The scheme allowed young people to gain experience of work

The award-winning programme, based in Newtown, Powys, shared youngsters between companies which otherwise could not have afforded an apprentice.

The Shared Apprentice Scheme praised by Elwa for helping reduce a shortage of young craftspeople.

Elwa said it was disappointed by the closure, but said the scheme withdrew from a competitive tendering process.

It was set up in 1996 at a time when small companies in rural Wales were short of youngsters trained in mechanical and electrical engineering, electronics and administration.

Princess Anne visited the Shared Apprenticeship scheme in 2001

It worked with nearby Coleg Powys to provide recognised qualifications and shared the burden of training young people between up to three small companies.

Since it was set up, the project has given 200 apprentices experience in their chosen trade.

In 2001, the Princess Royal visited the scheme, which was being promoted by Elwa promoted as an answer to the problems of training young craftspeople.

But the training and education quango has now stopped a �70,000 grant, which will lead to closure at the end of this week.

Company directors who are working voluntarily with the scheme have said its closure will be a huge loss to the area.

Elwa said it was disappointed, but the scheme had withdrawn from a competitive tendering process. It now places trainees with other training providers.

Elwa - Education and Learning Wales - is currently responsible for funding, planning and promoting all post-16 education and training in Wales with the exception of higher education.