Reports calling for greater flexibility in use of BCITF monies released

23/3/99
Employment and Training Minister Graham Kierath has released two reports which call for greater flexibility in the use of Building and Construction Industry Training Fund (BCITF) monies.
The reports, by Stanton Partners, also recommended that an administration subsidy for group training schemes be abolished.
Mr Kierath said it was imperative that the most effective subsidy system for apprentice training was in place.
He said the BCITF has been reviewed on three previous occasions, and the second report stated that 'too little emphasis has been placed on the strategic needs of the industry and too much on the specific interests of the organisations represented on the BCITF'.
The Stanton report found that over 85 per cent of the BCITF's budget was spent on apprentices, who comprised only about 3.5 per cent of the industry workforce, and was primarily used as a wage subsidy.
It also said existing funding did not provide the flexibility for a more strategic use of funds to a broader range of skills needed within the industry.
Group training scheme providers all had a common formula to provide funding, except the Housing Industry Association, which had had a higher subsidy because of administration, workers' compensation and other reasons.
The reports recommended the BCITF subsidy to all group training schemes should be on the same basis and the subsidy to group schemes should be reduced to bring them more into line with that provided to individual employers.
Two crucial recommendations were for a reduction in the subsidy to group training schemes by abolishing the administration subsidy and for the BCITF to review its policy on the manner in which information was disseminated to the industry.
Mr Kierath said he would ask the new board, which would be appointed soon, to address the Stanton reports' recommendations.
Media contact: Steve Manchee 9213 6400