10 lies we're told about welfare

Has someone made Jim Royle a policy adviser? Millions are being made poorer while we're fobbed off with porkies

• 
• • Ricky Tomlinson
  • guardian.co.uk, Tuesday 2 April 2013 14.47 BST

Protesters against the proposed 'bedroom tax' gather outside Downing Street in London. Photograph: Matthew Lloyd/Getty Images

Welfare reform, my arse. Has Jim Royle parked his chair, feet up, telly on, in the corridors between the Treasury and the Department for Work and Pensions? Employing him as adviser can be the only explanation for the utter rubbish that boils forth from this government on welfare.

Who else could have dreamed up the bedroom tax, a policy so stupid it forces people to leave their homes and drag themselves around the country in search of nonexistent one-bedroom flats?

That one has to be the result of too many hours in front of Jeremy Kyle (no offence) with the heating on full and a can of super-strength lager. It seems as if that is how this government views ordinary people: feckless and useless – poor, because they brought it on themselves, deliberately.

Maybe the cabinet is confused. Twenty-three millionaires in the one room can get like that. But do you know what, enough. Let's call this government's welfare policy what it is – wrong, nasty and dishonest.

Off the top of my head, I can list 10 porkies they are spinning to justify the latest stage of their attack on our 70-year-old welfare state.

1. Benefits are too generous

Really? Could you live on £53 a week as Iain Duncan Smith is claiming he could if he had to? Then imagine handing back 14% of this because the government deems you have a "spare room". Could you find the money to pay towards council tax and still afford to eat at the end of the week?

2. Benefits are going up

They're not. A 1% "uprating" cap is really a cut. Inflation is at least 2.7% . Essentials like food, fuel and transport are all up by at least that, in many cases far more. Benefits are quickly falling behind the cost of living.

3. Jobs are out there, if people look

Where? Unemployment rose last month and is at 2.5 million, with one million youngsters out of work. When Costa Coffee advertised eight jobs, 1,701 applied.

4. The bedroom tax won't hit army families or foster carers

Yes it will. Perhaps most cruel of all, the tax will not apply to foster families who look after one kid. If you foster siblings, then tough. But these kids are often the hardest to place. Thanks to George Osborne and IDS, their chances just got worse. And even if your son or daughter is in barracks in Afghanistan, then don't expect peace of mind as the government still has to come clean on plans for their bedroom.

5. Social tenants can downsize

Really, where? Councils sold their properties – and Osborne wants them to sell what's left. Housing associations built for families. In Hull, there are 5,500 people told to chase 70 one-bedroom properties.

6. Housing benefit is the problem

In fact it's rental costs. Private rents shot up by an average of £300 last year. No wonder 5 million people need housing benefits, but they don't keep a penny. It all goes to landlords. 

7. Claimants are pulling a fast one

No. Less than 1% of the welfare budget is lost to fraud. But tax avoidance and evasion is estimated to run to £120bn.

8. It's those teenage single mums

An easy target. Yet only 2% of single mums are teenagers. And most single mums, at least 59%, work.

9. We're doing this for the next generation

No you're not. The government's admitted at least 200,000 more children will be pushed deeper into poverty because of the welfare changes.

10. Welfare reforms are just about benefit cuts

Wrong. The attack on our welfare state is hitting a whole range of services – privatising the NHS, winding up legal aid for people in debt and closing SureStart centres and libraries. All this will make life poorer for every community.

Some call these myths. I call them lies. We are being told lies about who caused this crisis and lied to about the best way out of it. But I know one thing to be true: this government's polices will make millions of people poorer and more afraid. To do that when you do not have to, when there are other options, is obscene. That's why I'm backing union Unite'sOurWelfareWorks campaign in its efforts to help highlight the truth about our welfare state.

Cricket: Umpiring Decisions should be based on Facts not Opinions

Girish Menon

Should match officials base their decisions on facts or opinions? In football a referee is not required to declare a goal based purely on his opinion. However in cricket an umpire could end a batsman's tenure at the crease based on a conjecture of what would have been if the ball had not been illegally impeded by the batsman. Yes I refer to the LBW decision, an odd method of dismissing a batsman that relies entirely on the forecasting ability of the umpire or the more modern DRS technology.

In football if a defender stops the ball's progress towards the goal using his hands the referee does not have to adjudicate on what would have happened to the ball if the defender had not stopped it illegally. The errant footballer maybe punished with a red card and a penalty given to the opposite side but a goal is never declared. In other words at no time is a referee asked to base his decision on what would have been if the footballer had not stopped the ball with his hands.

A batsman illegally impeding a cricket ball is cricket's equivalent of a handball. However unlike football a cricket umpire can award a 'goal' to the opposing side for this 'foul' by the batsman. i.e. he can declare a batsman out lbw for illegally impeding the ball.

 It is this writer's opinion that all umpiring decisions should be based on facts and not opinions. The LBW decision, with or without DRS technology, can at best be only called an opinion or a value judgement. And the problem with opinions is that they may not be shared by everyone. Currently an LBW decision involves the human umpire or DRS to forecast what would have happened if the ball had not been illegally impeded. Since, 'forecasting is difficult, especially about the future' would cricket not be better off if it based its decisions on facts instead of opinions?

As for the 'cheat', the batsman who deliberately impedes a ball's progress illegally, one can find other methods of punishing him and his team. But declaring a 'goal' based on opinion should not be the way forward for a modern game.

Related Posts

1. Cricket, Physics and the Laws of Probability

2. Abolish the LBW - it has no place in the modern world

Novartis loses landmark patent case in India

India’s Supreme Court dealt a significant blow to Western drugs firms on Monday when it rejected an application by the Swiss pharmaceutical company Novartis to patent an anti-cancer drug.

Until recently patent and intellectual property disputes have been limited to HIV drugs as campaigners have accused Western firms of profiteering while poor patients in developing countries die. The Novartis ruling however marks a widening of the conflict to other proprietory drugs. Photo: Alamy

By Dean Nelson, in New Delhi

1:51PM BST 01 Apr 2013

22 Comments

The company said the decision raised serious, wider implications for the industry and reflected India’s ‘growing non-recognition’ of intellectual property.

Its ruling, however, was hailed by campaigners and Indian pharmaceutical firms as a victory for the country’s poor who cannot afford expensive Western medicines. Indian drug firms sell generic versions of Western drugs for up to one tenth of the price.

India’s trade minister Anand Sharma yesterday hailed the decision as an “historic judgment” which reinforced Indian laws preventing companies from extending patent protection unfairly by minor tweaks to their products, a process known in India as ‘ever-greening. Y.K Hamied, chairman of Cipla, one of India’s largest generic drugs companies, said the ruling will “pave the way for affordable medicines in India.”

Novartis however yesterday warned the ruling will discourage expensive investment in new drug treatments. The decision “provides clarification on Indian patent law and discourages innovative drug discovery essential to advancing medical science for patient," it said in a statement.

“The primary concern of this case was with India's growing non-recognition of intellectual property rights that sustain research and development for innovative medicines. As a leader in both innovative and generic medicines, Novartis strongly supports the contribution of generics to improving public health once drug patents expire,” it added.

The company had applied for a patent for a new tablet version of its anti-cancer drug Glivec, which had taken years to develop, it said. The Supreme Court however ruled that the tablet did not amount to an advance sufficient to merit a patent. Around 16,000 Indian cancer patients use Novartis' Glivec - 95 per cent free of charge, the company said, while an estimated 300,000 use cheaper Indfan versions.

Until recently patent and intellectual property disputes have been limited to HIV drugs as campaigners have accused Western firms of profiteering while poor patients in developing countries die.

The Novartis ruling however marks a widening of the conflict to other proprietory drugs. Merck, the US-based drugs company is facing a dispute with the Indian pharmaceutical firm Glenmark which has launched a generic version of its diabetes drug Januvia which is almost a third cheaper.

“It's all about interpretation of section 3(d) of the Indian Patent Act,” said Ran Chakrabarti, a commercial lawyer based in New Delhi.

“Essentially, it says that you can't tweak something that already exists and then patent it, if it doesn't enhance the known efficacy of that thing, or result in a new product. No doubt lawyers will have spent a lot of time pouring over the meaning of 'enhance', 'efficacy' and 'new product', but it looks as if the Supreme Court has ruled that this is old wine in a new bottle.

"Drug companies are going to have to come up with something pretty unique to get patent protection, and while that's good news for consumers, it pushes the threshold for innovation northwards,” he added.

------

A Just Order

Editorial in The Hindu

The Supreme Court order rejecting a plea to grant patent protection for Glivec, a cancer-fighting drug from Novartis, is a landmark. It will greatly strengthen the quest for access to affordable medicines in India. The decision affirms the idea that a patent regime loses its social relevance when a drug is priced beyond the reach of the vast majority of a country’s people. That pharmaceutical companies employ high pricing to limit the number of beneficiaries of “blockbuster” patented molecules and even older “evergreened” medicines is an irony, because making additional copies of a drug is not expensive. On the other hand, cost control and dispensing of essential medications in government-run health facilities is affected, because many States have no centralised procurement system. It is unsurprising, therefore, that less than 10 per cent of medicines sold in India are under patent, while the vast majority are branded generics. The court order should prompt producers of patented drugs to move towards liberal licensing and low cost manufacture in India, the pharmacy of the South that produces Rs.100,000 crore worth of medicines annually and sells nearly two thirds within the country. It is a matter of concern that at least a dozen pharmaceutical innovations used in the treatment of cancer, HIV/AIDS, and Hepatitis B and C are not affordable to even the upper middle classes, and impossible to access for the poor.

It would be a gross distortion to paint the Glivec order, which follows the compulsory licensing of Bayer’s drug Nexavar, as an innovation killer. There is evidence to show that major pharma companies recover more than the cost of innovation of a drug in a single year from the United States market alone. Moreover, the costing done by industry has come in for criticism from scientists and policymakers on the grounds that the bloated, irrelevant investments of recent decades are used as the baseline to make calculations. It should not, as the industry claims, cost a billion dollars (and take a dozen years) to produce a new drug; the informed estimate is a third of that figure. The contested field of drug discovery now calls for greater scrutiny of costs and therapeutic value, and control of prices through various legal avenues available under the Indian Patents Act and the Trade-Related Aspects of Intellectual Property Rights as confirmed by the Doha Declaration. It would naturally strengthen the case for grant of patents and consensus pricing, if the industry opens its books for verification. Until the golden mean is reached, governments with vast populations that are denied access to medicines due to economic reasons can justifiably use unilateral price control mechanisms.

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Calling big pharma’s bluff

 e

DWIJEN RANGNEKAR in the hindu

   

 

The lesson from the Supreme Court ruling on Gleevec is that pharmaceutical multinational corporations need to focus research on genuine innovations rather than on ways to evergreen their patents

The much awaited Supreme Court judgment on Gleevec has been delivered. Novartis has failed in reversing the rejection of its patent. And, predictably — like a scratched record — there have been suggestions that pharma investments in India will dry up and take flight to China. At each twist of this case, Novartis has produced such bluster. We need to pay attention to the judgment as it is a nuanced handling of difficult questions concerning a hastily drafted section — Section 3(d) of the Indian Patents Act, which allows new forms of existing drug formulations to be patented only if they result in increased efficacy. The judgment adopts a gentle caution in parsing out Section 3(d); yet, it is firm in reading 3(d) as a “second tier of qualifying standards” for patentability. Further, the judgment also stands out by reprimanding the “artful drafting” of patent applications adopted by big pharma.

CHRONOLOGY

To begin, it is useful to draw out some of the chronology concerning Gleevec that the judgment reveals. The story of the patent begins with Jurg Zimmerman’s invention of derivatives of N-phenyl-2- pyrimidine-amine, one of which in freebase form was called “Imatinib,” and together constituted a U.S. patent application (no. 5,521,184) granted on May 28, 1996 (which, the judgment terms “the Zimmermann Patent”). Subsequently, a European patent was also acquired. Later, a patent application was filed for the beta crystalline form of Imatinib Mesylate (the subject in dispute) in January 2000. Initially rejected, the patent was awarded in May 2005 following Novartis’s appeal to a U.S. appellate court. What is interesting is that the filings for new drug approval, submitted in April 1998, was for Gleevec, and a filing for original drug approval in February 2001 was for Imatinib Mesylate. Confusing as this may seem, the judgment highlights this to establish that Imatinib Mesylate was covered by the Zimmerman patent and that Gleevec was its market name. Any remaining doubt, the judgment notes, is extinguished by the application for patent term extension: “This application leaves no room for doubt that Imatinib Mesylate, marketed under the name Gleevec, was submitted for drug approval as covered by the Zimmermann patent.”

CONTEXT

One of the useful aspects of the judgment is in distilling the significance of “context” in giving meaning to statute. Early on, it notes that to understand the import of the various amendments introduced in the third amendment to the Patent Act, 1970 — to come into full compliance with TRIPS — it is “necessary to find out the concerns of Parliament … What was the mischief Parliament wanted to check and what were the objects it intended to achieve through these amendments?” In this respect, the judgment recalls not only the heated Parliamentary debate, but also the concerns of public health practitioners the world over, and of public statements and petitions from U.N. agencies and civil society organisations. With India being the leading global supplier of bulk drugs, formulations and generic Antiretrovirals (ARV), the global concerns layered domestic worries about affordability of drugs.

Evidence in a widely cited study by the National Institute of Health Care Management, Changing Patterns of Pharmaceutical Innovation, is telling. Between 1989 and 2000, the U.S. Food and Drug Authority approved 1,035 new drug applications — of these, 65 per cent contained active ingredients that were already on the market (i.e. incrementally modified drugs), 11 per cent were identical and only 15 per cent were considered a “highly innovative drug.” Mischief like this results in a patent thicket around a single molecule to delay generic entry which Section 3(d) seeks to avoid. Consequently, the Supreme Court heralds Section 3(d) as a “second tier of qualifying standards for chemical substances/pharmaceutical products in order to leave the door open for true and genuine inventions but, at the same time, to check any attempt at repetitive patenting or extension of the patent term on spurious grounds.”

The significance of this rendering of Section 3(d) is borne out in the Supreme Court’s mix of caution in parsing out the section and firm pronouncements on patent drafting. Section 3(d) states, the mere discovery of a new form of a known substance which does not result in the enhancement of the known efficacy of that substance or the mere discovery of any new property or new use for a known substance or of the mere use of a known process, machine or apparatus unless such process results in a new product or employs at least one new reactant.

And, has the following explanation appended: For the purposes of this clause, salts, esters, ethers, polymorphs, metabolites, pure form, particle size, isomers, mixtures of isomers, complexes, combinations and other derivatives of known substance shall be considered to be the same substance, unless they differ significantly in properties with regard to efficacy.

MADRAS HC READING

Recall that the Madras High Court’s reading that efficacy is a pharmacological idea associated with the ability of a drug to produce a desired therapeutic effect independent of potency, i.e. “healing of disease.” And, the Intellectual Property Appellate Board (IPAB) had noted with respect to enhanced efficacy that “it is not possible to quantify this term by any general formula” and that an assessment would “vary from case to case.” In revisiting these readings, the Supreme Court also had the views of Shamnad Basheer (as an intervenor-cum-amicus) and Anand Grover (Counsel for Cancer Patients Aid Association). The latter had argued for a strict reading of 3(d) which would see efficacy entirely in pharmacological terms. While Basheer agreed that all advantageous properties may not qualify under 3(d), he held that increased safety and reduced toxicity should be seen favourably. Even as the Supreme Court recalls the concerns that author 3(d) — thus, urging a “strict and narrow reading” for medicines — it prefers to delay definitive pronouncement and allow for jurisprudence to develop on this matter. Yet, it is firm in noting that enhancements in the “physical properties” of a product would render a patent application foul of 3(d).

It is here that the evidence — either in the patent applications or submitted later through affidavits to Controller were found wanting in establishing enhanced efficacy. Take for instance the “Massimini” affidavit, filed before the Controller and directed at 3(d), where two points emanate. First, that the beta crystalline form of Imatinib Mesylate is highly soluble, and second that it demonstrates a number of improved physical properties (e.g. flow properties, thermodynamic stability). Yet, in probing, it becomes clear that the comparison is to Imatinib — and not Imatinib Mesylate, where the latter is the “known substance” in terms of 3(d). Which leaves the issue of increased bioavailability — and here the court finds “there is absolutely nothing on this score apart from the adroit submissions of the counsel” and dismisses the argument.

ON DRAFTING

A final aspect of the judgment that needs highlighting is the pronouncement concerning drafting. The careful interrogation of the sequence of events leading to the patent application for the beta crystalline form of Imatinib Mesylate opened up gaping holes in the claims made by Novartis. These included that Gleevec was “‘disclosed” in the Zimmerman patent and this point is also implied by Novartis’s legal notice to NATCO in the U.K. to stop production of its generic version, VEENAT. In response, Novartis argued that even while Gleevec could be claimed by the Zimmerman patent, it was not fully disclosed in an enabling manner. Thus, seeking to differentiate between claims and disclosure. This wonderful legalese was eloquently rejected by the Supreme Court; both, in terms of U.S. legal history that was cited and in terms of the argument’s merits. And it’s useful to quote at length: “We certainly do not wish the law of patent in this country to develop on lines where there may be a vast gap between the coverage and the disclosure under the patent; where the scope of the patent is determined not on the intrinsic worth of the invention but by the artful drafting of its claims by skilful lawyers, and where patents are traded as a commodity not for production and marketing of the patented products but to search for someone who may be sued for infringement of the patent.”

LAPSES

Looking back over the last several years, it is useful to recall the several lapses committed by Novartis. It failed to heed petitions by health groups and civil society to drop the case. For that matter it failed to also heed the wisdom of its own shareholders who urged it to withdraw the challenge. And at the Supreme Court along with losing the case, we also find that the Gleevec patent application “appears to be a loosely assembled, cut-and-paste job, drawing heavily upon the Zimmermann patent.”

The judgment should be well noted and celebrated. It recalls the context of 3(d) and reminds us of the matters of concern that punctuated its crafting. While the section may have been hastily drafted and insufficiently specified, it has the elements to withstand ever-greening. Pharma companies will always be rewarded for their inventive work and effort — and by drawing in a secondary qualifier, they will have to focus their efforts on genuine inventions rather than overlapping patents.

(Dwijen Rangnekar is Associate Professor of Law at the University of Warwick, U.K. E-mail: d.rangnekar@warwick.ac.uk)

It’s not just school grades that parents buy

Sandie Shaw claims that today, she’d need a private education to make it as a star. Is she right?

Mumford & Sons and Sandie Shaw 

By Harry Wallop

9:05PM GMT 27 Mar 2013

Is there a single public figure in Britain who did not go to private school? With the Prime Minister, the Mayor of London and the Archbishop of Canterbury all owners of the black and pale-blue striped Old Etonian tie, it can sometimes seem that way.

Half the Cabinet, more than half of the country’s top medics and 70 per cent of judges went to fee-paying schools – compared to just 7 per cent of the overall population. It is not just men in suits, wigs and white coats who are likely to have been privately educated. Over a third of Team GB’s Olympic medallists from last summer went to private schools.

This week, the debate was reignited by the improbable figure of Sandie Shaw. The 1960s singer, of Puppet on a String and lack of shoes fame, was in front of the culture, media and sport select committee at the House of Commons. She claimed that it would be impossible for her, the daughter of a Dagenham car worker, to repeat her success in today’s world.

“At the moment, unless you are Mumford & Sons and come from a public school and have a rich family that can support you, you’re on the dole and you’re trying to work and by the time you get a sniff of a record contract you just grab anything they might offer you,” she said.

Poor old Mumford & Sons – forever destined to be wheeled out as an example of the public-school mafia that dominate the Top 40. Most of the members of the “nu-folk” band met while pupils at King’s College Wimbledon, incidentally the same private school attended by Nick D’Aloisio, the 17-year-old who landed himself a £20 million internet fortune this week. Then there are Chris Martin of Coldplay, Florence Welch, Dido, Lily Allen, Radiohead and nice, fresh-faced Will Young – public school educated one and all. Even the Saturdays, the girl band currently occupying the number one slot in the singles chart, contains two members whose parents paid for their education. 

How private schools have continued to attract pupils during the downturn has baffled some economists, particularly considering fees have increased by 75 per cent in the last decade. But this sheer weight of success – across the full spectrum of British life, from the track of Sir Chris Hoy’s Olympic velodrome to the stage of the Birmingham hippodrome – is one of the reasons why parents seem willing to dig deep into their pockets. Sandie Shaw’s comment struck home: a private school education increases your child’s chances, even their artistic ones.

The Sutton Trust, which monitors the rusty wheels of Britain’s social mobility, carried out a snapshot survey of the school backgrounds of 8,000 “notable people” deemed important enough to have their birthdays announced in the broadsheet newspapers. Even the arts – where you might think raw talent rather than education would be the deciding factor in a successful career – were dominated by private school pupils. Half of the 135 theatre producers and directors went to private school, and four out of 10 actors too (including Old Etonians Eddie Redmayne and Damian Lewis).

Pop stars, in fact, were one of the least privileged groups, only out-plebbed by policemen. The government-funded Brit School, the performing arts college in Croydon whose alumni include Amy Winehouse, Leona Lewis and Adele, has a far better track record than Eton, which hasn’t had a chart-topper since Humphrey Lyttelton. Even so, a considerable 19 per cent of singers and band members went to private school.

The success of private schools in the so-called “soft” areas such as sport and the arts is partly down to facilities, which have tended to mushroom over the last generation as schools have entered into sports-hall and recording studio “arms races”. Ed Smith, the former England cricketer, pointed out in his book Luck that when England toured Pakistan in 1987-1988 all but one of the 13 players selected were state-educated. When England played India in the summer of 2011, eight of the team’s 11 were privately educated, including Stuart Broad, an alumnus of Oakham and Andrew Strauss, the captain, who went to Radley.

This happens to be my old school (yes, I am one of the 52 per cent of newspaper journalists who went to private school), an institution where the playing fields stretch almost as far as the eye can see – certainly far enough for every single one of its 640 pupils to be playing cricket on a summer afternoon. It also boasts a state-of-the-art theatre, studio space for smaller productions, a music school and concert hall. My hackles rise when a begging letter arrives asking me to help fund yet another Olympic-standard fencing gallery.

Phil DeFreitas, the cricket all-rounder from the 1988 era, went to Willesden High School in north London. Its playing fields were dug up to build a new City Academy, with a glittering building by Sir Norman Foster. It has a basketball court and an Astro Turf pitch for football, but no lovingly watered cricket wicket. It is no surprise that when DeFreitas retired he ended up as a cricket coach not at his old school, but at Oakham, where his experience was used to train future privately educated Stuart Broads, not comp kids like himself.

It is not just the equipment, however. Lee Elliot Major, at the Sutton Trust, says: “There are just not enough state schools that have an aspirational culture. The grammar schools, whatever you may have thought of them, created pupils who aspired, and most independent schools share that. This is as true for pop stars as it is for doctors and lawyers.”

Jo Dickinson, an accountant and mother of three, is about to send her 11-year-old daughter to a private girls’ school. Both she and her husband, a banker, attended comprehensive schools. “My school was good, but it did nothing to nurture me or give me confidence,” she says. “My daughter’s school prides itself on inviting artists and actors as well as doctors and lawyers to give talks to the girls. It’s just something I never had.”

Rachel Johnson, the journalist and sister of Boris, says: “It’s peace of mind. That’s what you are getting when you take on that third mortgage to pay for fees. It’s the peace of mind that you can’t do anything more for your children.”

She thinks the fabled confidence that private schools give their pupils is more of a “veneer”. She, like many parents, frets that this comes with a major disadvantage. Namely, that children will mix in too narrow a social group, shut off from the real world. But this is usually outweighed by the hope that, articulate or not, they will get a leg-up, often in the form of an unpaid internship. In the 1980s, just five per cent of the film industry workforce had under-taken unpaid work, but this rose to 45 per cent over the last decade.

Ryan Shorthouse, at the Social Market Foundation, and author of a report about access to the creative industries, says it is not the unpaid element that is the key barrier. “Bright, talented and enthusiastic people will always find the means and ways to fund an unpaid internship; but they don’t all have access to the network of these internships. This is particularly the case in the creative industries, which tend to be made up of small firms, without the large-scale work experience schemes accountancy or law firms have.”

The confidence that privately educated children are supposed to possess is generated not just by small class sizes, world-class facilities and an encouragement to aspire. It comes from an innate understanding that they will grow up knowing the right people, that there is a network they can tap into. As Dr Elliot Major says: “Politicians talk of soft skills; it’s more than that. They are life-defining skills – that is what the top private schools are so good at giving their pupils.”

This is something that parents who are lucky enough to have money understand. For all the promises from Michael Gove’s education department to inject academic rigour into the state school system, governments will always struggle to compete with the “life-defining skills” on offer in the private system.

Cricket, Physics and the Laws of Probability

by Giffenman

In the recently concluded test match between New Zealand and England an event occurred which in this writer's opinion once again questions the predictability of an lbw decision as a method of dismissing a batsman and especially the DRS system which is being touted as a scientific fact. On the last ball of the 99th over in the England second innings the ball, to quote Andy Zaltzman in Cricinfo:

The ball ricocheted from Prior's flailing bat/arms/head, and plonked downwards, in accordance the traditions of gravity, onto the timbers. It did not brush the stumps. It did not snick the stumps. It did not gently fondle the stumps. It hit the stumps. The bails, perhaps patriotically mindful of their origins in early cricket in England all those years ago, defied all the conventional principles of science by not falling off.

If the stumps and bails had behaved as cricketing precedent and Isaac Newton would have expected them to behave, England would have been seven wickets down with 43 overs left.

If the ball having hit the stumps fails to dislodge the bails then doesn't it introduce even more uncertainty into a DRS based lbw decision which its supporters claim to be irrefutable evidence? This incident requires that in an lbw appeal the DRS should not only predict whether the ball, if not impeded by the batsman illegally, would have gone on to hit the stumps but also if it would dislodge the bails.

Supporters of the DRS rely on the infallibility of scientific laws to promote their support for technology. Then, like true scientists they should admit the weakness of their science whenever an anomaly appears. Assuming for a moment that these scientific laws are infallible then how do they explain the reprieve that Prior obtained? Also, shouldn't the DRS have been used to declare Prior out since the ball had actually hit the stumps?

Hence I would like to make a suggestion which may unite the supporters and opponents of the DRS. I suggest that the LBW as a method of dismissing a batsman should be struck off from the laws of cricket. Instead, a run penalty should be imposed on the batsman every time the ball comes in contact with an  'illegal' part of his/her body. The DRS could be used to adjudicate on this decision. The penalty could be  ten runs and increasing every time the batsman uses such illegitimate methods to stay at the crease.

I look forward to a debate.

Related article

Abolish the LBW - it has no place in the modern world

In teachers they trust

BY

NG JING YNG

Asked how he assesses his teachers, Mr Matti Koivusalo shrugs matter-of-factly that he has “no means” to do so. “There is no evaluation whatsoever for teachers. Everything is based on trust,” says the Principal of Haaga Comprehensive School in Helsinki.

Indeed, the “open” school culture means any feedback quickly reaches his ears, says Mr Koivusalo, who looks after 50 teachers and 600 pupils in grades one through nine (the equivalent of Primary 1 to Secondary 3 in Singapore).

It is easy to see how: Along the school’s hallway, pupils look up from their mobile phones and greet him as he walks past; some engage him in friendly banter. At the school cafeteria where free lunches are served daily — an established practice at all Finnish schools — teachers join him for lunch and chat about how their day has gone.

Said Mr Koivusalo: “If something bad happens, I’ll hear about it in five minutes … The atmosphere is such that (students and teachers) can come and talk about it freely without being afraid.”

Even so, sackings are rare in Finnish schools, say educators. Mr Vesa Valkila, one of the principals at Turku University teacher training school, tried to explain: “Finnish teachers have a lot of freedom and are trusted … that really motivates a lot of them to do their best.”

LEFT TO TEACH

In Finland, a small country of 5.4 million people, its education system operates on this singular principle of trust.

The country’s model shot to global attention after Finnish pupils repeatedly excelled in international tests such as the Programme for International Student Assessment — despite having practically no mandated standardised exams, rankings or competition.

Schools take in students of all varying abilities, including those with learning disabilities, under one roof. The curious result is that, the differences between its weakest and strongest students are the smallest in the world, according to a Organisation for Economic Co-operation and Development (OECD) survey.

School leaders across Finland tell TODAY the same thing: “We trust our teachers”.

There are no national examinations in the first nine years of Finnish formal schooling, and schools and teachers are pretty much left on their own to educate their charges.

As Ms Armi Mikkola, counsellor of education at the Ministry of Education and Culture put it: “The administration is for support and not for inspection … Trust is part of Finnish society, it is a culture.”

Nevertheless, “with trust, there are some risks”, admitted Professor Jouni Valijarvi, Director of the Finnish Institute for Educational Research.

To mitigate risks of having underperforming teachers in schools, a stringent teacher selection process and rigorous teacher training is integral to the system, he said. “It is very important that we can say all schools are good schools,” added Prof Valijarvi. “Because in every school, we’ve highly-trained and qualified teachers”.

SELECTING THE VERY BEST

Yearly, 7,000 teaching aspirants apply to be class teachers (teaching the equivalent of Primary 1 to 6). Typically, there are just 800 spots available.

To teach secondary and upper secondary students (Secondary 1 to Junior College equivalent), 6,000 vie for 1,500 subject teacher positions yearly. Universities cherry-pick from this large pool of applicants, with two different selection processes for each category.

For class teachers, to prepare applicants for an entrance test, authorities will release study materials online on education-related topics such as pedagogical research studies. During the four-hour test, applicants answer about 100 multiple-choice questions. Even so, acing the entrance test does not guarantee a spot in one of the 11 universities offering teacher education.

In phase two, depending on the applicant’s university of choice (they are given up to three picks), there could be a psychometric test along with an interview, or an observed group activity. Some universities also select based on an applicant’s matriculation exam results — the only national examinations taken by Finnish pupils, at the age of 18.

Ms Anna Vaatainen, a student teacher at the University of Turku, is one who succeeded on her second try.

In her first attempt, she was invited by the University of Jyvaskyla for an interview but did not make it through. She went on to obtain a social work degree, and worked in an orphanage for four months, before deciding to give teacher education another go.

This time, after “studying very hard” for the entrance test again, she and three other applicants were tasked by the University of Turku to plan an imaginary school’s sports day. “I am better around people so this group activity might have worked for me,” she said.

Those hoping to be a subject teacher undergo a similar selection process, having to first pass an entrance test set by their subject faculty of choice. They will then apply to the faculty of education, which may require an aptitude test and interview.

The result is that you ensure true commitment to the job. Mr Jari Kouvalainen, a student teacher at the University of Eastern Finland, said: “Because we have to get through this really hard test, you have to be really motivated. With another five years of study, you’re really committed to this career”.

RESEARCH-BASED TRAINING

In the ’70s, Finnish officials moved teacher training under the universities, subsequently implementing a five-year master’s degree programme for all who want to become teachers. A combination of theory, practice and research was key to teacher education, they decided.

Class teachers major in the educational sciences and teach most subjects including Mathematics and Science at the primary levels. Teacher educators say that teaching younger children requires strong pedagogical skills to motivate and excite learners, and not just the transfer of academic knowledge at this stage.

By contrast, subject teachers major in their teaching subjects, while also having to complete pedagogical modules and teaching practicums. In-depth knowledge in their teaching areas is crucial, to give them the confidence to explain complex theories and tackle difficult questions.

Ms Anneli Rautiainen, head of professional development of teachers at the Finnish National Board of Education, thinks that research-based teacher education accounts for the high quality of teaching in Finnish schools today.

“The fact that we have a Master’s degree for teacher initial education is very important. As research-based teachers, they can analyse learning situations and know how to support their students better,” she said.

Student teacher Ms Tuula Hurtig agrees that conducting research has honed her critical thinking abilities and improved her teaching methods. Graduating as a history and civics teacher this year, her thesis involved research into how historical pictures impacted her students’ learning.

GETTING FIELD EXPERIENCE

Head of teacher education at University of Helsinki, Professor Jari Lavonen, calls research-based teacher education vital — it combines with field practice to keep student-teachers in touch with classroom realities and “thinking about their teaching methods”, he said.

All student teachers undergo multiple teaching practicums as part of their five-year programme. Each one lasts between two weeks and a year.

Guided by teacher mentors, student teachers are attached to teacher-training schools set up by the universities, where they plan, teach and observe lessons. These 12 teacher training schools across Finland function as normal schools, with pupils coming from nearby homes. These schools also partner regularly with universities to produce the latest research in education.

Final-year student teacher Mikko Honkamaki, from the University of Jyvaskyla, worked with different mentors during each of his four practicuums — which broadened his perspective on various teaching styles — and got advice before and after each lesson. He also got to observe and critique fellow student-teachers, and vice-versa.

“Watching my peers forced me to focus on my own way of giving instructions ... Receiving and giving feedback has also been crucial to my growth as a professional,” he said.

LEEWAY TO DECIDE

It was a cold winter’s morning when TODAY visited Maininki School in Espoo city, half an hour outside Helsinki, and Ms Rose-Marie Mod-Sandberg was conducting an English Language lesson with her eight-graders (Secondary 2 equivalent).

The classroom was quiet as some students had fallen ill; it was a smaller than usual group. Ms Mod-Sandberg, 55, decided to get her pupils to share about their favourite American cities and imagine what they would do if they got there. As the mood lightened, she gave out worksheets which each student completed on their own.

She has the leeway to tailor her lessons according to her students’ abilities or interests on that very day itself, she told us. For instance, if the children were keen on a topic that was meant only for next year, she could dive into it. And if they seemed more tired than usual — such as after a strenuous Physical Education lesson — she could choose to do something less demanding, and pick things up later.

“If I want to teach a topic, I can teach it anyway and anytime I like,” she said. “Finnish teachers undergo a long training, so (school leaders) can trust us to be professional and to act in the pupils’ interest”.

MORE THAN MONEY’S WORTH

In Finnish schools, teachers typically teach from 8am to 2pm before heading off to plan lessons or attend to parents’ queries. They are not required to take charge of after-school activities such as arts or sports clubs — usually run by private community organisations — and those who do so, are remunerated accordingly.

Schools leaders also said that a layer of stress is removed for teachers as there is no evaluation process linked to their salaries. In fact, the pay structure is relatively flat where pay increases with years of experience and teaching hours.

According to the latest OECD data, Finland’s average annual wage is S$59,852 or approximately S$5,000 a month. For those teaching at the primary level, annual salaries start at S$35,883 (about S$ 3,000 a month). After 20 years, their pay reaches a maximum level of S$64, 530 (S$5,400 a month).

Nevertheless, pay is not a main issue for Finnish teachers, said those TODAY spoke to. People are attracted to the career due to the high status that education is accorded in Finland and the autonomy given to teachers.

The government provides free education in the first nine years of a child’s school life, while schools receive funds to invest in slower learners. Teachers also hold a place in Finnish history, often cited as important figures alongside priests and doctors.

“Young people still see working as a teacher as very creative and independent, where teachers can make a difference in their pupils’ lives,” said Mr Olli Maatta, a teacher trainer at Helsinki Normal Lyceum, a regular Finnish school owned by the University of Helsinki for trainee teachers to serve their attachments.

At Haaga Comprehensive School, the school bell rings and children burst out of their classrooms into the snow-filled courtyard, throwing snowballs at one another and sledding down mini snow hills.

Starring out of his window as one of his teachers leads pupils back from a skiing lesson, principal Mr Koivusalo observes: “The role of an educator is very important. If a teacher loves his job, the children know it and they will want to come to school.”

Ng Jing Yng is a senior reporter with TODAY covering the education beat. She spent one and a half weeks visiting schools in three Finnish cities — Helsinki, Jyvaskyla and Turku — ranging from primary through to upper secondary (JC equivalent) levels. She spoke to students, educators, university faculty who train teachers and officials.

JP Morgan et al - Not a decent banker around

By Martin Hutchinson in Asia Times Online

In the past week, the detailed revelations from JP Morgan's grilling in the US Senate have combined with the Cyprus rescue blunder to generate one inescapable conclusion: public or private sector, European or American, there isn't a decent, competent banker among them. Truly almost 20 years of funny money and 30-40 years of misguided deregulation have drained the financial sector of the quiet competence it used to exhibit. 

I wrote about JP Morgan's "London Whale" derivatives insanities of early 2012 a few weeks ago. It demonstrated two failings that appear to me unforgivable. First, in spite of the experience of 2007-08 Morgan was still using value-at-risk as a major element of its risk management. 

Kevin Dowd and I pointed out the irretrievable flaws in this methodology in Alchemists of Loss, published in June 2010 - and we were by no means alone in doing so, though we may have had a "better mousetrap" than others in terms of an alternative risk management approach. A bank of Morgan's stature has a duty to keep up with the literature; it's as simple as that. 

The second failing is even more fundamental, because it rests on what Morgan thinks a bank should be doing. Bruno Iksil, the London Whale, was attempting to "corner the market" in an obscure and artificial credit default swap (CDS) contract. 

First, credit default swaps are not solidly based, because their settlement procedure can very easily be "gamed" - rather than the current procedure it would make more sense to select a random number between 1 and 100 as the percentage of the contract that was paid out on default. Second, index CDS contracts are doubly artificial, because the index itself is constructed as a basket of credit default swaps, none of which themselves trade with any liquidity; thus the index itself can be "gamed." Third, Iksil was trading in an "off the run" index, constructed five years previously, whose liquidity was even more restricted and whose relationship to any underlying reality was even more attenuated. 

JP Morgan would have done better to put their capital on red in Las Vegas. The CDS index Iksil was trading was so far removed from reality it was a mere gambling chip, with no underlying economic meaning. His trading volumes were so large that he controlled the market, which enabled him to report spurious profits until the beginnings of responsible risk management forced him to begin unwinding the position. His activity bore no relationship to true banking; it served no legitimate financial purpose, nor did it serve the financing or risk management needs of any client. 

This is the real problem of derivatives markets in general; the genuine client service they provide is minor, in some cases infinitesimal, compared with the gambling and manipulation activities they enable. If you are JP Morgan, and privy to a great deal of information about market movements to which less exalted institutions do not have access, you can make good money by exploiting others' ignorance. But make no mistake, the immense profits made in these markets are not secured by providing genuine service to clients, any more than Las Vegas casinos make money by providing investment opportunities to their foolish punters. In the final analysis, both activities are almost purely parasitic, and should be severely discouraged if not prohibited altogether. 

The only problem with prohibiting these activities is that the prohibition would have to be designed and enforced by public sector regulators. Public choice theory suggests that they are not capable of performing this function adequately and the Cyprus imbroglio shows just how inept and conflicted they are in reality. 

Legally, if US$7.2 billion was required for the Cyprus bailout beyond the European Union loan (the accuracy of that calculation is of course unverifiable), then the Cypriot banks' subordinated loans should have been wiped out, and the necessary amount taken from the banks' senior debt and uninsured depositors. (Any amount taken from insured depositors would have had to be made up by the Cyprus government, so would have added to the bailout need.) 

Instead, the proposed bailout took a 9.9% tax from depositors above 100,000 euros (the deposit insurance limit) and a 6.7% tax from deposits below 100,000 euros, which were theoretically insured, while leaving the modest amount of senior debt untouched. 

The Cyprus government rejected these terms, not because of the taxes' effect on small Cypriot depositors or on the Cypriot deposit insurance system, but because of their effect on the Russian mafia thugs who contribute about a third of the Cypriot banking system's deposits. One can only guess what inducements, positive and negative, the big depositors gave to the Cyprus legislature to take that position. 

Legality seems to have been utterly irrelevant to those arranging the bailout. Instead, by arranging a "tax" that fell so heavily on small depositors, they blew a hole in deposit insurance schemes worldwide. Depositors in banks elsewhere in the EU, or indeed the United States, can no longer believe that the first $100,000 (or whatever figure is "insured") of their savings is secure. 

Inevitably, calls upon the deposit insurance scheme will be made in times of financial stress, and at those times governments can use the depositors' funds to recapitalize the banks or indeed themselves. In 2008, depositors in Western Europe and the US could be reasonably confident that their governments were in decent financial shape, so would have no need to raid their citizens' piggy banks. In the next financial crisis, thanks to years of foolish, indeed evil, monetary and fiscal "stimulus" there will be no such assurance. 

I wrote some months ago about the problems involved in going back to a world in which government bonds are no longer a reliable store of value, and suggested that such a change would reverse 350 years of financial history, taking us back to the time before the establishment of the Bank of England in 1694. 

A world in which neither government bonds nor banks are to be trusted takes us back about 400 years further. After all, Samuel Pepys only occasionally buried his money in the back garden; most of the time he entrusted it to a reliable goldsmith, the precursors to the London merchant banks. The goldsmith-bankers were new in Restoration England, but as Edward, Earl of Clarendon wrote in his memoirs around 1670, before their time, the scriveners had been available for "money business''. A world without banks takes us back before the scriveners, before the first Italian banks (Monti dei Paschi di Siena, 1472) and even before the Lombard moneylenders of the fourteenth century. 

Needless to say, pushing our financial system back close to the Dark Ages will do nothing whatever for global economic well-being. A world without banks is a world in which all trade must be financed by merchants themselves, in which investments must be financed entirely out of equity or ad hoc loans from those with money. 

While much of Silicon Valley currently finances itself on close to this basis, it is unimaginable that business as a whole can do so; the needs of fixed assets, inventory and receivables are simply too great. A world with 13th century finance is more a less a world with 13th century living standards - and for only a 13th century world population. 

We thus live in a world in which neither the managers of JP Morgan nor the financial wizards of the European Union have the slightest awareness of the basic needs of a sound financial system. 

Admittedly the two problems cancel each other out: provided governments remain solvent both the need for deposit insurance and the speculative games of the trading desks can be eliminated by going back, not to the Dark Ages, but only to 1914. At that time, banks did not have deposit insurance, so depositors were forced to assure themselves that deposit institutions were soundly managed. 

This pretty well put paid to speculative games: the Knickerbocker Trust of New York went bankrupt in 1907 through speculation in the copper market, and for at least the next two decades it was accepted that speculation had no place in a soundly run deposit-taking bank. (Investment banks existed, but they were separately capitalized and did not rely on the bank's depositors for funding.) 

Without deposit insurance, banks would have to be properly capitalized, with a tangible capital base of no less than 20% of assets - calculated not on a "Basel" formula in which some assets are defined as "low risk" and discounted accordingly, but in which all assets and liabilities are fully reflected in the balance sheet. Only with such a heavy capitalization could depositors be sure the banks would stay in business. 

What's more, derivatives, securitization and other off-balance sheet risks would have to be undertaken by separate companies that did not themselves take deposits; bank depositors would insist that all such risks be taken onto the bank's balance sheet, which would make them impossibly costly. 

In order to discourage speculative activity further, it would also be necessary to return to a strict gold standard (or other commodity standard). The 1920s gold exchange standard, with the Federal Reserve able to increase credit at will, proved impossibly dangerous to the banking system after 1929, so a banking system with an active Fed would over time prove unable to attract depositors because of its risk. 

I'm quite certain that both the management of JP Morgan and the EU bureaucracy would regard such an alternative as wholly unacceptable - it would, for one thing, restrict sharply the ability for self-remuneration of both bankers and bureaucracies (which would have to finance themselves in a bond market without bank lenders, strong intermediaries or fiat money). 

However, by their ineffable folly, they have brought such a world (or the much worse dystopia where we lose 750 years of financial progress altogether) very much closer. 

Martin Hutchinson is the author of Great Conservatives(Academica Press, 2005) - details can be found on the website www.greatconservatives.com - and co-author with Professor Kevin Dowd of Alchemists of Loss (Wiley, 2010).