An Auto Media Group publication Monday 9 November 2026
Advertisement

Home / Freight & Logistics

Freight & Logistics

Road transport highlighted in $320m training fund

Advertisement

Road transport is being targeted in a new government funding initiative to support training and employment during New Zealand’s COVID-19 economic recovery.

The Targeted Training and Apprenticeships Fund (TTAF) will pay costs of between $2500 and $6500 per year for learners of all ages to undertake vocational education and training.

Advertisement

Although certain sectors will be targeted, prime minister Jacinda Ardern has confirmed “any form of apprenticeship will be free” under the scheme which will be available from July 1, 2020 and will run until December 31, 2022.

On top of road transport, other sectors being highlighted include:

  • Primary industries, including agriculture, horticulture and viticulture, fisheries (including aquaculture) and forestry;
  • Construction, including building, plumbing, and civil engineering;
  • Community support, including youth work, care for elderly, counselling and community health, including mental health and addiction support;
  • Manufacturing and mechanical engineering and technology;
  • Electrical engineering.
Chris Hipkins

Education minister Chris Hipkins says the $320 million fund, announced as part of Budget 2020, will encourage and support New Zealanders to undertake vocational education and training in these high-demand industries.

“We know as a result of COVID-19, many New Zealanders will be looking to retrain and employers in key sectors will need more skilled people,” Hipkins says.

“We’re working hard to connect the two sides of the equation by making this process as simple and practical as possible. It’s designed not just for school leavers but for people in a range of circumstances and stages of their lives.

Training programme examples.

“That means we’ve removed costs for learners, apprentices or employers – for the next two and a half years, are targeting courses and programmes that are more likely to lead to jobs. We will also be deliberate in promoting vocational education for all ages.

“Every course is different and the cost for learners at tertiary providers, industry trainees and apprentices vary but in many cases they will save between $2500 and $6500 per year.

Cost examples of industry training.

“Apprentices and learners whose courses started earlier in the year but continue beyond 1 July will be eligible for a partial refund.

“All apprenticeships including those outside the targeted areas will be eligible for fees support. This is aimed at industries that are expected to be particularly hard hit by COVID-19, such as hospitality, tourism and food, where employers can keep their apprentices on.

“For 2021, we will refine these initial targeted areas to reflect the work that is underway across government to better understand how industry workforce needs are being affected by COVID-19 and what skills will be needed to support the country’s economic recovery,” Hipkins says.

Support for apprentices only part of the solution

The Motor Trade Association is welcoming support for apprenticeships and training but is disappointed employers have no backing as part of the initiative.

Craig Pomare

“The main hurdle for small businesses taking on an apprentice is the overhead cost of the employer-teacher training the learner in the workplace-classroom,” MTA chief executive Craig Pomare says.

He says it is especially important that automotive technology skills were prioritised as the New Zealand vehicle fleet become more and more complex.

“As well as the complexity, we’ve seen the national average rate of WOF failures rise to 41% in 2019, and the share of fatal crashes with a contributing vehicle factor rise to 15 percent. The Government has committed to doing more to improve road safety and maintaining our growing fleet is a road safety imperative.”

Pomare says around half of vehicle owners did little or no maintenance of their vehicle between WOF inspections.

“It is absolutely necessary that there are skilled automotive technicians available locally to ensure the safe operation of cars on New Zealand roads.

“As the average age of workers and business owners in the automotive sector approaches 55, it is critical to ensure we are training new, skilled automotive technicians to replace this soon-to-retire segment of the industry.

“So while today’s news is welcomed it will have limited to zero impact unless those small businesses are given the support to take on an apprentice,” Pomare says.

 

 

Get the TransportTalk newsletterNew Zealand transport industry news in your inbox. Free.
Sign up
Advertisement

Leave a Reply

Your email address will not be published. Required fields are marked *

Foundation sponsors

Supporting independent coverage of New Zealand’s transport industry.

Advertise with us