More apprentices welcomed, but 'too little, too late'

Prime Minister John Key is promising cash incentives to encourage people to take up apprenticeships under changes announced on Friday.

But Opposition parties say they the Government is playing catch-up and the changes are too little, too late.

From January 2014, Modern Apprenticeships and other apprenticeship-type training will be combined under a new scheme called New Zealand Apprenticeships.

In his first major speech of the year, John Key told an audience in Auckland that overall subsidy payments to the scheme will be increased by $12 million in the first year, and that will rise over time.

To encourage people to take up apprenticeships, he said the Government would give the first 10,000 who enrol from April this year $1000 toward their tools and off-job course costs, or $2000 if they are in priority construction trades.

The same subsidy will be paid to employers to encourage them to take people on.

Mr Key estimated that about 14,000 more apprentices than predicted will begin training in the next five years due to the changes announced.

Skills and Employment Minister Steven Joyce says age restrictions on apprenticeship subsidies will be dropped under the changes.

At present, modern apprenticeships are only available to those who begin their training between the ages of 16 and 21. Industry training organisations (ITOs) receive a top-up in funding to provide these people with training and advice.

Mr Joyce says another change will be that apprentices of all ages will now be funded at the same rate, and that will require extra funding.

"Across the total of apprentices the amount paid to the ITOs goes up by about 20 percent. It's a little bit down for the younger ones and a lot higher for the older ones and they'll be required to provide the same partial care as they did previously.

"So it's up around $12 million a year the ITOs will get more to look after those apprentices. Of course, that doesn't actually go to the apprentice - it never has."

Business New Zealand says more funding and focus on apprenticeships is the right approach and will help get more people into needed skill areas.

Too little, too late - Greens

The Prime Minister says there is a big opportunity over the next five years to train more New Zealanders in vocational careers, especially with the rebuild of earthquake-hit Christchurch.

But Green Party co-leader Metiria Turei says the rebuild is already underway and the Government's revamped apprenticeship scheme is "too little, too late".

"This is why they needed to invest in this four years ago ... The Christchurch rebuild is underway right now and people are needed right now for this work.

"And they could have been ready and available if the Government had any sense at the time that it came into power."

The Labour Party says the Government is playing catch-up with its announcement to boost apprenticeships.

Skills and training spokesperson Grant Robertson says Modern Apprenticeships have already declined by 20% under National's watch.

"It is obviously good that they're trying to put more money into this area, but the reality is they are playing catch-up.

"And there's also a bit of smoke and mirrors going on here because, effectively, National is reclassifying most people who are doing industry training as apprentices.

"So it's going to be pretty difficult over the next few years to work out exactly how many more apprentices we actually have."