The Government has confirmed it will overhaul the current work-based learning model, giving industries greater control over how apprentices and trainees are trained — a move welcomed by the Motor Trade Association (MTA).
Vocational Education Minister Penny Simmonds announced that, starting next year, the Government will implement a new, independent, industry-led model for vocational training.
“Whether you’re a carpenter building the warm, dry homes of tomorrow, or a mechanic working to keep us safe on the roads, it’s important you have the right skills to do your job effectively,” Simmonds says.
She says the current system, centralised under Te Pūkenga, had become disconnected from real-world industry needs and was not delivering for employers or learners.
This will be fixed by giving industries more control over how they train people.
“Public and industry consultation clearly showed that this model was the preferred option, and this Government is proud to deliver the changes that we called for,” she says.
From January 2026, new Industry Skills Boards (ISBs) will be responsible for setting training standards, endorsing programmes and moderating assessments. Apprentices and trainees currently under Te Pūkenga will transition to the ISBs for up to two years, while new learners will enrol directly with industry-led providers, polytechnics or wānanga.
Simmonds assured students and employers that qualifications would remain valid and there would be no disruption to training.
Industry-led automotive training
The MTA said the changes align with what the automotive sector has been demanding.
MTA chief executive Lee Marshall says he had received assurances that MITO — the body responsible for automotive industry training — would emerge from Te Pūkenga as an industry-owned and industry-led organisation.
“While the Minister’s announcement was short on detail, we are cautiously optimistic that she has listened to industry and landed on the best outcome for learners, employers and industry,” Marshall says.
“We have spoken directly with the Minister, and she has assured us that initially MITO will sit temporarily within a specific Motor Industry Skills Board, with minimal Government influence, then be carved out as a privately-owned training organisation.
“This is what industry advocated strongly for, and if confirmed in the detail we congratulate Penny Simmonds for listening to industry and coming to the best decision.”
The MTA led a taskforce of 30 sector organisations that unanimously opposed government-led vocational training.
Marshall says the proposed changes will ensure training remains current, practical, and tailored to the needs of businesses.
“The proposed alternative would have been a giant leap backwards, that placed learners in the hands of polytechnics that would inevitably prioritise classroom-based tuition instead of learning in a hands-on, real world environment that we know works best,” he says.
“If government had taken that route, it would have been transparently obvious it was simply to make money and prop up failing institutions, with no concern for learners.”
MTA says it now looks forward to working with government to ensure the transition delivers on its promise.
“The devil will be in the detail and the first task is to learn a lot more about what’s intended,” Marshall says.
“But we’re pleased Minister Simmonds has assured us an independent MITO lead and owned by industry is ahead.
“We will take the Minister at her word, and look forward to working with her on the delivery.”
