Reboot signs up 8000 new apprentices   21 Oct 2013

New Zealand Government

Hon Steven Joyce

Minister for Tertiary Education, Skills & Employment
21 October 2013 Media Statement
Reboot signs up 8000 new apprentices

The Government’s apprenticeship re-boot has already signed up 8000 new apprentices since March says Tertiary Education, Skills and Employment Minister, Steven Joyce.

The Apprenticeship Reboot was announced in January by Prime Minister John Key, as part of an overhaul of the apprenticeship scheme to get more apprentices qualified and more in priority trades. From 1 January 2014 all apprenticeships will be combined into a single nationwide scheme called New Zealand Apprenticeships which will be open to all ages.

Under the $28 million reboot subsidy, the first 10,000 new eligible apprentices/trainees who sign up for training from 6 March 2013 are able to apply for a subsidy of $1000 towards the cost of tools and off-job course costs, or $2000 for those in priority trades. Employers are also eligible for an equal payment.

Mr Joyce says as at 10 October, 8010 people throughout New Zealand have signed up for training in apprenticeship programmes. The 8000 signed up in seven months compares to the normal sign-up rate of 7000 for a full year.

“The reboot has resulted in a 67 per cent increase of people starting apprenticeships compared to the same period last year. Two thirds of all apprentices signed up under the scheme have been in the designated priority trades such as construction, engineering, infrastructure, and electro-technology," Mr Joyce says.

“There is a big opportunity over the next few years, particularly with the rebuilding of Christchurch and the coming housing construction boom in Auckland, to train more New Zealanders in vocational careers that will set them up for their working lives while supporting economic growth in New Zealand.

“With the reboot and New Zealand Apprenticeships we had estimated that around 14,000 new apprentices will start training over the next five years, over and above the 7,000 who enrol normally. We are running ahead of that at this point.”

The Tertiary Education Commission expects the 10,000th trainee will sign up for the reboot before the end of the year and the Government is investigating extending the number of places eligible for the subsidy.

“To give people the skills and qualifications they need, it is essential we have a responsive industry training system. The Government’s New Zealand Apprenticeship programme is about increasing quality opportunities for in-work training for all Kiwis by expanding and improving our apprenticeship training system,” Mr Joyce says.

“The National-led Government has overseen a move to a results focus in industry training. This is unlike the previous government who had up to 100,000 ‘phantom trainees’ in industry training who achieved no credits and in some cases were no longer alive.

“The apprenticeship changes will make a significant contribution towards meeting the Government’s Better Public Services target of 55 per cent of 25 to 34 year olds gaining a Level 4 or above qualification.”

Last month the Industry Training and Apprenticeships Bill – which implements the Government’s next package of reforms to the training system, including implementing New Zealand Apprenticeships – was introduced to Parliament.

ENDS

Questions & Answers

1. Why is the apprenticeship re-boot needed?

The apprenticeship reboot aims to raise the profile of apprenticeships and opportunities for careers in trades. A large number of apprenticeship-qualified people will be needed in coming years to meet the anticipated labour force needs for the Christchurch rebuild, on-going infrastructure development, and upgrading and increasing the housing stock.

2. Who will be eligible for the apprenticeship re-boot?

For the purposes of the re-boot, an apprentice is defined as an industry trainee training towards a Level 4 qualification of 120 credits or more and have been in training for 90 days or more. Apprentices and employers who are in receipt of other Government top-ups, such as Ministry of Social Development wage subsidies, are not eligible for the re-boot

3. Which trades are eligible for the re-boot subsidy?

Construction:

Carpentry, Painting, Decorating, Plastering, Steel fixing, Concreting, Plumbing, Gas fitting, Drain laying, Roofing, Scaffolding, Rigging, Joinery, Brick and block laying, Paving, Tiling, Masonry, Construction.

Infrastructure:

Plant operator, Road construction and maintenance, Bituminous surfacing, Foundation works, Pipe laying, Bridge construction and maintenance, Engineering (Highways), Quantity Surveying.

Engineering:

Boiler making, Welding, Sheet metal working, Diesel fitting, Fitting and turning, Civil engineering, Mechanical engineering, Fabrication.

Electro-technology:

Electricity supply (electronics and communication), Instrumentation and control, Refrigeration and air conditioning, Electrical Engineering.

4. How much will the reboot cost?

The reboot is estimated to cost $28 million. This is being funded from money set aside in Budget 2012 to transition the industry training system. This funding originally came from underspends in the industry training baseline.

5. What is the regional breakdown of the trainees?

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