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 and Apprenticeships 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 11B of the Industry Training and Apprenticeships Act 1992 are to:

  • developing and maintaining skill standards for their particular industry or industries that are able to be registered by the New Zealand Qualifications Authority (NZQA) and used in the assessment of trainees
  • developing and maintaining arrangements for the delivery of industry training to that will enable trainees to achieve the relevant skill standards to be met.

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)(b)and (c)). Many 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) 

  • Last changed: 16 June 2015
  • Last verified: 16 June 2015