Employer-funded training schemes from the ground up

Industries have different options available to them to stimulate their training needs. Among these options are training levy schemes.

In a forthcoming report, John Stanwick examines the impact of training levy schemes in the building and construction industry in Australia. The success or otherwise of this type of approach to funding training is of obvious interest to other industries.

"The building and construction industry is unique in that it is the only industry in Australia that uses training levy schemes to stimulate training", Stanwick says.

"The way the levy schemes are used in this industry is also distinctive in that the levy is applied on construction projects and is collected by local governments. This makes it essentially a 'user pays' levy", he said. The scheme currently exists in five states and territories.

Training funded by the schemes is usually aimed at increasing the number of apprenticeships in the industry but they also provide for training for existing workers. However, the emphasis varies by state.

"There was no real evidence based on available data that the schemes have had an impact on apprenticeship commencements. However, it is interesting to observe that the states with schemes have better completion rates than the others", Stanwick says.

The report also found that much existing worker training funded through the levy is on mandated occupational health and safety training.

"We also need to be aware of some of the realities of these types of arrangements", says Stanwick. "For instance, conflicts of interest between the various stakeholder groups in an industry can affect the efficacy of these types of schemes."

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