Victoria budget 'a blow to apprenticeships'

May 7 2003 - Victoria's state Budget is reasonably balanced, has some positives for small business, but is a blow to automotive apprenticeships, according to Victorian Automobile Chamber of Commerce (VACC) Executive Director, David Purchase.

"There is too little in the budget to address the alarming shortage of apprentices in the automotive industry," Mr Purchase said. "The abolition of payroll tax exemption for apprentices and its replacement with employer bonuses on completion is not welcome, because employers can end up paying more.

"An additional blow for VACC's Group Apprenticeship Scheme is the Government's announcement the completion bonus of $3000 for apprentices and $1500 for trainees will not be available to group training organisations.

"An additional burden to employers will be the risk of losing apprentices during the four years after having paid payroll tax, then also forfeiting the completion bonus. This will only make employers more nervous about committing to take on apprentices, and exacerbate the problem of skills shortages in our industry.

"The government is reaping major dividends at the expense of a skilled workforce.

"Where is the commitment to fully fund the Automotive Centre of Excellence? This was agreed to and promised to the industry 12 months ago but little has happened. Do we have to stare for yet another year at a near-vacant site?

"Where is the detail in the Government's commitment to road funding and its massive revenue boost ($253 million over four years) through registration fee increases? When does the Government propose to act on vehicle safety? Has the Government turned its back on the recommendations of the Inquiry into Vehicle Roadworthiness, and the commitment to fund a 'booze-bus' style enforcement program?

"On the positive side for small business, VACC welcomes the appointment of the Small Business Commissioner. It is appropriate that $8 million has been allocated to run the office over four years. We look forward to working closely with the Government and Mr Brennan on ensuring a fair-go for small business," Mr Purchase said.

"Also on the positive side, despite drought, bushfires, and the blow-out in public transport costs, the projected budget operating surplus of more than $100 million is welcomed by business. Overall, while much of the State Budget is sensible and appropriate, there are some serious shortcomings," Mr Purchase said.

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