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A Strong Apprenticeship System Key To Economic Growth
TORONTO, Aug. 5 /CNW/ - The McGuinty Government is supporting student
success by launching three innovative apprenticeship programs that will help
more young people succeed in today's knowledge-based economy, Mary Anne
Chambers, Minister of Training, Colleges and Universities, announced today.
"Improving access to apprenticeship training strengthens our ability to
respond to increasing demand for skilled workers and keeps our economy strong
and competitive," said Chambers.
"An Apprenticeship Training Tax Credit would be a cornerstone of our plan
to increase both the quality and quantity of skilled labour, including trades
people, in this province," said Greg Sorbara, Minister of Finance. "Our
investment in apprenticeship will address the expected wave of retirements in
skilled trades, and help build a strong and prosperous economy."
To strengthen the apprenticeship system, the Ontario government is:
- Creating 1,500 scholarships of $1,000 each to high school students who
had quit school, then returned to complete high school and enter
apprenticeships, and a $2,000 bonus for employers to encourage them to
hire these young people into skilled trades; and
- Investing up to $6 million in 2004-05 to create new Co-op Diploma
Apprenticeship Programs that will enable young people to train as
apprentices in a specific trade while obtaining an associated college
diploma; and
- Developing an Apprenticeship Training Tax Credit that, if passed by
the legislature, would provide refundable tax credits for employers on
a portion of the salaries and wages paid to eligible apprentices.
The programs announced today are part of the Ontario government's
four-year strategy to transform the skills training and apprenticeship system
and complement the annual investment of $11.7 million, by 2006-07, which will
expand the number of people registered in apprenticeships to 26,000 by the
following year.
According to the Ontario Chamber of Commerce's 2003 Skilled Trades
Survey, within the next 15 years, 52 per cent of skilled trades people are
expected to retire. As well, 41 per cent of Ontario's skilled trades
anticipate that they will face skills shortages in their industry within five
years.
"We can compete with the world for the best jobs, good wages and the
highest quality of life by building a most highly skilled workforce," Chambers
said.
Backgrounder
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APPRENTICESHIP TRAINING TAX CREDIT
The proposed Apprenticeship Training Tax Credit would encourage employers
to hire and train apprentices in certain skilled trades.
First announced in the 2004 Ontario Budget, the proposed credit would
refund 25 per cent of salaries and wages paid to an eligible apprentice in a
qualifying skilled trade. The tax credit would increase to 30 per cent for
small businesses - that is, those with payrolls not exceeding $400,000.
Employers would qualify for up to $5,000 per year per eligible
apprentice. The maximum credit would be $15,000 over the first 36 months of an
apprenticeship.
Businesses would be eligible for the refundable tax credit on wages and
salaries paid after May 18, 2004 to eligible apprentices during the first 36
months of the apprenticeship. Eligible apprentices would be in a qualifying
skilled trade and hired before January 1, 2008.
Examples of qualifying skilled trades would include:
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CONSTRUCTION INDUSTRIAL MOTIVE POWER SERVICE
TRADES TRADES TRADES TRADES
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Plumber General machinist Automotive service Electronic service
technician technician
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Sheet metal Tool and die Fuel and electrical Micro-electronics
worker maker systems technician manufacturer
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Electrician Machine tool Auto body and Network cabling
builder and collision damage specialist
integrator repairer
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Refrigeration Industrial Truck and coach Information
and air electrician technician technology
conditioning support analyst
mechanic
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Brick and Industrial Motive power
stone mason mechanic machinist
(millwright)
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General Precision metal Heavy duty equipment
carpenter fabricator technician
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Ironworker Cabinetmaker Marine engine
mechanic
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The full list of qualifying trades is available in tax bulletin number
04-2 on the Ministry of Finance web site.
The government will consult with stakeholders to review the effectiveness
of the tax credit prior to December 31, 2007.
The provincial budget announced a four-year plan to transform the
apprenticeship training system. This plan contains new funding of
$11.7 million annually by 2006-07 to expand to 26,000 the number of young
people registering in apprenticeships. In addition to the tax credit, other
elements of the plan include:
- 1,500 scholarships of $1,000 each to high school students who quit
school then returned to complete high school and enter apprenticeships
and a $2,000 bonus for employers to encourage them to hire these young
people into skilled trades; and
- New academic upgrading and training options will help youth get the
skills necessary for a better career path through apprenticeship
training, benefiting 6,000 young people annually.
Backgrounder
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NEW PROGRAM INTEGRATES COLLEGE DIPLOMA AND APPRENTICESHIP TRAINING
The new Co-op Diploma Apprenticeship Program provides a direct path for
young people interested in pursuing apprenticeship training and obtaining a
college diploma. This year the program will help 194 young people train
towards careers in skilled trades.
Students may apply now for programs in the following trades:
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Trade College
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Cook Fanshawe, Sir Sanford Fleming,
Niagara and St. Lawrence
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General machinist Conestoga, St. Clair
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Machine tool builder and integrator Conestoga
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Mould maker St. Clair
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Tool maker Conestoga
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Tool and die maker Conestoga
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The program creates a new pathway to obtain apprenticeship certification
and a college diploma. It also creates a smoother transition between
apprenticeship training and college certificate, diploma and other
postsecondary credential programs.
In addition to trades training, students in the Co-op Diploma
Apprenticeship Program also receive instruction in entrepreneurship. Many
apprentices go on to set up their own business once they become certified
skilled workers.
The Ontario government is planning to extend the program to provide
access to a greater range of trades programs.
Disponible en français
www.edu.gov.on.ca
>>
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For further information: Contacts : Rob Thompson, Minister's Office, (416) 326-1609; Wilma Davis, Communications Branch, (416) 325-6730, Public Inquiries: (416) 325-2929 or 1-800-387-5514, TTY: 1-800-263-2892; Boni Fox Gray, Ministry of Finance, (416) 212-2155
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