Tuesday, August 27th, 2013 - KNX National Group
“The Coalition’s announcement yesterday of interest free Trade Support Loans is definitely a step in the right direction to assist boosting completion rates for apprentices,” says James Tinslay, NECA CEO. 

It is NECA’s view that there is no single solution to increasing lower completion rates in apprenticeships.  However, a Trade Support Loan as proposed would see another pillar of support provided at a time when apprenticeship commencements are in dire trouble in many sectors.

Last week’s decision by Fair Work Commission to provide substantial award wage increases for apprentices was a body blow for the electrical contracting sector.  The decision is of particular concern to the hiring and training intentions of thousands of small business operators who historically employ and train apprentices.  They could just decide that the total cost of training an apprentice over four years is too much an impact on the business and may turn to hiring a fully trained and licensed electrician.

“To compound employer issues the government over recent years has continued to reduce employer incentives to employ apprentices.  Financial incentives are now at such a low level they provide no incentive to hire,” Tinslay added.

As a result NECA is supportive of the Trade Support Loan but believes we need further initiatives to support employers – particularly those running small businesses.  Without employers being willing to employ and train apprentices, there will be no apprentices seeking loans.

-END-

Contact Profile

Ian Richardson – President

P: 02 9888 3081
W: www.knx.org.au

Keywords

COALITION’S TRADE SUPPORT LOANS: A STEP IN THE RIGHT DIRECTION/Fair Work Commission /Trade Support Loan

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