In confidence

Direct teaching operations: global performance and forecasts All financial figures in £ million

1987/88 1988/89

Turnover

22.40

CP2 figures

22.40

25.30

24.40

1989/90 1990/91 1991/92 1992/93 1993/94

29.80 34.30 37.40 40.20 42.60

27.20 28.90 30.80 32.70

Trading surplus

4.00

5.20

6.20 7.20

7.80 8.80

9.70

CP2 figures

4.00

5.00

6.00

6.70

7.30 7.70

Net surplus

1.10

2.20

3.00

3.50

4.00

4.10

4.60

CP2 figures

1.07

1.84

2.70

2.90

3.20

3.40

Net surplus as % of turnover CP2 figures

4.79% 8.75%

4.80%

7.50%

10.12% 10.15% 10.78% 10.24% 10.75%

9.90% 10.00% 10.40% 10.40%

Note: from 1990/91, CP3 figures at 1990/91 cash prices fixed at July 1989 exchange rates; CP2 figures at 1989/90 cash prices.

Table 11

10.6 The accelerated provision of ELT in Eastern Europe will be both a catalyst for change and a means of making British know-how assistance effective. Some of the constraints on direct teaching are now lifting and there is talk of convertible currencies. Although plans for Eastern Europe are not currently compatible with the business remit for DTE, as almost certainly Eastern European centres will require subsidy, the Council is taking a long-term view of the business potential. As a pilot project, the first DTE will be in Hungary in 1990/91; investment funds of £0.5 million have been committed from CMDT's investment reserves for this. At least one other East European centre should be established by 1994; the next priorities would be Berlin and Prague.

10.7 Other plans cover a major project for the installation of new IT systems for registration records and spreadsheet planning applications. They include expansion in southern Europe, including Spain where demand is strongest and where much of the business risk is taken by joint- venture partners, and the exploration of new approaches to language centres in north Europe. Steps will be taken to increase the supply of qualified professional staff to meet the needs of the network, through sponsored training of existing and potential DTO teachers.

Principal effectiveness measures for DTE

amount invested in new DTOS

net surplus per annum as % of total turnover

• number of DTOs which are in trading deficit

three years after start-up

• student numbers in Eastern Europe.

English language and literature promotion and support

10.8 This activity is mainly funded from the government grant and conducted by professional staff overseas and at headquarters, working in collaboration with public and private sectors. The Council provides services for ODA, supporting, through the aid programme, the language teaching programmes of host countries in the developing world and managing over 130 English language projects. The particular challenges for language and literature work during the triennium include:

• relocation of headquarters services in 1991

⚫ revision of procedures for managing EL projects on a contract rather than an agency basis

• response to new demands for English as a result of political change, particularly in Europe ⚫ collaboration with public and private sector in increasing the global market share for British ELT services.

10.9 With the aim of supporting promotion of the English language, and of stimulating a wider knowledge and appreciation of English literature, principal objectives are:

• to secure the Council's management of aid- funded ELT projects

⚫ to increase the demand for British exam- inations in English as a foreign language (EFL)

• to devise and implement a strategy for British English language services in the EC and Eastern

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