Freight Forwarding and Customs Broking

Skills strategy 2010–2013
December 2010

This document has been written for the Freight Forwarding and Customs Broking industry of New Zealand by Tranzqual ITO together with representatives of the Customs Broking and Freight Forwarding sector.

© New Zealand Commercial Road Transport Industry Training Organisation Incorporated (Tranzqual ITO) PO Box 923 Wellington 6140 www.tranzqual.org.nz ph 04 917 3369 or 0800 478 257 (0800 4QUALS) fax 917 3390 All text contained in this strategy document is freely available for anyone in the Freight Forwarding and Customs Broking industry to use, copy, reproduce or store. Images contained in this strategy document are the sole property of Tranzqual Tranzqual images have full protection given by the Copyright Act 1994. Images may not be copied, reproduced or stored in any information retrieval system without the prior written agreement of Tranzqual.

Contents
Foreword Context Skills strategies Principles Commitment to Partnership Why have a Skills strategy? The collaborative process
Survey Report

1 2 2 3 4 45 6
7

Glossary Three-year Action Plan Appendix 1
Productivity OECD analysis of productivity

88 9

10 13

Appendix 2
The Freight Forwarding and Customs Broking industry 15

Appendix 3
Freight Forwarding and Customs Broking Industry survey 16

Appendix 4
PESTLE Analysis SWOT Analysis 18 21

Appendix 5
Leitch Review of Skills (UK report 2006) 22

Freight Forwarding and Customs Broking | Skills strategy 2010–2013

“Productivity growth isn’t everything. but in the long run it is nearly everything.” Paul Krugman The Age of Diminished Expectations .

This Sector Skills strategy 2010–2013 has been developed by key players in the Freight Forwarding and Customs Broking industry with support from Tranzqual ITO. Hopefully that in turn will promote a further flow of ideas for the next sector skills strategy to be developed in late 2012.Foreword Under the Industry Training Act 1992. Included within the list of proposed actions is a regular six monthly update back to industry members to perform in a cohesive and players on progress against this strategy. Tranzqual has responsibility for a number of functions. be deployed to achieve industry-wide benefits beyond those which might be undertaken by any The aims of CBAFF include: one company alone. over time become to be seen as a genuine industry “lever”. Wayne Smith Chief Executive Officer Tranzqual ITO Willie van Heusden President CBAFF Freight Forwarding and Customs Broking | Skills strategy 2010–2013 1 . and the associated regular updates. Customs Broking At its heart is the section titled Three-year Action ƒ establishing a Code of Ethics that will assist Plan. ƒ promoting the industry in the wider environment This Sector Skills strategy has been established ƒ procuring and disseminating information through a solid industry consultation process and relevant and helpful to members this led firstly to a number of observations and ƒ educating less experienced participants in then secondly some recommended actions. the key ones of which are: ƒ providing industry leadership on matters relating to skills ƒ identifying current and future skill needs ƒ setting national training standards for industry The Customs Brokers and Freight Forwarders of New Zealand (CBAFF) is the primary organisation ƒ promoting industry careers. professional manner to the benefit of the overall image of the industry. The document outlines a range of proposed actions to be taken or explored more fully over the three year period 2010–2013. Our intention is that this is a living document subject to change and addition as some of the options are explored more fully. Our longer term wish is that this Sector Skills strategy process. the industry The results of the consultation process are laid ƒ encouraging and facilitating continued training in Freight Forwarding and out through the early sections of the document. representing the interests of people working In other words a skills focused approach (sitting in the customs broking and freight forwarding within a broader productivity challenge) that can industry in New Zealand.

Skills strategies Skills strategies identify and prioritise the education and training activities required to meet the current and future skill needs of an industry. The median age of workers in the sector is 35 which is five years lower than the national median. analysing gaps and weaknesses. The process of developing the plan provides a focus for assessing current training provision. For example.Context The Freight Forwarding and Customs Broking industry in New Zealand consists of more than 200 companies employing more than 5. Qualifications: The current ‘suite’ of freight forwarding industry qualifications (see Appendix 2) is currently under review by Tranzqual. The majority (60 per cent) of these companies are located in Auckland.000 people. There are compelling reasons why close attention should be paid to the kind of skills required by an industry and the firms that comprise that industry. The Freight Forwarding and Customs Broking Skills strategy (2010–2013) has been designed to address the following six questions: Why have a skills strategy? The mission What do we want to be? The vision Why? values How do we get there? The skills sTraTegy How do we make sure we get there? The accounTabiliTy regime How do we make sure we’ve got there? The key success facTors 2 . it should also include the reasons why the identified skills are desirable. But this consideration should go beyond just describing the skill sets required. and recommending priorities. objectives and proposed solutions. improved performance. The proportion of males in the sector (63 per cent) is higher than the national level of 53 per cent.

this should have clear points of action including milestones. With respect to the skills strategy itself. Freight Forwarding and Customs Broking | Skills strategy 2010–2013 3 . One of the main reasons for failure to implement strategies is the absence of a sound accountability regime. These six questions relate to the specific exercise itself in other words the development and implementation of the skills plan itself. The only reason to include this component is to draw attention to the fact that in the absence of a sound accountability culture there is a high risk that even the best strategic plan will not be implemented successfully. Note: it is not the intention to attempt to impose or include an accountability regime on individual businesses. Examples of this commitment are the introduction of workplace partnership agreements (WPA) and the development of industry skills strategies. Tranzqual is committed to listening to and collaboratively working with its industries to identify skills requirements and seek solutions that will contribute to greater performance.Principles The development and delivery of qualifications and the supporting skills strategy should be supported by a set of principles. Question 5 (How do we make sure we get there?) is included in the list above because we know that the single most important contributor to failures in strategies is the inability or unwillingness to implement the strategy. In this case the principles are that all Tranzqual national qualifications should be: ƒ developed with strong industry involvement ƒ designed to encourage learner uptake and enhance business outcomes ƒ future focussed ƒ flexible with respect to: – structure – delivery modes.

The reality is that the current qualifications in freight forwarding do not fully fit the requirements of the military. Tranzqual recognises this policy and is working directly with both the military and civilian freight forwarders to achieve this objective. The principal benefits are: ƒ It provides an opportunity for industry groups to drive the future direction of skill development ƒ Joint participation through the spreading of costs and shared expertise associated with the development and delivery of programmes will ensure the sustainability of these partnerships ƒ Tranzqual will be better placed to respond much more rapidly to the needs of its industry partners. Tranzqual has adopted the approach of leading but not dictating the Freight Forwarding and Customs Broking Skills strategy. there are also significant differences. This strategy is an industry strategy not a Tranzqual strategy. are also fit for purpose in the civilian workplace. it needs to be recognised that the strategy would not be complete without including the New Zealand Defence Force (NZDF). This is an important issue because it is the NZDF’s policy that it is highly desirable that military personnel working in freight forwarding should hold qualifications that in addition to meeting the military’s requirements. 4 . In considering this commitment to partnership. While there is a considerable commonality in freight forwarding between the military and civilian settings. This work is timely as Tranzqual is currently reviewing two freight forwarding qualifications.Commitment to Partnership The primary purpose of adopting this approach is to develop an effective and durable partnership between Tranzqual and the various industry groups it serves. In discharging its mandated leadership role and consistentcy with its strategic intent as mentioned above. Tranzqual is aware that much of the implementation of the strategy will fall on the organisation and is fully committed to achieving the best possible outcomes. resulting in ‘fit for purpose’ training programmes ƒ The industry partners will enjoy a greater sense of ownership to the entire process ƒ It will ensure that investments in new initiatives will be made in response to demonstrated demand.

In addition to leadership and management. While there are numerous ways to measure the success of any business venture one of the most compelling measures is ‘performance’. This in turn should lead to greater business success. the development of skills is a key component in building a more productive workplace. An External Stakeholders Reference group Freight Forwarding and Customs Broking | Skills strategy 2010–2013 5 . It should also include the reasons why the identified skills are desirable. both present and future. and develop skills strategies. there are compelling reasons why close attention should be paid to the kind of skills required by an industry and the firms that comprise that industry. The methodology used in developing the strategy was designed to be as simple as possible and towards that end the structure contained two basic elements: 1. An Industry Strategic Planning Group 2. But this consideration should go beyond just describing the skill sets required.Why have a Skills strategy? Apart from the legislated requirement to identify skills needs.

Those factors can be classified under the headings: Political. Technological. Economic. economic. SWOT stands for Strengths. This document identifies the recruitment. The group included: – Tertiary Education Commission (TEC) – New Zealand Customs – Customs Brokers and Freight Forwarders Federation of New Zealand (CBAFF) – Conference of Asia Pacific Express Carriers (CAPEC) ƒ ƒ ƒ ƒ 1 PESTLE Analysis: The purpose of PESTLE analysis is to capture the main ‘external’ factors that provide opportunities and present threats to the freight forwarding industry. ƒ convening a Strategic Planning group which. 2 SWOT Analysis: SWOT analysis is a device used to summarise the results of strategic analysis. This involved the identification of issues under the headings: Political. completing the Skills strategy having taken into account feedback from the consultation process. Technological. External Stakeholders Reference Group: This group included all those people/ organisations that have an interest in a particular strategy. This involved: ƒ researching background information on New Zealand’s economy ƒ researching ‘high level’ background information on the freight forwarding industry ƒ surveying the skills development and training attitudes and practices across the Freight Forwarding and Customs Broking industry. Weaknesses. legal and environmental. SWOT analysis helps to identify strategic aims and areas for action by asking the following five questions: ƒ Can the strengths help us to address the opportunities? ƒ Can the strengths help us to overcome the threats? ƒ How can we eliminate weaknesses that will stop us exploiting opportunities? ƒ How can we eliminate weaknesses that will worsen the impact of the threats? ƒ Can we counter the threats or convert them into opportunities? note: Strengths and weaknesses have an ‘internal’ focus while opportunities and threats are ‘external’ to the industry. Legal and Environmental (PESTLE). through a facilitated process identified the skills and training required by the industry both currently and in the near future 2 ƒ conducting a SWOT analysis ƒ compiling a draft Skills strategy document. This was done by conducting a series of structured interviews with operations managers. social. The outcome of this analysis is contained in Appendix 4. 6 . Opportunities and Threats. circulating the draft Skills strategy document to ‘external’ stakeholders for consultation. Industry Strategic Planning Group: The key elements of the skills strategy were undertaken by this group which consisted of senior people from within the industry. skills and training needs for the Freight Forwarding and Customs Broking industry as well as specific actions intended to meet those needs.The collaborative process The planning process itself was conventional in its approach. human resources and training managers across the sector (see Appendix 2) 1 ƒ conducting a PESTLE analysis . Social.

This makes it difficult for the industry to recruit school leavers. ƒ There appears to be very little. ƒ More use should be made of Recognition of Current Competency (RCC). ƒ A system that recognises current competencies would be welcome. Freight Forwarding and Customs Broking | Skills strategy 2010–2013 7 . ƒ Sources of advice on training tend to be ‘patchy’. both by way of a series of structured interviews and a planning day with key industry names. ƒ There is a long list of suggested topics for inclusion in a qualification in the Freight Forwarding and Customs Broking area: – Maths – Geography – Excel – General business – Insurance – Law – Legislation (for example Carriage of Goods Act. The Modern Apprenticeship system should be part of this. there are some concerns about the quality. Industry findings The following observations have been gathered from the consultation with industry. relevance and currency of this qualification.Survey Report Background to the report The interviews: The interviews were structured around: ƒ information about the firm ƒ training practices within the firm ƒ attitudes towards qualifications ƒ trainers and assessors ƒ literacy and numeracy ƒ training needs and challenges facing the business. Dangerous Goods) – Liability – Documentation – Business writing – Awareness of aircraft type – Knowledge of the shipping industry – Generic skills: • Communication • Leadership • Time management • Customer service • Conflict resolution Note: a copy of the survey used is contained in Appendix 3 of this document. ƒ With respect to the customs broking Pin qualification. ƒ There is a low level of awareness of the industry. if any training for trainers. ƒ There are numerous calls for a careers or qualifications pathway built around structured training.

Glossary gDP iag iTf iTo lcP moe nc nZQf nZQa oecD PesTle rcc skills smT sWoT Tec WPa Gross Domestic Product Industry Advisory group Industry Training Federation. Weaknesses. Technological. Economic. Threats Tertiary Education Commission. Opportunities. Social. including industry training. Legal. Environmental Recognition of Current Competency The ability of an individual to perform a set of tasks and to fulfil the technical requirements of an occupation Senior Management Team Strengths. Workplace Partnership Agreement 8 . This is the ‘peak body’ for Industry Training Organisations Industry Training Organisation Limited Credit Programme Ministry of Education National Certificate New Zealand Qualifications Framework New Zealand Qualifications Authority Organisation for Economic Cooperation and Development Political. TEC is a Crown entity which manages the Crown’s funding component of tertiary education and training.

in reviewing the current freight forwarding qualifications. Tranzqual to discuss delivery options with respect to the above qualifications with the New Zealand Maritime School at Manukau Institute of Technology. Refer the previous recommendation to the Tranzqual schools strategy which has a focus on targeting freight forwarding at selected schools using the Gateway programme. Develop a plan to promote the benefits of a career in the sector to schools. Tranzqual to research the equivalent programme in Germany to gain an understanding the structure of their qualifications. competency based ‘suite’ of qualifications in customs broking.Three-year Action Plan Proposed action 1 2 3 4 5 6 7 8 9 10 Tranzqual to investigate the viability of a nationally recognised. Tranzqual develop a marketing plan to promote all freight forwarding and customs broking qualifications through schools careers officers and/or CBAFF. This component of the suite should sit at Level 4. Tranzqual to investigate the viability of developing a Level 5 National Diploma aimed at running a business as a logistician. The preferred structure of the level 4 qualification is to have a core component with strands in freight forwarding and customs broking. The concept of a competency-based nationally recognised qualification in customs broking to be promoted to New Zealand Customs. The focus of the Freight Forwarding Modern Apprentice programme should be at levels 3 and 4. Give consideration to appropriate titles to the qualifications. Tranzqual to consider promoting careers in the freight forwarding industry to people graduating from Institutes of Technology and Polytechnics with Diplomas in Business. Tranzqual to explore flexible delivery modes to ensure that participants outside Auckland can have access to the qualification in ways that suite their needs. CBAFF and CAPEC. Tranzqual to produce a proposal regarding the most flexible delivery methods possible for this qualification. These qualifications should include the means to be registered (not licenced) as a customs broker. will work with the NZDF and the civilian freight forwarding industry to ensure that military personnel working in freight forwarding can gain qualifications that meet the requirements of both the military and civilian environments without in any way compromising the needs of either sector. Tranzqual. Tranzqual to explore with the industry the desirability/feasibility of practising customs brokers to undergo some periodic requirement in order to remain ‘current’. By when 11 12 13 14 15 16 17 Freight Forwarding and Customs Broking | Skills strategy 2010–2013 9 .

but in the long run it is nearly everything. whatever else is done. This involves maximising the use of a whole range of factors. worker engagement etc. Before considering what may need to be done with respect to improving our productivity performance we should consider one of the key components of productivity. productivity will be a key element. New Zealand’s performance with respect to productivity is modest. skills.” Paul Krugman The Age of Diminished Expectations in the value of output per hour worked. This relatively poor performance mainly accounts for the growing gap in living standards between New Zealand and Australia. training. management. one thing is certain. innovation. By whatever measure.Appendix 1 Productivity “Productivity growth isn’t everything. One way to show this is to calculate the value (in dollar terms) of what a worker can produce per hour worked. How does New Zealand perform in productivity? Not well (see page 12). An increase in productivity therefore would be demonstrated by an increase 10 . All experts would agree that the gap cannot be closed unless the level of productivity in New Zealand is raised above that of Australia and that performance is subsequently sustained over a long period. Our productivity has consistently lagged behind that of Australia for at least the past 15 years. leadership. It’s really about working smarter. These factors include: skills development. But how can this be achieved? It is not yet clear what strategy the government will adopt to close this gap but whatever it is. In short. We must do better if that gap is to be closed. technology. Productivity: what is it? Productivity is the measure of output from a productive process from a unit of input. How can this be achieved? Is it a matter of working harder? What contributes to productivity? Productivity is about a lot more than just working harder. it is the combination of those factors that makes the difference. so it is not surprising that the present government aspires to close that gap. The experts tell us that any one of those factors on their own is not likely to have a significant impact on productivity. The big picture Successive governments have long been concerned about the growing gap in living standards between New Zealand and Australia. productivity has to be the key component. workplace organisation.

facilitate investment skills. such as team working and communication. and improve leadership and management. such as literacy and numeracy. The ability to work with others to achieve ƒ ƒ ƒ ƒ ƒ common goals. ƒ Being able to undertake tasks or make businesses must be able to draw on a flexible. The ability to solve problems. submissions at short notice. Indeed the Leitch Report states: Productivity is increasingly driven by skills. ƒ ‘Basic skills’. Skilled labour. Skilled workers are better able to adapt to new ƒ Planning and organising. skilled workforce. ƒ Effective time management. The ability of firms to succeed in the face of In addition the Skills for Scotland Report (2007) growing international competition depends suggested that basic skills would include (but not increasingly on the skilled labour force they can be limited to) the following: draw from. Having the skills needed to manage. 1 What has this got to do with Industry Training Organisations? One of the key components of productivity is the development of skills. Skills are a key lever within our control to improve productivity in the workplace.one fifth or more of the UK’s productivity gap with countries such as France and Germany results from the UK’s 2 relatively poor skills. The ability to learn and to continue learning. therefore is an essential component in the search for greater productivity. Since Industry Training Organisations are in the skills business they must have a key role to play in achieving productivity improvements.What are skills? The Leitch Report defines skills as: ƒ ‘Skills’ are capabilities and expertise in a particular occupation or activity. are applicable in most jobs. The ability to take responsibility for professional development. Higher ƒ Effective oral and written communication level of skills drive innovation. ƒ For innovation to be effectively implemented. or be managed by others (which draws on many of the other skills in this list). technologies and market opportunities. 1 Prosperity for all in the global economy – World Class Skills (2006) 2 Prosperity for all in the global economy – World Class Skills (2006) Freight Forwarding and Customs Broking | Skills strategy 2010–2013 11 . The ability to think critically and creatively. and generic skills.

None of this will take place without effective leadership. however. While the drivers of productivity are well known. organisation by organisation. industry training organisations are important and training providers are important. for some reason we are not adopting and applying those drivers. Perhaps we lag behind because the true importance of productivity and its drivers is not understood widely enough. like any change requires a high level of leadership. What do we have to change to do better? Any change requires leadership. Effective leadership is a lot more than that. Yes. trade unions are important. It is not enough that this leadership is exercised at just the national level. So. Making this happen. There may be a tendency for us to see this as a ‘macro’ level problem which can be addressed by government providing the right regulatory environment. judgement.Why do we consistently lag? New Zealand is not performing well in the area of productivity. reliability. Conclusion: Most people would agree that the pursuit of productivity improvement should be a high priority. There are others. community. firm by firm. It involves high levels of skill and commitment in thousands and thousands of organisations and enterprises across the country. The answer involves a lot of people in a lot of workplaces dedicating themselves to focusing on the key drivers of productivity. humility. This change. business and union leadership. If that is the case then the drivers of productivity are not well understood. Where will this leadership come from? It must come from a multitude of sources. even if they are well known. It involves a whole range of desirable characteristics including such things as: integrity. is no simple task. government is important as is the regulatory environment but it is only part of the picture and in any event productivity has to happen at the enterprise level. What is effective leadership? Many people believe that leadership involves no more than confidently showing the way and ordering subordinates into action. department by department. This effort needs to be focused and it needs to be relentless. politicians. It is essential that all of these people know what they are doing and why. if New Zealand is to close the gap with Australia (or indeed anybody else) then it must change what it is doing and that requires leadership. industry leaders are important. It needs to be evident in every organisation and every enterprise and at all levels in every organisation and every enterprise. There is no simple ‘magic bullet’ that will improve productivity. etc. 12 . individual by individual. optimism. To name just a few sources: politicians are important. There are others. energy and the ability to focus on results. And the answer is? Not simple. confidence.

6 OECD average: 40. Productivity in the oecD 2007 GDP per hour worked. current prices in US dollar 80 70 60 50 40 30 20 10 Slovak Republic United States New Zealand Portugal Greece United Kingdom Czech Republic Australia Finland Germany Denmark Canada Ireland Austria Luxembourg Norway Belgium Netherlands Switzerland Japan Sweden Iceland Hungary Poland France Spain Mexico Italy Korea Turkey 80 70 60 Euro-zone average: 45. This comparison should serve to push productivity and performance towards the top of the agenda for any business if it is not already there.3 50 40 30 20 10 0 0 Source: OECD StatsExtracts long Term labour Productivity levels Real output per hour (US$ purchasing power parities) 50 45 40 35 30 25 20 15 10 5 0 1998 Ireland New Zealand 1999 2000 2001 2002 2003 2004 2005 2006 2007 United Kingdom Poland Australia Japan Freight Forwarding and Customs Broking | Skills strategy 2010–2013 13 .OECD analysis of productivity The tables below show that in terms of international comparison New Zealand does not perform well when measured against other developed countries.

any one intervention will have limited impact “ …change has to begin with company leadership ƒ Change. physical-organic. the benefits of productivity on the basis of pay and other incentives . location. therefore. They include: 1. and technological factors A joint Department of Labour/Industry Training 3 Federation report stated that: “[workplace productivity] involves exploring all the ways that workplaces can do things better and smarter. levels of flexibility in internal labour markets innovation.” The report then revealed that: 2. training.. motivational and behavioural factors 3. and “. and employee engagement and for example the presence or absence of motivation. managerial-organisational and wider economic and political-legal environments “Research has confirmed that the highest productivity gains are found when complementary changes are made in skills.” others in recruiting. communicating with. individual rewards and payment systems.” 3 The Skills Productivity Nexus (2008) 4 The Skills Productivity Nexus (2008) 14 . across a number of areas is critical and supervisory staff in such areas as how in achieving productivity gains to conduct effective conversations with and ƒ Leadership is a critical factor in achieving engage their staff before specific improvement these (or any other) changes. cultural belief-value and individual attitudinal.Factors affecting labour productivity In a survey of manufacturing growth and performance in Britain. 5. any one intervention is likely to the effectiveness of personnel managers and have limited impact.” traditional craft demarcation lines and barriers to occupational entry and Another key finding from research is that: 6. The report Conclusions: goes on to suggest how these changes can be ƒ Productivity gains can only be achieved by affected: the use of numerous ‘interventions’. it was found that: “The factors affecting labour productivity or the performance of individual work roles are of broadly the same type as those that affect the performance of manufacturing firms as a whole. management and the organization of work activities – capability. can only be achieved by organisations making changes across a number of key areas. programmes can gain any traction.. international influences – for example levels of innovativeness and efficiency on the part of the owners and managers of inward investing foreign companies 4. on their own. and performance-motivating employees 4 In short. workplace organisation.

This review is being managed through an Industry Advisory Group (IAG) under the management of Tranzqual. All students leaving the education system with worthwhile qualifications and. Minister for Tertiary Education. An appropriately trained and competent workforce Industry Training Organisations Industry Training Organisations (ITOs) are required by legislation to undertake a leadership role for the industries within their area. Almost seventy per cent of those employees work for companies employing more than 20 people. ƒ That they build and maintain strong support from the industries they serve. These companies represent just twenty percent of all companies in the industry. ITOs are expected to respond to the government’s priorities.” Qualifications The current ‘suite’ of qualifications for the freight forwarding industry is: ƒ ƒ National Certificate in Freight Forwarding (Freight Administration) [NZQF* 1243] National Certificate in Freight Forwarding (International Freight Forwarding) [NZQF 1244] Note: the above qualifications are currently under review. the government has three requirements: ƒ That they enable working New Zealanders to complete nationally recognised qualifications. *The National Qualifications Framework (NQF) was officially replaced by the New Zealand Qualifications Framework (NZQF) as from 1 July 2010 Freight Forwarding and Customs Broking | Skills strategy 2010–2013 15 .000 people. and (iii) Promoting training that will meet those needs to employers and employees In addition to the leadership requirement within the Industry Training Act. The current set of priorities are set out in the Tertiary Education Commission’s Statement of Intent. S10(2)(e) of the Industry Training Act (1992) states the activities of an ITO shall include: Providing leadership within the industry on matters relating to skill and training needs by – (i) Identifying current and future skill needs (ii) Developing strategic training plans to assist the industry to meet those needs.Appendix 2 The Freight Forwarding and Customs Broking industry The freight forwarding and customs broking industry consists of more than 200 companies employing more than 5. Hon Anne Tolley “Looking specifically at ITOs. TEC Statement of Intent (SOI) 2009 – 2012 The government has established three new education priorities: ƒ ƒ ƒ A ‘high-trust’ and ‘high-quality’ tertiary funding environment. ƒ That they create clear pathways towards advanced trade qualifications at level 4 and above on the Register of Quality Assured Qualifications.

2 Are there any areas training? where your business requires more training 5. 16 . How many employees does your firm have? 2. Does your current training most commonly used in provision meet your this organisation? organisation’s needs for training your staff? 3. In terms of delivery of training. Do you provide any training for your in-house trainers? 14. 1. who? 3. what are the most effective methods for training staff in your organisation? 8. How long has your business been operating? 3.2 What is the completions rate for training in the 6. Where do you currently go for information about 6. are there any aspects of the current qualifications that are not relevant to training in your organisation? 12. Are there any other skills not currently included in the qualifications that would benefit your business? 12. Do you have any plans to train your staff to become assessors? 17. Are there aspects of the current qualifications that are particularly relevant to staff training in your business? 11. Do you use outside assessors? 15.1 How could training last 4 years? provision be improved on? 4. or do you use a Part 2: Qualifications Purpose of the questions: ƒ Determine if the content of specific qualifications is relevant to training requirements in their organisation ƒ Determine ideal methods for delivering training in their organisation. If so do you any difficulty ‘sourcing’ these assessors? 16. How many staff here undergo training? third party training provider? If so.1 Why? 13. 7. Similarly. how do you train them? 10. Do you train your staff support? internally.1 Which qualifications are 6. If so. Do you train staff in your organisation towards a national qualification? If not why not? When training your staff do you teach only the prescribed course content or is there other skills and knowledge that you include? 9.Appendix 3 Freight Forwarding and Customs Broking Industry survey Part 1: General business questions Purpose of questions ƒ To gather demographic information about the organisation and develop a profile of current training practice.

[If relevant] What is the ideal scenario for addressing literacy and numeracy issues in your organisation? 22. are existing employees? they doing to address it? What would they like from 18. which would assist with training your staff? Part 4: Looking ahead Purpose of the questions: ƒ What’s the ideal scenario for training in the future and 24. 23.2 If so. do you have in place to address these issues? 21. What do you think Tranzqual could do to assist your organisation to address these issues? 26. Are there any literacy or training? numeracy issues within your organisation? 18. is it a problem assessment of and what. How do you think your what can Tranzqual do to training needs will change assist developing this ideal? in the future? ƒ Industry changes for the next 3–5 years and 25.Part 3: Literacy and Numeracy Purpose of the questions: ƒ Assess current state of literacy and numeracy in the 18. Do you think the current training options meet the needs of your business? Why/why not? Freight Forwarding and Customs Broking | Skills strategy 2010–2013 17 . if anything.1 Is there any organisation. if any. what? Tranzqual to assist with literacy and numeracy 19. What do you see as the effect this will have major challenges for your on your business and business in the next 5 training requirements years? in the industry. [If relevant] What measures. Is there anything we have not yet discussed that you think Tranzqual could provide to your organisation. Does your organisation carry out any preemployment assessment of new staff for literacy and numeracy? 20.

it is clear that improving completion rates in some parts At the TEC. economic.” ƒ ƒ ƒ “. Hon Anne Tolley’s – Local government address to the ITF Research – Printing Forum. legal and environmental (PESTLE). Conclusions: It would be reasonable to assume that: ƒ the government will develop a position on completions ƒ funding levels for LCPs will come under close scrutiny ƒ funding levels for Modern Apprenticeships will come under close scrutiny. years.. 18 . this means it is of industry training and Modern considering how best to support Apprenticeships is a high providers to: priority.Appendix 4 Freight Forwarding and Customs Broking: PESTLE Analysis The purpose of this document is to capture the main ‘external’ factors that provide opportunities and present threats to the Freight Forwarding and Customs Broking industry.Bill English has made it clear ƒ Completions depend on: – The employer that he expects value for money” – Industry type – ITOs ƒ Some ITOs have much higher completion rates than others Older learners are more likely to complete qualifications but the MoE questions the value added by older learners Completions are more likely at higher levels With respect to Limited Credit Programmes (LCPs): – This is the most likely type of programme to be completed – They appear to be used as ‘stand alone’ learning – Most LCP learners do not go on to attain a national qualification. social.” ƒ support learners under 25 The Ministry of Education to engage in education research referred to by the ƒ ensure Māori and Minster reveals that: Pasifika learners achieve at higher levels ƒ only 35 per cent of industry trainees complete their ƒ build literacy and qualifications within five numeracy skills. Technological.. Those factors can beclassified under the headings: Political. Note: the MoE questions whether LCPs should continue to be subsidised at the same rate as other programmes on the grounds that they appear to be used for compliance reasons only and the employer is the main beneficiary.. complete come from: – Painting contractors The following are quotes from – Joinery the previous Minister of Tertiary Education.. It also compares with employers and TEOs. It has international findings developed ways to link funding ƒ Those most likely to with performance. 22 April 2009: – Flooring “. This compares with TEC has published comparable those learners within TEO educational performance polytechnics and PTEs. Political The Government has told TEC that it wants it to focus its financial contribution to the system on certain priority groups and types of study where success offers significant economic and social returns. “I would like to refer to an important piece of research produced by the Ministry of Education which looks at completion rates for industry training and Modern Apprenticeships. information for students.

Tertiary Education Commission (TEC) Statement of Intent (SOI) 2009 – 2012: The government has established TEC’s Performance measures include: three new tertiary education priorities: ƒ Increasing the number of people engaged in literacy 1. The Commission’s roles and functions are modelled ƒ closely on the Australian Productivity Commission. higher incomes and opportunities New Zealand families deserve. Productivity Commission A new Productivity Commission will be set up early 2011 to help boost New Zealand’s economic performance across the public and private sectors. which has been operating for more than 10 years. setting up the Commission by the end of this year so it can be up and running by April 2011. rather Its main functions will include: than the unsustainable increases in government ƒ Inquiries into productivity-related matters spending and borrowing of the past decade. Freight Forwarding and Customs Broking | Skills strategy 2010–2013 19 . In announcing the Commission the Minister of Finance said: Examples of Australian Productivity Commission inquiries include energy efficiency and the economic impacts of migration and population growth. to build up its institutional knowledge. “It is essential that we increase our economic growth if we are to create the jobs. ƒ Research into productivity-related matters. The independence of the Australian Productivity ƒ Promote public understanding of Commission has ensured that important public productivity-related issues. An appropriately trained and competent workforce. and.” The new Productivity Commission will be headed by up to four part-time commissioners and will provide independent advice on ways to improve productivity in areas identified by the Government. One-off reviews of existing regulations. of people completing 2. All students leaving the qualifications education system with ƒ Improvement in workplace worthwhile qualifications literacy and numeracy. and reporting back to Ministers. ƒ Reviews of the efficiency and effectiveness of regulatory agencies. Our main challenge is to ensure this growth is based on private sector investment and exports. policy issues have been tackled in a nonpolitical way. 3. The Government intends to enact legislation ƒ Regulatory impact analysis of a small number of proposed new regulations. A ‘high-trust’ and ‘high& numeracy provision quality’ tertiary funding ƒ Increasing the number environment.

0 7. At the economy-wide level.9 per cent higher in the long run. help encourage more saving and reorient investment towards more productive parts of the economy. NZIER. The tax changes are expected to boost incomes.0 per cent in the March 2014 year. The broad consensus is of Exports 0.6 +5. 3. The tax package is also forecast to cause volatility in output growth in the second half of 2010. ƒ exact impact will depend on the responses of numerous firms and individuals and is therefore uncertain. Interest rates 5. the exchange rate and *compiled from: ANZ-National Bank.7 +1. ASBBank.3 to economic forecasters in the latest NZIER Consensus Forecasts Unemployment 7. Real output is expected to grow strongly in the September quarter and fall slightly the next quarter as some consumer spending. Deutsche bank.2 -$7. Treasury the current account deficit. the economic forecasts ƒ incorporate a level of real output that is 0. Operating Balance (June year) 6.3 Survey. UBS.9 per cent in the March 2013 year. the hosting of the Rugby World Cup in late 2011 and the tax package.8 +8.Economic ‘The recovery from recession The tax package in Budget 2010 has a significant impact on the is expected to be gradual’ economic outlook. BERL.7 6.2b -$7.0 6.4 per cent in the March 2009 year and 0. high confidence levels. a further impact of 0. a stronger global environment and associated higher demand for exports.7 +3. 2. in the mediumterm projections in the Fiscal Strategy Report. there is considerable Govt.4 +5. particularly on durable goods. BNZ.8 +3.2 per cent in the March 2011 year.8 per cent per annum. and Private consumption 0. By the June 2014 quarter. according Investment 10.0b divergence of views on the residential construction sector’s recovery.2 +1.4 However. Therefore.0 6. real output is expected to grow at around 3 per cent per annum: 3.’ 20 .4 per cent higher than in the absence of the tax package.8 a return towards trend growth.6 and housing towards exports. and 3. the main impacts are assumed to be: ƒ The level of real output is expected to be 0.3 per cent in the March 2010 year. NZIER Consensus Forecasts: June 2010* outlook: nZier consensus forecasts*June 2010 (years to 30 June) ‘The economy is on the path Percent (%) 2009/10 2010/11 2011/12 to sustained and sustainable GDP Growth 0.0 economic growth. The positive outlook is supported by the lagged impact of an easing in monetary conditions since mid-2008. is brought forward before the increase in the GST rate on 1 October 2010. This impact takes time given the amount of spare capacity The Treasury in the economy currently. although the (Treasury) After a fall of 1.1 per cent the next year.7 +4.5 a rebalancing from consumption Imports 12.4 +2.7 +1. These growth rates are higher than our estimate of potential growth over these four years of around 2. RBNZ.5 per cent is expected by June 2017. Westpac.

Environmental Increasing environmental compliance demands will impact on the sector The increasing requirements to deal with the carbon credits regime will require new knowledge. Occupations such as travel and tourism are perceived as being more attractive than freight forwarding. Freight Forwarding and Customs Broking | Skills strategy 2010–2013 21 . Weaknesses: • It is too easy to gain entry to the industry • The value of existing regulatory authorities such as IATA ids not always recognised • Some of the learned behaviour is learned from people who themselves have inadequate knowledge • Too many errors being made. Legal While the sector is not heavily regulated. Opportunities: The industry could look to international best practice and tap into international expertise. There is a low level of understanding of the sector from the schools and the public generally. Technological Information and communication technology (ICT) is playing an increasingly important role in the industry. legal considerations will become increasingly important. SWOT Analysis Strengths: • The depth of knowledge across the industry • People tend to stay in the industry • The industry is cost-efficient • The relatively light regulation in New Zealand provides flexibility • The service will always be needed. It has even been suggested that in the foreseeable future perhaps most Customs Broking functions could become automated. or likely to be. Threats: • The growing role of multinational companies • The influence of large shipping companies.Social The industry is part of the total supply chain management system.

Higher level of The population is ageing. success demands a more the OECD countries must themselves reform their skills service-led economy and high st value-added industry. Without increased skills. Skills increasingly by its skills base. ƒ all of the material below is taken verbatim from the report. our natural resource is changes. technological change and global skills drive innovation. leadership and management. such as team working and communication. and employment.and their potential prosperity will be driven is both untapped and vast. The ability to do this depends upon the skills and knowledge of their people. technologies and market opportunities. ‘Basic skills’. based on trying to predict and provide. collective articulation of future skills needs has been an ineffective and inefficient mechanism. Productivity: Skills are a key lever within our control to improve productivity in the workplace – one fifth or more of the UK’s productivity gap with countries such as France and Germany results from the UK’s relatively poor skills. For innovation to be effectively There is a direct correlation implemented.Appendix 5 Leitch Review of Skills (UK report 2006) Summary This summary is intended to capture the key elements of the report which may be relevant to a New Zealand context. As a result. although the extracts are not necessarily presented in exactly the same order as in the report itself. In the 21 policy. Skilled workers are create wealth and to reduce better able to adapt to new social deprivation. Productivity is increasingly driven by skills. As the global economy Century. productivity be able to draw on a flexible. facilitate investment and improve migration flows are increasing. The previous system was focused on asking employers to collectively articulate their future skills needs and then trying to plan to meet these needs. could easily have been written to describe the New Zealand situation. as For developed countries who emerging economies start to cannot compete on natural deliver high skills at low cost. Definitions: ‘Skills’ are capabilities and expertise in a particular occupation or activity. such as literacy and numeracy. will unlock that potential. diminishing economic growth and a bleaker future for all. while written specifically in a UK context. Skills are now The UK’s Skills Deficit: increasingly the key lever. Developed nations are relying more and more on their capacity to innovate to drive economic growth. businesses must between skills. Too often. 22 . Note: ƒ much of this extract. Skills were skilled workforce. we would condemn ourselves to a lingering decline in competitiveness. once a key lever for prosperity and fairness. in other words most references that have a particular UK context have been ignored. too much provision has been supply driven. Global changes: The Organisation for Economic Co-operation and Development (OECD) stresses that. are applicable in most jobs. resources and low labour costs. an economy’s our people. The ability of firms to succeed in the face of growing international competition depends increasingly on the skilled Skills is the most important labour force they can draw lever within our control to from. and generic skills.

The raised ambitions will require additional investment by the State. Intermediate skills must be improved to implement investment and innovation.Consequently. There is a pressing need to raise the rates of skills improvements among adults – the UK cannot reach a world class ambition by 2020 without this. This approach has a poor track record – it has not proved possible for employers and individuals to collectively articulate their needs or for provision to be effectively planned to meet them. People lacking basic skills will be most at risk of exclusion in a global economy. adults will increasingly need to update their skills in the workforce. The Review is clear that skill demands will increase at every single level. Skills projections for 2020: History tells us that no one can predict with any accuracy future occupational needs. employers were reluctant to contribute toward training costs because they did not have confidence in the quality of training on offer and felt frustrated by the lack of influence over qualifications. The review’s analysis shows that previous approaches to delivering skills have been ‘supply driven’. Progress towards world class is best measured by the number of people increasing skills attainment. responding to demand rather than trying to plan supply. The Review has concluded that this sort of approach must be established across the system so that providers only receive funding as they attract customers. Better skills will be required at higher levels to drive leadership. At the same time. they felt let down by poor levels of basic literacy and numeracy resulting from a failing school system. Recent reforms in England have attempted to develop a more ‘demand-led’ system. As the global economy changes and working lives lengthen with population ageing. Basic skills are essential for people to be able to adapt to change. Freight Forwarding and Customs Broking | Skills strategy 2010–2013 23 . management and innovation – these are key drivers of productivity growth. based on the Government planning supply to meet ineffectively articulated employer demand. employers and individuals. Increase adult skills across all levels.

Raising employer engagement.Increase people’s aspirations and awareness of the value of skills to them and their families. relicense SSCs to focus on: Taking the lead role in developing occupational standards. ƒ Build on existing structures. ƒ Increase employer engagement and investment in skills – building on international evidence of successful sectoral approaches in Australia and the Netherlands and examples of excellence from existing Sector Skills Councils (SSCs). and Considering collective employer action to address specific sector skills needs. Taking the lead role in collating and communicating sectoral labour market data. Don’t always chop and change. Create high profile. – Reform. approving vocational qualifications. ƒ Increase employer engagement and investment in skills. The skills system must meet the needs of individuals and employers. note: this recommendation basically supports the New Zealand ITO model. sustained awareness programmes. demand and investment. ƒ Focus on economically valuable skills. 24 . ƒ Strengthen the employer voice. Vocational skills must be demand-led rather than centrally planned. ƒ Skills should be demand-led.

Freight Forwarding and Customs Broking | Skills strategy 2010–2013 25 .

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