Auckland Regional Economic Development Strategy Skills Assessment Project

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Auckland Regional Economic

Development Strategy

Skills Assessment

Project

TrainWork 021 996149

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Paul Chalmers, Erling Rasmussen May 2002


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1. Executive Summary

2. Economic prosperity and vocational education

3. Trends

3.1. Student Participation Rates

3.2. Skills Forecast

3.3. Skills Shortage

3.4. Qualification Trends

4. Purchaser and Provider Overview

4.1. Tertiary Education Reforms

4.2. Skill NZ

4.3. Ministry of Social Development (WINZ)

4.4. Careers Service – rapuara

4.5. Industry Training Organisations

4.6. New Zealand Qualifications Authority

4.7. Secondary Schools

4.8. Tertiary Educational Institutions

4.9. Private Training Establishment

4.10. Other Government Departments

4.11. Other Tertiary Education Providers

4.12. Local Authorities

4.13. Community Education

4.14. Export Education and Migrant Education

5. Business Issues

6. Maori Issues


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Executive SummaryFunding for Tertiary Education exceeds $1.6B across a range

of public and private institutions via a variety of

government agencies.

There are concerns that the sector may not be effectively

addressing the needs of an economy struggling to maintain

its standard of living in a competitive global environment.

While New Zealand governments have embarked on a largely

fruitless search for the free market over the past 20 or so

years, there is now a significant lobby throughout both the

business and educational sectors for a more hands on

strategic approach to this tertiary education.

The Government has responded by introducing the Tertiary

Reform Bill designed to bring reintroduce a planning

approach to the tertiary development. The Bill will attempt

ensure via Charters, Profiles and Desirability Tests that

national educational goals are firmly the focus of both

funders and providers.

Universities and other providers will be encouraged to

collaborate on cluster development rather than pursue

individual objectives in order to compete.


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The sector trends show an increasing population heading to

the tertiary sector in their first steps beyond secondary

school. More are heading towards Private Training

Establishments rather than the Tertiary Education

Institutions than in the past although the TEIs still

dominate the market.

Students are increasingly graduating with certificate and

diplomas in the social sciences and business and commercial

fields.

The interface between work and secondary education requires

a serious review including a long term re-evaluation of the

effectiveness of the current curriculum to address the

vocational needs of students. The school leaver interface

also needs serious attention with less than effective

funding of transition education, careers advice and STAR

programmes.

Funding of the Secondary sector is a major issue.


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Maori and Pacific students are increasingly heading towards

the tertiary sector but are not heading in that direction as

quickly as their European counterparts. They are also less

likely to take degree qualifications than their European

counterparts.

Business, despite being warned of an impending skill

shortages as a result of a hands off Government approach in

the 80s and 90s, has become increasingly interested in

improving the supply of skills throughout the region. There

has been a mixed response to questions as to the extent of

the skills shortage with a number of larger recruitment

agencies being divided. The shortage seems to be specific

to a range of industries and not an issue in others.

Export Education, is a booming business with considerable

increases in the numbers of students coming into the

country. The Government, concerned at the potential for

quality issues to impede the development of this sector, has

introduced a code of practice for providers and a tax aimed

a developing a joint marketing approach to this industry.


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The National Qualifications Framework is not well understood

by industry and has suffered a laboured introduction. There

are still a number of technical problems with the Framework

and these need to be addressed to present an competency

model that is easy to use.

Industry Training Organisitions are reducing in number but

there are still 46. Their effectiveness is improving in a

number of areas with mixed results in others.


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Economic Prosperity and Vocational Education

"There is broad support amongst analyst, commentators and

theorists for the belief that a highly skilled workforce and

a process of constant upskilling are key elements in

achieving sustainable economic prosperity. It is the issue

of how to obtain such a highly skilled workforce that

separates commentators and international expert" (Deeks &

Rasmussen 2001: 379)

The importance of vocational education and highly skilled

workforce for economic growth has been recognised for a long

time. For example, it was part of the 'human capital' notion

where the stock of human capital will heavily influenced the

rate of growth of an economy (Becker 1962). It can also be

found in a number of recent OECD reports where sustainable

economic growth and low unemployment are associated with

flexible labour markets and constant upskilling (OECD 1998,

1999a, 1999b). Strategic human resource management theories

have promoted the notion of human capabilities as a crucial

competitive parameter (Boxall & Purcell 2000). Finally, the

emphasis on a highly skilled workforce can also be found in

the advocacy of workplace reform and strategic unionism.

Overall, there's been a stronger emphasis on vocational

education and constant upskilling as key hallmarks of


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sustainable economic growth. In this emphasis on vocation

skills and education there appears to be two underlying

themes. The first theme is that there will be relatively

fewer unskilled jobs in the 'knowledge economy'. This is

the process where many low-skill jobs can be substituted

through new technology or shifting to low-cost countries.

The second theme is that there will be a shortage of skilled

people in many OECD countries in the coming decades.

"The dominant factor for business in the next two decades --

absent war, pest events, or collision with a comet - is not

going to be economics or technology. It will be

demographics." (Drucker 1997: 20).

While it is clear that many countries are suffering from

skill shortages and associated upward pay pressures when it

comes to highly skilled jobs, it is also necessary to

underline that many of the new jobs will have less demand

for advanced technical skills. For example, many of the new

jobs in various service industries will have less need for

formal or technical skills; instead 'soft skills' and

'people skills' will be important. It is expected that the

growth in the service industries will be bolstered through

increased consumption power and an ageing population. Thus,

Long et al (2000: 12) have predicted that employment growth


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will happen in both highly skilled and low skilled jobs over

the coming decades.

Nevertheless, the issue of how to obtain such a highly

skilled and adaptable workforce still remains. This has

become a vexed question as tertiary education has become

more expensive, industry training less common amongst public

sector employers and, with fewer permanent employees as

atypical employment has increased. The latter has been

highlighted with the growing popularity of outsourcing and

short-term employment patterns. With fewer of the

traditional large employers to provide training and

education opportunities, it has been claimed that training

and education has become an individual responsibility.

Though it is far from clear whether this will be sufficient

to achieve the necessary skill and education levels.

When one discusses the present situation of vocational

education in the Auckland region and in New Zealand

generally, it is important to emphasise that some of the

mentioned problems are influenced by an overhang of previous

insufficient training and education efforts.

Traditionally, training and skills development have been

weak in New Zealand. It has been a tradition in New Zealand

that immigration has been used to cover skills shortages.


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The major economic and social reforms in the post 1984

period prompted a sharp drop in training efforts and this

led to a major downturn in the apprenticeships and the late

1980s and early 1990s. This was further compounded by the

major reform of industry training instituted in the early

1990s. However, the current vocational training system

gained momentum from the mid 1990s. This led to an upswing

in the numbers of industry trainees, to a wider coverage of

vocational training, and, as detailed below, many more

training providers.

It must be emphasised, however, that there is a certain lack

of knowledge about the sufficiency of vocational training

and education efforts. This was one of the reasons why

Statistics New Zealand undertook a comprehensive survey of

training and education in 1996. Unfortunately, this was a

one-off survey and so far there has been no other surveys to

allow an estimation of trends. The frequent media reports

and anecdotal evidence of skills shortages across the number

of industries indicate that there is considerable room for

improvement. It is a particular problem with the current

training and education system that there is a fragmentation

amongst providers and there appears to be considerable

overlap in training and education efforts. It appears that

co-ordination and facilitating structures would be a

positive step forward.


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Finally, it is a particular problem that many New Zealand

employers are small or medium-sized. It is well-known that

this type of organisation have difficulty in providing

sufficient resources to upskill their workforce. Many

smaller and medium-sized employers have also lamented that

it is too costly and bureaucratic to train their employees

properly under the new system. (We contest this evaluation

though we acknowledge that there is insufficient information

and knowledge about the current vocational training and

education system).

Whatever the reasons, it is a major problem since small and

medium-size employers will be the major drivers of

employment growth in the future.


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Trends: Student Participation

According to the Ministry of Educations “Profiles and

Trends” Analysis of 1999, student participation in tertiary

education has grown significantly since the 80s and 90s and

is above the OECD average. National growth slowed in the

late 90s and has now shown signs of levelling off – recent

increases are attributed to the increase in the length of

study and more students returning to study.

Percentage of Population Enrolled in Tertiary Education 1990 - 1999

Student numbers are expected to grow for the next 3 years

with projections indicating that enrolments in 2011 will be


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around 5% higher than were in 1999 with population growth

concentrated on the Auckland, Bay of Plenty region.

While some of the increasing numbers are due to not only to

a general movement towards tertiary education but also to

increasing length of study programmes and students enrolling

in programmes later in life.

New Zealand’s net rate of entry to university level

education was well above the OECD average at 68% versus 40%.

School decile ratings have a considerable impact on

participation with 71% of school leavers from decile 8-10

schools going on to tertiary education, 52% from decile 4 –7

schools but only 32% from deciles 1-3.

Proportion of 1998 School Leavers Going Directly on to Tertiary

Education in 1999


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The proportion of full time students is falling with 41%

enrolled in TEIs in 1999 compared with 52% in 1992.

55% of students who left school headed for tertiary

education with the figures significantly higher for female

school leavers (66%) than male (44%).

Colleges with a higher decile ranking sent significantly

more students on the tertiary education than those with a

lower ranking.

Percentage of Formal Students By Ethnic Group

Maori participation is 15.7% with the significant majority

heading towards Private Training Establishments (PTEs)

rather than Tertiary Education Institutions (TEIs). There

is a higher percentage of older Maori than European

attending tertiary programmes.


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Pacific Island students only comprise 3.7% of enrolments in

TEIs

From around 2003 until 2011 this age group will increase due

to the population bubble just entering secondary schools

now. The Ministry is expecting a small decline in 2002 and

then an increase.

Changes to the funding of PTEs has also led to an increase

in students attending lower level qualification programmes

in part due to the lower fee structure of these programmes

and to the more vocational focus of these programmes.


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Trends: Qualifications

There is a continued trend towards commercial and business

programmes with focus on computing, education and natural

and applied sciences with decreases in students enrolling in

the humanities and industrial trades, primary industries and

engineering.

43% of students in 1999 enrolled in degree programmes, 32%

in certificate qualifications and 15% in diploma

qualifications.

Maori and Pacific students were studying at lower levels

than their European counterparts. Maori and Pacific

students are increasing their participation rate but not at

a similar rate to Europeans.

Over 56,654 employees were in Industry Training Agreements.


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Percentage of TEI Students Enrolled In Selected Fields of Study, 1995 &

1998


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Trends: Student Debt

The controversy over student’s fees continues – the

ministry’s figures indicate that there has been a 12%

increase per year over the last five of the level of student

fees. The total student debt has been calculated at approx

$3 billion with the average being $11,700 in June 1999.

Maori and Pacific students are more likely to take out a

loan than their European counterparts.

The Minister has announced moves to restructure Student

Loans as this paper is being written.


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Trends: Skills Shortage

From primarily anecdotal evidence there is of a skill

shortage in a number of industries in the Auckland region.

The genesis of the shortage is the decision to pursue

liaisse-faire economic policies in the 80s and 90s. This

low wage / low skills route to economic development was the

subject of criticism at the time with a range of

commentators predicting the current skills shortage.

The ability of unions to effectively block this low wage

strategy was significantly compromised by the Employment

Contracts Act (ECA). Rather than improve productivity as it

claimed it would, the Act simply pushed the less organised

sectors of the labour market into low wages. 75% of growth

over the last ten years has come from increase in hours

worked, rather than productivity gains.

This lack of blockage ensured employers would pursue the

opportunities afforded through wage cutting rather than

pursue the high skill, high investment strategy pursued by

the successful economies of Germany and Scandanavia.

A feature of the early years of the ECA was the

renegotiation of individual and collective employment


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contracts and the removal of many of the conditions

preventing a flexible labour market. Penal rates became a

thing of the past in many contracts.

The subsequent low wages has seen our market attractiveness

for skilled employees deteriorate compared to our trading

partners.

Hence the position we are in; of an emerging skill shortage

and the calls by many of our business leaders for the

thousands of kiwis who left the sinking ship to return and

rebuild the economy.

There is however a debate as to the extent of the shortage.

Evidence from migration statistics tell a story of the

technical and professionally skilled leaving in significant

numbers with large increases noted in the period between

1995 and 2001.

The reason given by the Boston Consulting Group is the

favourable global climate for skilled professionals.

Indications are that global events may be conspiring to

change the climate that has, for the last 10 years, been

pushing our brightest off shore.


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Permanent and Long-term Departures by Occupation(a)

Year Ended December 1995 and 2000

(a) Excluding those without, or who did not state, an occupation.

Permanent and Long-term Arrivals by OccupationYear Ended December 1995 and 2000

(b) (a) Excluding those without, or who did not state, an

occupation

Department of Statistics Tourism and Migration Reference, Part 9, 2000.


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In the June 2001 year, 69,489 permanent and long-term

migrants came to New Zealand, up 8,204 or 13.4 percent on

the 2000 figure of 61,285. Over the same period departures

increased by 10.9 percent to reach 78,755. Despite the

larger increase in arrivals, New Zealand experienced a net

outflow of 9,266. This is the third successive outflow,

although 5 percent less than that recorded in 2000 (9,760),

and 19 percent less than in 1999 (11,369).

Anecdotal evidence from a number of recruitment consultants

indicates that this trend may be slowing even further given

the global instability. Labour market supply has been

boosted by around 1.2% for the quarter due to Recent inflows

of both migrants and returning New Zealanders and an

increase of working age people who are either employed or

actively seeking work.. There was a 20,000 increase in net

migration in the March quarter. According to commentator

Brian Fallow, ‘the increase in employment was well above the

market expectation’. (NZ Herald May 10 C1.)

There has been a strong growth in the work force of 65,000

or 3.3% over the past year.

It is clear that in order to sustain a long term growth rate

of 4% we will need to rely on significant increase in net

migration. Treasury economist Dr Fredric Sautet, suggests


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that we need to double our population in the next 20 years

in order to achieve the gains needed to improve our standard

of living.

Unemployment RateSeasonally adjusted

EmploymentSeasonally adjusted

Brian PinkGovernment Statistician

9 May 2002Cat 05.500 Set 01/02 - 187


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An interesting example is the decline of programmes offered

by the Engineering Schools at both Manukau Institute of

Technology and AUT.

Both have suffered reductions in staff as the management

followed sound business practice of providing the most

profitable programmes in the least possible space with the

least costly equipment.

Engineering does not fit those requirements and has been a

victim of cost accountancy.

Presumably the Desirability Test in the Tertiary Education

Reforms will be applied and where there is good reason, such

as an advanced labour market forecast of an impending skill

shortage in the engineering sector, the Polytechnics would

be funded to develop the capacity to run the programme.

The skills shortage has been getting significantly worse in

the technical manufacturing area covering dairy, plastics,

metals, food processing, and packaging. John Williams,

principal of Lawson Williams Recruitment, the largest

manufacturing technical recruitment specialist in the

country, says there are huge problems with both senior and

middle management in this field (60 – 130K pa).


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The company is dependant on new migrants and to a lesser

degree on high calibre Australians filling positions at the

senior level. In the last 3 years, 33% of their senior to

mid management recruits have come from offshore to fill

local positions.

Short term solutions include targeting countries with a high

level of expertise in the fields and proactively promoting

the employment opportunities. South Africa, Italy and other

European countries have not been targeted in this manner.

In the long term we need to ensure our basic education

strategy including teacher remuneration are funded

effectively.

Attempting to fill the skills gap with localised initiatives

is another short term measure the education industry in

Auckland is capable of.

The case of the recent boat building shortage in Auckland

has been handled by a collaborative effort between the

boating industry, the respective ITO, Work and Income

Services and Skill NZ. At the time a number of construction

carpenters were on the Auckland market due to the collapse

of a large developer. The joint effort between the

government agencies and the industry representatives was


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launched to upskill them in basic boat building skills

focused on the Alloy Yacht market.

This type of approach relies on accurate market signals from

industry. Accuracy is not one of the stronger points of

business when sending signals about potential skills needs.

Often employers are as much in the dark about the employment

trends as the education industry.

A solution is to develop a long term research programme

focused on predicting this type of shortage.


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Purchaser and Provider Overview: Tertiary

Reform

The recent reform of the tertiary education sector will

significantly change the way this sector provides skills.

In turn this will impact on the opportunities for the

Auckland Regional Council to intervene in the area of skill

development within this region.

The previous system was marked by a lack of a cohesive

strategic direction characterised by a free market approach

to the provision of learning across the tertiary sector and

into the realms of vocational training.

Secondary education was not immune to the free market model

with the Tomorrows Schools initiative empowering parents by

giving them near full responsibility for the strategic

direction and management of their school.

This more voluntarist than strategic approach has led to the

interesting spectacle of universities aggressively competing

for students within the same location and often for the same

courses, universities competing against teacher training

colleges, a proliferation of Industry Training

Organisations, all consuming valuable infrastructure


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dollars, the establishment of Private Training Providers

seeking government funding for courses with little chance of

an employment outcome for participants, and secondary

schools competing for students in ways that previously would

have been regarded as unethical.

A submission to the second report of the Tertiary Education

Advisory Commission noted that the previous system “has

resulted in: an inefficient and ineffective use of the

nation’s scarce resources; a narrowing of the range of

available programmes; the loss of essential polytechnic

trades programmes; the duplication of degree and other

programmes; a decline in the quality of provision … a threat

to both the national and international credibility of New

Zealand’s university level education; and, a threat to the

viability of some essential public tertiary education

institutions”. Submission 121.

The writing was on the wall for voluntarism for the tertiary

education sector with election of the 1999 Labour

Government.

The Tertiary Education Reform Bill, described by the NZ

Business Round Table as the reintroduction of ‘central


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steering’, is currently in the House on its way to becoming

law.

The Bill seeks to introduce strategic direction in the

tertiary sector previously characterised by open competition

and no national goals.

That strategic direction will be enforced via a requirement

for providers to negotiate a charter outlining the broad

goals of the organisation and a profile specifying exactly

what the provider is doing to achieve their goals.

Finally, providers must meet a desirability test that

harmonises their profile with the national strategic goals.

If the provider is in discord

then they are no longer a provider. The negotiation of

charters and goals and the application of the desirability

test will be managed by the Tertiary Education Commission

(currently Skill NZ). All parties spoken to whilst

conducting this research commended the work of Skill NZ but

many have wondered how the organisation will cope with

having to negotiate charters and profiles and match

desirability tests for over 800 tertiary providers. If

poorly resourced this has the potential of becoming a

bureaucratic nightmare.


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The Tertiary Education Advisory Commission recommended

the following goals

innovation;

economic development;

social development;

environmental sustainability; and

fulfilling Treaty of Waitangi obligations

Further recommendations of the Commission were for the

strategy to give priority to building stronger bridges into

tertiary education through such means as:

an explicit commitment to basic skills achievement;

incentives for educationally disadvantaged learners;

more comprehensive research into the requirements of

those in the greatest need of assistance;

a greater focus in Adult and Community Education (ACE)

policy on serving the educationally disadvantaged and

on improved linkages between the ACE sector and the

rest of the system;

more extensive, independent, and quality information

and guidance on study and career options focused on the

needs of individuals and employers and other

stakeholders;

creating effective pathways for Maori and Pacific

learners to better enable them to access learning

opportunities;


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the development of comparable and meaningful

performance measures for providers and ITOs to assess

progress in reducing disparities;

the sharing and development of best practice resources

in assisting the educationally disadvantaged; and

greater support for ESOL, and for new migrants.

There are opportunities for local authorities to advocate

and service a number of these more specific strategic goals.

The Bill seeks to drive from the system duplication and a

perceived decline in quality of tertiary education by

seeking to bind providers to a national set of goals and

encouraging cooperation rather than competition.

A comment made during this research by a key tertiary

education leader was that the “universities only turned up

to meetings to guard their patch”.

The fostering of collegial relations rather than patch

guarding is one of the key drivers of the legislation.


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Purchaser and Provider Overview: Skill NZ

The responsibility for the interface between the labour

market and education lies with the Crown agency Skill NZ.

The agency works closely with Work and Income, the Ministry

of Education, Te Puni Kokiri, the New Zealand Qualifications

Authority, the Labour Department, Workbridge and secondary

schools.

It purchases quality assured training for a range of

industry groups, Maori and Pacific people and educators.

They manage a range of funding programmes including funding

ITOs who are required to register trainees in Industry

Training Agreements and maintain a certain level of credit

accumulation.

Other Programmes include:

Training Opportunities

These programmes are targeted towards job seekers, generally

aged 18 years or more, long term unemployed, refugees, ex-

prisoners, unemployed with low qualifications, or Work and

Income priority clients. The training is free and is

designed to provide a practical pathway to employment. PTEs


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are the dominant provider in this sector and they receive

EFTS funding.

According to Skill NZ more than 22,000 trainees participated

in TOPs in 2000 and 62% achieved a positive outcome

including 51% moving into employment an the remaining 11%

moving into further training.

60% of Maori trainees moved into employment or further

training.

Over 16,400 trainees gained qualifications on the National

Qualifications Framework

Youth Training

This training offers a range of practical skills training

for school leavers under 17 years of age who have no more

than two school certificate subjects or no formal

qualification higher than Sixth Form Certificate. The

training is free and is offered by a range of training

providers.

Skill Enhancement

This programme is aimed at young Maori and Pacific students

between the age of 16 – 21. 20% of the training is

conducted in the workplace and uses a range of PTEs

including Wananga and polytechnics.


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Secondary Tertiary Alignment Resource (STAR)

This programme is designed to better meet the needs of

senior secondary students by creating pathways to tertiary

education. Unit standard based programmes that are not

generally part of the school curriculum form the content.

Comment on the effectiveness of STAR is found under the

Secondary Schools section.

Modern Apprenticeships

There are currently 2000 young persons employed as Modern

Apprentices with a target of 3000 by July 2002. This

programme is administered and promoted via the various ITOs

and is promoted by the Minister as ‘a prestige learning

pathway’. (Speech Notes, Hon Steve Maharey, 5 March 2002)


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Purchaser and Provider Overview: Ministry of

Social Development (WINZ)

This government department is involved in a range of skill

building programmes throughout the region including:

J3 – Job Intro, Job Link, and Job Plus a range of

programmes focused on youth unemployed.

Work Confidence and Job Search Skills targeted at the

unemployed.

The Residential Motivational Training Programme

designed to introduce personal motivation skills to

young people via a residential programme.

Be Your Own Boss – often delivered via an Enterprise

Agency this programme allows long term unemployed to

use their Enterprise Allowance to fund the 6 week

course.


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Purchaser and Provider Overview: Career

Services – rapuara

This is another Crown Agency focusing on the provision of

information, advice and guidance services designed to assist

people make informed career choices.

The service has developed an effective online resource,

KiwiCareers, and a phone support Career Point. A range of

resources are either available or being updated for use in

secondary schools. A number of pilot programmes were also

underway in secondary schools aimed at improving current

resources (eg the training of new careers advisors) or

establishing follow up relationships with senior Maori

students who had attended careers days with the Service.

Schools are one of the key interfaces for the Service and a

1999 report from the Education Review Office (ERO) listed a

number of issues including the failure of some schools to

appoint a careers counsellor, the lack of time available in

schools for effective counselling, the poor standard of many

careers offices, the limited opportunity for students to

explore a range of work options, and a limited range of

information for students. (ERO 1999)


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According to the Ministry of Education (NZ Education Review

December 7 2001) the non tagged nature of the funding will

not be changed because of the self governing nature of

Tomorrows Schools.

Some schools such as Howick College provide a very effective

service with a 1.5 teacher allocation, administrative

assistance and a teaching classroom complete with careers

resources and 12 computers.

Career Service – rapuara is a Government Funded Training

Establishment (GFTE) and delivers or assists with career

related programmes. Further comment on these programmes is

found in Secondary Section of this document.


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Purchaser and Provider Overview: Industry

Training Organisations (ITOs)

The Industry Training Strategy was initiated through the

Industry Training Act 1992 and is a consummate example of

the politics of voluntarism.

Employers and other industry stakeholders including

professional associations and unions were offered the

opportunity of establish Industry Training Organisations

funded by the government. After the dust had settled over

50 ITOs had appeared on the horizon often crowding out

industry sectors.

Other sectors remained devoid of their presence and had to

be content with Industry Advisory Body status until these

were ruled unlawful and control of sectors with no ITO

reverted to the NZQA. The area of Management still lacks an

ITO.

The shear number of ITOs is staggering, (46 are currently

registered), and there are some timely efforts being made to

reduce the number (Australia currently has 23 Industry

Training Advisory Bodies).


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While this number is a concern there are some excellent

examples of ITOs servicing their sector. Larger ITOs such

as the ETITO and the Forest Industries Training are creating

an effective profile with large numbers of Industry Training

Agreements and innovative delivery methods.

Other problems associated with having a large number of ITOs

have emerged.

Each ITO was encouraged to earnestly develop unit standards

and qualifications for their specific sector resulting in

wide ranging overlaps and inconsistencies with the credit

based system. Similar standards exist throughout the

framework, the number of credits given for similar standards

can vary significantly and the inconsistent design of

qualification design is cumbersome.

An urgent need is required to create a common generic

elective for all lower level qualifications to ensure

secondary colleges and PTEs can run standardised courses to

enable students to establish a pathway to a qualification.

Currently, a plethora of qualifications exist, with a range

of quirky and diverse unit standards required in their

generic electives.


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A significant industry initiative in the form of Modern

Apprenticeships has seen ITOs managing the delivery of this

programme funded via Skill NZ.


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Purchaser and Provider Overview: New Zealand

Qualifications Authority

At the other end of the voluntarist / centrist continuum

lies the National Qualifications Framework (NQF).

The New Zealand Qualifications Authority is the body

responsible for the management of the NQF.

In developing the NQF the NZQA has focused simply on the

assessment of competency. They are not that interested in

how a student arrives at the point of assessment: they may

have learnt on the job, attended a specific training

programme, or simply picked up the skill as part of life’s

experience. What is important to the NZQA is the assessment

design. Does it meet the standards of validity required?

This approach enables a range of assessment models designed

to fit unique environments. For example, when designing a

Diploma of Business for a local authority, the assessments

can be individualised to the specific projects being

undertaken within that local authority at that time and many

of the assessments can be made as this project work

proceeds.


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The change from a content-based approach to an assessment-

based approach in the auditing of a learning system is a

significant paradigm shift in the way we think about

learning. It is a completely new way of thinking and it has

taken some time for it to catch on. It has not proved

popular with the universities who steadfastly refuse to have

anything to do with the system. This will change, however,

as the more competitive universities begin to recognise and

cross credit qualifications gained via the NQF. This is

already happening and will the trend will accelerate.


45

Purchaser and Provider Overview: Secondary

Schools

Overview

The secondary education sector has yet to feel the impact of

the government’s re-centralisation moves. Under the

Tomorrows Schools initiative Boards of Trustees are

encourage to manage mini fiefdoms competing for students

across the region. This has led to networks of buses criss-

crossing the city as parents seek the best education for

their children. Needless to say the well off schools are

well off and the schools in the poorer communities struggle.

The concept of strategic collaboration and cooperation among

the colleges has been significantly eroded by Tomorrows

Schools.

The somewhat toxic atmosphere that pervades competing

secondary schools masks a more significant issue when

discussing the interface between secondary education and the

marketplace.

The core of the curriculum in secondary schools has an

academic focus, broken into discreet disciplines aimed at

preparing students for a degree. While 55% of students are


46

now heading towards tertiary education the remaining 45%

struggle with this academic focus.

This problem was recognised by the innovative educator

Garfield Johnson, who introduced integrated studies into the

junior school – a combination of disciplines aligned around

theme. The resulting product was grounded in reality and

lost none of the academic content. Teachers struggled to

cope with the concept, coming as they do from degree

backgrounds. The failure to teach integrated learning

models in the training colleges hastened its demise. It

perhaps represented the most coherent opportunity to ground

secondary education in the real world and provide a powerful

platform for launching a comprehensive transition to work

programmes.

Maori Education

Maori education in our schooling system is, in the main, a

failure. Maori students perform significantly less

successfully than their European counterparts in nearly

every comparison.

This situation led Maori to establish the Kohanga Reo

Movement and latterly, the Kura Kaupapa Movement.


47

In a case study reviewed for this paper, the results of

Maori in a Kura Kaupapa immersion unit at a medium sized

secondary school not only surpassed Maori in the same school

but also surpassed that of all students in the mainstream

classes. (Performance of the Rumaki, T. Compton, Western

Springs College 2001).

Interestingly, Western Springs College has noted that there

is a declining interest among Maori in sending their

children to a immersion unit where it is felt their English

language skills would be compromised. Evidence from the

Welsh experience indicates this is not the case and the

Western Springs college evidence supports this. However, it

is a disturbing trend.

Supporting Maori immersion education is not a popular ‘high

skills’ strategy and nowhere in the major strategic

documents reviewed is there any mention of the need to find

a solution for poor Maori performance in our education

system.

We are a society that will feel the impact of a growing

Maori representation in both the size of the population base

and the balance of influence it will exert.


48

A comprehensive Maori education strategy that is supported

across all our society is needed. By supporting Kura

Kaupapa, local authorities will have made a good start.

Transition to Work

Currently, the lack of quality relationships between

programmes offered in secondary schools and the labour

market is seen a major issue among various commentators.

As outlined above, the ability of the curriculum to provide

effective, grounded transition-to-work programmes lies in

its inherent design. Most of the time in class is spent on

the academic disciplines with little given over to the world

of work. Just the effort of timetabling interesting and

innovative relationships with business is a major effort.

The main work interface programmes operating in secondary

schools include Careers Guidance, Transition-to -Work and

the Secondary Tertiary Alignment Resource (STAR). A pilot

Gateway programme is also underway.

Funding for Careers Guidance is provided for and tagged in a

secondary colleges operation grant. Most colleges would

struggle to provide comprehensive, dynamic careers advisory

service and all would complain about a lack of resources in

this area. Only the colleges with discretionary funding can


49

expand their careers unit beyond what is being provided for

via the current funding. The few colleges with the spare

cash seem to prefer to expand their IT or sports programmes.

The Career Services – rapuara has developed KiwiCareers to

provide a national online career information system.

Secondary Tertiary Alignment Resource (STAR)

The STAR programme funds projects where schools can offer

non-conventional courses directly related to qualification

pathways. The STAR fund can also encompass worksite or

tertiary institution visits for year 10s who are chosing a

career related year 11 subject as an option or for

innovative programmes within the college or intermediate.

Some the new product is not labelled ‘transition education’

but is focussed on higher-level tertiary qualifications and

is thus attractive to the learner.

Gateway

An innovative Skill NZ project, Gateway, is being piloted

among 24 secondary schools, 6 of which are located in the

ARC region.


50

Students are placed with an employer who provides them with

the workplace learning opportunity and ideally provide on-

site assessor.

Progress will be limited if the employer does not have

access to an assessor or if roving workplace assessors are

not available. The reluctance of teacher to address

timetable constraints is also an issue.

The recent introduction of the NCEA will compound the

problem for a college embarking on a Gateway programme as

the new assessment based model will potentially conflict

with the time students are with employers. The project will

report on initial findings in June

ITOs and Secondary Schools

Many ITOs are beginning to develop links with secondary

schools, some by developing high quality resources others by

establishing interest groups of students along with

sponsored competitions. The Furniture ITO has produced a

range of classroom resources and the ETITO has Bright Sparks

– a programme designed to interest students in the

electronics industry.

Other vocationally related programmes include the Skill

Olympics although the timing of this in November often

precludes senior students from taking an effective part.


51

The Partners Trust provides links to business and trust

working at a variety of levels including with Boards of

Trustees and directly with students – it is a key link in

the City of Manukau Education Trust (COMET)

programme.colleges are creating alternative learning streams

using the STAR concept by delivering unit standards

programmes to pathway students into National Qualifications.

Efforts are being made to ensure


52

Tertiary Education Institutions (TEI)

There are four kinds of TEI including universities (8),

polytechnics (23), colleges of education (4) and wananga (3)

– together enrolling over 350,000 students each year.

The Ministry has identified key issues for this sector as

being

Introduction of the Tertiary Reform Bill

Student debt and funding issues

Growth of the sector

Advances in flexible and distance learning

The need for strategic alliances and international

collaboration

The need to address access and equity issues across

ethnic groups


53

Purchaser and Provider Overview: Private

Training Establishments

There are over 800 PTES in the country and a significant

number of these (370 excluding secondary colleges) within

the ARC boundaries.

Many PTEs access what is known as Second Chance Learning

funding in the form of Equivalent Full Time Student funds

via the Skill NZ Programmes outlined above. There has been

‘considerable success in enhancing the participation rates

of Maori and Pacific Island students’ according to the

Ministry of Education. (New Zealand’s Tertiary Education

Sector – Profile and Trends)

The EFTS funding system was equalised in 2000 and this led

to a significant increase in student numbers participating

in PTE programmes at Level 3 and above. Through their

advocate, the New Zealand Association of Private Education

Providers, they are lobbying for funding for programmes

offering a Level 1 and 2 qualification.

PTEs vary in size but are generally small and focused on

niche markets such as the Tourism and Hospitality Sectors.

Many access Full Time Equivalent Funding from the government


54

while others have built a strong business on immigrant

education.

The Auckland Institute of Studies is an example of a larger

PTE established to provide a range of educational

opportunities for with a primary immigrant focus. In

contrast, the Whitecliff Art School provides both immigrant

and local access but with an emphasis on local students.

Over 48 language schools exist in the region. These include

many of the first PTEs and are credited, along with a number

of innovative secondary schools, with establishing the

export education boom.


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Purchaser and Provider Overview: Other

Government Departments

A number of other government departments run skill

development programmes.

Te Puni Kokiri runs Te Ratonga Awhina Pakiri Maori – a

Business Facilitation Service and Te Whakarahi Ake, a

Capacity Building programme designed to assist Maori

organisations compete in a range of environments.

The Ministry of Youth Affairs runs the Conservation

Corps and the Youth Service Corps.

The Ministry of Economic Development via Industry NZ

runs BIZ, a small business assistance programme with a

range of grants and programmes designed to improve the

survival rate of our small to medium sized enterprises.

The Ministry of Internal Affairs manages the Community

Organisation Grants Schemes (COGS), which often

involves community projects with elements of skill and

capacity building. They also run the Social

Entrepreneurs Programme and manage the Lotteries

Grants.


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The Labour Department via the Community Employment

Group is in a similar position with the COGS programmes

running targeted training programmes for communities

requiring specialist assistance.

The Ministry of Health also run a number of focused

programmes.


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Purchaser and Provider Overview: Other

Tertiary Education Providers (OTEPs)

Thirteen OTEPs provide training in a variety of areas

including early childhood pre-service teacher or parent

qualifications, community education for specific ethnic

communities, adult education including literacy, numeracy

and Esol, the performing arts and agriculture.

Literacy and Numeracy

The national Tertiary Education Advisory Commission

recommendations refer to the need to address the basic

skills. All commentators and especially employers are

concerned that this area of skills is not being addressed.

Much has been made of the need for secondary schools to

address this issue but by then the damage is done and given

secondaries focus on the more academic disciplines it is

difficult to reverse a lack of literacy and numeracy at this

stage.

The focus on solving the problem needs to be with pre school

programmes for both parents and students. Parents who do

not model regular reading habits and who don’t read

regularly to their children are the source of the problem.


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Programmes and funding is most wisely spent at this level of

learning.

The exploration of innovative and effective numeracy

programmes at all levels of the education system is now

recognised as crucial for reversing a trend away from the

hard sciences and technical disciplines at the tertiary

level. Maths education has for too long been dominated by

rote learning and less than exciting methods of

transmission.

There is, however, evidence that long term literacy /

numeracy programmes can be effective in an adult context

with one of the most documented being the now Norske Skog

paper plant in Kawerau managed by the Literacy provider and

advocate Workbase Education Trust. These initiatives are

currently funded via OTEP resources.


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Purchaser and Provider Overview: Local

Authorities

A number of local authorities run Enterprise Boards with the

specific goal of assisting local businesses and emerging

businesses with a range of needs.

Proactive Councils such as Manukau City, fund their

enterprise boards and run a range of programmes such as

BIZinfo, a series of Ministry of Economic Development funded

programmes designed to assist small businesses, Be Your Own

Boss, a programme funded by the Work and Income Service to

assist long term unemployed start a new business using their

Enterprise Allowance, and a range of other niche programmes

periodically piloted by various agencies.

Other councils such as Rodney do little although they are in

aiming to become more proactive in the future. The Papakura

District Enterprise Board is promoting a Life Long Learning

Centre and is in the process of building interest in their

community for this project.

Manukau City has also created the City of Manukau Education

Trust (COMET) aimed at promoting education initiatives in

its area. The project has been working on a range of


60

targeted initiatives including literacy projects and school

and business relationships. With the assistance of Partners

NZ Trust it aims to produce 60 quality relationships between

school and business in 2002.

The Competitive Auckland report is critical of the

fragmented approach to Auckland’s local government

environment and has suggested a macro agency to service the

wider needs of economic development in the region.


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Purchaser and Provider Overview: Community

Education

Universities, Polytechnics and Colleges of Education are

able to provide government funded Community Education

programmes along with a large number of secondary schools.

Also eligible for funding were a range of adult community

groups with access to Community Learning Aotearoa funding

for non formal community education activities.Responses to

the Changing Supply and Demand for Skills


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Purchaser and Provider Overview: ‘Export’ and

Migrant Education

‘According to Professor Colleen Ward in her research paper

Impact of international students on domestic student and

host institutions (Ward pg 2001). Her report notes: “Over

the last two decades New Zealand has moved from an "aid to

trade" orientation to international education, and economic

analyses clearly indicate that the benefits outweigh the

costs of internationalising.

There are now 7000 international students in New Zealand

schools and approximately 11,000 in the tertiary sector.

With increasing numbers of international students, however,

it becomes clear that economic issues are not the only

relevant considerations. Educational, social, and cultural

impacts are also important”.

Due to concerns expressed over the treatment of some

students and the imminent appearance in court of some PTEs

for not running the courses they contracted to provide, the

government has instituted a new mandatory Code of Practice

for the Pastoral Care of International Students.


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The Code establishes a framework for minimum standards, good

practice procedures and a complaints procedure for providers

enrolling international students.

The code commences on 31st of March 2002. Educational

providers then have six months to sign the Code. The code

enables PTEs to be ‘struck off’ if not providing quality

educational and welfare facilities for international

students.

Research into the impact of international students on

domestic students found that:

there was little interaction between international and

national students and that while the international

students were keen for more interaction, domestic

students weren’t that interested.

there is an opportunity for teachers to

internationalise their programmes – little effort is

being made to bring an international perspective to the

classroom and the research indicates their would be

benefits to both international and domestic students if

this occurred.


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Little is known about the integration of international

students into the larger community. This is

particularly interesting given the potential negative

impacts of cultural misunderstanding if domestic

communities feel threatened by the influx of large

numbers of foreign students.

The research concluded that the presence of international

students, even in large numbers, is insufficient in itself

to promote intercultural interactions, to develop

intercultural friendships and to result in international

understanding. Rather, situations must be structured to

foster these processes” .

Three initiatives are recommended

1. Peer pairing involving domestic students and

international counterparts

2. Cooperative learning by ensuring ethnic diversity in

classroom situations and programme designs

3. Residential programmes within hostel or accommodation

environments

There is a wide range of courses available from the over 400

PTEs in the Auckland region. The Ministry has noted that a

number of the larger PTEs have more programmes available

than some of the small polytechnics.


65

Course prices vary and often included homestay

accommodation. For example, a typical course to gain a two

year Diploma in Computing will cost around $10,000 pa.

Homestay accommodation will more than double that cost.

The government’s aims to tax homestays (for more than one

student) a measure causing some concern among these

providers.

Many government funded tertiary institutions including

Massey’s campus at Albany and AUT’s city campus report over

30% foreign student enrolment.

The boom in Asian education was established when

enterprising secondary colleges such as Lynfield College and

Rangitoto College and a number of Language Schools

established comprehensive agent networks in target countries

in the late 1980s.

The extent to which these networks have been established is

impressive.

For example, the principal of a medium sized English

Language School in central Auckland is currently travelling

to agent’s conventions in Germany, Turkey, India and


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Finland. He regularly visits China and is opening an office

in India and Fiji. All providers have developed these

links, often independently of one another and often in

conjunction with other providers.

It is difficult to see how the proposed tax on foreign

students aimed at marketing ‘Export Education’ will assist

those who have already pioneered successful networks

overseas.

However, the government may have been encouraged by

Competitive Auckland’ s suggestion that a regional joint

marketing agency be established (Competitive Auckland Phase

4 Report pg 32). The government seems to have given the

suggestion a national flavour.

Another suggestion promoted by Competitive Auckland is the

Talent Visa. This visa would presumably waive some of the

requirements of the current visa system and allow ‘talent’

in quickly.

The Ministry of Immigration also assists in the area of

skill development by funding a number of training programmes

for migrants with an emphasis on those seeking to resettle

in NZ.


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Often these come from a refugee background – an example of

this programme is the New Venture Trusts programme for

highly qualified migrants providing coaching on job skills

and overcoming barriers to successful employment.

WINZ has also stepped into this field by piloting a

programme matching qualified migrants with employers in

their field willing to acquaint these potential employees

with the culture and attributes of the profession in NZ.


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Purchaser and Provider Overview: Business

Issues

There is a strong link between the business community and

both government funded and private education.

A number of tertiary institutions have long standing links

with the business community in the Auckland Region. Many

have a significant number of business representatives on

their governing bodies.

The recent establishment of three business incubators in the

Auckland region is another example of these institutions

establishing business start-up pathway for budding

entrepreneurs.

At AUT for example, 31 units are currently occupied for a

variety of functions including start-up and established

businesses and specific research functions. Their centre in

Penrose also includes conference and training facilities.

Competitive Auckland

This organisation has been established to develop a vision

for the future of Auckland with associated goals for

economic development. It has invested significantly in the


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project with support coming from a number of the larger

businesses, consultancies and institutions in the region.

The key work streams of the strategy have become the key initiatives of Competitive Auckland. They comprise the following:

1. Developing a business value proposition for the

Auckland region

2. Developing a template of organising the Auckland regionfor economic transformation

3. Supporting development of the Focus Industries and

build partnerships with Education

- Biotechnology

- Exporting Education

- Food & Beverage

- Information & Communications Technology

- Marine

- Tourism

4. Enhancing Auckland as "A Great Place to Live and Work" 5. Creating a business hothouse

6. Working with the Auckland Regional Economic DevelopmentStrategy (AREDS) Group

Rangitoto Model


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The model emphasises the notion of Highly Skilled

Communities and the need to transform the skill base to

deliver the growth objectives.

Only three recommendations were included in this report:

1. to develop a model for skill development using the

‘advanced’ marine example

2. create a forum of secondary school principals to

‘define a significant step up in knowledge’ for

secondary students embarking on a career

3. Enable tertiary institutions to collaborate on key

issues


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A significant emphasis in the Competitive Auckland material

is placed on attracting skilled workers, both migrants and

returning kiwis. A suggestion as part of the developing

skilled communities is to run more city wide events and

festivals to attract the skilled workers needed to deliver

the suggested productivity improvements. Little emphasis is

placed on developing the skills of those currently living in

Auckland.

The report also identifies Six Focus Industries that would

presumably be the beneficiaries of any initiatives designed

to enhance their performance. It is not clear in the

Competitive Auckland material what methodology was used to

select the Six Focus Industries. Evidence is littered in

the ‘picking winners’ literature of winners not making it to

the winning post. A criteria based approach would have

clarified this.

The final report recommends the establishment of an Auckland

wide Economic Development Agency as an answer to the seven

fragmented and micro focused local authority agencies

currently operating.

Employers and Manufacturers Association

This organisation has been running targeted education

programmes for employers since 1980 with a focus on

supervisory management skills. Its members deliver 80%

Auckland’s economic activity.


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A wide range of member driven training programmes are

currently offered on a user pays basis. This system works

when members know what they want – but it struggles to

provide programmes of potential or future interest. A case

in point is the emerging growth of the e-learning business.

The EMA has investigated this opportunity in some detail but

is yet to commit serious resources as member interest

remains low.

A key issue for employers is the attention needed on the

Foundation Skills of Literacy, Numeracy and Communication.

While communication skills are included as part of the EMA’s

programmes the need for literacy and numeracy skills is seen

as crucial.

The EMA believes that there is a wide range of educational

opportunities for those keen to learn and this study would

seem to support the fact that there are large numbers of

providers filling every niche.

Employment Related Education Fund

This fund, established by the Ministry of Labour, is

specifically aimed at assisting organisations learn about

the Employment Relations Act. The fund is contestable and a


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number of innovative learning projects including video

resources and unit standard programmes have been developed.

The Auckland Region Chamber of Commerce

This member driven organisation also has a significant

number of training programmes targeted at their core

constituency – small businesses.

A number of business commentators questioned the need for a

significant skills initiative among the students already

selecting the tertiary education option. They felt that

apart from the significant fall off in the sciences at the

universities and the growth of qualification programmes at

the certificate level that have questionable employment

outcomes, the system was not doing too badly.

Both these issues should be addressed by the introduction of

the desirability tests.

Where the emphasis was needed was in the development of

basic skills and by providing the least motivated students

with a range of learning opportunities that excite this

group to learn.


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The learning would be delivered in a highly participatory

and fun mode and would give participants a reason to learn.

Using advanced learning methods such as the accelerated

approach would inspire students to take responsibility for

their own learning.

Criticism of the TOPS style programmes focused on their

strictly traditional method of learning, with most of the

programmes delivered on a cost competitive basis with little

consideration given to the more expensive accelerated

methods.


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Purchaser and Provider Overview: Maori Issues

Young Mäori today are more likely than in the past to stay

at school beyond compulsory attendance age and more likely

to leave with qualifications. There has also been a

considerable growth in the numbers attending tertiary

education.

At secondary school, increases in retention beyond the age

of compulsory attendance were greater for Mäori than non-

Mäori between 1986 and 1996. For example, the proportion of

Mäori students staying at school from the age of 14 through

to the age of 17 years doubled over the period, while the

proportion of non-Mäori increased by 77.3 percent.

Despite these gains, retention rates for Mäori have declined

at all ages since 1993 contributing to a divergence in the

Mäori and non-Mäori rates. As a result the relative

position of Mäori has worsened since 1993.

Significant gains have been made in the participation of

Mäori in tertiary education over the last five years.

Tertiary education covers educational programmes at

universities, polytechnics, colleges of education and

wananga (Mäori tertiary institutions). Between 1991 and

1996 the number of Mäori enrolments more than doubled while

non-Mäori enrolments increased by 27.2 percent.


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Much of the growth in Mäori enrolments over the 1991-1996

period was due to large increases in the numbers studying at

polytechnics and colleges of education. Part of this

increase may be due to the shift of some community based

programmes to polytechnics (such as nursing) and to a

recruitment drive for teachers. In 1996, just over half of

Mäori tertiary students attended a polytechnic, 37.6 percent

were at universities, 6.6 percent at colleges of education

and 3.0 percent at Wananga. The majority of Mäori teacher

trainees are in the primary sector; 81.7 percent compared to

63.0 percent of non-Mäori trainees. This may be due to the

growing number of kura kuapapa and increased Mäori-medium

education in mainstream schools, as former kohanga reo

students move into the primary education system.


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The above figure shows the change from 1991 to 1996 in the

proportion of tertiary students who are Mäori. As a

proportion of all tertiary students they increased from 7.8

percent to 11.9 percent over the period. In 1996, Mäori made

up 9.1 percent of all university students, 14.2 percent of

polytechnic students, 12.9 percent of college of education

students and 88.3 percent of wananga students. The number of

Mäori students enrolled at wananga has risen from 261 in

1994, a year after wananga were first set up, to 734 in

1996.

Source: Department of Statistics


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Purchaser and Provider Overview: Pacific

Island Issues

The recent Capacity Building project undertaken by the

Ministry of Pacific Island Affairs throughout the country

has highlighted a number of educational initiatives the

Pacific Island community are keen to promote. The

initiatives include

The provision of information on early childhood

education training programmes to Pacific communities.

An increase in the number of licensed Pacific early

childhood education centres throughout Auckland.

Marketing of a handbook on secondary education to

schools with high Pacific student numbers and Pacific

parents.

Funding of a Pacific Teacher Professional development

contract to progress Pacific teachers to middle or

senior management levels.

A Pasifika NESB Literacy Initiative to improve the

teaching capability in teaching Pacific students for

whom English is a second language.

A Ministerial taskforce to look at the Recognition of

Prior Learning.

The need to develop the Kohanga Reo model at the early

childhood level emphasises the need for students from


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minority cultures to be schooled in their own language to

establish a sense of worth and belonging. This is the base

from which to launch improved educational and career

horizons.


Auckland Regional Economic Development Strategy Skills Assessment Project

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