Clubs call for more cash

"Having come from football I know what can happen if the problem isn't addressed," he said. "Going for a foreign player is often the easy option. It's taken a long time to get to the £2m compensation, but I see that as a starting point and it's something that the clubs need to look at."

Under the new scheme, Wasps pocketed £230,000 when the EPS was named, but that has now dropped following Lawrence Dallaglio's decision to quit Test rugby and the axing of Matt Dawson. While Wasps are no longer entitled to the £30,000 for Dallaglio, they expect to receive £15,000 as Dawson was named in the squad and then removed by the RFU. "By getting Lawrence back, we are no longer entitled to the £30,000 but it means our gates will be higher with him in the side," Davies added. "Lawrence and Matt not playing for England is good for Wasps."

The relief could prove temporary, however. With so many non-Englishqualified scrum-halves in the Premiership, Davies believes Dawson could soon be back in an England shirt.

He said: "I take a sceptical view, one that says this was a case of a new headmaster (Andy Robinson) making an example of a naughty boy (Dawson) and with the scrum-half cupboard so bare I am sure prudence will take over."

The percentage of English-qualified players in each of the 12 Premiership clubs varies dramatically, with Wasps boasting 30 from their 37-strong squad while Northampton have just 14 in a squad of

30. The latter side includes six New Zealanders, five South Africans, three Australians, two Scots and one Irishman.

The RFU are concerned about the problem and plan a review of the regulations that allow players to arrive mid-season on shortterm contracts from the Southern Hemisphere, a practice that is used to bolster squads that have not started the season well.

Chris Spice, the RFU's performance director, said: "The whole question of players on short-term contracts is something we will have to review because we weren't able to deal with that before this season started."

A total of 68 countries - including the rugby strongholds of South Africa, Samoa, Tonga and Fiji - are covered by a special agreement with the EU which means they do not require the same kind of work permits necessary for Australian and New Zealand players.

"Maybe the problem is not solvable," said Spice. "We are different from football and that is why increasing compensation is the route we have taken."