Poor pay aggravates skills shortage problem

The current skills shortages have been aggravated by poor rates of pay and the trainee drop-out rate.

Try says the industry is heavily reliant on small companies for trainee work placements. Board figures show that, of 13,700 CITB trainees, some 8,000 can be found in companies with less than 14 employees.

In smaller firms, one in 25 employees is a trainee. In firms employing more than 115 operatives, the ratio is only one in 90.

The annual report suggests that the switch back to direct employment up to the end of December proved more modest than was originally expected. It is nonetheless expected to continue and provide a welcome boost in work placements for trainees.

A continued reduction in Government funding and the ever-increasing costs of training are said to be placing a further great strain on the board's ability to raise skill standards in the industry.

In the year to December 31, 1996, the number of firms registered with the training board fell by eight per cent to 59,837. A priority is to reverse this decline.

Direct financial comparisons are not available because the board has switched its accounting year to end in December instead of March. However, the 1996 figures show that the board marked up a trading surplus of œ4.5 million last year. Total income was approximately œ100 million, including œ56.5 million from levy. Total spending added up to œ95.5 million, with œ86 million spent directly on training.