- Hon Penny Simmonds
Legislation to disestablish New Zealand's centralised vocational education and training system has passed its first reading in Parliament, Vocational Education and Training Minister Penny Simmonds says.
"Today, we've taken a major step forward toward a vocational education and training system that works for learners, employers, industries and local communities," Ms Simmonds says.
"The Bill, which has passed its first reading, will return decision-making to where it belongs - in the hands of regional polytechnics and industry.
"This is a commonsense reset that ensures polytechnic education and training is responsive to regional needs and work-based learning for apprentices and trainees is led by the industries that rely on it."
The Education and Training (Vocational Education and Training System) Amendment Bill proposes a structural reset of vocational education, focusing on two key priorities: restoring local decision-making for polytechnics, and giving industry greater leadership in standard setting and work-based learning.
Among the key changes in the Bill are:
- Disestablishing Te Pūkenga and creating a network of regional polytechnics, which will operate as standalone institutions or within a federation. Te Pūkenga will remain as a transitional entity for one year to manage unallocated programmes and activities.
- Replacing Workforce Development Councils with new Industry Skills Boards, effective 1 January 2026. These statutory bodies will be governed primarily by industry representatives and responsible for setting standards, undertaking workforce planning, and advising the Tertiary Education Commission on relevant funding matters.
- Transferring work-based learning functions from Te Pūkenga to Industry Skills Boards for up to two years, allowing time for new delivery arrangements across polytechnics, private training establishments, and Wānanga to be developed.
- Amending training levy provisions to enable Industry Skills Boards to levy industry members, subject to industry support.
Ms Simmonds says implementation will take up to two years, with the first group of polytechnics and new Industry Skills Boards in place from 1 January 2026.
"Industry knows the skills it needs. That's why we're putting them back in charge of standard setting and qualification development for their industry," Ms Simmonds says.
"This is about building a stronger, more relevant system - one that sets our people and our economy up for future success.
"We look forward to hearing what New Zealanders think during the select committee process so that we can get on with the changes."
