Mr Inglis said he and the council wished Mr McElroy and his family "all the very best for his retirement and life after UCOL".
The McElroy scholarship would be available from this year and was on offer to students seeking a trades career who were facing financial hardship or exceptionally challenging circumstances, Mr Inglis said. The scholarship will be used as a contribution towards their UCOL course fees, he said.
Eligible trades-based programmes included carpentry and joinery, electrical, furniture design and making, mechanical engineering, automotive, beauty and hairdressing, as well as hospitality and chef training.
The total value of the scholarship is up to $3000 and may be awarded and shared by two students each year, Mr Inglis said.
Applicants must be enrolled and attending a trades programme at any UCOL site and preference would be given to applicants in full-time UCOL study.
Mr Inglis said the scholarship will be funded from UCOL's commercial revenue streams.
Mr McElroy said he was honoured to have a scholarship for trades students in his name.
"I have enjoyed my time at UCOL and working with some great people who are dedicated to helping students succeed. I am looking forward to spending more time with family and wish the institution well."