Training tough in downturn

PEAK industry figures have cautiously welcomed state and federal government initiatives to soften the impact of the economic downturn on business, including the announcement of cuts to skilled migration.

This week, Immigration Minister Chris Evans announced that skilled migration will be cut to 115,000 places in 2009-10, and construction and manufacturing will be removed from the critical skills list, in response to slowing demand for skilled workers.

The Chamber of Minerals and Energy WA cautioned government about reducing the skills pool by making too radical a cut to skilled migrant numbers, warning industry needed the right skill sets at the right time to ensure demand was met.

"Without experienced staff, projects would be delayed, resulting in a detrimental effect on the Western Australian economy and job prospects," chief executive Reg Howard-Smith said.

WA Training Minister Peter Collier announced last week that recognition of prior learning incentives would give Tafe colleges the flexibility to upskill mature-age workers, many who might be returning from the resources sector.

Mr Collier said government support to assist business in training was important in the light of recent figures showing 918 apprenticeships had been stood down across all sectors.

The worst affected sectors were building and construction, with 229 suspensions, and automotive, with 139.

Motor Trades Association state director Peter Fitzpatrick said initiatives giving older workers flexibility to upskill were a move in the right direction, but that government needed to provide financial incentives for businesses to take up apprentices.

"The difficulty with training is, if business is tough, they may be disinclined to take on apprentices because they don't want to take people on and then have to let them go," Mr Fitzpatrick said.

Alcock Brown-Neaves Group managing director Dale Alcock said government and business should take the economic downturn as an opportunity to train in anticipation of a future increase in demand for skills.

"Any slowdown in business only masks the skills crisis temporarily," Mr Alcock said.

"The current economic situation does apply pressure on businesses to continue to train at high levels." Mr Collier said the department recognised the pressures that businesses faced taking on apprentices.

"The cost on employers is enormous. They get the minimal return in the first few years and they don't get recognised for that," he said.