The Federal Government has announced that target the building and construction industry with training and development assistance as part of a massive new skills initiative.

It has set up the National Workforce Development Fund to address skills for jobs in sectors suffering from critical skill shortages.

The National Workforce Development Fund will allow the building industry to make bids to secure matched funding to train its current or prospective workforce, with small businesses receiving more assistance.

The 2011-12 round of the fund will allocate $50 million focusing on the priority industry sectors of Construction (civil and general) and Aged Care.

“Construction is the third largest sector and is experiencing strong growth as a result of the flow on effects of the mining boom,” Senator Evans said.

The co-contribution model means that large enterprises will contribute 66 per cent of the cost of training, medium enterprises 50 per cent and small enterprises 33 per cent.

The announcement to target the building and construction industry with training and development assistance recognises the immediate and growing need for skills development to meet Australia's future demand for trades people, according to the HIA.

"The residential building industry has long been the 'training kindergarden for trade skills development'. Supporting industry with assistance programs such as this to equip tens of thousands of workers to meet our future skills needs is a positive first step for the fund," said Nick Proud, HIA executive director - industry workforce development.

"Placing immediate priority for the first $25 million tranche of the new $558 million Workforce Development Fund to facilitate training in the building and construction industry acknowledges a future pipeline of work flowing from a range of factors that have potential to draw trades people into demand," said Proud.

"Australia's future housing needs are characterised by the current housing shortage. Underlying demographic demand is running at 174,000 dwellings per annum.

"Construction and building workers are amongst the shortlist of tradespeople that are being called upon to assist to meet a shortfall of 150,000 skilled workers by 2017 in Western Australia alone.

"In the longer term, an underlying demand for new homes, tight rental markets and attrition of baby boomer tradespeople all require a mix of options to encourage new trade apprenticeship starts, upskilling and industry sponsored migration.”

Applications can be submitted until 30 September 2011.

Further information on the new Fund can be found at www.deewr.gov.au/nwdf