Calder Cam: Industry Training and Apprenticeships Amendment Bill — Second ReadingText is incorporated into the Bound VolumeCalder Cam: Industry Training and Apprenticeships Amendment Bill — Second Reading[Sitting date: 18 March 2014. Volume:697;Page:16795. Text is incorporated into the Bound Volume.]Dr CAM CALDER (National):Thank you very much for the opportunity to take a call on the Industry Training and Apprenticeships Amendment Bill. I just want to acknowledge the nature of the Education and Science Committee. The Opposition members have made it clear that they oppose this bill but I do want to acknowledge the fact that they cooperated to allow the amendments that are contained within this legislation to be reported back to the House and that is appreciated.The background on this bill is that the Government reviewed industry training over 2011-12. This review found that changes were needed to ensure the industry training system is well connected to industry with high employer buy-in is educationally sound and is coherent with the wider tertiary system. It also has to deliver value for money for employers and the Government. The bill makes the amendments required to implement the findings of this review. I notice that some of them are opposed by the Opposition and I will come back to that. The main provisions of the bill are that it will establish a comprehensive apprenticeship system that provides the same level of support to all apprentices regardless of their age and I think that is a crucial component of this bill and one that I think we all had buy-in about across the committee. It focuses industry training organisations on two key functions: setting skill standards for the industries and arranging training. It clarifies the functions and powers of the New Zealand Qualifications Authority in relation to industry training organisations and includes criteria relating to quality assurance in the process by which the responsible Minister recognises an organisation as an industry training organisation.We heard from the previous speaker Grant Robertson about some of the concerns that the Opposition hold. Members opposite expressed concern for instance about the provisions in the bill making it clear that non - industry training organisations can receive funding for industry training and apprenticeship training. Some submitters contended that funding non - industry training organisations risks fragmenting the industry training sector and will lead to the funding of training that is solely to an employer’s benefit. Submitters were also concerned that non - industry training organisations did not appear to be subject to the same quality assurance requirements as industry training organisations.In my view these concerns are misplaced. Allowing non - industry training organisations to be funded for arranging training and apprenticeship training activities will strengthen the incentive for industry training organisations to provide excellent service to employers and trainees. The review of industry training in 2011 found that a significant number of employers thought that their industry training organisations did a poor job. I understand that that was a couple of years ago and that there have been changes since but having this option available as an alternative for employers will encourage industry training organisations to provide quality service to their employee clients at all times.Second I would be surprised if many employers actually take up this option for their apprenticeship training in practice. Only $10 million—I say again only $10 million—of funding for non - industry training organisations is available in each of 2014 and 2015. That is about 5.5 percent of the total funding for industry training and apprenticeships. It is worth remembering that participating employers must have at least 40 trainees each year and that the programmes and qualifications that are eligible for industry training funding are the same for industry training organisations and non - industry training organisations.Finally the monitoring and assessing of the arrangements of non - industry training organisations for training will have to be acceptable to the New Zealand Qualifications Authority. Furthermore the funding determination specifies that in order to receive funding non - industry training organisations and industry training organisations must ensure any programme in which a trainee is enrolled meets the quality assurance requirements of the New Zealand Qualifications Authority. In practice and as a matter of policy the Government funds only industry training that leads to transferable qualifications for the employee. That policy will apply to non - industry training organisations in the same way as it applies to industry training organisations. There will be a level playing field. I commend this bill to the House.