Plans to create a shortcut school-leaving qualifications have alarmed Sussex business leaders.

The Sussex Branch of the Institute Directors (IoD) welcomed Government proposals to slim down the National Curriculum and to strengthen the vocational aspect of the education system but it had reservations over the fast route to AS levels.

It has expressed concern over plans, published in the education Green Paper, Extending Opportunities, Raising Standards, to introduce a matriculation diploma for school leavers and to allow pupils to skip GCSEs and go straight AS levels.

Michael Evans, chairman of IoD Sussex Branch, said: "The business sector is very unhappy about students being able to proceed straight to AS levels, as GCSEs provide local employers with the evidence an applicant has received a basic education.

"If GCSEs are considered to insufficiently challenging to able students, they should be made more difficult rather than being replaced."

He said the extent to which employers and universities value AS levels highly questionable which is why the IoD is calling for the qualifications to abolished.

The proposed matriculation diploma is also viewed by the IOD as having little value as, from the employer's point view, it would simply repeat the information on a CV.

Mr Evans said: "While IoD Sussex supports the Government's desire strengthen the vocational stream, we believe it is important the courses and qualification are demanding and earn the respect of employers and pupils.

"Vocational courses must be properly taught and provisioned if businesses in Sussex are going to compete effectively with those in other European countries, such as Germany where more than 80 per cent of the workforce hold Level Two qualifications and 72 per cent have achieved Level Three.

"Within the UK, the workforce is significantly less qualified, with only 53 per cent having achieved Level Two and only 38 per cent possessing Level Three.

"Creating a matriculation diploma and downgrading the importance of GCSEs does not directly address these deficiencies.

"The emphasis on churning out more graduates is misplaced, as Britain already has one of the highest proportions of 21-year-olds graduating among the advanced industrialised countries."