TNAG-2077-FCO40-2957-Hong-Kong-culture-1990 — Page 126

In confidence

re

Agency

14.7 The Council aims to secure a substantial share of agency markets for educational and cultural services overseas. Figure 16 reflects assumptions about market growth and

projections of the market share to be achieved by the Council. The different rates of growth reflect business objectives that are described elsewhere in the Plan.

Sponsorship

―

14.8 Having more than doubled business sponsorship in 1989/90, the Council is well on course to achieve its target a 25% increase in the real value of sponsorship each year, so that it rises to £4 million, at 1988/89 prices, by 1992/93. It is premature, at this stage, to predict the rate of growth in sponsorship beyond 1992/93. Approximately 70% of sponsorship is received in cash as agency funds and 30% is provided in kind; two-thirds of all sponsorship is negotiated by Representatives overseas.

Cost-sharing

14.9 The Council is committed to enhancing the value it secures from the government grant by sharing the cost of its activities both through business sponsorship and through co-financing with private individuals and public-sector bodies at home and overseas. Co-financing, like sponsorship in kind, is not British Council income and is not easy to monitor because it does not

pass through the Council's accounts. During 1991/92, the Council will assess the costs and benefits of collecting data on the total amount of cost-sharing (sponsorship and co-financing) that its programmes attract.

Government grants

14.10 The amount by which the government's uplift factor (2.5% for risen costs) will fall short of actual inflation experienced by the Council is forecast as £4.9 million in 1991/92, £2.9 million in 1992/93 and £2.3 million in 1993/94 a total of £10.1 million by the end of the triennium. This forecast is based on assumptions about the future rate of UK price and salary inflation (including the Chancellor's budget statement in March 1990) and on assumptions about future compensation for the effects of overseas inflation and exchange rates on overseas budgets. It assumes no additional provision from government for exceptional risen costs beyond the recurrent £3 million awarded from 1990/91.

14.11 Figure 18 illustrates the difficulties of planning for deployment of the grant-in-aid. It shows:

⚫ the forecast made in CP1

⚫ the CP3 forecast, reflecting increases in the grant in 1989/90 and 1990/91 and cash limiting during the triennium, as in tables 1 and 17

• CP3 plans: the level of grant required from 1991/92 onwards, to compensate for exceptional

£ thousand

Sponsorship by region and activity

1989/90

1,491

900

800

700

600

500

400

300

200

100

0

Western Europe

Americas

Arts

Asia Pacific

UK/HQ

English language

and literature

Libraries, books

and information

Middle East and North Africa

Figure 17

Africa

South Asia

Eastern Europe

Interchange of people

Science

and education

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