CONFIDENTIAL

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Arguments

4.

There is no provision as to the number of phases in which the BNS should operate.

For the following reasons, it is recommended that the Scheme should be implemented in no more than 2 phases :-

(a) Small number of places left

Some 39,500 places will have been taken up by the end of the first phase. Among the remainder of 10,500 places, about 7,200 are for the GOC and 850 for the DSC. These would account for only 1 to 2% of the people covered by these two classes. Because of the small size of quotas, it would not be meaningful and economical from the operational point of view if the Scheme operates in more than 2 phases.

(b) No tranching for the EC and the SSC

As mentioned before, the EC is not subject to tranching. Strictly speaking, there should be no tranches for the SSC either which, unlike the GOC and the DSC, is not points-driven. The quota specified in the Secretary of State's direction serves no other purpose than reserving a number of places under the SSC for people who are expected to take up sensitive positions in the government or who would find themselves vulnerable only nearer 1997. As far as the first phase is concerned, it is always possible to go round the SSC quota set out in the direction by issuing invitation letters or making recommendations after the specified period. The operation of the SSC or the EC has no real bearing on the determination of phases for the Scheme.

CONFIDENTIAL

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