Annual Report 2010

Contents pageGeneral Manager’s Report

ATNZ apprentice to go to WorldSkills 2011

Antarctic apprentice’s ‘cool’ journey to completion

A decade of mutual support

Congratulations to our 2010 graduates

Summary Financial Statements

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Annual Report 2010 1

General Manager’s Report

Apprentice Training New Zealand (ATNZ) continues as New Zealand’s largest employer of mechanical engineering apprentices, currently helping over 340 young men and women working in industry to complete their trade qualifications.

The ATNZ Group Apprenticeship Scheme was separated from Skills4Work and re-established as a stand-alone Trust. The ATNZ Trust has an annual contract for services with Competenz.

The rationale for the re-establishment of the Trust as an independent entity was to align the services for apprentices to the activities of the ITO Competenz. Through this, a range of duplicated costs were removed.

As the ITO for the mechanical engineering sector, Competenz was well positioned to meet the challenge, and continue providing a high level of support to ATNZ’s apprentices and seconding employers.

Competenz conducted a customer satisfaction survey in the third quarter of 2010; ATNZ customers surveyed expressed a 98% satisfaction rating for the training support they and their apprentices received under the ATNZ scheme.

That’s an achievement we’re really proud of – it affirms that ATNZ customers continued to receive a high level of support and service through the changes and beyond, and we intend to keep it that way.

Our measure for success is seeing more qualified tradespeople working in industry for New Zealand businesses. We are proud to continue delivering a one-stop, and hassle-free engineering apprentice recruitment and training solution for hundreds of businesses nationwide, all year round.

Our alignment with Competenz’s objectives in meeting the skill needs of industry will further ensure that passing a qualification translates into skilled tradesmen and women who can perform the required on-job tasks.

And because Competenz works closely with industry to develop and review its mechanical engineering qualifications and industry standards, the manuals and learning resources that support our ATNZ apprentices’ trade training are continuously improved so they’re fit for purpose.

ATNZ worked even more closely with potential apprentices and seconding employers in 2010, including greater collaboration with the fire protection industry to support its trades training needs.

We’re committed to keeping the bloodlines of New Zealand’s mechanical engineering industry well stocked, and this work will continue into 2011 across all sectors of the mechanical engineering industry.

Fiona Kingsford General Manager Trades Training – Competenz

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“They have plenty of hard work ahead of them as they train for the intense international level competition.”– Sally Gray, WorldSkills NZ

Annual Report 2010 3

ATNZ apprentice to go to WorldSkills 2011

In 2010, ATNZ apprentice Brad Wood was selected to represent New Zealand at the 41st WorldSkills International Competition to be held in London late in 2011.

The WorldSkills International Competition is held every two years to showcase and recognise excellence in 46 trades with competitors from around the world. Competitors must be aged 22 or under to be eligible, and only the best young tradespeople qualify.

Brad (pictured centre) will compete for New Zealand in the Welding skill category, having gained his ‘Tool Black’ distinction by winning this skill category at the NZ WorldSkills competition in September 2010. He was then selected by WorldSkills NZ as an ambassador for both his trade and New Zealand.

Brad was seconded to South Waikato Precision Engineering in Tokoroa, and is due to complete his fitting and machining apprenticeship in 2011.

Brad will join his fellow Tool Blacks – William Taylor of Etech Industries in Palmerston North and Mathew Pascoe of Readymix Concrete in Christchurch – and they will compete in the Sheetmetal Technologies and Polymechanics (Fitting) skill categories respectively in London.

William completed his light fabrication apprenticeship in 2010, and Mathew is due to complete his general engineering apprenticeship in 2011.

The trio’s selection for the international event is testament to the high quality skills and knowledge they’ve acquired through their apprenticeship training.

The Tool Blacks will compete against the ‘best of the best’ tradespeople in their skill categories from close to 50 countries. Entrants must complete a complex, practical project over an intense four days of competition, testing their planning, technical knowledge, and skills in a high-pressure environment.

“They have plenty of hard work ahead of them as they train for the intense international level competition, but the work will be worth it for both their WorldSkills experience and their career development,” says Sally Gray, WorldSkills NZ’s national coordinator.

ATNZ, industry training organisation Competenz, and WorldSkills NZ are proud to support Brad and his fellow ‘Tool Blacks’ knowing they have the skill and ability to do themselves, their employers, and New Zealand proud.

You can follow Brad and the Tool Blacks’ progress in the lead up to the London event via the WorldSkills NZ website www.worldskills.org.nz.

“The work will be worth it for both their WorldSkills experience and their career development.”– Sally Gray, WorldSkills NZ

Annual Report 20104

“I’ve never seen so much snow in my life — you almost think you’re in a dream because it’s unlike anywhere else in the world that anyone could imagine. It was like I was on another planet!”– Joel McGregor

Annual Report 2010 5

Twenty-year-old Joel McGregor of Oamaru completed one of the most extreme engineering apprenticeship experiences in the world, living and working for five months in Scott Base, Antarctica.

Our ‘Antarctic Apprentice’ successfully served his time on the icy continent, supporting Antarctica New Zealand’s maintenance and engineering crew in their 2010 / 2011 summer workload while working through the final stages of his ATNZ general engineering apprenticeship.

Joel was an integral member of the team, performing general fabrication, maintenance and mechanical fitting work, but also using his creativity to fabricate one-off items to meet the team’s needs.

He got the job after being recommended by his Competenz account manager, and passing extensive interviews and testing with ATNZ and his seconding employers, Antarctica New Zealand.

He admits his first impressions of Antarctica had him totally “gob-smacked,” but he got used to the colder conditions really quickly.

“I’ve never seen so much snow in my life. It’s unlike anywhere else in the world – it’s like being on another planet,” says Joel.

When Joel first arrived in Antarctica the temperature was an incredible −24°C, and even with the “summery” −2°C weather some engineering tasks like welding were virtually impossible to do.

“It’s a bit of a mission because the welding plants are powered by generators, and they don’t like the cold much.”

A normal day’s work for Joel started at 8.00am with a workshop meeting to plan the day’s activities, followed by a host of maintenance tasks.

“We’d do daily readings and checks on site services like generators, refrigeration, and the water treatment plant, and perform maintenance tasks to make sure those vital services stay up-and-running.

“There were also ongoing fabrication jobs to perform all around base on equipment such as sleds, loaders, and bulldozers.”

Joel was also lucky enough to work on some very special projects. The most significant of these was to help install a koru plaque in memory of the 257 passengers and crew who perished in the Mount Erebus air disaster over 30 years ago.

“It was amazing to do something with so much meaning, I felt really privileged to play a part in that,” he says.

Joel shared his work and wider experiences with the world on a dedicated Facebook page called ‘The Antarctic Apprentice’. Launched in September 2010, the page was ATNZ-Competenz’s first venture into the social media landscape.

The page was a success in raising general awareness about the programme. 172 people opted-in from New Zealand, Australia, Argentina, the US, UK, and beyond to follow Joel’s experience. 62% of these people were aged between 13 – 44 years and, interestingly, 48% were female.

At its peak the page had over 300 active daily users; throughout Joel’s placement it generated over 26,000 page impressions and over 100 user responses to his photo updates.

ATNZ has been working with Antarctica New Zealand for the last five years to find and place some of New Zealand’s most promising general engineering apprentices in this once-in-a-lifetime experience.

It’s a winning partnership that challenges our future engineers, and helps New Zealand in its interests in Antarctica.

Antarctic apprentice’s ‘cool’ journey to completion

“I felt really privileged toplay a part.”– Joel McGregor

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“It’s really important for our apprentices to get as much hands on experience from different trades people as possible.”– John Hurcombe

Annual Report 2010 7

A decade of mutual support

Cowley Aquaheat Services in Auckland’s Onehunga is one branch of a nationwide network and one of the strongest supporters of the ATNZ group apprentice programme.

Cowley Aquaheat Services has built up a reputation both as a market leader in New Zealand’s refrigeration and air conditioning sector since 1956 and is a company committed to training excellence.

Since 1956 the company has trained around 30 apprentices, but has been directly involved with the ATNZ programme for the past decade.

Cowley’s Northern Regional Manager, John Hurcombe, says the company’s philosophy for apprenticeship training is directly linked to its operational needs, business growth, and its operational service capabilities.

“Usually we have one to two ATNZ apprentices cycling through operations every three years to keep abreast of industry demand for new tradespeople.

“Currently, we run a ratio of one apprentice to around six tradesmen but I realise that with the growing demand in the sector and an ageing workforce, the apprenticeship programme is becoming even more critical for the industry.”

He is aware that there is a large gap between the experienced refrigeration and AC engineers to new batches of apprentices so in the short term, a shortage issue of qualified trades people exists and in reality will probably increase.

In essence he says more companies need to take on apprentices and develop bloodlines for the benefit and longevity of the industry.

To assist the apprentices with training, the company teams up one apprentice with a tradesman on each project. This allows the apprentice to look at the work site environment and the type of work involved. Once one job is completed the apprentice is rotated to another tradesman so they experience a variety of work while learning different skills.

“It’s really important for our apprentices to get as much hands on experience from different trades people as possible,” says John.

ATNZ’s role in supporting apprentices is really critical, says John. “With all the trades people working on projects full time and with no internal trainer, Cowley relies heavily on the ATNZ mentoring support to keep the apprentices progressing.”

“The ATNZ apprentice mentoring programme provides the direction as well as assisting all the apprentices in their paperwork and training plan. Most of all it simplifies the assessment process of the apprentice’s on-job units, which saves our tradesmen’s time in covering this. It also enables our apprentices to complete their units on time.”

Like most good companies, Cowley Aquaheat is taking steps to try and install succession plans and further training options in an effort to retain good employees.

Alex Fala is one such employee at Cowley Aquaheat – he completed his refrigeration and air conditioning apprenticeship with the company early in 2010, and was awarded a Competenz Ivan Fisk Scholarship to support his current advanced trade certificate studies.

“Alex is a great example of how the ATNZ apprenticeship programme works for the benefit of a company, an individual and for industry,” says John.

“The ATNZ programme simplifies the assessment process of the apprentice’s on-job units.”– John Hurcombe

Annual Report 20108

Issac Adams

Stanley Allen

Gareth Badger

Bryce Blackbourn

Luke Brinkley

Noreen Burchell

Rowan Butters

Ben Carter

James Chao

Thomas Clegg

Nicholas Cook

Christopher Dean

Patrick Doohan

Richard D’souza

Terry Edwards

Jordan Engelsman

Luke Ennion

Carl Fell

Samuel Frost

Daniel Finau

Sean Freakley-Gillespie

Paul Gilbert

Ross Gilbert

Dylan Grant

Andrew Green

Ali Hadwen

Trevor Hansen

Pere Harding

Christopher Harvey

Matthew Hewitt

Nicholas Heywood

Alan Hill-Rennie

Scott Houston

Jeremy Hunt

Callum Hunter

Bradley Ineson

Glyn Johnston

Shane Kavanagh

Leighton Keat

Alexander Krom

Gregory Lay

Jeremy Lemmens

Simon Luke

Shawn Mabey

Michael May

Harleigh McDermott

Daniel McDonald

Ryan Mckay

Simon McNabb

Dianna McQuade

Bryan Midgley

Jeffrey Moffitt

Alexander Mogridge

Blue Moon

Samuel Moore

Mwenda Muyunda

Easton Nicholas

Matthew Pearson

Jeffrey Pell

Andrew Peyton

John Pocock

Andrew Pollock

Rahul Prasad

Shane Prestidge

Nicholas Robb

Cole Robinson

Karl Shaw

Jordan Short

Kyle Silich

Craig Steel

Michael Steens

Jonathan Stone

James Street

Ryan Sutherland

Daen Taylor

Ian Taylor

Warwick Taylor

Luke Tresidder

Nicholas Turner

James Tyson

Luke Van de Pas

Matthew Van de Waardt

Daniel Wallbutton

Jeremy Wey

Cameron Wine

Warren Woodriffe

Congratulations to our 2010 graduatesATNZ congratulates these 86 former apprentices who completed their mechanical engineering apprenticeships and qualifications in 2010.

The ATNZ Trust would also like to acknowledge the seconding companies nationwide who supported each of our graduates on their journey to become qualified tradespeople.

List of Graduates

Annual Report 2010 9

“ATNZ has been managing and mentoring our apprentices since 2005. Over this period, BlueScope Steel and ATNZ have developed an excellent collaborative relationship where the training of our apprentices and the development of their trade skills has always come first.”

Peter Walker, Maintenance Contracts & Shutdown Superintendent BlueScope Steel

“Our company has had numerous apprentices mentored by ATNZ. We are impressed with ATNZ’s staff service, reliability at performing on time, and total control of the apprentice’s learning needs, allowing us to get on with core activities.

I would recommend them to any potential employer.”

Steve Brown, Operations Manager, Hartnell Coolheat.

“CHH Woodproducts Nelson Sawmill employed an apprentice from ATNZ close to a year ago now, and we’ve found them to be very professional with the mentoring support, visiting the site every month, providing feedback on the apprentice, and advising what he needs to work on for his apprenticeship.

I have been involved with ATNZ for approximately four years now, and have no hesitation recommending them.”

Craig Wray, Maintenance Supervisor, CHH Woodproducts.“In 1998 NZ Steel made a business

decision to outsource apprentice training. NZ Steel investigated options to identify apprentice training providers who aligned with NZ Steel’s aspirations to be the ‘Best of the Best’.

After a comprehensive review we chose ATNZ (Apprentice Training New Zealand). For NZ Steel, having a mechanical apprentice training provider who understands our business requirements is a real bonus. When it comes to selecting, hosting, and the safety of apprentices, ATNZ met our rigid standards and continues to do so.

At NZ Steel, training has, is, and always will be a key factor in our success. We look to ATNZ to be innovative in developing cost-effective, leading-edge training solutions for apprentices. This will further enable NZ Steel to optimise our competitive advantage.

NZ Steel requires intelligent, motivated, well-trained, and dedicated apprentices - ATNZ ensures we get just that.”

Bob Hudson, Central Workshops Superintendent, NZ Steel.

Annual Report 201010

ATNZ

2010

$000’s

ASSETS

Current Assets

Cash and cash equivalents 2,677

Trade and other receivables 1,054

Prepayments 215

Total current assets 3,946

Non-current assets

Intangibles 22

Total non-current assets 22

Total assets 3,968

LiABiLiTiES

Current liabilities

Trade and other payables 353

Goods and services tax payable 363

Employee leave benefits 614

Intercompany payable 2,817

Total current liabilities 4,147

TOTAL LiABiLiTiES 4,147

NET ASSETS (179)

ACCuMuLATEd fuNdS

Accumulated funds (179)

Total accumulated funds (179)

For and on behalf of the Board who authorise the issue of the financial statements on 9 March 2011.

Statement of Financial PositionAs at 31 December 2010

Summary Financial Statements

Mike Latter Board Member

Peter Herbert Chairman

Annual Report 2010 11

ATNZ

2010

$000’s

REvENuE

Government grants -

Other revenue 10,371

Total revenue 10,371

ExPENSES

Employee entitlements 9,257

Other expenses from ordinary activities 1,293

Total expenses 10,550

Net surplus / (deficit) (179)

Other comprehensive income / (loss) -

Total comprehensive income / (loss) for the period (179)

ATNZ

2010

$000’s

Opening balance -

Total comprehensive income / (loss) for the period (179)

Closing balance (179)

Statement of Comprehensive Income

Statement of Changes in Accumulated FundsFor the period 1 May 2010 to 31 December 2010

For the period 1 May 2010 to 31 December 2010

ATNZ

2010

$000’s

Net cash flows from / (used in) operating activities 661

Net cash flows from / (used in) investing activities 16

Net cash flows from / (used in) financing activities 2,000

Net increase / (decrease) in cash and cash equivalents 2,677

Cash and cash equivalents at beginning of period -

Cash and cash equivalents at end of period 2,677

Statement of CashflowsFor the period 1 May 2010 to 31 December 2010

Chartered Accountants

Annual Report 201012

independent Auditor’s Report

To the Trustees of Apprentice Training New Zealand 2010 Trust (ATNZ)

We have audited the summary financial statements of ATNZ for the 8 months ended 31 December 2010 as set out on pages 10 to 11.

This report is made solely to the trustees, as a body, in accordance with the trust deed. Our audit has been undertaken so that we might state to the trustees 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 the trust and the trustees 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 8 months then ended, and related notes, are derived from the audited financial statements of ATNZ for the 8 months 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 ATNZ.

Trustees’ Responsibilities The trustees 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.

Other than in our capacity as auditor we have no relationship with, or interest in ATNZ.

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 trustees dated 9 March 2011.

Our audit was completed on 9 March 2011 and our unqualified opinion is expressed as at that date.

Auckland

Annual Report 201014