Oct 182010
 

I don’t normally comment much on areas that get close to my work, but I can’t keep quiet on this one …

First of all, I should declare a bias and an interest. Not only do I work for a University, but I believe that students should not pay for higher education. Indeed I believe that even under the system prevailing when I went to University in the 1980s, the maintenance grant was less than generous and imposed real hardship on students. Many of which were forced to take on part time work to make ends meet, when a University education is itself a full time occupation. In fact one of my lecturers informed us that whilst the lectures did not cover a full time week, we were expected to be working for a minimum of 40-hours a week.

There is always a lot of whinging from the ill-informed and ignorant about how students are sponging off the state. What such people don’t seem to realise is that students usually become graduates. Graduates in turn usually end up with high-paid jobs – higher paid that they would otherwise get. And people in higher-paid jobs end up paying more in tax over the years; in fact usually far more than the cost of the degree course. Sure there are exceptions; the most obvious one at the moment is that graduates do not always get a higher-paid job immediately in the middle of a recession.

But I’ll pretend that isn’t the case for the rest of this blog entry …

The Brown report (pointing at the executive summary) makes a number of recommendations which seem to try and accomplish several aims :-

  1. Increase funding for Universities; in particular for the top-level Universities which are complaining that they are suffering in comparison with top Universities in other countries.
  2. Whilst retaining the loans system, implement changes to encourage those fearful of getting into debt to come to University.
  3. Implement a market place within the higher education sector.

I am definitely not against the idea of increased funding for Universities, although I am doubtful it will work out well in practice given the government is trying to cut spending at the moment. It is also possible that the money available will remain roughly the same, or slightly less, but will be less “fairly” distributed. This may simply mean the best Universities get more money, and the worst get less … perhaps a lot less, but it could also mean that Universities concentrate on cheap and popular course, to the detriment of expensive but very important courses. For example, Law is one course that could be problematic as it is very expensive to setup to the extent that a University may not be able to justify the initial setup cost given it would require borrowing that may only be paid back very slowly.

And the thought that the worst Universities may get a lot less funding is worrying. Whilst it may seem perfectly reasonable to enforce normal market economics to the higher education sector, what happens to the students studying at a bankrupt University ? In normal circumstances, another University is likely to take over the courses (and the students) and cherry pick the resources in terms of staff and sell off the buildings. In a chaotic funding situation where every University is likely to be watching the bottom line closely ? Who knows ? But it could well be a bit of a train wreck with former students with no qualifications expected to pay back loans for courses they had no chance of finishing!

The idea of encouraging students to participate especially from unprivileged backgrounds is a good one, and the methods used to implement it seem on the face of it to be reasonable. What with assistance for children from less privileged backgrounds, to arrangements whereby loans are repaid only gradually with less well off graduates not necessarily paying anything back, it seems quite well thought out.

But there is still that “loan” word hanging over these students. Their parents will be thinking of trying to pay off the loan for them – and not that many can afford to especially when it comes to a second or third child within 5 years. And of course there is the interest – perfectly reasonable you would think, but what it amounts to is that children from poor families pay less, children from rich families pay less, and children from the middle-classes pay more. This is hardly fair.

What is really needed is to get rid of that “loan” word. Perhaps with the current government which is populated to an extent by the kind of people who rant, rage, and froth at the mouth at any mention of the word “tax”, we cannot suggest a graduate “tax”. But perhaps we could call it something else … a “graduate levy”? The key here is to pull the psychological trick of convincing people that this is not a loan so that people are not discouraged by starting their working life burdened by a huge amount of debt. It would also be seen as far more fair for all graduates to pay according to their ability to pay – no escape for the rich whose parents pay off the debt as soon as they graduate, and no less an escape for the “poor” graduate who starts with bursaries, and ends up in a job 5 years later earning more than the middle-class parents struggling to assist their own children get through University.

Lastly we have the idea of implementing a market place within the higher education sector. Well, I hate to break it to you, but there already is one. It is of course distorted by the government involvement, but I don’t see that changing with the introduction of different levels of tuition fees across the University sector – the government still has a cap on the upper limit fees can be, and all sorts of other ways of controlling the Universities. But yes there is a market of sorts in operation right now. Students choose which courses they want to enroll on, and which Universities they wish to enroll at.

Of course they “pay” at the moment with qualifications. A student with 5 A* grades may well get into Cambridge to study Natural Philosophy; another with 1 E grade may struggle to get into Cesspit-Under-Lye to study the ceiling. Students as a whole tend to go for two things – courses that look easy (although they often get nasty shocks such as History students finding out just how much hard statistics there can be), and courses that look like they may lead to a good pay packet at the end of the course – such as Medicine (a “pay packet” may not be simply of the green folding kind) or Law.

One of the common complaints we get about Universities is that they don’t churn out enough highly qualified engineers, scientists, or graduates with decent IT qualifications. There is a simple reason for that – the perception is that the courses for those degrees are hard (actually all degrees are hard!), and that the payback at the end of the course may not be all that good. Students vote with their feet. If society treats “geeks” like scum, and pays them less than a management degree graduate, it is likely that only the truly dedicated will opt for those courses. If society changed it’s attitude (and perhaps started paying “geeks” a good deal more than the management degree graduates!), then there might well be more IT graduates, electrical engineers, and the like coming out of Universities.

Of course the Brown report has to be seen in the light of a rumoured 79% cut in teaching grant to be announced in this week’s spending cuts.  That could either be a scare figure so we all breath a sigh of relief when we hear the real figure, or there’s going to be blood on the floor. It is possible that the massive cut could be phased in over a number of years as a transition from Universities being funded by a mixture of tuition fees and direct funding by the government, to being funded principally by tuition fees. However given the current need to cut government spending, this could well be rushed, which could well be very detrimental to the University sector.

Indeed one of the fears is that the cuts will be implemented immediately whilst the increase in tuition fees will take some time to implement leading to a chronic short fall in funds for the next year – quite possibly severe enough to see a number of Universities going to the wall. In all probability, if you see more than a tiny handful of Universities fail, a significant number of students will be thrown onto the streets without their degree … or a chance to finish it off.

After all what would happen to most businesses if 79% of their income suddenly vanished ?

It is interesting to see some of the reaction to this sort of news on the BBC … some people out there have some very old-fashioned views. Grouping together some of their views into headings :-

Trendy/Useless Degrees

There are quite a few pointing at degrees they feel are less than useful as being demeaning for all other degrees. Well who decides what is a good or a bad degree ? Perhaps you should let the market decide! What a strange thought.

If a degree is genuinely bad – it is too easy to obtain, and nobody will employ you as a result, not only will the University shut down the course (they themselves have their own reputation to think of), but the students will stop enrolling on such a course over the long term.

Besides, many of the degrees that people point at and laugh, are often the degrees needed for industries of the future – “Games Programming” – have you totted up just how much tax the companies writing computer games contribute ?

In any case, any degree is better than no degree. A degree is a piece of paper telling you that the graduate is capable of learning … and not just by copying notes off a blackboard (I hear they sometimes use whiteboards these days) supervised by a teacher who will lead you to the promised land of a GCSE, but by doing much of the work themselves. Sure there is a lecturer waving his or her arms around, but the student likely to get a better degree is going to be spending a lot of time making sure that lecturer does know what they are talking about and taking in alternate views. Give such a graduate a book and tell them to bugger off and find a better way of fidging widgets, is likely to do exactly that – whatever that might be!

And whilst I’m about it, let’s tackle “vocational degrees”. All degrees are vocational whether you recognise the fact or not – a Philosophy degree is kind of useful to a Philosopher.

Lastly, employers who insist on relevant degrees and then complain there are not enough graduates in that area need to take a good hard look at the possibility of employing graduates who do not have relevant degrees. They could be employed on a sort of training scheme with a review period at the end of a year, or something, but they could well prove to be valuable employees. It is worth pointing out that IBM used to go out of its way to employ highly qualified music graduates because they found that musicians made good computer programmers.

Graduates With Poor English or Numeracy

You know, some people seem to expect newly qualified students to be able to write as well as people who have been writing for decades. Interestingly some of those who complain do not necessarily have the highest skills in this area, although an Internet comments section is perhaps not the next best place to look for good English.

The trouble is people tend to assume that their own level of English has not improved over the years – when they graduated they were as erudite as they are now. They will usually get a nasty shock if they actually look at some of their earlier writing. I had the opportunity to do so a few months ago and I still wake up in a cold sweat at night. In fact if you manage to get hold of an older professional writer (and I’m thinking of writers of a particular genre of entertainment writing – no, I meant Science Fiction), and ply them with enough alcohol, you may very well find that they will admit that their earlier writing is something they would dearly love to “improve” a little bit. Certainly I’ve seen collections of short stories where an older and wiser writer has admitted that the earliest of their writing has a number of faults.

In short, don’t expect recent graduates to have the writing skills of Ernest Hemingway.

Foreign Students

Bizarrely enough there are actually some people who think that foreign students take away places or money from domestic students.

They usually pay the full whack in terms of fees – no helpful government putting a cap on the maximum fee that can be charged.

And they certainly don’t take away places for domestic students. It’s the government that places limits on the number of domestic students a University can take.

It is quite possible that there are courses out there that only exist for domestic students because of the foreign students that have enrolled on that same course.

We Only Need The Top 5% Anyway

There are those who say that there are far too many students and we can very easily save money by telling most of them to sod off and join the queue for unemployment benefit. Sorry, make that social security.

In a 19th century economy, it is certainly true that only a very small number of people need to be educated to a high degree. We can screw the rest of them with low-paid jobs and sack them when things get a little rough. Unfortunately, there are other countries that are better at cutting salaries than we are so trying to complete with economies that can employ people for $5 a day and still get a decent product at the end of it is pretty hopeless. If we want to maintain a decent standard of living we need to concentrate on areas where high-salaries are not a significant problem; such as knowledge based industries.

To do that we need a very educated work force, where nobody who is capable of being educated is left behind to maintain some archaic notion of who can and cannot receive education. Maintaining that archaic notion is likely to be far too expensive in the long term, as we need that educated work force to ensure that we have a pension in years to come.

In essence, we cannot afford not to pay through the nose for a decent education system.

Students Are Layabouts Getting Drunk On Our Money

Every night of the week in a University town you will find students out on the town getting drunk. Actually you will find young (and some not quite so young) people out on the town getting drunk. Not all of those drunk people are students, and even those that are, are not necessarily the same ones as were drinking last night.

And despite popular opinion, I can tell you from personal experience that the amount of drinking drops off dramatically after the first couple of weeks of term. I can tell this because the amount of noise at 4am is proportional to the amount of drinking, and I’m very familiar with the amount of noise at 4am. In fact some of the rowdiest drinkers around here are the middle-aged drunkards busy condemning those drunken students!

Sep 262010
 

Yesterday we heard the news that the new leader of the Labour party is Ed Millband – and congratulations to him. Ever since then we have had the media rambling on with the same old theme – more or less “but … but … it was the undemocratic unions who voted him in”.

So? It is not as if the Labour party has some sort of secret democratic process that changes every five minutes; the union vote was known well in advance, yet we heard no complaints before the result. Sometimes it feels as if the media look for any possible note of negativity in any news. Why not portray the news for once, and look at what difference Ed may make ?

There are undoubtedly Labour party members a bit suspicious of the influence of the Unions – after all it is hardly every party that allows people outside the membership of the party to vote. But why not ? The Labour party is supposed to reflect the interests of the working man and woman, so shouldn’t their representatives have an influence on the leadership ?

Sometimes the media gives us the impression that political parties need to have free and fair elections to select their leaders. Nothing could be further from the truth. A political party is effectively a private members club who put up their members for election whenever the opportunity presents itself (if funds and inclination are available).

Excluding the Liberal Democrats who have had a more chaotic life over the last 50 years, the Tories had their first leadership election in 1965 (over 100 years after their first government), and the Labour party had their first leadership election in 1922 some time after their formation. Indeed the only voters at those elections were the MPs of the respective parties!

The Labour party is unusual in allowing the unions to vote … or more accurately, the members of those unions. If they choose to do so, who are we (as non-members) to say it is wrong ? If you feel it is wrong, join the party and campaign for change.

And lets have a few less curmudgeons in the media please!

Aug 172010
 

The government have announced that they plan to ban clamping cars who park illegally in the new year. The excuse is that “rogue” clampers are endemic to the industry and despite a number of attempts at cleaning up the industry, they survive. Of course anyone who has been clamped is celebrating.

But is it really a good thing?

We have heard on the news from clampers and victims of clamping, but we have not heard from anyone who employs clampers to protect their property. And it is not always evil people who see a money-making opportunity. Sometimes there are good reasons to protect against illegal parking.

Many people perhaps do not realise just how aggravating and potentially dangerous illegal parking can be. Taking an extreme at the low end where clamping currently is not employed (but should be!), my flat is in a block which has a small narrow courtyard behind the building which is open to the road.

There are admittedly no notices up to indicate that parking is illegal, but you would have to be really dumb not to realise that it is private property. Parking there not only means that the council frequently finds it difficult to collect the rubbish, but the area is supposed to be kept clear as it is a fire exit and access for fire engines in the event of a fire. People parking there put the resident’s lives at risk.

Do they care ? Don’t make me laugh. On almost every day, there will be two or three cars parked there.

Jun 252010
 

Well we have had the emergency budget and one of the announcements was a two year public sector pay “freeze”. Of course in reality it is a pay cut because of inflation. Of course if politicians were a little more honest they would actually announce it as a pay cut by freezing cost of living increases; one minor sign of improvement was when the prime minister admitted afterwards on a debate with the public that it was actually a pay cut. After all in the past, politicians have blindly and foolishly proclaimed that a pay freeze was not a pay cut at all.

For those that doubt that it is a pay cut, take a hypothetical public sector worker who earns £20,000 a year and who spends every pound on buying a £1 loaf of bread. This is of course ridiculous, but makes the arithmetic easier. Now let us assume that the current UK inflation rate is 3% (it’s actually a smidgen higher) and stays that way.

In the first year our hypothetical worker can buy 20,000 loaves of bread.

In the second year, the price of a loaf increases by 3% to £1 * 1.03 or £1.03. Because our worker has not had a pay increase, he can now afford just 20,000 / 1.03 loaves of break … 19,417 loaves of bread. In the third year, the bread goes up yet again to £1.06 and the number of loaves our worker can buy drops again to 18,867.

In a very real sense the value of the work that our worker does for the public is being nibbled away year by year. And don’t forget that it lasts until the cost of living increases above inflation eventually restore the value. Sure our worker still gets £20,000 a year, but the value in money is not the in the symbol printed on the bank note, but in what it can be exchanged for.

Whilst the government has plenty of reasons to reduce government expenditure and reducing the total public sector pay bill is perfectly reasonable, the way it was done is a little old-fashioned. One of the noticeable things about the similar efforts in the private sector in this recession as compared with previous recessions has been the amount of negotiation involved. More enlightened managers have negotiated with the workers to find a mutually least disagreeable way of reducing the cost of salaries.

Sometimes this has meant a number of voluntary redundancies; sometimes a cut in the hours worked with an associated pay cut, and sometimes it has been a simple pay cut. Or a combination of all three.

Why hasn’t the government tried a similar path with the public sector workers ? After all, these things can be negotiated. One obvious compromise is to not only freeze the pay, but also to reduce the standard working week every year by the amount of inflation. This is still a pay cut, but at least values the work of the public sector worker the same – it gives the public sector worker something in exchange for less pay – a shorter working week.

By imposing this pay cut without negotiation, the government is behaving like an old-fashioned tyrannical employer who treats their workers like wage slaves.

And where does this idea that all public sector workers get gold-plated pensions from ? Sure many get final salary pensions which in the majority of the cases is not a spectacular amount. Despite the demonising propaganda floating around in the press, most public sector workers do not earn immensely large salaries; on a personal note, I earn roughly half what my brother earns for roughly the same job – and that excludes his yearly profit bonus.

Fact is that the private sector has slowly been dropping final salary pension schemes for years without any great reflection on whether this is necessary to ensure pensions are affordable, or whether this is a means to ensure fatter profits for the fat cats. And yet still there are a significant number of private sector firms that offer final salary pensions.

The targeting of public sector pension schemes by the right-wing fascists is little more than playing up to the insecurities of private sector workers who have been deprived of their final salary pension schemes.

As someone mentioned on a TV debate on the increase of the pension age to 66 in 2016, we not only need a review of government provision of pensions (to both the workers in general and the public sector workers), but we also need a review of how pensions are paid for in the private sector. We are a richer society now than we were 20 years ago, but pensions are less generous.

Is this simply because people are living longer than they used to, so pensions cost more ? Or is there something else at work ?

In dealing with pensions, I have more questions than answers but it needs some serious thought about how pensions can be paid for. Can we as a society really not afford to pay pensioners a decent pension ? We have a belief that the wealth created by private sector workers belongs to the entrepreneurs who risked everything on setting up a company. But all too often these entrepreneurs are merely managers of very large companies that are risking very little. That is not to say that genuine entrepreneurs do not exist, but the assumption that every head of a company is an entrepreneur is wrong; indeed the ones who earn the most are rarely the ones who risk much.

This is beginning to sound like I am in favour of some kind of old-fashioned hard left socialist state. Not at all, but the belief that the free market can solve everything is just as foolish a belief.

May 112010
 

There are those who claim that the possibility of the Tories and the Liberals combining into a coalition, or worse Labour and the Liberals combining into a coalition is undemocratic because it would not be what the public has voted for.

Perhaps, but it is no less democratic than a parliament with a clear majority. We do not have right to select the Prime Minister, just our representative in parliament. We expect our representative to vote for (actually technically it’s not vote against) the leader of his or her party. It is interesting to note that there is nothing in our system that allows for MPs changing parties – if you voted for a Labour party candidate, he gets elected and then immediately joins the Tory party, there is nothing to be done – your representative has been chosen even if you do not agree with his defection!

In reality, it is the elected MPs who decide who the Prime Minister is to be. What effectively happens is that the Queen (or King) selects a candidate Prime Minister. Although the Queen could pick whatever MP she wants as Prime Minister, in practice she selects the obvious choice – basically the leader of the majority party (or coalition). The Prime Minister then takes a “Queen’s Speech” to parliament and the MPs either vote in favour, or against – in which case the Prime Minister basically isn’t accepted by parliament so has to resign and force another election.

The key worry of those who claim that we could end up with an undemocratic result is with the possibility of a Labour-Liberal coalition – a “coalition of the defeated” – forming the next government. Is this fair ?

If you put add together the Labour, Liberal and nationalist MPs, they more than outnumber the Tory MPs, so even under our current electoral system, the hypothetical Labour-Liberal coalition is actually more representative of the will of the people than a Tory government.

After all, all the major parties have lost this election – Labour, Liberals, and Tories. The Tories have the largest number of MPs but not a majority. They cannot claim to have won this election any more than Labour can, because under our system “winning” is effectively having more than 326 MPs. And they do not.

If we end up with any coalition, it will be a coalition of the defeated. And yes the possible Tory-Liberal coalition is just as much a coalition of the defeated as a Labour-Liberal coalition would be.