Proskills, the timber industry sector skills council (SSC), says it believes it can survive after losing government funding, but acknowledges it is going through a difficult time.

The organisation, which became timber’s SSC at the start of 2010, has been told that its bid for government cash under the Employers Industry Fund has been unsuccessful. This was two-thirds of its funding – around £1.6m.

Previously, said the organisation’s general manager Tom Bowtell, government money was divided equally between SSCs.

“But now the overall budget has been cut and SSCs have to make competitive bids,” he said.

The key criterion for being backed by government is that SSCs secure sufficient match funding from their industries to underline their commitment to training. But in this respect, Proskills’ nine sectors, which include paper, glass, ceramics and building products manufacture, could not match other industries. Skillset, the SSC working with a range of creative industries, including TV and publishing, secured £6m in the bid round, while SEMTA, whose remit includes science and engineering got £5m.

Mr Bowtell said that Proskills was disadvantaged in the bid process by working with industries made up predominantly of small to medium-sized businesses, with larger companies in other sectors being better placed to access training funding. Although, he pointed out, combined the nine sectors Proskills represent employ 780,000 people and contribute £68bn to GDP.

“We feel this contradicts the government’s stated aim to help the SME business sector develop,” he said. “We think they have questions to answer.”

Proskills has had to slim down and will meet its board, representing its nine sectors, on February 3 to ask for its approval for its new business model. This will involve employers contributing more.

“We believe we do have a sustainable model and it won’t be just a case of asking companies for a levy to fund our work. We will be promoting their use of our services, such as online academies and training provision, which will be a win win,” he said.

He added that Proskills’ industry sectors had been very supportive, and were lobbying government to change its mind.

Timber Trade Federation chief executive John White has written to business secretary Vince Cable, asking for an explanation for the government’s “bizarre decision” on Proskills funding.

“A meeting of timber industry bodies in 2009 identified training as the key area where we needed to collaborate and the appointment of Proskills as SSC was one outcome,” he said. “Since then they have done a fantastic job identifying our training needs and devising new NVQ-level qualifications, the first of which will be unveiled soon.”

Proskills has also recently launched the Wood Skills Academy to help employers and prospective employees access training. The new qualifications for sawmilling, timber merchanting and tooling technology are due to be unveiled by March. And an industry apprentice scheme is also in planning.

“It is a difficult time,” said Mr Bowtell. “But we’re committed to ensuring the timber industry gets its new qualifications and training framework.”