Julia Gillard has announced a government plan which will benefit vocational training and trade sectors in order to boost future economic growth.

The plan was announced today (March 19), and will see funding for training increased by $7.5 billion over five years to assist states in paying for consistently high-quality educational opportunities.

During her speech to the Australian Industry Group Gillard stated: "Our nation's long neglect of vocational education is at an end."

Group Training Australia released a statement in response to the announcement of the program, commenting that if all states supported the move and adopted the plan Australia's training system would receive a welcome boost in terms of quality and recognition.

"We welcome the prime minister's recognition that skills and training play a critical role in driving productivity and giving people the opportunity to improve their employment and economic prospects," said the chief executive of Group Training Australia, Jim Barron.

"It is important that the momentum created from these reforms is built upon, and that the VET system continues to be updated and improved."