Skills Boards to Transform Workforce Development

The government’s announcement of eight new Industry Skills Boards (ISBs) is either a game-changer for vocational education or yet another half-baked reform that risks falling flat. Vocational Education Minister Penny Simmonds claims this will give industries a "strong voice" in work-based learning, but will it actually deliver? Let’s break it down.  

What is the Promise?

Industry-Led Training for a Stronger Economy. Simmonds argues that the ISBs will put power back in the hands of employers and local providers, dismantling the much-criticized Te Pūkenga model.

The idea!? Simple! Allowing industry experts decide what skills are needed so training actually aligns  and benefits with real-world demands.  

The Upside

• Industry-led training that actually matches workforce demands.

• Faster decision-making and more local control.

• Better pathways from learning to employment.

• Overall improvement of economic growth as needed.

• No unnecessary courses.

• With a mix of public funding, fees and levies, ISBs could be more financially sustainable than past models.

Then there has to be a Downside

• Risk of inconsistency across sectors and regions due to 8 separate boards joining forces.

• Funding could be a challenge as ISBs will solely rely on public money, industry levies and possible user fees.

• If big corporations dominate these boards, will they prioritize their own needs over broader workforce development?

• Uncertainty during the transition from Te Pūkenga’s current role.

Remember that originally Te Pūkenga was supposed to fix vocational education too. How do we know this won’t just be another expensive rebranding strategy?

Will Some Industries Get Left Behind?  

The ISBs will cover major areas like construction, health, IT and manufacturing, but what about emerging fields like AI, green energy or creative industries? If the boards are too tight, they might lag behind innovation, leaving New Zealand playing catch-up in fast-changing sectors.  

There’s no doubt New Zealand’s vocational education system needs to evolve. The real question is whether this shift to industry-led boards will offer the flexibility and innovation we need? If the government can ensure consistent quality, fair funding, and strong coordination between boards, this could be the kind of bold reform that brings real change. But if it becomes a rushed decentralisation without the right guardrails, we risk repeating old mistakes in a new format.

All we can do is wait and watch.