$55m skills fund move angers industry

Manufacturing chief John Walley says trade skills are one of the main drivers for productivity. Photo / Natalie Slade

The $55 million the Government is to redirect from funding industry training to universities will damage New Zealand's economic productivity, says a manufacturing industry group chief.

John Walley, chief executive of the New Zealand Manufacturers and Exporters Association, said high levels of productivity were essential for sustainable growth. "Trade skills are one of the main drivers for productivity, especially for a country with a small population," he said.

"Trade and technician skills feed through immediate benefits to industry, the community and the economy."

When announcing the funding relocation, Tertiary Education Minister Steven Joyce said there was less demand for industry-based training as New Zealand recovered from the recession.

The Government says almost 3000 new university places will be created through the funding relocation.

"That trend will likely start to reverse again over the next few years," he said. "We are committed to keeping a close eye on these trends and responding to the training needs of New Zealanders."

But Walley said the impact of the apprenticeship funding cut would be immediate.

"There's already difficulties brewing," he said.

Council of Trade Unions secretary Peter Conway said the Government's decision to relocate the funding was short-sighted.

"Our major concern is that with 256,000 jobless people out there we need to keep up the investment [in industry training] both to help them get job opportunities and also avoid skill shortages as we come out of the recession," he said.