VET Consultation

The Government is currently reviewing the structure of the vocational education and training sector.

They have released a proposed plan as a consultation document.

Part of this plan is a consultation period which is open for six weeks (1 August – 12 September) – during this time, all New Zealanders are encouraged to have their say.

The consultation is being led by TEC and MoE, not Te Pūkenga.

Summary of proposal’s key points

1. A redesigned Polytechnic (ITP) network to respond to regional needs

• Financially viable ITPs will become independent and stand-alone (these would be stood up within Te Pūkenga from 1 Jan 2025 and then would legally stand-alone from 1 Jan 2026)
• Establishment of a federation of ITPs for those that are not financially viable
• The federated model would be anchored to Open Polytechnic who will provide programmes and services dependent on needs of each ITP.

Note: ITPs within the federated model would still have some decision-making powers. Over time, Polytechs may leave or join the federated model depending on their financial situation.

2. Two options for Industry-led system for standard setting and industry training

• Establishment of Industry Training Boards – similar to previous ITOs (Industry Training Organisations) (possibly up to 8)
• Replace Workforce Development Councils with industry specific Standard Setting Bodies (possibly up to 8 (industry training divisions in Te Pūkenga would be divided into separate units and become a PTE or other entity delivering programmes).

3. Changes to Funding System

• Restore funding rates to what would have been Student Achievement Component (SAC funding)
• 2025: Stop the Strategic Component Fund and increase provide funding by 10%
• From 2026:
  • Reprioritise funding from work-based learning to fund standard setting separately to arrange training
  • Establish funding arrangements for ITPs to engage with regional industries and international education.