Tinstaafl, thanks for your input as I am getting 2nd hand info from the States. As you said, in the US a lot more people hold IRs, especially at PPL level and this is usually SE.
I appreciate that CFIIs must hold an IR but there's nothing to stop someone only holding CFI and not teaching IR, although that is probably unusual.
As I said they progress onto the airlines or whatever because it is obvious in this economic climate that many are unable to do so, judging from the numbers of instructors holding onto flight school instead of moving up.