Education/training

Financial grant to help new apprentices

The federal government recently released details on its Apprenticeship Incentive Grant, which will offset the costs of tuition, travel and tools. Its promise to help up to 100,000 apprentices each year is getting the thumbs up from industry officials.
[ 2007-05-16 ]

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ROUGEAU
Canadian Apprenticeship Forum

“Vital”


“It is vital that we support apprenticeship programs and recognize their importance as a model of post-secondary training,” says Allison Rougeau, executive director of the Canadian Apprenticeship Forum (CAF).

According to CAF research, the cost of apprenticeship is one of nine perceived barriers to apprenticeship training. “Research undertaken by the Forum shows that costs associated with tuition, travel, tools and income interruption may pose challenges for a successful experience,” Rougeau says.

“This new grant is a step in the right direction. It will help ensure that we have the skilled, high quality and productive workforce we need to succeed.”

In addition to the apprenticeship apprentice grant, the federal government unveiled this spring details on the following initiatives, also introduced in its 2006 budget:

  • The Job Creation Tax Credit, a non-refundable tax credit offered by Canada Customs and Revenue Agency (CCRA), applies to any business that hires an eligible apprentice. The tax credit is equal to 10% of eligible salaries and wages payable to eligible apprentices. Employers are allowed up to $2,000 per year per eligible apprentice tax credit.

  • The Tradesperson’s Tools Deduction is an annual deduction of up to $500 offered by CCRA to all tradespeople to help cover the cost of new tools necessary to their trade. The total cost of the tools must exceed $1,000; tools must be purchased after May 1, 2006; the purchase of the tools must be made by an employed tradesperson; and the deduction applies to eligible tools brought solely for the use in the tradesperson’s job.


    • According to CAF research, employers perceive the cost of apprenticeship as a major barrier to apprenticeship training. “If there are costs, they are more substantial in the first or second year of training,” Rougeau says. “The tax credit for employers addresses that issue.”

    Canada is beginning to feel the affect of a shortage of skilled tradespeople, which is expected to increase as baby boomers retire. In its 2006 budget, the federal government invested more than $500 million over two years to support apprentices and skilled tradespersons, including the Apprenticeship Incentive Grant program of $125 million.

    “Canadian businesses are challenged to maintain and increase performance and productivity,” says Donald Oborowsky, former chair of the CAF board of directors and co-owner of Waiward Steel Fabricators Ltd. in Alberta.

    “Competitive advantage”


    “As a business owner, I believe that an investment in apprenticeship will improve my competitive advantage. Apprenticeship incentives will go a long way to support investment in apprenticeship for employers, journeypersons and apprentices alike.”

    For more information on Red Seal trades, visit www.red-seal.ca.

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    QUICK FACTS


    In addition to covering some tuition, travel and tool costs, the grant is meant to encourage apprentices to get their Red Seal endorsement. There are currently 49 Red Seal trades covering approximately 80% of the Canadian skilled trades workforce. Application forms for the grant are available at Service Canada Centres and at www.servicecanada.gc.ca.

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