5:40pm Wednesday 14th January 2009
By South Wales Argus Newsdesk
One of the Assembly Government's main weapons to combat the recession will be tested on the car industry, it was announced today.
Businesses threatened with having to lay off staff will be able to send them on subsidised training courses.
A pilot of the ProAct scheme will begin with the troubled automotive sector. Other industries could be included from April.
Rhodri Morgan yesterday said it was part of a "survival kit’’ to limit the worst effects of the recession and a "preparation kit’’ to make Wales ready for an eventual upturn.
But opposition AMs have criticised the time it has taken to start the scheme. It came out of a series of economic summits the First Minister chaired with business, trade union and local government leaders late last year.
Companies that have introduced short-term working and are considering redundancies will be eligible to take part.
They will get £2,000 per employee to pay for staff training and a wage subsidy of £2,000 for the duration of the training period.
Education Minister Jane Hutt said: "This is the first scheme of its kind in the UK and is one of several measures the Welsh Assembly Government is putting in place to help Wales deal with the global economic downturn.
"The initial pilot will focus on the automotive sector, which is facing particularly challenging times, for the first three months, and if the pilot is successful we will be seeking to widen inclusion in this scheme from April 2009.
"As a government we acknowledge the downturn is being felt across all sectors and we are committed to supporting businesses and communities throughout Wales in what are unprecedented circumstances.’’ Deputy minister for skills John Griffiths said it complemented the Assembly Government's ReAct initiative to help laid-off workers find jobs.
"ProAct will help employers retain skilled staff and enhance their skills ready for the upturn,’’ he said.
"As well as helping to prevent redundancies, the ProAct programme will help improve the skills base in companies across Wales.’’
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