In-plant Training

HC Deb 15 December 1988 vol 143 cc644-5W

Mr. Bright

To ask the Chancellor of the Duchy of Lancaster if he will make a statement on the future of the in-plant training scheme.

Mr. Newton

The in-plant training scheme, which operates under section 7 of the Industrial Development Act 1982 but is co-funded by the European Social Fund and administered under ESF criteria, is to be closed to new applications with immediate effect. The scheme was designed to help companies meet training costs associated with new investment projects in the assisted areas which met the requirements for regional selective assistance. Because of substantial changes which the ESF has made to its criteria, the scheme is in practice no longer achieving this objective.

Under the revised rules, trainees must be aged under 25 at the start of the training programme, be trained in the use of new technology and receive a minimum of 200 hours actual training. These requirements have proved difficult for applicants to satisfy and the three operating Departments have made no offers of assistance since the revised criteria were introduced in January 1986. As a result, the Government have decided that there is nothing to be gained by continuing with the scheme.

Closure of the scheme will have no effect on the aount of assistance available to projects which meet the criteria for RSA.