Minister for Vocational Education and Skills Senator the Hon Scott Ryan says the latest report from the National Centre for Vocational Education and Research (NCVER), Apprentices and Trainees 2015 December Quarter, demonstrates the devastating impact Labor’s attack on apprentices and their employers has had.
“Bill Shorten and Labor cannot be trusted to support Australian apprentices or their employers. Australians should look to Labor’s record of slashing employer apprentice incentives, rather than their promises.”
Minister Ryan said that Labor cut employer incentives nine times between 2011-2013, a total cut of $1.2 billion.
“Due to Labor’s unprecedented cuts to apprentices and their employers, 25 per cent fewer apprentices commenced training between 2012 and 2013. This drop, the biggest ever on record, continues to affect the number of apprentices in training today,” Minister Ryan said.
Independent voices at TAFE Directors Australia, and the Productivity Commission have noted the impacts of Labor’s cuts.
“…changes to a number of government financial incentives between 2012 and 2013 — including the removal of employer standard commencement, recommencement and completion incentive payments for existing workers in training not on the Department of Education’s National Skills Needs List (NSNL) — appear to have contributed to a marked decline in the number of commencements in non-trade occupations from mid-2012”.
Source: Productivity Commission Report into the Workplace Relations Framework (page 270) – December 2015 (Page 270)
“…the axing of employer apprenticeship incentives would further impact the critical decline now facing Australian Apprenticeships. The reduction in employer incentives in July 2012 was the primary reason for a dramatic drop in apprenticeship numbers and there is no doubt this decision will have a similar effect.”
Martin Riordan, Chief Executive Officer of TDA
Source: TAFE Directors Australia (TDA) Media Release – Axing of apprenticeship employer completion payments – 02.08.13
Bill Shorten and his shadow minister for vocational education, Sharon Bird, slashed support for:
- Commencement payments
- Recommencement payments
- Completion payments
- Adult apprentices
- Part-time apprentices
- Certificate II qualifications
- Diploma qualifications
“Labor’s $1.2 billion cuts have made it harder for every business to take on and support an apprentice,” Minister Ryan said.
The Coalition is working hard to reverse the impact of Labor’s cuts by:
- Ensuring no cuts to employer incentives
- Introducing Trade Support Loans, which provide assistance with living and work expenses, have been taken up by 40,000 apprentices.
- Continuing support for apprentices and their employers through the Australian Apprenticeship Incentives Programme, which provides incentives of up to $4,000 to employers who create job opportunities for eligible apprentices.
- Introducing the $908 million Australian Apprenticeship Support Network, which helps match the right person with the right apprenticeship, and provides mentoring and other support to improve completion rates.
In addition, the Turnbull Coalition Government’s Youth Jobs PaTH Programme, announced in the 2016-17 Budget, will help 120,000 young job seekers by getting them ready, giving them a go and getting them a job. This includes assisting young job seekers to get into an apprenticeship.
Under the Coalition, traditional trade apprenticeships in areas of skills need are starting to recover from the damage inflicted by Labor. The additional support and stability of employer incentives introduced under the Coalition Government is starting to yield results.
“In 2015, the number of apprentices starting in construction trades increased by 20 per cent, this includes a 12.3 per cent increase in apprentices starting as bricklayers, carpenters and joiners,” Minister Ryan said.
“In 2015, under the Coalition Government, more people started a plumbing apprenticeship than in any year under Labor.”
Media contact: Gemma Sandlant – 0428 421 384