Friday 12th March 2010 8.13am
Post your Events North East employers targeted for new apprentices’ initiative
A new company that could create thousands of new jobs by making it easier for North East companies to employ apprentices was launched today, with top-level Government backing.
The North East Apprenticeship Company (NEAC) was officially welcomed by Government Minister for 14‐19 Reform and Apprenticeships, Iain Wright MP at an event in Gateshead at the start of Apprenticeship Week (Feb 1- 5).
The Minister is backing the organisation, created by Gateshead Council and Gateshead College to reduce youth unemployment, tackle the region’s skills gap and create more than 1,000 new apprentice jobs in the next two years, particularly among small and medium enterprises (SMEs).
Although based in Gateshead, the NEAC will cover the whole of the region, from Teesside to the Scottish border – working with local companies and local training and education providers to provide opportunities for businesses and young people.
The NEAC has been created to help increase the number of young people taking up apprenticeships in the region – over the last three years, numbers have fallen at an increasing rate with this year’s figures predicted to mark a low point.
Many businesses see employing their own apprentices as too high a risk in the current climate. The NEAC will take away those risks.
The company will employ the apprentices and contract them out to host employers. The company will handle recruitment, assessment and training as well as organising payroll, national insurance and tax.
It will work alongside employers, reviewing apprentices’ performance to make sure they are meeting employers’ requirements and ensuring that both are benefiting from the relationship.
This will be a welcome boost to hard pressed employers keen to grow their business, freeing up their time to concentrate on running their companies without getting tied down with paperwork.
It also provides greater security for the apprentice as they are employed by the Company and are able to move around employers to complete their Apprenticeship.
Iain Wright, Minister for 14-19 Reform and Apprenticeships said: "Now more than ever it is important that we give young people the real help they need to get and keep jobs.
“That's why the government is backing the North East Apprenticeship Company who will help some of the region's young people get the practical training they need to get on.
"It is vital that we continue to invest in people and their skills, helping them to find pathways to better and well paid jobs with a real future. Apprenticeships are designed by employers for employers, so they are tailored to the needs of the workforce.
“Apprenticeships are the key to developing the skills of the workforce to enable employers to respond in the upturn."
Leader of Gateshead Council, Mick Henry said: “This is a hugely important opportunity for businesses and a big step to helping young people start out on successful careers, not just in Gateshead but right across the North East and I’m immensely proud that Gateshead Council is leading the way on this.
“With the current economic climate, it’s never been more important to do all we can to ensure that our young people are given all the help possible to get them into work and training opportunities.
“For companies throughout the region too, this gives a new route to grasp the exciting opportunities open to them by taking on young and enthusiastic local people who are gaining just the skills they need to help their business - and the North East - be at the forefront of the economic recovery.”
Kim Davies, NEAC project director said: “We have consulted with employers to find out what they want now and in the future from apprentices.
“By removing many of the barriers that have traditionally discouraged employers from hiring in the past we will make it easier, quicker and more cost effective for them to tap into a new resource of talented, enthusiastic and willing to learn young people.
“Our apprentices will benefit too from organised training programmes while gaining practical skills which will be of relevance and value to employers requiring well trained workforces to help them take advantage of the economic upturn.”
Gateshead Council and Gateshead College have joined to form the NEAC. Both have invested £25,000 in the scheme while the National Apprenticeship Service will provide over half a million pounds to run the company for the next three years.
National Apprenticeship Week is being organised by the National Apprenticeship Service (NAS) and celebrates the talents and skills of apprentices.
John Wayman, regional director, NAS, said: “NAS is pleased to support this new initiative which we believe can make a real difference to the businesses and people in the North East.”
Widespread research has revealed the region faces a ticking skills time bomb as some companies have failed to invest enough in recruiting and developing younger people and many have an ageing workforce which will struggle to meet the challenges of an economy emerging from recession.
In January 2009 the Prime Minister announced a £140 million package for 35,000 additional Apprenticeship places over 2009/10 to help strengthen the country's competitiveness and extend opportunities to people facing redundancy.
The initiative is being backed by employers, regional business bodies like the North East Chamber of Commerce and the Federation of Small Business and the TUC.
Chief Executive of the North East Chamber of Commerce, James Ramsbotham, added: “All employers require skilled people. The employment and training of apprentices is a vital investment for the future.
“NECC strongly encourages all businesses and the public sector to increase their take-up of apprentices. For many, the NEAC will offer an ideal way in which to make this simpler and more effective”.
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