"We know that we've got a particular challenge around Maori and Pasifika students, we know that there is still a socio-economic divide, that's often not to do with the education system, it's actually to do with broader factors outside the education system.
"I think those are challenges we've got to deal with but we know that we start from a very strong base."
At Napier Boys' High School, he spoke to select students, staff and headmaster Matt Bertram.
Bertram was "very honoured to have the Minister visit".
Staff also had the opportunity to ask questions.
Last week the ministerial advisory group charged with reviewing NCEA published a discussion document, which proposed, among other changes, reducing the number of exam-based assessments for NCEA Level 1 qualifications in favour of assessments based on "pathway" activities.
"I think with NCEA we know what the strengths and weaknesses of the system are now, so we know what we need to improve ... so one of the weaknesses with NCEA is also its strength.
"It's a hugely flexible qualification and that's great because it means schools can develop a local curriculum that aligns with the qualifications system or the qualification system aligns with it. But that flexibility can also mean there's a lot of inconsistency in how prepared young people are coming out of secondary school for the world beyond school," Hipkins said.
"I'm not going into that with a predetermined view of what the outcome will look like because that would kind of defeat the point of the whole process."
He said the whole process was about asking what young people want out of their education, what do their employers want, what do the polytechnics and the universities expect, as well as what the broader community expect of the education system.
Speaking on the education review looking at the long-term plan for schooling in Havelock North and surrounding areas, Hipkins said they needed to "take our time to do that properly rather than just rushing into a decision that a few years down the track we might then look at and say we didn't quite get that right".
The review comes after pressure following the Ministry of Education's failure to consult with the community regarding a site at the former Arataki Camping Ground which was earmarked for a new school.
The site was eventually deemed unsuitable for educational purposes due to the odour from the Te Mata Mushrooms site and four new classrooms were added at Havelock North's three primary schools at the end of last year in a bid to solve future overcrowding problems.
"The ministry is leading that process and it involves a lot of community consultation and engagement, and then they will report back to me and I would imagine next year probably would be them finalising an area strategy for that area."