ITO Update: Supporting industry training in Canterbury

1 March 2011

In this update: Supporting industry training in Canterbury.

The TEC has agreed a number of steps to support trainees and industry in Canterbury. These actions are effective immediately and apply until further notice.

An extension has been made to the current 6 week transfer limit[1] to 12 weeks for currently active trainees based in the Canterbury region. This would enable ITOs and Modern Apprenticeships Co-ordinators to continue to claim Industry Training, Modern Apprenticeship STM funding, and Modern Apprenticeships Brokerage funding for trainees based in the Canterbury region that are out of work so that they may assist them to find alternative employment.

The impact of the Christchurch earthquake are also grounds for ITOs to seek a principles-based exception in relation to the funding rules relating to durations[2], credit achievement[3], and the funding cap for trainees[4].

ITOs with significant infrastructure based in Christchurch may also seek the approval of the TEC to defer compliance with the requirements of the Industry Training Register.

The TEC will also consider funding to support joint venture arrangements where ITOs propose sharing services for a temporary period.

Longer term actions to support ITOs through this period are currently being identified and assessed. Any longer term actions will be communicated to the sector in a further ITO update. Please contact your TEC Investment Manager with any questions or concerns.

• [1]

  Rule ITO002: Industry training - trainee requirements

  To be eligible for industry training funding, a trainee must meet the following:

  • Have a valid training agreement, on the last day of the month for which funding is sought, as defined in Rule ITO004
  • Not be enrolled in a programme that they have already completed
  • Be in an industry that is one of the following:
    • Under the Industry Training Organisation's (ITO's) recognised industry coverage
    • Outside the ITO's recognised industry coverage where the industry training has been approved by the Tertiary Education Commission (TEC) under section 10A of the Industry Training Act 1992
  • Be employed and work in New Zealand.
  • Have a New Zealand Qualifications Authority Record of Achievement Number and National Student Number.
  • An employee meeting the above requirements may have any training received overseas supported by industry training funding if the skills learned are characteristic of, or likely to be valuable to, the New Zealand industry in which the trainee is employed. The trainee must be employed in New Zealand.

  If a trainee is under the age of 16, the ITO must retain a copy of the documents which exempt the student from school.

  A trainee remains valid for funding after the end of a training agreement if, within six weeks, the trainee signs a new training agreement for the same programme, with a new employer or relevant organisation as specified in Rule ITO004. The trainee is then deemed to have an "active" training agreement during the six week period.

  Trainees who are employed, and receive industry training, outside of New Zealand are not eligible for Industry Training funding. 

• [2]

  Rule ITO018: STM funding calculation and programme duration

  The number of Standard Training Measures funded per valid enrolment per year is the total number of credits in the programme divided by the average number of years needed to complete the programme ("duration"), divided by 120.

  The duration is initially nominated by the industry training organisation (ITO) when seeking funding approval from the Tertiary Education Commission (TEC) for the programme. It may be reset by the TEC in consultation with the ITO.

  If the average duration for trainees, as calculated at the end of any calendar year, is more than one month longer than the nominated average (and the TEC has not allowed an exception), the TEC may do either or both of the following:

  • use the actual average number of full months duration for calculating funding for that funding year, and recover excess funding
  • reset the programme duration, in line with the actual average duration, for calculating future funding.
• [3]

  Rule ITO017: Trainee eligibility and achievement

  Industry training funding is only provided for active trainees achieving credits, in a programme approved for funding by the Tertiary Education Commission (TEC), in the year for which funding is claimed by the relevant industry training organisation (ITO). Trainees not achieving credits are not eligible for funding unless either of the following applies:

  • Eighty percent or more of trainees enrolled with the ITO in the year for which funding is sought and the previous year (combined) have evidence of credit achievement
  • The TEC has allowed an exception.

  Funding paid for ineligible trainees is recoverable by the TEC.

• [4]

  Rule ITO016: Funding limit on enrolments

  An industry trainee can attract industry training funding for a maximum of 5.833 credits per month (i.e. 70 credits in any one 12 month period).

  A trainee may enrol in more than the limit by enrolling in multiple programmes, but the additional credits cannot be claimed for funding unless the Tertiary Education Commission has allowed an exception.