The election campaign is well and truly underway and the skills shortage has emerged as a critical issue, with both parties starting to outline their policies on trades and skills.

Both the Coalition and Labor view the shortage of skilled tradespeople as an important policy area, with each party stepping up to announce their long-term plans to provide the addtional skills and strengthen the economy.

Pledges from the Coalition

The Coalition has pledged $393 million to top-up the existing Work Skills Voucher program that has been running since January. Under the scheme, people without Year 12 or higher qualifications will be given up to $3,000 to access training.

Prime Minister John Howard has also announced a plan to build 100 more Technical Colleges over the next decade through an investment of $208 million over 10 years.

"Thirty or more years ago, this country made a terrible education mistake, when it moved away ... from dedicated technical schools," he said. "I want an Australia where a technical qualification is as prized an asset as a university degree."

And in a debate at the National Press Club with Wayne Swan, Treasurer Peter Costello announced a $170 million package to help small business.

Mr Costello says the $170 milion will be spent over five years on training vouchers to help drive down unemployment.

New plans and policies from Labor

Labor has also been busy announcing their skills and training policies, including plans to improve the standard of vocational education and training as part of their Education Revolution.

Kevin Rudd has promised to spend $2.5 billion establishing trades training facilities in each of the nation's 2650 schools.

The Trades In Schools program is designed to boost the number of young Australians entering the trades and was designed lift Year 12 retention rates.

If elected, every high high school would be eligible for between $500,000 and $1.5 million to build trade workshops, computer labs, trade kitchens and graphic design labs.

Opposition education spokesman Stephen Smith said the Trades in Schools program was a better way to alleviate a shortage of skilled workers.

In addition, Labor has announced that a Rudd Labor government would create a new institution to advise the government on how to address skills shortages in the work force.

Skills Australia would be an independent statutory body that would help fix the nations skills shortage.

Mr Rudd said: "We need a national body that provides advice to government to help prepare our workforce to meet future demands."