What an interesting thread! 15 to 20 years ago there was a great push for PAYD. All the 'livers-in' suggested that this was going to be the greatest thing since sliced bread. Those of us that were trying to 'hold the line' were slammed as being 'old fogies' completely out of touch with what the modern RAF needed.
Funny old thing how things tend to come full circle. You are now at the half way point where you have got (eventually) what was wanted. You will now have a long way to go (if ever) before it gets back to some reasonable service and quality of life. Old Chinese curse - may you get what you want!
In the wider picture - contracting out won't work. What happens when there is an overriding national interest type situation? Will the contractors continue to fulfill their obligations? Trenchard had the right idea with the contraction of the 1920s. Contract (ie, downsize) by all means but retain a nucleus of each branch so that when expansion comes (which it will eventually - Bliar can't last for ever) each branch has the instructors it needs to rapidly expand. Right now the Armed Forces are losing expertise which cannot be replaced and is not being passed on.
I dare say that this is totally wasted on some of the feckwits that are now up at the top (all sqn ldrs when I was in - and some of them I wouldn't give you tuppence for). So, Good Morning CAS, read and inwardly digest. Ignore history at your peril.