2013 Performance

Industry training organisations

Industry training organisations (ITOs) coordinate structured on- and off-job training for employees, enabling them to gain qualifications on the New Zealand Qualifications Framework (NZQF) while earning money. ITOs are independent entities recognised by the Government and supported by industry.

In 2013 the Tertiary Education Commission (TEC) funded 20 ITOs through the Industry Training Fund and Modern Apprenticeship Fund. During 2013 mergers reduced the number of funded ITOs to 13 by the year end.

ITOs are formally recognised under the Industry Training and Apprenticeships Act 1992. They are partially funded by the Crown via the TEC through Investment Plans but also receive financial support from their industry members. 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 Government expectations of ITOs as:

Core roles Government expectations
  • Design national qualifications and run moderation systems to ensure fair, valid and consistent assessment against national standards
  • Arrange for the delivery of industry training that enables trainees to attain these standards
  • Work with industry to ensure that vocational learning meets industry needs
  • Enable working New Zealanders to complete nationally recognised qualifications
  • Create clear pathways towards advanced trade qualifications at Level 4 and above
  • Build and maintain strong support from the industries they serve

ITOs contribute to advancing the Government’s TES priorities by:

In 2013, ITOs received $157.4 million in Government funding – six percent of its total spending on tertiary education organisations

ITO highlights

ITO performanceTop

In 2013 the Government spent $157.4 million across the ITO sector to arrange training and apprenticeships across New Zealand. The number of industry trainees continued to decline in 2013. There was an increase in credit achievement and programme completion compared with 2012.

Operating environment

The 2013 year was focused on consolidating the sector through further mergers and lifting educational and financial performance.

The main challenges and factors influencing ITOs included:

Participation

The number of trainees participating in industry training in 2013 was 129,307 (42,087 standard training measures (STMs)), down slightly against 2012. The decrease was attributable in part to the impact of numerous mergers, as well as a lower uptake of training in line with lower employment rates (see figure 54).

Figure 54: ITO enrolments by trainees and STM, 2010–13
Figure 54: ITO enrolments by trainees and STM), 2010-13 Notes:
  1. All figures include Industry Training Fund and Modern Apprenticeship-funded places.
  2. In figures 54-56, the 2011 ITO results are the first to be produced using data from the Industry Training Register (ITR) and are not strictly comparable with previous years, as such, all data before 2011 in the graphs has been greyed. More information on the impact of the ITR can be found on the TEC website.

In 2013 the majority of ITO training was at Levels 3–4 (59%). While there was a decrease in trainees across all levels, the spread of training by level remained similar to previous years (see figure 55).

Figure 55: ITO trainees by NZQF level, 2010–13
Figure 55: ITO trainees by NZQF level, 2010-13

Participation by ethnicity remained relatively steady for all groups. The volume of Māori enrolments increased slightly and accounted for 18 percent of all enrolments (from 17% in 2012). Pasifika enrolments dropped compared with 2012 but continued to account for seven percent of total enrolments in 2013.

Figure 56: ITO trainees by ethnicity, 2010–13
Figure 56: ITO trainees by ethnicity, 2010-13 Note:
From 2011 trainees can identify with up to three ethnicities and may be reported more than once across ethnicities.

Performance against TES priorities

Māori and Pasifika trainee achievement improved

The ITO sector has committed to improving trainees’ credit achievement and programme completion with improvements noted across youth, Māori and Pasifika students groups in 2013 (see figure 57).

Figure 57: ITO participation and achievement, 2012 and 2013
Figure 57: ITO participation and achievement, 2012 and 2013

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 35 percent of total ITO enrolments in 2013. Youth achieved 74 percent for credit achievement and 66 percent for programme completions. While youth participation in industry training marginally increased as a proportion of all trainees, youth achievement in industry training improved over the same period (see figure 58).

Figure 58: Participation and achievement by ITO trainees under 25 years, 2012 and 2013
Figure 58: Participation and achievement by ITO trainees under 25 years, 2012 and 2013 Note:
All figures include Industry Training Fund and Modern Apprenticeship-funded places.

In 2013 youth participation at Level 4 and above accounted for 48 percent of total youth in industry training (27,713 trainees). Achievement across this group was higher than for the overall youth cohort in industry training, with youth achievement at Level 4 and above at 78 percent for credit achievement and 74 percent for programme completions.

TES Priority: Increasing the number of Māori students enjoying success at higher levels

Māori made up 18 percent (up from 17% in 2012) of the ITO sector’s trainees in 2013. Māori educational performance improved compared with 2012: credit achievement increased from 63 percent in 2012 to 66 percent in 2013 and programme completion increased from 57 percent to 65 percent.

In 2013 a third of Māori trainees participated at Level 4 and above in industry training (32%; 7,223 trainees) and this group demonstrated higher educational achievement than the overall Māori trainee cohort. Māori trainees achieved 72 percent credit achievement and 77 percent programme completion for Level 4 and above programmes.

Figure 59: Participation and achievement by Māori ITO trainees, 2012 and 2013
Figure 59: Participation and achievement by Māori ITO trainees, 2012 and 2013 Note:
All figures include Industry Training Fund and Modern Apprenticeship-funded places.

TES Priority: Increasing the number of Pasifika students achieving at higher levels

In 2013 educational performance by industry trainees improved for Māori and Pasifika

Pasifika accounted for 7 percent of all industry trainees in 2013. Pasifika trainees’ educational performance improved, with 65 percent programme completion (from 61% in 2012) and credit achievement of 64 percent (from 60% in 2012).

A very small proportion of Pasifika trainees engaged in Level 4 and above programmes in 2013 (10%, 2,117 trainees). This group demonstrated strong educational performance, with 69 percent credit achievement and 70 percent programme completion across Level 4 and above programmes.

Figure 60: Participation and achievement by Pasifika ITO trainees, 2012 and 2013
Figure 60: Participation and achievement by Pasifika ITO trainees, 2012 and 2013

Financial performance

Industry contributed $100.8 million – equivalent to 48 percent of total ITO funding – towards training arranged by ITOs in 2013

The industry cash contribution rate is a measure of the extent to which employers and industry value the training ITOs arrange. In 2013 industry support rose to $100.8 million, an increase of about two percentage points compared with 2012. Industry cash contribution accounted for 48 percent of total ITO funding and sits well above the 30 percent target set by the TEC.

The TEC allocated $157.4 million in Government funding to ITOs in 2013. The majority went to Teaching and Learning ($155.6 million) and the remainder to Capability ($1.8 million) (see figure 61).

Figure 61: Total ITO Government funding by type, 2013
Figure 61: Total ITO Government funding by type, 2013

Future focus for ITOsTop

The focus for ITOs in the 2014 and 2015 investment planning cycle is on improving performance and arranging for delivery of relevant high-quality training. This includes ensuring apprenticeship programmes are aligned with the New Zealand Apprenticeship criteria. An ‘apprenticeship reboot subsidy’, to encourage uptake of apprenticeships, came into effect in March 2013 and is payable to apprentices who sign up until the end of 2014.

New performance measures will require ITOs to closely monitor all trainees to ensure they are working towards achieving a minimum of 10 credits each year.