GovernmentPublicPrivate Sector Delineation Issues

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GovernmentPublicPrivate Sector Delineation Issues

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Non-profit institutions - NPISH. Example - Oxfam ... of the status of non-profit institutions in both the SNA ... of non-profit institutions (7) ... – PowerPoint PPT presentation

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Title: GovernmentPublicPrivate Sector Delineation Issues

1
Government/Public/Private Sector - Delineation
Issues

GRAHAM JENKINSON
OFFICE FOR NATIONAL STATISTICS

2
More CONTROL Less
Public Sector
Private Sector
Non- Market ie Sales lt50 of costs Market ie S
ales gt50 of costs
General government Examples HM Treasury Kent
County Council
Non-profit institutions - NPISH Example -
Oxfam (includes households)
Public corporations - both real and quasi -
non -government. Examples Post Office London
Underground
Private market Financial and non-financial
corporations Example British Airways
3
Important issues

UK examples
EU focus on general government
Focus on improving SNA
but also greater harmonisation with IPSAS

4
Many Issues identified

Agree - the priorities

5
Recommendation 1

The definition of control in the SNA be extended
to include the power to receive a benefit (other
than from tax)
The proposed change will result, correctly, in
the classification of pension funds for public
sector employees in the private sector

6
Recommendation 2

The treatment of foreign subsidiaries of public
corporations cannot be harmonised.
But recommend that separate records of domestic
and foreign subsidiaries should be maintained in
the financial accounting data so that the correct
economic statistics can be derived.

7
Recommendation 3

Elaborations from IPSAS of the definition of
control should be added to the text of SNA
In general, more elaboration of the definitions
of control is needed in both the SNA and the
IPSASs to ensure uniform treatment

8
Recommendation 4

Common standards should be developed on the
treatment of Special Purpose Vehicles jointly for
both SNA and IPSASs - to fill the current vacuum
Recommendation 5
Guidance should be added to SNA on the
statistical treatment of public - private joint
ventures
(Units cannot be partitioned in SNA.)

9
Recommendation 6

Clarify SNA treatment of corporations jointly
controlled by several public sector entities
Consider clarify of IPSASs on this point
(Corporations owned by governments of more than
one country?)

10
Recommendation 7

Further clarification of the status of non-profit
institutions in both the SNA and the IPSASs
(Issue is interpretation of the requirement to
control and mainly finance in current SNA.)

11
Recommendation 8

SNA should explain more fully the concept of
economically significant prices so that it can be
applied more uniformly.
Recommendation 9
Research and clarify how entities of the public
sector are classified (A relaxation of the IPSAS
definition of a GBE would improve harmonisation.)

12
Recommendation 10

To facilitate the compilation of economic
statistics, it is desirable to maintain financial
accounting data in sufficient detail to meet the
needs of economic statistics.
(SNA aggregates, IPSAS and GFS consolidate -
should SNA change?)

13
How to package all this?

Clear it is a clarification of SNA
Not a fundamental change

14
Two big issues

Better definition of control together with
indicators of control
Better definition of economically significant
prices with supporting examples
Other issues are relatively minor

15

ANY QUESTIONS ?
16
Public sector boundary

Change the definition of control in the SNA to
include
the power to receive a benefit from the
controlled entity (1)
explanation that the power to control must be
presently exercisable and that regulatory powers
do not imply control (3)
use of a decision tree (-)

17
Clarification and elaboration of the SNA of