4. Mrs Dodds asked the Minister for the Economy to outline what discussions he has had in relation to replacing the apprenticeship levy. (AQO 932/22-27)

The apprenticeship levy was imposed by the British Government on both our public and private sectors. The Independent Fiscal Commission concluded that there is a strong case for devolving the levy, not least because it complements the Executive's responsibility for economic development and skills. I will consider the implications of the new growth and skills levy, which the British Government recently announced to replace the apprenticeship levy. Having done that, and as necessary, I will liaise with my colleague the Finance Minister, who is responsible for leading on fiscal matters with the British Government.

We all know that the apprenticeship levy, as was, caused significant consternation for businesses who feel that they contribute a lot but get nothing back. Will the Minister tell the House how much money is involved in that and whether doing it locally, but ring-fencing money for skills, would be of benefit to the economy?

The latest figures show that approximately £73 million was raised by businesses here. The difficulty for us is that that is not ring-fenced; it comes as part of the block grant. I would gladly welcome £73 million coming into the Department to be put towards apprenticeships and skills, but that is a debate for the Executive as a whole because they would be taking it off other critical public services.

I get the frustration of businesses about their input when they do not see the value of the output coming back to them. We invest about £30 million in apprenticeship training annually, but, still, a consistent theme that I hear from businesses that I meet is that they do not see the value of their investment. I am sure that, when the Member meets businesses, she hears the same. I am interested to see what changes the current Government might make in relation to that. Of course, we will make representations like that to them, to say that we need to see the benefit coming back to us.

How many apprentices are currently being funded by the Department?

As I said, the Department invests about £30 million annually in apprenticeships: from level 2 apprentices who leave school at 16 to those who take up a higher level apprenticeship. Over 13,000 people are undertaking employment and learning through our apprenticeship programmes.