Collision Repair Association
Submission to the Education and Science Committee on the Industry Training and
Apprenticeships Amendment Bill
Executive Summary
The industry training system is based on the premise that industry training will meet both
current and future skill needs. This requires a system that is owned and lead by industry
for industry.
ITOs are the industry mechanism by developing and facilitating structured industry
training and enabling trade training to take place in a formalized setting. We are proud of
our trade training system and our ability to take a leadership role.
ITOs are accountable to central government bodies for the funding they receive. They
also play a significant role in ensuring our trade training meets the quality assurance
framework for New Zealand qualifications to ensure they remain current, nationally and
internationally recognised.
The Collision Repair Association (CRA) is concerned that the Bill proposes to extend
powers of both the Minister and New Zealand Qualifications Authority that would
significantly reduce the ability of industry to take a leadership role in the governance of
our ITOs and potentially impose additional requirements on ITOs that may not always be
in the interests of the industries that they serve. We believe that the new section 13B(a)
be amended accordingly to remove ‘governance’ as a central part of the central
government’s role.
We also believe that section 11A be removed from the Bill as this provides a risk
undermining what industry training stands for. That is training that operates to a national
footprint.
Introduction
The Collision Repair Association’s membership includes qualified panelbeaters and auto
refinish painters and all other car collision repair tradesman and allied businesses.
Membership currently stands at around 550 (including 100 Associated members), and is
continually increasing. Customers can identify association members and be assured of a
high standard of workmanship, by the CRA logo which will be found displayed on
members’ premises. CRA – The benchmark for quality for over 100 years.
Founded in 1913, formerly known as the NZ Motor Body Builders’ Assn, the Association
changed its name in 1998 to better reflect progress in the trade. The Association aims to
provide quality and safety assurance to customers by assuring its member’s work meets
its own high standards. The NZ Collision Repair Association is ISO 9001 certified.
The collision repair industry has a high performing ITO that serves the interests of
industry training exceptional well. We believe that the proposed changes in the Bill has
the real potential to significantly reduce the involvement of industry in our leadership role
within the industry training sector. Government’s role is to support this and we believe
there are sufficient mechanisms built into the funding arrangements to address
Government priorities or concerns over performance.
Detailed submissions
Purpose
The CRA supports the main purpose of the Act which will provide for the recognition and
funding of ITOs, encourage and improve industry training (including apprenticeship
training); and encourage increased participation in apprenticeship training.
We also support the raising of the age to support jobseekers aged 22 and over to seek
out apprenticeship opportunities. This supports the age profile of the motor industry.
The Bill proposes the statutory removal of the skills leadership role for ITOs. We believe
ITOs play an important role and will continue to provide skills leadership activity.
With the removal of this role it places the responsibility on Government to take a lead
and we would need to be confident as an Industry Association adequate resources are
allocated and that industry would continue to be a key part of that leadership role.
Functions and powers of the NZQA in relation to ITOs
The CRA does not support the increase in NZQA powers as it relates to ITOs. ITOs are
owned and lead by industry. We believe there are sufficient mechanisms available to
NZQA already to address any quality assurance concerns. We do not believe a central
government agency has any role in the governance of industry organisations as industry
itself is responsible in determining the leadership and governance structures of our
organisations.
Industry contributes significantly to the ITO, both financially and in-kind. Funding
arrangements with Government are separate and contractual by their very nature.
We strongly support an effective quality assurance framework for ITOs and industry
training. We believe that operational policies are a more effective mechanism to achieve
these objectives. By increasing the legislative powers of Central Government
significantly reduces industry to effectively lead our own organisations.
We note that the Bill proposes that there will be compulsory charges for ITOs. We do not
believe this is appropriate as we don’t believe that additional quality assurance powers
are necessary or required for the reasons stated above.
ITO recognition and re-recognition process
The Bill proposes increased discretion by the Minister to impose conditions of
recognition on ITOs and an increased power for NZQA.
We hold serious concerns that the Bill is proposing fundamental changes to our industry
lead approach to industry training. ITOs are there to serve the needs of industry. These
changes would significantly place this at risk to the industry lead premise of our training
system. We do not support those changes proposed in the Bill.
It is important that an industry training system remains industry-governed and driven by
industry. ITOs are recognised as national industry sector organisations with statutory
standard-setting responsibilities in the national qualifications system and a statutory
function to arrange and support industry training in specified industries, all over New
Zealand. The vast majority of small and medium-sized businesses (SMEs) would not be
able to participate in apprenticeships and industry training without the support of an ITO.
Direct Access Funding
We believe the new section 11A allowing other organisations to access funding set aside
directly for industry training seeks to undermine the industry training system.
The Government has other funding mechanisms that will allow them to fund
organisations it seeks to enter into agreements with. We believe legislating this is an
unnecessary as it potentially creates a long term commitment for the Government to
fund those arrangements.
The direct access funding system also undermines industry training by removing the ITO
who has the industry mandate to set standards and ensure a national footprint to the
provision of qualifications within a workplace setting.
Recommendations
The CRA recommends to the Committee that the following changes be made to the
Industry Training and Apprenticeships Amendment Bill:

the proposed scope of NZQA’s quality assurance requirements for ITOs should
exclude ‘governance’ and that new section 13B (a) be amended accordingly;

the proposed annual fee be removed;

new section 11A should be removed from the Bill, and

new subsection 13C (d)(ii) be removed, along with other associated references to
non-ITO organisations carrying out apprenticeship training activities.
Oral Submission
I am happy to make an oral submission to the committee