Central Coast businesses are breathing a collective sigh of relief following announcements this week of the extension of several Federal Government initiatives designed to keep businesses operating as the coronavirus pandemic continues.
For OpenShutters of Berkeley Vale, news of the $1.5B expansion of the Supporting Apprentices and Trainees wage subsidy to keep apprentices employed was especially welcome.
Eligibility for the subsidy will be expanded to include medium-sized businesses with 199 employees or fewer who had an apprentice in place on July 1 and it will be extended to March 2021.
It will help keep apprentices in work by subsidising their wages and builds on an initial $1.3B package announced in March.
The initiative covers 50 per cent of the wages paid to apprentices and trainees, up to $7,000 per quarter.
OpenShutters Managing Director, Gail Cottrill, said keeping the company’s two apprentices employed had been a major concern during the pandemic.
“We are very big on training and the wage subsidy has enabled us to keep both our apprentices on,” Cottrill said.
“Traditionally they would be the first to go as they are the least diverse in what they can achieve but it is critical to keep their training going.
“It is extremely important to keep supporting them and not demoralise them by not allowing them to finish what they started.
“This scheme has absolutely made the difference in being able to keep them on.
“We had been debating how we were going to manage keeping them on so this (extension) is absolutely a huge relief.”
Cottrill said the company, which specialises in timber shutters, louvres and screens which are classed as luxury items, had seen a huge decline in business.
“We have been trying to make the best of a bad situation but it’s not easy to switch to making something else which could be better utilised at the moment,” she said.
“We have tried a few different things, but nothing which can really replace shutters at this stage.
“We have been able to diversify the apprentices’ duties a little, which has been beneficial to them.”
Cottrill said while the business had been forced to reduce some staff members’ hours for a short time, it had not had to make anyone redundant.
She credited JobKepper with being another lifeline for the business.
In addition to the $1.5B investment in keeping apprentices employed, the Government has also pledged $500M to be matched by states and territories to help train school leavers and job seekers.
The joint state-federal $1B JobTrainer fund will provide for around 340,700 additional training places nationwide giving people access to pre-apprenticeships, short courses and full qualifications to develop new skills in growth sectors.
Courses will be free or low cost in areas of identified need.
Member for Robertson, Lucy Wicks, said the initiatives would provide a much-needed boost to jobseekers and school leavers across the Central Coast, ensuring locals are trained in the skills needed by our business community.
“Backing training, apprentices, and jobs is all part of the Government’s plan to restore our economy after the coronavirus pandemic and keep Australians in our local area in work,” Wicks said.
While Business NSW Central Coast commended the Government for increasing funding for existing apprentices, it says more still needs to be done to encourage employers to take on new apprentices.
Regional Director, Paula Martin, said an ongoing survey conducted by business NSW indicated that apprenticeship commencements on the Coast would drop by 36% next year.
“There were 7,019 (sign-ups) in 2019 (for 2020) and our forecast would be 4,492 commencements in 2020 (for a 2021 start),” Martin said.
“This translates to a drop of apprenticeships on the Central Coast of 2527; that’s an extra two and a half thousand kids facing unemployment.
“Businesses will be heartened by the ongoing support for apprentices beyond September 30, which was looming large as an economic cliff.
“On the down side, it is disappointing that there has been no announced increase in support for those wanting to commence an apprenticeship.
“However, we remain hopeful that there will be additional announcements down the track to support employers who want to take on new starters.
“The nation is still at risk of significant skills shortages in 3-4 years’ time without new starters coming on board.
“As part of the JobTrainer package, the National Skills Commission will need to ensure that the short courses being offered support people into employment or at least dramatically increase their chances of employment.
“We look forward to working with Governments of all levels to identify the types of short courses needed.”
Terry Collins