Unfunded public sector pensions - the so-called "gold-plated" ones - account for a mere 11.90% of the total.
Sunday, May 06, 2012
Those gold-plated public sector pensions that are ruining us
The Office of National Statistics (htp: The Spectator's "Barometer" column) has calculated that pension obligations in the UK amount to £7.1 trillion, or nearly 5 times GDP.
Unfunded public sector pensions - the so-called "gold-plated" ones - account for a mere 11.90% of the total.
Unfunded public sector pensions - the so-called "gold-plated" ones - account for a mere 11.90% of the total.
Saturday, May 05, 2012
Simon Heffer has gone mad
From today's Daily Mail:
"Most people are quite content with things the way they are."
"I am delighted Tony Blair is re-engaging with British politics."
I rest my case. Careful with those straps, gentlemen; easy does it; now the syringe.
"Most people are quite content with things the way they are."
"I am delighted Tony Blair is re-engaging with British politics."
I rest my case. Careful with those straps, gentlemen; easy does it; now the syringe.
Why I voted UKIP
In our ward, it didn't make any difference, this time round, although the UKIP candidate did beat the Conservative into xth place.
But I take a wider view.
Withdrawing from the EU is essential: it's quite clear that the one-size-fits-all approach doesn't work. Yet even now the EU continues in that path.
Let's take one example: Mervyn King told the House of Lords Economic Affairs Committee on 27 March:
"The current proposals that were put forward by the European Commission would have made it impossible for any regulator, say in Sweden or in the United Kingdom, to impose higher capital requirements on its own banks in order to protect domestic taxpayers. If you have a large banking sector and the consequences of its failure would be much more damaging to domestic taxpayers because they would feel compelled to bail the banks out, in that situation—as Switzerland has done, and indeed so far as Sweden has also done, and as Vickers recommends for banks behind the ring-fence—to have a higher level of capital than previously would simply make sure that you had a safer banking system, which would help to protect domestic taxpayers. Since there is no suggestion that European taxpayers are going to pick up the bill for a national banking system if it gets into trouble, it seems reasonable to allow national regulators to protect national taxpayers but the European Commission does not want to allow that."
If we keep voting for any of the three largest parties we'll never get past the first step.
But it's not enough. All that would do is to expose what rotters we have in Parliament. Peter Hitchens is good at noting how many of our laws arise from EU directives, yet the MPs pretend it's their decision. And at other times, they tell us that the EU insists on things where actually we have discretion. So a restoration of national sovereignty would mean no-one else for them to blame.
Then there's the voting system, so flawed that there's lots of people making very good money advising political parties how to exploit it. Funny how they all got together to keep out the Alternative Vote. Better Buggins' turn than all be thrown out in favour of some new political force; though as the origin of that phrase indicates (see link), the current corrupt system could be the reason for the catastrophic collapse.
And the weird boundary system, too. Until the boundary in my constituency was changed, you could vote for anything you liked but you'd get Labour. You'll still never get Conservative here.
Which brings me to the electorate. Thomas Jefferson advocated any political system that fully reflected the will of the people, even if that meant revising the Constitution from time to time. But the franchise in his day was nothing so widely extended as today. Democratic government throws itself on the mercy of the people, and that places a reliance on the people's intelligence, their level of education and access to information, and willingness to debate reasonably and abide by collective decisions.
Well, maybe we're sunk, then.
But it is better to be defeated in an honourable cause, than prosper in corruption.
And besides, if the people have more say, more often, in matters that affect them, this will educate them.
So, UKIP - and the feelings and as yet not fully defined principles behind it - is a start.
But I take a wider view.
Withdrawing from the EU is essential: it's quite clear that the one-size-fits-all approach doesn't work. Yet even now the EU continues in that path.
Let's take one example: Mervyn King told the House of Lords Economic Affairs Committee on 27 March:
"The current proposals that were put forward by the European Commission would have made it impossible for any regulator, say in Sweden or in the United Kingdom, to impose higher capital requirements on its own banks in order to protect domestic taxpayers. If you have a large banking sector and the consequences of its failure would be much more damaging to domestic taxpayers because they would feel compelled to bail the banks out, in that situation—as Switzerland has done, and indeed so far as Sweden has also done, and as Vickers recommends for banks behind the ring-fence—to have a higher level of capital than previously would simply make sure that you had a safer banking system, which would help to protect domestic taxpayers. Since there is no suggestion that European taxpayers are going to pick up the bill for a national banking system if it gets into trouble, it seems reasonable to allow national regulators to protect national taxpayers but the European Commission does not want to allow that."
If we keep voting for any of the three largest parties we'll never get past the first step.
But it's not enough. All that would do is to expose what rotters we have in Parliament. Peter Hitchens is good at noting how many of our laws arise from EU directives, yet the MPs pretend it's their decision. And at other times, they tell us that the EU insists on things where actually we have discretion. So a restoration of national sovereignty would mean no-one else for them to blame.
Then there's the voting system, so flawed that there's lots of people making very good money advising political parties how to exploit it. Funny how they all got together to keep out the Alternative Vote. Better Buggins' turn than all be thrown out in favour of some new political force; though as the origin of that phrase indicates (see link), the current corrupt system could be the reason for the catastrophic collapse.
And the weird boundary system, too. Until the boundary in my constituency was changed, you could vote for anything you liked but you'd get Labour. You'll still never get Conservative here.
Which brings me to the electorate. Thomas Jefferson advocated any political system that fully reflected the will of the people, even if that meant revising the Constitution from time to time. But the franchise in his day was nothing so widely extended as today. Democratic government throws itself on the mercy of the people, and that places a reliance on the people's intelligence, their level of education and access to information, and willingness to debate reasonably and abide by collective decisions.
Well, maybe we're sunk, then.
But it is better to be defeated in an honourable cause, than prosper in corruption.
And besides, if the people have more say, more often, in matters that affect them, this will educate them.
So, UKIP - and the feelings and as yet not fully defined principles behind it - is a start.
Thursday, May 03, 2012
Foreign cinema news
Despite the success of "Salmon Fishing in the Yemen", which has also boosted tourist interest in that area, the Egyptian Film Board is reportedly "disappointed" at the reception of its own recent release, "Catching Crabs in Alexandria".
Wednesday, May 02, 2012
Gun murders revisited
Yesterday, I grabbed some Wiki data to look at whether a higher rate of gun ownership means a lower chance of being killed with a gun. I divided one by the other and it didn't look like the argument stood up.
Today I'll do it a different way: I'll MULTIPLY one by the other, on the assumption that if the theory is correct, one figure gets lower and the other gets higher, so the line should be reasonably even, even if it might be angled (I'm sure a statistician can put me right, but at least I'm trying). Here's the data:
... and here's the graph (in block form):
The last 5 on the right leap out of the trend. My explanation is that higher rates of gun murders are more a function of lack of social cohesion and weak official control. What's yours?
Today I'll do it a different way: I'll MULTIPLY one by the other, on the assumption that if the theory is correct, one figure gets lower and the other gets higher, so the line should be reasonably even, even if it might be angled (I'm sure a statistician can put me right, but at least I'm trying). Here's the data:
... and here's the graph (in block form):
The last 5 on the right leap out of the trend. My explanation is that higher rates of gun murders are more a function of lack of social cohesion and weak official control. What's yours?
Tuesday, May 01, 2012
Osborne: Bankers face payment by results
A startling recent report from the Daily Telegraph outlines a radical shakeup of the banking system by the Chancellor, George Osborne. I reproduce the text below (N.B. our spellchecker has identified and corrected a number of errors in the course of transcription).
“Results” would include not just profits but measures such as how much progress client businesses make, corporate governance and credit ratings.
Last night, George Osborne, the Chancellor of the Exchequer, disclosed that Mervyn King, the Governor of the Bank of England, had already asked the FSA, which analyses national remuneration packages, to set up a new Walker-style review and “make recommendations on introducing greater freedoms and flexibilities in bankers’ pay, including how to link it better to performance”.
Mr Osborne said the Government welcomed the MPs’ report “into this important area”. The review body is expected to deliver its recommendations by September.
In the report published today, the Treasury select committee says bankers should be rewarded for “adding the greatest value” to customers’ businesses and be given paid sabbaticals to further their skills.
MPs claim the reforms would address fears that poor bankers are having a “very significant” impact on businesses’ long-term prospects. The report quotes international research which shows that the worst bankers could cost business people and millions of employees their livelihoods and life savings.
Eric Hanushek, an economist at Stanford University in America, has shown that an excellent banker can help local enterprises thrive and create employment, whereas a poor one will drive his customers into receivership.
The British Bankers’ Association is strongly opposed to any attempt to alter pay and conditions. However, the committee’s report says: “No longer should the weakest bankers be able to hide behind a rigid and unfair pay structure.
“We believe that performance management systems should support and reward the strongest bankers, as well as make no excuses — or, worse, incentives to remain — for the weaker. Given the profound positive and negative impacts which bankers have on national economic performance, we are concerned that the pay system continues to reward low performers at the same levels as their more successful peers.”
They want the Government to draw up proposals for a pay system that rewards those adding the greatest “value to the performance of enterprises”.
Marcus Agius, the chairman of the British Bankers’ Association, said: “Payment by results is total nonsense. Our customers are not tins of beans and banks are not factory production lines.
“Successful banks rely on a collegiate approach and team working. Performance-related pay is not only inappropriate but also divisive.
“Business people differ and startups differ from year to year, making it impossible to measure progress in simplistic terms.”
There are currently 5 major banking groups in the UK, and about 20 others. Although an element of performance-related pay already exists, ministers are now looking at enhancing rewards for the best.
Currently, bankers in London can earn up to £1.25 million. but see their pay rise to £8 million with other perks and bonuses. Earlier this year, Natalie Ceeney CBE, the chief executive of the Financial Ombudsman Service, said too many bankers – more than 90 per cent – were allowed to pass the test. “The thing that irritates good bankers, people who work hard and go the extra mile, is seeing the people that don’t do that being rewarded,” she said.
In December, it was reported that just no bankers judged to be incompetent over an 18-month period had been sacked.
In further recommendations, the report says a “sabbatical scholarship” programme should allow outstanding bankers to take time out to work in a different bank, undertake research or refresh their subject knowledge. It is also suggested fund managers and quantitative analysts be allowed to lead training sessions for university students as part of a system of “banking taster classes” to show them the benefit of a career in the profession.
__________________________________________________________
Poor bankers could
be paid less than competent colleagues under government plans to improve
standards of commercial banking.
Ministers want to link pay to performance in the boardroom as part of a new drive to improve results and attract the best graduates into the profession.
A cross-party group of MPs today
says that a new payment by results system is needed to stop the worst bankers
hiding behind a “rigid and unfair” national remuneration structure.Ministers want to link pay to performance in the boardroom as part of a new drive to improve results and attract the best graduates into the profession.
“Results” would include not just profits but measures such as how much progress client businesses make, corporate governance and credit ratings.
Last night, George Osborne, the Chancellor of the Exchequer, disclosed that Mervyn King, the Governor of the Bank of England, had already asked the FSA, which analyses national remuneration packages, to set up a new Walker-style review and “make recommendations on introducing greater freedoms and flexibilities in bankers’ pay, including how to link it better to performance”.
Mr Osborne said the Government welcomed the MPs’ report “into this important area”. The review body is expected to deliver its recommendations by September.
In the report published today, the Treasury select committee says bankers should be rewarded for “adding the greatest value” to customers’ businesses and be given paid sabbaticals to further their skills.
MPs claim the reforms would address fears that poor bankers are having a “very significant” impact on businesses’ long-term prospects. The report quotes international research which shows that the worst bankers could cost business people and millions of employees their livelihoods and life savings.
Eric Hanushek, an economist at Stanford University in America, has shown that an excellent banker can help local enterprises thrive and create employment, whereas a poor one will drive his customers into receivership.
The British Bankers’ Association is strongly opposed to any attempt to alter pay and conditions. However, the committee’s report says: “No longer should the weakest bankers be able to hide behind a rigid and unfair pay structure.
“We believe that performance management systems should support and reward the strongest bankers, as well as make no excuses — or, worse, incentives to remain — for the weaker. Given the profound positive and negative impacts which bankers have on national economic performance, we are concerned that the pay system continues to reward low performers at the same levels as their more successful peers.”
They want the Government to draw up proposals for a pay system that rewards those adding the greatest “value to the performance of enterprises”.
Marcus Agius, the chairman of the British Bankers’ Association, said: “Payment by results is total nonsense. Our customers are not tins of beans and banks are not factory production lines.
“Successful banks rely on a collegiate approach and team working. Performance-related pay is not only inappropriate but also divisive.
“Business people differ and startups differ from year to year, making it impossible to measure progress in simplistic terms.”
There are currently 5 major banking groups in the UK, and about 20 others. Although an element of performance-related pay already exists, ministers are now looking at enhancing rewards for the best.
Currently, bankers in London can earn up to £1.25 million. but see their pay rise to £8 million with other perks and bonuses. Earlier this year, Natalie Ceeney CBE, the chief executive of the Financial Ombudsman Service, said too many bankers – more than 90 per cent – were allowed to pass the test. “The thing that irritates good bankers, people who work hard and go the extra mile, is seeing the people that don’t do that being rewarded,” she said.
In December, it was reported that just no bankers judged to be incompetent over an 18-month period had been sacked.
In further recommendations, the report says a “sabbatical scholarship” programme should allow outstanding bankers to take time out to work in a different bank, undertake research or refresh their subject knowledge. It is also suggested fund managers and quantitative analysts be allowed to lead training sessions for university students as part of a system of “banking taster classes” to show them the benefit of a career in the profession.
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