CONFIDENTIAL NTIAL
of DMAO and Hd Sec (0) (e, is currently preparing a report for the TSSG in early 1990) covering the following:
a.
b.
Policy Objectives for F&C Training.
Pricing policy.
c.
Forecast demand.
d.
Effects of forecast demand on training resource
levels.
e.
The possible involvement of commercial organisations in the provision of F&C training and an explanation is the way in which any recommended charges would aid the achievement of policy objectives.
THE COSTS OF F&C TRAINING
10. The full cost of F&C training is £40-50 million a year.
A rough breakdown of the available figures for the five years to 1988-89, based on memorandum training account data, is at Appendix 2. These sorts of figures, although less than ideal, are the best that can be provided until ERB-based data become available. Some points of explanation are needed:
a. The "cash income" line consists of payments
recovered from customers.
b. The "policy subsidy" line includes UKMTAS, DPF and DSF subsidies for training course charges. The totals do not match the outturn figures for the three funds, principally because the latter also help to subsidize:
c.
(1) The costs of LSP overseas.
(2) Messing and accommodation charges for students
in the UK.
The "balance" line represents in effect a hidden element of subsidy, largely caused by the difference
E-5 CONFIDENTIAL
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