Australia’s leading automotive trades body has warned that ceasing or underfunding the apprenticeship incentives program will imperil an already difficult skills pipeline for the repair industry.
The Motor Trades Association of Australia this week made a submission to the Australian Government’s Strategic Review of the Australian Apprenticeship Incentive Program and raised the alarm on the possibility of it not being extended beyond its scheduled end date in June 2024.
The repair sector and wider automotive industry will be watching the upcoming federal budget with acute interest to see what measures are in place to relief the acute and extended skills shortage.
The MTAA argues a strong pipeline of apprentices is more important than ever, with the sector facing a deficit of over 38,000 automotive technicians and 12 month extension was the minimum needed to the work on a new apprenticeship incentive scheme.
It said the existing program has been highly successful in driving apprentices and trainees into the automotive industry and encouraging business to invest and employ more apprentices.
Changing or removing the existing scheme will de-incentivise small businesses, that make up 95 per cent of the automotive industry, to invest and employ more apprentices.
MTAA CEO, Matt Hobbs wants an an incentive system that provides assurance and stability to businesses and encourages them to reengage in the apprenticeship and traineeship system and the incentive scheme was critical in helping offset additional costs.
“Our members want to attract, invest in, and foster new talent, and ultimately prepare their business for the biggest transformation facing their sector – the advent of EVs – yet these changes are creating uncertainty when the industry needs to focus on innovation.
“Just like it did with the New Vehicle Efficiency Standard (NVES), we ask the Government to work with us on finding the best outcome for the sector and arrive at a solution that motivates businesses to employ more, not less, apprentices.
IN a statement the MTAA also highlighted that its membership has a proud history in supporting and developing apprenticeship and traineeship programs over many years.
“This includes 1000’s of automotive small businesses who employ apprentices across Australia, creating a pipeline of talent to meet the future needs of the Australian automotive industry”