Govt to put $5.5m in apprentice plan

By VERNON SMALL

The Government has decided to pump $5.5 million into a "Modern Apprenticeship" scheme aimed at eventually attracting more than 3000 trainees.

Prime Minister Helen Clark is due to unveil the scheme in Wellington today, moving on a pledge that provoked some of the strongest applause at town meetings during the election campaign.

The scheme, mainly targeted at people aged 16 to 21, will be piloted over the second half of 2000 before going nationwide in 2001.

The aim is to have 3000 new apprenticeships in place by early 2002.

Helen Clark said New Zealand was suffering from a shortage of skilled workers in a range of industries and this was likely to worsen as the economy grew.

"The Modern Apprenticeships scheme ... will ensure that the issue of skills shortages is tackled head-on, providing young New Zealanders with the skills and motivation necessary to succeed in a modern economy," she said.

Apprenticeship coordinators would be employed to recruit and act as mentors to ensure apprenticeships were completed. Apprenticeships would include on and off-the-job training.

Tertiary Education Minister Steve Maharey said the Government was determined to dramatically increase the numbers in apprenticeships after a decline during the 1990s.

He told Parliament that surveys had shown employers were finding it increasingly hard to recruit skilled labour.

For the first time in a decade New Zealand would have "a genuine programme of apprenticeships [to] ensure that young people have a pathway from school into the kind of industry training they need, and this country so desperately needs."

But National released figures showing that industry trainees and apprentice numbers had doubled over the past 10 years.

However, the Government said that, while the total of those in organised training through Industry Training Organisations (ITOs) was high at 56,000, only 10 per cent were aged under 20.

The new scheme was aimed at overcoming the resistance, particularly of small businesses, to take on apprentices.

Under the scheme, apprentices would be employed and have a registered training agreement with an ITO and would have an individual training plan.

Apprentices' wages would come from businesses, with the $5.5 million budgeted by Government to cover broker and administration costs.

There would be no direct Government payment to employers or apprentices.

The scheme would be modelled on Apprenticeship Training New Zealand, a not-for-profit charitable trust, which had expanded from two regional bases in Auckland and Hawkes Bay to offer a nationwide service.

ATNZ has 95 apprentices at present placed with companies, mainly in engineering. As the apprentices' employer, it handles all administration, career guidance and wages issues, and invoices a "seconding" company for the hours worked with it by the apprentice.