Luke speaks a lot of truth.
FWIW I don't think standards have dropped in the last 20 years that I have been here, I think they have been about the same, but give CASA some credit for introducing competency based training, even though I still get student files from other schools who haven't adopted it yet..!
I only do the occasional (non intergrated) CPL and if they aren't up to scratch then I tell them so. The job market is skewed enough with all the people getting "free flying" ie fee-help.
These days I don't employ any Grade Threes either as the few schools that turned out great instructors have gone and even though I've got 25 years as a CFI I'm not approved to do instructor training unless I go and do 250 hours of it for someone else first. (Also as soon as they get to Grade Two they are poached by the international schools so all that mentoring is a waste of time)
So that is part of the problem, CASA brought in that arbitrary number of hours to be CFI of an instructor school a few years back and stopped some career instructors like me from being allowed to train the next generation of instructors. Hopefully that will change with Part 61.