievement rose from 55 percent in 2010 to 62 percent in 2011, while programme completion by Māori improved from 46 percent to 56 percent.
TES Priority: Increasing the number of Pasifika students achieving at higher levels
In 2011, educational performance by industry trainees improved for TES priority groups
Pasifika accounted for seven percent of all industry trainees in 2011. Pasifika trainees’ educational performance improved in 2011: their credit achievement rate rose from 54 percent in 2010 to 60 percent in 2011, while programme completion improved from 43 percent to 56 percent.
Industry contributed $98 million – 40 percent of total ITO funding – towards training arranged by ITOs in 2011
The industry cash contribution rate is a measure of the extent to which employers and industry value the training that ITOs arrange. In 2011 industry support rose to $98 million or 40 percent of total ITO funding, an increase of about six percentage points compared with 2010. Whilst this was above the 30 percent target rate, the proportion contributed by industry may be inflated by the reduction of government funding over the period.
TEC allocated $151.3 million in government funding to ITOs in 2011. The majority went to Teaching and Learning ($148.3 million) and the remainder to Capability ($3.0 million).
New funding rules for ITOs took effect from 1 January 2011. These clarified the need for clear evidence of trainee achievement in order to achieve better value for money.
The review of industry training is likely to result in a more capable and focussed ITO sector with increased industry and cross-tertiary collaborations. An increased number of ITO mergers are likely, as each industry sector advocates for more cohesive representation for its training needs.