Apprenticeships and training need Federal funding support

19 March 2001 - The ACTU is called on Federal and State Governments to resolve differences on growth funding for vocational training and the future of the ANTA (Australian National Training Authority) agreement.

"The Federal and State governments should jointly fund the growth in vocational training across Australia. The continued successful introduction of a range of new training opportunities over the last decade will be put at risk if sufficient funds are not made available to cater for the growth in demand for apprenticeships and traineeships," said ACTU Assistant Secretary Bill Mansfield.

According to Bill Mr Mansfield, in New South Wales alone in 1999 the number of apprenticeships and traineeships grew by 50%. These increases are likely to continue but States will not be able to meet demand without federal funding.

"The federal government is a key player in the VET system, it is promoting higher levels of growth and it must accept a greater part of the financial burden which results. The ACTU agrees with the Director-General of Education and Training in NSW Dr. Ken Boston when he said in a recent (5/3/2001) speech:

'The Commonwealth offer of $20 million growth funding in year one, rising by $5 million per annum in years two and three won't make a dent in the rising training demand. In NSW alone, the present state of growth requires $50 million per year. Nationally, based on ANTA projections, Australia could require up to $150 million each year. The Commonwealth is prepared to contribute $20 million rising up to $30 million, to be divided between six states and two territories. Meanwhile, when it comes to recurrent VET funding, states and territories contribute four dollars for every Commonwealth dollar. Of the $3.6 billion in recurrent VET funding that Australia spends, the Commonwealth contributes $746 million. The states have not received any growth funding for the last three years, and have funded additional demand from greater efficiencies. For NSW, this is the equivalent of an extra $91 million of investment without a commensurate Commonwealth contribution.'

"The ACTU is calling on the federal government to increase its support for growth in traineeships and apprenticeships by at least $150 million over the next three years. This issue deserves attention from the highest level of government. The Prime Minister should immediately give Minister David Kemp authority to make a realistic proposal to the States for the Federal funds necessary to help meet future demand for apprenticeships and traineeships," said Mr Mansfield.

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