Car makers to show the way in new training plans; Brown's fears over world skills gap.

Byline: BY ROB MERRICK Political Correspondent

MERSEYSIDE'S car makers will be paid to lead Gordon Brown's drive to win the global "skills race" with a dramatic increase in apprenticeships.

Firms such as Ford and Vauxhall will receive thousands of pounds to take on young trainees - even though there may not be a job for them at the car giants.

The idea is that the trainees would instead find work in the supply chain for car manufacturers, who would be paid for the "financial risk" they have taken.

The prime minister hopes such "direct payments" will help one in five young people go into apprenticeships within 10 years.

The current ratio is just one in 15.

However, the Department for Innovation, Universities and Skills (DIUS) played down suggestions that carmakers would be the latest firms to offer their own "A-levels".

The news that fast-food giant McDonald's, airline Flybe and Network Rail have won approval to offer qualifications at the standard of A-levels triggered criticism yesterday.

Under the Government's plans to expand apprenticeships, 18 and 19-year-olds are already offered pounds 3,000 to help meet their training costs.

Now a National Apprenticeship Service will be set up to co-fund apprenticeships at large companies, particularly in the automotive industry and construction.

A DIUS spokesman said: "The car industry has the sort of supply chain that makes it ideal for this initiative and there has already been interest from some employers.

"This is something the CBI has been calling for and there will be significant financial inducements available. We hope the first payments will come on stream later this year."

Ford employs a 2,400-strong workforce at Halewood, who make the Jaguar X-Type range and Land Rover's new Free lander 2 4x4 model.

Meanwhile, around 2,200 people work at Vauxhall's Ellesmere Port plant, who will help build the new Astra car from 2010.

Reflecting on his recent visit to China and India, Mr Brown said: "A generation ago, a British prime minister had to worry about the global arms race.

"Today, a British Prime Minister has to worry about the global skills race - because the nation that shows it can bring out the best in all its people will be the great success story of the coming decades."

THE apprenticeships review praises Liverpool John Moores University for "setting a new standard for higher education".

CAPTION(S):

Drive for skills - Gordon Brown