Governance of TITOs

He pārongo kaitiakitangamō ngā whakahaere whakangungu ahumahi

Last updated 8 November 2021
Last updated 8 November 2021

Transitional Industry Training Organisations (TITOs) are a category of organisation in New Zealand’s tertiary education sector.

TITOs are formally recognised under the Industry Training and Apprenticeships Act 1992 (the Act). Once recognised, TITOs are eligible for funding from us.

TITOs are not owned or governed by the Crown. Unlike universities and wānanga, the Crown does not appoint a TITO’s board or board members.

They are essentially private industry-based organisations, with no legal structure prescribed in legislation except that they must be a ‘body corporate’. Incorporated societies, registered charitable trusts and companies are all body corporates.

The legal context and governance arrangements for TITOs have some features in common with other tertiary education organisations (TEOs) because they also have a funding relationship with us, through their Investment Plan.

The distinction between TITOs and other TEOs is that TITOs do not themselves deliver training. Their role is to develop and maintain arrangements for the delivery of industry training that will enable trainees to achieve the relevant skill standards.

TITOs are expected to receive cash contributions from the industries they represent. The value of this contribution is expected to be at least 20 percent of the total funding a TITO receives (depending on its mix of trainees and apprentices). Businesses may also contribute to the cost of training in other ways.

Reform of Vocational Education

Under the Reform of Vocational Education (RoVE), the TITOs are required to transition their arranging training functions to other providers before 31 December 2022. The TITOs’ role in setting standards for vocational qualifications that can be registered by the New Zealand Qualifications Authority (NZQA) transferred in October 2021 to the Workforce Development Councils.

Government expectations of TITOs

The Government expects TITOs to:

  • enable people in work to complete nationally recognised qualifications
  • create clear pathways towards advanced trade qualifications at levels four and above
  • build and maintain strong support from the industries they serve.

To give effect to these expectations, TITOs' statutory function is to:

  • develop arrangements for the delivery of training.

Current TITOs

TITOs have undergone consolidation over the last decade. In 2011, there were 40 ITOs.

By 2015, a number of ITOs had merged with each other or exited industry training, resulting in 11 funded ITOs.

By 31 December 2022, all TITOs will have transitioned their arranging training functions to other receiving providers (Te Pūkenga, private training establishments or Te Wānanga), pending disestablishment.