December 14, 2011

New study warns of the danger to industry training funding cuts

The country could lose up to $15 billion dollars annually if the Government withdraws its investment in industry training a new study suggests.

The study, by economic research agency Business and Economic Research Limited (BERL), shows that public investment in industry training pays off for the whole country.

“The PSA welcomes this study. We’ve been highlighting the economic and social gains that come from smart public investment for a long time,” says PSA National Secretary Richard Wagstaff.

“The National-led Government slashed employment training budgets in its first term. Those cuts are bad for business and bad for workers, especially younger people and do nothing to address the country’s high rates of youth unemployment.

BERL’s study says a loss of skilled labour would squeeze the export sector’s capacity and reduce its competitiveness as industries competed for a smaller pool of talent.

“There are thousands of PSA members that want access to training and career development which currently doesn’t exist,” says Richard Wagstaff.

“This report shows that investing in employment training pays future dividends. It also supports high standards of service delivery.

“Cuts to employment training, just like public spending cuts in other areas, jeopardise a prosperous future both for workers and the public at large.

“Training is a critical element for a high wage, high skilled and high productivity economy,” says Richard Wagstaff.

ENDS

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