Let’s Think Bigger On Apprenticeship Boost

Thanks for the stability, but let’s have the real debate about how industry training is funded – because employers need more support to reduce our reliance on migration.

That’s the message from the Motor Trade Association (MTA) following the Government’s announcement of an extension of the Apprenticeship Boost scheme for selected industries.

MTA Chief Executive Lee Marshall says while it’s pleasing to see the automotive sector is still eligible for the $500 a month subsidy, it betrays a lack of acknowledgement of the costs employers incur in industry training.

“It’s welcome, and every bit helps, but five hundred bucks a month is detached from reality,” Mr Marshall says.

“One MTA member in the collision repair sector told us taking on a three-year apprentice costs them up to $90,000 in lost productivity and other costs. That would be replicated across other sectors.

“So, these employers are digging into their pockets to the tune of up $70,000 to take on an apprentice, at a time when many are already under financial pressure.”

Mr Marshall says the automotive industry wants to hire New Zealanders for roles and strongly supports industry training.

“And sure, the employer accepts they should carry a cost. But what they get from Government and what they fund themselves is both imbalanced and unacknowledged. If employers can’t afford to take on apprentices, they’ll search for qualified technicians overseas - simple as that.

“Let’s make the next discussion not just about the industries that are eligible, but what does a meaningful contribution from Government look like. That’s the approach that’s taken in Australia, where fewer industries are assisted by up to $20,000 – a far more realistic amount.”

MTA recently assembled and led a taskforce of 20 industry organisations to present to Government a blueprint for industry-led automotive training that includes greater financial support for employers.

It’s only under such a structure that learners can get the right training and career pathways, businesses get skilled and trained new staff, and all New Zealanders get a robust, efficient and future-facing automotive sector, Mr Marshall says.

“In some way, everyone relies on a robust automotive and transport industry,” he says.

“If not enough Kiwis are signing up to join the industry it flows through to everyone – longer waits for repairs, maintenance and service, increased prices for lack of capacity, or businesses forced into closure because of the staff shortage.

“Government must give the industry the support it needs – and one key way is to target increases in Apprenticeship Boost to industries in need.”

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