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The OECD’s Centre for Educational Research and Innovation (CERI) is undertaking a two-year international study of exemplary teaching and assessment for adults with basic skill needs. The study, entitled 'Improving teaching and learning for adults with basic skill needs through formative assessment', aims to achieve a better understanding of 'what works', for whom and under what circumstances, and will identify policy levers to improve the quality of provision for this group. This background report for New Zealand was prepared as an input to the OECD study. Adult basic skills are defined for the purposes of government funding as the literacy, numeracy and language competencies (LNL) that are essential for effective participation in work and life. These are usually termed either foundation skills or foundation learning. Foundation learning provision occurs in a range of contexts, including polytechnics (also known as Institutions of Technology), Private Training Establishments and in workplaces. The report provides background information on adult literacy provision in New Zealand, and then considers foundation learning in the tertiary education sector, foundation learning assessment, and challenges and opportunities for the development of foundation learning in the country.