Monthly Archives: March 2012

House vacancies by census area

Rob Kitchen looks at some of the startling figures on vacant houses here with some sobering outcomes

Ireland after NAMA

For the first time, the housing stock and vacancy data from the Census has been released at the new Small Area (SA) level.  This new statistical geography, developed by the National Centre for Geocomputation at NUI Maynooth for Ordnance Survey Ireland, consists of 18,488 areas, typically consisting of 80-130 households.

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Will Nama need more capital?

Super stuff as usual from Namawinelake in Nama

NAMA Wine Lake

Today is the last day for NAMA to hand over its latest quarterly management report and accounts to Minister for Finance, Michael Noonan. The accounts will cover the three month period ending on 31st December 2011 and will also show the annual figures for 2011. For the first time in NAMA’s reporting of its results for 2011, we will see what NAMA calculates to be its so-called “impairment charge” – this will make the difference between profit, and remember NAMA was last week forecasting a profit before impairment of “at least €750m” and loss, sadly NAMA didn’t have an estimate of impairment charges last week. Although these accounts that are due today are not fully audited, and NAMA will not publish its full annual report until the summer, these accounts should give an accurate picture of NAMA’s performance in 2011. Here are seven things to look out for:

(1) The impairment…

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HouseHold Charge : a catalog of blunders

This is an expanded version of an opinion piece published in the Irish Examiner 31/March/2012. See

It would be hard to create a more perfect muddle than that around the household charge which has been a fiasco for this government and for the department of the environment in particular. It will be a godsend to the hard left, to whom any form of property tax (apart from a tax on ‘the rich’ we must guess) is anathema. It will be an albatross round the neck of Labor who will find themselves in government fining and taking to court possibly a million people, hardly the best thing to do when you want them to ever vote for you again.It has also had the unfortunate effect of forever muddying in the minds of the Irish public the separate concepts of charges for local authorities and the taxation of property. It will lead to a thief’s charter if the proposal to have council employees go round door to inform/enforce the tax is put in place as every skanger this side of the dawn will descend on the elderly and vulnerable.

It bears all the hallmarks of a botched, badly thourushed job, for that is what it is. We would have though that we had had enough experience of the messes that botched rushed policy making leaves behind with the bank guarantee to have made the system immune but it appears not. There are two elements that should have been separated but were not, the charging for local services and the taxation of property. As part of the troika agreement there is a requirement that we move to the norm of the OECD and put in place a sustainable system for taxing property. However, the most recent statement on the property tax was in the MOU of November 2011 where the government committed to bringing one in by end 2011. They didn’t. The world didn’t end, and as such they can and should delay to so long as they need to get it right.

That property in some form should attract a tax is something that almost all economists, for centuries, have agreed with. The basest reason is its immovability, but that argument in fact is more about the land than the house. There are compelling economic and social reasons to consider a land or site value tax, and these have been spelled out recently by Ronan Lyons and Constantin Gurdgiv in a series of research and policy papers. Gurdgiv has two interesting papers : one examines the issues around the macroeconomic impact of site and land value tax, the other on how such a tax can be used to finance sustainable infrastructural investment. The paper by Lyons, under the auspices of the excellent Smart Taxes Network, is perhaps the most developed analysis of such a tax and it is sobring to compare its clarity and analytical rigor with the mess that is the government proposal. The idea of a land or site value tax is in principle agreed between the Troika and the Government but appears to be running into resistance. The submission of the Network (with whom I am not associated although I know most members of same and admire them greatly even when we disagree!) on such taxes is well worth a read. The great philosopher and mathematician Condorcet and later Adam Smith formulated a number of basic principles of taxation. Smiths four principles, of which every economics student the world over is aware, are that tax should be

  • Equality: each person pays in proportion to their ability
  • Certainty: the tax is fixed and and not subject to arbitrary change over the period of its application
  • Convenience: the tax is easy (if not necessarily pleasant) to pay
  • Economy: Only that which is needed for the activities funded thereunder, no less no more.

There are a number of reformulations of this. An excellent study by some two Australian taxation experts is here. In general these reformulations consist of “sui generis” changes, to for example reflect the subject matter under discussion by a particular tax study. We can see that the proposed household charge is certainly not equal, and is not convenient. One might also argue that it is not economic if one examines in some detail the concept. Smith defines this principle of economy in four stages.

First, the levying of it may require a great number of officers, whose salaries may eat up the greater part of the produce of the tax, and whose perquisites may impose another additional tax upon the people.

The proposals here are to be administered by the local authorities. Are we to find that the purpose of the tax becomes the funding of those whose role it is to administer the tax? In other words, how efficient is the tax, given that it is now beginning to consume political capital. The 2007 election gave us a government that lost a vast amount of capital when it backed down from the anger of OAP’s in relation to what now seem trifling changes in access to medical cards. One might argue from a smithian view that a tax which costs, politically, more than it will yield is one that is not economic. The cuts to the local authority budgets last year were more than the amount to be raised by the household charge, and as such even with 100% compliance the spectres raised of closed libraries, unfilled potholes and drained swimming pools would still haunt us.

Secondly, it may obstruct the industry the people, and discourage them from applying to certain branches of business which might give maintenance and unemployment to great multitudes. While it obliges the people to pay, it may thus diminish, or perhaps destroy, some of the funds which might enable them more easily to do so.

This is not an issue here thankfully. At least, not any more than the normal run of taxes.

Thirdly, by the forfeitures and other penalties which those unfortunate individuals incur who attempt unsuccessfully to evade the tax, it may frequently ruin them, and thereby put an end to the benefit which the community might have received from the employment of their capitals. An injudicious tax offers a great temptation to smuggling. But the penalties of smuggling must rise in proportion to the temptation. The law, contrary to all the ordinary principles of justice, first creates the temptation, and then punishes those who yield to it; and it commonly enhances the punishment, too, in proportion to the very circumstance which ought certainly to alleviate it, the temptation to commit the crime.

This is the case here : the widespread resistance to the tax is in itself evidence that there is a problem. It is not so much that people do not like paying tax. It is that they do not see the fairness and justice of this particular tax at this time in this manner. A properly structured and explained tax would attract much less opprobrium. A part of this opposition is grounded on the widespread revulsion that not only are the politicians and bankers who drove the ship of state to the rocks not being punished they appear to be thriving.

Fourthly, by subjecting the people to the frequent visits and the odious examination of the tax-gatherers, it may expose them to much unnecessary trouble, vexation, and oppression;”

Do we really expect to see hundreds of thousands of people being fined? Taken to court and their salaries and pensions garnisheed, and expect them to mildly submit when no evidence is forthcoming that the architects of the crash are to suffer any loss? Does the labour party in particular not see that it is political suicide, for no gain, to do this? More problematically, in a country where there is (justified or not) fear amongst rural and elderly, the provision of a process whereby persons will call to inform/collect the tax will be, as I have stated, a thiefs charter

. In essence a properly structured land or site value tax can provide smoother revenues, allows the monetary capturing more easily of the part of the quasi-public good element of infrastructural improvements, and conforms well to the principles of good taxation. Such a tax incentivizes high quality land use, and can be adjusted to penalize wasteful use (such as hoarding or dereliction) More critically, we already have the bones of one to hand, calculated at a fine grained level, namely the Electoral Divisions and Census Enumerator areas, some 4500 of them round the country. To implement such a tax requires knowledge initially of the desired amount of tax to be raised and the surface area to be taxed, with each of the 4500 discrete areas then being allocated a charge reflecting the characteristics of the housing in its area, with the tax increasing exponentially the more valuable is the land on which it is levied.

The proposal at hand is to use the flat household charge to defray part of the lost revenue accruing to local authorities from central sources. Local authority funding in Ireland is a mess and has been since the Fianna Fail government abolished domestic rates in 1977. The point of raising tax locally is to provide local services. During the boom councils were funded from motor tax, development levies and businesses were compliant with the ever-increasing business rates. Now the levies have dried up and the increased rates are part of the burden crushing business. The most startling thing is that the household charge will not even make up the reduced central government revenue. We are poor adopters of technology for government in this country but that should not stop us trying. Every PAYE deduction, every VAT transaction, every tax head in the country is associated with a taxpayer and they have an address. There is no reason whatsoever why the appropriate percentage of tax cannot be taken from central taxes and diverted at source to the relevant local authority. In 2011 approx. €160m of central government funding went to local government. Some 14b was raised in tax under the main headings. So why can say 1.25% of all PAYE taken from me not be sent to Kildare County Council in whose area I live? We could get more refined, to ensure for example minimum levels of per capita allocation across areas or other sharing arrangements, but this would begin to link earnings and local government expenditure. As time goes on more and more refinements could be imagined, but this would be a painless and effective way to start funding local authorities.

In 1804 a still insecure Bonepart ordered the kidnapping and execution of the Bourbon duc d’Enghien, a much admired (on all sides) French royal and general. The interesting thing for this debate is that Napoleon initially dispatched his kidnappers on what seemed good evidence. The road to perdition is paved with good intentions after all and what is a better intention in the fiscal realm than a stable local taxation process? After the Duc was secured and while under arrest, the evidence was found to be false. Rather then face the embarrassment of releasing the Duc, Napoleon ordered that he be tried on different, equally dubious charges, of which he was convicted and summarily executed. The great french diplomat, Talleyrand, a man who started life as that most aristocratic of Ancien Regime dependants, an aristocratic bishop (of Autun) and who served and survived the revolutionary, consular, Bonepartist and restored Bourbon regimes, another revolution and then Louis-Phillipe, was not impressed. He declared the murder “worse than a crime, it was a blunder”. This governments handling of the charge to date has been a blunder. There is no troika/legal/constitutional bar to deferring the charge until a proper system that adheres to the canons of good taxation is worked out.

A super post here again answering Paul Mooney OpEd on Irish higher education

Ireland after NAMA

On Tuesday the Irish Times carried an opinion piece by Paul Mooney entitled ‘Inside Third Level‘.  I sent the IT the following response, but it’s not been carried so I’m putting it on the record here.

For someone who has worked in the university sector and has been the President of the National College of Ireland, Paul Mooney’s level of ignorance as to what lecturers and professors do and the purpose of the higher education is quite remarkable.  What is even more striking is that his opinion piece in the Irish Times (Inside Third Level) lacks the rigours of analysis that one would expect from an academic.  Assertion, anecdote and the partial, cherry-picking of data does not constitute evidence-informed analysis.

Where is the data and its systematic analysis to underpin the conclusions drawn?  Where are the international comparisons that would set Ireland in context of other higher education…

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Perhaps the most annoying advert on the radio at present is the one for “safe food”.  Its brought to you by the Safe Food Agency. Of course it’s a good idea to not poison yourself or your family but the advert is imho so over the top as to ridicule the issue.  The SafeFoodAgency have, on their quiz about how minging is your kitchen,  and I kid you not, a bacteria cam…. The SFA are the same people that informed us, faces a-po, that there was a silent menace of obesity and gave us all tapes to measure our vast girth. Mine was too small…

The ad consists of a monotonic litany of common household and kitchen appliances: your knife, your fork, you chopping board, your spoon, your eggcup, your teacups, your ….and ends with an ominous silence before saying …YOUR CHILD…Apparently these things are all infested with germs. That small children are walking plague vectors is nothing new to anyone who has spent any time with them, but I guess the implied solution from the Safe Food Agency of boiling all of the aforementioned utensils in high pressure bleach solutions is not really a runner for a wee babby…

The objective is probably to make us aware of germs. It could not be more over the top if they screamed “They’re all around you”. Honestly, its like a peek into the mind of Howard Hughes.

Perhaps the Safe Food Agency could just show this instead , prefaced with “bacteria and fatness…” and then segue into and skip the ad agencies…

Whats REALLY going on inside higher education

Last week, in The Irish Times, an opinion piece was printed on third level education. Penned by Paul Mooney, sometime President of the National College of Ireland, and now back as a fulltime management consultant. To put it mildly it was…astonishing. Fuller than straw men than a wizard of oz convention, it has been mercilessly critiqued. Even the comments below the fold in the Irish times run 10-1 ‘against’ his broad thrust.  I have yet to see a comprehensive piece defending it. Richard Tol, no friend of lazy academics, opened a debate on Irisheconomy, where the public sector is not exactly flavour of the month, and yet the overwhelming perspective of the commentators was that while for sure there were and are issues of concern in irish higher education Mooney’s article was so over the top as to be risible.  The estimable Rob Kitchen, socioeconomic geographer and writer of excellent crime novels on his IrelandafterNAMA blog cocludes “The first rule of publishing in academia is to get your facts straight and to produce an evidence-informed analysis.  If his opinion piece was a student essay, I’d give it a ‘F’.” Other articles in other fora have all addressed a central theme of weakness: that the article by Mooney, despite his profession being one where one would hope the marshalling of evidence is then juxtaposed against theoretical and observational findings to come to  conclusion, is  a farrago of half baked anecdotes and factless musings. And so to our analysis. I should note that this piece is co-authored by my colleague Charles Larkin. For our views on how we might see a transormation in Irish higher education, see this piece.

We below take each paragraph of Paul’s article, and critique it. He asked, and he is correct in doing so, for a debate, so perhaps he will come back on this or on any other blog, in public, and address these and other criticisms. So far he has not.


IN A recent address to students in the University of Limerick, Minister for Education Ruairí Quinn was refreshingly candid. Quinn said neither he, his officials in the Department of Education or the Higher Education Authority (HEA) “had a clue” if lecturers are doing their jobs. He went on to urge the students to be “critical consumers” of the education they receive. Using the analogy of a shop or a restaurant, he went on to say, “People can exercise choice by moving to another supplier of the service”.

The cluelessness of the HEA is something that may come as a surprise to Paul Mooney but it is nothing new to anyone in the Irish education environment. It was clear from the McCarthy Report’s recommendations that the existence of the HEA is questionable and it’s abolition was proposed for a savings of €5m per annum. Perhaps a dose of management consultancy is needed….

The notion of students as a consumer is a flawed metaphor : it is at best incomplete as the ‘consumption’ of higher education gives utility for decades. Asking students partway through their degree to critically evaluate its benefits is akin to asking someone if they enjoyed their meal after the bread rolls have arrived. There are much much richer metaphors for education : the one we like is that of an orchestra, where together the students and lecturers co-create a work which reverberates then and later. The world of music is full of examples where new work is rapturously approved on first iteration but thereafter is seen as shallow, derivative, and falls into disuse. It is also full of slow burners where audiences and critics react with a ‘huh’ or worse a “WHAT” but over time the beauty and utility of the work is seen by the community. Note that in either case the orchestra etc needs to be technically proficient and willing to work hard and the conductor know where they all are going…

So, if you live in Cork and don’t like the standard of lecturing you can pushback against the individual lecturer (who will be marking your term paper) or move to Dublin, Limerick or Galway? I don’t think so!

Quinn’s first challenge should be to examine how the third-level system actually works. Are lecturers doing their jobs?

One might start by asking a more fundamental question: what is the job? Throughout this opinion piece Paul seems to confuse third level education with a mechanistic process involving long class hours towards an aim of producing inputs into a “smart” economy. This is almost 100% what universities are not, and should not be. This confusion of aims is exactly what is causing the sector to become less coherent and to marshal resources in a less efficient fashion. Education differs from training and technical schooling and the utilitarian approach risk unhelpful mission creep and undermines an efficient division of labour within the entire education sector.


The third-level sector operates two semesters each year, typically October to December and January to April. Each semester lasts 13 weeks (normally 12 weeks teaching and one “reading week”). University lecturers effectively teach for 24 weeks each year. During each of those 24 weeks, they teach for a maximum of 16 hours – but this is often negotiated downwards with trade-offs against a range of research and administration duties.

In some cases they don’t teach at all; in others they teach for just a couple of hours each week.

If you are following the numbers here, third-level lecturers who are scheduled to teach for less than six months each year, actually teach for 16 hours (maximum) during each of those 24 weeks. Assuming that they work a 35-hour week, the rest of the time during term and all of their time outside of term, is taken up with preparing lectures, research and administration activity.

Frederick Taylor was  one of the founders of modern industrial sociology and human resource management. His approach was honed in a pig – iron factory, where he introduced and refined the notion of time-and-motion studies. That was 1911. As Jill Lepore’s article in the New Yorker October 12th, 2009 article made clear, the background to Taylor and Taylorist “scientific management” leaves much to be desired.

Evening taking the Taylorist approach at face value, there have been over the last 100 years more than a few minor advances in how work is measured, metricized and managed. It is startling to see such out of date approaches being applied to a complex system. In TCD the first course in management includes a component on Taylor and his successors. The main point that we like the students to take away is that there is in fact no “one best way” to measure and manage. Paul seems to consider, implicitly or explicitly, that universities are, in the terminology of Henry Minzberg, machine bureaucracies. These are most amenable to management by task setting from the center, but of course are only suited to situations where the environment is stable and simple, hardly what faces any knowledge organization. These machine bureaucracies tend to be, by their nature, dominated by the technocratic elite (managers) and have a tendency to proliferate rules and bureaucratic regulations. They are great structures for doing the same thing: they are really poor at innovation. More probably, given the complexity of the task and the context and the need to have qualified staff, a better Minzbergian configuration would be a blend of a professional form such as a professional bureaucracy or an adhocracy. These rely for coordination not on direct standardization of work but on the standardization of skills and mutual adjustment. These have less need of a professional technostrucure

One can only conclude from this that Paul never actually walked round any university to examine what goes on. Teaching contact hours as a metric for activity is as meaningless as the declaration that the amount of work accomplished in a Hollywood film is the amount of minutes it appears on a screen. This approach does worse than ignore, it devalues the research and administrative burden that goes into producing the teaching.


A good lecture is a thing of beauty. The best lecturers are brilliant teachers. They keep themselves and their materials up-to-date, staying close to their specialist subject. They demonstrate a real interest in delivery using a range of engaging teaching techniques eg, problem-based learning.

Staying close to the material is what is often called “research”. A scholar-teacher is that: someone who is both advancing the material and disseminating it.  The desire to put labels on old practices and to confine teaching to a series of “best practices” is shortsighted. It is demoralizing to staff, who feel un-empowered and mistrusted by the management, and, as Carl Schramm wrote in the Wall Street Journal on the 16th of March, is proof that Ireland has become enthralled to educational and education management fads. Concentration on basic literacy, in arts, humanities, sciences and life science, with the fourth level concentrating on more applied/technical/specialist areas, is one approach worth considering, which seems also to be more in line with the emergent thinking from minister quinn.

However, other lecturers are lazy and don’t update their material. When at college myself, we had one lecturer who “worked through a single book” with us. Turned out that he was using that same book and technique for over 15 years. In the worst cases, the notes go from the notebook of the lecturer into the notebooks of the students, without going through the minds of either.

This is simply faulty logic (A subject taught by philosophy departments, which we am sure would be whipped out of the temple of educational efficiency that Mooney envisions.) When I was at college I had a lecturer (probably more than one..) who was a roaring alcoholic (as well as being a superb researcher and usually an inspiring teacher). By analogy therefore all are. Mapping from the anecdotal to the general is a simple failure of logic. It is almost as bad as politicians’ logic: I must do something. This is something. Therefore I must do it.

So, performance under the heading of teaching is a mixed bag. Some lecturers are gifted. Some are awful. And there is no real consequence (upside or downside) for either group. The truth? Students are lucky if they can access lecturers from the inspired group.


Aside from teaching, academics spend their time completing research. This all sounds quite noble. Academics (and this is true for many) are helping Ireland Inc move up the value chain towards becoming a smart economy.

Yes, because the only role of the higher education sector is to act as a training cadre for Ireland Inc (why is it never plc). Strangely, and we speak as two persons tained to graduate level in economics both of whom embrace the capitalistic system ,  the market/economistic idiom falls apart when we look around at Ireland Inc. Lets look at people’s lives and see what does not fall into an open market:

  • Primary Schools
  • Secondary Schools
  • A large part of their health care
  • A significant aspect of their transportation
  • A significant part of their higher education
  • The vast majority of the criminal justice system
  • A large part of the infrastructure of this country
  • And, of course, their families.

Markets are important. They are powerful. They are not everywhere. They are not infallible. The application of economics and the economistic/market idiom to all aspects of human endeavor is a clear representation of an individual that doesn’t truly understand economics. A quick read of Book 5 of Adam Smith’s Wealth of Nations as well as his Theory of Moral Sentiments and Lectures on Jurisprudence will illustrate that the “father of the market economy” has been intellectually hijacked by some rather unsavory interpretations.

Im Paul’s world there is no role for knowledge as its own reward, no role for anything other than a dreary functionalism. What a dull life that would be.

Also the concept of the value chain is itself outmoded. A profit pool analysis would be more apt. We are at the top of the value chain in many areas (such as IT and pharma) but not necessarily reaping the benefits.

Yet if you strip away the layers, you find that a good percentage of university lecturers are actually completing their own research for a PhD during work hours.

What is a “good percentage”? There appears to be no real optimal PhD levels in either production of research or staffing. The issue relates more to the ability to lecture and research.  Doing a PhD shows that one can take a long task, of intensive research, and carry it through to advance in some manner the body of knowledge. It is perhaps for the best that people supervising doctoral or even advanced masters students have such training as in their moving forward the boundaries of knowledge they can better identify same boundaries and assist students to approach same.

Under Mooney’s criteria John Maynard Keynes would be unworthy of a job at an Irish university. It is common that the most brilliant minds in arts, letters, and mathematics are not terribly interested in the qualifications game, beyond that needed to obtain entry to a role. Rigid HR policies, taylor-like here,  undermines greatness in a university. Santayana’s departure from Harvard and his subsequent poor view of universities comes from the bureaucratic thickets that choke creativity and knowledge. The figures for doctorally qualified fulltime academic staff in the Irish universities were released by the HEA under FOI and seem to be:

  • NUIM (92 per cent),
  • NUIG (84 per cent),
  • TCD (82 per cent)
  • DCU (77 per cent),
  • UCD (72 per cent),
  • UCC (66 per cent),
  • UL (61 per cent),
  • DIT (30 per cent),
  • Athlone IT / IT Tallaght (29 per cent),
  • WIT and IT Blanchardstown (25 per cent),
  • Dundalk IT / Sligo IT (23 per cent),
  • CIT (20 per cent).
  • IT Carlow / GMIT (18 per cent each)
  • Letterkenny IT (16 per cent),
  • IT Tralee (19 per cent).
  • Limerick IT (14 per cent)

It still qualifies as research, but the notion that academics are focused on a couple of key topics that will promote Ireland Inc, is not even close to reality. The reality is that almost all academics complete research which interests them personally. While this is adding to the store of knowledge in the world (a good thing), the relevance of this research to the broader world (economic or social progress) often goes unquestioned.

This is quite an astonishing paragraph. It might be excusable from someone who never actually saw a university or third level institution but from a person who spent years as a university president it is gob smacking. The key to gaining PhD qualifications, the basic entry requirement to Irish universities and the ‘masterwork’ that certifies one as being able to do research is interest. If someone is working on an area in which they are not interested they will either not complete the work or it will be a long dragging nightmare. Funding, data, institutional structures, all these are secondary to the innate thirst for knowledge.  Paul’s world would seem to be where people are assigned to work on things that are ex ante KNOWN to be relevant – the process by which this ex ante foresight is achieved is unknown. We are once again into the world of “picking winners” and this is a fools errand (though one the Irish funding bodies do enjoy).  The model put forward is one similar to what people thought Bell Labs were like in the ‘60s. The reality was that they were much more flexible. Even given the fact that the reality differed from the vision in the public’s eye, that world has disappeared, for good. So the proposal is a false type of Bell Labs in conjunction with a vocational training school that is answerable to the Department of Finance. It sounds like an approach that would make even Khrushchev blush.


Beneath the surface of the question “what are our academics researching?”, resides an even more difficult question. What percentage of academics are actually capable of doing research that can add value?

Again this begs the question: what is value? What is the value of research into any area other than that which society, through time, places on it?  What is for example the value of researching the diffusion of stone axes, or how rat neurons can be taught to play games, or whether gold is a safe haven? How can one decide? Who should decide? If we look back at the great mathematicians this approach would put most of them into unemployment but without them we would have no computers, ATMs or other essential aspects of our daily life.

While the answer to this differs between institutions, the percentage of third-level lecturers that have the ability to produce economic or socially useful research is limited.

This can only be written by someone who has never researched. The imperative to produce economically and socially useful research is as galling, pointless and sysiphean  as the impositions of princes and prelates in the past not to affront the authority of the state and the church through their researches. Maybe Paul should read Brecht’s Galileo, as it might improve his understanding of knowledge, the state and why his view is not only unhelpful, but also outright dangerous. Boolean algebra, the foundation of modern society through its ubiquity in IT, languished for decades, along with Bayesian analysis, the other horse that pulls modern computer science. General relativity underpins GPS satellites; Paul Nurse won a nobel prize in medicine for research into cancer prompted by stumbling across mutated yeast cells in a wholly unrelated research area. The more research one does the more connections with research one makes and the more one opens oneself up to serendipity. There is a short, exquisite article on ‘useless research’ here which in effect invokes the venture capital model; try lots, fail lots, win big occasionally. Paul seems to have no place in his world for that.

Yet the system is designed on the mistaken assumption that 100 per cent of academic staff have this ability. Having a post-graduate degree (an entry requirement for this job) means that people in the group are highly educated, but not necessarily smart.

Without doubt brilliant minds in academia have led breakthroughs in technology, medicine etc. But the outputs from these exceptional people mask the fact that the majority of third-level lecturers are just that – people with masters or PhD degrees who should be able to teach really well but are not “researchers” in the sense of being capable of breakthrough thinking.

And of course the only metric of research is the ability to breakthrough. Paul seems to have forgotten that as Einstein said genius is 99% perspiration and 1% inspiration. His view of research seems to be that it consists of a succession of eureka moments; such a view is beyond laughable and again demonstrates a total lack of knowledge of how research progresses or is even undertaken that is positively baffling in someone who ran a third level institution

By granting research time to all academics (and not quantifying expectations or measuring outputs), the system is poorly designed from a productivity standpoint. The outputs don’t measure up against the inputs.

Once more the question is begged: what are the metrics? Are they citations? Papers produced? Number of doctoral candidates matriculated? Patents?  As it stands much of what our “managers” consider to be metrics are in fact inputs or intermediate outputs. Something which modern “scientific management” abhors might be required: judgment. An Excel spreadsheet absolves managers from responsibility since “the numbers don’t lie” but this slipshod logic is just an example of “proofiness”.  “Proofiness”, as the book of the same title by Charles Seife explains, is the fine art of (mis)using mathematics and numbers to prove points that are better answer by judgment. One of the best books on basic statistics ever written is “how to lie with statistics”, written in 1954 by Darryl Huff.  Both hammer home time and time again that final ‘proof’ or ‘decision’ lies in the mind. In the knowledge business, academic managers might wish to understand more and take more responsibility and rely less on questionable metrics and even more questionable consultants.


There are three roadblocks which get in the way of effective performance in the third-level sector.

– Firstly, the culture is not supportive of teaching.

– Secondly, the senior teams are seldom skilled in the area of performance management.

– Thirdly, there is no effective management system which drives performance.


Within the third-level system, the culture typically elevates research above teaching. Teaching duties are sometimes delegated to junior lecturers (sometimes postgraduate students trying to make some money to put themselves through college).

In some universities and colleges, it’s almost a mark of prestige if you don’t give lectures at all – particularly to undergraduate students (sometimes seen as the lowest form of student life). The proactive academics are focused on publications (publish or perish) and getting monetary grants for the organisation. That is prestigious work. Preparing or delivering great lectures to a bunch of undergraduates has nothing like the same prestige.



Most managers in the third-level system are academics (or former academics). Sometimes they have never worked outside of the university system and have no performance benchmarks. Sometimes they hold managerial jobs on a rotational basis (ie, they are really peers rather than bosses) and will be returning to a full-time academic role when their turn is completed.

There is therefore little incentive to make waves while in the chair.

The job of university president has increasingly become boundary management, looking outwards rather than inwards. The enormous legal fees spent annually to deal with performance issues and cases is staggering, money that should be spend internally in improving the educational system for students. Why? Because performance management has never been taken up as a serious topic in the sector and many senior managers are not trained in how to deal with this.

It would be nice to see how much this “staggering” amount is in practice, and more importantly to benchmark this against other sectors. Universities in Ireland employ 15,000 staff, of whom some 2/3 approx. are research/teaching/specialist “frontline” staff.  The issue here is whether or not there is  more or less spent in legal fees on performance issues than in any other group of 10000 mostly highly qualified workers. A casual glance at the labor court website suggests otherwise. In 2010 the LC made 800 plus recommendations; that suggests approx. 4800 in the 5-year period 2005-11, during which it seems that 48 involved universities. As a strategic HR consultant I am sure Paul has more detailed data, but the use of fuzzy and emotive language such as this reflects poorly on anyone with any research background.


There is often no performance management system in place in third-level institutions for the academic staff. Sometimes systems are in place but they have effectively died on the vine. No targets or standards set, just a requirement to teach X syllabus to Y students. And the quality of that teaching normally cannot be observed.

This is simply not the case. PMDS is required in all universities. Can it be honoured more in the breach than in the full? Of course, but that performance management systems are gamble is a fact across all organizations. Again, his blanket assertion that teaching quality cannot be observed is interesting. In part he is of course 100% correct: teaching quality is inherently fuzzy, and is a combination of an art and a science and has a very long lag. Thus to fully ascertain the quality of teaching requires perhaps decades of observation of people who got different styles and forms of teaching. But one suspects that what he means is that teaching itself is not observed. Again at least in TCD that is not the case. To progress to any level one has to show peer and other assessment of teaching practice, which at the lower levels accounts for up to 1/3 of the weight for promotion. As part of regular (externally, internationally conducted) quality audits observation of teachingand discussions with students at all levels are conducted. Quality in teaching is fuzzy: but that means neither that elements are unobserved or overlooked.

In relation to research, there are very few output standards and almost no downside to not meeting these.

Apart of course from the fact that, again, this is not the case  in universities that aspire to adequacy, where a (not terribly stringent) requirement to achieve measurable output standards (x papers, y books) per annum is the norm with those that do not so meet standard being, eventually, given more of other work to do.

Yes, there is a measurable outcome in terms of the actual students marks – but students are clever and work around the bad lecturers. Even where the outcomes are poor, there is usually no downside for a lecturer if students continually underachieve. Many colleges, recognising this, have set up peer support schemes to help lecturers improve their teaching and these offer really useful development opportunities. Because these are normally voluntary arrangements, in my experience it is those lecturers who are already brilliant who take up this opportunity; the poorer lecturers keep their heads below the parapet.

This assumes that the relevant metric to ensure quality of teaching is student-measured outcomes. Again, anyone with a cursory knowledge of university education processes will be hyper aware of the danger of grade inflation. By Paul’s analysis the better teachers will be the ones that find themselves giving higher percentages of better grade, and presumably this will then result in their getting more remuneration by being measurably better. Within a year this will result in every student getting a first in every subject.  Lecturers that produce “underachieving” student cohorts would very quickly find themselves ticked off by their head of department as their colleagues complain of receiving students who lack the ability to hack 2nd, 3rd or 4th year coursework or would receive negative comments from the external examiner or see a sudden stop in their students being accepted to good graduate schools.

There has been talk for years of introducing a formal performance management system across the sector and some organisations have made progress – but it is hotch potch, depending on the appetite and the managerial skills in place within individual institutions.


It is difficult not to conclude that the system is designed more on the basis of convenience for the academic staff (eg, no classes before 10am on Monday and none on Friday afternoon) rather than for the education of the students. Without doubt some courses are quite onerous in terms of class contact time and related project work. But a huge number of courses are much lighter in terms of teaching and class contact time.

In fact this is untrue on several levels. First and foremost the drivers of few lectures on Friday afternoon tend to be the students union. Irish students go home to mammy for the weekend and tend to take the bus/train/lift then. And, there is nothing wrong with that. Second,  perhaps the NCI have a policy of not teaching before 1000h, but in the case of most universities there are classes scheduled early and late. Of course the physical assets can be sweated more: but try getting a room free between 0800-1800 Monday-Friday during term time and one will see that there is very little slack in that system.

Short contact hours and really long holidays is not good preparation for students trying to get ready for what lies ahead.

Students, even technical ones, read for a degree. Class hours are one part of this. Library hours are another. Time spent drinking coffee or other beverages and discussing the subject with faculty and other students is a further element. Paul constantly, pointedly, confuses in-class teaching with learning. My experience, both sides, is that it is not. Teachers teach but only learners can learn. The model envisioned is one similar to the teacher-training colleges where attendance is taken and the day is rigidly organized. This model is not conducive to most subjects. It also entirely ignores the ability for student extra-curricular activities to be highly educational. One only has to attend a Hist or Phil debate in TCD some evening to see how students, on their own, develop their own abilities and learn things from each other.


Based on my experience I would propose the following action:


The third-level sector should move from two to three semesters each year. This would increase the teaching cycle from 24 weeks to 36 weeks a year. It would be a much better training cycle for students (who have to face a 46-48 week-long year in the real world when they exit university). It would provide a 50 per cent productivity increase with four-year degrees being completed in less than three years.

Training. Because that is what we do. We train people, to be…. what? Paul, we don’t.  Universities if they are doing anything like a decent job train people to THINK. Thinking is really hard. It takes time. And some things take time to sink in.


We need a robust and transparent system of performance evaluation (not “I’m working from home marking papers”). This should focus on evidence of changes made in teaching practice and set specific teaching standards to be reached. It should also address the research output to be produced (and this cannot be the pursuit of personal interests). Given the complexity of the sector and the range of topics taught, this is not simple. But it will never happen if we don’t start the dialogue now.

One wonders what is wrong with working at home marking papers?  Does Paul think that all work in all disciplines must be done at the desk/lab?  The late Provost of Trinity College, Prof. Bill Watts, would be regularly seen departing in his car for fieldwork. Prof. JV Luce’s archeological trips and Prof. Moody’s journeys to Kew in London all involved being out of the office but doing their work, many times with students in tow. If a french lecturer sits in a cafe reading a new book of critical essays on french film, is that work? If a science professor wanders round a factory talking to a friend about a new process, is that work? What if an economist blogs in their own time on the state of the economy? What if a genetics professor attends Electric Picnic and (in between listening to the music) gives some talks on genetic? This view of performance management is simply feeble-minded.

What then are these standards of teaching (oh, yes, the percentage of high grades) and who shall set them? Who will set the research areas to be pursued? Paul is clearly blissfully unaware of the massive failure of governments worldwide to “pick winners”.


All university staff should teach, unless they have a full-time research schedule, which is signed off by a high level in-house committee. “Not teaching” should be the rare exception rather than the norm.

You mean, like it is now?


Every high-performance work organisation has an ability to address underperformance. Now adequate protections have to be built into the system to ensure that people who have a different political viewpoint to the management or simply hit a black patch are protected. But here I am talking about dealing with chronic underperformers, the five people which everyone in the organisation can name in five minutes who have not done a decent days work since the Millennium. They have no role to play in a modern university.

So that’s 40 staff across the university sector we need to deal with…. If only it was that simple.


No doubt this article will be labelled as unfair and a witch-hunt. The suggested restrictions of academic freedom will be seen as evidence of a philistine mind at work, someone who doesn’t understand or appreciate the outputs from 1,000-plus years of academic endeavour, polluted by the narrow concerns of economics.

No, it will be pulled apart (like this effort) by persons whose training is in deconstructing and reassembling complex knowledge. That may result in criticism, but then that’s life. Criticism is a communication process. Despite the barrage of same Paul has not so far responded. Such a response would be welcome.

And there will be a range of exceptions reported, notable academics working long hours and making key breakthroughs to disprove the points made here.

“Im not anti-academic…some of my best friends are academics…But you know, most of them just aren’t like us. but some try to integrate”  Feel free to insert any other group noun for academic, and read it aloud. Options include : Jews, blacks, asylum seekers, catholics, protestants…..

Yes this article is focused on the negative. It ignores the culture of collaboration which exists within the system and the sharing of information. It also ignores the productivity gains achieved in recent years, with the numbers of students now completing third-level education at an all-time high. Perhaps, the greatest sin, is that I have ignored the fact that Irish higher education is underfunded vis a vis international comparators.

Yes, except it really isn’t. The problem in Irish higher education is of fuzzy mission creep not absolute underfunding. And, perhaps coloured by personal experience, Paul uses the buly pulpit of his (ex) presidential role to by his own admission willfully ignore.

'The Irish higher education system has served Irish society well in recent decades, as it responded to changes in the social, economic and cultural environment. It has provided society with the knowledge and skills needed to negotiate the changing global landscape, where new understandings, new challenges and new technologies are daily changing the realities we face and our relationships with the world. And it has opened new opportunities for personal development and advancement to a generation of citizens. The high-calibre graduates produced by the higher education system have been critical to the development of high-technology indigenous industry and to the attraction of very substantial foreign direct investment into the country, resulting in the creation of high-quality, well-paid employment, economic growth, and a higher standard of living.''  

So said the Hunt report: a document that was by no means written by starry eyed dreamers amongst the ivory towers. Had every aspect of Irish public life been as adequate as the university sector we might be in a better place.

My hope is that while the views expressed are controversial, this will start a dialogue. In a system that is almost 100 per cent funded by the State, we have the right to expect the highest standards and outputs.

Almost 100% funded…no, its not. Perhaps NCI was but to take TCD as an example of a university, of the €266m total spend in 2011 €71m came from state grants, and €46m from ‘free fees’ paid to the university in lieu of fees from students. €55m came from competitive exchequer funded research initiatives. Thus the university obtained 64% of its cost from the state. In fact if one excludes the free fees, which one should (students are still ‘charged’ fees, but the state then fots the nominal bill) as this is political this percentage falls to 46%. Similar figures can be obtained with a quick look at the other university annual reports.

Ruairí Quinn is paid to oversee the education system. While he cannot be responsible for every single individual or practice employed, he is responsible for asking the big questions.

He isn’t paid to oversee the education system. The Department of Education and Skills has been derisively termed the “Department of Schools and Teachers” since it’s role is limited to legislation, administration and payroll. One of the main problems with the education system is that it’s scattered. There is no single vision, no single line of management. He is at best charged with policy formation and implementation at a political level.

And it doesn’t get any bigger than managing the performance of the academic staff across the sector. We need to have the courage to begin to discuss and address these issues head on.

It does get much bigger: even within education there are lots of much bigger problems. I would count kiddies in prefabs their parents were in a much bigger problem, as would I suspect most parents. Similarly the role of universities, the patronage of schools, the lamentable science-math-language skills, all these are of far greater import than how to deal with academics.   We do need a discussion: but facts, the application of modern forms of managerial analysis, logically coherent arguments and a holistic perspective of society as consisting of many stakeholders would be a good start. This op-ed fails on all levels.

Heel Prick Cards and National Priorities

I guess I had been vaguely aware of the controversy about the retention of “heel prick cards”, the cards containing the blood samples of over 1.5m irish born babies, from the heel prick blood test used on newborns.  This test is used to diagnose a variety of diseases, genetic and otherwise. Its been proven to be a valuable tool and is absolutely standard. The cards on which the blood samples are stored have up to now been retained, indefinitely. This is it seems about to change

In a nutshell the Data Protection Commissioner, working of course within his powers and quite properly as the law stands, has said that as these are personal data they must not be retained without permission of the person. The minister for health, a medical doctor we should recall, has agreed that these must be destroyed after 11 years retention.

I have to say this causes me great disquiet. First, this represents a unique national resource, containing a databank of the genetic code of the population. The research potential of this is literally incalculable. At a time when irish genetic scientists are forging ahead (in shrinking resources) on unravelling genetic deseases that are overly prevalent in the irish population (coeliac, SADS, and CF being amongst them) it makes no sense to discard such a resource.  In fact, it is a blunder of the first water.

Second, we have an opportunity here to engage in cold case analysis for unsolved crimes. As forensic science advances genetic material is more readily extractable from old evidence.  Running this against this national database can only assist the police in closing open unsolved cases. I am aware of the civil liberties arguments on genetic databases, but these tend in my view to be outweighed by the possibility of catching rapist, murderers and other criminals, no matter how much they think they have got away with it.

Yes, there is a legal barrier to this at present. But our governments over the years have shown themselves well able to act swiftly (if not always wisel) to put in place emergency legislation to protect financial interests. Lets amend the data protection laws, to give people a fortnight to ask for their samples to be destroyed, and then move on. This is a precious national resource and must be retained. The state in its foundation suffered a catastrophic loss of records with the philistines who colluded in the destruction of the records in the Four Courts. Lets not have further generations look back on this with a similar sense of “what were they thinking” . In a week when the government still have not cleared the use of personal data with the Data Protection Commission in order to chase households for the household charge they can ill afford to lurk behind Billy Hawkes in this regard. Lets see some leadership, some imaginative thinking from the Irish body politic…you in the back, stop sniggering….

Mathematics and science education : a modest proposal….

Its generally agreed that for a whole variety of reasons there is a crisis in terms of Irish scientific and mathematical edication, resulting in students going into universities who struggle with the move from a more rote learning to a more scientific reasoning based learning approach. Indeed, there is a crisis in upskiling mathematics teachers who have (and this to me is shocking) no tertiary qualifications in mathematics. Engineers Ireland (with whom I have zero involvement btw) have talked about how engineers, applied mathematicians, can support mathematics education

Its also agreed that there is an unemployment crisis. We have 35,000 professional/technical on the live register. A goodly proportion of these must have tertiary education in areas such as engineering or other areas where mathematics in an applied sense are the bread and butter of the task. Without in any way denigrating higherlevel professional  education qualifications, it cannot take more than three or four months to impart a set of focused mathematical pedagogic skills. Other countries do this.  Clearly, on the job monitoring and evaluation will be needed, but can we not think outside the box and offer incentives to those with tertiary mathematical education to convert to teaching? We might indeed consider looking for people to teach physics, mechanics and other applied mathematics course, or even other science disciplines.

Lets take a couple of thousand engineers or mathematically intensive scientists on the dole, and offer them a 10% premium on the existing teacher salaries, plus free intensive pedagogic training, and deploy them into the second level school system, focused on bringing their experience to bear on the mathematics and science curricula. Of course, ASTI/TUI would explode…. But this would be an opportunity to see whether the system can think outside the box and in a joined up manner. Lets also up the incentive to students, giving  bonus points for math, and extra vonus points for taking more than one math subject (say 10% on each subject cumulative, so someone who take say physics, mechanics and math gets a 30% bonus on each ). There is a need and a resource that with some imagination can be brought together. Can we as a polity do this?  I doubt it can.

The best man for a job in finance is probably a woman

This post is an extended version of an opinion piece published on 17 March in the Irish Examiner:

Last week we saw international women’s day, a day that in theory is devoted to the celebration of female achievement. It is celebrated as a public holiday in some countries, mainly those part of the ex soviet bloc, where the holiday originated. Originally an overtly political event that trumpeted the (real, if with mixed outcomes) achievements of the soviet state in enshrining women’s rights, it has more generally evolved to be a celebration of women and female achievements. This weekend sees Mothers Day, a very mobile feast, which of course celebrates mothers and motherhood.

Perhaps the time then is right to consider what finance has to say about women, and in particular to look at some recent research. I dont refer here to personal financial management, although this is an area where women also show distinct differences, but to ‘professional’ financial activities.

The news, gentlemen, is not good: women, qua women, exhibit traits which whether due to the subtleties of the female brain or due to culture, might well make them better financial operatives. This is not to celebrate naive housewife economics, whether the Swabian or Lincolnshire variety so beloved of Dr. Merkel and Mrs. Thatcher. There is a large and emergng body of literature on what we might call the neurophysiology of risk, and among that is the discussion on gender differences. Gillian Tett of the Financial Times has an interesting opinion piece on this.

First, we all know that boys will be boys. In finance this manifests itself as excessive overconfidence by males. Males trade more, take more risk and as a consequence tend to find that on average monies managed by males show greater volatility. Women in general take less risk and adopt a more ‘steady’ hand, avoiding excessive trading costs. This extends from trading to corporate activities, where recent evidence suggests that companies run by females engage in less risky activities, with lower merger and acquisition activities and less debt issue.

Second there have recently emerged a number of papers on women on boards. My research indicates that the appointment of women to boards is market-negative. This makes sense when you consider the earlier findings; boards more female dominated will take less risk, and recent DCU research notes that this will result in lower (short run) returns. Changing board structures to mandate more female members, something that I would wholeheartedly support, will thus have shortterm costs. In the longer term however there is recent evidence that female chief finance officers obtain loan financing that is significantly lower than the average, demonstrating that while the equity market may penalize the loan market values this tradeoff of longer-term slower sustainability for short-term returns. The market, we should recall, is both a valuation and a voting machine. Thus, negative reactions to female activities is a function of both and if there are conscious or unconscious biases (and some research suggests there are) in either by the dominant group (males) these need to be considered.

Thus we find that women in financial situations exhibit a greater aversion to taking risk than do men. This finding is not just evident from these ‘top down’ studies, but is also evident when we survey individuals. Again my own research on Irish adults is in line with international findings. Women show a greater reluctance to take financial risks and this maps to funds managed by women whether on their own behalf or for others. While this might be something valued by some kinds of funds the costs, in terms of lower volatility, to get higher return you have to accept higher volatility. Finance has now moved to the acceptance that not only does risk matter but the perception of risk by the risk taker matters. Risk and feelings about risk go together, and women tend to be more affected by (prospective or actual) risk taking than do men. Females worry more about financial activities than men

Third, research indicates that women are more selfless and less selfish than men in economic and financial transactions. Thus financial settings where ‘winner takes all’ are more likely to be attractive to and dominated by men. The testosterone driven ‘you eat what you kill’ attitude of investment banking and trading rooms is thus the natural environment of men, but of course this as we know comes at the cost of overconfidence and excessive risk taking. Boys will be boys. In more social financial situations, such as startups and venture capital situations where success is inherently to be shared, we find as we do that more balanced gender in the investing groups has a major effect. A caveat however is that this depends very significantly on social capital. While women and men may have similar levels of social capital, important in areas such as financial analysts and venture capital, women gain less from this than men. There is some evidence, quell surprise, that there is discrimination against women in the financial industry. Female fund managers, despite having almost more consistent performance than males attract lower inflows; this prejudice also follows through to ‘foreign sounding’ names it should be noted. IPOs with more female involvement tend to be looked on less favorably than those without. Women can indulge in a touch of Schadenfreude however as startups with higher degrees of gender discrimination show markedly lower survival rates., while the higher the percentage of females in first hires the greater the likelihood of success. This is of course entirely in line with the risktaking and selfish approach of men versus the more inclusive approach of women in economic activity, as startups require both drive and collaboration to get over the first few months.

The bottom line then is that if you seek shortterm gains, more males would be optimal, while for longterm consistent but per period lower returns, more female. The hare and the tortoise analogy comes to mind. The implications are clear for organizations with different time horizons such as pension funds versus trading houses, and for companies with different time horizons in terms of corporate strategy. A system which is set up and dominated by men is unlikely to be conducive to women success, unless they share the same risk attributes as do men. We need to consider that financial markets are social constructs, and that gender differences (whether innate or cultural) are likely to both impact on that and to require us to consider them when analysing or teaching around them.