ELECTION 2010: Abbott to axe Enterprise Connect program as Gillard promises national trade cadetships

Opposition leader Tony Abbott has announced he would slash the Government’s Enterprise Connect program, which operates 12 advice centres around the country specifically aimed at SMEs, as part of $1.2 billion worth of spending cuts unveiled this morning.

The Coalition, which has already flagged more than $40 billion in budget savings, said this morning it will search for further cuts to bring the nation’s debt under control.

Among the cuts proposed by Abbott is abandoning Australia’s bid to join the UN Security Council, a reduction in the number of COAG meetings held each year and further cuts to the NBN rollout program.

But the plan to abandon the Enterprise Connect program, which he says would deliver savings of $101.6 millon, comes as a surprise.

The program, established under Kevin Rudd, saw the creation of a network of centres where SMEs could go for business advice and to have a review of their business completed.

There were also specific centres within the network for the manufacturing, defence, clean energy and resources sectors.

The Government said in July that the $50 million a year program has helped 3,000 businesses.

Abbott told reporters that debt and deficit would be key election issues and spending cuts were needed.

“If households, small business (and) families have got to tighten their belts it’s only right and proper that government should be tightening its belt too.”

Meanwhile, Prime Minster Julia Gillard has unveiled the first major policy designed to tackle Australia’s skills crisis, announcing that her Government would introduce a national trade cadetships program to help secondary students make the transition from school to an apprenticeship.

Under the $3 million program, secondary students who do not plan to pursue a university degree will be able to enter the national trade cadetships program while still at school.

Gillard says the qualification earned via the program will be recognised as part of a standard apprenticeship training program.

“It’s an important step forward because it makes it easier for kids who want to get a qualification that is recognised,” Gillard told reporters this morning.

She said the program would stand alongside the Government’s current vocational skills programs, which currently involve more than 220,000 school students. However, Gillard says many of these vocational student training programs are not recognised outside the schools system.