Agreement from the secondary teachers union that changes need to be made to NCEA.

The business think tank the New Zealand Initiative has called up external exams after finding the system's failing young people.

It found the system doesn't guarantee basic literacy or numeracy skills and that Maori and Pasifika teens are funnelled into non-academic subjects.

PPTA president Jack Boyle admits flexibility's led to inequity for some students and told Mike Hosking there are recommendations he agrees with.

"You really want your compulsory schooling to give baseline skills, you know a foundation of skills, to whatever your pathway forward is, whether that's vocational, ongoing study, employment.