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Training boards to set levy exemption standards
Page 28
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Govt Bill's 1974 date to streamline system and impose upper levy of one per cent of payroll
from our Parliamentary correspondent
• Sweeping reforms to streamline the industrial training system were proposed last week in the Government's Employment and Training Bill.
The Bill provides for the establishment of a Manpower Services Commission and two agencies to deal with employment services and training services.
But it will be the training boards, freed of the requirement to impose training levies, which will continue to be the direct link with the industries they serve.
The 10-man Manpower Services Commission, responsible to the Secretary of State, will have three members nominated by the TUC, three by the CBI and the rest representing local authorities and education interests.
Its main duty will be to make arrangements for assisting people to select, train for, obtain and retain employment, and for assisting employers to obtain suitable employees. The Employment Service Agency and the Training Service Agency will be the "executive arm" of the Commission and will co-ordinate the work of the various training boards.
Under the new arrangement the levy/grant system will be replaced by a levy/grant exemption system.
Each training board will exempt from levy any firm which applies for exemption and which in the board's view trains its workers adequately. It will be for the boards to define, in consultation with their industries, what is regarded as "adequate" training.
Release of workers Boards will be able to make release of workers for further education associated with training a requirement for exemption in appropriate cases.
"It will therefore be open to boards to set exemption standards which, together with the use of levy/grant for firms which are not exempt, aim to ensure that existing standards of training are maintained and that there is• continuing stimulus to improvement," the Government claims.
Boards will no longer have a duty to raise a levy but will continue to have power to do so. The Commission will be able to direct a board to submit levy proposals.
The levy will be subject to a normal upper limit of one per cent of payroll. Although the Secretary of State will have power to raise this limit it is not the Government's intention that it should exceed 1 per cent other than in exceptional circumstances.
Firms who provide adequate training facilities will thus be freed of the complications of the levy/grant system while still availing themselves of the board's services.
There will be an appeals procedure for firms which feel they have been wrongly denied exemption from levy.
All the administrative expenses of the training boards will be paid by the Manpower Services Commission.
The Commission will also provide out of its grant-in-aid funds to enable boards to encourage key training activities in their industries.
It is proposed that when the new arrangements are in full operation up to £35m a year will be available to the Commission for these purposes.
The new arrangements will begin on August 1 1974 and the training boards activities up to July 31 1974 will continue to be financed under the existing levy system.
Since boards normally collect levies in arrears, however, some collection of levy will continue into 1975.
The training boards will have both the authority and the responsibility to secure adequate training in their industries and it will be for each board to indentify needs and priorities in its own industry.