THE Rudd government has taken an axe to an apprentice incentive program that could have a devastating impact on already plummeting numbers. Martin Riordan, CEO of TAFE Directors Australia, said the decision to cut the apprenticeship completion payments program across a majority of skill areas was not a "refocusing" of the program, as the government claimed but a reduction. "It will further impact the critical decline now facing Australian apprenticeships," Mr Riordan said. A reduction in employer incentives in 2012 was the primary reason for the dramatic drop in apprenticeship numbers and there is no doubt this decision will have a similar effect. The government has estimated cuts to the program will save $24.4 million. While a a large number of priority areas will remain under the incentive program, retail, management and clerical traineeships would be the most affected, he said. Under the program employers are paid $3000 for each apprentice who completes and $1500 for each part-timer. Those already in training will not be affected.