Government unveils tough new training regime

The Federal and state governments have agreed on plan that will ensure any person between the ages of 20 and 25 who loses their job will be guaranteed a training place.

But there is a catch for young people – they will be stripped of welfare payments if they are not “earning or learning”.

The new “compact” between the Federal and state governments will provide a timely boost to youth training as unemployment is predicted to spike to well above 8%, or one million people.

The Federal Government will invest $100 million in a special fund to help states reach the goal of having 90% of school students obtain a year 12 or equivalent qualification by 2015. The current rate is around 74%.

“We cannot allow, and we will not allow, as governments, the skills and training needed by a growing modern economy to skip a generation because of the global recession,” Prime Minister Kevin Rudd said after joining state and territory leaders at yesterday’s meeting of the Council of Australian Governments.

The Australian Industry Group was one of many business organisations to applaud the move.

“It is critical that we avoid the mistakes of past downturns where training was seriously neglected, and these measures provide important support for that objective,” AIG chief executive Heather Ridout said. “If we do not maintain our current level of all forms of training, especially apprenticeships, skill shortages will re-emerge with a vengeance as soon as economic conditions improve.”

But some training groups, including TAFE Directors Australia, has warned that there made need to be changes to the way training bodies are funded to cope with the influx of students.