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Education (Vocational Education and Training Reform) Amendment Bill Government Bill As reported from the Education and Workforce Committee Commentary Recommendation The Education and Workforce Committee has examined the Education (Vocational Education and Training Reform) Amendment Bill and recommends by majority that it be passed with the amendments shown.

Introduction This bill seeks to create a unified and cohesive vocational education and training sys- tem.
The bill would amend the Education Act 1989 and repeal the Industry Training and Apprenticeships Act 1992.

Currently, vocational education is split into work-based training and provider-based programmes.

Industry training organisations (ITOs) are responsible for arranging work-based industry training, and for developing and maintaining skill standards (which form part of a qualification).

ITOs sometimes contract providers to provide off-job training.
Provider-based programmes are offered by polytechnics, wānanga, and private training establishments (PTEs).

The bill would establish a new framework for vocational education and training, by making the following changes: • • It would enable the establishment of workforce development councils (WDCs) to provide skills leadership, set skill standards and develop qualifications, endorse programmes and moderate assessments, and provide an advisory and representative role.
It would establish the New Zealand Institute of Skills and Technology (NZIST) to provide, arrange, and support a range of vocational education and training.

This would involve the consolidation of the existing network of polytechnics.

170—2 2 • • Education (Vocational Education and Training Reform) Amendment Bill Commentary Initially, each polytechnic would become a Crown entity subsidiary of NZIST, until its undertakings transferred to NZIST (or another NZIST subsidiary) by the end of 2022.
It would amend the functions and duties of the Tertiary Education Commission and the New Zealand Qualifications Authority.

It would provide for a transition of workplace training support from ITOs (which would initially become “transitional ITOs”) to WDCs and providers.

As introduced, the bill has a commencement date of 1 April 2020.

Proposed amendments This commentary covers the main amendments we recommend (by majority) to the bill as introduced.

We do not discuss minor or technical amendments.


We also note that we do not discuss all of the reordering or relocation of provisions within the bill.

Proposed changes to definitions in interpretation section Clause 7 of the bill would amend section 159 of the Education Act, which is the inter- pretation provision for tertiary education terms in the Education Act.

We recommend some changes to the definitions in the bill as introduced.
We recommend amending clause 7(3) to limit the NZIST subsidiaries that are consid- ered an “institution” to those that provide education or training, or both.

This is because it would be possible for NZIST to establish subsidiaries that do not have an educational focus.

We do not believe such a subsidiary should be considered an “institution” for the purposes of the Act.

Clause 7(8) as introduced would insert a definition of “training contract” into section 159(1) of the Act.
We recommend changing the term to “training agreement” to be more consistent with the terminology used in the Employment Relations Act 2000.

We also recommend amending new Schedule 1 (set out in Schedule 1 of the bill) by inserting new clause 56D so that training contracts (between an employer and an employee) in force prior to the commencement of the bill are treated as training agreements.

Clause 7(8) would also insert a definition for “vocational education and training” into section 159(1) of the Act.
We recommend expanding this definition to clarify that vocational education and training includes “work-based training”.

Functions of the Tertiary Education Commission Clause 12 would insert new section 159KBB into the Education Act.

As introduced, this new section would enable the chief executive of the Tertiary Education Commis- sion to require NZIST to provide any information the chief executive requested about the operation of NZIST (or a related entity) for the purposes stated in the new section.
We recommend amending new section 159KBB so that the chief executive of the Commission must consider that the information is “reasonably required” for the pur- poses stated in the new section before exercising the power to require it.

Commentary Education (Vocational Education and Training Reform) Amendment Bill 3 New Zealand Institute of Skills and Technology Clause 49 would replace Part 15A of the Education Act.
New Part 15A would estab- lish the New Zealand Institute of Skills and Technology as a tertiary education institu- tion, alongside universities and wānanga.

We recommend some changes to this new Part (comprising new sections 222A to 222ZC), which we discuss below.

Name of the entity New section 222A(2) would enable the Governor-General to change the name of NZIST by Order in Council, on the recommendation of the Minister of Education.
We recommend inserting a requirement for the Minister to have received a recom- mendation for the name change from NZIST’s council before recommending such a change.

Functions of NZIST New section 222B would state the functions of NZIST.

We recommend the following amendments to the functions as stated in the bill as introduced: • • • • • Amend paragraph (a) to make it clear that NZIST would provide a wider range of education and training, including vocational, foundation, and degree-level.
Amend paragraph (a) to expand the reference to research by replacing “applied research” with “research, with a focus on applied and technological research”.

Amend paragraph (d) to include a requirement for NZIST to promote and sup- port life-long learning.

In regard to improving outcomes for Māori learners and communities, amend paragraph (e) to require collaboration with Māori hapū and other stakeholders (in addition to Māori and iwi partners).
Insert paragraph (f) to include carrying out any other functions consistent with NZIST’s role as a tertiary education institution.

Administrative regions As introduced, new section 222D would enable the Minister to specify administrative regions by notice in the Gazette.

We recommend amending this new section to make it clear that the Minister would be specifying the administrative regions of govern- ment that NZIST must make arrangements to operate effectively with.
Academic freedom New section 222E would declare Parliament’s intention to preserve and enhance the academic freedom of NZIST and its subsidiaries.

What academic freedom means is spelled out in new section 222E(2).
In that context, the following paragraphs of new section 222E(2) would state what academic freedom means: Education (Vocational Education and Training Reform) Amendment Bill Commentary (a) the freedom of academic staff and students, within the law, to question and test received wisdom, to put forward new ideas, and to state controversial or unpopular opinions (b) the freedom of academic staff and students to engage in research (c) the freedom of NZIST and its staff to regulate the subject matter of its cour- ses (d) the freedom of NZIST and its staff to teach and assess students in the man- ner they consider best promotes learning (e) the freedom of NZIST through its chief executive to appoint its own staff.
4 • • • • • As introduced, new section 222E(3) states that nothing in subsection (2) would limit or affect a WDC from carrying out its relevant functions.

We consider that the “rele- vant functions” of the WDC should be referenced in the section.

These are the func- tions in new section 482(1)(b) to (e), and (g), which relate to setting standards and developing qualifications.

We wish to ensure that the right balance is recognised between ensuring academic freedom and the carrying out of WDCs’ functions.
Therefore, we also recommend amending this section to make it clear that the carrying out of WDC functions does not limit the academic freedoms as set out in paragraphs (a), (b), or (e) of subsection (2).

Those academic freedoms relate to the freedom of academic staff and students to comment and engage in research, and the freedom of NZIST to appoint its own staff.

We recommend amending new section 222E accordingly.
Membership of NZIST’s council New section 222G sets out the requirements for the NZIST council’s membership.

As introduced, new section 222L would require NZIST to establish a staff committee, a student committee, and a Māori advisory committee.

Each of those committees would elect a representative who would, under new section 222G(1), be a member of the NZIST council.

We recommend amending subsection (1) to clarify that a council member elected by a committee must also be a member of that committee.
As introduced, subsection (4) would require that a staff committee representative and student committee representative on the council must, respectively, be a current staff member or enrolled student of NZIST or a subsidiary.

We recognise that this may not be ideal for students, given the relatively short span of their enrolment at a provider.
Therefore, we recommend amending subsection (4) to allow a student committee representative to continue as a council member for up to 12 months after their enrolment ends.

To avoid doubt, we think the new section should clarify two things.

First, all perman- ent members of staff are eligible for appointment to the council under subsection (1)(a).
Second, all students enrolled at NZIST or a subsidiary are eligible for appoint- ment to the council under subsection (1)(b), regardless of whether their education or Commentary Education (Vocational Education and Training Reform) Amendment Bill 5 training is by distance, on-campus, or work-based.

We recommend inserting new sub- section (5) to reflect this.

We note that, after the establishment of NZIST, it would take time for the council members from the three committees to be elected.
Therefore we recommend inserting into Schedule 1 (set out in Schedule 1 of the bill) new clause 40A so that the number of NZIST council members is reduced proportionately until the appointment of the committee members of the council.

Capital projects that would require the Secretary of Education’s consent New section 222N would introduce new powers for the Secretary of Education to approve capital projects.
As introduced, this section would require NZIST to obtain the written consent of the Secretary for any capital project (by NZIST or a subsidiary) that was not within a capital plan approved by the Secretary, or was over a certain threshold set by the Secretary.

We consider that this could be too restrictive for low-cost capital projects that are not in an already-approved capital plan, but would still require the Secretary’s written consent.
We recommend amending the proposed section so that capital projects that are below a certain threshold, and not in an already-approved capital plan, can pro- ceed without requiring the Secretary’s approval.

We also consider that the Secretary should consult NZIST before setting the thresh- olds.

We recommend inserting new subsection (2) accordingly.
For clarity, we recommend inserting subsection (3) to expressly state that this new section applies despite section 201A of the Act (which relates to how institutions can use capital and income).

Formation of NZIST subsidiaries As introduced, new section 222Z(1) would enable NZIST to form subsidiaries, with the approval of the Minister.

As part of the transitional provisions, we recommend inserting clause 40B in new Part 9 of Schedule 1.
This would remove the requirement for approval from the Minister after 2024.

New section 222Z(2) Subsection (2) would enable the Governor-General, by Order in Council on the rec- ommendation of the Minister, to specify provisions of the Education Act that do not apply to an NZIST subsidiary that does not provide education and training.

We note that this is considered a “Henry VIII power”, as it would allow the Executive to amend the Act through regulation rather than through a bill.
The Regulations Review Committee questioned the need for this provision.

We think that the intent of the new section as introduced was to provide a means for education-focused provisions of the Act to not apply to a subsidiary that does not have an education focus.
For example, a subsidiary for support services or a land- 6 Education (Vocational Education and Training Reform) Amendment Bill Commentary holding subsidiary would be unlikely to require the application of sections of the Edu- cation Act relating to powers of councils, enrolment, or NZQA powers.

However, we think the new section should be reworded to constrain the scope of the power.
Earlier in this commentary we recommended limiting the definition of “insti- tution” to NZIST and its subsidiaries that provide “education or training, or both”.

Therefore, we recommend amending new section 222Z(2) so that an Order in Council would allow the Minister to apply particular provisions of the Act to a subsidiary that does not provide education or training.

We recommend inserting subsection (1A) to refer to new Schedule 25 (which is in Schedule 5A of the bill).
This would specify further provisions of the Education Act that apply to NZIST subsidiaries that provide education or training, or both.

Functions of the New Zealand Qualifications Authority Clause 57 would amend section 253, which gives the New Zealand Qualifications Authority (NZQA) the power to make rules.

As introduced, clause 57 specifies two rules that NZQA could make.

They relate to setting annual fees payable by WDCs, and prescribing quality assurance requirements for WDCs.
We recommend adding a power for NZQA to make rules that prescribe matters about training packages.

Training packages are a new concept for New Zealand’s tertiary education system.

We discuss them later in our commentary.

Vocational education and training Clause 65 would insert new Part 34 (new sections 477 to 523) into the Education Act, comprising three subparts.

Subpart 1 is about WDCs, subpart 2 is about apprentice- ships, and subpart 3 is about training levies.
New section 477 defines terms used in new Part 34.

We recommend some changes to the definitions.

First, as we discussed earlier in relation to clause 7, we recommend amending the def- inition of “provider”, and changing “training contract” to “training agreement”.

Second, we recommend expanding the definition of “training package”.

The purpose of a training package is to assist providers in developing and delivering programmes that lead toward an industry qualification.
We think that the existing definition in the bill is not broad enough, and note that a WDC’s role in relation to training packages is not expressly stated in the definition.

We recommend amending the definition of “training package” accordingly.

As discussed earlier, we recommended that NZQA has rule-making powers in relation to training packages.

Third, we recommend amending the definition of “work-based training” to include reference to “assessment”.
Work-based training, which includes apprenticeships, is the term used to replace the concept of industry training.

As introduced, the definition refers to the training aspect only.

However, assessment is also an important part of work-based training.

Commentary Education (Vocational Education and Training Reform) Amendment Bill 7 Workforce development councils As mentioned above, clause 65 would insert new Part 34 into the Education Act.
New Part 34, subpart 1 would provide for the establishment, disestablishment, functions, and obligations of WDCs.

Establishment of workforce development councils New section 479 would enable the Governor-General to establish a WDC (for one or more specified industries) on the recommendation of the Minister of Education.

New subsection (1) would enable this to be done by Order in Council.

What is contained in an order As introduced, new subsection (2) sets out what matters an order must specify.
In addition, we recommend including matters that an order may optionally address.

These matters could include an outline of how specified industries engage with the WDC, the WDC’s use of its assets, conditions of the WDC’s functions, or other gov- ernance arrangements for the WDC.

We recommend inserting paragraph (b) accord- ingly.
Ensuring representation in recommendations about WDC governance arrangements As introduced, new subsection (3) would require the Minister, when making recom- mendations about the governance arrangements of a WDC, to ensure as far as reason- ably practicable: (a) the collective representation of employees in the governance of the WDC, and (b) the representation of Māori employers in the relevant industry.

We think that new subsection (3)(a) should be amended to refer to employers as well.
Also, we think it should make it clear that the employers and employees referred to are those from the industries the WDC covers.

Consultation by the Minister before recommending an order to establish a WDC Prior to making a recommendation to the Governor-General to establish a WDC, we think that there should be an express requirement for the Minister to consult relevant representatives in any industry proposed to be covered by the WDC.
We think the Minister should be required to take into account any views expressed by those parties regarding certain matters.

They are: the proposed name or governance arrangements of the WDC; the desirability of avoiding duplication of resources; and the capability of the proposed WDC to carry out its work.

Accordingly, we recommend inserting subsection (4) into proposed section 479.
Disestablishment of workforce development councils New section 480 would enable the Minister to recommend the disestablishment of a WDC.

Under subsection (1), the Governor-General would be able to disestablish a WDC by Order in Council, and to provide for the distribution of its assets and liabil- ities.
8 Education (Vocational Education and Training Reform) Amendment Bill Commentary Subsection (2) would require that, before recommending the disestablishment of a WDC, the Minister must either: (a) have had a request from the WDC’s specified industry; or (b) reasonably consider that there has been a consistent failure by the WDC to carry out one or more of its functions.

We recommend the following changes to subsection (2).
First, in paragraph (a), the Minister should also be able to receive a request from the WDC itself, if it seeks to be disestablished.

Second, we recommend amending paragraph (b) to expand the alterna- tive reasons why the Minister could be satisfied it was necessary to disestablish a WDC.
Those reasons could be: the WDC has persistently engaged in unlawful activ- ity; the WDC has persistently failed to perform its functions or duties; or there has been a persistent pattern of complaints to the Tertiary Education Commission or the Minister, from an industry covered by the WDC about the WDC’s work.

Functions of workforce development councils Proposed new section 482 states the functions of a WDC in relation to the specified industries covered by it.
Some clarifications of the functions As introduced, subsection (1)(a)–(m) states the functions of a WDC.

We recommend some changes to the wording of those functions.

In paragraph (a), we recommend expanding the “skills leadership” function to be a “skills and workforce” leadership function for its specified industries.
In paragraphs (b), (d), (e), and (g), which broadly relate to developing or setting respective schemes, standards, or assessments, we recommend adding the additional function of maintaining those schemes, standards, or assessments.
Minister needs to consult WDC before conferring additional functions One of the functions of a WDC stated at new section 482(1)(m) would be to perform any other function (in addition to those already stated) that is conferred on it by the Minister in relation to the specified industries.

We think there should be an express requirement for the Minister to consult a WDC before conferring any additional function on it.

We recommend inserting new subsec- tion (2) accordingly.
Workforce development councils must not operate a registered establishment New section 484 would prohibit a WDC from operating or holding an interest in a registered establishment.

The purpose of this provision is to avoid potential conflicts of interest.

We recommend clarifying that the “interest” in subsection (1) could be financial or otherwise.
We also recommend inserting subsection (2) to ensure that a WDC is not allowed to provide (or have an interest in an organisation that provides) education and training that is approved by NZQA.

Commentary Education (Vocational Education and Training Reform) Amendment Bill 9 Duties of workforce development councils when carrying out functions As introduced, new section 485 would state the obligations of WDCs.

We recommend changing “obligations” to “duties”.


Subsection (1) would require each WDC to comply with any quality assurance requirements set by NZQA relating to the performance of its functions.

As introduced, subsection (2) would require each WDC to have regard to the needs of Māori and other population groups identified in the tertiary education strategy issued under section 159AA of the Act.

We think subsection (2) should be amended with three additions.
First, we recom- mend incorporating (as a duty) the requirement for a WDC to take into account the needs of its specified industries.

This would be instead of proposed section 482(2) in the bill as introduced.
Second, we recommend adding a new duty for WDCs to work collaboratively with: • • • • providers, and in the case of wānanga, to respect their special character other WDCs NZQA any relevant regulatory body that has a role regulating the entry into an occupa- tion in any of the WDC’s specified industries.

Third, we recommend inserting new subsection (2)(d) to require each WDC to take reasonable steps to avoid any adverse impact on its relationship with a provider when performing its functions.
We recommend amending proposed section 485(2) to reflect the above changes.

Audit requirements for WDCs We recommend inserting section 488A to make each WDC a public entity as defined in section 4 of the Public Audit Act 2001.

This would mean that the Auditor-General is the auditor of the WDCs.

We also recommend a consequential amendment to Schedule 6 of the bill to amend the Public Audit Act.
Validity of acts by a WDC in breach of statute We recommend inserting sections 488B and 488C to make it clear that certain acts by WDCs would be invalid.

This would replicate sections 19 and 20 of the Crown Entities Act 2004 so that they apply to WDCs.

Apprenticeships As mentioned earlier, clause 65 of the bill would insert subpart 2 of new Part 34 into the Act.

Subpart 2 deals with matters relating to apprenticeships.
Those provisions are largely carried over from the existing Part 2A of the Industry Training and Appren- ticeships Act 1992.

This bill would repeal that legislation.

10 Education (Vocational Education and Training Reform) Amendment Bill Commentary Apprenticeship training activities New section 490 would require that a provider seeking funding for an apprenticeship training activity must specify in a proposed plan how it would carry out that activity.
Subsection (2) states what an apprenticeship training activity is.

We recommend amending proposed section 490(2)(b)(ii) to clarify that, when a pro- vider is identifying employers able to offer apprenticeship training, it must show that the employer is able to satisfy all of the work-based requirements of the approved programme of the provider.
Obligations when carrying out apprenticeship training activities As introduced, new section 491(2) would oblige a provider of an apprenticeship train- ing programme to assist an apprentice to find a new employer (with whom the apprentice can complete their training), if it becomes impracticable for the apprentice to continue their training with their current employer.
We think this provision should be expanded so that the provider is required to give written notice to the apprentice if such a situation arises.

The notice must expressly state that, if the apprentice requests assistance to find a new employer to complete their training, the provider will make reasonable endeavours to do so.

We recommend amending the section accordingly.


Minister may issue apprenticeship training code New section 492 would enable the Minister to issue an apprenticeship training code by notice in the Gazette.

Before issuing such a code, subsection (3) would allow, but not require, the Minister to consult anyone the Minister considers appropriate.

We think the Minister should be required to consult relevant WDCs that cover the speci- fied industries that the proposed code would cover.
We recommend inserting section 492(5) to require this.

Training levies Subpart 3 of new Part 34 would address matters relating to training levies.

These pro- visions replicate those in the existing Industry Training and Apprenticeships Act.

We recommend amending new section 501(3) so that levy funds could be used to meet the costs of the relevant WDC performing its functions under new section 482.
As introduced, new section 501 has a slightly narrower purpose, as it refers expressly to meeting the costs associated with developing and maintaining skill standards.

Schedule 1: Transitional provisions Clause 66 of the bill would insert new Part 9 into Schedule 1 of the Act.

New Part 9 is set out in Schedule 1 of the bill.

The schedule would address matters during the tran- sition from the existing vocational education system to the new one.
Commentary Education (Vocational Education and Training Reform) Amendment Bill 11 Transitional provisions for the conversion of polytechnics to corresponding NZIST subsidiaries Subpart 1 in new Part 9 of Schedule 1 would provide transitional provisions for poly- technics.

Under clause 27 of this new part, each existing polytechnic would be con- verted to become a corresponding NZIST subsidiary.

Clause 28 of this new part would require corresponding NZIST subsidiaries to have between 4 and 6 directors.
We recommend changing this to between 4 and 8 directors.

We also recommend removing the reference to “initial directors” of the “correspond- ing NZIST subsidiaries” (of former polytechnics).

This is because the new clause should apply to all appointments for “corresponding NZIST subsidiaries”.

We recommend inserting clause 32A into new Schedule 1.

This would mean that cor- responding NZIST subsidiaries are treated as the same legal person as the existing polytechnic under taxation Acts.
This would ensure that there are no unintended adverse tax consequences.

We recommend inserting new clause 35A into new Schedule 1.

This would mean that corresponding NZIST subsidiaries are treated as the same legal institution as the existing polytechnic for the purposes of visas issued to students or staff under the Immigration Act 2009.

This would protect students and staff who have been granted immigration visas on the basis of their enrolment or employment with an existing pol- ytechnic.
To make it clear that any other enactments that refer to an existing polytechnic should be treated as referring to the corresponding NZIST subsidiary, we recommend insert- ing new clause 37A into new Schedule 1.

We wish to ensure that section 45L of the Public Finance Act 1989 could apply, to facilitate a full 12-month report that is comparable to previous years’ reports by pred- ecessor polytechnics.

We therefore recommend inserting new clause 39(1A) into Schedule 1.
Transitional arrangements for work-based training Under the current Industry Training and Apprenticeships Act, industry training organ- isations (ITOs) are not allowed to operate registered private training establishments.

Clause 47 of new Schedule 1 (as set out in Schedule 1 of the bill) would mean that transitional ITOs would still not be allowed to operate registered private training establishments.
This is to avoid conflicts of interest if the entity was setting industry standards while also operating an establishment.

We recommend inserting new subclause (3) into clause 47 of Schedule 1 so that tran- sitional ITOs could operate registered private training establishments as long as they were no longer exercising any standard-setting functions for an industry the transi- tional ITO covers.
12 Education (Vocational Education and Training Reform) Amendment Bill Commentary Transition plans for transitional ITOs Clause 51 of new Schedule 1 would require transitional ITOs to develop a transition plan for approval by the Tertiary Education Commission.

The transition plan would set out a plan to transfer the functions and activities of the transitional ITO to WDCs or providers (as applicable).
We recommend inserting new subclause (2) so that the Commission could make amendments to a plan when approving it.

We also recommend inserting subclause (3) so that, if a transitional ITO does not develop or implement a transition plan, the Commission could do so in its place.

We also recommend inserting new clause 51A so that the Commission would be able to issue guidance to transitional ITOs about what should be contained in a transition plan.
We recommend that the Commission be required to consult transitional ITOs when developing that guidance.

Transitional provisions relating to employment of individuals During the transition, the employment of individuals would be affected.

We recom- mend some amendments to subpart 3 of new Schedule 1 (as set out in Schedule 1 of the bill) to clarify some employment matters.
Employment of transitional ITO employees by NZIST, NZIST subsidiaries, or wānanga The bill would convert existing ITOs to transitional ITOs.

Those transitional ITOs would eventually cease to be recognised once their functions were transferred to new entities.

Those entities could be NZIST, an NZIST subsidiary, a wānanga, or a WDC.
We recommend inserting clause 56A to prescribe the process that would need to be followed for the employment of transitional ITO employees if the transitional ITO’s activities are transferred.

We consider that the chief executive of the entity that was acquiring the functions of the transitional ITO should be required to identify affected employees of the transi- tional ITO.

We think the chief executive could choose to offer those affected employees an equivalent position.
If the affected employee accepted such an offer, their employment would be treated as continuous.

If an employee was offered an equivalent position (whether or not they accepted it), they would not be entitled to receive any payment or benefit on the basis that their employment had ceased to exist at the transitional ITO.
We recommend including new subclause (6) so that the regime outlined above would override Part 6A of the Employment Relations Act and any employee protection pro- visions in employment agreements.
Commentary Education (Vocational Education and Training Reform) Amendment Bill 13 Employment of New Zealand Qualifications Authority employees by workforce development councils Similarly to the potential employment changes discussed above in relation to transi- tional ITOs, some employees of the New Zealand Qualifications Authority could also have their employment affected.

The bill would transfer some functions of NZQA to WDCs.

We recommend inserting new clause 56B.


NZQA would be required to develop a transition plan identifying functions that would transfer to a WDC.

The chief execu- tive of a WDC (that would be conferred any of the functions from NZQA) would need to identify any affected employees at NZQA.

The chief executive could then choose to offer affected employees an equivalent position.
As with affected transitional ITO employees, if an employee was offered an equiva- lent position (whether or not they accepted it), they would not be entitled to receive any payment or benefit on the basis that their employment had ceased to exist at NZQA.

We recommend including new subclause (6) so that the regime above would override Part 6A of the Employment Relations Act and any employee protection provisions in employment agreements.
We also recommend inserting new clause 56C to make it clear that compensation for technical redundancy of NZQA employees would not apply if those employees were offered equivalent employment (whether or not they accepted it).

Schedule 3: NZIST’s charter In clause 49 of the bill, new section 222C would require NZIST to give effect to its charter, which is set out in new Schedule 22, contained in Schedule 3 of the bill.
Under new section 222C, NZIST would be required to report in its annual report how it has given effect to the charter.

Some changes to charter recommended We recommend some changes to the charter as introduced in Schedule 3 of the bill.

Overall purpose of NZIST We recommend amending clause 1 of proposed Schedule 22 to refer to NZIST’s pur- pose as being to perform the functions set out in new section 222B.
Smaller employer and niche sectors Clause 4 of the new schedule would state ways in which NZIST must operate.

We recommend amending subclause (b)(i) to encourage NZIST to also develop meaning- ful partnerships with smaller employers and those operating in niche sectors.

We also recommend inserting subclause (c)(ia) to encourage NZIST to utilise those partner- ships to expand industry training into smaller employer and niche sectors.
Education (Vocational Education and Training Reform) Amendment Bill Commentary 14 Diversity We recommend inserting subclause (c)(iii) into clause 4 of the charter to encourage NZIST to use insights gained through partnerships to work toward equity for learners and staff of different genders, ethnicities, cultures, and abilities.

Adding equity as a core principle We recommend inserting “equity” alongside “inclusivity” in clause (4)(e) of the char- ter.
Regions We recommend inserting clause (4)(fa) into the charter to require NZIST to operate in a way that promotes equitable access for learners from all regions.

Collaboration with WDCs and learners’ transition to employment We recommend amending clause 4(h) to clarify that WDCs are among the tertiary education organisations that NZIST must work collaboratively with.

We also recom- mend clarifying that one of the outcomes that the collaboration should improve is learners’ transition into employment.
Additionally, we recommend amending clause 5(g) of the charter so that NZIST must ensure that learning pathways provide learners with employment opportunities, in addition to opportunities to progress to higher levels of education and training.

Academic integrity of training We recommend inserting new clause 5(ba) into the charter to require NZIST to ensure that the academic integrity of its training programmes is protected.
Schedule 4: Dissolution of NZIST subsidiary New Schedule 23 (inserted by Schedule 4 of the bill) would provide a regime if an NZIST subsidiary were to be dissolved.

This includes the regime for the dissolution of the corresponding NZIST subsidiaries (of current polytechnics).
Under clause 5(1) of the new schedule, the chief executive of NZIST would be required to identify employees of the NZIST subsidiary whose duties overall would be required by NZIST or a succeeding subsidiary, but whose positions would cease to exist upon the subsidiary’s dissolution.

Under subclause (2), the chief executive of NZIST would be required to offer those employees equivalent employment.
As introduced, subclause (4) would prevent an employee from receiving any payment or benefit as a result of the cessation of their employment in the NZIST subsidiary.

We recommend amending subclause (4) so that the provision would only apply if the employee was offered employment under subclause (2), regardless of whether or not they accepted equivalent employment.
Commentary Education (Vocational Education and Training Reform) Amendment Bill 15 National Party minority view The National Party thanks officials and submitters for contributing to the select com- mittee process; however, the National Party will not be supporting this bill.

We acknowledge select committee improvements to the bill around concerns for aca- demic freedom which have been tightened up.
We acknowledge improvement to redundancy conditions which, as initially written, were overriding provisions for vul- nerable workers under the Employment Relations Act and employment protection provisions for other workers who may be made redundant.

We also acknowledge improved employment transition arrangements for workers in industry training organ- isations (ITOs).
We remain unconvinced that regional autonomy will be maintained simply by refer- ence to NZIST functions (in new section 222B(b)) and to the NZIST charter (new section 222C, and Schedule 3, clause 3(b) of new Schedule 22).

We have concerns that the voice of local communities and local polytechnics will not be well served by changes to the polytechnic governance structure and that proposed regional leadership groups seem advisory at best.
We are also concerned with the devolution of regional polytechnic assets to the NZIST and the decision-making the NZIST, Secretary for Education, and the Minister will have over those community assets.

The National Party disagrees with the bill’s intention to disestablish industry training organisations and distribute their standard-setting function to workforce development councils (WDCs) and the arranging of training functions to the NZIST.
It is not clear how WDCs will absorb all 11 ITOs and whether interactions will be instructional or advisory with entities including the Tertiary Education Commission (TEC), New Zea- land Qualifications Authority (NZQA), and the New Zealand Institute of Skills and Technology (NZIST).

We remain concerned that many small ITOs will lose their voice in the reconfiguration.
We have taken into account formal documents from the TEC, Ministry of Education, Treasury and Cabinet documents that express grave concerns for risks that the reform will not be successful.
The cost of the reform is not well quantified and the Pro- gramme Business Case identifies a loss of 18,000 industry trainees and 2,310 appren- tices in the medium term.1 The National Party supports high quality vocational educa- tion and regional decision-making that increases vocational participation and comple- tion in a sustainable manner.

It is our view that this bill damages those goals and we are unable to support the bill.

1 Table 21, page 53 of the Programme Business Case.
Education (Vocational Education and Training Reform) Amendment Bill Commentary 16 Appendix Committee process The Education (Vocational Education and Training Reform) Amendment Bill was referred to the committee on 29 August 2019.

The closing date for submissions was 13 October 2019.

We received and considered 236 submissions from interested groups and individuals.

We heard oral evidence from 71 submitters at hearings in Dunedin and Wellington.
We received advice from the Ministry of Education and the Tertiary Education Com- mission.

The Regulations Review Committee wrote to us about new section 222Z in clause 49 of the bill.

Committee membership Dr Parmjeet Parmar (Chairperson) Simeon Brown Hon Clare Curran Golriz Ghahraman (from 20 November 2019) Hon Nikki Kaye Denise Lee Marja Lubeck Jo Luxton Mark Patterson Chlöe Swarbrick (until 20 November 2019) Jan Tinetti Nicola Willis Dr Shane Reti participated in our consideration of this bill.
Education (Vocational Education and Training Reform) Amendment Bill Key to symbols used in reprinted bill As reported from a select committee text inserted by a majority text deleted by a majority Hon Chris Hipkins Education (Vocational Education and Training Reform) Amendment Bill Government Bill Contents Title Commencement Principal Act Part 1 Substantive amendments to principal Act Section 2 amended (Interpretation) Section 31B amended (Provider group for secondary-tertiary programme) Section 31F amended (Recognition as lead provider of secondary- tertiary programme) Section 159 amended (Interpretation) Section 159B amended (Definition of organisation) Section 159F amended (Functions of Commission) New sections 159FA to 159FC inserted 159FA Duties of Commission in relation to workforce development council 159FB Power of Commission to require information from workforce development council 159FC Power of Commission to audit workforce development council Section 159G amended (Principles guiding how Commission operates) New section 159KBB inserted (Additional requirement of NZIST’s council to provide information) 170—2 Page 7 7 7 7 8 8 8 9 9 10 10 11 11 11 11 1 Education (Vocational Education and Training Reform) Amendment Bill 159KBB Additional requirement of NZIST’s council to provide information Institutions to be governed by councils Section 159L amended (Minister determines design of funding mechanisms) Section 159M amended (Restrictions on design of funding mechanisms) Section
 159OA amended (Variation of determination of design of funding mechanisms) Section 161 amended (Academic freedom) Section 162 amended (Establishment of institutions) Section 163 amended (Constitution of institutions) Section 164 amended (Disestablishment of institutions) Section 165 replaced (Institutions to be governed by councils) 165 Section 166 amended (Incorporation) Section 169 amended (Constitutions of councils of new institutions) Section 170 amended (Amendment of constitution) Section 170A amended
 (Constitution to provide for membership of council) Section 171 amended (Membership of council) Section 171A amended (Certain people disqualified from appointment) Section 171B amended (Matters to be considered when appointing members) Section 171C amended (Statutes relating to appointment of members by councils of institutions) Section 171D amended (Limitations on number of occasions on which people may be appointed as members of councils) Section 171F amended (Certain acts and proceedings not invalidated by defects) Section 173 amended (Term of office) Section 174 amended (Vacation of office) Section 176 amended (Casual vacancies) Section 176A amended (Individual duties of members of councils) Section 176B amended (Accountability for individual duties) Section 176C amended (Removal of members) Section 177 amended (Chairperson and deputy chairperson) Section 179 amended (Fees and allowances) Section 181 amended (Duties of councils) Section 182 amended (Determination of policy) Section 193 amended (Powers of councils) Section 194 amended (Statutes) Section 195 replaced (Trust property) 31A 32 33 34 35 36 37 38 39 40 41 42 2 Education (Vocational Education and Training Reform) Amendment Bill 43 44 45 46 46A 47 48 49 Trust property 195 Section 195A amended (Criteria for risk assessment of institutions) Section
 195B amended (Institutions to provide information if required) Section 195C amended (Minister may appoint Crown observer) Section 195D amended (Minister may dissolve council and appoint commissioner) Section 200 amended (Bank accounts) Section 203 amended (Institutions are Crown entities) Section 222 amended (Delegation by council) Part 15A replaced Part 15A New Zealand Institute of Skills and Technology NZIST established Functions of NZIST NZIST’s charter 222A 222B 222C 222D Minister may specify
 administrative regions for NZIST 222E 222F Academic freedom of NZIST NZIST must establish regional divisions NZIST’s council 222G Membership of NZIST’s council 222H Matters to be considered when Minister appoints 222I 222J members to NZIST’s council Chairperson and deputy chairperson Term of office Additional provisions applying to NZIST’s council and NZIST subsidiaries Determination of policy NZIST’s council must establish advisory committees 222K 222L 222M Membership of advisory committees 222N NZIST and NZIST subsidiary must obtain consent for certain capital projects NZIST must obtain consent for certain capital projects of NZIST or NZIST subsidiary NZIST subsidiary must obtain consent before exercising powers under section 192(4) Interventions Criteria for risk assessment of NZIST and related entities NZIST or related entity must provide information if required 222N 222O 222P 222Q 222R Minister may appoint Crown observer 222S Specialist help Education (Vocational Education and Training Reform) Amendment Bill Performance improvement plan 222T 222U Minister may appoint Crown manager 222V Protection of Crown manager 222VA Powers may be used concurrently 222W Minister may dissolve NZIST’s council and appoint 222X commissioner NZIST’s council may request intervention Application of Crown Entities Act 2004 to NZIST’s council 222Y Additional provisions of Crown Entities Act
 2004 that apply to NZIST’s council Specific Further provisions relating to NZIST subsidiaries Formation of NZIST subsidiaries 222Z 222ZA Duration of NZIST subsidiaries 222ZB NZIST council may dissolve NZIST subsidiary 222ZC Application of Schedule 23 Section 234A amended (Fees for domestic students must not exceed maximums set in conditions of funding) Section 246A amended (Functions of Authority) Section 248B amended (Standard-setting bodies) Section 249 amended (Approval of programmes) Section 250 amended
 (Accreditation to provide approved programmes) Section 251 amended (Application for training scheme approval) Section 252 amended (Consent to assess against standards) Section 253 amended (Rules) Section 253C amended (Minister may consent to use of certain terms in name or description of registered establishment or wananga) Section 254 amended (Fees) Section 254A amended (Power to obtain information) Section 255 amended (Compliance notices) Section 292 amended (Offences relating to use of certain terms) Section 299A repealed (Transitional and savings provisions relating to councils of tertiary institutions consequential on enactment of Education Amendment Act 2015) Section 321 amended (Grant to educational bodies) New Part 34 inserted Part 34 Work-based Vocational education and training 477 Interpretation Education (Vocational Education and Training Reform) Amendment Bill 478 479 480 481 482 483 484 485 486 487 488 Training contracts agreements and apprenticeship training agreements part of employment agreement Subpart 1—Workforce development councils Establishment of workforce development councils Disestablishment of workforce development councils Incorporation Functions of workforce development councils Workforce development council’s functions in relation to wananga Workforce development council must not operate registered
 establishment Obligations Duties of workforce development councils Annual fee payable by workforce development council Qualifications Authority may issue quality assurance improvement notice Qualifications Authority may issue compliance notice Audit 488A Application of Public Audit Act 2001 Validity of acts 488B 488C Act in breach of statute invalid Some natural person acts protected Subpart 2—Apprenticeships Interpretation Apprenticeship training activities must be included in proposed plan Obligations Duties of
 persons carrying out apprenticeship training activities Minister may issue apprenticeship training code Availability of apprenticeship training code Apprenticeship training code to be taken into account by mediator, Employment Relations Authority, and Employment Court Application of Legislation Act 2012 to apprenticeship training code Subpart 3—Training levy Interpretation Purpose of levy Imposition of levy Levy may be imposed by Order in Council Restrictions on making of levy orders Matters to be specified in levy orders Education (Vocational Education and Training Reform) Amendment Bill Purposes for which levy may be required Levy order may require provision of information Orders are confirmable instruments Expiry of levy orders Ballots Independent returning officer must conduct ballot Workforce development council must identify potential members of levy group Returning officer must notify potential members of levy group Commission must resolve coverage disputes Population to be balloted Requirements of ballot papers Returning officer must count votes Returning officer must keep ballot papers, etc Collection of levy Levy is payable by qualifying members to workforce development council Certificate of exemption Method of collecting levy Levy order may provide for collection by agent Duties of workforce development councils and others in
 relation to levies Levy funds must be kept in separate bank accounts and used only for authorised purposes Duty to keep records Duty to provide annual report Duty to protect commercially sensitive information Disputes 501 502 503 504 505 506 507 508 509 510 511 512 513 514 515 516 517 518 519 520 Arbitration or mediation system must be established Disputes about coverage Appeals to District Court 521 522 523 Schedule 1 amended Schedule 13A amended Part 1 Provisions relating to all tertiary education
 institutions Schedule 19 repealed New Schedules 22 to 24 25 inserted Education (Vocational Education and Training Reform) Amendment Bill Part 1 cl 4 Part 2 Repeals, revocations, and other amendments 70 71 72 73 Repeal of Industry Training and Apprenticeships Act 1992 Repeal of Education (Polytechnics) Amendment Act 2009 Orders revoked Consequential amendments to other enactments Schedule 1 New Part 9 inserted into Schedule 1 Schedule 2 New Part 2 inserted into Schedule 13A Schedule 3 New Schedule 22 inserted Schedule 4 New Schedule 23 inserted Schedule 5 New Schedule 24 inserted Schedule 5A New Schedule 25 inserted Schedule 6 Consequential amendments to other enactments The Parliament of New Zealand enacts as follows: 56 56 56 57 58 79 80 83 89 91 92 1 2 3 4 (1) (2) Title This Act is the Education (Vocational Education and Training Reform) Amend- ment Act 2019.
Commencement This Act comes into force on 1 April 2020.

Principal Act This Act amends the Education Act 1989 (the principal Act).

Part 1 Substantive amendments to principal Act 5 10 Section 2 amended (Interpretation) In section 2(1), repeal the definition of industry training organisation.

In section 2(1), definition of tertiary component, replace “section 13C of the Industry Training and Apprenticeships Act 1992” with “section 489”.
7 Part 1 cl 5 Education (Vocational Education and Training Reform) Amendment Bill 5 6 7 (1) Section 31B amended (Provider group for secondary-tertiary programme) Repeal section 31B(1)(b)(ii).

Section 31F amended (Recognition as lead provider of secondary-tertiary programme) Repeal section 31F(d).
Section 159 amended (Interpretation) In section 159(1), replace the definition of council with: council,— (a) (b) in relation to an institution other than NZIST, means the body that gov- erns the institution in accordance with section 165: in relation to NZIST, means NZIST’s council members appointed under section 222G 5 10 (2) In section 159(1), replace the definition of existing institution with: existing institution means a body specified in Part 1 or 2 of Schedule 13 (3) In section 159(1), definition of institution, replace paragraph (b) with: 15 (b) NZIST (including, as the case requires, its subsidiaries that provide edu- cation or training, or both); or (4) In section 159(1), replace the definition of record of achievement with: record of achievement means a record of a student’s educational outcomes maintained by the Qualifications Authority or a tertiary education provider 20 (5) In section 159(1), replace the definition of private training establishment with: private training establishment means an establishment, other than an institu- tion, that provides post-school education or training, including vocational edu- cation and training (6) In section 159(1), definition of tertiary education provider, replace “follow- ing, but does not include an industry training organisation” with “following”.
(7) In section 159(1), repeal the following definitions: (a) (b) (c) (d) (e) (f) combined council: designated polytechnic: industry training organisation: polytechnic: polytechnic council: reconstitution day.
(8) In section 159(1), insert in their appropriate alphabetical order: 25 30 35 8 Education (Vocational Education and Training Reform) Amendment Bill Part 1 cl 9 New Zealand Institute of Skills and Technology or NZIST means the New Zealand Institute of Skills and Technology established by section 222A NZIST subsidiary means a Crown entity subsidiary of NZIST trainee— (a) means an employee who has a training contract agreement; and 5 (b) includes an apprentice as defined in section 489 training contract agreement means a contract an agreement between an employer and an employee that relates to the employee’s receipt of, or provides for the employee to receive, vocational education and training (whether provi- ded by the employer or some other person) 10 vocational education and training means education and training that leads to the achievement of industry-developed skill standards, qualifications, or other awards vocational education and training— (a) means education and training that leads to the achievement of industry- 15 developed skill standards, qualifications, or other awards; and (b) includes work-based training work-based training has the same meaning as in section 477 workforce development council means a workforce development council established under section 479 In section 159(3), delete “polytechnic,”.
Section 159B amended (Definition of organisation) Replace section 159B(1)(b) with: (b) a workforce development council: (9) 8 9 Section 159F amended (Functions of Commission) (1) After section 159F(1)(e), insert: (ea) (eb) to ensure the availability within industry of high-quality vocational edu- cation and training; and to promote the availability of vocational education and training to people of a kind or description specified in the Commission’s statement of intent as people to whom that training has not traditionally been avail- able (whether within a particular industry or industries, or generally); and (ec) (ed) to develop and recommend to the Minister an apprenticeship training code for the purposes of section 492; and to make the apprenticeship training code available as required by sec- tion 493; and 20 25 30 35 9 Part 1 cl 10 Education (Vocational Education and Training Reform) Amendment Bill (efe) to monitor the performance of persons carrying out apprenticeship train- ing activities (whether or not under a plan or a funding agreement) to ensure that they comply with the apprenticeship training code; and (egf) to exercise the powers and perform the functions of the Commission under subpart 3 of Part 34 (which relates to work-based training lev- ies); and 5 (2) In section 159F(1)(f), delete “, the Industry Training Act 1992, the Modern Apprenticeship Training Act 2000,”.
10 New sections 159FA to 159FC inserted After section 159F, insert: 159FA Duties of Commission in relation to workforce development council (1) The Commission must— (a) (b) have regard to advice from a workforce development council in relation to its specified industries in when assessing any proposed plan under section 159YA or when considering funding an organisation other than via a plan under section 159ZC in relation to vocational education and training; and give effect to advice from a workforce development council about the mix of vocational education and training needed for the 1 or more indus- tries covered by the workforce development council when deciding to give funding approval to organisations under section 159YA(5).
The duty in subsection (1)(b) is subject to— (a) any funding limits set by the Minister under section 159L and the Com- mission under section 159O; and (b) any capacity or capability constraints of providers organisations to pro- vide, arrange, and support the mix of vocational education and training.
25 The Commission must advise a workforce development council, in writing, if it is unable to give effect to the workforce development council’s advice about the mix of vocational education and training needed for the council’s specified industries due to any limits or constraints referred to in subsection (2)(b) and advise the workforce development council about— (a) (b) what specific actions the Commission intends to take to address those limits or constraints within the next 3 years; and its right to object to the Minister if the workforce development council reasonably believes that the Commission has not adequately responded to its advice about the mix of vocational education and training required to meet the needs of its specified industries.
30 35 10 15 20 (2) (3) 10 Education (Vocational Education and Training Reform) Amendment Bill Part 1 cl 12 159FB Power of Commission to require information from workforce development council (1) The chief executive of the Commission may, by written notice to a workforce development council, require it to provide the chief executive with any infor- mation about the financial position or operations (or both) of the workforce development council (whether or not funded under a plan under section 159YA).
(2) A workforce development council that receives a notice under subsection (1) must provide the chief executive of the Commission with the required informa- tion within the time period specified in the notice.

(3) The chief executive of the Commission may, at any time, revoke or amend a notice given under subsection (1).
159FC Power of Commission to audit workforce development council (1) For the purpose of ascertaining whether a workforce development council is complying, or has complied, with the provisions of this Act, the chief executive of the Commission may commission an independent audit of the workforce development council.
(2) The audit may (without limitation) include an assessment of— 5 10 15 (a) (b) the conduct of the workforce development council’s functions: the application of funding provided to the workforce development coun- cil by the Commission.

20 11 Section 159G amended (Principles guiding how Commission operates) In section 159G(b) and (c), replace “industry training organisations” with “workforce development councils”.
12 New section 159KBB inserted (Additional requirement of NZIST’s council to provide information) 25 After section 159KBA, insert: 159KBB Additional requirement of NZIST’s council to provide information (1) The chief executive of the Commission may, by written notice to NZIST’s council, require it to provide the chief executive with any information about any information that the chief executive considers is reasonably required in relation to the operation of NZIST or any related entity of NZIST for the pur- pose of determining whether there is a risk to, or arising from,— 30 (a) (b) the governance, management, or financial position of NZIST or a related entity of NZIST; or 35 the education and training performance of students enrolled at NZIST or a related entity of NZIST.
11 Part 1 cl 13 Education (Vocational Education and Training Reform) Amendment Bill (2) (3) (4) 13 14 (1) If NZIST’s council receives a notice under subsection (1), it must provide the chief executive of the Commission with the required information within the time period specified in the notice.

The chief executive of the Commission may revoke or amend any notice given under subsection (1).

For the purposes of subsection (1), related entity, in relation to NZIST, has the same meaning as in section 164A.
Section 159L amended (Minister determines design of funding mechanisms) Replace section 159L(3)(d) with: 5 10 (d) specify the conditions that the Commission must attach to funding that is provided under funding mechanisms, including (without limitation) con- ditions setting limits on fees that— (i) (ii) organisations may charge domestic students: tertiary education providers organisations may charge employers for supporting their employees’ work-based training; and 15 Section 159M amended (Restrictions on design of funding mechanisms) In section 159M(b), after “students”, insert “or that tertiary education providers organisations may charge employers”.
(2) In section 159M, insert as subsection (2): 20 (2) However, the Minister may direct that funding be provided to NZIST via a funding mechanism if the Minister reasonably considers that it is consistent with the efficient use of national resources and in the national interest to do so.

15 Section 159OA amended (Variation of determination of design of funding mechanisms) 25 In section 159OA(4), after “students”, insert “and that tertiary education pro- viders organisations may charge employers”.
16 (1) (2) Section 161 amended (Academic freedom) In the heading to section 161, after “freedom”, insert “and institutional autonomy of institutions (other than NZIST)”.

30 In section 161(1), replace “institutions that academic freedom and the autonomy of institutions” with “universities, wananga, colleges of education, and specialist colleges that academic freedom and the autonomy of those insti- tutions”.
(3) After section 161(4), insert: 35 (5) This section does not apply to NZIST (for which section 222E provides).

12 Education (Vocational Education and Training Reform) Amendment Bill Part 1 cl 22 17 (1) (2) (3) (4) Section 162 amended (Establishment of institutions) Repeal section 162(1)(c).

In section 162(2) and (4), delete “a polytechnic,”.

Repeal section 162(4)(b)(ii).

In section 162(5), delete “polytechnic,” in each place.
5 (5) After section 162(9), insert: (10) Subsection (5) does not apply to NZIST (for which section 222A(2) pro- vides).

18 Section 163 amended (Constitution of institutions) In section 163(1), replace “paragraph (b) or paragraph (c) of section 162(1) shall consist” with “section 162(1)(b) consists”.

10 19 (1) Section 164 amended (Disestablishment of institutions) In section 164(4)(b), delete “(for example, a disestablished polytechnic may be incorporated in a university)”.
(2) After section 164(6), insert: (7) 20 To avoid doubt, nothing in this section applies to NZIST.

Section 165 replaced (Institutions to be governed by councils) Replace section 165 with: 165 Institutions to be governed by councils (1) (2) The governing body of NZIST is its council members council, the members of which are appointed under section 222G.

The governing body of every other institution is its council constituted in accordance with this Part.
(3) A reference in any enactment to the council or other governing body of an institution referred to in subsection (2) must be construed as a reference to the council of the institution.

(4) Subject to section 193(2), all acts or things done in the name of, or on behalf of, an institution with the authority of, or of a delegate of, the council or the chief executive are to be treated as being done by the institution.
21 Section 166 amended (Incorporation) In section 166(1), replace “and each college of education, polytechnic,” with “NZIST, and each college of education,”.

15 20 25 30 22 Section 169 amended (Constitutions of councils of new institutions) Replace section 169(4) with: (4) This section does not apply to the membership of NZIST’s council.
35 13 Part 1 cl 23 Education (Vocational Education and Training Reform) Amendment Bill 23 Section 170 amended (Amendment of constitution) (2) 24 (2) Replace section 170(2) with: Subsection (1) does not apply to NZIST’s council.

Section 170A amended (Constitution to provide for membership of council) Replace section 170A(2) with: Subsection (1) does not apply to the membership of NZIST’s council (for which section 222G provides).
25 Section 171 amended (Membership of council) Replace section 171(2) with: 5 10 (2) Subsection (1) does not apply to the membership of NZIST’s council (for which section 222G provides).

26 Section 171A amended (Certain people disqualified from appointment) (2) 27 (3) 28 Replace section 171A(2) with: Subsection (1) does not apply to the membership of NZIST’s council (for which section 222G(2) provides).
15 Section 171B amended (Matters to be considered when appointing members) Replace section 171B(3) with: This section does not apply to the membership of NZIST’s council (for which section 222H provides).

20 Section 171C amended (Statutes relating to appointment of members by councils of institutions) (1) In section 171C(1), delete “(or, as the case requires, section 222AA(1)(b))”.

(2) After section 171C(6), insert: This section does not apply to the membership of NZIST’s council.
Section 171D amended (Limitations on number of occasions on which people may be appointed as members of councils) Replace section 171D(5) with: This section does not apply to NZIST’s council.

Section 171F amended (Certain acts and proceedings not invalidated by defects) Replace section 171F(2) with: (7) 29 (5) 30 14 25 30 Education (Vocational Education and Training Reform) Amendment Bill Part 1 cl 38 (2) This section does not apply to NZIST’s council (for which section 222G(3) provides).
31 Section 173 amended (Term of office) After section 173(2), insert: (3) This section does not apply to appointments to NZIST’s council (for which section 222J provides).

5 31A Section 174 amended (Vacation of office) After section 174(4), insert: (5) 32 (4) 33 (5) 34 (1) This section does not apply to a member of NZIST’s council.

Section 176 amended (Casual vacancies) After section 176(3), insert: This section does not apply to appointments to NZIST’s council.
Section 176A amended (Individual duties of members of councils) After section 176A(4), insert: This section does not apply to a member of NZIST’s council.

Section 176B amended (Accountability for individual duties) In section 176B(2), delete “or 222AJ (as the case requires)”.

(2) After section 176B(7), insert: (8) 35 (8) This section does not apply to a member of NZIST’s council.
Section 176C amended (Removal of members) Replace section 176C(8) with: This section does not apply to the removal from office of a member of NZIST’s council.

36 Section 177 amended (Chairperson and deputy chairperson) Replace section 177(9) with: (9) This section does not apply to the chairperson or deputy chairperson of NZIST’s council (for which section 222I provides).
37 Section 179 amended (Fees and allowances) After section 179(3), insert: (4) 38 This section does not apply to a member of NZIST’s council.

Section 181 amended (Duties of councils) In section 181, insert as subsection (2): 10 15 20 25 30 15 Part 1 cl 39 Education (Vocational Education and Training Reform) Amendment Bill (2) In addition, NZIST’s council must comply with section 97 of the Crown Entities Act 2004 in respect of its subsidiaries.
39 Section 182 amended (Determination of policy) After section 182(5), insert: (6) 40 (1) (2) This section does not apply to NZIST (for which section 222K provides).

5 Section 193 amended (Powers of councils) In section 193(2)(e), delete “(for example, the council of a polytechnic may agree to the disestablishment of the polytechnic and its incorporation in a uni- versity)”.
In section 193(2)(ea), delete “(for example, the council of a university may agree to the incorporation of a polytechnic in the university)”.

10 (3) After section 193(2), insert: (2A) Subsection (2)(e) and (ea) does not apply to NZIST’s council.

41 (1) Section 194 amended (Statutes) In section 194(1), after “institution”, insert “and the board of an NZIST subsid- iary”.

15 (2) After section 194(1), insert: (1A) Subsection (1)(ia) does not apply to NZIST’s council or the board of an NZIST subsidiary.
42 Section 195 replaced (Trust property) Replace section 195 with: 195 Trust property Despite anything to the contrary in this Act or any other enactment relating to the institution (including NZIST and its subsidiaries), any real or personal property held by the institution upon trust must be dealt with in accordance with the powers and duties of the institution as trustee.
43 (1) Section 195A amended (Criteria for risk assessment of institutions) In the heading to section 195A, after “institutions”, insert “(other than NZIST)”.

(2) After section 195A(3), insert: (4) This section does not apply to NZIST’s council (for which section 222P pro- vides).
44 Section 195B amended (Institutions to provide information if required) After section 195B(5), insert: 20 25 30 16 Education (Vocational Education and Training Reform) Amendment Bill Part 1 cl 49 (6) This section does not apply to NZIST’s council (for which section 222Q pro- vides).

45 Section 195C amended (Minister may appoint Crown observer) After section 195C(6), insert: (7) 46 (9) This section does not apply to NZIST or its subsidiaries (for which section 222R provides).
5 Section 195D amended (Minister may dissolve council and appoint commissioner) After section 195D(8), insert: This section does not apply to NZIST or its subsidiaries (for which section 222W provides).

10 46A Section 200 amended (Bank accounts) After section 200(3), insert: (4) 47 (1) (2) (3) This section does not apply to NZIST’s council.

Section 203 amended (Institutions are Crown entities) In section 203(2), after “institutions,” insert “and their Crown entity subsidia- ries”.
Replace section 203(3) with: The provisions of the Crown Entities Act 2004 set out in Part 1 of Schedule 4 of that Act and Part 1 of Schedule 13A of this Act apply to all tertiary educa- tion institutions and their Crown entity subsidiaries (within the meaning of the Crown Entities Act 2004).

48 Section 222 amended (Delegation by council) After section 222(11), insert: (12) This section does not apply to NZIST’s council.
49 Part 15A replaced Replace Part 15A with: Part 15A New Zealand Institute of Skills and Technology 222A NZIST established (1) This section establishes the New Zealand Institute of Skills and Technology (NZIST) as a tertiary education institution.
15 20 25 30 17 Part 1 cl 49 Education (Vocational Education and Training Reform) Amendment Bill (2) The Governor-General may, by Order in Council made on the recommendation of the Minister given after receiving a recommendation from NZIST’s council, do either or both of the following: (a) (b) change the name of NZIST: amend this Act or any other enactment by omitting from it the name of NZIST and substituting some other name.
5 (3) To avoid doubt, NZIST does not cease to be a tertiary education institution merely because its name is changed under subsection (2).
222B Functions of NZIST NZIST has the following functions: (a) (a) to provide or arrange, and support, a range of education and training and conduct applied research: to provide or arrange, and support, a variety of education and training, including vocational, foundation, and degree-level or higher education and training: (ab) to conduct research, with a focus on applied and technological research: (b) (c) (d) (e) (f) to be responsive to and to meet the needs of the regions of New Zealand and their learners, industries, employers, and communities by utilising NZIST’s national network of tertiary education programmes and activ- ities: to improve the consistency of vocational education and training by using skill standards and working in collaboration with workforce develop- ment councils: to improve outcomes in the tertiary education system as a whole, includ- ing (without limitation) by making connections with schools and other organisations involved in tertiary education and by promoting and sup- porting life-long learning: to improve outcomes for Māori learners and Māori communities in col- laboration with Māori and iwi partners and partners, hapū, and other stakeholders.
: to carry out any other functions consistent with its role as a tertiary edu- cation institution.

10 15 20 25 30 222C NZIST’s charter (1) NZIST must give effect to its charter as set out in Schedule 22.

(2) NZIST must report in its annual report on how it has given effect to the charter.

35 (3) The duty in subsection (1) is owed to the Minister.
18 Education (Vocational Education and Training Reform) Amendment Bill Part 1 cl 49 222D Minister may specify administrative regions for NZIST The Minister may, by notice in the Gazette, specify administrative regions for the purposes of aligning with the regions as specified by the Government of government with which NZIST must make arrangements to operate effectively with.
5 222E Academic freedom of NZIST (1) It is declared to be the intention of Parliament in enacting the provisions of this Act relating to NZIST that NZIST’s academic freedom is to be preserved and enhanced.

(1A) NZIST’s academic freedom also applies in relation to every NZIST subsidiary 10 that provides education or training, or both.
(2) For the purposes of this section, academic freedom, in relation to NZIST, means— (a) (b) (c) (d) (e) the freedom of academic staff and students, within the law, to question and test received wisdom, to put forward new ideas, and to state contro- versial or unpopular opinions; and 15 the freedom of academic staff and students to engage in research; and the freedom of NZIST and its staff to regulate the subject matter of its courses; and the freedom of NZIST and its staff to teach and assess students in the manner they consider best promotes learning; and 20 the freedom of NZIST through its chief executive to appoint its own staff.
(3) However, nothing in subsection (2) limits or affects a workforce develop- ment council carrying out its relevant functions.

(4) In exercising academic freedom, NZIST must act in a manner that is consistent with— (a) (b) the need for institutions to maintain the highest ethical standards and the need to permit public scrutiny to ensure the maintenance of those stand- ards; and the need for institutions to be accountable and to properly use resources allocated to them.
(5) In performing their functions, NZIST’s council and its chief executive, Minis- ters, departments of State, authorities, and agencies of the Crown must act in all respects so as to give effect to the intention of Parliament as expressed in this section.

(6) NZIST’s academic freedom also applies in relation to NZIST subsidiaries that 25 30 35 provide education and training.
(6) To avoid doubt,— 19 Part 1 cl 49 Education (Vocational Education and Training Reform) Amendment Bill (a) (b) nothing in subsection (2) limits or affects a workforce development council performing its functions under section 482(1)(b) to (e), and (g); and the performance of those functions by the workforce development coun- cil does not limit or affect the academic freedom of NZIST as set out in subsection (2)(a), (b), or (e).
222F NZIST must establish regional divisions (1) NZIST must establish regional divisions for the purposes of— (a) (b) appointing members to a staff committee or a students’ committee estab- lished under section 222L: appointing directors to an NZIST subsidiary.

(2) NZIST may make statutes for the purposes of subsection (1).
5 10 NZIST’s council 222G Membership of NZIST’s council (1) NZIST’s council must have at least 8, but not more than 12, members, as fol- 15 lows: (a) (b) (c) 1 member must be a person who is elected by the regional representa- tives of a member of, and elected by, its staff committee; and 1 member must be a person who is elected by the regional representa- tives of a member of, and elected by, its students’ committee; and 20 1 member must be a person who is elected by a member of, and elected by, its Māori advisory committee; and (d) the rest of the members must be appointed by the Minister.
(2) A person is not eligible for appointment under subsection (1) if— (a) (b) (c) (d) the person is subject to a property order under the Protection of Personal and Property Rights Act 1988; or 25 a personal order has been made under that Act in respect of the person that reflects adversely on their— (i) (ii) competence to manage their own affairs in relation to their prop- erty; or 30 capacity to make or to communicate decisions relating to any par- ticular aspect or aspects of their personal care and welfare; or the person is a bankrupt who has not obtained an order of discharge, or whose order of discharge has been suspended for a term that has not yet expired or is subject to any conditions that have not yet been fulfilled; or 35 the person has at any time been removed from office as a member of the a council.
20 Education (Vocational Education and Training Reform) Amendment Bill Part 1 cl 49 (3) No act or proceeding of NZIST’s council, or any member or any committee of NZIST’s council, is invalid because of— (a) (b) (c) (d) a defect in the appointment or election of a member of the council or committee; or a disqualification of a member of the council or committee; or 5 a defect in the convening of a meeting; or a vacancy or vacancies in the membership of the a council or committee.
(4) To avoid doubt,— (a) (b) (c) an elected person referred to in subsection (1)(a) is a member of the council only while the person is a permanent member of the staff of NZIST or an NZIST subsidiary: an elected person referred to in subsection (1)(b) is a member of the council only while the person is a student enrolled at NZIST or an NZIST subsidiary: an elected person referred to in subsection (1)(c) is a member of the council only while the person is a member of the Māori advisory com- mittee.
(4) For the purposes of this section,— (a) (b) a person referred to in subsection (1)(a) is a member of the council only while the person is a permanent member of the staff of NZIST or an NZIST subsidiary: a person referred to in subsection (1)(b) is a member of the council only if the person is a student enrolled at NZIST or an NZIST subsidiary, but may continue to be a member of the council for a period of up to 12 months after the date on which their enrolment ends.
(5) To avoid doubt,— (a) (b) all permanent members of NZIST’s or an NZIST subsidiary’s staff are eligible for appointment under subsection (1)(a): all students enrolled at NZIST or an NZIST subsidiary are eligible for appointment under subsection (1)(b), regardless of the delivery mode by which the student receives education or training (for example, on- campus learning, distance learning, or work-based training).
10 15 20 25 30 222H Matters to be considered when Minister appoints members to NZIST’s council (1) It is desirable in principle that, as far as possible, NZIST’s council should reflect— 35 (a) the ethnic, gender, and socio-economic diversity, and the diversity of abilities, of New Zealand’s population; and (b) the fact that New Zealand is made up of a number of regions.
21 Part 1 cl 49 Education (Vocational Education and Training Reform) Amendment Bill (2) When appointing members of NZIST’s council, the Minister must have regard to subsection (1) and must appoint people who (in the Minister’s opinion)— (a) have relevant knowledge, skills, and experience in relation to govern- ance, cultural competency, and the importance of diversity; and (b) (c) are likely to be able to fulfil their individual duties to the council; and 5 together with the other members of the council, are capable of under- taking its responsibilities, duties, and functions.
(3) A person specified in section 222G(1)(a) and (b) is appointed by the council in accordance with the council’s statute unless the person is ineligible for appointment under section 222G(2).

222I Chairperson and deputy chairperson (1) (2) The Minister may appoint a chairperson and deputy chairperson of NZIST’s council from among its members by giving written notice to the member con- cerned stating the term for which the member is appointed as chairperson or deputy chairperson.
The Minister may, by written notice to the member concerned, dismiss the chairperson or deputy chairperson of NZIST’s council from office as chair- person or deputy chairperson.

(3) However, the Minister must not dismiss the chairperson or deputy chairperson without first consulting them on the proposed dismissal.
(4) The chairperson or deputy chairperson of NZIST’s council— (a) may resign as chairperson or deputy chairperson by giving written notice to the Minister; and (b) ceases to hold office if they— (i) (ii) cease to be a member of NZIST’s council; or become the chief executive of NZIST or a member of the staff of NZIST or an NZIST subsidiary; or (iii) become a student enrolled at NZIST or an NZIST subsidiary.
(5) A chairperson or deputy chairperson who resigns must give a copy of the notice of resignation to NZIST’s council.

The chairperson or deputy chairperson of NZIST’s council holds office as chairperson or deputy chairperson for the term for which they were appointed (but may be reappointed), unless the person earlier dies, is dismissed, resigns, or ceases to hold office under subsection (4)(b).
If the term of office of the chairperson or deputy chairperson expires before a successor is appointed, the chairperson or deputy chairperson continues in office until their successor is appointed.

(6) (7) 22 10 15 20 25 30 35 Education (Vocational Education and Training Reform) Amendment Bill Part 1 cl 49 222J Term of office (1) A member of NZIST’s council is appointed for a period not exceeding 4 years.
(2) When appointing members of NZIST’s council under section 222G(1)(d), the Minister must state in the notice appointing the member— (a) (b) the day on which the member’s appointment takes effect; and 5 the term for which the member is appointed.
Additional provisions applying to NZIST’s council and NZIST subsidiaries 222K Determination of policy (1) (2) In determining the policy of NZIST with respect to any matter, NZIST’s coun- cil must consult any board, committee, or other body established within NZIST that has responsibility for giving advice in relation to, or for giving effect to, the policy of NZIST with respect to the matter.
For the purposes of subsection (1), NZIST’s council must establish an aca- demic board consisting of its chief executive and members of the staff and stu- dents of NZIST to— (a) advise it on matters relating to work-based learning, courses of study or training, awards, and other academic matters; and (b) exercise powers delegated to it by the council.
(3) Without limiting subsection (1), NZIST’s council must not make any deci- sion or statute in respect of any academic matter referred to in subsection (2) unless it has requested the advice of the academic board and considered any advice given by the academic board.

(4) However, a decision or statute made by NZIST’s council is not invalid merely because of a failure of the council to comply with either of subsections (1) and (3).
10 15 20 25 222L NZIST’s council must establish advisory committees (1) NZIST’s council must establish a staff committee, a students’ committee, and a Māori advisory committee.

(2) Each committee established under subsection (1) must be treated as a board established by the council under section 193(2)(i).
30 (3) Without limiting section 222K(1), NZIST’s council must— (a) (b) consult each committee established under subsection (1) on significant matters relating to its strategic direction that are relevant to the class of people represented by that committee; and consider any advice given on those matters or any other matters by the committee.

35 (4) However, a decision or statute made by NZIST’s council is not invalid merely because of a failure of the council to comply with subsection (3).
23 Part 1 cl 49 Education (Vocational Education and Training Reform) Amendment Bill 222M Membership of advisory committees (1) When appointing members of its staff committee or its students’ committee, NZIST’s council must ensure that— 10 15 (a) (b) (c) each committee consists of persons representing a minimum of each sub- stantial regional division of NZIST established under section 222F; and 5 each member of the staff committee is a permanent member of the teach- ing or general staff of NZIST or an NZIST subsidiary whom the perman- ent members of the teaching and general staff of NZIST or an NZIST subsidiary have elected to represent them; and each member of the students’ committee is a student enrolled at NZIST or an NZIST subsidiary whom the students have elected to represent them.
(2) When appointing members of its Māori advisory committee, NZIST’s council must determine in consultation with its Māori and iwi partners and stakehold- ers, the size and composition of the committee, but must ensure that the com- position includes— (a) (b) representation from NZIST or any of its subsidiaries; and external people.
222N NZIST and NZIST subsidiary must obtain consent for certain capital 20 projects (1) NZIST must obtain the written consent of the Secretary for any capital project of NZIST or an NZIST subsidiary— (a) (b) that is not within a capital plan approved by the Secretary; or that meets or exceeds any thresholds for capital projects published by the Secretary on an Internet site maintained by or on behalf of the Ministry.
25 (2) For the purposes of subsection (1), an NZIST subsidiary must not carry out any capital project unless it is in a capital plan approved by the Secretary or NZIST has obtained the written consent of the Secretary.
222N NZIST must obtain consent for certain capital projects of NZIST or 30 NZIST subsidiary (1) A capital project may be undertaken by NZIST or an NZIST subsidiary only if— (a) (b) the cost of, or level of risk of, the project to NZIST is below thresholds set by the Secretary under subsection (2); or the project is within a capital plan of NZIST approved in writing by the Secretary; or 35 (c) NZIST has obtained the written consent of the Secretary for the project.
24 Education (Vocational Education and Training Reform) Amendment Bill Part 1 cl 49 (2) (3) The Secretary must, after consulting NZIST, set thresholds for the purposes of subsection (1)(a) and publish those thresholds on an Internet site maintained by or on behalf of the Ministry.

This section applies despite section 201A (which relates to how institutions may use capital and income).
5 222O NZIST subsidiary must obtain consent before exercising powers under section 192(4) An NZIST subsidiary must not exercise any of the powers in section 192(4) unless— (a) it has notified NZIST in writing of the proposed exercise of the power; and 10 (b) NZIST has obtained the consent of the Secretary to the proposed exer- cise of the power by the NZIST subsidiary.
Interventions 222P Criteria for risk assessment of NZIST and related entities 15 (1) For the purpose of exercising a power under any of sections 222R to 222W, the Secretary must, after consulting NZIST’s council, determine criteria for assessing the levels of risks to— (a) (b) NZIST and any related entity of NZIST; or the education and training performance of students enrolled at NZIST and any related entity of NZIST.

20 (2) (3) (4) The Secretary must publish the criteria in the Gazette.
The criteria must be reviewed at least once in every 2 years following the date of their publication in the Gazette.

In this section and sections 222Q to 222U, related entity, in relation to NZIST, has the same meaning as in section 164A.
25 222Q NZIST or related entity must provide information if required (1) If the chief executive of the Commission has reasonable grounds to believe that NZIST or a related entity of NZIST may be at risk, the chief executive may, by written notice to NZIST’s council, require the council to provide either or both of the following: 30 (a) (b) specified information about the operation, management, or financial pos- ition of NZIST or a related entity of NZIST at a given time: reports at specified intervals on specific aspects of the operation, man- agement, or financial position of NZIST or a related entity of NZIST.
35 (2) If the chief executive of the Commission requires information under subsec- tion (1), the information required must be information that relates to the risks 25 Part 1 cl 49 Education (Vocational Education and Training Reform) Amendment Bill to NZIST or the related entity that the chief executive of the Commission is concerned about.
(3) A council that If NZIST’s council receives a notice under subsection (1) it must provide the chief executive of the Commission with the required informa- tion within the period specified in the notice.

5 (4) The chief executive of the Commission may revoke or amend any notice given under subsection (1).
222R Minister may appoint Crown observer (1) This section applies if the Minister believes on reasonable grounds that— (a) (b) NZIST or a related entity of NZIST may be at risk; or the education and training performance of the students enrolled at NZIST or a related entity of NZIST may be at risk.

(2) The Minister may appoint a Crown observer to NZIST’s council.
(3) However, a Crown observer must not be appointed unless the Minister has first— 10 15 (a) (b) consulted NZIST’s council; and advised NZIST’s council that the Minister is considering appointing a Crown observer; and (c) given NZIST’s council an opportunity to comment on the proposal.

(4) An appointment under this section must be in writing and must state the date 20 on which it takes effect.
(5) A Crown observer may— (a) (b) (c) attend any meeting of NZIST’s council (or a committee or board of NZIST’s council) to which the Crown observer is appointed; and offer advice to NZIST’s council (or a committee or board of NZIST’s council); and 25 report to the Minister on any matter raised or discussed at any meeting that the person attends as a Crown observer.
(6) Except as authorised by subsection (5)(c), a Crown observer must, at all times, maintain confidentiality with respect to the affairs of NZIST’s council.

30 (7) A Crown observer is not a member of NZIST’s council (or a committee or board of NZIST’s council), and may not— vote on any matter; or exercise any of the powers, or perform any of the functions or duties, of a member of NZIST’s council.
35 (a) (b) 26 Education (Vocational Education and Training Reform) Amendment Bill Part 1 cl 49 222S Specialist help (1) This section applies if the chief executive of the Commission believes on reasonable grounds that— (a) (b) NZIST or a related entity of NZIST may be at risk; or the education and training performance of the students enrolled at NZIST or a related entity of NZIST may be at risk.
5 (2) The chief executive may, by written notice to NZIST’s council, require it— (a) (b) to obtain specialist help; or to obtain specialist help for a related entity of NZIST.

(3) The notice must state— (a) (b) the help or kind of help to be obtained; and the person or organisation, or kind of person or organisation, from whom or from which it is to be obtained.

(4) As soon as is reasonably practicable after receiving the notice, NZIST’s council must comply with it.
(5) NZIST’s council must— 10 15 (a) (b) provide the information and access, and do all other things, reasonably necessary to enable the person or organisation engaged to provide the help; and to the extent that the help provided is advice, take the advice into account in performing its functions and duties; and 20 (c) pay the person or organisation’s reasonable fees and expenses.
222T Performance improvement plan (1) This section applies if the chief executive of the Commission believes on reasonable grounds that— 25 (a) (b) NZIST or a related entity of NZIST may be at risk; or the education and training performance of the students enrolled at NZIST or a related entity of NZIST may be at risk.
(2) The chief executive may, by written notice to NZIST’s council, require it to prepare and give to the chief executive a draft performance improvement plan for NZIST or a related entity of NZIST.
30 (3) The notice must state— (a) (b) the matters to be addressed by the draft plan; and the outcomes that implementation of the draft plan is intended to achieve; and 35 (c) the times by which those outcomes should be achieved; and 27 Part 1 cl 49 Education (Vocational Education and Training Reform) Amendment Bill (d) the performance measures that will be used to determine whether those outcomes have been achieved; and (e) the date by which the draft plan must be given to the chief executive.
(4) NZIST’s council must prepare, and give to the chief executive by the stated date, a draft plan that complies with subsection (3).

The chief executive may— (5) (a) (b) approve the draft plan; or after considering the draft plan, approve for NZIST or the related entity some other plan that complies with subsection (3) (whether a modified version of the draft plan or a different plan).
(6) (7) If the council does not comply with subsection (4), the chief executive may approve for NZIST or the related entity (as the case may be) any plan that com- plies with subsection (3) that the chief executive thinks appropriate.

The chief executive must not approve any plan other than a draft plan given to the chief executive before discussing it with NZIST’s council.

(8) NZIST’s council must take all reasonably practicable steps to implement a plan approved under this section.
5 10 15 222U Minister may appoint Crown manager (1) This section applies if the Minister believes on reasonable grounds— (2) (3) (a) (b) that there is a risk to the operation or long-term viability of NZIST or a related entity of NZIST; or 20 that the education and training performance of the students enrolled at NZIST or a related entity of NZIST is at risk.

The Minister may, by written notice to NZIST’s council, appoint a Crown man- ager for NZIST.
25 The Minister must not appoint a Crown manager under subsection (2) with- out— (a) (b) (c) giving NZIST’s council written notice of the Minister’s intention to do so and the Minister’s reasons for intending to do so; and allowing NZIST’s council a reasonable time to respond to the notice; and 30 considering any written submissions received from NZIST’s council within that time.
(4) Whether a time is reasonable in any particular case may depend (among other things) on the urgency of the matters the Crown manager will have to deal with.
35 (5) The notice must state— 28 Education (Vocational Education and Training Reform) Amendment Bill Part 1 cl 49 (a) (b) (c) (d) the name of the Crown manager and the day on which their appointment takes effect; and the functions of NZIST’s council to be performed by the Crown man- ager; and any conditions subject to which the Crown manager may perform those functions; and 5 any matters about which the Crown manager may advise NZIST’s coun- cil.
(6) As soon as practicable after appointing a Crown manager, the Minister must notify the appointment in the Gazette.
10 (7) While there is a Crown manager appointed for NZIST,— (a) the Crown manager may perform any of the functions stated in the notice appointing them, and— (i) (ii) for that purpose the Crown manager has all the powers of NZIST’s council; but 15 in performing any of those functions (and exercising any of those powers in order to do so), the Crown manager must comply with all relevant duties of NZIST’s council; and (b) NZIST’s council— (i) must not perform any of those functions; but (ii) must provide the information and access, and do all other things, reasonably necessary to enable the Crown manager to perform those functions and exercise those powers.
(8) The Crown manager must perform any function under subsection (7)(a) (and exercise any power in order to do so) in accordance with this Act and, in par- ticular, must have regard to section 222E.

(9) NZIST’s council must pay the Crown manager’s reasonable fees and expenses.
(10) If the Crown manager’s appointment has not earlier been revoked, the Minister must consider whether the reasons for the appointment still apply— (a) (b) no later than 12 months after it was made; and no later than 12 months after the Minister last considered whether they still apply.
20 25 30 222V Protection of Crown manager A Crown manager is not personally liable for any act done or omitted to be done by the Crown manager, or for any loss arising from that act or omission, if the Crown manager was acting— 35 (a) (b) in good faith; and in the course of carrying out their functions.
29 Part 1 cl 49 Education (Vocational Education and Training Reform) Amendment Bill 222VA Powers may be used concurrently To the extent that it is possible in practice, powers given by 2 or more of sec- tions 222Q to 222U may be exercised concurrently.
222W Minister may dissolve NZIST’s council and appoint commissioner (1) The Minister may, by written notice, dissolve NZIST’s council and appoint a commissioner to act in place of the council if the Minister believes on reason- able grounds that— 5 (a) there is a serious risk to the operation or long-term viability of NZIST; and (b) other methods of reducing the risk have failed or appear likely to fail.
10 (2) A notice under subsection (1) must specify— (a) (b) the date on which the dissolution and appointment take effect; and the name of the person appointed as commissioner.
(3) The Minister may not exercise the power under subsection (1) unless the Minister has first— 15 (a) (b) (c) (d) consulted NZIST’s council and any other interested parties over the pos- sible need to dissolve the council and appoint a commissioner; and following that consultation, given the council written notice of the Min- ister’s preliminary decision that NZIST’s council should be dissolved and a commissioner appointed in its place; and 20 allowed NZIST’s council at least 21 days in which to respond to the pre- liminary decision; and considered any submissions made by NZIST’s council about why the preliminary decision should not be confirmed.
(4) As soon as practicable after giving a notice under subsection (1), the Minis- 25 ter must— (a) (b) publish a copy of it in the Gazette; and present a copy of it to the House of Representatives.

(5) When a commissioner is appointed under this section, the Minister must review the appointment at least once in every 12 months following the appointment.
30 (6) As soon as the Minister is satisfied (following an annual review or at any other time) that the risk that gave rise to the appointment of the commissioner has reduced to such an extent that it is appropriate that NZIST be administered by a council, a new council must be appointed in accordance with sections 222G to 222J.

35 (7) A commissioner’s appointment ends on the close of the day before a new coun- cil takes office.
30 Education (Vocational Education and Training Reform) Amendment Bill Part 1 cl 49 (8) Sections 195DA, 195E, and 195F apply, with any necessary modifications, as if a commissioner appointed under subsection (1) were appointed under sec- tion 195D.
222X NZIST’s council may request intervention If NZIST’s council requests the Minister or the chief executive of the Commis- sion (as the case may be) to act under any of sections 222R to 222W, the Minister or the chief executive— 5 (a) must consider any argument or evidence supplied by NZIST’s council; and (b) must consider whether or not to act under that section; but (c) may then (if any necessary conditions are satisfied) act under another of those sections giving them power to act.
Application of Crown Entities Act 2004 to NZIST’s council 222Y Additional provisions of Crown Entities Act 2004 that apply to NZIST’s council (1) The provisions of the Crown Entities Act 2004 specified in Part 2 of Schedule 4 of that Act and Part 2 of Schedule 13A of this Act apply to NZIST and NZIST’s council.

(2) NZIST must be treated as a statutory entity for the purpose of applying those provisions.
Specific Further provisions relating to NZIST subsidiaries 222Z Formation of NZIST subsidiaries (1) NZIST may, with the written approval of the Minister, form 1 or more NZIST subsidiaries.

(1A) Schedule 25 specifies further provisions of this Act that apply and do not apply to an NZIST subsidiary formed under subsection (1) that provides edu- cation or training, or both.
(2) The Governor-General may, by Order in Council made on the recommendation of the Minister, specify further provisions of this Act that do not apply to an NZIST subsidiary formed under subsection (1) that does not provide educa- tion and training education or training, or both.

10 15 20 25 30 222ZA Duration of NZIST subsidiaries (1) An NZIST subsidiary listed in the second column of the table in clause 27(3) of Schedule 1 continues in existence until the close of 31 December 2022.
(2) However, the Governor-General may, by Order in Council made on the recom- mendation of the Minister, extend the date on which any particular NZIST sub- 35 31 Part 1 cl 50 Education (Vocational Education and Training Reform) Amendment Bill sidiary or all NZIST’s subsidiaries may continue to exist to a date specified in the order.

Before making a recommendation, the Minister must consult NZIST on the proposed extension and take into account NZIST’s views.
The Minister must not recommend an extension under subsection (2) unless the Minister is satisfied on reasonable grounds that the extension is— 5 (3) (4) (a) (b) consistent with the NZIST’s responsibilities under the charter set out in Schedule 22; and in the interests of the tertiary education system and the nation as a whole.
222ZB NZIST council may dissolve NZIST subsidiary NZIST’s council may, by resolution, at any time before the date specified in section 222ZA(1) or by Order in Council made under section 222ZA(2), dissolve an NZIST subsidiary and transfer the undertaking of the subsidiary to NZIST or another NZIST subsidiary.

222ZC Application of Schedule 23 50 (1) (2) (3) 51 Schedule 23 applies if an NZIST subsidiary is dissolved under section 222ZA(1) or in accordance with section 222ZB .
Schedule 23 applies to an NZIST subsidiary on its dissolution date (as defined in clause 1 of that schedule).

Section 234A amended (Fees for domestic students must not exceed maximums set in conditions of funding) In the heading to section 234A, after “students”, insert “and employers”.

In section 234A(2), after “students”, insert “or employers”.

In section 234A(3), after “student”, insert “or an employer”.
Section 246A amended (Functions of Authority) After section 246A(1)(d), insert: (da) to monitor, through the exercise of its powers under this Act, compliance by workforce development councils with the prescribed quality assur- ance requirements, and to address non-compliance: (db) to monitor the quality and results of a workforce development council’s systems and procedures for its moderation activities: 10 15 20 25 30 52 Section 248B amended (Standard-setting bodies) Replace section 248B(1)(a) with: (a) a workforce development council established in accordance with sec- tion 479; and 35 32 Education (Vocational Education and Training Reform) Amendment Bill Part 1 cl 59 53 Section 249 amended (Approval of programmes) In section 249(1), delete “industry training organisation,”.
54 Section 250 amended (Accreditation to provide approved programmes) Repeal section 250(6)(b).

55 (1) (2) (3) 56 57 (1) (2) 58 (1) (2) 59 (1) (2) Section 251 amended (Application for training scheme approval) 5 In section 251(1), delete “industry training organisation,”.

Repeal section 251(3).

Repeal section 251(6)(b).

Section 252 amended (Consent to assess against standards) In section 252(1), delete “industry training organisation,”.
Section 253 amended (Rules) Replace section 253(1)(ga) and (gb) with: (ga) prescribing the amount of, or the method for determining, the annual fee payable by a workforce development council and when and how that fee is payable: (gb) prescribing quality assurance requirements for workforce development councils, including (without limitation) requirements relating to the per- formance of the relevant functions of workforce development councils: (gc) prescribing matters relating to training packages: In section 253(1)(m), replace “workplace” with “work-based”.
Section 253C amended (Minister may consent to use of certain terms in name or description of registered establishment or wananga) In section 253C(2) and (2A), replace “university, college of education, poly- technic, or institute of technology” with “university or college of education”.

Repeal section 253C(4).

Section 254 amended (Fees) 10 15 20 25 In section 254(1), replace “industry training organisation,” with “workforce development council,”.
In section 254(2)(c), delete “(including quality assurance activities undertaken in accordance with the Authority’s functions under the Industry Training and Apprenticeships Act 1992)”.

30 (3) Repeal section 254(2)(d).

33 Part 1 cl 60 Education (Vocational Education and Training Reform) Amendment Bill 60 Section 254A amended (Power to obtain information) In section 254A(1), replace “industry training organisation,” with “workforce development council,”.
61 (1) (2) 62 Section 255 amended (Compliance notices) In section 255(1), replace “industry training organisation,” with “workforce development council,”.

5 In section 255(2)(d) and (7)(e), replace “workplace” with “work-based”.
Section 292 amended (Offences relating to use of certain terms) Replace section 292(1)(c) and (d) with: (c) (d) uses the term polytechnic to describe an educational establishment or facility unless the educational establishment or facility is NZIST or an NZIST subsidiary: uses the term institute of technology to describe an educational establish- ment or facility unless the educational establishment or facility is NZIST or an NZIST subsidiary: 63 Section 299A repealed (Transitional and savings provisions relating to councils of tertiary institutions consequential on enactment of Education Amendment Act 2015) Repeal section 299A.
64 Section 321 amended (Grant to educational bodies) In section 321(2), replace “an industry training organisation” with “a workforce development council”.
65 New Part 34 inserted After Part 33, insert: Part 34 Work-based Vocational education and training 477 Interpretation In this Part, unless the context otherwise requires,— capstone assessment, in relation to a student or trainee enrolled in a pro- gramme that leads to a qualification, means a final assessment that requires the student or trainee to demonstrate their overall achievement of knowledge, skills, and attributes set out in the graduate profile for the qualification Commission has the same meaning as in section 159(1) employment agreement has the same meaning as in the Employment Rela- tions Act 2000 35 34 10 15 20 25 30 Education (Vocational Education and Training Reform) Amendment Bill Part 1 cl 65 funding approval has the same meaning as in section 159(1) industry means 2 or more enterprises that use— (a) the same or similar inputs and methods of production to produce the same or similar products; or (b) the same or similar methods to provide the same or similar services 5 Minister means the Minister of the Crown who, under the authority of any warrant or with the authority of the Prime Minister, is for the time being responsible for the administration of this Part plan has the same meaning as in section 159(1) programme has the same meaning as in section 159(1) 10 provider includes means— (a) (a) NZIST or an NZIST subsidiary; and NZIST: (ab) an NZIST subsidiary that provides education or training, or both: (b) a government training establishment, a registered establishment, and a wananga within
 the meaning of those terms in section 159(1) 15 qualification means a qualification listed on the Qualifications Framework Qualifications Authority has the same meaning as in section 159(1) Qualifications Framework means the framework described in section 248 registered establishment has the same meaning as in section 159(1) 20 skill standard— (a) means a specification of skills, and levels of performance in those skills; and (b) in relation to any vocational education and training (or proposed voca- tional
 education and training), means a specification of some or all of the skills in which training is (or is proposed to be) received, and the levels of performance in those skills intended to be attained by people receiv- ing the training specified industries, in relation to a workforce development council, means the 1 or more specified industries covered by the workforce development coun- cil 25 30 trainee— (a) means an employee who has a training contract agreement; and (b) includes an apprentice as defined in section 489 training contract agreement has the same meaning as in section 159(1) 35 training package means a resource, including the curriculum, sequencing of learning, and assessment requirements, that may be listed in the details of an approved qualification 35 Part 1 cl 65 Education (Vocational Education and Training Reform) Amendment Bill training package, in relation to an industry-developed qualification,— (a) means materials developed by a workforce development council that are designed to assist providers in developing and delivering programmes leading to the industry qualification and to enhance consistency of grad- uate outcomes in respect of the qualification; and (b) includes (without limitation) core content, delivery modes, and assess- ment methods in respect of those programmes training scheme has the same meaning as in section 159(1) vocational education and training has the same meaning as in section 159(1) work-based training means systematic training and assessment (including apprenticeship training) in the skills characteristic of, or likely to be valuable to, persons engaged in an industry (or 2 or more industries) that is provided to persons engaged in that industry (or those industries)— 5 10 (a) (b) by or on behalf of employers in that industry (or those industries); or for the benefit of employers and employees in that industry (or those industries).
15 478 Training contracts agreements and apprenticeship training agreements part of employment agreement Training contracts agreements and apprenticeship training agreements are part of the employment agreement between the employee and employer concerned.
20 Compare: 1992 No 55 s 3 Subpart 1—Workforce development councils 479 Establishment of workforce development councils (1) The Governor-General may, by Order in Council made on the recommendation of the Minister, establish a workforce development council for 1 or more speci- fied industries.
25 (2) An order made under subsection (1) must— (a) (b) (c) (d) state the name of the workforce development council; and state the 1 or more specified industries that the workforce development council covers; and 30 set out the governance arrangements for the workforce development council, including arrangements relating to the appointment, composi- tion, and removal of members of the council; and state any additional functions conferred on the workforce development council by the Minister in accordance with section 482(1)(m).
35 (2) An order made under subsection (1)— (a) must— 36 Education (Vocational Education and Training Reform) Amendment Bill Part 1 cl 65 (i) (ii) (iii) (iv) state the name of the workforce development council; and state the 1 or more specified industries that the workforce devel- opment council covers; and set out the governance arrangements for the workforce develop- ment council, including arrangements relating to the appointment, composition, suspension, or removal of members of the council; and state the additional functions (if any) conferred on the workforce development council by the Minister in accordance with section 482(1)(m); and (b) may— (i) (ii) (iii) (iv) outline the means by which the 1 or more specified industries covered by the workforce development council may engage with the council in relation to the performance or exercise of its func- tions, duties, or powers; and prescribe matters relating to the workforce development council’s use of its assets, including any assets allocated to the council from a transitional ITO under clause 55 of Schedule 1 or to any other industry body; and impose conditions on the performance or exercise of the work- force development council’s functions, duties, or powers; and 20 provide for any other matters that are necessary or desirable to clarify the governance arrangements of the workforce develop- ment council.
5 10 15 (3) In making a recommendation relating to the governance arrangements for a workforce development council, the Minister must, as far as is reasonably prac- ticable, ensure that those arrangements provide for— (a) (b) the collective representation of employers and employees in the 1 or more specified industries covered by the workforce development council in the governance of the council; and the representation on the council of Māori employers from any or all of the 1 or more specified industries.
(4) The Minister must not recommend the making of an order under subsection (1) or a significant amendment to an order made under subsection (1) unless the Minister has— 25 30 35 (a) (b) consulted the representatives of the 1 or more specified industries covered or proposed to be covered by the workforce development coun- cil; and taken into account any views expressed by those representatives regard- ing— 40 37 Part 1 cl 65 Education (Vocational Education and Training Reform) Amendment Bill (i) (ii) (iii) the proposed name and governance arrangements of the workforce development council; and the desirability of avoiding duplication of resources; and the capability required by the proposed workforce development council to perform and exercise its functions, duties, and powers efficiently and effectively.
5 480 Disestablishment of workforce development councils (1) (2) The Governor-General may, by Order in Council made on the recommendation of the Minister, disestablish a workforce development council and provide for the distribution of its assets and liabilities.
The Minister must not recommend the disestablishment of a workforce devel- opment council under subsection (1) unless the Minister— (a) the Minister has received a request from the workforce development council or 1 or more of the specified industries covered by the workforce development council for it to be disestablished and is satisfied on reasonable grounds that there are good reasons to do so; or 10 15 (b) reasonably considers that there has been a consistent failure by the work- force development council to carry out any 1 or more of its functions.
(b) the Minister is satisfied that it is necessary to do so because— (i) (ii) (iii) the workforce development council has persistently engaged in unlawful activity; or 20 the workforce development council has persistently failed to per- form its functions or duties; or there has been a persistent pattern of complaints to the Commis- sion or the Minister from the 1 or more specified industries covered by the workforce development council regarding the council’s performance or exercise of its functions, duties, or powers.
25 481 Incorporation Each workforce development council established under section 479 is a body corporate with perpetual succession and a common seal, and is capable of— 30 (a) (b) (c) holding real and personal property; and suing and being sued; and otherwise doing and suffering all that bodies corporate may do and suf- fer.
35 482 Functions of workforce development councils The functions of a workforce development council, in relation to the specified industries covered by it, are— (1) 38 Education (Vocational Education and Training Reform) Amendment Bill Part 1 cl 65 Leadership to provide skills and workforce leadership for the specified industries, including by identifying their current and future needs and advocating for those needs to be met through its work with the industries and with schools, providers, regional bodies, and the Government: Setting standards and developing qualifications to develop and set develop, set, and maintain skill standards: to develop and maintain industry qualifications for listing on the Qualifi- cations Framework: to develop and maintain training schemes: to develop and set develop and maintain training packages: Endorsing programmes and moderating assessments 5 10 to decide whether to endorse programmes developed by providers for approval by the Qualifications Authority under section 249: to develop and set develop, set, and maintain capstone assessments based on the needs of their specified industries: 15 to carry out moderation activities, including in relation to any standards and capstone assessments it sets: Advisory and representative role to provide employers with brokerage and advisory services approved by the Commission: 20 to advise the Commission, as provided for in section 159FA,— (i) about the Commission’s overall investment in vocational educa- tion and training: (ii) about the mix of vocational education and training needed for the 1 or more specified industries covered by the workforce develop- ment council in the manner required by the Commission: to advise the Commission about its overall investment in vocational edu- cation and training: to advise the Commission about the mix of vocational education and training needed for the specified industries in the manner required by the Commission: to represent the interests of their specified industries, while taking account of national and regional interests: Other functions 25 30 35 (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (j) (k) (l) (m) to perform any other functions conferred on it by the Minister in relation to the specified industries.
39 Part 1 cl 65 Education (Vocational Education and Training Reform) Amendment Bill (2) (2) In performing its functions, a workforce development council must take into account the needs of its 1 or more specified industries but, in doing so, must also consider national and regional interests.

The Minister must not confer any additional function on a workforce develop- ment council under subsection (1)(m) without first consulting the workforce development council.
5 483 Workforce development council’s functions in relation to wananga (1) (2) Subject to subsection (2),— (a) a workforce development council may endorse a programme developed by a wananga only if requested by the wananga: (b) a capstone assessment developed by a workforce development council applies to a wananga only if requested by the wananga.
If a programme includes a component of work-based training, a workforce development council may perform its functions in section 482 in relation to the programme.

484 Workforce development council must not operate registered establishment (1) A workforce development council must not operate or hold any interest whether financial or otherwise in a registered establishment.
(2) A workforce development council must not, whether directly or through an agent,— (a) (b) provide any education and training approved by the Qualifications Authority; or operate, or hold an interest in, any organisation that provides education and training approved by the Qualifications Authority.
485 Obligations Duties of workforce development councils (1) A workforce development council must comply with any prescribed quality assurance requirements set by the Qualifications Authority relating to the per- formance of its functions.

(2) In performing its functions, a workforce development council must have regard to the needs of Māori and other population groups identified in the tertiary edu- cation strategy issued under section 159AA.
(2) In performing its functions, a workforce development council— (a) must take into account the needs of employers and employees in the 1 or more specified industries covered by the workforce development council but, in doing so, must also consider national and regional interests: (b) must have regard to the needs of Māori and other population groups identified in the tertiary education strategy issued under section 159AA: 10 15 20 25 30 35 40 10 15 20 Education (Vocational Education and Training Reform) Amendment Bill Part 1 cl 65 (c) must, to the extent that is necessary or desirable in the circumstances, work collaboratively with— (i) (ii) (iii) (iv) providers and, in the case of wananga, must respect the special character of wananga under section 162(4)(b)(iv): other workforce development councils, particularly on matters of common interest: 5 the Qualifications Authority, in relation to qualifications develop- ment, programme endorsement, or developing, setting, or main- taining skill standards: any relevant regulatory body that performs or exercises any func- tions, duties, or powers under an enactment in relation to entry to an occupation in any of the specified industries covered by the workforce development council: (d) must, when performing its functions under section 482(1)(i) to (l), take all reasonable steps to avoid any adverse impact on its relationship with a provider or providers.
486 Annual fee payable by workforce development council (1) A workforce development council must pay to the Qualifications Authority an annual fee prescribed by or determined under rules made under section 253(1)(ga).
(2) The annual fee may recover no more than the reasonable costs, excluding those costs that are recoverable through fees charged under section 254, incurred by the Qualifications Authority for— (a) prescribing quality assurance requirements under section 253(1)(gb); and 25 (b) monitoring compliance, and addressing non-compliance, with those functions under section requirements 246A(1)(da); and issuing quality assurance improvement notices under section 487. in accordance with its (c) (3) The fee is— (a) (b) payable by the due date prescribed in the rules; and recoverable as a debt due to the Qualifications Authority.
487 Qualifications Authority may issue quality assurance improvement notice (1) The Qualifications Authority may, if satisfied that such action is reasonably necessary to maintain the quality and effectiveness of a workforce development council’s performance of its functions, issue a quality assurance improvement notice to a workforce development council.
(2) A quality assurance improvement notice must— 30 35 41 Part 1 cl 65 Education (Vocational Education and Training Reform) Amendment Bill (a) (b) (c) (d) set out any concerns the Qualifications Authority has about the work- force development council’s systems, practices, or procedures; and specify the time within which the workforce development council is expected to address the Qualifications Authority’s concerns (which must be a reasonable time, having regard to the nature and complexity of the action required); and state that, if the Qualifications Authority’s concerns are not addressed within the specified time, the Qualifications Authority may issue a com- pliance notice under section 488; and state the consequence of a failure to comply with a compliance notice.
5 10 488 Qualifications Authority may issue compliance notice (1) The Qualifications Authority may issue a compliance notice to a workforce development council requiring it to do either or both of the following: (a) (b) do, or refrain from doing, a particular thing in relation to a prescribed quality assurance requirement: 15 address any concerns set out in a quality assurance improvement notice issued under section 487 that were not addressed within the time spe- cified in that notice.
(2) (3) Section 255(3) to (6) applies to a compliance notice issued under this section.

If a workforce development council fails to comply with a compliance notice issued under this section, the Qualifications Authority may notify the Minister in writing.

(4) A compliance notice may be issued to a workforce development council whether or not a quality assurance improvement notice has been issued under section 487.
(5) Nothing in this section limits the power of the Qualifications Authority to issue a compliance notice to a workforce development council in accordance with section 255.

488A Application of Public Audit Act 2001 Audit Each workforce development council established under section 479 is a pub- lic entity as defined in section 4 of the Public Audit Act 2001 and, in accord- ance with that Act, the Auditor-General is its auditor.
Validity of acts 488B Act in breach of statute invalid (1) An act of a workforce development council is invalid, unless section 488C 20 25 30 35 applies, if it is— 42 Education (Vocational Education and Training Reform) Amendment Bill Part 1 cl 65 (a) (b) an act that is contrary to, or outside the authority of, an Act; or an act that is done otherwise than for the purpose of performing its func- tions.
(2) Subsection (1) does not limit any discretion of a court to grant relief in respect of a minor or technical breach.
5 Compare: 2004 No 115 s 19 488C Some natural person acts protected (1) Section 488B, or any rule of law to similar effect, does not prevent a person dealing with a workforce development council from enforcing a transaction that is a natural person act unless the person dealing with the entity had, or ought reasonably to have had, knowledge— 10 (a) (b) of an express restriction in an Act that makes the act contrary to, or out- side the authority of, the Act; or that the act is done otherwise than for the purpose of performing the workforce development council’s functions.
15 (2) A person who relies on subsection (1) has the onus of proving that the per- son did not have, and ought not reasonably to have had, the knowledge referred to in that subsection.

(3) A workforce development council must report, in its financial report required by section 159YD(2), each transaction that the council has performed in the year to which the report relates that was invalid under section 488B but enforced in reliance on this section.
(4) To avoid doubt, this section does not affect any person’s other remedies (for example, remedies in contract) under the general law.
Compare: 2004 No 115 s 20 20 25 Subpart 2—Apprenticeships 489 Interpretation In this subpart, unless the context otherwise requires,— apprentice means a person receiving apprenticeship training apprenticeship training means a type of vocational education and training that— 30 (a) (b) (c) is provided for a person who is working in an industry while undertaking training in that industry; and is provided wholly or partly at the person’s workplace, mainly by or on behalf of the person’s employer; and 35 consists of a programme of study or training, or both, leading to a quali- fication in the skills of an industry that provides entry into an occupation in that industry; and 43 Part 1 cl 65 Education (Vocational Education and Training Reform) Amendment Bill (d) is facilitated by a person that receives funding from the Commission apprenticeship training agreement means an agreement between an employee and their employer that relates to the employee’s receipt of, or that provides for the employee to receive, apprenticeship training.
Compare: 1992 No 55 s 13C 490 Apprenticeship training activities must be included in proposed plan (1) A provider that seeks funding for an apprenticeship training activity (as described in subsection (2)) via a plan must specify in its proposed plan how it intends to carry out that activity.
(2) The apprenticeship training activities are— (a) to promote apprenticeship training generally through providing informa- tion, guidance, and advice to employers and prospective apprentices about the benefits of an apprenticeship: (b) to identify— (i) (ii) prospective apprentices; and employers able to offer apprenticeship training that satisfies all of the work-based requirements of the approved programme of the provider: 5 10 15 (c) (d) (e) (f) (g) (h) to provide or arrange training or employment that may lead to appren- ticeship training for prospective apprentices: 20 to help prospective apprentices enter into apprenticeship training agree- ments: to produce, and facilitate (in consultation with the apprentice and the apprentice’s employer) the implementation of, individual training plans consistent with an apprentice’s apprenticeship training agreement: to monitor individual apprentices to ensure that their apprenticeship training leads them to attain, within a reasonable time, the level of skills necessary to complete a qualification in the skills of the specified indus- try: to ensure, as far as is reasonably practicable, that apprenticeship training, and every apprenticeship training agreement, within the specified indus- try is consistent with any apprenticeship training code: to provide or procure appropriate pastoral care and support for apprenti- ces, having regard to the age and experience of the apprentice and the contents of any apprenticeship training code.
25 30 35 Compare: 1992 No 55 s 13D 44 Education (Vocational Education and Training Reform) Amendment Bill Part 1 cl 65 491 Obligations Duties of persons carrying out apprenticeship training activities (1) Persons carrying out apprenticeship training activities (whether or not via a plan or under a funding agreement) must,— (a) (b) in performing any apprenticeship training activity described in section 490(2), comply with every part of the apprenticeship training code that affects that activity: 5 before helping a person to enter into an apprenticeship training agree- ment, advise that person to seek advice about the agreement from an independent person.
(2) If a provider becomes aware that it is impracticable for an apprentice under provider’s care to continue their training with their current employer, the pro- vider must make reasonable endeavours to find a new employer with whom the apprentice can complete their training.

(2) A provider must give written notice to an apprentice under the provider’s care if the provider becomes aware that it is impracticable for the apprentice to con- tinue their apprenticeship training with their current employer.
(3) A notice under subsection (2) must advise the apprentice— (a) (b) that the provider is able to assist the apprentice with finding a new employer with whom the apprentice can complete their apprenticeship training; and if the apprentice so requests, the provider will make reasonable endeav- ours to find a new employer with whom the apprentice can complete their training.
Compare: 1992 No 55 s 13E 10 15 20 25 492 Minister may issue apprenticeship training code (1) The Minister may, by notice in the Gazette, issue an apprenticeship training code that— (a) (b) is consistent with this subpart; and sets out the responsibilities of apprentices, their employers, and persons carrying out apprenticeship training activities under this subpart.

30 (2) (3) (4) The apprenticeship training code may, but need not, be a code recommended by the Commission.
Before issuing an apprenticeship training code, the Minister may consult any persons or organisations as the Minister considers appropriate.
35 The notice under subsection (1) must— (a) specify the date on which the apprenticeship training code comes into force (which must be at least 28 days after the date on which the notice is published); and 45 Part 1 cl 65 Education (Vocational Education and Training Reform) Amendment Bill (b) either— (i) (ii) set out the apprenticeship training code in full; or give enough information to identify the code and state where cop- ies of the code may be obtained.
(5) Before issuing an apprenticeship training code under subsection (1), the Minister must consult the relevant workforce development council that covers the 1 or more specified industries to which the code relates.

5 Compare: 1992 No 55 s 13F 493 Availability of apprenticeship training code An apprenticeship training code issued by the Minister must be published on an Internet site maintained by or on behalf of the Commission.
10 Compare: 1992 No 55 s 13G 494 Apprenticeship training code to be taken into account by mediator, Employment Relations Authority, and Employment Court In exercising or performing, in relation to a matter concerning an apprentice, any power or function under the Employment Relations Act 2000, the follow- ing must take into account every applicable element of any apprenticeship training code: (a) (b) (c) a person providing mediation services under that Act: the Employment Relations Authority: the Employment Court.
Compare: 1992 No 55 s 13H 15 20 495 Application of Legislation Act 2012 to apprenticeship training code An apprenticeship training code is a disallowable instrument, but not a legisla- tive instrument, for the purposes of the Legislation Act 2012, and must be pre- sented to the House of Representatives under section 41 of that Act.
25 Compare: 1992 No 55 s 13I Subpart 3—Training levy 496 Interpretation For the purposes of this subpart,— ballot means a ballot under section 505 closing date means the date, specified in the ballot paper under section 510(b), by which ballot papers must be returned levy group means the members of an industry described in a levy order, or pro- posed to be described in a levy order, who have to, or will have to, pay that levy or proposed levy 30 35 46 Education (Vocational Education and Training Reform) Amendment Bill Part 1 cl 65 member of an industry means a person who employs persons who work in that industry or a self-employed person in that industry qualifying member, in relation to a levy group, means a member who does not have a certificate of exemption under section 514 relevant industry means the industry described in the levy order, or proposed levy order.
Compare: 1992 No 55 s 25 497 Purpose of levy The purpose of this subpart is to enable the making of Orders in Council imposing a training levy on the members of an industry, payable to a workforce development council, if a ballot of those members shows sufficient support for the imposition of the levy.
Compare: 1992 No 55 s 24 498 Levy may be imposed by Order in Council Imposition of levy 5 10 15 (1) (2) The Governor-General may, by Order in Council made on the recommendation of the Minister, impose a levy on qualifying members of a levy group that is payable to a workforce development council.

The Minister must not recommend the making of an Order in Council unless the Minister is satisfied on reasonable grounds of the matters in section 499.
20 (3) A levy may be payable to— (a) (b) 1 workforce development council by all qualifying members of the industry that is covered by that council; or 1 workforce development council by all qualifying members of a spe- cific industry that is within the range of industries covered by that coun- cil; or (c) more than 1 workforce development council, jointly, by all qualifying members of an industry that is covered by those councils.
(4) A levy order is a legislative instrument and a disallowable instrument for the purposes of the Legislation Act 2012 and must be presented to the House of Representatives under section 41 of that Act.
25 30 Compare: 1992 No 55 s 26 499 Restrictions on making of levy orders (1) The Minister must not recommend the making of a levy order unless satisfied on reasonable grounds that— 35 (a) the workforce development council to which the levy will be payable has, within the previous 12 months, balloted all known members of the 47 Part 1 cl 65 Education (Vocational Education and Training Reform) Amendment Bill levy group, in accordance with sections 505 to 512, in relation to a proposal that the levy should be imposed on those members; and (b) at least 60% of the ballot papers distributed were validly completed and returned before the closing date to the independent returning officer con- ducting the ballot; and 5 (c) of the ballot papers validly completed and returned,— (i) more than 60% of the total supported the imposition of the levy; and (ii) more than 60%, weighted according to the size of the industry member that returned the ballot paper (calculated at the date on which the ballot closed and on the same basis as the levy is pro- posed to be charged, as set out in the ballot paper), supported the imposition of the levy; and 10 the details specified in the order do not differ in any material way from those specified in the ballot paper; and 15 the details specified in the order are acceptable to the Minister; and the workforce development council has or will have in place adequate systems for accounting to qualifying members of the levy group for the expenditure of levy funds; and all other relevant matters known to the Minister have been properly con- sidered.
20 (d) (e) (f) (g) (2) When considering the matters in subsection (1), the Minister must consult the Commission and may consult any other persons that the Minister considers appropriate.

Compare: 1992 No 55 s 27 25 500 Matters to be specified in levy orders A levy order must specify the matters set out in Schedule 24.

Compare: 1992 No 55 s 28 501 Purposes for which levy may be required (1) A levy order must specify the purposes for which levy funds are to be used.
30 (2) A levy order may also specify any purpose or purposes for which no amount of levy may be used.

(3) In specifying how levy funds are to be used, a levy order may specify 1 or more purposes that will benefit the levy group as a whole and that are related to meeting the costs (including infrastructure and administration costs) associated with developing and maintaining skill standards for the specified industry.
35 (3) In specifying how levy funds are to be used, a levy order may specify 1 or more purposes that will benefit the levy group as a whole and that are related to 48 Education (Vocational Education and Training Reform) Amendment Bill Part 1 cl 65 meeting the costs of the relevant workforce development council performing its functions under section 482.
(4) No levy order may specify a purpose for which levy funds may be used that is related to— (a) meeting the costs of arranging delivery of work-based training; or 5 (b) (c) undertaking any commercial or trading activity; or any matter that directly benefits 1 or more individual members of the levy group, as opposed to generally benefiting the relevant industry as a whole.
(5) Subsection (4)(b) does not prevent a workforce development council from— 10 (a) using any part of a levy to publish or sell any educational, informative, or promotional material (whether or not at a profit); or (b) investing any part of a levy pending its expenditure.
Compare: 1992 No 55 s 29 502 Levy order may require provision of information A levy order may require qualifying members of the levy group to provide information to the workforce development council, or some other person or body, for the purpose of enabling or assisting the determination of the amount of levy payable.
Compare: 1992 No 55 s 30 503 Orders are confirmable instruments 15 20 (1) The explanatory note of a levy order made under section 498 must indicate that— (a) (b) (c) it is a confirmable instrument under section 47B of the Legislation Act 2012; and 25 it is revoked at a time stated in the note, unless earlier confirmed by an Act of Parliament; and the stated time is the applicable deadline under section 47C(1)(a) or (b) of that Act.
(2) The Minister on whose recommendation a levy order was made must, by notice published in the Gazette at least 6 months before the time at which the order may be revoked under section 47C(1)(a) or (b) of the Legislation Act 2012, indicate the Minister’s intentions with regard to its continuing in force unless the levy order is sooner— (a) (b) (c) revoked; or disallowed under Part 3 of the Legislation Act 2012; or confirmed by an Act of Parliament.
Compare: 1992 No 55 s 51 30 35 49 Part 1 cl 65 Education (Vocational Education and Training Reform) Amendment Bill 504 Expiry of levy orders (1) A levy order expires 5 years after the day on which it was made unless it is sooner— (a) (b) revoked; or disallowed under Part 3 of the Legislation Act 2012.

(2) A levy order is revoked if the workforce development council responsible for administering the levy is disestablished under section 480.
Compare: 1992 No 55 s 52 Ballots 505 Independent returning officer must conduct ballot A ballot must be conducted by an independent returning officer appointed by the workforce development council and approved by the Minister.
Compare: 1992 No 55 s 31 506 Workforce development council must identify potential members of levy group (1) A workforce development council that proposes to impose a levy must take reasonable steps to ensure that it identifies all potential members of the levy group, including— (a) (b) obtaining from that council’s records, and from records that may be available from other workforce development councils, information that can be used to identify potential members; and giving adequate notice of the ballot in public newspapers and industry- specific publications, and inviting members of the relevant industry to register to receive information about the ballot and ballot papers.
(2) After satisfying the requirements of subsection (1), the workforce develop- ment council must provide to the independent returning officer who is adminis- tering the ballot a list of all potential members of the levy group of whom it is aware.
Compare: 1992 No 55 s 32 507 Returning officer must notify potential members of levy group (1) The returning officer must give notice of the ballot to— (a) (b) every person named on the list of potential members of the levy group provided by the workforce development council under section 506(2); and any other person who the independent returning officer considers may be a member of the levy group.
35 The notice under subsection (1) must advise the person about the ballot and must— (2) 50 Education (Vocational Education and Training Reform) Amendment Bill Part 1 cl 65 (a) (b) describe the industry that is intended to be covered by the proposed levy order; and state that the returning officer considers that the person is or may be a member of that industry; and (c) state that membership of the industry means that the person— 5 (i) is entitled to participate in the ballot; and (ii) will be required to pay the levy if there is sufficient support for it in the ballot and the levy order is made; and (d) (e) state that the person must notify the returning officer if the person dis- putes that the person is a member of the industry intended to be covered by the proposed levy order (a coverage dispute); and state the date by which that notification of a coverage dispute must be received.
Compare: 1992 No 55 s 33 508 Commission must resolve coverage disputes If the returning officer receives a notice under section 507(2)(d) that the per- son wishes to raise a coverage dispute, the returning officer must refer that issue to the Commission for determination in accordance with section 522.
Compare: 1992 No 55 s 34 509 Population to be balloted As soon as practicable after all coverage disputes have been finally determined (including any appeals under section 523(2)), the returning officer must send a ballot paper to each person in the levy group.
Compare: 1992 No 55 s 35 510 Requirements of ballot papers A ballot paper must state— 10 15 20 25 (a) (b) (c) the address to which ballot papers must be returned; and the date by which ballot papers must be returned; and full information on the nature of the levy power being sought, including all the matters listed in Schedule 24.
30 Compare: 1992 No 55 s 36 511 Returning officer must count votes The returning officer must collect all validly completed ballot papers received by the returning officer at the closing date and calculate— (a) the proportion of the total number of ballot papers sent by the returning officer under section 509 that have been validly completed and received by them at the closing date; and 35 51 Part 1 cl 65 Education (Vocational Education and Training Reform) Amendment Bill (b) (c) the proportion of the validly completed ballot papers received by the returning officer the closing date that are in favour of the proposal to impose the levy; and the proportion of the validly completed ballot papers received by the returning officer at the closing date that are in favour of the proposal to impose the levy if the votes are weighted according to the size of the member of the industry that returned the ballot paper (calculated at the date on which the ballot closed and on the same basis as the levy is pro- posed to be charged as set out in the ballot paper).
Compare: 1992 No 55 s 37 512 Returning officer must keep ballot papers, etc The returning officer must take all reasonable steps to ensure that all ballot papers, envelopes, lists, and other documents used in connection with a ballot conducted under this Part are preserved and kept for a period of 1 year after the completion of the ballot.
Compare: 1992 No 55 s 38 Collection of levy 5 10 15 513 Levy is payable by qualifying members to workforce development council If a levy order is made, the levy specified in the order is payable by every qualifying member of the levy group to the workforce development council named in the levy order.
20 Compare: 1992 No 55 s 39 514 Certificate of exemption (1) The chief executive of the Commission may issue a certificate of exemption from payment of a levy to a member of the relevant industry who— 25 (a) was a member of the industry at the time the ballot was held in relation to that levy; and (b) was, through no fault or neglect on that person’s part, not included in the ballot.
(2) The chief executive may revoke a certificate of exemption if— 30 (a) (b) the person to whom it has been issued agrees; or it was issued in error.

Compare: 1992 No 55 s 40 515 Method of collecting levy (1) A workforce development council may collect levies directly from qualifying members of the levy group or by using a collection agent specified in the levy order in accordance with section 516.
35 52 Education (Vocational Education and Training Reform) Amendment Bill Part 1 cl 65 (2) A workforce development council may recover levies due from any qualifying member of the levy group— (a) (b) by deducting the amount due from any amount the workforce develop- ment council owes that qualifying member; or as a debt due to the workforce development council in any court of com- petent jurisdiction.
5 Compare: 1992 No 55 s 41 516 Levy order may provide for collection by agent (1) A levy order may specify persons, other than the persons who are primarily responsible for paying the levy, who must collect levy money due from qualify- ing members and pay it to the workforce development council.
(2) If a levy order specifies a person who must act as a collection agent under sub- section (1), the levy order must also specify an amount from, or a percentage of, the levy money collected that the person may retain as a fee for providing the collection service.
10 15 Compare: 1992 No 55 s 42 Duties of workforce development councils and others in relation to levies 517 Levy funds must be kept in separate bank accounts and used only for authorised purposes (1) A workforce development council that receives a levy under a levy order must open 1 or more bank accounts for the purpose of the levy and must use the account or those accounts for only the following purposes: 20 (a) depositing amounts of levy paid or recovered; and (b) making payments out of levy funds.
(2) Only people expressly authorised by the workforce development council may 25 operate the account or those accounts.

(3) No money may be paid out of the account or those accounts except for a pur- pose authorised in the levy order.
Compare: 1992 No 55 s 44 518 Duty to keep records 30 A workforce development council that receives a levy must ensure that accur- ate and up-to-date records are kept of— (a) (b) (c) the names of all members of the levy group from whom the levy has been collected or recovered; and the amount of the levy collected or recovered from those members; and 35 the names of all members of the levy group who are or may be liable to pay the levy but have not done so; and 53 Part 1 cl 65 Education (Vocational Education and Training Reform) Amendment Bill (d) the use to which the levy funds have been put.
Compare: 1992 No 55 s 45 519 Duty to provide annual report (1) As soon as practicable after the end of a financial year during which a levy has been paid to a workforce development council under a levy order, the work- force development council— 5 (a) must prepare, in respect of that year, financial statements in accordance with generally accepted accounting practice (within the meaning of sec- tion 8 of the Financial Reporting Act 2013); and (b) must include in the financial statements required by paragraph (a) all 10 the necessary information to explain— (i) (ii) the balance of the levy fund; and the movements in the levy fund over the course of the year, including receipts of money collected and payments of money made under the levy order; and (iii) the use of assets acquired or built up with or out of money received under the levy order.
(2) (3) The workforce development council must ensure that the financial statements prepared under subsection (1) are audited within 90 days of the end of that financial year.

Financial statements prepared under subsection (1) must be included in the workforce development council’s annual report for that year.
(4) A workforce development council that is required by subsection (3) to include financial statements in its annual report must, as soon as that report has been completed, give a copy to the Minister, and the Minister must present a copy to the House of Representatives not later than 6 sitting days after receiv- ing it.
(5) Despite subsection (4), if an enactment other than this Act requires a work- force development council to give a Minister a copy of its annual report and requires the Minister to present a copy to the House of Representatives, that organisation must, to the extent that the enactment and subsection (4) impose different requirements, comply with the enactment instead of subsection (4).
(6) A workforce development council that is required by subsection (3) to include financial statements in its annual report must take all reasonable steps to ensure that every person primarily liable for paying the levy that is reflected in those financial statements receives a copy of the annual report as soon as is reasonably practicable after the report has been completed.
Compare: 1992 No 55 s 46 15 20 25 30 35 54 Education (Vocational Education and Training Reform) Amendment Bill Part 1 cl 65 520 Duty to protect commercially sensitive information A person who receives commercially sensitive information for the purposes of carrying out a function or an activity under this Part, or under a levy order, must take reasonable steps to protect that information.
Compare: 1992 No 55 s 47 5 Disputes 521 Arbitration or mediation system must be established (1) A workforce development council that receives a levy under a levy order must establish a method of arbitration or mediation in the case of disputes regard- ing— 10 (a) whether a person was included in the ballot relating to that levy; and (b) whether a person has paid the levy; and (c) (d) the amount of levy payable; and any other matter relating to the levy, except disputes about whether a person is within the levy group.
15 (2) Details of the arbitration or mediation system must be specified in the levy order, including— (a) (b) (c) (d) (e) the method of appointment of arbitrators or mediators; and the procedures to be followed by arbitrators or mediators; and the remuneration of arbitrators or mediators; and 20 the payment of costs in relation to arbitration or mediation; and any other matters relating to the resolution of disputes.
Compare: 1992 No 55 s 48 522 Disputes about coverage (1) (2) If a returning officer refers a dispute to the Commission under section 508, the Commission must determine the matter.

25 The workforce development council that is proposing to impose a levy or, if a levy order has been made, that is responsible for administering the levy must pay the reasonable costs of the Commission for determining the dispute.
Compare: 1992 No 55 s 49 523 Appeals to District Court (1) If a dispute is unresolved after arbitration or mediation in accordance with the method specified in the levy order, or if a party wishes to appeal against a deci- sion of an arbitrator or mediator, the dispute may be referred, or the decision may be appealed, to the District Court.

(2) A determination by the Commission under section 522 may be appealed against on grounds of procedural error only.
30 35 55 Part 1 cl 66 Education (Vocational Education and Training Reform) Amendment Bill (3) An appeal under subsection (2) may be made to the District Court by the per- son disputing membership of the levy group or by the workforce development council that is proposing to impose, or responsible for administering, the levy.

Compare: 1992 No 55 s 50 Schedule 1 amended In Schedule 1, repeal clause 17(3).

In Schedule 1, after Part 8, insert the Part 9 set out in Schedule 1 of this Act.
Schedule 13A amended 66 (1) (2) 67 (1) After the Schedule 13A heading, insert: Part 1 Provisions relating to all tertiary education institutions (2) In Schedule 13A, after the last item, insert the Part 2 set out in Schedule 2 of this Act.

68 Schedule 19 repealed Repeal Schedule 19.

69 New Schedules 22 to 24 25 inserted 5 10 15 (1) After Schedule 21, insert the Schedule 22 set out in Schedule 3 of this Act.
(2) After Schedule 22 (as inserted by subsection (1)), insert the Schedule 23 set out in Schedule 4 of this Act.

(3) After Schedule 23 (as inserted by subsection (2)), insert the Schedule 24 20 set out in Schedule 5 of this Act.

(4) After Schedule 24 (as inserted by subsection (3)), insert the Schedule 25 set out in Schedule 5A of this Act.
Part 2 Repeals, revocations, and other amendments 70 Repeal of Industry Training and Apprenticeships Act 1992 The Industry Training and Apprenticeships Act 1992 (1992 No 55) is repealed.

71 Repeal of Education (Polytechnics) Amendment Act 2009 The Education (Polytechnics) Amendment Act 2009 (2009 No 70) is repealed.
72 Orders revoked The following orders are revoked: 56 25 30 Education (Vocational Education and Training Reform) Amendment Bill Part 2 cl 73 (a) (b) (c) Education (Disestablishment of Tairāwhiti Polytechnic and Incorpor- ation in Eastern Institute of Technology) Order 2010 (SR 2010/449): Education (Disestablishment of Aoraki Polytechnic and Incorporation in Christchurch Polytechnic Institute of Technology) Order 2015 (LI 2015/257): 5 Education (Disestablishment of Bay of Plenty Polytechnic and Waiariki Institute of Technology and Incorporation into Waiariki Bay of Plenty Polytechnic) Order 2016 (LI 2016/1).
73 Consequential amendments to other enactments (1) Amend the Acts specified in Part 1 of Schedule 6 as set out in that Part.

(2) Amend the legislative instruments specified in Part 2 of Schedule 6 as set 10 out in that Part.
57 Schedule 1 Education (Vocational Education and Training Reform) Amendment Bill Schedule 1 New Part 9 inserted into Schedule 1 s 66(2) Part 9 Provisions relating to Education (Vocational Education and Training Reform) Amendment Act 2019 5 26 Interpretation In this Part, unless the context otherwise requires,— amendment Act means the Education (Vocational Education and Training Reform) Amendment Act 2019 commencement date means the date on which the amendment Act comes into force Commission means the Tertiary Education Commission established under sec- tion 159C corresponding NZIST subsidiary, in relation to an existing polytechnic, means the Crown entity subsidiary specified in the second column of the table in clause 27(3) opposite the name of the existing polytechnic specified in the first column of the table existing polytechnic or polytechnic means each polytechnic listed in the first column of the table in clause 27(3) that was established or deemed to have been established under section 162 before the commencement date and in exis- tence immediately before that date NZIST means the New Zealand Institute of Skills and Technology established by section 222A (as inserted by section 49 of the amendment Act) Qualifications Authority means the New Zealand Qualifications Authority continued by section 256A.
transition period means the period beginning on the commencement date and ending with the close of 31 December 2022.
Subpart 1—Transitional provisions relating to polytechnics 10 15 20 25 Conversion of polytechnics to corresponding NZIST subsidiaries 30 27 Polytechnics converted to corresponding NZIST subsidiaries (1) On and after the commencement date, an existing polytechnic becomes a Crown entity subsidiary of NZIST (an NZIST subsidiary) and the following provisions apply for that purpose: 58 (2) (3) Education (Vocational Education and Training Reform) Amendment Bill Schedule 1 (a) (b) (c) the polytechnic is to be treated as a company registered under the Com- panies Act 1993 with the name specified in the second column of the table in subclause (3) opposite the name of the polytechnic specified in the first column of that table; and the Registrar of Companies must, on the commencement date, issue a certificate of registration incorporation for the company; and 5 100 shares must be treated as having been issued to the NZIST subsid- iary NZIST.
The certificate of registration is conclusive evidence that the corresponding NZIST subsidiary was, on and after the commencement date, registered as a company under the Companies Act 1993.
10 For the purposes of subclause (1)(a), the name of the corresponding NZIST subsidiary is: Name of existing polytechnic Ara Institute of Canterbury Eastern Institute of Technology (Te Aho a Māui) Manukau Institute of Technology Nelson Marlborough Institute of Technology Nelson Marlborough Institute of Technology Name of corresponding NZIST subsidiary Ara Institute of Canterbury Limited Eastern Institute of Technology (Te Aho a Māui) Limited Manukau Institute of Technology Limited Limited Northland Polytechnic Limited Northland Polytechnic Otago Polytechnic Limited Otago Polytechnic Southern Institute of Technology Limited Southern Institute of Technology Tai Poutini Polytechnic Limited Tai Poutini Polytechnic The Open Polytechnic of New Zealand Limited The Open Polytechnic of New Zealand Toi Ohomai Institute of Technology Limited Toi Ohomai Institute of Technology Unitec New Zealand Limited Unitec New Zealand Universal College of Learning Limited Universal College of Learning Waikato Institute of Technology Limited Waikato Institute of Technology Wellington Institute of Technology Wellington Institute of Technology Limited Western Institute of Technology at Taranaki Western Institute of Technology at Taranaki Whitireia Community Polytechnic Limited Whitireia Community Polytechnic Limited Duration of corresponding NZIST subsidiaries 27A Duration of corresponding NZIST subsidiaries (1) Each corresponding NZIST subsidiary continues in existence until the close of 31 December 2022.
(2) However, the Governor-General may, by Order in Council made on the recom- mendation of the Minister, extend the period that any particular corresponding NZIST subsidiary may continue to exist to a date specified in the order.

15 20 59 Schedule 1 Education (Vocational Education and Training Reform) Amendment Bill (3) (4) Before making a recommendation under subclause (2), the Minister must consult NZIST on the proposed extension and take into account NZIST’s views.
The Minister must not recommend an extension under subclause (2) unless the Minister is satisfied on reasonable grounds that the extension is— 5 (a) (b) consistent with the NZIST’s responsibilities under the charter set out in Schedule 22 (as inserted by section 69(2) of the amendment Act); and in the interests of the tertiary education system and the nation as a whole.
10 27B NZIST’s council may dissolve corresponding NZIST subsidiary NZIST’s council may, by resolution, at any time before the date specified in clause 27A(1) or by Order in Council under clause 27A(2), dissolve a cor- responding NZIST subsidiary and transfer some or all of the rights, assets, or liabilities of that subsidiary to NZIST or another NZIST subsidiary (whether established under clause 27(1) or formed by NZIST under section 222Z).
15 Consequences of conversion of polytechnics to corresponding NZIST subsidiaries Initial directors of Directors of corresponding NZIST subsidiary The initial directors of an NZIST subsidiary must comprise at least 4, but not more than 6, directors.

20 The directors of each corresponding NZIST subsidiary must comprise at least 4, but not more than 8, directors.
In appointing directors under subclause (1), NZIST must ensure that at least half of the initial directors reside in the region in which the corresponding NZIST subsidiary predominately predominantly operates.
25 Application of provisions of this Act to NZIST subsidiary The following provisions of this Act apply to an NZIST subsidiary with all necessary modifications: (a) (b) (c) (d) (e) (f) section 201A (how institutions may use income and capital): 30 section 201B (gifts): section 201C (council may establish common fund): section 201D (investment of funds held in common fund): section 202 (application of money): section 212 (resumption of land on recommendations of Waitangi Tribu- nal): 35 28 (1) (1) (2) 29 (1) 60 Education (Vocational Education and Training Reform) Amendment Bill Schedule 1 (g) section 213 (resumption of land to be effected under Public Works Act 1981): (h) section 214 (resumption of Wahi Tapu).
(2) The following provisions of this Act do not apply to an NZIST subsidiary: (a) (b) (c) (d) (e) (f) section 196 (duties of chief executive): section 197 (delegation by chief executive): section 200 (bank accounts): section 201 (proper accounts to be kept): section 220 (annual report): section 221 (annual report to be available for inspection).
29 Application of this Act to corresponding NZIST subsidiaries The provisions of this Act as far as they relate to an NZIST subsidiary apply, with any necessary modifications, to each corresponding NZIST subsidiary during the period that the corresponding NZIST exists in accordance with clause 27A or 27B.
30 Corresponding NZIST subsidiary is organisation, provider, and institution for purposes of this Act (1) On and after the commencement date, each NZIST subsidiary is to be treated,— (a) (b) (c) until 31 December 2022 , as an organisation within the meaning of section 159B(1), and the provisions of this Act relating to an organisa- tion apply to it accordingly as if those provisions included a reference to the NZIST subsidiary: as a provider within the meaning of section 238D, and the provisions of this Act relating to providers apply to it accordingly as if those provi- sions included a reference to the NZIST subsidiary: as an institution with the meaning of section 159(1), and the provisions of this Act in Parts 16, 16A, and 20 and section 292 apply to it accord- ingly as if those provisions included a reference to the NZIST subsidiary.
(1) Without limiting clause 29, each corresponding NZIST subsidiary is to be treated, during the period that it exists in accordance with clause 27A or clause 27B, as— (a) an organisation within the meaning of section 159B(1), and the provi- sions of this Act relating to an organisation apply to it accordingly as if those provisions included a reference to the corresponding NZIST sub- sidiary: 61 Schedule 1 Education (Vocational Education and Training Reform) Amendment Bill (b) (c) a provider within the meaning of section 238D, and the provisions of this Act relating to providers apply to it accordingly as if those provi- sions included a reference to the corresponding NZIST subsidiary: an institution within the meaning of section 159(1), and sections 31B, 31F, and 31G, and Parts 16, 16A, and 20 apply to it accordingly as if— 5 (i) (ii) those provisions included a reference to the corresponding NZIST subsidiary; and any reference in those provisions to the council of an institution were a reference to the board of the corresponding NZIST subsid- iary.
(2) For the purposes of subclause (1)(a), the Commission may consider a pro- posed plan of an NZIST subsidiary and fund that subsidiary for an academic year beginning on or after 1 January 2021 but only if requested by NZIST.

31 Members of polytechnic council cease to hold office (1) Every member of an existing polytechnic council holding office immediately before the commencement date ceases to hold office on the close of the day before that date.
(2) Neither the Crown nor any existing polytechnic council is liable to make a pay- ment to, or otherwise compensate, a person referred to in subclause (1) in respect of the loss of office.

32 (1) Transfer of rightsRights, assets, and liabilities of existing polytechnic This clause applies to all rights, assets, and liabilities that an existing polytech- nic had immediately before the commencement date.
(2) On and after the commencement date,— 10 15 20 (a) (b) the rights, assets, and liabilities of the existing polytechnic vest in the existing polytechnic’s corresponding NZIST subsidiary; and 25 unless the context otherwise requires, every reference to the existing pol- ytechnic in any enactment (other than this Act), or instrument, agree- ment, deed, lease, application, notice, or other document before the com- mencement date must be read as a reference to the polytechnic’s corres- ponding NZIST subsidiary.
(3) In this clause, assets, liabilities, and rights have the same meanings as in sec- tion 216(1).

32A Same person for purposes of Inland Revenue Acts For the purposes of the Inland Revenue Acts (as defined in section 3(1) of the Tax Administration Act 1994), a corresponding NZIST subsidiary must be treated as the same person as the existing polytechnic.
62 30 35 Education (Vocational Education and Training Reform) Amendment Bill Schedule 1 33 Transfer of employeesEmployees of existing polytechnics (1) On and after the commencement date, every employee of an existing polytech- nic becomes an employee (a transferred employee) of the polytechnic’s cor- responding NZIST subsidiary on the same terms and conditions that applied to the person immediately before they became an employee of the corresponding NZIST subsidiary.
5 (2) For the purposes of every enactment, law, determination, contract, and agree- ment relating to the employment of the transferred that employee,— (a) (b) the employee’s employment agreement of that employee is to be treated as unbroken; and 10 the employee’s period of service with the existing polytechnic, and every other period of service of that the employee that is recognised by the polytechnic as continuous service, is to be treated as a period of service with the polytechnic’s corresponding NZIST subsidiary.
(3) To avoid doubt, the employment of a transferred employee an employee to whom this clause applies by a polytechnic’s corresponding NZIST subsidiary does not constitute new employment for the purposes of any service-related benefits, whether legislative or otherwise.
(4) A transferred employee An employee to whom this clause applies is not entitled to receive any payment or benefit from an existing polytechnic or its corresponding NZIST subsidiary on the grounds that the person’s position in the polytechnic has ceased to exist or the person has ceased to be an employee of the polytechnic as a result of the transfer to its corresponding NZIST subsid- iary.
(5) This clause overrides— (a) (b) Part 6A of the Employment Relations Act 2000; and any employment protection provision in any relevant employment agree- ment.

34 (1) (2) (3) Government Superannuation Fund This clause applies to a person who, immediately before becoming an employee of an NZIST a corresponding NZIST subsidiary, was a contributor to the Government Superannuation Fund under Part 2 or 2A of the Government Superannuation Fund Act 1956.
For the purposes of the Government Superannuation Fund Act 1956, the person is treated as being employed in the Government service as long as the person continues to be an employee of NZIST the corresponding NZIST subsidiary.

The Government Superannuation Fund Act 1956 applies to the person in all respects as if the person’s service as an employee of NZIST the corresponding NZIST subsidiary were Government service.
15 20 25 30 35 63 Schedule 1 Education (Vocational Education and Training Reform) Amendment Bill (4) (5) 35 (1) Subclause (1) does not entitle a person to become a contributor to the Gov- ernment Superannuation Fund if the person has ceased to be a contributor.

For the purpose of applying the Government Superannuation Fund Act 1956, the chief executive of NZIST the corresponding NZIST subsidiary is the con- trolling authority.
5 Transfer of studentsStudents of existing polytechnics This clause applies to every student enrolled at an existing polytechnic imme- diately before the commencement date.

(2) On and after the commencement date, the student must be treated as having been enrolled at the existing polytechnic’s corresponding NZIST subsidiary.
10 (3) A student who would, but for the conversion of the existing polytechnic into an its corresponding NZIST subsidiary, have been entitled to be granted an award of the existing polytechnic is entitled to be granted a like award of the corres- ponding NZIST subsidiary.

(4) In subclause (3), award has the same meaning as in section 159(1).
15 35A Visas granted under Immigration Act 2009 (1) This clause applies to a visa granted under the Immigration Act 2009 in respect of— (a) (b) a student, for the purposes of enrolment at an existing polytechnic; or a staff member of an existing polytechnic.

(2) On and after the commencement date, any reference to the existing polytechnic in a condition imposed on the visa must be read as a reference to the polytech- nic’s corresponding NZIST subsidiary.
36 (1) Existing Qualifications Authority approvals, accreditations, and consents This clause applies to the following matters granted to an existing polytechnic by the Qualifications Authority under Part 20 before the commencement date and in effect immediately before that date: (a) (b) (c) (d) (e) an approval of a programme under section 249: an accreditation to provide all or part of a programme under section 250: an approval to provide a training scheme under section 251: a consent to assess against the standards listed on the Directory of Assessment Standards under section 252: a consent to award a degree or a post-graduate qualification under sec- tion 253B.
(2) On and after the commencement date,— (a) except as provided in subclause (3), the approval, accreditation, or consent (including any conditions imposed on an approval, an accredit- 20 25 30 35 64 Education (Vocational Education and Training Reform) Amendment Bill Schedule 1 ation, or a consent) must be treated as if it were granted to the existing polytechnic’s corresponding NZIST subsidiary; and (b) unless the context otherwise requires, every reference to the existing pol- ytechnic in the approval, accreditation, or consent must be read as a ref- erence to the polytechnic’s corresponding NZIST subsidiary.
5 (3) On and after 1 January 2023, the approval of a programme under section 249 and the consent to award a degree or a post-graduate qualification under sec- tion 253B must be treated as if they were granted to NZIST.

37 (1) Existing funding approvals granted by Commission This clause applies to an approval granted to an existing polytechnic by the Commission under section 159YA(2) or 159ZC before the commencement date and in effect immediately before that date.
(2) On and after the commencement date,— (a) (a) (b) the approval (including any conditions imposed on the approval) must be treated, until 31 December 2020 unless it is earlier withdrawn or revoked, as if it were granted to the existing polytechnic’s corresponding NZIST subsidiary; and the approval (including any conditions imposed on it) must be treated as if it were granted to the polytechnic’s corresponding NZIST subsidiary until the close of 31 December 2020 (unless the approval is earlier withdrawn or revoked or the subsidiary is earlier dissolved in accordance with clause 27B); and unless the context otherwise requires, every reference to the existing pol- ytechnic in the approval must be read as a reference to the polytechnic’s corresponding NZIST subsidiary.
37A Other references to existing polytechnic On and after the commencement date, every reference to an existing polytech- nic in any enactment (other than this Act) or document must, unless the context otherwise requires, be read as a reference to the polytechnic’s corresponding NZIST subsidiary.
38 Existing proceedings and other matters (1) On and after the commencement date,— (a) (b) the continuation or enforcement of any proceedings by or against an existing polytechnic may instead be continued or enforced by or against its corresponding NZIST subsidiary without amendment to the proceed- ings; and the completion of a matter or thing that would, but for this clause, have been completed by the existing polytechnic may be completed by its cor- responding NZIST subsidiary; and 10 15 20 25 30 35 65 Schedule 1 (c) Education (Vocational Education and Training Reform) Amendment Bill anything done, or omitted to be done, or that is to be done, by or in rela- tion to the existing polytechnic is to be treated as having been done, or having been omitted to be done, or to be done, by or in relation to its corresponding NZIST subsidiary.
(2) In subclause (1)(a), proceedings— (a) means civil and criminal proceedings; and (b) includes any enforcement or compliance action by the Commission or the Qualifications Authority.

39 (1) Final report of former existing polytechnic Each NZIST subsidiary must provide a final report to the Minister in relation to the polytechnic from which the NZIST subsidiary was formed in accordance with clause 27.
(1A) For the purposes of section 45L of the Public Finance Act 1989, an existing polytechnic that is converted into a corresponding NZIST subsidiary must be treated as if it were disestablished and its operations were transferred to the corresponding subsidiary.

(2) Despite subpart 1 of Part 5 of the Public Finance Act 1989, the Minister may specify the contents of the final report and the date or dates by which the con- tents of the report must be provided.
5 10 15 (3) 40 (1) The Minister must present a copy of the final report to the House of Represen- tatives as soon as is reasonably practicable after receiving it.

20 Validation of pre-commencement actions and processes regarding Ministerial appointments to NZIST’s council This clause applies to any action or process undertaken by the Minister before the commencement date in appointing members to NZIST’s council.
25 (2) An appointment is valid if the action or process substantially complies with the provisions of this Act (as amended by the amendment Act).

Subpart 1A—Transitional provisions relating to NZIST 40A Membership of NZIST’s council reduced until all appointments made (1) The number of NZIST council members is proportionately reduced until the date on which each member referred to in section 222G(1)(a), (b), and (c) is appointed to the council.
(2) No action of NZIST’s council is invalid merely because any member referred to in subclause (1) has not been appointed to NZIST’s council on the com- mencement date.
30 35 66 Education (Vocational Education and Training Reform) Amendment Bill Schedule 1 40B Restriction on NZIST forming new subsidiaries The requirement for NZIST to obtain Ministerial approval before forming a subsidiary under section 222Z(1) (as inserted by section 49 of the amend- ment Act) ceases to apply on the close of 31 December 2024.
40C NZIST subsidiary is organisation, provider, and institution (1) This clause applies to an NZIST subsidiary formed by NZIST on or after the commencement date under section 222Z(1) that provides education or train- ing, or both.
(2) The NZIST subsidiary must be treated as— (a) (b) (c) an organisation within the meaning of section 159B(1), and the provi- sions of this Act relating to an organisation apply to it accordingly as if those provisions included a reference to the NZIST subsidiary: a provider within the meaning of section 238D, and the provisions of this Act relating to providers apply to it accordingly as if those provi- sions included a reference to the NZIST subsidiary: an institution within the meaning of section 159(1), and sections 31B, 31F, and 31G, and Parts 16, 16A, and 20 apply to it accordingly as if— 5 10 15 (3) 41 (1) (i) (ii) those provisions included a reference to the NZIST subsidiary; and any reference in those provisions to the council of an institution were a reference to the board of the NZIST subsidiary.
20 For the purposes of subclause (2)(a), the Commission may consider a pro- posed plan of the NZIST subsidiary and fund that subsidiary for an academic year beginning on or after 1 January 2021 but only if requested by NZIST.
Subpart 2—Transitional arrangements for work-based training 25 Interpretation In this subpart, unless the context otherwise requires,— 1992 Act means the Industry Training and Apprenticeships Act 1992 assets has the same meaning as in section 216(1) former ITO means an industry training organisation listed in clause 43(a) that was recognised under Part 2 of the 1992 Act and whose recognition was in force immediately before that date transitional ITO means— (a) a former ITO: (b) a body corporate that is recognised by the Minister under clause 43(b) transition period means the period beginning on the commencement date and ending on the close of 31 December 2022 30 35 67 Schedule 1 Education (Vocational Education and Training Reform) Amendment Bill workforce development council means a workforce development council established under section 479 (as inserted by section 65 of the amendment Act).
(2) In this subpart, unless the context otherwise requires, provider, specified industry, trainee, and work-based training have the same meanings as in section 477 (as inserted by section 65 of the amendment Act).

5 42 Application of clauses 43 to 56 Clauses 43 to 56 apply during the transition period.
43 Recognition of transitional ITOs The following are recognised as transitional ITOs for the purposes of this sub- part: 10 (a) each of the following former ITOs: (i) (ii) Boating Industries Association of New Zealand Incorporated: Building and Construction Industry Training Organisation Incorp- orated: 15 (iii) Community Support Services ITO Limited: (iv) Competenz Trust: (v) Infrastructure Industry Training Organisation Incorporated: (vi) MITO New Zealand Incorporated: (vii) New Zealand Hair and Beauty Industry Training Organisation 20 Incorporated: (viii) Primary Industry Training Organisation Incorporated: (ix) (x) Service Skills Institute Incorporated: Skills Active Aotearoa Limited: (xi) The Skills Organisation Incorporated: (b) any body corporate recognised by the Minister, by notice in the Gazette, as a transitional ITO for the purposes of this subpart.
44 Effect of recognition (1) A transitional ITO recognised under clause 43(a)— (a) is recognised for the 1 or more specified industries for which it was recognised under Part 2 of the 1992 Act immediately before the com- mencement date; and (b) must carry out the 1 or more activities described in subclause (3) in relation to the specified industries for which it was previously recog- nised under the 1992 Act.
(2) A transitional ITO recognised under clause 43(b)— 25 30 35 68 Education (Vocational Education and Training Reform) Amendment Bill Schedule 1 (a) is recognised for the 1 or more specified industries specified in the notice given by the Minister recognising the transitional ITO; and (b) must carry out the 1 or more activities described in subclause (3) and specified in the notice.
(3) For the purposes of this clause, the activities are— (a) (b) (c) developing, setting, and maintaining skill standards to be listed on the Directory of Assessment Standards; and developing and maintaining arrangements for the delivery of work-based training that will enable trainees to achieve the relevant skill standards; and the apprenticeship training activities described in section 490(2) (as inserted by section 65 of the amendment Act).
5 10 45 Minister may impose conditions on recognition of transitional ITO (1) The Minister may, by written notice to a transitional ITO, impose any condi- tions on that recognition that the Minister considers are reasonably necessary— 15 (a) (b) to maintain the quality and effectiveness of vocational education and training in the transitional ITO’s specified industries; and to ensure the success of the transfer of responsibility for the activities of the transitional ITO.
(2) The Minister may amend or revoke a condition imposed under subclause (1) by written notice to the transitional ITO.

20 (3) However, no condition may be imposed under subclause (1) that requires the assets of a transitional ITO to be allocated to a workforce development council under clause 55.
46 Minister may change specified industries or activities of transitional ITO 25 The Minister may, by notice in the Gazette, change— (a) (b) the specified industries covered by a transitional ITO; or the activities that must be carried out by the transitional ITO in relation to those industries.
47 Application of provisions of 1992 Act to transitional ITO 30 (1) Despite the repeal of the 1992 Act, the provisions of the 1992 Act listed in subclause (2) continue in force, with any necessary modifications, and apply to a transitional ITO as if the amendment Act had not been passed and as if— (a) (b) references in those provisions to an industry training organisation were references to the transitional ITO; and 35 references in those provisions to industry training were references to work-based training.
69 Schedule 1 Education (Vocational Education and Training Reform) Amendment Bill (2) The provisions are— (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) section 10 (industry training organisation’s proposed plan must identify activities for which it seeks funding): section 10A (power to fund if employer switches industry training organisation): 5 section 11 (matters to which Commission must have regard in determin- ing whether to give funding approval to proposed plan): section 11B (obligations of industry training organisations): section 11C (Qualifications Authority may issue quality assurance improvement notice): 10 section 11D (Qualifications Authority may issue compliance notice): section 11E (industry training organisation not to operate registered pri- vate training establishment): section 11F (annual fee): section 13A (additional functions of Qualifications Authority): 15 section 13B (Qualifications Authority may prescribe quality assurance requirements): Part 2A (apprenticeship training): Part 5 and Schedule 4 (training levies).
(3) Despite subclause (1), section 11E of the 1992 Act (as applied by sub- clause (2)(g)) applies to a transitional ITO only while the transitional ITO continues to exercise any standard-setting powers for the specified industries covered by the transitional ITO.
48 (1) Existing approvals and consents granted to former ITO This clause applies to the following matters granted to a former ITO by the Qualifications Authority under Part 20 before the commencement date and in effect immediately before that date: 20 25 (a) (b) (c) an approval of a programme under section 249: an approval to provide a training scheme under section 251: a consent to assess against the standards listed on the Directory of Assessment Standards under section 252.
30 (2) On and after the commencement date,— (a) (b) an approval or a consent (including any conditions imposed on the approval or consent) must be treated as if it were granted to the former ITO’s corresponding transitional ITO; and 35 unless the context otherwise requires, every reference in the approval or consent must be read as a reference to the corresponding transitional ITO.
70 Education (Vocational Education and Training Reform) Amendment Bill Schedule 1 49 Transitional ITO is organisation A transitional ITO is to be treated as an organisation within the meaning of sec- tion 159B, and the provisions of this Act relating to an organisation apply to it accordingly.
50 Transitional ITO is approved standard-setting body A transitional ITO is to be treated as an approved standard-setting body for the purposes of section 248B in relation to the specified industries for which it is recognised under this subpart until— (a) (b) a notice is given under clause 46 that removes the activity described in clause 44(3)(a) for a specified industry covered by the transitional ITO; or the recognition of the transitional ITO is cancelled under clause 53 or lapses under clause 54.
5 10 51 (1) Transitional ITOs must develop transition plan Every As soon as practicable after the commencement date, every transitional ITO must— 15 (a) develop a transition plan for approval by the Commission that provides for the transfer of responsibility for— (i) (ii) (iii) responsibility for the activity described in clause 44(3)(a) to any 1 or more workforce development councils: 20 responsibility for the activities described in clause 44(3)(b) and (c) to any 1 or more providers specified by the Commission; and the assets of the transitional ITO to any 1 or more providers speci- fied by the Commission: (b) (c) implement and maintain that plan; and support providers specified by the Commission in transferring the responsibility for the activities described in clause 44(3)(b) and (c).
(2) (3) The Commission may, when approving a transition plan under subclause (1), make any amendments to the plan that it considers necessary or desirable by giving written notice to the transitional ITO.

If a transitional ITO fails or refuses to comply with subclause (1), the Com- mission may develop the transition plan for the transitional ITO and the transi- tional ITO must implement and maintain that plan.
51A Commission must issue guidance on transition plans (1) (2) The Commission must issue guidance to transitional ITOs on what must be contained in a transition plan required by clause 51(1).

The Commission must consult transitional ITOs when developing guidance under subclause (1).
25 30 35 71 Schedule 1 Education (Vocational Education and Training Reform) Amendment Bill 52 Minister may direct funding to provider for work-based training 53 (1) Despite section 159M(1), the Minister may direct that funding be provided to a provider of to support work-based training on behalf of employers if the Min- ister believes it is reasonably necessary for facilitating or ensuring the success- ful transfer of responsibility for the activities referred to in clause 44(3)(b) and (c).
Cancellation of recognition of transitional ITO The Minister may, by notice in the Gazette, cancel the recognition of a transi- tional ITO— (a) (b) (c) (d) if it asks the Minister to cancel its recognition; or if the circumstances described in subclause (2) apply; or if it has breached the requirement set out in section 11E of the 1992 Act (as applied by clause 47(2)(g)); or if the Minister is satisfied that the transitional ITO— (i) (ii) is no longer responsible for carrying out any of the activities referred to in clause 44(3); or no longer exists.
(2) For the purpose of subclause (1)(b), the circumstances are that— (a) the Minister has issued a notice to the transitional ITO stating that the Minister considers its performance is inadequate for any of the following reasons: 5 10 15 20 (i) (ii) (iii) it is not carrying out at least 1 of the activities for the specified industries for which it is recognised: it is failing to comply with 1 or more conditions of its recognition: it is failing to comply with a compliance notice issued by the Qualifications Authority; and 25 (b) (c) the period of time specified in the notice within which the transitional ITO must improve its performance has elapsed; and the Minister is satisfied that the transitional ITO’s performance continues to be inadequate for the reason specified in the notice.
30 (3) For the purpose of subclause (2)(a), the notice must be in writing and state— the areas in which the Minister considers the transitional ITO’s perform- (a) ance to be inadequate; and (b) what actions the transitional ITO should take to improve its perform- ance; and 35 (c) the period (which must be a reasonable period) within which the transi- tional ITO must improve its performance; and 72 Education (Vocational Education and Training Reform) Amendment Bill Schedule 1 (d) the fact that the Minister may cancel the recognition of the transitional ITO under subclause (1) if it fails to improve its performance within that period.
(4) If the recognition of a transitional ITO is cancelled under subclause (1), any approval or consent associated with that recognition is withdrawn on the date on which the recognition is cancelled.

5 (5) No notice is required to be given to a transitional ITO for a withdrawal under 54 (1) (2) (3) subclause (4).

Recognition lapses at end of transition period This clause applies to any transitional ITO in existence at the close of the day immediately before the end of the transition period.
10 The recognition of the transitional ITO lapses at the end of the transition period.

If the recognition of a transitional ITO lapses under subclause (2), any appro- val or consent associated with that recognition is withdrawn on the date on which the recognition lapses.

15 (4) No notice is required to be given to a transitional ITO for a withdrawal under subclause (3).

Allocation of assets of transitional ITO This clause applies to any assets of a transitional ITO during the transition period.
20 55 (1) (2) Despite any enactment to the contrary or anything in the transitional ITO’s founding document, those assets may be allocated to 1 or more workforce development councils to which the activities of the transitional ITO have been transferred in accordance with the transition plan.
25 (3) In this clause,— assets has the same meaning as in section 216(1) founding document means,— (a) (b) (c) for a transitional ITO that is a company, the transitional ITO’s constitu- tion (if any): 30 for a transitional ITO that is an incorporated society, the transitional ITO’s rules: for a transitional ITO that is a charitable trust, the transitional ITO’s trust deed.
56 No compensation for technical redundancy of employees of transitional ITO 35 (1) An employee of a transitional ITO is not entitled to receive any payment or other benefit on the ground that the position held by the employee in the transi- 73 Schedule 1 Education (Vocational Education and Training Reform) Amendment Bill tional ITO has ceased to exist if the position ceases to exist because the duties of the position are more closely connected with the functions of a workforce development council, a provider, or another transitional ITO and— (a) the employee is offered employment in an equivalent position in that workforce development council, provider, or other transitional ITO 5 (whether or not the employee accepts the offer); or (b) the employee is offered and accepts that employment.
(2) In subclause (1)(a), employment in an equivalent position means employ- ment that is— (a) (b) (c) (d) in substantially the same position; and in the same general locality; and on terms and conditions that are no less favourable than those applying to the employee immediately before the date the offer of employment is made to that employee; and on terms that treat the period of service with the transitional ITO (and every other period of service recognised by the transitional ITO as con- tinuous service) as if it were continuous service with the workforce development council, provider, or other transitional ITO (as the case may be).
Subpart 3—Transitional regulationsOther matters 56A Employment of transitional ITO employees by NZIST, NZIST subsidiary, wananga, or workforce development council (1) (2) This clause applies if the activities of a transitional ITO are transferred to NZIST, an NZIST subsidiary, a wananga, or a workforce development council in accordance with a transition plan developed under clause 51.
The chief executive of NZIST or the NZIST subsidiary, wananga, or workforce development council (as the case may be) to which those activities are transfer- red must identify the employees of the transitional ITO— (a) whose duties overall are required by NZIST or the NZIST subsidiary, wananga, or workforce development council (as the case may be) to carry out its functions; and (b) whose positions will cease to exist as a result of the transfer of responsi- bility of the transitional ITO’s activities to NZIST or the NZIST subsid- iary, wananga, or workforce development council.
(3) An employee who is identified under subclause (2) may be offered equiva- lent employment by NZIST or the NZIST subsidiary, wananga, or workforce development council (as the case may be), being employment that is— 10 15 20 25 30 35 (a) (b) in substantially the same position; and in the same general locality; and 74 Education (Vocational Education and Training Reform) Amendment Bill Schedule 1 (c) (d) on terms and conditions (including any terms and conditions relating to redundancy and superannuation) that are no less favourable than those applying to the employee immediately before the date on which the offer of employment is made to the employee; and on terms that treat the period of service with the transitional ITO (and every other period of service recognised by the transitional ITO as con- tinuous service) as if it were continuous service with NZIST or the NZIST subsidiary, wananga, or workforce development council.
(4) If the employee accepts an offer of employment under subclause (3), the employee’s employment by NZIST, the NZIST subsidiary, wananga, or work- force development council (as the case may be) is to be treated as continuous employment, including for the purpose of service-related entitlements, whether legislative or otherwise.
(5) An employee of a transitional ITO that is offered employment under sub- clause (3) is not entitled to receive any payment or other benefit on the ground that the employee’s position in the transitional ITO has ceased to exist, whether or not the employee accepts the offer.

(6) This clause overrides— 5 10 15 (a) (b) Part 6A of the Employment Relations Act 2000; and any employee protection provision in any relevant employment agree- ment.
20 56B Employment of Qualifications Authority employees by workforce development council (1) (2) This clause applies if the functions of the Qualifications Authority in develop- ing, setting, and maintaining skill standards in relation to 1 or more specified industries are to be transferred to a workforce development council that covers those industries in accordance with a transition plan developed by the Qualifi- cations Authority for the purpose of this clause.
The chief executive of the workforce development council to which the func- tions of the Qualifications Authority are transferred must identify the employees of the Qualifications Authority— (a) whose duties overall are required by the workforce development council to carry out its functions; and (b) whose positions will cease to exist as a result of the transfer of responsi- bility of the Qualifications Authority’s functions to the workforce devel- opment council.
(3) An employee who is identified under subclause (2) may be offered equiva- lent employment by the workforce development council, being employment that is— (a) in substantially the same position; and 25 30 35 40 75 Schedule 1 Education (Vocational Education and Training Reform) Amendment Bill (b) (c) (d) in the same general locality; and on terms and conditions (including any terms and conditions relating to redundancy and superannuation) that are no less favourable than those applying to the employee immediately before the date on which the offer of employment is made to the employee; and on terms that treat the period of service with the Qualifications Authority (and every other period of service recognised by the Qualifications Authority as continuous service) as if it were continuous service with the workforce development council.
(4) If the employee accepts an offer of employment under subclause (3), the employee’s employment by the workforce development council is to be treated as continuous employment, including for the purpose of service-related entitle- ments, whether legislative or otherwise.
(5) An employee of the Qualifications Authority that is offered employment under subclause (3) is not entitled to receive any payment or other benefit on the ground that the employee’s position in the Qualifications Authority has ceased to exist, whether or not the employee accepts the offer.

(6) This clause overrides— 5 10 15 (a) (b) Part 6A of the Employment Relations Act 2000; and any employee protection provision in any relevant employment agree- ment.
20 56C No compensation for technical redundancy (1) An employee of the Qualifications Authority is not entitled to receive any pay- ment or other benefit on the ground that the position held by the employee has ceased to exist if the position ceases to exist because the duties of the position are more closely connected with the functions of a workforce development council and— (a) the employee is offered employment in an equivalent position in that workforce development council (whether or not the employee accepts the offer); or (b) the employee is offered and accepts that employment.
(2) In subclause (1)(a), employment in an equivalent position means employ- ment that is— in substantially the same position; and in the same general locality; and on terms and conditions that are no less favourable than those applying to the employee immediately before the date the offer of employment is made to that employee; and (a) (b) (c) 76 25 30 35 Education (Vocational Education and Training Reform) Amendment Bill Schedule 1 (d) on terms that treat the period of service with the Qualifications Authority (and every other period of service recognised by the Qualifications Authority as continuous service) as if it were continuous service with the workforce development council.
56D Existing training contracts 5 (1) This clause applies to a training contract between an employer and employee that is in force immediately before the commencement date.

(2) On and after the commencement date, the training contract must be treated as if it were a training agreement for the purposes of section 478.
56E References to industry training organisation to be treated as references to 10 transitional ITO 57 (1) (2) (3) Despite the amendments made by the amendment Act, a reference to an indus- try training organisation in any enactment or document, as it read immediately before the commencement date, must, on and after that date, be read as a refer- ence to a transitional ITO for the period that transitional ITOs remain in exis- tence under the amendment Act.
Transitional regulations The Governor-General may, by Order in Council made on recommendation of the Minister, make regulations prescribing transitional provisions, savings pro- visions, or both, for either or both of the following purposes: (a) (b) facilitating or ensuring the orderliness of the transition of the amend- ments made to this Act by the amendment Act: ensuring that existing rights or obligations continue as part of, or despite, that transition.
The Minister must not recommend the making of regulations under subclause (1) unless satisfied that those regulations— (a) are reasonably necessary for either or both of the purposes in sub- clause (1)(a) and (b); and are consistent with the purposes of those amendments.
(b) The transitional provisions or savings provisions prescribed by regulations under subclause (1) may be provisions in addition to or instead of those set out in this Part, and may— (a) (b) provide that, for a transitional period, in any circumstances, or subject to any conditions, specified in the regulations, 1 or more provisions (including definitions) of those amendments to this Act do not apply, or apply with modifications or additions: provide that, for a transitional period, in any circumstances, or subject to any conditions, specified in the regulations, 1 or more provisions repealed, amended, or revoked by those amendments to this Act con- 77 15 20 25 30 35 Schedule 1 Education (Vocational Education and Training Reform) Amendment Bill tinue to apply, or apply with modifications or additions, as if they had not been repealed, amended, or revoked: (c) provide for any other matter necessary for either or both of the purposes in subclause (1)(a) and (b).
(4) No regulations made under this clause may be made, or continue in force, after 5 the close of 31 December 2022.
78 Education (Vocational Education and Training Reform) Amendment Bill Schedule 2 Schedule 2 New Part 2 inserted into Schedule 13A s 67(2) Part 2 Additional provisions of Crown Entities Act 2004 applying to NZIST 5 Section Section 37 Section 38 Section 40 Section 41 Section 43 Sections 44 and 45 Sections 47 and 48 Sections 49 to 52 Sections 53 to 57 Sections 58 to 61 Sections 73 to 76 Section 77 Sections 96 to 102 Sections 120 to 126 Sections 127 and 128 Sections 138 to 149A Sections 149B to 149M Sections 150 to 156 Section 158 Brief description Removal of members of autonomous Crown entities Removal of elected members of Crown agents and autonomous Crown entities Definition of just cause Process for removal No compensation for loss of office Resignation of members and members ceasing to hold office Remuneration and expenses of members Collective duties of board Individual duties of members Effect of non-compliance with duties and reliance on information and advice Delegation Vacancies in membership of board Crown entity subsidiaries Liability of members, office holders, and employees Method of contracting and seal Statement of intent Statement of performance expectations Reporting: annual report Bank accounts of Crown entities 79 Schedule 3 Education (Vocational Education and Training Reform) Amendment Bill Schedule 3 New Schedule 22 inserted Schedule 22 NZIST’s charter s 69(1) s 222C(1) 1 2 3 The New Zealand Institute of Skills and Technology (NZIST) exists to pro- vide, arrange, and support a range of education and training in the workplace and in formalised learning environments using a variety of delivery methods perform the functions set out in section 222B.
NZIST will be responsive to the needs of all regions of New Zealand, their learners, industries, employers, and communities.
To meet the needs of regions throughout New Zealand, NZIST must— (a) (b) offer in each region a mix of education and training, including on-the- job, face-to-face, and distance delivery that is accessible to the learners of that region and meets the needs of its learners, industries, and com- munities; and operate in a manner that ensures its regional representatives are empow- ered to make decisions about delivery and operations that are informed by local relationships and to make decisions that meet the needs of their communities; and (c) ensure that international learners are attracted to train and study in regions throughout New Zealand; and (d) ensure that there is collaboration across its national network; and 5 10 15 20 (e) maintain a high-quality coherent network of infrastructure that meets 25 regional skills needs.
4 NZIST must operate in a way that allows it to— (a) empower students and staff on academic, non-academic, and well-being matters and matters relating to the organisation’s practices and services; and 30 (b) develop meaningful partnerships with— (i) (ii) industry across the country, including Māori and Pacific employ- ers, smaller employers, and those operating in niche sectors; and communities at a local level, including hapū and iwi, and Pacific communities; and 35 (c) use the insights gained through partnerships to— (i) develop and provide vocational education and training that meets short-term and long-term skills needs; and 80 Education (Vocational Education and Training Reform) Amendment Bill Schedule 3 (ia) (ii) expand industry training into smaller employers and niche sectors; and align education and training delivery to support the unique social and economic goals of local communities; and (iii) work towards equity for learners and staff of different genders, 5 ethnicities, cultures, and abilities; and (d) reflect Māori-Crown partnerships in order to— (i) (ii) (iii) ensure that its governance, management, and operations give effect to Te Tiriti o Waitangi; and recognise that Māori are key actors in regional social, environ- mental, and economic development; and 10 respond to the needs of and improve outcomes for Māori learners, whanau, hapū and iwi, and employers; and hold inclusivity as a core principle and equity as core principles, recog- nising and valuing the diversity of all of its learners, and
 providing the unique types of support different learners need to succeed; and 15 meet the needs of all of its learners, in particular those who are under- served by the education system, including, but not limited to, Māori, Pacific, and disabled learners; and promote equitable access to learning opportunities for learners across all regions; and 20 have culturally responsive delivery approaches, whether on campus, in the workplace, online, or otherwise; and (e) (f) (fa) (g) 25 30 (h) work collaboratively with schools, wananga, and other tertiary education organisations (including workforce development councils) to improve the outcomes of the education system as a whole, including the transition of learners into employment.
5 In giving effect to clause 4, NZIST must ensure that— (a) (b) (ba) (c) (d) students and employers can transition seamlessly between delivery sites and educational modes, including between workplaces and other forms and places of learning; and programmes of study and qualifications are portable and consistent, yet flexible enough to meet local needs; and the academic integrity of the education and training programmes it deliv- ers is protected; and 35 New Zealand’s reputation as a quality study destination for international learners is sustained; and the range of education and training options available to learners and employers is appropriately broad and current; and 81 Schedule 3 Education (Vocational Education and Training Reform) Amendment Bill (e) (f) (g) future skill needs are anticipated and quickly responded to; and teaching and learning is supported by research, evidence, and best prac- tice; and learning pathways provide learners with a range of opportunities to pro- gress to higher levels of education and training, and also into employ- ment; and 5 (h) the needs of adult and second-chance learners are afforded high priority.
82 Education (Vocational Education and Training Reform) Amendment Bill Schedule 4 Schedule 4 New Schedule 23 inserted Schedule 23 Provisions applying on dissolution of NZIST subsidiary s 69(2) 5 s 222ZC 1 Interpretation In this schedule, unless the context otherwise requires,— Commission means the Tertiary Education Commission established under sec- tion 159C 10 (ii) (iii) dissolution date, in relation to an NZIST subsidiary, means— (a) (b) (c) the date specified in section 222ZA(1); or the date specified by Order in Council under section 222ZA(2); or the date on which the subsidiary is dissolved in accordance with a reso- lution of NZIST’s council under section 222ZB dissolution date— (a) means, in relation to a corresponding NZIST subsidiary established under clause 27(1) of Schedule 1,— (i) the date specified in clause 27A(1) of that schedule: the date specified by Order in Council under clause 27A(2) of that schedule: the date on which the subsidiary is dissolved in accordance with a resolution of NZIST’s council under clause 27B of Sched- ule 1: (b) means, in relation to a subsidiary formed by NZIST under section 222Z(1), the date on which the subsidiary is dissolved in accordance with a resolution of NZIST’s council NZIST means the New Zealand Institute of Skills and Technology established by section 222A NZIST subsidiary means a Crown entity subsidiary of NZIST listed in the second column of the table in clause 27(3) of Schedule 1 NZIST subsidiary means— (a) (b) a corresponding NZIST subsidiary
 established under clause 27(1) of Schedule 1: a subsidiary formed by NZIST under section 222Z(1) 83 15 20 25 30 35 Schedule 4 Education (Vocational Education and Training Reform) Amendment Bill Qualifications Authority means the New Zealand Qualifications Authority continued by section 256A.
Dissolution 2 Dissolution of NZIST subsidiary (1) An NZIST subsidiary is dissolved on the dissolution date.

(2) As soon as possible after the dissolution date, the Registrar of Companies must remove the NZIST subsidiary from the New Zealand register of companies kept under the Companies Act 1993.
Consequences of dissolution 3 (1) Members of NZIST subsidiary board cease to hold office Every member of an NZIST subsidiary’s board who holds office immediately before the dissolution date ceases to hold office on the close of the day before that date.

(2) Neither the Crown, NZIST, nor the NZIST subsidiary is liable to make a pay- ment to, or otherwise compensate, a person referred to in subclause (1) for the loss of office.
4 (1) Transfer of rights, assets, and liabilities to NZIST This clause applies to all rights, assets, and liabilities that an NZIST subsidiary had immediately before the dissolution date.
(2) On and after the dissolution date,— (a) (b) all rights, assets, and liabilities of the NZIST subsidiary vest in NZIST; and unless the context otherwise requires, every reference to the NZIST sub- sidiary in any enactment or any instrument, register, agreement, deed, lease, application, notice, or other document before the dissolution date must be read as a reference to NZIST.

In this clause, assets, liabilities, and rights have the same meanings as in sec- tion 216(1).
Employment of NZIST subsidiary employees by NZIST The chief executive of NZIST must identify the employees of the NZIST sub- sidiary— 30 (a) whose duties overall are required by NZIST to carry out its functions; and (b) whose positions will cease to exist as a result of the dissolution of the NZIST subsidiary.
35 (3) 5 (1) 84 Education (Vocational Education and Training Reform) Amendment Bill Schedule 4 (2) An employee who is identified under subsection (1) subclause (1) must be offered equivalent employment by NZIST, being employment that is— (a) (b) (c) (d) in substantially the same position; and in the same general locality; and on terms and conditions (including any terms and conditions relating to redundancy and superannuation) that are no less favourable than those applying to the employee immediately before the date on which the offer of employment is made to the employee; and on terms that treat the period of service with the NZIST subsidiary (and every other period of service recognised by the NZIST subsidiary as continuous service) as if it were continuous service with NZIST.
(3) If the employee of the NZIST subsidiary accepts an offer of employment under subclause (2), the employee’s employment by NZIST is to be treated as con- tinuous employment, including for the purpose of service-related entitlements, whether legislative or otherwise.
(4) An employee of an NZIST subsidiary that is offered employment under sub- clause (2) is not entitled to receive any payment or other benefit on the ground that the employee’s position in the NZIST subsidiary has ceased to exist or the employee has declined to accept an offer of employment in an equivalent position whether or not the employee accepts the offer.
(5) This clause overrides— 6 (1) (2) (3) (4) (5) (a) (b) Part 6A of the Employment Relations Act 2000; and any employee protection provision in any relevant employment agree- ment.

Government Superannuation Fund This clause applies to a person who, immediately before becoming an employee of NZIST, was a contributor to the Government Superannuation Fund under Part 2 or 2A of the Government Superannuation Fund Act 1956.
For the purposes of the Government Superannuation Fund Act 1956, the person is treated as being employed in the Government service as long as the person continues to be an employee of NZIST.

The Government Superannuation Fund Act 1956 applies to the person in all respects as if the person’s service as an employee of NZIST were Government service.

Subclause (1) does not entitle a person to become a contributor to the Gov- ernment Superannuation Fund if the person has ceased to be a contributor.
35 For the purpose of applying the Government Superannuation Fund Act 1956, the chief executive of NZIST is the controlling authority.

85 Schedule 4 Education (Vocational Education and Training Reform) Amendment Bill 7 (1) Transfer of students to NZISTStudents of existing polytechnics This clause applies to every student enrolled at an NZIST subsidiary immedi- ately before the dissolution date.
(2) On and after the dissolution date, the student must be treated as having been enrolled at NZIST.

(3) A student who would, but for the dissolution of the NZIST subsidiary, have been entitled to be granted an award of the NZIST subsidiary is entitled to be granted a like award of NZIST.

(4) In subclause (3), award has the same meaning as in section 159(1).
7A Visas granted under Immigration Act 2009 5 10 (1) This clause applies to a visa granted under the Immigration Act 2009 in respect of— (a) (b) a student, for the purposes of enrolment at an NZIST subsidiary; or a staff member of an NZIST subsidiary.

(2) On and after the dissolution date, any reference to the NZIST subsidiary in a 15 condition imposed on the visa must be read as a reference to NZIST.
8 (1) Existing approvals, accreditations, and consents This clause applies to the following matters granted to an NZIST subsidiary or treated as having been granted to the subsidiary by the Qualifications Authority under Part 20 before the dissolution date and in effect immediately before that date: 20 (a) (b) (c) (d) (e) an approval of a programme under section 249: an accreditation to provide all or part of a programme under section 250: an approval to provide a training scheme under section 251: a consent to assess against the standards listed on the Directory of Assessment Standards under section 252: 25 a consent to award a degree or a post-graduate qualification under sec- tion 253B.
(2) On and after the dissolution date,— (a) (b) the approval, accreditation, or consent (including any conditions imposed on an approval or accreditation) continues to apply and must be treated as if it were granted to NZIST; and unless the context otherwise requires, every reference in the approval, accreditation, or consent must be read as a reference to NZIST.
Existing funding approvals This clause applies to an approval granted to an NZIST subsidiary or treated as having been granted to the subsidiary by the Commission under section 30 35 9 (1) 86 Education (Vocational Education and Training Reform) Amendment Bill Schedule 4 159YA(2) or 159ZC before the dissolution date and in effect immediately before that date.
(2) On and after the dissolution date,— (a) (b) the approval (including any conditions imposed on the approval) con- tinues to apply and must be treated, unless it is earlier withdrawn or revoked, as if it were granted to NZIST; and 5 unless the context otherwise requires, every reference in the approval to the NZIST subsidiary must be read as a reference to NZIST.
10 Existing proceedings and other matters (1) On and after the dissolution date,— (a) (b) (c) the continuation or enforcement of any proceedings by or against an NZIST subsidiary may instead be continued or enforced by or against NZIST without amendment to the proceedings; and the completion of a matter or thing that would, but for this clause, have been completed by the NZIST subsidiary may be completed by NZIST; and anything done, or omitted to be done, or that is to be done, by or in rela- tion to the NZIST subsidiary is to be treated as having been done, or having been omitted to be done, or to be done, by or in relation to NZIST.
(2) In subclause (1)(a), proceedings— (a) means civil and criminal proceedings; and (b) includes any enforcement or compliance activities by the Commission or the Qualifications Authority.

11 Final report of dissolved subsidiary 10 15 20 25 (1) As soon as is reasonably practicable after the dissolution date, NZIST must prepare and forward to the Minister a final report on the dissolved subsidiary’s operations.
(2) The final report must be for the period (the report period)— (a) (b) commencing at the start of the financial year in which the NZIST subsid- iary was dissolved; and 30 ending with the close of the day immediately before the date on which the subsidiary was dissolved.

(3) (4) The final report must include audited financial statements for the report period.

The Minister must present a copy of the final report to the House of Represen- tatives as soon as is reasonably practicable after receiving it.
35 87 Schedule 4 Education (Vocational Education and Training Reform) Amendment Bill 12 Transfers of contracts does not give rise to claims No person may claim against NZIST or an NZIST subsidiary for breach of contract on the ground that contract, or any benefit of the contract, is vested in NZIST, whether or not the vesting involves the NZIST and its employees gain- ing access to any information, data, programme, intellectual property right knowledge, chattel, equipment, transmission device, or facility of the claimant or any other person.
13 (1) (2) Provisions that apply if corresponding NZIST subsidiary dissolved and assets, etc, transferred to another NZIST subsidiary This clause applies if NZIST’s council dissolves a corresponding NZIST sub- sidiary under clause 27B of Schedule 1 and transfers some or all of the rights, assets, and liabilities of that subsidiary to another NZIST subsidiary under that clause.
Clauses 4 to 10 and 12 of this schedule apply, with any necessary modifica- tions, as if a reference in those provisions to NZIST were to the other NZIST subsidiary to which those rights, assets, and liabilities are transferred.
5 10 15 88 Education (Vocational Education and Training Reform) Amendment Bill Schedule 5 Schedule 5 New Schedule 24 inserted Schedule 24 Matters to be specified in levy orders s 69(3) 5 ss 500, 510 To whom levy is payable and who pays The name of the workforce development council that is to receive the levy.

A description of the industry whose members will be primarily liable to pay the levy.

10 Amount of levy The basis on which the amount of the levy is to be calculated or ascertained.
How the size of a qualifying member of the levy group is to be calculated for the purposes of calculating the levy payable by that member, for example,— (a) based on the number of employees of the member that work in the rele- vant industry; or 15 (b) based on the level of production of the member.

Whether the levy is to be payable at a single rate or 2 or more different rates and the basis on which any different rates will apply.

How the rates of the levy are to be notified.


Maximum and minimum amounts of levy payable (if any).

The amount of any additional charges, or the percentage increase in the levy payable, if amounts of levy otherwise payable are paid late or not paid at all (if applicable).
Either— Application of levy (a) (b) how the workforce development council is to spend the levy; or the means by which the organisation is to consult qualifying members of the levy group as to how the workforce development council is to spend it.

10 Whether the levy must be spent by the workforce development council or may be paid to, and spent by, branches or subsidiaries of the workforce development council.
89 20 25 30 Schedule 5 Education (Vocational Education and Training Reform) Amendment Bill 11 When and how the levy is to be payable, including— Payment of levy (a) (b) (c) the period to which the levy will apply (the levy period); and how often levy payments are required to be made; and the methods of payment of the levy that is to be available to qualifying members of the levy group.
5 12 13 How the amount of the levy payable is to be calculated when a person becomes a qualifying member of the levy group part way through a levy period.

How refunds of the levy are to be calculated, and when they will be paid, if a qualifying member ceases to be a qualifying member of the levy group part way through a levy period.

14 What exemptions from payment of the levy will be available.
15 16 17 18 The circumstances (if any) in which, and the conditions subject to which, quali- fying members of the levy group may be allowed extensions of time for the payment of any amount of levy.

The enforcement mechanisms that the workforce development council receiv- ing the levy may use to collect the levy.
Collection of levy by agent The persons (if any), other than the industry members primarily responsible for paying the levy, who are responsible for collecting the levy in accordance with section 516.

The amount of, or percentage of, the levy money collected that a collection agent may retain as a fee for providing the collection service.
19 The records to be kept by— Other matters (a) (b) (c) the workforce development council receiving the levy; and persons collecting the levy; and persons who are, or may be, liable to pay the levy.

10 15 20 25 20 The details of the method of arbitration or mediation to apply in the case of dis- putes, as required by section 521.
30 90 (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) Education (Vocational Education and Training Reform) Amendment Bill Schedule 5A Schedule 5A New Schedule 25 inserted s 69(4) Schedule 25 Further provisions of Act that apply and do not apply to NZIST subsidiaries The following provisions of this Act apply, with all necessary modifications, to an NZIST subsidiary: s 222Z(1A) 5 10 section 201A (how institutions may use income and capital): section 201B (gifts): section 201C (council may establish common fund): section 201D (investment of funds held in common fund): section 202 (application of money): section 212 (resumption of land on recommendations of Waitangi Tribunal): 15 section 213 (resumption of land to be effected under Public Works Act 1981): section 214 (resumption of Wahi Tapu): section 220 (annual report): section 221 (annual report to be available for inspection).
The following provisions of this Act do not apply to an NZIST subsidiary: 20 (a) (b) (c) (d) section 196 (duties of chief executive): section 197 (delegation by chief executive): section 200 (bank accounts): section 201 (proper accounts to be kept).
91 Schedule 6 Education (Vocational Education and Training Reform) Amendment Bill Schedule 6 Consequential amendments to other enactments s 73 Part 1 Amendments to Acts Accident Compensation Act 2001 (2001 No 49) In section 6(1), definition of place of education, paragraph (a)(ii), replace “a poly- technic,” with “the New Zealand Institute of Skills and Technology and its Crown entity subsidiaries,”.
Building Act 2004 (2004 No 72) In Schedule 2, paragraph (m), replace “polytechnics,” with “the New Zealand Insti- tute of Skills and Technology and its Crown entity subsidiaries,”.
Care and Support Workers (Pay Equity) Settlement Act 2017 (2017 No 24) In section 5, definition of level 2 qualification, paragraph (b), definition of level 3 qualification, paragraph (b), and definition of level 4 qualification, paragraph (b), replace “industry training organisation (within the meaning of that term in section 2 of the Industry Training and Apprenticeships Act 1992)” with “workforce develop- ment council (as that term is defined in section 477 of the Education Act 1989)”.
Crown Entities Act 2004 (2004 No 115) In section 6(1), replace “Schedule 4 of this Act and Schedule 13A of the Education Act 1989 apply to tertiary” with “Part 1 of Schedule 4 of this Act and Part 1 of Schedule 13A of the Education Act 1989 apply to all tertiary”.
After section 6(1), insert: (1A) The provisions set out in Part 2 of Schedule 4 of this Act and Part 2 of Schedule 13A of the Education Act 1989 apply to the New Zealand Institute of Skills and Technology and its Crown entity subsidiaries (as applicable) in add- ition to the provisions referred to in subsection (1).

In section 7(1)(e), replace “polytechnics” with “the New Zealand Institute of Skills and Technology”.
In Schedule 4, after the Schedule 4 heading, insert: Part 1 Provisions relating to all tertiary education institutions In Schedule 4, after the last item, insert: 92 Education (Vocational Education and Training Reform) Amendment Bill Schedule 6 Crown Entities Act 2004 (2004 No 115)—continued Part 2 Additional provisions that apply to New Zealand Institute of Skills and Technology Section Section 37 Section 38 Section 40 Section 41 Section 43 Sections 44 and 45 Sections 47 and 48 Sections 49 to 52 Sections 53 to 57 Sections 58 to 61 Sections 73 to 76 Section 77 Sections 96 to 102 Sections 120 to 126 Sections 127 and 128 Sections 138 to 149A Sections 149B to 149M Sections 150 to 156 Section 158 Brief description Removal of members of autonomous Crown entities Removal of elected members of Crown agents and autonomous Crown entities Definition of just cause Process for removal No compensation for loss of office Resignation of members and members ceasing to hold office Remuneration and expenses of members Collective duties of board Individual duties of members Effect of non-compliance with duties and reliance on information and advice Delegation Vacancies in membership of board Crown entity subsidiaries Liability of members, office holders, and employees Method of contracting and seal Statement of intent Statement of performance expectations Reporting: annual reports Bank accounts of Crown entities Financial Advisers Act 2008 (2008 No 91) In section 5, replace the definition of lecturer with:
 lecturer means a person who is employed by a university, the New Zealand Institute of Skills and Technology and its subsidiaries, or a college of education to teach or instruct students of the university, New Zealand Institute of Skills and Technology and its subsidiaries, or college of education In section 5, repeal the definition of polytechnic.
In section 5, insert in its appropriate alphabetical order: NZIST means the New Zealand Institute of Skills and Technology established by section 222A of the Education Act 1989, and includes its Crown entity subsidiaries 5 10 93 Schedule 6 Education (Vocational Education and Training Reform) Amendment Bill Income Tax Act 2007 (2007 No 97) In section YA 1, definition of tertiary education institution, paragraph (a), replace “Part 14” with “Part 14 or 15A, or subpart 1 of Part 9 of Schedule 1”.
Local Government Official Information and Meetings Act 1987 (1987 No 174) In Schedule 2, insert in its appropriate alphabetical order: New Zealand Institute of Skills and Technology established under Part 15A of the Education Act 1989 and its subsidiaries Ngāti Tūwharetoa Claims Settlement Act 2018 (2018 No 55) In section 142(2)(c), after “Polytechnic”, insert “Limited”.
Ombudsmen Act 1975 (1975 No 9) In Schedule 1, Part 2, insert in its appropriate alphabetical order: 5 10 A workforce development council established under section 479 of the Education Act 1989 Plumbers, Gasfitters, and Drainlayers Act 2006 (2006 No 74) In the heading to section 157, replace “industry training organisation” with “work- force development council”.

15 In section 157(1) and (2), replace “industry training organisation” with “workforce development council”.
Replace section 157(3) with: (3) In this section, workforce development council means a workforce develop- ment council established under section 479 of the Education Act 1989.
20 Public Audit Act 2001 (2001 No 10) In Schedule 2, insert in its appropriate alphabetical order: A workforce development council established under section 479 of the Education Act 1989 25 Real Estate Agents Act 2008 (2008 No 66) Replace section 12(3) with: (3) To avoid doubt, nothing in subsection (1) affects the role of a workforce devel- opment council established under section 479 of the Education Act 1989 for the real estate industry.
30 Residential Tenancies Act 1986 (1986 No 120) In section 5B(6), replace “polytechnics,” with “the New Zealand Institute of Skills and Technology and its Crown entity subsidiaries,”.
94 Education (Vocational Education and Training Reform) Amendment Bill Schedule 6 Taratahi Agricultural Training Centre (Wairarapa) Act 1969 (1969 No 138) Replace section 3(2)(d) with: (d) 1 member appointed on the nomination of the workforce development council whose specified industry coverage includes agriculture: Part 2 Amendments to legislative instruments 5 Accident Insurance (“Counsellor”) Regulations 1999 (SR 1999/166) In regulation 2, definition of course of education, paragraph (a), replace “a polytech- nic,” with “the New Zealand Institute of Skills and Technology and its Crown entity subsidiaries,”.
10 Electronic Identity Verification Regulations 2013 (SR 2013/9) Revoke regulation 4(1)(k).

Fire and Emergency New Zealand (Fire Safety, Evacuation Procedures, and Evacuation Schemes) Regulations 2018 (LI 2018/96) In Schedule 2, paragraph 13, replace “polytechnics,” with “the New Zealand Institute of Skills and Technology and its Crown entity subsidiaries,”.
15 Health and Safety at Work (Mining Operations and Quarrying Operations) Regulations 2016 (LI 2016/17) In regulation 3(1), revoke the definition of industry training organisation.

In regulation 50(3), replace “registered with an industry training organisation” with “assessing under a consent to assess against standards granted under section 252 of the Education Act 1989”.
20 International Student Contract Dispute Resolution Scheme Rules 2016 (LI 2016/42) In rule 28(2)(a), replace “institutes of technology and polytechnics,” with “the New 25 Zealand Institute of Skills and Technology and its Crown entity subsidiaries,”.

National Civil Defence Emergency Management Plan Order 2015 (LI 2015/140) In the Schedule, clause 102(2)(a), replace “polytechnics,” with “the New Zealand Institute of Skills and Technology and its Crown entity subsidiaries,”.
Real Estate Agents (Licensing) Regulations 2009 (SR 2009/282) 30 In regulation 3(1), revoke the definition of industry training organisation.
In regulation 3(1), insert in its appropriate alphabetical order: 95 Schedule 6 Education (Vocational Education and Training Reform) Amendment Bill Real Estate Agents (Licensing) Regulations 2009 (SR 2009/282)—continued workforce development council means the workforce development council for the real estate industry established under section 479 of the Education Act 1989 In regulation 12(1)(a)(iii), (b)(iv), and (c)(iv), replace “industry training organisation” with “workforce development council”.
5 Sale and Supply of Alcohol Regulations 2013 (SR 2013/459) Revoke regulation 23(1)(b) and (2)(b).

Student Allowances Regulations 1998 (SR 1998/277) In regulation 2(1), definition of tertiary provider, replace “polytechnic,” with “the New Zealand Institute of Skills and Technology and its Crown entity subsidiaries,”.
10 26 August 2019 29 August 2019 Legislative history Introduction (Bill 170–1) First reading and referral to Education and Workforce Committee Wellington, New Zealand: Published under the authority of the House of Representatives—2019 96