The West Midlands will not build a stronger economy unless it makes boosting skills its top priority, Regional Minister Ian Austin will warn tomorrow.

Higher level skills will be essential if the Region is to realise the opportunities presented by new products, new processes and new industries during the anticipated economic upturn.

Austin will issue the tough message, and announce additional funding for an extra 250 placements through the recently launched West Midlands Graduate Internship service, as he helps launch the update to the regional Skills Action Plan - both a report on the progress made in responding to the skills needs of employers and the wider community of the West Midlands, and a set of new, stretching goals for the coming year.

The launch of the updated regional Skills Action Plan, jointly commissioned by regional development agency Advantage West Midlands and the Learning and Skills Council, will take place at the Birmingham office of the Institute of Directors, 1 Victoria Square.

In a short presentation, Ian Austin will emphasise the importance of delivering on the ambitious Skills Action Plan and also highlight some key achievements.

Austin will say: "Skills are at the very top of our agenda here in the West Midlands. The only way we'll reverse the decline in the economy here in the West Midlands is with better skills. There's no other way we'll be able to attract the new jobs and new industries on which our prosperity in the future will depend.  

"A skilled workforce is the essential foundation for the kind of dynamic, knowledge-led economy we need if the region is to compete when the upturn comes.  It is now more important than ever to concentrate on up-skilling our workforce and training apprentices so we can prepare for the upturn.

"As set our earlier this week in the National Skills Strategy, the Government is committed to creating the conditions in which British businesses can compete and prosper. To take just one example, advanced manufacturing, with its heartland in the West Midlands, is one of the UK's biggest exports and is central both to our recovery from recession and to our future success.

"That is why we are committed to ensuring that we equip businesses and their workforce with the capabilities and skills to take advantage of opportunities in the new growth areas such as advanced manufacturing and low-carbon technologies.

"And that is why I am announcing that we are providing funding, through Advantage West Midlands, for an additional 250 placements on the West Midlands Graduate Internship service, bringing the total number of graduate placements through the pilot scheme to 500 by March 2010."

Mike Beasley, Chair of the Regional Skills Partnership, will say: "In our first Skills Action Plan of March 2008 we recognised we had to bring about a step-change in our ambitions for the knowledge, skills and talents of all who live, work and study in the West Midlands.

"Over the last year we have made real progress but we need to be honest about the size of the challenge still remaining. The report sets out both. We have improved our work-based skills development and redoubled our efforts of working in partnership. We now need to invest in the skills that will be needed both today and in the future." 

As part of the event the recent work on a graduate internship service will be showcased.

John Rider, representative of the Institute of Directors West Midlands, will say: "The Institute of Directors has helped the Region's universities and employers, Jobcentre Plus and Advantage West Midlands with their launch of the West Midlands Graduate Internship service - to give graduates and businesses a helping hand in the recession. Originally for 250 placements, this service has now been extended to March and will provide 500 internships. The rapid and effective collaboration that brought this programme together is a real success story and shows what can be achieved when we focus our energies and efforts as one."

Pat Jackson, Director of Skills at Advantage West Midlands, will say: "A system of being responsive to the skills demands of employers is key. This approach is at the heart of the National Skills Strategy. Our work on the regional Skills Action Plan means that we are well placed in the West Midlands to take on our new role, with partners, in producing a regional skills strategy that articulates employers' requirements and is focused on economic growth."

"We will continue working with our partners to obtain maximum impact from our investment, to encourage more leaders and managers to invest in their own skills as well as those of their employees, and to pick up the pace on this activity."

Julie Robson, Deputy Regional Director of West Midlands Learning and Skills Council, will say: "The refreshed and updated Skills Action Plan, with increased targets for skills investment in our region is critical as we continue to deal with the problems of recession and look forward to emerging from it. The Skills Action Plan sets out strategic priorities that will allow us to unlock talent in the regional workforce, improve lives and provide the skills needed to achieve economic success.

"For the Action Plan to succeed, it is vital that employers are at the heart of making a step change in the future impact of skills and demonstrate a genuine commitment to the skills development of their workforce in the interests of our region's future economic success."

Helen Higson, Pro-Vice Chancellor at Aston University, will say: "Since the last Skills Action Plan there has been much greater working with employers, brokering placement opportunities and stepping up our action on employability skills.

"In line with Advantage West Midland's priorities for delivery, we have placed much greater emphasis on improving the employability of graduates through a range of focused services which are also aimed at improving business productivity."

Margaret Tovey, Director of Jobcentre Plus, West Midlands, will say: "The revised Regional Skills Action Plan will help us to address the skills shortfall in the Region which will be vital in supporting the response to the effects of the recession. There is a particular need to improve the skills base among disadvantaged communities. Jobcentre Plus will work with employers to ensure that skills and employment needs are understood and acted upon.  We are already doing this through our Local Employment Partnerships, the Future Jobs Fund and our recent work with other partners on the West Midlands Graduate Internship service."