Funding for skills development in Budget

More money for skills development - through the workplace and tertiary sector - are a feature of this year's budget.

Tertiary Education Minister Pete Hodgson today announced $168 million over the next four years for more workplace training and $591m additional operating funding over five years for the tertiary sector.

Mr Hodgson said the workplace training funding would boost productivity by helping workers develop the skills needed in an increasingly complex work environment.

The funding would support the Skills Strategy, which looked to boost skills across the spectrum - from literacy and numeracy to more technical workplace skills.

Mr Hodgson said $47m of the tertiary operating funding would go to the university Performance Based Research Fund, boosting it to $250m a year.

Other previously announced initiatives aimed at boosting economic performance that get funding in the budget include:

* $15.5m capital funding to tertiary institutions over four years;

* $155m to make tertiary education more affordable for students.

- NZPA