Cash boost for apprenticeships
One of the country’s superemployers of young mechanical engineers says it is delighted with a new Government wage subsidy for employers who take on apprentices.
The Government has announced a grant of up to $16,000 to support employers with the costs of taking on and training a new or existing apprentice for their first two years.
The grant will inject $380 million into the trades sector, as the Government pumps $1.6 billion into vocational training and offers free training in selected trades.
Whangarei’s Culham Engineering hires about 40 apprentices, and its co-owner and managing director, Rob Kirwan, said the extra money would make a big difference.
‘‘There is a cost to the business, and this is a big help. I’m really grateful the Government has come to the party for this, not just for our business but the kids we employ.’’
However, firms still needed work for apprentices and the good tradesmen who could train them, he said.
Kirwan said training had always been important to his firm. An estimated 600 to 700 apprentices had been trained there over the years, and apprentices were never the first to go when tough times hit, as sometimes happened.
But Kirwan had been personally frustrated with the lack of skills in the industry and the need to go offshore for workers.
‘‘The work doesn’t go away. People should be viewed on how they employ people, not just the overall price of the job. They should be asking, how many apprentices do you hire?’’
Fiona Kingsford, chief executive of industry training organisation Competenz, said the subsidy would provide relief, particularly for school leavers facing an uncertain job market.
‘‘There will be a swathe of school leavers entering the job market at the end of this year, and they have just been given a real boost,’’ she said.
The subsidy will apply from August. It means employers can apply for funding of up to $12,000 an apprentice in their first year, and up to $6000 in their second. It will be scaled back for shorter periods.