Lord Brougham of Vauxasked Her Majesty's Government:
What use they propose to make of the powers in the Merchant Shipping Bill to give financial assistance in respect of merchant navy training?
§ The Parliamentary Under-Secretary of State, Department of Transport (Lord Brabazon of Tara)My right honourable friend the Secretary of State for Transport is placing in the Library of both houses a document entitledA Scheme for Department of Transport Assistance for Merchant Navy Officer Training, which outlines the training scheme which the Government propose to introduce under powers contained in the Merchant Shipping Bill.
In developing this scheme the Government have had two objectives. The first is to increase the number of officers being trained for service in the merchant navy, which declined significantly during the 1980s. The second is to build on and develop existing training arrangements and on the use already being made by the industry of government financial assistance, notably the funding available under the Manpower Services Commission's Youth Training Scheme.
The scheme will arrange for suitable men and women, whether specially recruited officer cadets or in-service rating trainees, to follow a programme of training which leads to a Department of Transport First Certificate of Competency as a deck officer or marine engineer officer, in accordance with the recommendations of the Merchant Navy Training Board and as approved by the Department of Transport.
Each officer trainee in respect of whom Department of Transport assistance is payable will be required to be employed or sponsored by a 558WA managing agent who will be responsible for the administration of the trainee's full programme of vocational education and training from recruitment to completion. The managing agent might be a traditional shipping company, a suitable training company or group, or a nautical college. The overall scheme will be managed on my department's behalf by a co-ordinating agent. I am pleased that the General Council of British Shipping, which has a wealth of experience and contacts in this field, has agreed to take on the role of co-ordinating agent for the scheme. Recruitment to the scheme will be through the managing agents, under the guidance of the co-ordinating agent.
At present, where officer trainees are following a scheme of training approved by the Manpower Services Commission and are eligible on age grounds, the managing agent receives assistance in respect of such trainees at the standard rates (currently £37 per week) for the YTS scheme. Those arrangements will continue, and managing agents will be expected to take the maximum advantage of assistance available both under the YTS and from LEA grants. The Department of Transport will give financial assistance in respect of trainees who are ineligible for YTS assistance on age grounds. This assistance will be given at the rate of £50 per trainee per week. Thus an officer trainee who began a 4-year course of training at age 16 would, if following an approved course, be eligible for assistance for the first two years under YTS, and for the second two years under the Department of Transport's scheme. For a trainee embarking on a course at age 18, or later, assistance would be claimed under the Department of Transport's scheme for the entire period. In either case, assistance under the Department of Transport's scheme would be abated by the amount of any LEA grant payable.
The Government plan to give assistance under the Department of Transport's scheme not only in respect of new trainees, but also in respect of trainees who are already undergoing an approved course of training and who are ineligible for YTS grants on age grounds. We shall be announcing in due course the date from which payments will be made in respect both of new and of existing trainees. The Government's aim is, with the help of the coordinating agent and of the managing agents, to have the scheme in operation to give financial assistance in respect of the new intake of officer trainees this autumn.
The Government also recognise the importance of junior officers studying for higher statutory qualifications. The Department of Transport therefore plans to make payments, again at the rate of £50 per head per week, towards the costs of officers studying for such qualifications, for the number of weeks of study leave which are prescribed by current National Maritime Board agreements. These payments would be made either to the individuals concerned, or to companies employing them who provide paid study leave, as appropriate. These payments will also be administered by the co-ordinating agent.
I believe that these arrangements will be widely welcomed in the industry. As has already been announced, a budget of £2.5 million has been 559WA earmarked for the scheme in 1988–89, and £3.5 million for the full year 1989–90. This will represent a very significant level of financial assistance, over and above that available through YTS, for training in the industry. The Government's intention is that this support should lead to a substantial increase in the number of cadets being trained and should open up new opportunities in the industry for those interested in a challenging and worthwhile career. I hope that everyone concerned will take full advantage of this assistance.