2010 competenz annual report - final

Annual Report 2010

Contents pageChairman’s report 1

CEO’s report 2

A stronger drive for completions on all levels 5

Key statistics 6

Performance at a glance 7

Trade training supports learners and employers 8

New qualification to boost manufacturing sector core skills 10

Productivity focus for our first white paper 11

Listening to stakeholders 12

Connecting with industry online 14

Strengthening industry bloodlines 15

Competenz Board Members 16

Summary Financial Statements 18

Annual Report 2010 1

Chairman’s report

Last year, I reported a year of refocusing, reinventing and reconnecting Competenz. This strategy set us in good stead for 2010 – a year in which the Tertiary Education Commission turned the spotlight on industry training and Industry Training Organisation performance.

We were well positioned to withstand the scrutiny, with reserves set aside to complete unfinished training and a deficit budget to ensure this was possible. As a result, the total number of qualification completions across all our sectors soared by 264%.

I believe our organisation will deliver on our mission to ‘increase the number of completions within duration’ and our vision for the future.

Our aspirations also extend beyond the statistics of training to the process and environment in which training happens in the workplace.

New Zealand needs an over-arching philosophy or plan around training and learning in order to improve productivity. The silos that exist between industry, universities, schools, and ITOs need to be broken down to create an environment of collaboration for the benefit of trades training. Universities need to work far more closely with industry, and trades training needs to include a more academic approach at higher levels.

Currently, the funding mechanisms encourage this silo mentality and until this changes, a holistic approach, with practical and theoretical depth, cannot be thought about, let alone implemented.

There is no doubt we need the higher qualifications for vocational training but it would be short-sighted to ignore the value of Level 1 and Level 2 qualifications.

The under-represented groups in industry training of Maori, Pasifika, women, and under-25s often enter the workforce with low self esteem and a fear of formal learning. A start on the learning ladder at Level 1 and 2 gives these learners the confidence to progress further and develop a broad spectrum of skills.

Enlightened employers know learning is a continuous process and that industry training, in particular, is not a stop/start activity. However, there is still a disconnect between industry and training with a belief that training will almost happen by osmosis.

The year ahead looks challenging with an uncertain economic recovery and funding cuts for industry training.

I believe we have to take Lord Rutherford’s advice: “We haven’t got the money, so we’ve got to think!”. This entails a holistic and innovative approach to develop lifelong learning within industry to ensure NZ has an increasingly productive workforce that is driving our economy forward.

Austen Banks Chairman

Annual Report 20102

CEO’s report

A Focus on PerFormAnceIn 2009 our focus was on rebuilding Competenz and developing strategies for a step change in performance. In 2010 our focus was on implementing those strategies for the benefit of industry and the employees in it.

People obtaining qualifications is our key measure of success and in 2010 we lifted this measure by 264%. To put this into context, 5,493 trainees and apprentices completed national qualifications in 2010, compared to only 1,514 trainees and apprentices who completed national qualifications in 2009.

It is true that we were starting from a low base but the 264% improvement is testimony to a good plan and a committed team. Our challenge in 2011 is to build on that success and lift Competenz to the top echelon of ITO performance.

Internally, we sought to improve the efficiency of our processes. We reduced our overheads and streamlined the way we develop qualifications and worked with customers. The result was a real reduction in overheads allowing Competenz to channel the government subsidy to the achievement of training outcomes – the value-add for industry. The work done in 2010 has allowed us to further reduce overheads in 2011 and beyond.

FinAnciAl PerFormAnceA number of factors contributed to a significant loss in 2010.

� Enrolments, particularly in apprenticeships, were down 20% with a corresponding reduction in revenue.

� The Competenz Board transferred $3.2 million from its reserves to complete the training of employees who could no longer attract government funding. In effect, Competenz had collected the revenue for this in previous years and not spent it on the intended outcomes.

� Competenz has also made provision for a $2.6

million potential repayment to TEC for trainees who were possibly ineligible for funding. We are working through this with TEC.

The final financial result was disappointing, but showed a commitment from the Board to address issues of underperformance and compliance, and to deal with legacy issues from earlier years.

In 2011 Competenz is budgeting for a surplus and the organisation is intent on achieving outcomes within industry and government revenue. This has required us to increase our fees for 2011 and to change our way of delivering core services.

rebuilding the core cAPAbility oF the itoWe successfully returned all apprentice management to Competenz from Skills4Work and in the process reduced the high duplicated costs that resulted from the arrangement with Skills4Work. In May, the ATNZ Group Apprenticeship Scheme and Accelerator Schemes returned to Competenz along with the staff. This was a major change for Competenz and it allowed us to divide our business operations into our two major and focused customer groups: Apprentices and Trainees. These groups have very different training needs and the split has allowed us to get closer to both groups of customers and further lift the level of performance outcomes in 2011.

the government Policy And its Agencies

tertiary education commission (tec)The spotlight was put on ITOs in 2010 by the government agency the TEC. ITOs have long been left alone by the TEC to grow in order to meet the skill needs of the economy. The recession and the change of government led to a much closer scrutiny and a desire for much greater value for money.


The key changes are:

� The government subsidy rate for industry training is frozen for the foreseeable future.

� Industry is required to provide a minimum cash contribution of 30%.

� The ITO repays funding for trainees / apprentices who do not achieve any credits within the year.

These changes are not draconian, although they put a higher test on industry training than is required of Polytechnics and Universities. Competenz has approached 2011 with a view to lifting performance within the new regulations.

new Zealand Qualifications Authority (nZQA)Changes to the way qualifications are developed, which are being introduced through the targeted review of qualifications undertaken by the NZQA, is something industry should be really concerned about.

The changes in procedure undermine the independence of ITOs to negotiate national standards with industry. The changes also give Polytechnics a greater say in determining the content of qualifications. The outcome could well result in increased bureaucratic costs, and lengthy delays in reviewing and developing qualifications. These issues were assumed, by industry, to have been resolved with the establishment of ITOs.

Competenz will continue to advocate for a streamlined approach and for the interests of the primary industries in the process.

Future issuesThere is no question that tertiary sectors as a whole and ITOs in particular need to improve performance and return greater value for money to the tax payer.

There are four areas where the government needs to put the spotlight on its agencies to lift performance, and re-think policy.

1. Trades Academies – these are a welcome initiative but have been introduced in an ad hoc manner with little real benefit in improving the pathway of young people from school to skilled work.

2. The Modern Apprenticeship Programme Scheme (MAP) – another excellent concept that continues to be managed in a way that increases complexity, cost and confusion to employers.

3. The true cost to employers of engaging in industry training – this is poorly understood by government and there is a resistance to looking closely at it by government agencies.

4. The vocational education system – NZ does not have a system to train people during a downturn in the economy resulting in skill shortages as economic conditions improve. The legacy of this will be sorely felt by the need for skilled people to rebuild Christchurch, meet the needs of a growing economy and replace the exodus of skills to Queensland.

Our industries are clear that they would like to see a simplified vocational training system with clear pathways from school to skilled work. The framework for this does not exist and the will to change seems weak.

Competenz is actively working with its industry associations and members to achieve a better and fairer system of vocational education in New Zealand.

looking AheAdCompetenz is committed to continually lifting its performance and our measure for 2011 requires another step up by our employees. Our reason for existence is to add value to people’s work and to assist in lifting productivity and profitability in business, while giving employees transportable knowledge and skills.

The economic environment remains challenging and government policy is a moving target. We see this as our business environment and we plan for success in a dynamic and changing world.

In 2011 we will continue to advocate for a simpler and better vocational system which may result in fewer ITOs, making the interface with industry much simpler.

In summary, 2010 was a successful year and a big step forward for Competenz. The success was achieved with the assistance of a committed Board and strongly committed team at Competenz who remained focused on the real job through a myriad of government changes and internal changes.

John Blakey CEO

Annual Report 20104


In a year focused on improving performance, lifting learners’ completion rates was an immediate priority for Competenz. Our traineeship team was tasked with the hard but necessary task of addressing a legacy of over-duration trainees, while putting strong support measures in place to ensure all other trainees would be on track to complete within duration.

This meant getting a number of over-duration trainees ‘over the line’ but also working through those who were unlikely to ever complete.

They achieved tremendous success, working closely with employers in the metals, food and beverage manufacturing, rail, maritime and baking sectors nationwide to get 4,588 of their employees completed in 2010, compared with only 826 in 2009. This represents a 455% increase in trainee completions.

Our trades team faced a similar challenge while also having to implement further changes to improve our service to mechanical engineering apprentices and their employers.

They too surpassed our 2009 figures, with 894 apprentices completing their qualifications in 2010 compared to 650 apprentices in 2009.

This represented a 37.5% increase in the number of qualified tradesmen and women working at the coal-face of New Zealand’s mechanical engineering industry.

Their combined drive for completions delivered a 264% overall increase in completions from 2009, a significant inroad that demonstrated Competenz’s commitment to lifting its performance.

To help lift completion rates within duration, we focused on creating more seamless and achievable qualifications with industry, and improving the level and types of support we

provide to learners, employers and workplace assessors throughout the training journey.

Establishing clearer training pathways to allow learners to move more seamlessly from Level 1 through to more advanced training at Level 4 and beyond was the challenge that lay before our people who develop and review our qualifications. Significant work went into reviewing the structure, content, and achievability of our qualifications in consultation with industry and other ITOs.

The launch of a new Level 2 National Certificate in Manufacturing Core Skills qualification was the purest example of our new way forward for qualifications development. The lower rungs of our qualifications ladder for the manufacturing sector as a whole were broadened and strengthened – more details on this follow later in this report.

Workplace health and safety compliance training was built-in to all of our industry qualifications at Level 2, to ensure learners and employers could learn in a context relevant to their everyday work, while making progress into higher level industry training easier.

In May we launched the new Level 5 National Certificate in Mechanical Engineering with strands in Engineering Fabrication, Maintenance Engineering, Precision Engineering, Mechanical Services and Fire Protection ahead of schedule. This qualification rationalised eight Level 5 mechanical engineering qualifications on the framework down to one, with strands to cover the specific skill and knowledge sets needed by our distinct customers within the mechanical engineering sector.

The total credits required to complete the qualification was also reduced to 78 from the previous range of 100 – 110 credits for any one of the eight old qualification options.

Whilst the drive for completions is good, a lot of additional work also went into assuring industry standards continued to be met.

In 2010 Competenz developed and reviewed 128 sets of assessment guides and model answers and obtained 53 sets for non-SSB qualifications to support workplace assessors in their roles. Also, 17 sets of all-new, pre-moderated learning resources were produced for learners and providers to use.

A stronger drive for completions on all levels

The combined drive for completions delivered a 264% overall increase in completions from 2009 for 2010.

Annual Report 20106

Key statistics

23%

27%

14%

5%

69%

Food and Beverage (incl. Baking)

Engineering

Manufacturing

Transport (Rail / Maritime)

European

Maori Male

Pacific Islander

Asian

Other* Comprised of OSH, Competitive

Manufacturing, First Line Management, Distribution qualifications

31%Non Competenz qualifications*

Distribution of learners by sector

51%

13%

Female21%

79%

11%

2%

23%

25%Under 25

22%25-35

23%35-45

20%45–55

10%Over 55

32% 33%

10%

24%

1%

Level 1Level 2

Level 3

Level 4

Level 5

Distribution by qualification level

Statistics on this page are for 2010

16,760learners

GEnDER

AGE

Ethn

iCit

y


Performance at a glance

* Comprised of OSH, Competitive Manufacturing, First Line Management, Distribution qualifications

Total

Total

2009 2010



Level 2

Standard Training Measures (STM’s)

Non Competenz qualifications*

Total

Engineering

Engineering

Level 1

Manufacturing

Manufacturing

Level 3



Level 4

Non Competenz qualifications*

Level 5

Standard training Measures

Credit achievements

Qualification completions by sector

Qualification completions by level

4,374

5,901

232,000

228,844

619781

4792,661

77,57555,668

2651,439

1421,445

18,72513,425

112502

233502

10,614

12,500

5058

658878

4682,713

27

82,93775,637

421,851

386,074

1,5145,493

1,5145,493

Qualification completions improved by

264%

Annual Report 20108

trade training supports learners and employersIn 2010, Competenz took a hard look at the way apprenticeship training was packaged. This entailed researching the service provisions under its existing mechanical engineering apprenticeship programmes, establishing the true costs to meet those provisions for customers, and determining how consistently industry standards were being met.

Changes were proposed to streamline our Base and Accelerator apprenticeship programmes to increase support and mentoring for apprentices, increase value for money for employers, and be more consistent in the quality of the assessment process.

Five separate focus group meetings were conducted with employers nationwide to discuss the proposed changes. Their feedback indicated the changes were welcomed, especially the increased focus on nurturing apprentices through to timely completion.

Quite simply, the outcomes for apprentices and employers had to improve – only 60% of apprentices were completing their training within the specified time. The reasons given by customers included complicated bookwork, lengthy block courses that take apprentices away from their jobs, lack of flexibility with unit standards, and lack of support around evidence gathering.

To mitigate these shortcomings, the new Elev8 scheme was formally introduced in February 2011.

Elev8 replaced the previous Base and Accelerator apprenticeship schemes, offering clearer, and stronger service provisions for a flat annual fee to customers who prefer to directly employ an apprentice. These include:

� A Strength Test conducted to make sure the apprentice has the right attitude and aptitude, and the seconding company has the right equipment for the qualification.

� Four visits a year to apprentices by a Competenz account manager to ensure targets are being met and steady progress is being achieved. Discussion around any issues, and helping the apprentice match the jobs they’ve completed to unit standards, and complete their paperwork.

� Free assessments by a Competenz assessor to assure national industry standards are being met, eliminating the need to take skilled tradesmen off the job to perform this function.

The Apprentice Training New Zealand (ATNZ) scheme, acquired in May 2010 and now managed by


Competenz recently launched and distributed a Roll of Honour booklet to celebrate all graduates who completed Level 4 or higher qualifications within our industry coverage in 2010.

The publication formally recognises the time, effort, and dedication learners put into completing their industry-based training as well as their employers for providing support, encouragement and skills-sharing throughout their learning journey.

A total of 883 graduates were listed in the Roll of Honour under the higher-level qualification they completed. These ranged from mechanical engineering disciplines to competitive manufacturing and business first line management; from baking to locksmithing; from fire protection to rail operations and maritime watchkeeping.

Along with the Roll of Honour, an alumni group publication was launched – The Guild – along with a dedicated Facebook page – ‘The Guild – Competenz Alumni Group’ – to build a community and an interactive information sharing platform for our high-level graduates.

The Guild publication celebrates some of the special training achievements of recently completed learners, and was distributed to the graduates and their employers along with their Roll of Honour booklet.

The Facebook page for the group aims to link graduates with their industry peers, and keep them up to date with current trends in their field of expertise, technology and management philosophy.

Industry-based training achievements are often overlooked when compared to their university graduate peers, despite the comparable commitment learners must make to successfully complete their studies.

We believe all industry graduates and their employers should be proud that they are playing an important role in lifting industry skill levels and driving New Zealand’s economic growth.

Competenz, continues to directly employ apprentices and second them to employers who need an apprentice without the hassle of employment formalities.

Competenz account managers now perform the monthly visits to support each ATNZ apprentice and their seconding employers throughout the apprenticeship. Competenz assessors are also responsible for the assessments.

These service provisions across both Elev8 and ATNZ apprenticeship programmes would help Competenz in delivering more consistency in the quality of the assessment process in an effort to lift trade skills nationwide.

These measures would also ensure that passing a qualification translates into skilled tradesmen and women in industry who can perform the required on-job tasks.

Block course durations were reduced so that apprentices are not pulled off the job for as long, particularly in their first year where the required competencies can be readily imparted and verified on-the-job.

Finally, Competenz continued to work closely with industry to develop and review its mechanical engineering qualifications and industry standards, while improving manuals and learning resources to support the delivery of its trades training programmes.

Competenz Graduates of 2010

Roll of Honour

Apprentice’s Antarctic mission

Recent graduates tell their stories

Why the future of Trades education is online

The GuildA

utumn 2011

NeWs ANd iNsighTs foR The CompeTeNz CommuNiTy

BlacksTool

Taking on the world’s best

industry training graduates deserve recognition too

Annual Report 201010

new qualification to boost manufacturing sector core skills The new National Certificate in Manufacturing (Core Skills) (Level 2) was developed in record time and launched in the third quarter of 2010.

There has always been room to improve skills training for employees within the wider manufacturing sector. There is also a desire from industry for a more streamlined training pathway from foundation to higher industry learning, to meet the needs of employees both within and outside of Competenz’s current industry scope.

The consultation phase for a universally relevant manufacturing qualification called for one of the most robust and comprehensive approaches undertaken by Competenz. The work performed and led by our team resulted in the delivery of a qualification that is truly by industry, for industry.

Ten ITOs, each with a stake in industry training for the wider manufacturing sector, were initially consulted to develop the new qualification content and structure.

Through this early work, our team came up with a proposed structure, which was then submitted to customers across this sector nationwide for further consultation and feedback.

Their feedback coupled with more in-depth industry stakeholder consultation ensured the qualification structure was approved to be submitted by Competenz for NZQA registration.

The Boating ITO, Forestry Industry Training and Education Council (FITEC), the NZ Motor Industry Training Organisation (MITO), and the Plastics and Materials Processing Industry Training Organisation (PAMPITO) provided strong support and input to the qualification development and industry consultation phases, and their valuable contributions are acknowledged.

The National Certificate in Manufacturing (Core Skills) (Level 2) was successfully registered on the NQF in August 2010, and is an example of how Competenz intends to build more effective training pathways – by broadening and strengthening the rungs of our qualifications ladder from the bottom up for the entire manufacturing sector.

The qualification covers core manufacturing skills and basic workplace health and safety. The qualification also features A and B Electives with a wide range of units to accommodate the specific skills and knowledge required by the different sectors within the manufacturing industry.

It was a great result for Competenz and for industry, and just the start of the manufacturing sector training pathway developments that our team intends to lead into 2011, and beyond.

At present the Level 3 qualification is in the very early stages of research and industry consultation, as part of our overall service to this sector.


Productivity focus for our first white paper

In 2010 Competenz commissioned a survey of 200 medium-sized firms employing between 20–50 people to gauge their perceptions on how to boost productivity, and uncover what they actually invested in to make productivity improvements.

The findings from this research underpinned Competenz’s first published white paper focusing on the issue of lifting productivity, the challenges our businesses face, and the role ITOs could play to provide guidance on making productivity improvements.

Entitled Perceptions of productivity – How medium-sized businesses approach productivity, the paper reveals that the majority of respondents identified ‘better trained people’ as a key way to improve productivity, yet most went on instead to invest in changing business processes over training their people.

The key findings suggested that an investment in people rather than processes is the key driver in improving productivity.

Businesses that experienced high growth rates within the last two years favoured investment in people and ended up making more business process improvements than high decline firms, who favoured investment in process changes yet experienced less improvements in this area.

This result suggests upskilling staff is paramount for reaping the full benefits of investment in processes, and for the long-term health of a business.

Industry feedback indicated that staff upskilling has the further effect of promoting innovative behaviour while the investment in skills also creates workers who are more capable and able to adapt to new technology.

Therefore investing in upskilling people should be an attractive proposition for business owners.

There is a perception in industry that it is harder to train people than it is to change business processes. There is also clear evidence that businesses don’t know where to turn to for guidance on training.

Worryingly, the survey also found that 78% of respondents would seek advice on lifting productivity but did not know where to turn for help; the remaining 22% said they would not even ask for assistance for a range of reasons (unaffordable, unimportant or the firm was too small).

Currently companies face a confusing array of consultants, gurus and disparate agencies when they are looking for sound and objective advice on improving their staff and processes.

This presents a strong case for ITOs being tasked to present independent and well-researched guidance.

The new Productivity Commission, scheduled to begin operating in early April 2011, could be beneficial for industries if it provides leadership and direction. However, it will not work if it becomes a regulatory framework standing in the way of businesses increasing productivity.

The effective development and utilisation of workplace skills is vital to improving New Zealand’s competitiveness and requires a focussed effort and strategic approach across training institutions, industry, unions and government.

The key findings suggested that an investment in people rather than processes is the key driver in improving productivity.


Listening to stakeholders

Engaging with and listening to our stakeholders, to learn where and how we could improve our services and add better value, was necessary to lift our performance.

In 2010 we conducted a customer satisfaction survey which covered traineeship customers, trade customers, apprentices, and inactive customers. In all, 315 people from across our industries were surveyed.

Overall, 78% of all those surveyed were satisfied with our service levels. However, a high proportion (10%) expressed a level of dissatisfaction which was of immediate concern to us.

The issues highlighted by dissatisfied customers led us to concentrate on setting clearer service level expectations, particularly around managing how often we contacted customers throughout the duration of their training.

We learned that employers in the traineeship sector rely on our customer support centre more than any other group. Thus, improvements to all our support systems outside of direct contact with an account manager were needed.

We also learned that our ATNZ customers were very satisfied (98%) with the service they receive, and 80% of past customers surveyed said they will look to us in the near future for their employee training needs.

During the year, we also held focus group sessions in five centres nationwide following the survey, to zero-in on the key issues and present some proposed service

improvements for trade employers and apprentices.

The new Elev8 apprenticeship programme was launched as a direct result, setting clearer service provisions such as the number of annual workplace visits and types of support both apprentice and employer can expect from a Competenz account manager or assessor through to completion of the apprenticeship.

Competenz also improved its systems and processes in 2010 that will ensure that key learner details and timely training progress updates are entered and maintained more thoroughly throughout their training period. In tandem with our new CRM system developments, we are better positioned to meet the information needs of customers and key stakeholders like the TEC in 2011.

Our qualification developers had a busy and productive year in 2010, and the quality and quantity of qualifications they successfully launched or reviewed is testament to that.

The fruits of their consultation work with sector advisory groups (SAGs), qualification advisory groups (QAGs), ITOs, industry associations, NZQA, TEC, and customers within and outside of our gazetted coverage, continue to help us add better value to our industries into 2011.

We sincerely thank everyone who has taken the time to help us improve our service not just for their business, but for the good of industry.


The new Elev8 apprenticeship programme set clearer service provisions, such as the number of annual workplace visits and types of support both apprentice and employer can expect from a Competenz account manager or assessor.


Connecting with industry online

We made great strides in 2010 to strengthen our e-presence and strategically lift our visibility, adopting a more customer-centric approach to sharing online information about our services to industry.

Competenz launched a new website late in 2010 to talk to our distinct audiences, whether they are interested in trades training or broader manufacturing skills training options.

The information needs of employers and potential learners are addressed with more intuitive, visual cues leading the viewer through smaller ‘chunks’ of easy-to-follow information.

Customer feedback so far, along with a 100% growth in monthly unique visitor numbers to our website compared to monthly traffic in 2009, suggests that Competenz is on the right path to keeping even more customers better informed online.

A key part of our strategy was to move into the social media space, namely Facebook and YouTube, to reach and engage more with our past and present learners.

The ‘Antarctic Apprentice’ page, launched in September, was our first venture into the social media landscape, followed by a dedicated page for our alumni who achieved Level 4 or higher qualifications in 2010.

Social networking will give us insights into what learners and industry really want to know, and help us to continuously improve our online presence.

CompetenzSkills – our YouTube channel – hosts a number of career case study videos, employer testimonials about industry training, and other video resources to inspire customers. It also sparks thinking on industry issues, like lifting productivity or building and retaining skilled employees.

These three key online platforms link seamlessly together, and integrate well with our new customer e-newsletters.

In 2010 Competenz also started laying down the basic platform for a mechanical engineering eLearning module for future apprentices. Although the final product will not be ready until 2012, it is a vital step in our strategy to work in the online space even more to reach and engage with industry.


Strengthening industry bloodlines

Competenz continued to work closely with schools and youth employed in industry throughout 2010, to ensure they are being well equipped for a life-long career in industry.

Our Tools4Work schools’ brand of pre-moderated resources, supporting assessment of Level 1 and Level 2 mechanical engineering units in schools, continued to be widely used by teachers.

Significantly, the Level 2 units count toward the first year of a mechanical engineering apprenticeship when the student is ready to enter the workforce. 387 registered users, mostly technology teachers from high schools nationwide, accessed and used these resources from our Tools4Work website in 2010.

The 1,000th high school student completed their Level 1 National Certificate in Mechanical Engineering Technology (NCMET) in 2010 using the Tools4Work resources – a milestone that is testament to the programme’s success in equipping students for an apprenticeship while still at school.

Our ‘Antarctic Apprentice’, Joel McGregor of Oamaru, successfully served 20 weeks on the icy continent from October 2010, supporting Antarctica New Zealand’s maintenance and engineering crew in their summer

workload. He also worked through the final stages of his ATNZ general engineering apprenticeship.

Competenz played a key role in ensuring the best young mechanical engineering tradespeople would have the chance to represent New Zealand at the 2011 WorldSkills competition, due to take place in London in late 2011.

We organised the Auckland regional WorldSkills competition for the welding category, held in July with the support of the Manukau Institute of Technology. This supported our apprentices nationwide who competed in their respective regional welding, fitting, and light fabrication (sheetmetal technology) skill categories through to the national competition in September.

We congratulate Brad Wood (South Waikato Precision Engineering – Tokoroa), Mathew Pascoe (Readymix Concrete – Christchurch), and William Taylor (Etech Industries – Palmerston North, pictured below) who each took out their respective skill categories and will represent New Zealand at the 2011 international WorldSkills event.

We also congratulate Competenz industry manager, Steve Brooks, who will represent New Zealand at WorldSkills for the second time in London as a light fabrication (sheetmetal technology) skill expert and judge.


Austen bAnksCompetenz Chairman, Austen Banks, is passionate about industry training and the contribution ITOs can make to vocational learning and productivity in the New Zealand economy.

Austen is a Board member of the Industry Training Federation (ITF), and his involvement at Chair and Board level with a number of business and charitable organisations has given him strong and applied interests in governance. He brings to the board a substantial amount of practical and directorial experiences combined with advanced academic study in governance.

He has a Bachelor of Applied Management degree from Otago Polytechnic and a Postgraduate Certificate in Tertiary Teaching from the University of Otago. Austen has also attended the Harvard Business School – Corporate Governance.

John blAkeyJohn Blakey is CEO of Competenz and a member of the Board. He has over 20 years’ experience in vocational education and training.

John has played a pivotal role in the evolution of industry training in New Zealand over the years. Prior to joining Competenz he was the CEO of FITEC, the forestry industry training organisation, for nine years.

He was a two-term Tertiary Education Commission commissioner and Board member, and past Chair of the Industry Training Federation. He has led the industry training policy position on the Tertiary Education Advisory Commission and its successor, the Tertiary Education Commission.

Peter herbertPeter Herbert is Technical and Design Consultant for Specialised Components, a company he established and owned for 26 years until its recent sale. A qualified toolmaker, he was previously a director and shareholder of Rosebank Plastics Limited, and Director and initial shareholder of PET moulder LinkPlas Limited.

Peter is a past Chairman of the New Zealand Engineering Federation, leading this group to amalgamate with the Canterbury Manufacturers Association to form the NZMEA (New Zealand Manufacturers & Exporters Association).

He is an Executive member of NZMEA and a Board member of HERA (the Heavy Engineering Research Association). He has been involved in developing qualifications for Competenz since its inception.

Peter is also Chair of the ATNZ Trust which currently employs 340+ apprentices and seconds them to employers.

Competenz Board Members


diAnA hudsonDiana Hudson, who joined the Board of Competenz in January 2007, provides important expertise in the area of employment law.

She is Managing Solicitor at the Otago Southland Employers Association (OSEA) and is a past member of the Association’s Board. Prior to this, she was employed as the Human Resources and Compliance Manager for the Mainland Poultry Group of companies, based in Dunedin. This is a role with significant responsibilities in a food manufacturing and exporting environment and her experience has been valuable in helping Competenz meet its responsibilities to this sector. Diana is also a past Board member of the Otago Polytechnic Council.

kevin kennedyKevin Kennedy is a Director of Competenz and of FRSITO. He is on the formation Board for the NZ IQP registration board, is the past President of FPANZ Protection Association, and also recently retired as Managing Director of Firetech Training Ltd.

Kevin started his career as an electronics tradesman and then as Aircrew in the RNZAF. Following this, he spent five years as a Technical Officer with the Insurance Council of New Zealand before joining an international insurance broker as a manager and then Director. Following this, he accepted a position in Singapore as Manager of Loss Prevention (Asia) for an International insurance broker.

On his return from Asia, he spent 15 years as Managing Director of a fire protection inspection company before retiring. Throughout that time, he was President of the FPANZ with direct responsibility for developing fire protection industry training. He is a trustee for the ATNZ Trust which currently employs 340+ apprentices and seconds them to employers.

bill newsonBill Newson has extensive experience in the field of employee representation, and is Assistant National Secretary for the Engineering, Printing and Manufacturing Union (EPMU).

Bill has a trade background with an involvement in ITOs and trade training since the introduction of the Industry Training Act. He has played a significant part in the development of engineering apprenticeship training trusts.

Bill is a trustee for the ATNZ Trust which currently employs 340+ apprentices and seconds them to employers, and a trustee for the Competenz Ivan Fisk Scholarship which promotes advanced engineering training.


Consolidated ATNZ Competenz

2010 2010 2010 2009

$000 $000 $000 $000

ASSETS

Current assets

Cash and cash equivalents 13,298 2,677 10,621 12,885

Trade and other receivables 1,559 1,054 514 564

Government grants due 644 - 644 729

Goods and services tax receivable 23 - 23 118

Prepayments 353 215 138 160

Intercompany receivable - - 2,817 -

Total current assets 15,877 3,946 14,757 14,456

Non-current assets

Property, plant and equipment 3,071 - 3,071 2,490

Intangibles 498 22 476 70

Total non-current assets 3,570 22 3,547 2,560

Total assets 19,447 3,968 18,304 17,016

LiABiLiTiES

Current liabilities

Trade and other payables 4,501 353 4,156 3,700

Government grants payable 4,512 - 4,512 295

Goods and services tax payable 363 363 - -

Income received in advance 177 - 177 420

Employee leave benefits 1,257 614 643 518

Lease incentive 180 - 180 218

Intercompany payable - 2,817 - -

Provisions 3,312 - 3,312 529

Total current liabilities 14,302 4,147 12,980 5,680

ToTAL LiABiLiTiES 14,302 4,147 12,980 5,680

NET ASSETS 5,145 (179) 5,324 11,336

ACCuMuLATEd FuNdS

Accumulated funds 5,145 (179) 5,324 11,336

Total accumulated funds 5,145 (179) 5,324 11,336

For and on behalf of the Board who authorise the issue of the financial statements on 9 March 2011.

Statement of Financial PositionAs at 31 December 2010

Summary Financial Statements

John Blakey CEO

Austen Banks Chairman



2010 2010* 2010 2009

$000 $000 $000 $000

REvENuE

Government grants 13,942 - 13,942 20,954

Other revenue 14,602 10,371 5,320 4,377

Total revenue 28,544 10,371 19,262 25,331

ExPENSES

Employee entitlements 18,343 9,257 9,081 6,675

Other expenses from ordinary activities 16,392 1,293 16,193 17,101

Total expenses 34,735 10,550 25,274 23,776

Net surplus / (deficit) (6,191) (179) (6,012) 1,555

Other comprehensive income / (loss) - - - -

Total comprehensive income / (loss) for the period (6,191) (179) (6,012) 1,555


2010 2010* 2010 2009

$000 $000 $000 $000

opening balance 11,336 - 11,336 9,781

Total comprehensive income / (loss) for the period (6,191) (179) (6,012) 1,555

Closing balance 5,145 (179) 5,324 11,336

Statement of Comprehensive income

Statement of Changes in Accumulated FundsFor the year ended 31 December 2010

* For the period 1 May 2010 to 31 Dec 2010



For the year ended 31 December 2010


2010 2010* 2010 2009

$000 $000 $000 $000

Net cash flows from / (used in) operating activities 1,411 661 750 1,728

Net cash flows from / (used in) investing activities (999) 16 (1,015) (1,022)

Net cash flows from / (used in) financing activities - 2,000 (2,000) -

Net increase / (decrease) in cash and cash equivalents 412 2,677 (2,265) 706

Cash and cash equivalents at beginning of period 12,885 - 12,885 12,179

Cash and cash equivalents at end of period 13,298 2,677 10,621 12,885

Statement of CashflowsFor the year ended 31 December 2010

Chartered Accountants


independent Auditor’s Report

To the Members of New Zealand Engineering Food & Manufacturing industry Training organisation incorporated (Competenz), Apprentice Training New Zealand 2010 Trust (ATNZ) and the Group

We have audited the summary financial statements of Competenz, ATNZ and the group for the year ended 31 December 2010 as set out on pages 18 to 19.

This report is made solely to Competenz and ATNZ’s members, as a body, in accordance with Competenz and ATNZ’s constitution. Our audit has been undertaken so that we might state to Competenz and ATNZ’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Competenz and ATNZ and Competenz and ATNZ’s members as a body, for our audit work, for this report, or for the opinions we have formed.

The accompanying summary financial statements, which comprise the summary statement of financial position as at 31 December 2010, the summary statement of comprehensive income, summary statement of changes in equity and summary cash flow statement for the year then ended, and related notes, are derived from the audited financial statements of Competenz, ATNZ and the group for the year ended 31 December 2010. We expressed an unmodified audit opinion on those financial statements in our report dated 9 March 2011.

The summary financial statements do not contain all the disclosures required for full financial statements under generally accepted accounting practice in New Zealand. Reading the summary financial statements, therefore, is not a substitute for reading the audited financial statements of Competenz, ATNZ and the group.

Members of the Board Responsibility The members of the board are responsible for the preparation of summary financial statements in accordance with generally accepted accounting practice in New Zealand.

Auditor’s Responsibilities It is our responsibility to express an independent opinion on the summary financial statements presented by the directors and report our opinion to you.

Basis of opinion Our audit was conducted in accordance with New Zealand Auditing Standards and involved carrying out procedures to ensure the summary financial statements are consistent with the full financial statements on which they are based. We also evaluated the overall adequacy of the presentation of information in the summary financial statements against the requirements of FRS-43: Summary Financial Statements.

Ernst & Young provide consulting advisory services to Competenz.

unqualified opinion In our opinion, the information reported in the summary financial statements complies with generally accepted accounting practice in New Zealand, is correctly extracted from and is materially consistent with the full financial statements from which they are derived and upon which we expressed an unqualified audit opinion in our report to the members dated 9 March 2011.

Our audit was completed on 9 March 2011 and our unqualified opinion is expressed as at that date.

Auckland