With Queensland facing a looming trades shortage, there is an acknowledgement across the industry that apprentices will be needed to meet a growing demand for construction.<\/p>\n
But for many small businesses, including Ben Bernard’s Brisbane-based company, putting on an apprentice just is not financially “feasible”.<\/p>\n
“We have enough costs incurred in taxes that make it hard enough to run the company,” he said.<\/p>\n
“To then try and employ someone who isn’t really much profit for the company for the first two or three years \u2026”<\/p>\n
<\/p>\n
Mr Bernard, who is pictured second from the right, says he likes to pay apprentices above minimum wage. (Supplied)<\/p>\n
Mr Bernard said he also liked to pay his apprentices above minimum wage rate.<\/p>\n
“Just so it helps them out, and helps them live,” he explained.<\/p>\n
“And you don’t have to hear ’em turning up every day telling you how they’re getting paid bugger all.”Pilot covers 7 per cent of apprentices<\/p>\n
Mr Bernard is among many in the industry who have cautiously welcomed a $19 million pilot program which would subsidise the wages of 2,000 construction apprentices during their off-site training, agreeing something needed to be done.<\/p>\n
But others warned the program, announced by the state government on Thursday, would not be enough.<\/p>\n
In 2023, Construction Skills Queensland reported there were more than 30,000 apprentices in the state, meaning Thursday’s announcement would cover about 7 per cent of that number.<\/p>\n
Master Plumbers Association chief executive Penny Cornah said the program would, however, help to ease the financial burden on small and family-owned businesses.<\/p>\n
<\/p>\n
Penny Cornah says apprenticeship positions are in high demand. (Supplied)<\/p>\n
“It costs an employer over $250,000 for an employee apprentice over a four-year period, and they only receive 2 per cent of that in government incentives,” she said.<\/p>\n
She said many apprentices struggled to find an employer who will take on their training, and existing positions were in high demand.<\/p>\n
“We had a member recently who put up a job advertisement looking for an apprentice based in south-east Queensland. He had 350 people apply,” she said.<\/p>\n
There are about 4,000 plumbing apprentices in training in Queensland, according to Ms Cornah, but she predicted “more than double” that number would be required to meet construction needs.<\/p>\n
“We have a huge demand to meet the requirements of the pipeline of work coming through for the Olympic Games and also just general infrastructure projects here in Queensland,” she said.<\/p>\n
<\/p>\n
There is growing demand for trades across Queensland. (ABC News: John Gunn)<\/p>\n
Easing burden on small businesses<\/p>\n
Under the pilot program, eligible businesses will be able to receive a subsidy of 50 per cent of the typical wage for first- and second-year construction apprentices, and 25 per cent for third- and fourth-year apprentices while they are being trained.<\/p>\n
The total payment over four years works out to $10,060 for apprentices aged under 21 and $13,740 for those aged over 21.<\/p>\n
<\/p>\n
Ros Bates announced the pilot program on Thursday. (ABC News: Lucas Hill)<\/p>\n
The minister for Finance, Trade, Employment and Training, Ros Bates, said the new program was a response to calls from small businesses.<\/p>\n
“The construction industry is the third-largest industry in Queensland and is central to some of our key priorities,” she said.<\/p>\n
Warwick Royal, who runs a family-owned plumbing company in Brisbane’s north, agreed the hidden costs in hiring an apprentice could be a burden.<\/p>\n
Paying for training costs while apprentices are off-site and the reduced productivity for employees supervising apprentices “all add up”, he said.<\/p>\n
“When it comes to the cost to you, you really have to say, ‘Is this worth it?’<\/p>\n
“Is it worth me giving opportunity to somebody when it’s going to cost me so much money?”<\/p>\n
<\/p>\n
Mike Roberts says more innovative solutions are needed. (Supplied: Housing Industry Association)<\/p>\n
More solutions needed<\/p>\n
Mike Roberts from the Housing Industry Association said the pilot program could be an “important piece of the puzzle”.<\/p>\n