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Modernisation scheme founders over money

15th May 2003, Page 12
15th May 2003
Page 12
Page 12, 15th May 2003 — Modernisation scheme founders over money
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Which of the following most accurately describes the problem?

Training firms implementing part of the government's £100m Road Haulage Modernisation Fund have said that they can no longer provide the seminars as they have become unprofitable following rule changes.

They say phase one of the Fuel Economy Advisors Scheme allowed training organisations to provide seminars specifically for one company whereas phase two, begun this year, only allows seminars to be conducted with employees from different companies.

However, one training provider claims companies interested in the seminars are reluctant to mix with rivals on the course for fear of imparting commercially sensitive Information, so demand for courses has fallen.

The way payment is calculated has also changed from a set amount per course testes per head, making it harder to break even, This Is decided by Redhill-based Simon Management which controls the scheme on behalf of the Department for Transport and subcontracts the training out.

"The DfT had a mid-term review and didn't think it was getting value for money," says Sean Pargeter, sales director with leatherhead-based EP Training Services.

A Department for Transport source says he Is aware some subcontractors are unhappy but says that the review merely emphasised the terms of the contract in relation to mixedfirm attendances.

'It's a good scheme but one or two training providers saw it as easy money. Their understanding of the first phase is not compliant with the contract with Simon Management. All we did was reaffirm where the goal posts were," says the source.

Representatives from different companies must attend the same seminar, he says, or the DfT would be in breach of EU regulations governing state aid.