Improved Tax Credit Will Increase Apprenticeship Opportunities
The continued success of manufacturing in London depends on a highly
skilled workforce. Many low skill jobs have vanished to Mexico, China
and other low wage environments. Our ability to compete successfully
on a global scale depends on the ingenuity and skills of our young
people.
London has had tremendous success, through the good work of the London
Economic Development Corporation (LEDC), in attracting new manufacturing
investment to London. In the past six years, London has become home
to nine new manufacturing plants which, when fully staffed will employ
in excess of 16,000 workers. Many of these workers will, of necessity,
be from the regulated skilled trades.
It is important to understand that these new investments in London
are not the result of inexpensive land and highway access. Strategically
located and less expensive land is available all over North America.
These companies choose London because we have a highly skilled manufacturing
workforce.
Skilled industrial trades are the foundation of our future manufacturing
growth opportunities. Without a skilled workforce, we will not attract
new investment and as a result, we will not prosper as a city.
The Ontario government has recently improved the tax credit available
to businesses that take on the important task of training our future
skilled workers.
Businesses are now eligible for a 25 per cent refundable tax credit
on wages and salaries paid after May 18, 2004, to eligible apprentices
during the first 36 months of the apprenticeship. Businesses with
total payroll costs not exceeding $400,000 would be eligible for a
higher tax credit rate of 30 per cent. The maximum tax credit per
apprentice would be $5,000 per year over the first 36 months of the
apprenticeship.
This incentive is designed to reduce training costs in an effort
to get more young people into skilled trade apprenticeship programs.
Education sources confirm that students are lining up to enter the
skilled trades but have been unable to secure training positions for
the essential hands on portion of their programs.
This tax credit is a valuable opportunity for London manufacturers
(and other businesses) to receive a subsidy to train their own skilled
workers.
Other elements of the governments plan to increase apprenticeships
include:
-
1,500 scholarships of $1,000 to those who have left high school
and return to graduate and enter apprenticeships and bonuses of
$2,000 to encourage employers to hire these same young people
as apprentices
-
The introduction of the Co-op Diploma Apprenticeship Program
to provide young people with a clear path to skilled trades careers
and a postsecondary education
Skilled trades are an important part of our industrial future in
London. I encourage all London manufacturers to examine their opportunities
to take on an apprentice for the good of their company and the future
of London's workforce.
The London Region Manufacturing Council (LRMC) is an industry organization
that seeks to promote the continued growth and prosperity of the
London Region manufacturing sector by engaging the manufacturing
community for the purposes of raising awareness; and promoting local
manufacturing regionally and beyond.
For information relating to apprenticeship trades and this new
tax credit, please contact the London office of the Ministry of
Training, Colleges and Universities at 675-7788 or Job Connect is
432-1220.
www.manufacturinglondon.com
Denis Crane is the Chair of the London Region Manufacturing Council
