ECITB training levy reprieve

Parliament has given its official approval to the Engineering Construction Industry Training Board's (ECITB) draft statutory levy order for 2005.
The levy has been given the go-ahead by a House of Commons standing committee after its legal status appeared to be threatened last year because of a lack of demonstrable support by
contractors.
In 2004, the standing committee was told that the ECITB had failed to meet one of the conditions needed to impose a statutory levy. It was supported by the industry employer organisations. But those organisations did not represent more than 50% of those liable to pay levy.
The then skills minister, however, used his discretion to give the levy the green light.
This year, skills minister Phil Hope reported that the employer organisations in the sector now represent 52.8% of employers, which were likely to pay 87% of the total levy.
"They fully support the proposals," he said. "The ECITB also consulted individually all companies that do not belong to an employer organisation. There are about 200 of them and only one dissenting reply was received.
"That demonstrates the support and consent within the industry."
The ECITB levy - to be collected in 2006 - is set at 1.5% of total payroll and net spending on subcontract labour. There is an exclusion level set at £275,000. A 0.18% levy on head office payroll is reintroduced, but here the exclusion level is £1m.