John Key

Wellington, Aug 2 NZPA - The Government's plan to spend $152 million creating work, education and training opportunities for unemployed young people has been welcomed -- as a first step.

Prime Minister John Key told the National Party conference that the money needed to be spent as the number of unemployed youth rose from 4000 last June to 17,000 this June.

Labour welcomed the announcement as a "good start" but said it "only scratches the surface of the growing youth unemployment problem", tertiary education spokeswoman Maryan Street said.

"The number of places to be provided falls well short of what is required."

There was not enough detail in the proposal, Ms Street said.

The Council of Trade Unions also cautiously welcomed the announcement.

President Helen Kelly said it was a "good start" but "only a modest programme".

"Today's announcements are the first real sign that the Government is prepared to ramp up programmes to directly address unemployment." Business New Zealand chief executive Phil O'Reilly was more supportive of the package.

It was a "multi-pronged approach" and was likely to "succeed in reducing the current bulge" in youth unemployment, he said.

"It will be important to ensure the scheme is properly managed and monitored and that the proper support networks are in place for both employees and employers taking part in the scheme."

Associate Minister for Social Development Tariana Turia said rural youth would benefit from the $40.3 million Community Max scheme which will provide places in community programmes.

Rural youth also want "more cash in their pockets and to made to feel that they have self-worth and pride".

Many Maori live in rural areas and Mrs Turia also called on Maori youth to "get on the waka".

Too many Maori and Pacific youth had low, or no, qualifications and must "seize the opportunities" offered to get them trained and into the labour market.

Marae, Maori land incorporations and Maori and Pacific "grassroots" organisations should make use of the scheme, Mrs Turia said.