October 16, 2009An extra $100 million will be invested by the Australian Government in a new Apprentice Kickstart program to support up to 21,000 young Australians entering traditional trades this summer.
The new program announced today by Deputy Prime Minister Julia Gillard is being welcomed by industry groups such as the
Housing Industry Association (HIA),
Australian Constructors Association (ACA) and
Master Builders.
It comes as a result of the final Keep Australia Working Report, which reveals the number of people starting trade apprenticeships has dropped by more than 20 percent during the economic downturn compared to the same time last year.
To address this decrease, the Rudd Government has fine-tuned the Jobs Fund stimulus measure to ensure that Australia continues to recruit and train apprentices in traditional trades and meets the potential skills shortage head on.
Gillard today joined Local Jobs Champions Lindsay Fox and Bill Kelty to announce the plan to drive apprenticeships, which is the centrepiece of the final Keep Australia Working Report.
“The Government’s Apprentice Kickstart will more than triple the first year bonus paid to employers who take on traditional trades apprentices this summer,” Gillard says.
“We’re boosting the commencement bonus from $1,500 to $2,350 and then following up with another $2,500 at nine months which means employers will now receive $4,850 in the first year for taking on a traditional trade apprentice over the summer,” she says.
Apprentice Kickstart will be paid for as part of funding secured by both the Greens and Senator Fielding as part of the Government’s economic stimulus package.
The summer apprentices will also be among the first to undertake mandatory green skills as part of their training.
Today’s funding boost brings to around $250 million in the level of additional support the Rudd Government is providing to apprentices.
The bonus will be available for apprentices who are hired between December 1 and February 28, 2010, or until 21,000 apprentices have commenced in traditional trades hardest hit by skills shortages identified on the National Skills Needs List.
This includes trades such as butchers, bakers, bricklayers, carpenters, electricians, hairdressers and pastry cooks.
HIA Deputy Managing Director Shane Goodwin says the extra payments will be helpful in addressing retention.
“While demand for apprenticeships has been affected by the downturn in building and construction the time to be investing in apprenticeships is precisely now so that we might soften the impact of skill shortages when the industry moves into recovery,” Goodwin says.
“The additional apprenticeship incentives are well-targeted on traditional trades and represent good value for money,” he says.
The ACA agrees the initiative will ensure the mistakes of past downturns “are not repeated”.
President Wal King says a healthy Australian economy is reliant on a strong skills base.
“The measures announced today are thoughtful, well-timed and well-directed and the Government should be congratulated,” he says.
Finally, Master Builders Australia says it strongly supports the refocussing of the Government’s Jobs Fund stimulus measure.
CEO Wilhelm Harnisch says while there is currently a short fall of nearly 5,000 building apprentice commencements since last year, today’s new program could rectify this deficit.
“The Government’s Apprenticeship Kickstart Program is strongly supported because of its focus on encouraging employers to take on younger building apprentices during the current soft conditions in the building and construction industry and its forward looking focus on green skills,” Harnisch says.
“Master Builders will strongly encourage builders to take advantage of the increased financial incentives to take on more building apprentices such as carpenters, bricklayers and painters over the December 2009 – February 2010 period,” he says.