2.0 Worker Competence and Licensing
2.1 Background
Gas and electrical workers are required to be registered
42. Before undertaking "gasfitting" or "prescribed electrical work" (as defined under the PG&D and Electricity Acts), workers are required to demonstrate to the respective Boards (the Electrical Workers Registration Board (EWRB) and the Plumbers, Gasfitters, and Drainlayers Board (PG&D Board)) that they have fulfilled qualification requirements. Registration is formal recognition that such qualifications are held. Registration serves such purposes as providing a mailing list that can be used to keep qualified people informed of changes in legislation and new standards, whether or not they are practising or working legally under a current practising licence.
43. A registered person must hold a current practising licence to carry out paid work (with certain specified exemptions).
ITOs are now offering occupational qualifications
44. The development of industry training organisations (ITOs), since the introduction of the Industry Training Act 1992, means that ITOs are now offering occupational qualifications registered on the National Qualifications Framework (NQF) and certified by the New Zealand Qualifications Authority (NZQA).
There are anomalies in registration / licensing requirements
45. The Review considered that a key problem with the current registration/licensing regime is that it covers areas of work where control over work is needed but includes others where it is not. For example:
- licensing is required for workers in the electricity supply industry but not within the gas supply industry; and
- only licensed electrical workers may repair electrical appliances for hire or reward: this means that an appliance manufacturer may employ anyone to assemble a washing machine, but if the same machine comes back to the same company for repair, a licensed electrical worker must be employed.
Licensing recognises that a worker is currently competent whereas registration may not
46. The Review suggested that the "registered" worker title can be confusing for the public, who may be unaware that registered workers need an annual licence to practice legally and that the on-going competence of registered workers is not ensured by the mere fact of them being registered.
47. The Review recommended that thought be given to abolishing the concept of "registration" in favour of "licensing". The reason for this is that licensing offers the same benefits as registration in signalling that a person has reached a particular standard but in addition confirms that the person is recognised as currently competent within the scope of the licence.
The costs of communicating with non-licensed workers is borne by licensed workers
48. The residual purpose of registration appears to be keeping communication channels open between the Electrical Workers Registration Board and people who were at some point recognised as having practice qualifications. While communication is seen as useful, the cost of communicating with non-licensed workers is borne by licensed workers. People whose licences have lapsed could be given the option of paying a fee if they wish to remain on the mailing list and receive trade-related information.
2.2 Responses to 1999 Cabinet Decision
2.2.1 Licensing for Installation and Appliance Work
Review Recommendation 7
Because of the risks to the public, all prescribed electrical work and gasfitting on installations and electrical appliances should only be undertaken by those whose competence has been recognised by an independent licensing body.
Review Recommendation 8
In other situations there should be no requirement to use licensed workers and the requirements of the HSE Act will be the primary means of ensuring safety.
Review Recommendation 39
Consideration should be given to abolishing the concept of registration in favour of licensing, since licensing recognises current competence to carry out the work rather than competence only at the time the occupation was first entered.
Review Recommendation 23
The present prescriptive requirements in legislation on the skills required for registration and safety training should be replaced by new more appropriate and flexible requirements established by the industry and ITOs with public input.
Review Recommendation 26
Processes which assist in monitoring the ongoing competency of workers (including audit processes) need improvement and should be reviewed as part of the implementation process.
Review Recommendation 24
Refresher safety training should continue to be compulsory for those involved in hazardous work and this requirement should be extended to cover gas workers. Means of ensuring compliance with this requirement should be explored further with the ITOs and boards, but could involve regulations under the HSE Act requiring certificates of competence.
Licensing categories and criteria are prescribed by legislation
49. In line with Review Recommendation 7, installation and appliance work would continue to require worker licensing. In relation to gas, the scope of an "installation" is covered in section 5.3.3.
50. Currently, the minimum requirements to be included in formal training (or equivalent informal training) for electrical work are prescribed in schedules to the Electricity Regulations 1997. There are four classes of registration - electrical service technician; line mechanic; electrician; and electrical inspector. Qualifications for electricians and line mechanics set by industry, and registered on the New Zealand Qualifications Framework, are recognised (through Memoranda of Understanding with Industry Training Organisations) as meeting formal training requirements for registration.
51. Minimum qualifications for gas work are prescribed in regulations under the PG&D Act and recognised by the Plumbers, Gasfitters and Drainlayers Board through a registration process. The Board is a self-funded, stand-alone, statutory body. There are three classes of registration for gas workers: registered gasfitter, craftsman gasfitter and gas inspector.
Competency standards are determined by industry
52. Standards of competency (unit standards) are determined for these industries by their respective ITOs, in consultation with industry and other stakeholders. After technical evaluation, the standards are registered by NZQA and become the criteria for assessment of competency. Combinations of standards are similarly determined by the ITO as the basis for specified qualifications and are so registered with NZQA.
Training providers have to be accredited by the ITO and NZQA
53. Training delivery is both on-job (for example, through an apprentice contract) and off-job (for example, via a polytechnic course). Training providers (as opposed to employers of apprentices) must be state institutions or registered private training establishments. Such providers have to be accredited by the ITO and NZQA to be entitled to assess against standards. Normally, assessors registered with ITOs assess on-the-job training. The quality of assessment is maintained through national moderation systems defined and often administered by the ITOs.
Unit standards records are maintained by the New Zealand Qualifications Authority
54. The results of assessment are notified to NZQA, which issues (a) an annual update of the individual's Record of Learning that lists all the standards credited to date and (b) qualifications when sufficient and appropriate credits have been gained. Occupations for which there is no formal qualification, therefore, may be covered by separate groupings of standards: the Record of Learning becomes the "qualification" in such cases.
ITOs will ensure that unit standards are kept up to date
55. It is apparent that ITOs are able to determine whether or not a worker is competent at the time of assessment. As unit standard writers and facilitators of training for their industries, they are capable of ensuring that unit standards remain abreast of industry requirements and of new materials and technology. Theoretically, they are ideally placed to ensure that workers receive appropriate training in workplace health and safety procedures, although this is not always explicit in registered standards and qualifications.
Competency standards need not be set out in legislation
56. In respect of competency, therefore:
- ITOs and NZQA have the means to ensure worker competency and normally include with this, but are not required to include standards of competency in workplace health and safety: the Electrotechnology ITO (ETITO) and the Electricity Supply ITO (ESITO) require the attainment of basic unit standards covering safe working practices;
- licensing authorities have separate standards for worker competency and may include workplace health and safety within those standards; and
- employers, including the self-employed, are responsible for product safety under, for example, the Consumer Guarantees Act and various industry-specific Acts (under which the licensed person carrying out the work may be held responsible), and are responsible for workplace health and safety under the HSE Act.
There would be a considerable cost benefit for a single agency to assess worker competency
57. It would be of considerable cost-benefit to the industry if the responsibility for assessing worker competency lay unambiguously with a single agency. Logically, this would be the ITO. Currently, under the provisions of the Industry Training Act (ITA), ITOs are required to consult with "industry"; the interests of the electricity and gas industries might be better served if consultation with relevant Government departments (including OSH), and with registration/licensing authorities were formalised.
Licensing authorities should determine licensing categories and criteria
58. Licensing authorities, as a corollary, should have sole responsibility for assessing the current competence of workers, including, in their assessment, such factors as entry-level qualifications, post-entry training, industry experience, current skill levels, safety management knowledge and skills (whichever are appropriate).
59. The EWP considered that the determination of licensing categories and conditions of issue should be left entirely to licensing authorities and need not be legislated.
"Competency" includes aspects of product safety, workplace safety, and functionality
60. "Competency" encompasses 3 broad aspects:
- Product safety competency through which: the finished product is safe for use by the public (or customer); and the safety of the public (or customer) is assured before the work commences, during the work, and after the work is completed;
- Workplace safety competency through which: the worker's own safety and the safety of other workers is assured before the work commences, during the work and after the work is completed; and the safety of the public (or customer) is assured during the work;
- Functional competency through which: whatever is being worked on functions when the work is completed.
From this:
- "Product safety competency" is taken to be the responsibility of the occupational licensing regime, together with employers and individual workers;
- "Workplace safety competency" is taken to be the responsibility of the HSE Act regime, together with employers and individual workers; and
- "Functional competency" is taken to be the responsibility of employers and individual workers.
Industry and its training regime will ensure initial and ongoing competency
61. The industry and its training regime have a strong role to play in ensuring initial and ongoing competency for all three facets of competency, which are (mostly) covered by formal training (or equivalent). Formal training includes satisfactory assessment to the unit standards developed by Industry Training Organisations for industry/ NZQA qualifications.
Licensing needs to address occupational issues
62. The statutory requirements, occupational licensing requirements (product safety competency), and requirements of the HSE Act (workplace safety competency), form an integral part of these qualifications. With few exceptions, it is difficult to separate these requirements out as they are "interwoven" with functional competency in the unit standards.
There are other avenues for obtaining a licence
63. The obtaining of an industry/NZQA qualification may entitle the holder to an occupational licence. Note that there are other avenues ("informal training") whereby a licence can be obtained (for example, for persons from overseas). Product safety competency and workplace safety competency are generally only relevant in the context of functional competency, that is, they are virtually meaningless unless applied to a work situation. For example, "isolation" (deliberate disconnection) has little meaning unless applied to functioning equipment, accessories or appliances.
It is difficult to separate the three aspects of competency, both in licensing requirements and public perception
64. While the emphasis of occupational licensing is on public safety - product safety competence - the reality is that the public infers that a licence confers functional competency and a number of employers infer that the licence confers workplace safety competency.
65. It is very difficult to treat the three categories of competency separately. At present, training for the first occupational licence covers the three categories and only in part treats them as separate. It would be very costly (and unnecessary) to expect industry to restructure its training to separate the three areas. Similarly, it would be unreasonable to expect them to address the three competency categories separately when considering ongoing competency issues for the issue of second and subsequent occupational licences.
Ongoing competency can be established in a variety of ways
66. Establishing ongoing competency can be done in one or more ways. Examples are:
- Worker Profile: this is an outline of work performed within the previous licensing period including types of work done, degree of supervision, (supervised, unsupervised, supervision of others) training, refresher courses attended and safety history. This can be certified by the employer or an acceptable third party;
- Unit standards: Unit standards are developed and used as tools for the self-assessment of competency in work carried out. Outcomes would be independently assessed. Assessment could be written, practical or any such combination as may be appropriate to the type of work carried out by the person being assessed; and
- Incorporation within the requirements of the HSE Act: through this approach an employer develops and uses procedures that ensures that employees can comply with occupational safety and health requirements. The employer and employees meet regularly to discuss and analyse the work being done and the safety implications of this through using the procedures. Because of the connections described above between product safety competency, workplace competency and functional competency, product safety competency and functional competency are included.
67. Competency audits are currently carried out by the EWRB and the PG&D Board.
68. There may be other methods of establishing ongoing competency acceptable to a licensing authority.
Safety training criteria should be set by licensing authorities
69. The Review recommended that regulations, codes and/or guidelines should require periodic worker safety training for high risk electrical and gas work. The Electricity Regulations already require periodic safety training as part of the licensing regime. Legislative requirements for training would logically be placed in regulations under the HSE Act as they focus on worker safety.
70. The alternative would be for licensing authorities to require regular safety training as a condition of issuing a licence or limited certificate. This should include the provision of safety training by entities operating under an employer's licence.
71. The EWP favours the setting of criteria by licensing authorities.
EWP Recommendation 5
72. It is recommended that:
- the industry set competency standards for recognition by licensing authorities as meeting the requirements for holding a licence;
- licensing authorities move to a licensing only regime and that references to registration and licensing in the relevant legislation be amalgamated under a single term;
- licensing authorities be required to conduct public consultation and provide for public input into the competencies set by the relevant ITOs before accepting them as meeting the public and product safety outcome requirements of a licence or licensing category;
- licensing authorities have sole responsibility for determining criteria for licence categories and the criteria for each category: subject to consultation with industry and the public;
- issues relating to recognition of informal training and balance of on-job and off-job training be resolved between licensing authorities and ITOs;
- any licensing procedure should require the applicant to provide:
- proof of appropriate entry qualifications; and
- evidence of current competence;
- ongoing competency requirements be deemed to be satisfied only where evidence is presented of competency in safe working practices and testing to:
- ensure own safety,
- ensure the safety of other workers, and
- ensure public (customer) safety;
- licensing authorities be required to recognise methods of certifying ongoing competency that are equivalent to refresher courses as they are currently conducted;
- the criteria for competency in safe working practices and testing to ensure own safety, ensure other workers safety, and ensure public (customer) safety be set by the licensing body and OSH in co-operation, recognising that workplace and product safety are intertwined and, therefore, it is more efficient for both to be covered together;
- the Government, as part of its planned review of the HSE Act, consider an amendment to section 13 to include a reference to ongoing competence; and
- references to refresher training be deleted from the Electricity Act.
Legislative Implications
73. Remove from the energy sector Acts references to registration, and to licensing categories and criteria.
74. Amend the energy sector Acts to empower licensing authorities to set categories and criteria for licensing.
75. Amend the relevant sections of the energy sector and HSE Acts to specify initial competency and on-going competency as a requirement.
76. Remove the requirement for regular safety training from the Electricity Regulations, but make provision for the licensing authorities to require periodic retraining as a pre-requisite to licensing. (Special consideration would need to be given to industries such as the aviation and maritime industries. The regulatory needs of the aviation industry require particular consideration.)
Administrative Issues
77. Licensing authorities would need to develop:
- appropriate liaison arrangements with stakeholders in workplace health and safety;
- processes for public consultation;
- criteria for classes of licences and their respective conditions of issue; and
- systems for issuing, re-issuing and recording information on licences.
2.2.2 Supply Operations
Review Recommendation 9
Owners of supply operations legally accessible to the public should be required to operate under a risk management system.
The electricity and gas supply sector does not require a licensing regime
78. Electricity and gas supply are areas that require specialist knowledge, which means that an employer, generally the asset owner, is likely to be in the best position to judge whether individual workers are sufficiently competent. In the supply sectors, design and operation of an entire system or process is often the most critical factor in ensuring product safety, rather than the competency of individual workers. Therefore, there appears to be little justification for individual worker licensing in the supply sectors. However, the number of persons and organisations carrying out electrical and gas work is increasing with industry fragmentation following deregulation.
Supply sector operators should be required to work under a Safety Management System
79. The Review recommended that no formal approval or worker licensing be required in the supply sectors. Workplace safety in each supply sector is adequately regulated via performance-based provisions in the HSE Act. The supply sectors, and the electricity supply sector in particular, has argued that supply work should be covered solely by the HSE Act. However, the existing HSE Act does not necessarily provide adequate assurance that public safety and the continued safety of completed work would be addressed. Additional legislation such as the Electricity and Gas Acts would need to provide this assurance.
80. The Review recommended that supply operations accessible to the public have a risk management system, which includes provisions for ensuring public safety.
Safety Cases and Asset Management Plans
81. Similar systems are being developed in the supply industry for other purposes: the Ministry and gas supply industry have been examining "Safety Cases", and the information disclosure regulations require, or are expected to require, the disclosure of Asset Management Plans and key performance indicators.
82. Requirements under the HSE Act regime, commercial legislative requirements such as Information Disclosure, and the "risk management system" proposed by the Review, should be styled so that, as far as practicable, one set of documentation meets all requirements.
Costs of a Safety Management System
83. It is likely that some industry participants may need to contribute additional resources to upgrade their current plans and operations sufficiently to become compliant. However the direct compliance cost in maintaining the risk management system should be minimal for an organisation already running an effectively managed operation.
84. The approach already has broad industry support, indicating recognition of the return on investment for stakeholders and customers.
85. The disadvantage of requiring a risk management system is that it is less suitable for the newer, smaller operations because of high development costs. However, it is expected that industry would move to develop model systems as exemplars for the supply sector, in order to reduce such costs.
Elements of a Safety Management System
86. It is proposed the term "safety management system" be used rather than "risk management system" since it more accurately describes the objective. The safety management system should:
- be defined and documented;
- be relevant to the risks to be managed, including responses to emergencies; and
- be able to demonstrate that required safety levels are being achieved and would continue to be achieved.
87. It is envisaged that essential elements would be:
- verification of credibility (by an independent auditor);
- the maintenance of records; and
- quantification of key safety indicators.
88. The ITO competency programme would be expected to continue to play an important role within the plans. The ITO recognition of competency would help give prospective employers assurance of the skills of prospective employees.
89. Additional regulations and Standards for higher risk aspects of supply work may need to be developed and, where necessary, made mandatory, as has been done for high-pressure gas pipelines.
90. Changes in organisational structure and ownership arrangements have led to many more organisations operating in the industry. This creates a risk of communication difficulties and traceability if there should be problems. In the gas industry in particular, loss of supply requires careful management because of the risk of air entering the system and gas escaping when supply is restored.
91. To address this situation, it is proposed that all organisations operating gas systems accessible to the public be required to notify their operation to the Ministry of Economic Development. A similar requirement is not considered necessary in the electricity supply sector.
EWP Recommendation 6
92. It is recommended that:
- work in the electricity generation, transmission and distribution sector no longer require workers to be licenced;
- parts of the electricity and gas generation/production, transmission, and distribution systems legally accessible to the public be required to be covered by a safety management system, as described above;
- current legislative and regulatory arrangements for electricity and gas supply companies continue until the relevant issues are satisfactorily resolved; and
- all organisations operating gas systems accessible to the public be required to notify their operation to the Ministry of Economic Development.
93. It is noted that issues of regulating/licensing and safety management systems in supply operations need to be resolved by a designated working group.
Legislative Implications
94. The Energy Acts would need to be amended to require safety management systems.
Administrative Issues
95. A transition period may be necessary to allow enterprises in the two supply sectors to establish their safety management systems.
2.2.3 Exemptions from Licensing Requirements
Review Recommendation 13
Existing provisions for work under supervision and for householders or similar to do defined work for themselves should be maintained.
Review Recommendation 15
The existing method of providing exemptions through prescriptive criteria that include requirements to follow particular instructions contained within Codes of Practice or Standards should be retained.
Review Recommendation 12
The licensing regime should provide for organisations and individuals able to prove they have alternative means of ensuring safety to apply for an exemption from the requirement to use licensed workers.
Review Recommendation 14
An exemption should be introduced to remove the anomaly that allows manufacturers to employ non-licensed workers to assemble appliances, but requires them to use licensed workers to repair them.
Review Recommendation 47
Options for either exempting competent workers from the licensing system or for recognising them through the licensing system need to be developed in consultation with the industry sectors involved.
Review Recommendation 16
The exemption process should be reviewed with the aim of:
- improving the administration process; and
- standardising it across the electricity and gas regimes.
Review Recommendation 17
This review should include evaluating the justification for continuing with some of the current exemptions (e.g., "Person In Charge" exemption in the gas safety regime and "Qualified Electrical Engineer" in the electrical regime), and any changes required to make these exemptions more effective or to improve accountability.
Qualified Engineers are currently exempt from licensing requirements
96. Currently, Qualified Engineers, by virtue of qualifications in electrical engineering and continued registration under the Engineers Registration Act and Engineering Associates Act, are exempt from registration/licensing requirements under the Electricity Act. The EWP considers that this exemption should be retained and be conditional upon any qualified engineer being subject to an ongoing competency requirement as used for licensed workers.
Tradespersons undertaking specific electrical or gas work should have a more flexible authorisation system
97. Certain tradespersons (gasfitters and plumbers) are permitted to carry out a specific range of electrical work, including work on the electrical components of gas appliances under an "exemption for tradespersons" (section 112 of the Electricity Act).
98. Under s57(1) of the PG&D Act the Board may certify a person to do specific work (the "Certificate of Exemption"), which is less than they would be authorised to do with a full licence. The PG&D Board uses this provision frequently, to enable persons to undertake such work as the maintenance or installation of appliances.
99. In both of these provisions, the "exemptions" are granted on an individual basis and only after the applicant has met competency criteria to ensure that persons doing such work are given the training needed to carry out the work safely and leave a safe product behind at the completion of the work. This is considered appropriate.
100. It was agreed that the model being used for gas works well, and seems appropriate for electricity. However there is a question as to whether the authorisation might be better referred to as a limited or qualified licence, rather than an exemption.
101. The term "qualified licence" is suggested in the interim, to avoid confusion with the "limited certificate" already defined under the PD&D Act.
102. This issue is discussed further under section 2.2.5 (licensing categories).
The "Person in Charge" provision should be phased out
103. At present the section 57(3) or "person in charge" exemption of the PG&D Act provides that installations designed to consume in excess of 60,000 megajoules per hour of gas may be exempted from the requirement to use registered gasfitters. This exemption is currently used by many industrial sites, most of which are not in the supply sector. It is simpler for such industries to use this exemption rather than apply for an employer licence. It was recognised by the EWP that this provision performs essentially the same function as the employer licence system, and therefore could be superseded by the safety management system. The provision in section 57(3) should therefore be phased out.
Employer licences should be replaced by a Safety Management System, as an alternative to personal licensing
104. The EWP considers that the provision for an employer of persons carrying out electrical and gasfitting work to opt out of employing individually licensed employees (currently done through the employer licence system) should continue, subject to compliance with performance based requirements developed from the current criteria. Such a provision would place the responsibility for the safety of the completed work (product) on employers. Worker and workplace safety would be covered by the HSE legislation.
105. The system would be similar to, and compatible with that proposed for supply operations accessible to the public (section 2.2.2). The existing requirement for licensing would not be retained. The exemption from employing licensed persons would be simply on the basis of an employer being able to demonstrate that they are meeting safety management criteria. Employers applying the system would be required to advise the appropriate Board so that the auditing can be carried out.
Non-exemption for simple electrical work while employed may not be appropriate
106. There is a restriction on the carrying out of certain simple electrical work (such as homeowners are permitted to do) by an employee, unless that employee is licensed or covered by an employer licence.
107. There is also a question of whether a general exemption in respect of the changing of blown fuselinks with identically rated fuselinks and, possibly, the replacement of single-phase sockets, would be appropriate.
The homeowner exemption should be extended to gasfitting
108. It is proposed that the exemption enabling homeowners to do certain electrical work be extended to encompass some gas work. Such work would require certification by a suitably qualified licensed person before connection, and the person certifying would need to be satisfied that the work was compliant. This change would bring consistency between the regimes, and provide more flexibility, particularly for installations supplied from small LPG installations (section 5.2.1).
Should the exemption for teaching institutions be retained
109. Electricity regulation 17(2)(p) provides an exemption allowing teaching institutions, laboratories and research projects to make or set up temporary electrical equipment for demonstration, teaching, testing or research purposes in laboratories, teaching institutions etc without any licensing or equivalent requirements. The work is however, inherently, potentially as dangerous as much other electrical work.
110. Schools, etc subject to the Education Act have safety obligations under National Administrative Guideline 5, which is prescribed and audited against by the ERO. These obligations are expected to fulfil the criteria of a safety management system as described above, so such schools would have no need of this special exemption. Similarly, most other organisations taking advantage of this exemption would be expected to already have appropriate safety management systems in place, and there is no clear reason why any that do not (probably only a small number) should enjoy a special exemption.
111. There is a possibility of removing the exemption for teaching and similar institutions in favour of the general licensing or exemption provisions, noting that most institutions are expected to already have controls in place that satisfy the exemption based on having a defined safety management system in place.
The standardisation of processes across the energy sector is supported
112. The proposal that exemption requirements be standardised across both the electricity and gas supply industries is supported by the EWP. Improvements in the process could include automatic exemption where there is demonstrated compliance with, for example, an appropriate AS/NZS standard. Work needs to be done with industry to provide guidelines on the parameters required for an exemption where recognised systems are not used.
EWP Recommendation 7
113. It is recommended that:
- the current exemption for qualified engineers be retained but be conditional on those persons being periodically assessed;
- the present exemption for other workers to carry out specific electrical or gas work be expanded and made more flexible under a "qualified licence" provision, in place of the existing "exemption for tradesperson";
- s57(3) of the PG&D Act be replaced by the exemption by virtue of having a safety management system;
- the general concept of employer licensing be replaced by an exemption by virtue of having a safety management system. The conditions would be much less prescriptive and the focus broadened to include small and medium-sized operators, but employers applying the system would be required to advise the appropriate Board;
- the present exemption for homeowners to do electrical work be retained in its present form, except that it be able to be checked by a "supervisor of electrical work", not just an inspector;
- a similar exemption be introduced for homeowner gas work; and
- the current exemptions within the electrical regime relating to Defence and Transport be retained.
Views are sought on:
- whether the exemption for teaching and similar institutions should be removed in favour of the general licensing or exemption provisions;
- whether a general exemption in respect of the changing of blown fuselinks with identically rated fuselinks and, possibly, the replacement of single-phase sockets would be appropriate; and
- whether the proposed exemption, for those having a defined safety management system, could be permitted to extend to contractors that may not necessarily have their own such system in place.
Legislative Implications
114. Remove from the energy sector Acts references to exemption from licensing requirements, except for classes of work given general exemption.
115. Amend the energy sector Acts to identify licensing authorities as having sole responsibility for determining criteria for, and granting and certifying specific or limited exemptions from, general licensing requirements.
Administrative Issues
116. Any radical restructuring of the licensing regime would require the development and implementation of comprehensive licensing processes, the establishment of a secretariat, and dissemination of both general and specific explanatory literature and guidelines. It is likely that the newly constituted licensing authorities would require significant resources and time to carry out these tasks.
117. The extension of the homeowner exemption into gas work would necessitate the preparation of suitable support information for homeowners.
2.2.4 Appliance Safety
Review Recommendation 43
Appliance safety: Existing requirements for licensing and certification should be retained until further work is done on the level of risk from repair and maintenance of gas appliances.
Flexibility in the regime should ease the compliance cost issue for appliances repaired by the manufacturer
118. Currently, repair and maintenance work on electrical appliances must be carried out by appropriately licensed workers.
119. The need for this requirement when appliances are returned to the manufacturer for repair has been questioned. However there is evidence that unskilled repairs have led to serious injuries and death.
120. The EWP considers that in a manufacturing environment where a "Supplier Declaration" has effect, the supplier declaration could apply as an alternative to licensing requirements for appliance repairs and maintenance. However in other situations, maintenance of the appliance should be by a licence holder or under an exemption by virtue of having a safety management system.
121. While there are no general requirements for gas appliances, work on the pipework and control mechanism of an appliance falls within the definition of gasfitting and must be undertaken by a registered and licensed worker. Some types of appliance repair work following an accident must be certified. No concerns have been identified with this regime except for the need to bring the requirements for LPG appliances into line with those for other gas appliances.
122. It should be noted that the regime for the supply of new appliances is being reviewed separately.
EWP Recommendation 8
123. It is recommended that:
- electrical appliance repairs continue to be required to be performed by a licensed person (or under one of the generic exemptions);
- appliance manufacturers and persons who carry out electrical repairs or maintenance work be exempted in a manufacturing environment, i.e. where their "supplier declaration" has effect. In other situations, maintenance of the appliance should be by a licence holder or under an exemption by virtue of having a safety management system; and
- existing licensing requirements for gas appliances be continued.
Legislative Implications
124. None is evident.
Administrative Issues
125. The regime for the supply of new appliances is being reviewed separately.
2.2.5 Licensing Categories
Review Recommendation 44
Boards should review their categories of registration with the aim of making identification easier for users of electrical and gas services. The gas categories are particularly in need of amendment. A simplified version of the current classification system should be adopted.
The licensing system would benefit from greater flexibility
126. There is a tendency within the energy sector for occupations to become increasingly specialised and fragmented. Appliance manufacturing, energy generation, construction and maintenance of transmission and distribution networks, and household installation and repair, require different levels and kinds of theoretical knowledge and practical skill. Hence, "competence" or "qualification" cannot be seen simply in terms of the accredited training and registered qualifications specified for recognition by a licensing authority.
127. To accommodate all classes of occupation, including those coming into existence as materials and technology evolve, it is necessary to establish some general principle governing the basis for issuing licences. This could be, simply: "verifiable competence in the work specified", the standard being determined by the ITO, certified by NZQA and verified by the licensing authority. The requirement for licensing, therefore, would be credit, listed on a Record of Learning, for the combination of unit standards encompassing the relevant knowledge and skills. A frequently quoted example is "installation of gas-electric appliances", for which competency requirements from both industries are a prerequisite. Current licensing requirements do not accommodate this "occupation", except by way of specified exemptions. It would not be difficult to determine, however, which minimum set of standards from the Framework was relevant and, upon proof of credit for them, issue a licence specific to that work. Standards required for the manufacture of appliances and for their repair (which are likely to be markedly similar) could be similarly agreed upon.
128. It has been argued that the primary need is for licensing in a small number of "main-stream" classes, covering for example domestic installations, commercial/industrial installations, etc.
129. It is suggested that these should be complemented by a "qualified licence" that would allow recognition of specialist needs on a case by case basis. This provision would be modelled on the current "certificate of exemption" provided for in the PG&D Act.
130. This issue should be left to licensing authorities and industry to resolve and be removed from legislative control. It is expected that within this framework there will be a clearly identifiable domestic electrician/gasfitter able to do the normal range of domestic electrical or gas work.
The PG&D Board and the EWRB should be able to issue licences covering work in the other discipline
131. Licensing of other trades (e.g. for gasfitters to do specific electrical work) is currently handled by requiring the licensed gasfitter to gain separate recognition from the EWRB. This adds cost (through requiring dual licences) and tends to fragment training.
132. It is therefore proposed that the PG&D Board be able to issue licences for electrical work, and the EWRB be able to issue licenses for gas work. While the parent Board would retain control over the definition of competency requirements, the Board issuing the licence would be responsible for ensuring the ongoing competency of the person receiving the licence. (The issuing Board would however be able to call on the parent Board for assistance with competency monitoring if appropriate.)
Special aspects of worker competency that affect licensing
133. If a special category for inspectors is not to be retained then the licensing system and the competency framework would need to develop a methodology identifying those persons who have the particular competencies to:
- test and inspect the work of others;
- test and inspect existing installations;
- supervise persons not individually capable of performing certain work; and
- assess safety to the fundamental safety provisions of the legislation.
134. This issue has a link to the certification of electrical safety.
EWP Recommendation 9
135. It is recommended that:
- any licensing system adopted by a licensing authority be "open": that is, it should be sufficiently modular to accommodate all likely competency sets required for specialised occupations and provide a clear recognition system for consumers; and
- provision be made for the PG&D Board and the EWRB to issue licences covering work within the other discipline, with standards continuing to be set by the parent Board, and monitoring of ongoing competency being the responsibility of the issuing Board.
136. It is noted that issues relating to streamlining licensing categories and exemptions from licensing need to be worked through by the Boards and ITOs, based on industry needs. It is also noted that it is expected that, within the licensing framework, there will be a clearly identifiable category of domestic electrician/gasfitter.
Legislative Implications
137. Removefrom the energy sector Acts references to and criteria for classes of licence.
Administrative Issues
138. As noted above, the key role of licensing authorities in the administration of a licensing scheme would need to be supported by adequate secretariat and data management resources.
2.2.6 Re-Licensing
Review Recommendation 45
Boards should consider whether re-licensing on an annual basis is the most effective way of balancing administrative convenience, compliance costs on workers, and ensuring current competence.
There is a case for a biennial renewal of licences
139. Registered electrical and gas workers are legally obliged to obtain a practising licence before undertaking "prescribed work" and "gasfitting" within the scope set for their classes of registration. Both the EWRB and the PG&D Board issue licences on an annual basis. A licence expires if it is not renewed or if the applicant is de-registered. The Review suggested that the costs of annual re-licensing may outweigh its benefits.
140. A crucial factor in determining the appropriate term for a licence is the need to obtain evidence of current competence and, specifically, safety competence. Some sources suggest that a biennial refresher course is appropriate for the maintenance of safety competence: for example, most employment groups consider that first aid and CPR certificates should be renewed every two years, although there is no official term for their expiry.
A benefit would be reduction in compliance costs
141. Benefits that would accrue from extending the licensing renewal period to two years include reducing the average annual processing load for licensing authorities and reducing the compliance costs to licence holders. This may, to some extent, be offset by the size of the transactions (up to $200) each two years.
EWP Recommendation 10
142. It is recommended thatlicensing authorities consider renewing licences on a biennial basis.
Legislative Implications
143. None is evident.
Administrative Issues
144. Biennial licence renewal would result in savings through the reduced licensing workload.
2.2.7 Recognition of Overseas Licences
Review Recommendation 46
Legislation should make provision for the explicit recognition of licences from overseas which are sufficiently similar to those in New Zealand without the need for specific re-verification within New Zealand.
Review Recommendation 25
New Zealand ITOs should be encouraged to co-operate with Australian ITOs or the equivalent in the development of unit standards.
Recognition of overseas qualifications and licences should be delegated to licensing authorities
145. It should be possible to develop suitable legislative wording to provide for the recognition of overseas issued registrations or licences but only to the extent that the documents presented constitute reasonable evidence of the current competency of the holder to produce a safe product, as would be provided by the issue of a Board licence. If the overseas documents are deficient in that respect, then the Board should treat the presentation of the document in the same way as it would approach a normal licence renewal and request such suitable evidence as an employer's or polytechnic's declaration.
146. The explicit recognition of overseas qualifications within legislation brings with it the same problem as having registration schedules in regulations; it is too difficult and time consuming to change. With the process used by the EWRB, a certificate or licence recognised in its manual Recognition of Overseas Qualification and Experience requires no other verification (the fact that it is in the manual is verification of its status). Certificates or licences not in the manual are verified once. They are not re-verified if they are presented by a different applicant. The qualifications recognised through the manual are consistent with the requirements used by Trades Recognition Australia for immigration purposes, and by State and Territory licensing authorities in Australia.
Progress has been made with TTMRA in respect of qualifications, but further work is needed on licensing for gas and electrical workers
147. The Trans-Tasman Mutual Recognition Arrangement (TTMRA) covers equipment, technical standards and worker licensing. Both Australia and New Zealand want mutual understanding and acceptance of qualifications for industries grouped under the Australian "utilities" umbrella, including electrical, electronics, and gas. Unless some specific exception is agreed, TTMRA will deem people licensed in Australia to be qualified for licensing in New Zealand and vice versa.
148. Reciprocity arrangements for gas workers have been in place for some time. The PG&D Board assess applicants and issues reciprocity certificates. Applicants who do not meet New Zealand skill levels are required to upskill through the ITO system.
149. Reciprocity for electrical worker licensing has been in place for many years between New Zealand and Australian States and Territories and has been supported since 1992 by Federal/State Mutual Recognition Acts. However, there are differences between jurisdictions. Some require licensing for work that does not require licensing in others. A National Electrical Licensing Reference Group involving representatives of employers, unions, associations, regulators, and contractors involved in electrical work is seeking agreement within the next year on the removal of these differences.
EWP Recommendation 11
150. It is recommended that:
- the present provisions relating to the recognition of overseas qualifications be retained with the explicit recognition being removed from the schedules to the regulations; and
- the implications of TTMRA be reviewed.
151. It is noted thatthe New Zealand Qualifications Authority and ITOs are engaged in promoting common trans-Tasman occupational competency standards and that industry support for these initiatives would be appropriate.
Legislative Implications
152. Remove specific criteria for the recognition of overseas qualifications and licences from the energy sector Acts.
153. Amend the energy sector Acts to empower licensing authorities to establish criteria for and recognise overseas qualifications and licences.
Administrative Issues
154. Resource requirements for licensing authorities as previously noted.
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