Budget funds digital skills development

eHealthNews.nz: National Systems & Strategy

Thursday, 18 May 2023

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NEWS - eHealthNews.nz editor Rebecca McBeth

Budget 2023 invests $27 million in a digital skills package focused on growing New Zealand’s digital workforce and increasing women’s participation in the technology sector from 27 percent to 50 percent by 2030.

The skills package is part of the Digital Tech Industry Transformation Plan, which was launched this month.

The plan includes actions to; grow exports, including the Software-as-a-Service subsector; build a national reputation around tech and innovation; invest in digital skills and talent for the tech sector and related industries; and build Māori participation and leadership in the digital technologies sector.

The Budget announcement says funding will support the development of apprenticeship-like pilot programmes, which will include part payments for trainee wages, employer support and guidance, and will cover set up costs for trainees.

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The ITP Digital Technology package aims to increase women’s participation in the technology sector from 27 percent to 50 percent by 2030, through initiatives such as ‘learn while you earn’ opportunities and supporting employers to foster attractive, supportive working environments to attract and retain a diverse workforce.

HiNZ board chair Karen Blake says it is great to see investment in this space as workforce is a challenge across the tech sector, including data and digital.

“I’m particularly excited to see funding for boosting women’s participation. In health we have a hugely capable and committed female workforce who may be interested in moving into data and digital, if the right supports are in place,” says Blake.

She says it is important to have women in data and digital leadership roles, so women can see possible career pathways as they enter work in the technology sector.

“Growing Māori participation and leadership in the technology sector is also key, especially if we are going to tackle the entrenched inequities in the health system,” says Blake.

NZTech chief executive Graeme Muller says it is great to have some focused funding to address the skills shortage in the tech sector, particularly around new pathways and diversity, and the ITP provides a framework to help coordinate efforts across government and industry.

Muller acknowledged it was ambitious to aim for 50 percent women in the tech workforce by 2030, but says it is important to have a goal to work back from, and he wants to develop a goal for Māori and Pacific participation as well.

Te Whatu Ora is the largest employer of data and digital staff in New Zealand. Muller says this provides a real opportunity to make a difference by committing to schemes such as bringing on new graduates to the workforce.

The Digital Tech ITP started life in 2020 and has had $35million invested in its actions in the previous two budgets. Part of this is telling stories of innovative Kiwi tech companies and marketing them offshore, as well as promoting New Zealand as a great place to work in tech, he says.

It is estimated that the digital technologies sector contributed $7 billion towards New Zealand’s Gross Domestic Product (GDP) in 2021.

Digital Health Association chief executive Ryl Jensen says, “it is important that digital health as a sector is recognised for its growth potential and ability to contribute to New Zealand’s GDP".

Jensen says there appeared to be no extra funding for data and digital health in this year’s Budget, so it will be important to ensure prior funding announcements are honoured.

Budget 2022 signalled investment of more than $600 million in data and digital health projects over the next four years.

“Digital transformation is one of the key focus areas for the health system so continued funding in this space should be a priority,” she says.

The Budget also allocates $451 million for multi-institution research, science and innovation collaboration hubs in the Wellington region. One will be focused on health and wellbeing, particularly pandemic preparedness, and another on technology and innovation.