PLANS to encourage unemployed Gwent steelworkers to join a building industry desperately short of craft skills in Wales is awaiting the go-ahead for funding from Europe.

The industry is facing the mammoth task of having to replace around 35,000 jobs every year in Britain.

But the federation has plans to re-train 240 former Corus employees in a scheme it hopes will be paid for with European cash.

The crisis in the steel industry is mirrored by a different one in construction, where for various reasons demand for trained workers is outstripping supply.

Gareth Morgan, regional director of the Federation's Western Business Centre, said the shortage was very serious.

"Traditionally there has been an apprenticeship system and supply has met demand," he said. "Now, young people are more interested in information technology and some want to earn quick money at 16 or 17 than invest in their training. Schools also encourage people to stay on in further education.

"We have been recruiting in different areas, particularly among more mature people in their mid-20s or 30s who might be considering a change of career."

Mr Morgan said the Corus situation was ideal because it meant that a large workforce was coming on to the labour market which could suit the building industry's needs. "There is a strong commonalty of skills in steel and the construction industries - it is in the open, or close to it, and there are trades such as carpentry and plumbing which are needed in both."

Application for re-training funds was made during the last couple of months. A decision is expected soon.

"The schemes would operate in the eastern valleys of South Wales and the north-east area around Shotton and would probably be using Objective 1 and Objective 3 funding," said Mr Morgan.

'We hope we can get this off the ground very quickly once we receive the green light from Europe.

"We hope it will assist in in some the problems of the Corus situation." As the federation waits for the nod from Europe, it is celebrating the opening of its Centre of Excellence in Cardiff, which will provide small to medium-size contractors throughout Wales with professional support to help their promotion and development.