ITO Governance

Industry training organisations (ITOs) are a category of organisation in the tertiary education sector in New Zealand. ITOs are formally recognised under the Industry Training Act 1992, and the Education Act 1989 which provides for them to be partially funded by the Crown through the Tertiary Education Commission (TEC).

ITOs are not owned or governed by the Crown. Unlike universities, polytechnics and wānanga, the Crown does not appoint the Board or board members of ITOs. They are essentially private industry based organisations, with no legal structure prescribed in legislation except that they are required to be a “body corporate”. Incorporated societies, registered charitable trusts and companies are all “bodies corporate”. The majority of ITOs are incorporated societies, but there are also a small number of ITOs which are either charitable trusts or companies.

The legal context and governance arrangements for ITOs have some features in common with other tertiary education organisations because they also have a funding relationship, through their Investment Plans, with TEC. The critical distinction between ITOs and other tertiary education organisations is that ITOs do not themselves deliver industry training. Their functions under Section 6
of the ITO Act are to:

• Set skill standards for their particular industry or industries that are able to be registered by the New Zealand Qualifications Authority (NZQA)
• Develop arrangements for the industry training to be delivered and for the skill standards to be met, including arrangements for monitoring and assessing trainees
• Providing leadership within the particular industry or industries on matters relating to skill and training needs.

ITOs, like other tertiary education organisations have a funding agreement with TEC and although ITOs are in part, funded by TEC to carry out their functions, they are not funded by TEC to deliver the training themselves (Section 10(2)(d)). Most of the legal requirements and rules that flow from the Education Act and which apply to other tertiary education organisations do not apply to ITOs.

ITO Governance Guide (PDF, 508 Kb) 

Governance Assessment Tool for Industry Training Organisations (Excel, 191 Kb)