PM Chris Hipkins reveals Labour’s $420m investment to make apprenticeship support permanent

Labour will spend $420 million over four years if re-elected to make permanent an apprenticeship support scheme introduced during the Covid-19 pandemic.

The Apprenticeship Boost scheme pays employers $500 per month for the first two years of an apprenticeship to support training employees.

Introduced as temporary assistance for businesses during the Covid-19 pandemic, it had contributed to a 61 per cent increase in the number of apprentices over the last three years.

Prime Minister Chris Hipkins announced the election promise today at the party’s Congress in Wellington.

“Training more New Zealanders creates opportunities and good jobs and reduces our reliance on offshore workers to plug skills shortages,” he said.

“Immigration remains important, but we shouldn’t have to rely on getting the skills we need from overseas.”

Prime Minister Chris Hipkins laughs alongside other senior Labour Party members at the first day of the party's Congress on Saturday. Photo / Getty Images

The period between 2019 and 2022 contained increases in apprentices who were younger, female and Māori and Pasifika.

Of the 57,000 apprentices supported by the scheme from 2020, about 25,000 had gone into the building sector.

Making the scheme permanent would cost $6m in 2024/25 and then $120m each year for the following three years.

Hipkins was quick to point out the number of apprentices dropped under National between 2008 and 2011.

“As a result of National’s short-sighted approach New Zealand was left with a skills shortage we’re only now starting to get on top of.

“Labour is the party for apprentices, backing the tradies of tomorrow.”

Yesterday, Deputy Prime Minister Carmel Sepuloni announced that Labour would not be changing the superannuation age - something National and Act have campaigned on.

It followed Labour’s attack on National’s policy to raise the super age to 67 that could mean some people would miss out on more than $50,000 - a figure that would be much higher if Act’s policy to cap KiwiSaver subsidies was added.

“We’ve done the maths. If you’re a young person, the Coalition of Cuts will take more than $98,000 off your retirement,” Sepuloni proclaimed to 400 party faithful gathered at Te Papa.

However, Labour’s calculations did not include the savings National and Act say people will receive through tax cuts.

Hipkins’ speech, warmly received by party members, included a laundry list of Labour’s achievements while in Government, including recent policies in Budget 2023 such as the removal of the $5 prescription charge and 20-hours-free early education.

He made references to the Opposition but there were only two mentions of the “coalition of cuts” - a slight departure from the volley of attacks senior Labour members launched at National and Act in their speeches yesterday.

The body of his speech was clearly intended to speak to parents. Hipkins recalled his own upbringing, referring to his mother Rose’s efforts in education and his father Doug’s DIY lessons he passed on to his sons.

He complimented the apprenticeship announcement by professing his passion for education, as a former Minister of Education.

Hipkins ended with a promise ahead of this year’s election to a cheering crowd.

”We are known and we are tested, and we can be trusted,” he said.

”We are ready for the tough battle ahead in October.”