BusinessNZsays Labour's proposal to tax employers who are not providing training would bea blunt instrument that would not fix the problem of skills shortages.

ChiefExecutive Kirk Hope said the real problem is that many employers can't find NewZealanders to employ.

"Theunderlying problem is that many employers can't get New Zealand staff, whetherskilled or unskilled – and if they can't get them, they can't train them."

Hesaid the proposal raises the issue of whether small businesses have thecapacity to be able to deliver training.

"NewZealand businesses are practically all small businesses and they are not set upto be training establishments. A subsidyfor businesses to build capacity for training might be more practical.

"Businessappreciates the fact we have large numbers of young people not in employment,education or training. Social investmentis clearly needed to help this group, and business supports assistance beingprovided to ensure these young people do not becomeunemployable.

"However, taxing small businesses because they can't findNew Zealand staff would not help this and other issues involved in the complexarea of skill shortages.