Offshore firms veto training levy move

Offshore contractors have vetoed any increase in the engineering construction sector's statutory training levy.

Contractors said they cannot bear any further additional costs following a recent ruling that work on North Sea oil and gas platforms is covered by the Working Time Regulations. The decision means offshore firms are liable to pay the same legal minimum holiday money as on-shore contractors.

Terry Lazenby, chairman of the Engineering Construction Industry Training Board, had raised the prospect of doubling the current levy. He said this might be one way of meeting an estimated shortfall of 17,000 skilled workers in engineering construction by the year 2014.

But the training board is now proposing a freeze on levy rates - holding the on-site levy at 1.5% of payroll and the off-site levy at 0.18%.

Next year's levy is due to be considered by the main contractors of the Engineering Construction Industry Association early in September.