Industry backs training boost
The Apprenticeship Boost programme launched by the government has been praised by the Motor Trade Association (MTA).
“We are absolutely delighted the government has committed to provide direct support for employers who take on the bulk of the educational burden of vocational training,” says chief executive Craig Pomare, pictured.
“The workplace classroom is the critical ‘last mile’ of training for our sector and it’s great to see that recognised in this announcement.”
Chris Hipkins, Minister of Education, says the $380 million scheme will pay businesses $1,000 per month for each apprentice in the first year of training, and $500 a month for those in their second year. It will run for 20 months from August until April 2022, and about 18,000 employers will be eligible to apply. The programme aims to ensure there will not be a skills shortage when the economy recovers.
“After the global financial crisis, there was a significant reduction in apprentices on the job because as the economy turned down, employers often laid them off,” says Hipkins. “As the economy picked up, we struggled because of significant skill shortages.
“We want to learn from that mistake. We’ve got to do a better job of keeping our apprentices this time around, and hopefully recruiting new apprentices so skilled workers are there when we need them.”
The subsidy is focused on the first two years of apprenticeships because that was when apprentices are most vulnerable, he adds. The scheme is available to apprenticeships in all fields, unlike the free trades training scheme announced in the May budget.
The amount of money employers receive will vary depending on how far through their training of apprentices was when the subsidy starts in August. The maximum payable will be $12,000 for 12 months of training in year one and a further $4,000 for eight months in the second year.
Pomare says the scheme will be welcomed by all MTA members committed to taking on apprentices. “Our members know apprentices are the future of our industry and economy. We need a strong, assured supply line of well-trained young people coming into the sector.”
He hopes there will be a timely review of the programme after implementation. “It makes sense for the scheme be reviewed after the first year and consideration given to whether it needs to be modified or extended. We would welcome the opportunity to be part of that review process.”
