Cash move to save apprentice jobs

Support will be available to construction firms

Financial support to safeguard the jobs of apprentices in the recession is to be offered by the Scottish government.

Small and medium businesses in certain sectors are to benefit from the scheme over the next five months, announced Education Secretary Fiona Hyslop.

Employers will get £75 a week for eligible apprentices until 31 March 2010, which could constitute between 20% and 57% of their wages.

The scheme is open to construction, engineering and manufacturing firms.

Ms Hyslop said: "The Scottish government fully recognises the challenges that have been faced by Scottish businesses in recent months.

"I also know that many small firms have had to balance the need to keep their heads above water with the desire to continue to develop staff skills for the future."

'Economic turbulence'

The minister added the Safeguard an Apprentice scheme would deliver "practical help" to support businesses and workers through the recession.

She said: "I firmly believe that in order to ensure that our economy continues to be competitive in a global market over the next few years we need to invest now in people who can develop the skills that we will need in the future."

The initiative was welcomed by Federation of Small Businesses' (FSB) Scottish policy convener Andy Willox.

He said: "During the last 18 months, many strong, successful, viable firms have had their backs up against the walls due to circumstances entirely out of their control.

The scheme will pay £75 a week per person until the end of March 2010

"A short period of economic turbulence cannot be allowed to take the life opportunities away from individuals and the long-term success of our businesses and the communities they support.

"The value of apprentices to individual businesses, as demonstrated by FSB research, is enormous - for example filling skills gaps and motivating other members of staff. Additional support for small firms to keep on the staff which are going to be vital for their success and Scotland's future, is very welcome."

But Labour's John Park dismissed it as "far too little far too late".

Mr Park said: "Over 1,100 apprentices have been made redundant since Labour forced the SNP to agree to make sure that every redundant apprentice would get an opportunity to complete their training.

"Unfortunately despite this agreement the cabinet secretary dithered for months and 700 apprentices are still looking for work or have fallen out of the system all together."

The Labour MSP added: "This new scheme would work if it covered every sector and every apprentice but like most SNP announcements it's more spin than substance."