Training and workforce development minister Peter Collier has halted proposals to reduce subsidies paid to employers of electrical apprentices.
The Construction Training Fund, which gains revenue through a 0.2 per cent levy on construction projects, announced in April plans to cut the subsidies from the start of July.
Companies are subsidised $9000 for every new electrical apprentice and an additional $3000 for an apprentice over the age of 21, which is the same as other trade apprenticeships.
But the training fund wanted to reduce that from next month so employers were only given $6000 for every new electrical apprentice and removing altogether bonus payments for adult apprentices.
It submitted an operational plan for the upcoming year with the subsidy reductions to the minister for approval. However, the minister has told the fund he's not comfortable with the cuts and has requested the plan be amended.
The proposal was lambasted by industry, including the National Electrical and Communications Association, which said it would reduce the number of apprentices, increase the skills shortage, and drive construction costs up.
The association has now said ongoing discussions with the minister have resulted in him reversing the training board’s decision.
“The NECA Board and our 750 members were quietly confident the minister would reach this outcome, given the vast number of young and mature age Western Australians the electrical industry trains every year,” WA general manager Ray Harris said.
Mr Harris said the subsidy cut would have cost the industry $5 million for new apprentices in 2012/13.
“This cost would have been passed on to users of electrical services to the minister’s decision is also a big win for consumers.”
The construction training fund said the motivation for cutting subsidies was because it paid out a disproportionate amount to the electrical industry.
