Member for Whitlam Stephen Jones says there are now 500 fewer apprentices in his electorate than when Labor was last in government.
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The federal opposition spokesman for financial services and superannuation said this represented a decline of over one in five apprentices.
Mr Jones said the government's most recent data revealed that under the Liberal Government, there were now 150,000 fewer apprentices across the country than when Labor was last in government in 2013.
"The Liberal Government pledged to get more apprentices, but the number of apprentices have gone backwards on their watch," he said.
"No wonder businesses in the Illawarra and Southern Highlands are faced with a skills crisis.
"Scott Morrison promised there would be extra 300,000 additional apprentices and traineeships in 2018, but there are 150,000 fewer apprentices today."
In this year's federal budget the government announced it was extending the JobTrainer fund, to provide "about 163,000 extra low-fee and free training places".
"After years of funding cuts to the sector and fewer apprentices, Scott Morrison is now telling Australians they should believe he will now more than double the national total in 18 months," Mr Jones said.
"Business need skilled workers now - not in six to 12 months' time.
"Labor has a plan to rebuild apprenticeships, starting with the energy sector where Labor will deliver 10,000 new energy apprenticeships to train our workers in the jobs of the future.
"New energy apprenticeships will mean secure, well-paid jobs of the future, and will bring manufacturing back to Australia."
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