Explanatory note

This Supplementary Order Paper amends the Industry Training and Apprenticeships Amendment Bill to reinstate the skills leadership function of Industry Training Organisations (ITOs) that currently exists in the Industry Training Act 1992. The Bill has removed this legislated skills leadership function and leaves it to ITOs to decide whether they continue with skills leadership activity. The Bill focuses ITOs on just 2 core functions; setting skill standards for their industries and arranging training. The removal of the statutory skills leadership role of ITOs will not support the Bill’s purpose of improving industry training. There is no assurance that the Ministry for Business, Innovation and Employment or any other agency is prepared to take up such a role, despite it being essential. ITOs may continue to be skills leaders for their industries, but this role is essential to their core business and the legislation should reflect that.

This Supplementary Order Paper also amends the Bill by deleting new section 11A which provides that persons other than industry training organisations may receive funding for industry training by allowing organisations to enter into funding agreements with Government undermines the purpose of industry training, which is to provide generic and specific skills and knowledge that are applicable beyond a particular business. New section 11A unnecessarily spreads the pool of funding for the sector, and makes it more difficult to ensure a coordinated approach to vocational education and training.