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News Release from: Scottish Building Federation | Subject: Threat to essential training funding
Edited by the Buildingtalk Editorial
Team on 25 January 2006
Threat to essential construction
training funding
Construction sector federations must work to counter threat to essential training funding, says industry body Scottish Building.
Crucial funding for construction industry training could be threatened unless the Government agrees to change the way it consults with and recognises sector support, according to industry body Scottish Building The Construction Industry Training Board levy - a levy raised on all but the smallest construction sector firms - is the key element of a grant system which provides some £100 million a year to support training programmes across the industry
This article was originally published on Buildingtalk on 21 Aug 2008 at 8.00am (UK)
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However, under the statute which enables the levy, it can only be raised if there is majority industry support for it.
With UK construction federation membership now hovering at just over 50 per cent of all companies, Alyson Morrow, head of Human Resources at Scottish Building, warned that new ways must be found to recognise the widespread industry support for the levy.
"There is no question as to the importance of this programme, nor to the high level of support it has across the industry," she said.
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"However, there is a real risk that the technical definition of industry support it uses may see the scheme becoming unworkable in it's current format.
She said that while it was important the Government amended the legislation to allow the review to recognise widespread industry support, it was also important that the various industry bodies worked harder to promote the importance of membership of their organizations, with emphasis on the wider implications to the industry of a robust and effective trade federation membership.
Federations need to portray the contemporary, fast moving and relevant service and support they offer and dispel once and for all the myth that they are little more than old boys clubs.
"Federations have long represented the construction industry and they remain the best mechanism for consulting on the CITB levy," she said.
"What is important, however, is that all the various federations raise their games to protect what we have in this industry - this is a matter for all construction companies to consider, not just federated ones.
"We need a bit less of the 'old boys club' approach and much more of contemporary leadership and guidance through which trade organisations can add real value to construction employers in all areas of their operations," she said.
"SB recognised this a long time ago and is constantly striving to add value to all our members companies." She said that both Scottish Building and the Scottish Building Apprenticeship and Training Council (SBATC) were totally committed to maintaining the CITB levy arrangement and were working together to demonstrate the importance and effectiveness of the current arrangements.
"As an industry we are facing an ongoing skills shortages," she said.
"We need to 'grow' more competent workers - not just apprentices but in other areas as well.
The CITB levy helps fund training for all construction company employees and workers, whether they are on site or working in an office environment.
"The levy also facilitates supervisory development as well as training in the area of onsite assessment and new entrant training, and these are very much required by this industry.
The question must be asked: without the levy, what could we put in place to replace its vital revenue raising powers?" The levy is paid by construction sector firms with annual wage bills of more than £64,000, and the money raised is paid out to firms of any size which are engaged in staff training programmes.
In 2004, £97 million was distributed in training grants, representing a payout of £1.79 for every £1 paid in levy.
Alyson Morrow said this payout was an "excellent return" by any standard, and was an important mechanism for rewarding companies which made a commitment to staff training.
She said the unique nature and requirements of the construction industry made the levy essential.
"This sector has an unusually itinerant workforce, and that can create particular difficulties for both employers and employees when it comes to providing training.
The funding which the levy provides is an important means of developing long-term commitments between employers and workers without which many training programmes would never get off the ground." She said the current system, which allowed small companies to benefit from the grants without having to pay the levy, was fair, as smaller companies tended to train more than their share of apprentices, who then go on to work for larger firms across the sector.
"The levy evens out the training burden carried by smaller companies and recognises that large firms benefit greatly from these programmes even if they themselves do not participate in training schemes." In addition, the CITB funding allows the maintenance of a network of training advisors, managers and support staff who remove the burden of co-coordinating training from employers.
"Without this support network even the most committed employer would have to seriously look at whether they could support training programmes," Alyson Morrow said.
"In terms of time and resources the industry would not be able to replicate this support." Alyson Morrow is Head of Human Resources, Scottish Building.
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