Source: http://www.legislation.govt.nz/bill/government/2019/0170/latest/whole.html
Timestamp: 2019-09-15 16:06:27
Document Index: 397968477

Matched Legal Cases: ['art 1', 'arts 1', 'arts 13', 'art 13', 'art 13', 'art 15', 'art 15', 'art 15', 'art 2', 'art 1', 'art 2', 'art 15', 'art 15', 'art 2', 'art 2', 'art 34', 'art 34', 'art 1', 'art 2', 'art 2', 'art 3', 'art 5', 'art 9', 'art 9', 'art 1', 'art 2', 'art 2', 'art 2', 'arts 2', 'art 3', 'art 2', 'art 2', 'art 34', 'art 8', 'art 9', 'art 9', 'art 9', 'arts 16', 'art 2', 'art 2', 'art 2', 'art 3', 'art 2', 'art 2']

Education (Vocational Education and Training Reform) Amendment Bill 170-1 (2019), Government Bill – New Zealand Legislation
The purpose of the Education (Vocational Education and Training Reform) Amendment Bill (the Bill) is to create a unified and cohesive vocational education and training system. To do this, the Bill amends the Education Act 1989 (the principal Act) and repeals the Industry Training and Apprenticeships Act 1992 (the ITAA).
The Bill achieves the public policy objective of creating a unified and cohesive vocational education and training system by—
New regulatory framework for vocational education
Currently, industry training organisations are recognised under the ITAA to develop and maintain standards for an industry or industries and to develop arrangements for the delivery of work-based training. Sixteen polytechnics (known as Institutes of Technology and Polytechnics), 3 wānanga and a large number of private training establishments—collectively known as providers—deliver vocational education outside of the workplace under the principal Act. This dual system is legislatively and operationally complex. The consequence is that the system does not always meet the needs of learners, employers, or regions. Some polytechnics are facing big challenges to their sustainability, putting access to their delivery at risk, and employers find the lack of industry input into education delivered outside of workplaces frustrating.
This Bill integrates industry training and vocational education through the establishment of a single regulatory framework for vocational education and training, bringing the provisions of the ITAA into the principal Act. The ITAA will be repealed. This will simplify the legislative framework for vocational education and training. Allied to this, the Bill establishes new entities to create a unified and cohesive system of vocational education and training.
The Bill provides for workforce development councils to be established by Order in Council. Workforce development councils will have the following functions in respect of a specified industry or industries:
to provide skills leadership for the specified industries, including by identifying their current and future needs and advocating for those needs to be met:
to develop and set skill standards:
to develop and maintain industry qualifications:
to develop training schemes:
to develop and set training packages:
to decide whether to endorse programmes developed by providers:
to develop and set capstone assessments:
to carry out moderation activities:
to provide employers with brokerage and advisory services approved by the Tertiary Education Commission (the Commission):
to advise the Commission on its overall investment in vocational education and training:
to advise the Commission about the mix of vocational education and training needed:
to represent the interests of the specified industries, while taking account of national and regional interests:
to perform any other functions in relation to the specified industries conferred on it by the Minister of Education (the Minister).
The Commission must have regard to advice from any workforce development council in assessing any proposed plan in relation to vocational education and training. It must give effect to advice from any workforce development council about the mix of vocational education and training needed for its industry, within certain funding limits. Workforce development councils may be disestablished by Order in Council in certain limited circumstances.
NZIST will be a tertiary education institution established under the principal Act and a Crown entity for the purposes of the Crown Entities Act 2004. NZIST will have the following functions:
to provide or arrange, and support, a range of education and training and conduct applied research; and
to be responsive to and to meet the needs of the regions of New Zealand and their learners, industries, employers, and communities by utilising its national network of tertiary education programmes and activities; and
to improve the consistency of vocational education and training by using skill standards and working in collaboration with workforce development councils; and
to improve outcomes in the tertiary education system as a whole, including by making connections with schools and other organisations involved in tertiary education; and
to improve outcomes for Māori learners and Māori communities in collaboration with Māori and iwi partners and stakeholders.
The Bill sets out a charter that NZIST must give effect to. The Bill sets out arrangements for the constitution and term of office of NZIST’s council, and matters to be considered when appointing members. Provisions of the Crown Entities Act 2004 that currently apply to tertiary education institutions will apply to NZIST. Certain additional provisions of the Crown Entities Act 2004 will apply to NZIST and its Crown entity subsidiaries, including the requirement to produce a statement of intent and a statement of performance expectations. These accountability arrangements reflect its unique status as a national institution. Similarly, the Bill establishes a risk management framework for NZIST, and a requirement to provide information to the chief executive of the Commission if requested.
To facilitate a smooth transfer of functions from existing organisations, there will be a transition period from the commencement of the Bill on 1 April 2020 until 31 December 2022.
Industry training organisations are currently recognised under the ITAA to develop and maintain skill standards for an industry or industries and to support work-based training. By the end of the transition period, these functions will be undertaken by workforce development councils and providers of vocational education and training respectively. No new industry training organisations will be recognised. Existing industry training organisations will be recognised as transitional industry training organisations (transitional ITOs) and will be able to continue to operate current arrangements to ensure continuity. Transitional ITOs will be required to develop transition plans for the transfer of responsibility for their activities to workforce development councils and providers. Recognition of all transitional ITOs will lapse at the end of the transition period.
All existing polytechnics will become Crown entity subsidiaries of NZIST (being registered companies under the Companies Act 1993) from the commencement date. The Bill contains provisions for the transfer of assets, liabilities, employees, and students, as well as approved programmes, training schemes, and consents to assess against standards listed on the Directory of Assessment Standards. The subsidiaries of NZIST will be dissolved on 31 December 2022, transferring the undertaking of the subsidiary to NZIST, unless dissolved earlier by NZIST’s council. The dissolution date of any subsidiary may be extended beyond the legislated date by Order in Council.
The Bill transfers a power to establish, by Order in Council, a voluntary levy on members of an industry from the ITAA to the principal Act. The levy is to meet the costs associated with developing and maintaining skill standards for an industry. The levy order is a legislative instrument and a disallowable instrument for the purposes of the Legislation Act 2012. The purpose of the transfer is to maintain existing legislative provision for such a levy while providing for workforce development councils to collect and allocate the levy, rather than industry training organisations. The provisions are otherwise unchanged. Similarly, the Bill transfers a power from the ITAA to the principal Act that enables the Minister, by notice in the Gazette, to issue an apprenticeship training code. This is a disallowable instrument, but not a legislative instrument, for the purposes of the Legislation Act 2012. The purpose of the transfer is to maintain existing legislative provision for such a training code and the provisions are unchanged.
The Bill enables transitional regulations to be made by Order in Council. This ability for regulations to amend primary legislation provides a necessary process to enable additions or changes to the transitional provisions as necessary to facilitate an orderly transition to NZIST and workforce development councils or to ensure that existing rights or obligations continue as part of, or despite, that transition. The power to make regulations is limited to the duration of the transition period ending on 31 December 2022.
The Bill includes consequential amendments to other enactments to reflect the changes made by the Bill.
The Bill comes into force on 1 April 2020.
A copy of the statement can be found at http://legislation.govt.nz/disclosure.aspx?type=bill&subtype=government&year=2019&no=170
The Ministry of Education produced a regulatory impact assessment on 24 June 2019 to help inform the main policy decisions taken by the Government relating to the contents of this Bill.
https://education.govt.nz/vocational-education-reform-bill
Clause 2 provides that the Bill comes into force on 1 April 2020.
Part 1Substantive amendments to principal Act
Clause 4 amends section 2, which defines terms used in Parts 1, 2, 3, and 11. The amendments repeal the definition of industry training organisation and update the definition of tertiary component.
Clause 5 repeals section 31B(1)﻿(b)﻿(ii), which provides that the Minister of Education (the Minister) may recognise an industry training organisation as a provider group for a secondary-tertiary programme.
Clause 6 consequentially repeals section 31F(d), which enables an industry training organisation to be recognised as a lead provider for a secondary-tertiary programme.
Clause 7 amends section 159, which defines terms for the purposes of Parts 13A to 24 and Schedules 13 to 17 (relating to tertiary education). The amendments insert new definitions of New Zealand Institute of Skills and Technology (NZIST) and workforce development council and update the key definitions of council and institution so that they include NZIST’s council and NZIST for the purposes of those Parts of the principal Act. Clause 7 also repeals various definitions that are no longer required, including the definitions of designated polytechnic and industry training organisation, and updates other defined terms to delete references to industry training organisations.
Clause 8 amends section 159B, which defines the term organisation for the purposes of Part 13A, which contains provisions about the Tertiary Education Commission (the Commission). The amendment provides that a workforce development council is an organisation for the purposes of Part 13A.
Clause 9 amends section 159F, which states the functions of the Commission, by inserting new section 159F(1)﻿(ea) to (eg). The amendments transfer the functions of the Commission in relation to industry training and apprenticeships currently set out in section 13 of the ITAA into the principal Act with some adjustment to reflect the focus on work-based training and to confer additional functions on the Commission in relation to workforce development councils.
Clause 10 inserts new sections 159FA to 159FC, which impose duties on the Commission in relation to workforce development councils, require a workforce development council to provide information to the Commission about its financial position or operations (or both), and allow the Commission to audit workforce development councils.
Clause 11 amends section 159G, which states principles guiding how the Commission operates. The amendments replace references to industry training organisations with references to workforce development councils.
Clause 12 inserts new section 159KBB, which requires NZIST’s council to provide the chief executive of the Commission with information for the purpose of determining whether there is a risk to the governance, management, or financial position of NZIST or a related entity of NZIST or to the education and training performance of students enrolled at NZIST or a related entity of NZIST.
Clause 13 replaces section 159L(3)﻿(d), which provides that the Minister may determine the design of funding mechanisms, so that the conditions that must attach to funding provided under a funding mechanism include setting limits on fees that a tertiary education provider may charge employers for supporting their employees’ work-based training.
Clause 14 amends section 159M, which restricts the design of funding mechanisms, to provide an exception to the general rule that the Minister may not identify any specified organisation to which funding is to be provided under a funding mechanism. New section 159M(2) provides that 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.
Clause 15 consequentially amends section 159OA(4), which provides that the Minister is not required to undertake consultation before varying the conditions of a determination under section 159L(3)﻿(d) that set limits on the fees, so that consultation need not be undertaken on any variation of fees that a tertiary education provider may charge employers.
Clause 16 amends section 161, which affirms the academic freedom of institutions, to disapply the provision to NZIST as the matter is covered separately by clause 49, new section 222E, for NZIST.
Clause 17 amends section 162, which provides for the establishment of institutions under the principal Act by Order in Council. The amendments clarify that the provision applies to institutions other than NZIST (namely, colleges of education, specialist colleges, universities, and wananga) and delete references to polytechnics that are no longer required.
Clause 18 consequentially amends section 163, which relates to the constitution of institutions, to reflect the repeal of section 162(1)﻿(c) by clause 17(1).
Clause 19 amends section 164, which provides for the disestablishment of institutions under the principal Act by Order in Council. The amendments clarify that the provision does not apply to NZIST and delete an example relating to polytechnics that is no longer required.
Clause 20 replaces section 165, which provides that institutions are to be governed by councils. New section 165 clarifies that the governing body of NZIST is its members appointed under new section 222G and the governing body of every other institution is its council constituted under Part 15.
Clause 21 amends section 166, which clarifies that an institution is a body corporate and has a common seal, so that the provision covers NZIST and no longer applies to polytechnics.
Clauses 22 to 37 replace various provisions that clarify that certain provisions of Part 15 (which deals with the administration of tertiary institutions) do not apply to designated polytechnics with new provisions that disapply those provisions to NZIST’s council, its constitution, and its members (as the case requires) as the matters being dealt with are covered separately in clause 49, new Part 15A or in new Part 2 of Schedule 13A (which applies certain provisions of the Crown Entities Act 2004 to NZIST’s council).
Clause 38 inserts new section 181(2), which provides that in addition to the general duties of councils of institutions set out in section 181, NZIST’s council must comply with section 97 of the Crown Entities Act 2004, which specifies rules that apply to a Crown entity in respect of its Crown entity subsidiaries.
Clause 39 amends section 182, which requires the council of an institution to establish an academic board to advise it on policy matters relating to courses of study or training, awards, and other academic matters. New section 182(6) provides that section 182 does not apply to NZIST as a particular requirement is imposed separately on NZIST’s council under clause 49, new section 222K.
Clause 40 amends section 193(2)﻿(e) and (ea), which specify the powers of councils under the principal Act, to delete examples in those provisions relating to polytechnics that are no longer required and insert new section 193(2A), which provides that those provisions do not apply to NZIST.
Clause 41 inserts new section 194(1A), which provides that the power of an institution’s council to make statutes under section 194(1)﻿(ia) in relation to the appointment of its members does not apply to NZIST’s council.
Clause 42 replaces section 195, which relates to trust property, so that the provision covers NZIST and its subsidiaries.
Clause 43 amends section 195A, which empowers the Secretary for Education (the Secretary), after consulting an institution’s council, to determine criteria for assessing the level of risk to the operation and long-term viability of an institution. The amendments disapply section 195A to NZIST as criteria for risk assessment of NZIST and its related entities are covered separately in clause 49, new section 222P.
Clause 44 amends section 195B, which requires an institution to provide the chief executive of the Commission with information if the chief executive has reasonable grounds to believe that the institution may be at risk. The amendment disapplies the provision to NZIST as the matter is covered separately for NZIST and its related entities in clause 49, new section 222Q.
Clause 45 amends section 195C, which provides that the Minister may appoint a Crown observer to an institution, to disapply the provision to NZIST as the appointment of a Crown observer is covered separately for NZIST in clause 49, new section 222R.
Clause 46 amends section 195D, which provides that the Minister may dissolve an institution’s council and appoint a commissioner, to disapply the provision to NZIST’s council as the matter is covered separately for NZIST’s council in clause 49, new section 222W.
Clause 47 replaces section 203(3), which provides that the provisions specified in Schedule 4 of the Crown Entities Act 2004 and Schedule 13A of the principal Act apply to tertiary education institutions. The amendment reflects the amendments to the principal Act in Schedule 2 and to the Crown Entities Act 2004 in Schedule 6 that divide the existing schedules into 2 Parts so that Part 1 of each schedule sets out provisions that apply to all tertiary education institutions and their Crown entity subsidiaries and Part 2 of each schedule sets out additional provisions that apply only to NZIST.
Clause 48 amends section 222, which relates to delegations by councils, to disapply the provision to NZIST’s council.
Clause 49 replaces Part 15A, which contains special provisions relating to polytechnics, with a new Part 15A (new sections 222A to 222ZC) that sets out special provisions relating to NZIST and its council.
New section 222A establishes NZIST as a tertiary education institution alongside universities and wananga and enables its name to be changed by Order in Council made on the recommendation of the Minister.
New section 222B confers functions on NZIST that reflect its leadership role in the vocational education and training sector.
New section 222C requires NZIST to give effect to its charter (as set out in new Schedule 22) and to report, in its annual report, on how it has given effect to the charter. New section 222C(3) clarifies that NZIST’s accountability for giving effect to the charter is owed to the Minister.
New section 222D provides that the Minister may specify administrative regions for NZIST.
New section 222E affirms the academic freedom of NZIST.
New section 222F requires NZIST to establish regional divisions for the purposes of appointing members to its staff committee and students’ committee and appointing directors to its subsidiaries.
New section 222G relates to NZIST’s council. It provides that the council must have at least 8, but not more than 12, members, including 1 person who must be elected by the regional representatives of its staff committee, 1 person who must be elected by the regional representatives of its students’ committee, and 1 person who must be elected by its Māori advisory committee. The rest of the members are to be appointed by the Minister.
New section 222H sets out criteria that the Minister must have regard to when appointing members to NZIST’s council. These include the need to have regard to the principle that it is desirable that council membership should, as far as possible, reflect the ethnic, gender, and socio-economic diversity, and the diversity of abilities, of New Zealand’s population and the fact that New Zealand is made up of a number of regions.
New section 222I provides that the Minister may appoint a chairperson and deputy chairperson of the council.
New section 222J states the term of office of NZIST’s council members.
New section 222K relates to the determination of policy by NZIST’s council and provides that NZIST’s council 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, NZIST’s policy on the matter.
New section 222L provides that NZIST’s council must establish 3 advisory committees, being a staff committee, a students’ committee, and a Māori advisory committee, and requires NZIST’s council to consult the committees on significant matters relating to NZIST’s strategic direction.
New section 222M sets out the criteria for appointment of members to committees under new section 222L.
New section 222N imposes a specific requirement on NZIST to obtain the written consent of the Secretary for capital projects of NZIST or an NZIST subsidiary that are not within a capital plan approved by the Secretary or that meet or exceed any thresholds for capital projects published by the Secretary on the Ministry of Education’s Internet site.
New section 222O provides that an NZIST subsidiary may not exercise any of the powers listed in section 192(4) of the principal Act (which include the power to sell or dispose of assets and to borrow) unless NZIST has obtained the consent of the Secretary.
New sections 222P to 222X provide for the exercise of statutory interventions by the Minister or the chief executive of the Commission at graduated levels of risk to NZIST or a related entity of NZIST, including (as applicable) risk related to the education and training performance of students enrolled at NZIST or a related entity of NZIST. The interventions include—
the appointment of a Crown observer (new section 222R):
a requirement to obtain specialist help (new section 222S):
a requirement to prepare a performance improvement plan (new section 222T):
the appointment of a Crown manager (new section 222U):
the ability of the Minister to dissolve NZIST’s council and appoint a commissioner (new section 222W).
New section 222Y provides that certain additional provisions of the Crown Entities Act 2004 specified in new Part 2 of Schedule 4 of that Act (and that are mirrored in new Part 2 of Schedule 13A of the principal Act) apply to NZIST’s council and its members.
New section 222Z clarifies that NZIST may form 1 or more NZIST subsidiaries (additional to those established by new clause 27 of Schedule 1) if NZIST has obtained the written approval of the Minister. New section 222Z(2) empowers the Governor-General by Order in Council made on the recommendation of the Minister to disapply specified provisions of the principal Act to any newly formed NZIST subsidiary that does not provide education and training.
New section 222ZA states the duration of NZIST subsidiaries established under new clause 27 of Schedule 1. An NZIST subsidiary continues in existence until the close of 31 December 2022. However, the Governor-General may, by Order in Council made on the recommendation of the Minister, extend the duration of any particular subsidiary or all subsidiaries to a date specified in the order.
New section 222ZB provides for the dissolution of NZIST subsidiaries by NZIST’s council.
New section 222ZC provides that the provisions set out in new Schedule 23 apply on the dissolution of an NZIST subsidiary.
Clause 50 amends section 234A, which relates to fees for domestic students and provides that a registered training establishment must not fix tuition fees that exceed the maximum set in its conditions of funding by the Commission, to expand the provision to cover fees payable by employers.
Clause 51 inserts new section 246A(1)﻿(da) and (db), which confers additional functions on the New Zealand Qualifications Authority (NZQA) in relation to monitoring workforce development councils.
Clause 52 amends section 248B, which provides that NZQA may approve standard-setting bodies. New section 248B(1)﻿(a) provides that a workforce development council may be approved as a standard-setting body.
Clause 53 amends section 249, which provides that institutions may apply to NZQA for the approval of programmes. The amendment deletes the reference to an industry training organisation in the definition of institution in section 249(1).
Clause 54 repeals section 250(6)﻿(b), which provides that the restriction on an institution offering or providing an approved programme unless it is accredited by NZQA does not apply to any workplace training components of a programme.
Clauses 55 and 56 amend sections 251 and 252, which provide that an institution may apply to NZQA for approval of a training scheme and consent to assess against standards, to delete references to industry training organisations.
Clause 57 amends section 253, which provides that NZQA may make rules relating to various matters. The amendments replace section 253(1)﻿(ga) and (gb), which provide that NZQA may make rules relating to fees and prescribing quality assurance requirements for industry training organisations. New section 253(1)﻿(ga) and (gb) provides that NZQA may make rules on those matters for workforce development councils.
Clause 58 amends section 253C, which provides that the Minister may consent to the use of certain terms in the name or description of a registered establishment or wananga, to remove its application to polytechnics and institutes of technology.
Clauses 59 to 61 amend sections 254, 254A, and 255, which provide that NZQA may charge an institution fees, obtain information from institutions, and issue compliance notices to institutions, to apply the provisions to workforce development councils.
Clause 62 replaces section 292(c) and (d), which provide that it is an offence to use the term polytechnic to describe an educational establishment or facility, so that the provisions do not apply to NZIST or its subsidiaries.
Clause 63 consequentially repeals section 299A, which is a spent transitional provision relating to councils of tertiary institutions.
Clause 64 amends section 321(2), which relates to grants to educational bodies, to replace the reference to an industry training organisation with a reference to a workforce development council.
Clause 65 inserts new Part 34 (new sections 477 to 523), which deals with work-based training (including apprenticeships) and provides for workforce development councils to be established for 1 or more specified industries.
New section 477 defines terms used in new Part 34. Some of the definitions carry over terms defined in the ITAA in relation to apprenticeships.
New section 478 carries over section 3 of the ITAA, which clarifies that a training contract and an apprenticeship agreement are part of the employment agreement between the employee and employer concerned.
New subpart 1 (new sections 479 to 488) provides for the establishment (and disestablishment) of workforce development councils by Order in Council made on the recommendation of the Minister and states the functions and obligations of workforce development councils. New sections 487 and 488 deal with the accountability of workforce development councils and provide that NZQA may issue a workforce development council with a quality assurance improvement notice and a compliance notice.
New subpart 2 (new sections 489 to 495) deals with apprenticeship training. The provisions transfer the content of Part 2A of the ITAA into the principal Act with some minor adjustment.
New subpart 3 (new sections 496 to 523) provides for a training levy to be imposed by Order in Council on qualifying members of a levy group that is payable to the relevant workforce development council for the levy group. The provisions transfer the content of Part 5 of the ITAA into the principal Act with some adjustment to reflect the new role of workforce development councils in performing the functions currently performed by industry training organisations. New Schedule 24 states matters that must be specified in levy orders.
Clause 66 amends Schedule 1, which contains transitional, savings, and related provisions, to insert new Part 9 (new clauses 26 to 57) as set out in Schedule 1 of the Bill, which sets out the transitional arrangements arising from the reforms made by the Bill.
New clause 26 defines terms used in new Part 9 of Schedule 1.
New subpart 1 (new clauses 27 to 40) deals with transitional matters arising from the establishment of NZIST and the replacement of polytechnics.
New clause 27 provides that on and after the commencement date (1 April 2020), every polytechnic previously established or deemed to have been established under the principal Act becomes a Crown entity subsidiary of NZIST and all the rights, assets, liabilities, and debts of the existing polytechnic become those of its corresponding NZIST subsidiary.
New clause 28 provides for the initial directors of NZIST subsidiaries.
New clause 29 applies and disapplies various provisions of the principal Act to NZIST subsidiaries.
New clause 30 clarifies that an NZIST subsidiary is an organisation, a provider, and an institution for the purposes of the principal Act.
New clause 31 provides that every member of an existing polytechnic’s council ceases to hold office at the close of the day before the commencement date.
New clause 32 deals with the transfer of rights, assets, and liabilities of an existing polytechnic and provides that they vest in the polytechnic’s corresponding NZIST subsidiary.
New clause 33 deals with the transfer of an existing polytechnic’s employees and provides that they become employees of the polytechnic’s corresponding NZIST subsidiary.
New clause 34 deals with superannuation entitlements of persons who, immediately before becoming an employee of an NZIST subsidiary, were contributors to the Government Superannuation Fund.
New clause 35 deals with the transfer of students enrolled at an existing polytechnic immediately before the commencement date and provides that they must be treated as having been enrolled in the polytechnic’s corresponding subsidiary.
New clause 36 deals with approvals, accreditations, and consents to assess against standards granted by NZQA to an existing polytechnic under the principal Act and in effect immediately before the commencement date and provides that these continue to apply as if they had been granted to the polytechnic’s corresponding NZIST subsidiary.
New clause 37 deals with funding approvals granted to an existing polytechnic by the Commission and in effect immediately before the commencement date and provides that the approval continues to apply as if it had been granted to the polytechnic’s corresponding NZIST subsidiary.
New clause 38 deals with the transfer of any legal proceedings and the completion of other matters.
New clause 39 requires an NZIST subsidiary to provide the Minister with a final report on its former polytechnic.
New clause 40 validates the appointment by the Minister of members of NZIST’s council if the actions or processes taken by the Minister in appointing the member substantially comply with the provisions of the principal Act (as amended by the Bill).
New subpart 2 (new clauses 41 to 56) deals with transitional arrangements relating to the replacement of industry training organisations by workforce development councils.
New clause 41 defines terms used in new subpart 2.
New clause 42 states that the transitional arrangements apply during the transition period (as defined in new clause 26).
New clause 43 provides for the recognition of former industry training organisations (former ITOs) and new entities as transitional industry training organisations (transitional ITOs) during the transition period.
New clause 44 states the effect of recognition of as a transitional ITO.
New clauses 45 and 46 allow the Minister to impose conditions on the recognition of a transitional ITO and to change the specified industries covered by a transitional ITO.
New clause 47 provides that certain provisions in Part 2 and all of Parts 2A and 5 of the ITAA apply to a transitional ITO during the transition period (as if that Act had not been repealed by the Bill).
New clause 48 deals with approvals and consents to assess against standards granted to a former ITO by NZQA and provides that they must be treated as if they had been granted to the transitional ITO that corresponds with the former ITO.
New clauses 49 and 50 provide that a transitional ITO is an organisation within the meaning of section 159B of the principal Act and a standard-setting body for the purposes of section 248B of the principal Act during the transition period.
New clause 51 requires a transitional ITO to develop a transition plan for approval by the Commission that provides for the transfer of responsibility of the activities it is carrying out during the transition period to workforce development councils or providers (as the case may be).
New clause 52 provides that the Minister may, during the transition period, direct funding to a provider of work-based training despite the restriction in section 159M of the principal Act.
New clause 53 provides that the Minister may cancel the recognition of a transitional ITO during the transition period.
New clause 54 provides that the recognition of any transitional ITO in existence at the end of the transition period lapses at the end of that period.
New clause 55 deals with the allocation of assets of a transitional ITO and provides that those assets may be allocated to any 1 or more workforce development councils to which the activities of the transitional ITO have been transferred in accordance with its transition plan.
New clause 56 provides that no compensation is payable to an employee of a transitional ITO for technical redundancy.
Subpart 3 (new clause 57) empowers the making of transitional regulations for the purposes of facilitating or ensuring the orderliness of the transition of the amendments made to the principal Act by the Bill or ensuring that existing rights or obligations continue as part of, or despite, that transition (or both).
Clause 67 amends Schedule 13A, which lists the provisions of the Crown Entities Act 2004 that apply to tertiary education institutions. As mentioned, the amendments divide the existing schedule into 2 Parts and include, in new Part 2 (as set out in Schedule 2 of the Bill), some additional provisions of that Act that apply only to NZIST.
Clause 68 repeals Schedule 19, which contains spent transitional and savings provisions relating to councils of tertiary institutions.
Clause 69 inserts new Schedules 22 to 24 (as set out in Schedules 3 to 5 of the Bill) as follows:
new Schedule 22 sets out the text of NZIST’s charter, which NZIST must give effect to and report on:
new Schedule 23 sets out transitional and savings provisions that apply on the dissolution of an NZIST subsidiary:
new Schedule 24 transfers the content of Schedule 4 of the ITAA (which specifies matters that must be included levy orders) into the principal Act, with some adjustment to reflect the new role of workforce development councils in relation to levy orders.
Part 2Repeals, revocations, and other amendments
Clause 70 repeals the ITAA.
Clause 71 consequentially repeals the Education (Polytechnics) Amendment Act 2009.
Clause 72 consequentially revokes 3 Orders in Council made under the principal Act disestablishing certain polytechnics and incorporating them into other polytechnics.
Clause 73 consequentially amends other enactments as set out in Schedule 6.
222N NZIST and NZIST subsidiary must obtain consent for certain capital projects
222ZA Duration of NZIST subsidiaries
222ZB NZIST council may dissolve NZIST subsidiary
478 Training contracts and apprenticeship training agreements part of employment agreement
485 Obligations of workforce development councils
491 Obligations of persons carrying out apprenticeship training activities
69 New Schedules 22 to 24 inserted
NZIST (including, as the case requires, its subsidiaries); or
to monitor the performance of persons carrying out apprenticeship training activities (whether under a plan or a funding agreement) to ensure that they comply with the apprenticeship training code; and
have regard to advice from a workforce development council in relation to its specified industries in 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
any capacity or capability constraints of providers to provide, arrange, and support the mix of vocational education and training.
The Commission must advise a workforce development council, in writing, if it is unable to give effect to the 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—
the conduct of the workforce development council’s functions:
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 the operation of NZIST or any related entity of NZIST for the purpose of determining whether there is a risk to, or arising from,—
tertiary education providers may charge employers for supporting their employees’ work-based training; and
In section 159M(b), after “students” , insert “or that tertiary education providers may charge employers” .
In section 159OA(4), after “students” , insert “and that tertiary education providers may charge employers” .
The governing body of NZIST is its council members appointed under section 222G.
to provide or arrange, and support, a range of education and training and conduct applied research:
to improve outcomes in the tertiary education system as a whole, including (without limitation) by making connections with schools and other organisations involved in tertiary education:
The Minister may, by notice in the Gazette, specify administrative regions for the purposes of aligning with the regions as specified by the Government.
However, nothing in subsection (2) limits or affects a workforce development council carrying out its relevant functions.
NZIST’s academic freedom also applies in relation to NZIST subsidiaries that provide education and training.
1 member must be a person who is elected by the regional representatives of its staff committee; and
1 member must be a person who is elected by the regional representatives of its students’ committee; and
1 member must be a person who is elected by its Māori advisory committee; and
the person has at any time been removed from office as a member of the council.
a vacancy or vacancies in the membership of the council or committee.
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 committee.
The Minister may appoint a chairperson and deputy chairperson of NZIST’s council from among its members by giving written notice to the member concerned stating the term for which the member is appointed.
For the purposes of subsection (1), NZIST’s council must establish an academic board consisting of its chief executive and members of the staff and students of NZIST to—
each committee consists of persons representing a minimum of each substantial regional division of NZIST; and
NZIST must obtain the written consent of the Secretary for any capital project of NZIST or an NZIST subsidiary—
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.
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.
An NZIST subsidiary must not exercise any of the powers in section 192(4) unless—
A council that receives a notice under subsection (1) must provide the chief executive of the Commission with the required information within the period specified in the notice.
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
The Governor-General may, by Order in Council made on the recommendation of the Minister, specify provisions of this Act that do not apply to an NZIST subsidiary formed under subsection (1) that does not provide education and training.
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.
However, the Governor-General may, by Order in Council made on the recommendation of the Minister, extend the date on which any particular NZIST subsidiary 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—
consistent with the NZIST’s responsibilities under the charter set out in Schedule 22; and
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.
Schedule 23 applies if an NZIST subsidiary is dissolved under section 222ZA(1) or in accordance with section 222ZB.
a workforce development council established in accordance with section 479; and
Part 34 Work-based training
provider includes—
a government training establishment, a registered establishment, and a wananga within the meaning of those terms in section 159(1)
training contract has the same meaning as in section 159(1)
Training contracts and apprenticeship training agreements are part of the employment agreement between the employee and employer concerned.
set out the governance arrangements for the workforce development council, including arrangements relating to the appointment, composition, 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).
the collective representation of employees in the governance of the council; and
The Minister must not recommend the disestablishment of a workforce development council under subsection (1) unless the Minister—
has received a request from 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
reasonably considers that there has been a consistent failure by the workforce development council to carry out any 1 or more of its functions.
to provide skills 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 maintain industry qualifications for listing on the Qualifications Framework:
to develop and set capstone assessments based on the needs of their specified industries:
to advise the Commission about its overall investment in vocational education 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:
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.
A workforce development council must not operate or hold any interest in a registered establishment.
In performing its functions, a workforce development council must have regard to the needs of Māori and other population groups identified in the tertiary education strategy issued under section 159AA.
specify the time within which the workforce development council is expected to address the Qualification Authority’s concerns (which must be a reasonable time, having regard to the nature and complexity of the action required); and
employers able to offer apprenticeship training:
Persons carrying out apprenticeship training activities (whether via a plan or under a funding agreement) must,—
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 provider must make reasonable endeavours to find a new employer with whom the apprentice can complete their training.
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.
In Schedule 1, after Part 8, insert the Part 9 set out in Schedule 1 of this Act.
Schedule 1 New Part 9 inserted into Schedule 1
Part 9 Provisions relating to Education (Vocational Education and Training Reform) Amendment Act 2019
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 existence immediately before that date
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.
Conversion of polytechnics to NZIST subsidiaries
27 Polytechnics converted to NZIST subsidiaries
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:
the Registrar of Companies must, on the commencement date, issue a certificate of registration for the company; and
100 shares must be treated as having been issued to the NZIST subsidiary.
The certificate of registration is conclusive evidence that the NZIST subsidiary was, on and after the commencement date, registered as a company under the Companies Act 1993.
Eastern Institute of Technology (Te Aho a Māui) Eastern Institute of Technology (Te Aho a Māui) Limited
Consequences of conversion of polytechnics to NZIST subsidiaries
28 Initial directors of NZIST subsidiary
The initial directors of an NZIST subsidiary must comprise at least 4, but not more than 6, 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 NZIST subsidiary predominately operates.
29 Application of provisions of this Act to NZIST subsidiary
The following provisions of this Act apply to an NZIST subsidiary with all necessary modifications:
section 214 (resumption of Wahi Tapu).
The following provisions of this Act do not apply to an NZIST subsidiary:
section 201 (proper accounts to be kept):
30 NZIST subsidiary is organisation, provider, and institution for purposes of Act
On and after the commencement date, each NZIST subsidiary is to be treated,—
until 31 December 2022, as an organisation within the meaning of section 159B(1), and the provisions of this Act relating to an organisation 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 provisions 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 accordingly as if those provisions included a reference to the NZIST subsidiary.
For the purposes of subclause (1)﻿(a), the Commission may consider a proposed plan of an NZIST subsidiary and fund that subsidiary for an academic year beginning on or after 1 January 2021 only if requested by NZIST.
31 Members of polytechnic council cease to hold office
32 Transfer of rights, assets, and liabilities
unless the context otherwise requires, every reference to the existing polytechnic in any instrument, agreement, deed, lease, application, notice, or other document before the commencement date must be read as a reference to the polytechnic’s corresponding NZIST subsidiary.
33 Transfer of employees
On and after the commencement date, every employee of an existing polytechnic becomes an employee (a transferred employee) of the polytechnic’s corresponding NZIST subsidiary on the same terms and conditions that applied to the person immediately before they became an employee of the corresponding NZIST subsidiary.
For the purposes of every enactment, law, determination, contract, and agreement relating to the employment of the transferred employee,—
the employee’s period of service with the existing polytechnic, and every other period of service of that 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.
To avoid doubt, the employment of a transferred employee by a polytechnic’s corresponding NZIST subsidiary does not constitute new employment for the purposes of any service-related benefits, whether legislative or otherwise.
A transferred employee 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 subsidiary.
34 Government Superannuation Fund
This clause applies to a person who, immediately before becoming an employee of an NZIST subsidiary, was a contributor to the Government Superannuation Fund under Part 2 or 2A of the Government Superannuation Fund Act 1956.
35 Transfer of students
A student who would, but for the conversion of the existing polytechnic into an NZIST subsidiary, have been entitled to be granted an award of the existing polytechnic is entitled to be granted a like award of the corresponding NZIST subsidiary.
36 Existing Qualification Authority approvals, accreditations, and consents
This clause applies to an approval granted to an existing polytechnic by the Commission under section 159YA(2) before the commencement date and in effect immediately before that date.
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
38 Existing proceedings and other matters
39 Final report of former 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.
Subpart 2—Transitional arrangements for work-based training
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
a body corporate that is recognised by the Minister under clause 43(b)
workforce development council means a workforce development council established under section 479 (as inserted by section 65 of the amendment Act)
42 Application of clauses 43 to 56
Clauses 43 to 56 apply during the transition period.
43 Recognition of transitional ITOs
44 Effect of recognition
A transitional ITO recognised under clause 43(a)—
A transitional ITO recognised under clause 43(b)—
developing and maintaining skill standards to be listed on the Directory of Assessment Standards; and
45 Minister may impose conditions on recognition of transitional ITO
The Minister may, by written notice to a transitional ITO, impose any conditions on that recognition that the Minister considers are reasonably necessary—
46 Minister may change specified industries or activities of transitional ITO
47 Application of provisions of 1992 Act to transitional ITO
48 Existing approvals and consents granted to former ITO
49 Transitional ITO is organisation
50 Transitional ITO is approved standard-setting body
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.
51 Transitional ITOs must develop transition plan
Every transitional ITO must—
develop a transition plan for approval by the Commission that provides for the transfer of responsibility for—
the activity described in clause 44(3)﻿(a) to any 1 or more workforce development councils:
the activities described in clause 44(3)﻿(b) and (c) to any 1 or more providers specified by the Commission; and
support providers specified by the Commission in transferring the responsibility for the activities described in clause 44(3)﻿(b) and (c).
52 Minister may direct funding to provider for work-based training
Despite section 159M(1), the Minister may direct that funding be provided to a provider of work-based training if the Minister believes it is reasonably necessary for facilitating or ensuring the successful transfer of responsibility for the activities referred to in clause 44(3)﻿(b) and (c).
53 Cancellation of recognition of transitional ITO
is no longer responsible for carrying out any of the activities referred to in clause 44(3); or
54 Recognition lapses at end of transition period
55 Allocation of assets of transitional ITO
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.
Subpart 3—Transitional regulations
57 Transitional regulations
Sections 127 and 128 Method of contracting and seal
The New Zealand Institute of Skills and Technology (NZIST) exists to provide, arrange, and support a range of education and training in the workplace and in formalised learning environments using a variety of delivery methods.
industry across the country, including Māori and Pacific employers; and
hold inclusivity as a core principle, recognising and valuing the diversity of all of its learners, and providing the unique types of support different learners need to succeed; and
work collaboratively with schools, wānanga, and other tertiary education organisations to improve the outcomes of the education system as a whole.
learning pathways provide learners with a range of opportunities to progress to higher levels of education and training; and
dissolution date, in relation to an NZIST subsidiary, means—
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 resolution of NZIST’s council under section 222ZB
NZIST subsidiary means a Crown entity subsidiary of NZIST listed in the second column of the table in clause 27(3) of Schedule 1
Neither the Crown nor the NZIST subsidiary is liable to make a payment to, or otherwise compensate, a person referred to in subclause (1) for the loss of office.
An employee who is identified under subsection (1) must be offered equivalent employment by NZIST, being employment that is—
An employee of an NZIST subsidiary 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.
7 Transfer of students to NZIST
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 159YA(2) before the dissolution date and in effect immediately before that date.
11 Final report of dissolved subsidiary
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.
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 gaining access to any information, data, programme, intellectual property right knowledge, chattel, equipment, transmission device, or facility of the claimant or any other person.
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 in addition to the provisions referred to in subsection (1).