low at the start of the new session, according to a secret College report.

And only one student has signed up for the Best Steps programme, designed to improve basic skills so students can continue into higher education -- compared to 40 last year.

The report -- prepared for College bosses and leaked to The Royal Gazette -- said just 158 students are lined up out of 262 applications received by mid-May to begin courses at the Stonington Campus in the autumn.

The shock news comes on the eve of the launch of the College's 25th anniversary celebrations.

And last night a College insider said: "Things are looking pretty bleak for this year -- and for next year and 2002.

"The only year numbers were boosted was the year they relaxed standards.

"And that was a mistake -- we took in a lot of people who dropped out later.'' There were a total of 608 admissions in 1998 out of more than 680 applications and 582 successful applicants out of 704 hopefuls in 1997.

And, in a summary of 1998, the report admitted a four percent drop in applicants from 1997 -- which was boosted by dropping the entrance standards.

The insider said: "I think part of it could be the birthrate -- a natural decline.

"But part of it is that we are not attracting the calibre of student who can really compete at the College with these relaxed standards.

"The parents of students with ability are opting out rather than have their children come here.'' The insider added: "It was an ill-conceived strategy to lower standards and the first thing we need to do is reverse it and to be honest instead of trying to sell an untruth to the media and the public.'' And she questioned massive investment in the College -- like proposed halls of residence -- when student numbers appeared to be on the decline.

The report added that there had been a drop in applications from both schools and further education courses, as well as private schools.

The report said: "The number of applicants and the number of students offered admission from the private school sector declined this academic year.'' Private schools put up 71 potential students in 1998, with 69 being accepted, compared to 87 applicants in 1997 and 75 admissions.

The report added: "This represents a decrease of eight percent in the number of applicants offered admission from the private school sector.'' And the report stated: "The private school sector continues to be a difficult population from which to recruit, particularly with increased competition from overseas institutions and the ease at which students can take advantage of the opportunity to study abroad.'' College bosses last night did not immediately respond to questions faxed to them.