But there was a problem when pay awards appeared to "bear no relation to performance" - a situation that "undermines trust in the whole system", he said.

BBC: Labour calls for 'responsible and better' capitalism

It seems very likely that allowing the principals to choose which teachers to lay off will most likely result in a better teaching staff than a layoff strategy based entirely on a criteria with no relation to performance.

FORBES: Are Unions Anti-Competitive?

Javier Gil-Bazo and Pablo Ruiz-Verdu studied the relationship between mutual fund performance, management fees, commissions and flow of funds in The Relation between Price and Performance in the Mutual Fund Industry.

FORBES: Na?ve Investors Taken to the Cleaners

Mr Cable told four School Reporters from Guildford County School in Surrey that despite the recent good press over his performance in relation to the economy, he expected a "good kicking" in the future.

BBC: Crunch questions for top politicians