Competenz significantly improved its performance in 2010 by increasing qualification completions by 264% compared to 2009. This was achieved through a stronger focus on supporting learners and employers to complete qualifications within duration. Key changes included streamlining qualifications, increasing support for apprentices and trainees, and improving assessment processes. Customer feedback was incorporated into developing a new apprenticeship scheme called Elev8, which aims to further boost completion rates through clearer service provisions and stronger support for learners.

1. Annual Report 2010

2. Contents page
Chairman’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

3. 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

4. Annual Report 20102
CEO’s report
A Focus on Performance
In 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 Performance
A number of factors contributed to a significant loss in
2010.
ƒƒ Enrolments, particularly in apprenticeships, were
down 20% with a corresponding reduction in
revenue.
ƒƒ 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.
ƒƒ 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 ITO
We 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.

5. Annual Report 2010 3
The key changes are:
ƒƒ The government subsidy rate for industry training is
frozen for the foreseeable future.
ƒƒ Industry is required to provide a minimum cash
contribution of 30%.
ƒƒ 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 Issues
There 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 Ahead
Competenz 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

6. Annual Report 20104

7. Annual Report 2010 5
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.

8. 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%
Female
21%
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 1
Level 2
Level 3
Level 4
Level 5
Distribution by qualification level
Statistics
on this page
are for 2010
16,760
learners
Gender
Age
Ethnicity

9. Annual Report 2010 7
Performance at a glance
* Comprised of OSH, Competitive Manufacturing,
First Line Management, Distribution qualifications
Total
Total
2009 2010
Food and Beverage (incl. Baking)
Food and Beverage (incl. Baking)
Level 2
Standard Training Measures (STM’s)
Non Competenz qualifications*
Total
Engineering
Engineering
Level 1
Manufacturing
Manufacturing
Level 3
Transport (Rail / Maritime)
Transport (Rail / Maritime)
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
619
781
479
2,661
77,575
55,668
265
1,439
142
1,445
18,725
13,425
112
502
233
502
10,614
12,500
50
58
658
878
468
2,713
2
7
82,937
75,637
421,851
386,074
1,514
5,493
1,514
5,493
Qualification
completions
improved by
264%

10. Annual Report 20108
Trade training supports learners
and employers
In 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:
ƒƒ 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.
ƒƒ 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.
ƒƒ 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

11. Annual Report 2010 9
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 HonourRoll of Honour
Apprentice’s
Antarctic mission
Recent graduates
tell their stories
Why the future of
Trades education
is online
The Guild
Autumn2011
NeWs ANd iNsighTs foR The CompeTeNz CommuNiTy
Blacks
Tool
Taking on the world’s best
Industry training graduates
deserve recognition too

12. 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.

13. Annual Report 2010 11
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.

14. Annual Report 201012
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.

15. Annual Report 2010 13
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.

16. Annual Report 201014
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.

17. Annual Report 2010 15
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.

18. Annual Report 201016
Austen Banks
Competenz 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 Blakey
John 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 Herbert
Peter 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

19. Annual Report 2010 17
Diana Hudson
Diana 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 Kennedy
Kevin 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 Newson
Bill 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.

20. Annual Report 201018
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 Position
As at 31 December 2010
Summary Financial Statements
John Blakey
CEO
Austen Banks
Chairman

21. Annual Report 2010 19
Consolidated ATNZ Competenz
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
Consolidated ATNZ Competenz
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 Funds
For the year ended 31 December 2010
* For the period 1 May 2010 to 31 Dec 2010
* For the period 1 May 2010 to 31 Dec 2010
* For the period 1 May 2010 to 31 Dec 2010
For the year ended 31 December 2010
Consolidated ATNZ Competenz
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 Cashflows
For the year ended 31 December 2010

22. Chartered Accountants
Annual Report 201020
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

24. Annual Report 201022