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School denies "milking"

12th August 1993
Page 4
Page 4, 12th August 1993 — School denies "milking"
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Which of the following most accurately describes the problem?

• The Labour Party says it has obtained evidence from the managing director of an LGV driver and automotive engineer training school which, it says, shows the company unfairly claimed Government bonuses.

Astra Training Services, regularly used by BRS, denies that the letter from its managing director to shadow employment minister Frank Dobson is evidence that it was unfairly milking Government cash.

The company says the Government bonus scheme itself, which rewards training organisations for the numbers of trainees placed in employment, could be at fault.

The letter, sent to Dobson on 30 July, confirms that bonuses were claimed for 25 Astra trainees employed temporarily within the company between April and June this year.

But the company says: "Jobs are not being created solely for the purposes of obtaining outputrelated payments."

The allegations could further threaten Astra's national training contracts with hauliers: they were thrown into doubt by its receivership (CM29 July-4 August).


Organisations: Labour Party
People: Frank Dobson

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