An industry expert says bringing New Zealand's vocational education institutions together as one, is the shake-up they needed.

Yesterday the Education Minister announced plans to centralise all institutions under a New Zealand Institute of Skills and Technology, with a single governing body. 

Motor Trades Association chief executive Craig Pomare told Kate Hawkesby he's excited by the proposal.

"It's a phenomenally radical approach and we need it. We are short of about 2000 qualified technicians just in automotive."

He said the proposal helps put trade employers back in front to fill shortages.