Oil industry bosses said yesterday that the liquidation of a north-east apprentice training centre was “devastating” for the region – if not all of Scotland.
They said organisations like ITCA Training played a vital role in helping young people carve out successful careers and that the centre would be “deeply missed”.
The liquidation has put 10 staff members out of work and left scores of apprentices scrambling to find places at other centres.
A manager at another north-east training company said ITCA’s demise was symptomatic of oil companies’ focus on cutting costs during the downturn.
Neil Dempsey of Anderson Anderson & Brown was appointed provisional liquidator last week after a winding up order was received.
He said business rates increases had also played a part in the organisation’s failure.
Dyce-based ITCA opened in the north-east in 1989 and became one of the biggest engineering apprenticeship firms in Scotland.
But ITCA managing director June Jones warned recently that the organisation was struggling.
A year ago, she said urgent action was needed to address “short-sighted” cutbacks by downturn-hit firms and called for employer incentives to be introduced.
In March, Ms Jones said the company was in a “vulnerable” situation as it faced a reduction in enrolments.
Mr Dempsey said ITCA was hit hard by the downturn and the subsequent drop in spending on training programmes.
He said ITCA had tried to lower its cost base, but that its efforts ultimately fell short.
He said: “Following discussions between ITCA and the landlord for the company’s trading premises over the rental costs being incurred, and also the impact of the increase in non-domestic rates, the director reached the decision that the company could no longer trade on.”
Ms Jones declined to comment.
Skills Development Scotland (SDS), which delivers the Scottish Government’s Modern Apprenticeship programme, said 125 trainees had been affected by the liquidation.
But SDS said it was “working with administrators, employers and training providers to identify alternative training providers” for the apprentices.
Jim Booth, training executive at Tullos Training, said apprentice numbers had fallen dramatically in the region over the last two years.
Mr Booth said oil companies had to take their share of the blame for ITCA’s liquidation.
He said: “ITCA’s liquidation came as a shock to us, but every training provider out there is finding it difficult.
“One of the first things to go is training. It seems to be an easy cut for these companies to make.
“Companies have to take some responsibility. They’re the ones who complained about an aging workforce in the industry. To override that, you have to take on apprentices.”
Mick Beavers, managing director of Control Valve Solutions (CVS), said ITCA’s fall would be “devastating” for young people who were not suited to academic careers.
Mr Beavers said CVS had been working with ITCA since 2010 and that several of its trainees were undertaking courses at the centre when it was placed into liquidation.
He said: “It’s not just the oil industry and Aberdeen that’s going to suffer − it’s also the kids leaving school who do not have great career options ahead of them.”
Alfie Cheyne, chief executive of Ace Winches, said organisations like ITCA were “fundamentally important” for the development of a skilled Scottish workforce that can “compete successfully in the international energy business”.
Mr Cheyne said Ace Winches had turned to ITCA for training for more than 20 years, in which time the two businesses had helped well over 100 Modern Apprentices complete the programme.
He added: “The region will be worse off without ITCA and they will be deeply missed.”
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