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FUND MANAGERS

14th April 2005, Page 63
14th April 2005
Page 63
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Page 63, 14th April 2005 — FUND MANAGERS
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Which of the following most accurately describes the problem?

Government training funds are available, but operators must be

committed if they are to secure the cash. Tim Maughan reports.

Training people to work in the transport industry can be an expensive affair (assuming you can secure such candidates in the first place). But financial assistance is available from the government to help create new Class 1 holders, fitters, transport managers, and other specialists.

Its important to remember, though, that the government has not set aside specific amounts of cash for road transport. Operators can benefit from financial assistance, but there is no set template, no standardised amount of money that a haulier can apply for and automatically receive.

Money is granted on an individual basis. There is a lot of government training money swishing about, but without a defined line of communication, the operator can find it tough to benefit.

Skills for Logistics is one of 25 Sector Skills Councils set up to assist a given industry, ranging from oil and gas to the textiles sector. "Our role is to work with employers in the road transport industry, to understand their skill development needs," says John Bowman, director of policy at Skills for Logistics. He stresses that the organisation is not a training provider. Its role is to help channel money to the road transport industry.

It would be wonderful if transport operators could ring a single number, ask for a few thousand pounds to train personnel and, days later, receive a cheque. But it does not work like this, says Bowman, because "training funding is complex and it is devolved".

There are two major sources of funding. Firstly, through Jobcentre Plus (JCP). In this case an operator trains an unemployed person and Jobcentre Plus subsidises the tuition. On paper, this is a splendid idea, but we wonder iii CP really understand the industry's needs.

Mutual understanding

Thankfully, the long term unemployed are not forced to undertake Class 1 training. HGV driving is a responsible job and candidates must be committed if they are to succeed.All unemployed people who undergo Class 1 training do so on a voluntary basis.

Secondly, the Learning Skills Council provides money for apprenticeships, which result in recognised national qualifications. National Vocational Qualification (NVQ) Level 2, says Bowman, trains people to become truck drivers and warehouse operatives.The more advanced Level 3 trains students to take on supervisory roles, such as that of a traffic office manager.

Bowman emphasises that NVQs adopt an holistic approach. Students are not merely trained to deal with a given task; they are armed with a variety of skills and shown how to become well-rounded employees.

"The premise of the apprenticeship is about learning and being tested in the workplace," he says. With these apprenticeships, the LSC pays around half the costs. with the operator meeting the rest.

Regional Development Agencies can also help.They were set up by the government to improve regional economies and have discretionary budgets for skills development.

In principle, Northampton-based Wrefords Transport has been offered £120,000, to be awarded over a two-year period, to train students to become HGV drivers. Business manager Ian Grant says people have to be taught a range of skills.They must be knowledgeable about Working Time rules, tachographs, health and safety law and. in some cases. Hazchem regulations.

"We would hope to train about 30 people, but they would be under no obligation to stay with the company,because it will cost us no money to train them," says Grant. However, he recognises that people are likely to stay with a firm if it treats its staff well.

It takes between three and four weeks to train a raw student to qualify as a Class 1 holder. says Grant, but WrefordsTransport does not intend to take on random citizens. "We will be very, very fussy;we will not just take any person."

The company aims to train drivers, then invoice the East Midlands Development Agency for the costs incurred.

It is encouraging that training money is available, says Grant.The problem is, it can be challenging to pinpoint the cash sources. Wrefords Transport approached Northamptonshire Chamber of Commerce, which in turn sought out the money.

It is important to bear in mind that operators cannot apply for cash and receive a juicy lump sum up front. If money was this easily gained, the system would be open to obvious abuses.Tuition is carried out and money then reimbursed.

Government money filters through a variety of channels.And each one has its own working methods. Elizabeth Conway, partnerships manager at Northampton Chamber of Commerce, says Wrefords" training grant, although agreed in principle, is subject to budgetary controls. Individual development agencies have their own budgets and handle their own fund allocation.

Full commitment

Tracking down training grants is tough.chiefly because there is no centralised facility which simplifies the cash-giving process.

Chris Harwood is operations manager of Northampton firm LGV Trainers, a driver agency which trains truck drivers. He fields two rigids and two artics, and employs four instructors. In a typical month, 15 students are trained to drive trucks.

Last year Doctor Martens (DM), the shoe manufacturer, left town for the Far East. DM announced large-scale redundancies and the local Job Centre contacted Harwood to see if he could train some of the workforce.

Before training begins, Harwood has to be convinced that candidates are committed. Three-quarters of the ex-DM personnel were selected to undergo tuition and LGV Trainers' costs were reimbursed by Jobcentre Plus.

Payment was prompt. "We were happy to have these people on our account. Once we got into the process of getting the first people through, it went very well," says Harwood.

He employs Class 1 holders, who in turn drive HGVs for operators. Occasionally, successful drivers gain permanent employment with hauliers, via The Judith Hearn Agency the parent company of LGV Trainers.

The Doctor Martens case showed that training money does exist. Harwood argues, though, that not enough effort is made to publicise the funds. "It's vague. People do not know about government cash."

He also believes that funding is too holistic: money is more likely to be granted when a student takes a variety of courses. With road transport,says Harwood, the priority should be on securing an HGVlicence."The government can get a bit lost with CPCs and so on. They want all the bells and whistles, when they should just train for the Class 1 licence."

Recent years have seen the rise of unscrupulous outfits that source cash then take a hefty cut from the claimant. Harwood warns that such shady concerns are penetrating the road transport sector.

-We were approached by a company four or five months ago.They said that £140,000 of funding was available for us to train unemployed people. It seemed quite straightforward; the company would write the bid, and put it in for us. But they wanted a £40,000 cut. That £40,000 should be going to these guys' (students') training.There is no need for the companies to be there," he says. •


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