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ESCAP Statistics Division
ESCAP Statistics Division
 
Committee on Statistics, 11th Session    
Committee on Statistics, 11th Session
Bangkok, 24-26 November 1998

E/ESCAP/STAT.11/new zealand
19 August 1998
ORIGINAL: ENGLISH

ECONOMIC AND SOCIAL COMMISSION FOR ASIA AND THE PACIFIC

Committee on Statistics
24-26 November 1998
Bangkok

New Zealand Country Paper

OVERVIEW

STATISTICAL IMPROVEMENTS

  • GREATER USE OF ADMINISTRATIVE DATA
    • Economic Statistics Strategy
    • Data Integration Feasibility Study
  • ECONOMIC STATISTICS
    • Balance of Payments
    • National Accounts
    • Consumers Price Index
  • SOCIAL AND POPULATION STATISTICS
    • Social Policy
      • Longitudinal Survey
      • Time Use Survey
    • Demography.
      • Ethnic Data Collection

INFORMATION TECHNOLOGY INITIATIVES

  • SPROCET
  • PC/TRADE
  • BUSINESS FRAME

TECHNICAL CO-OPERATION

  • CO-OPERATIVE INITIATIVES

Overview

In economic statistics, the objectives of Statistics New Zealand's current development programme include:

  • measures to improve accuracy and reduce the level of revisions in quarterly GDP
  • extensions to, and improved quality of, institutional sector accounts
  • development of a Tourism Satellite Account
  • extensions to quarterly BoP statistics
  • complete BPM5 and SNA 93 implementation
  • new and improved inflation measures
  • improved statistics on services
  • extend range of short-term economic indicators

In the coming year agriculture, environment, Information Technology, savings and investment and energy statistics are areas requiring attention.

In household statistics, the objectives of the current development programme include:

  • preparation for the 2001 Census of Population
  • development of a household longitudinal survey on income and employment dynamics
  • undertaking a comprehensive time-use survey
  • enhanced co-ordination of social statistics collected by other agencies
  • upgrading employment statistics
  • integrating tax and welfare benefit data to provide a source of income and employment statistics

In the coming year income distribution statistics is seen as an area requiring attention.

Overall, Statistics New Zealand plans to:

  • take further advantage of the investments made in recent years in upgrading its information technology base to improve output quality and efficiency of operations, and to emphasise the Internet as the core access channel to our statistics
  • play a more active role in co-ordinating and promoting the quality of official statistics produced outside Statistics New Zealand
  • strengthen the contribution of our people by implementing a programme of investment in staff training in both statistical and management skills.

To better reflect the nature of the various outputs and processes of the department, the internal organisation of Statistics New Zealand was recently restructured into five groups:

  • Economic Statistics Group
  • Social and Population Statistics Group
  • Information and Technology Services Group
  • Statistical Development Group (statistical methodologies); and
  • Office of the Government Statistician (human resources, finance and planning functions).

Statistical Improvements

Greater Use of Administrative Data

Economic Statistics Strategy

Impacting on virtually all components of the Economic Statistics, the Economic Statistics Strategy represents the most important initiative recently undertaken by Statistics New Zealand. The strategy's objective is to redesign present survey methodology to capture cost efficiencies and reduce respondent burden whilst meeting emerging data requirements and supporting improvements in accuracy.

Where possible, the strategy seeks to use administrative data sources to collect information concerning small/medium business in preference to surveys. For example, data currently collected by branches of government are being incorporated into statistical outputs, reducing both respondent compliance costs and explicit survey costs as well as making the outputs more timely. Most of the data used to produce Government Sector statistics is now sourced from the administration records of the New Zealand Treasury's Crown Financial Information System. The previous collection vehicle, the Crown Enterprise Survey, has ceased.

Administrative data has also expanded the range of statistical outputs. A monthly Business Activity Indicator Series, developed using sales and expenses data collected to assess firms' Goods and Services Tax (GST) liabilities, provides comprehensive coverage of economic activity in 80 industries. Few industries are exempt from GST, as GST registration is compulsory for businesses whose turnover exceeds $30,000. Apart from adding to the range of short-term statistics available for forecasting and economic monitoring, and providing added data on services, the new indicator will feed into both the existing quarterly production-based GDP measure and an income-based GDP measure currently in development.

In our recently completed round of economic censuses, data derived from annual tax returns has been used to replace direct surveying for up to 75% of firms (the smaller and less complex businesses). In our 1998 annual financial survey of enterprises, similar data will be used to eliminate surveying for a third of firms in the sample.

Data Integration Feasibility Study

In 1997, the department undertook a feasibility study into the costs and benefits of integrating administrative data collected by different government agencies to produce new social statistics. The department consulted with 29 government agencies and concluded that, although new statistics were feasible, several outstanding issues remain, notably, data confidentiality and the protection of individual privacy. The development of an approval process and protocols to govern data integration are still required. However, the use of administrative data sources will enhance the range of outputs produced.

Economic Statistics

Balance of Payments

There are two main initiatives being undertaken to improve Balance of Payments statistics: implementing the requirements of the fifth edition of the International Monetary Fund's Balance of Payments Manual (BPM5), and developing a quarterly capital account.

Balance of payments statistics are currently compiled according to the fourth edition of the International Monetary Fund's Manual (BPM4). Implementation of BPM5, to be undertaken in two stages, will better reflect the importance of services, adopt a more realistic threshold for portfolio investment, and increase the commonality between Balance of Payments and National Accounting methodologies.

Stage one was largely presentational and involved republication of the March 1998 quarter Balance of Payments and a statement of New Zealand's International Investment Position for the year ended March 1997 on a BPM5 basis, given existing survey data. The present capital account of the Balance of Payment was renamed as the financial account and migrants transfers moved from the current account to a redefined capital account. Other changes included a more detailed services breakdown, an expanded coverage of portfolio investment, and changes in the breakdown of direct, portfolio and other investment.

Stage two, to be published in 1999, will present financial/capital flows and stocks on the new direct investment criterion of 10 percent, together with a detailed breakdown of reserves, estimates of investment income, and separate estimates for portfolio investment income and other investment income. Other changes include an expanded coverage of both travel (to capture the expenditure of students and medical patients who have travelled abroad for more than one year), and an expanded coverage of financial services.

Quarterly financial accounts and international investment position statements are being developed. When finished they will enable Statistics New Zealand for the first time to provide comprehensive information each quarter on New Zealand's international assets and liabilities and related financial flows.

The move to BPM5 and the creation of quarterly financial accounts are envisaged to be finished by 2001 as new collection systems and methodologies are introduced.

National Accounts

A number of initiatives designed to expand the range of statistical outputs and improve the quality of existing series have been undertaken. New statistical outputs include the development of a capital stock series for use in productivity analysis and improved depreciation measures, a tourism satellite account, and a quarterly income-based measure of GDP. Experimental chain-linked measures of constant price expenditure on GDP (GDP(E)) have recently been created and released for public comment. The publication of the 1996 Inter-Industry Study in late 1999 will benchmark the New Zealand System of National Accounts according to SNA93 concepts and will also introduce ANZSIC (Australia and New Zealand Standard Industry Classification) industry definitions. Work will soon start on the development of an Input/Output framework for balancing constant price GDP and GDP(E), which will improve the quality of both quarterly GDP series.

Improvements by other sections in the Economic Statistics Group have made these initiatives possible. The redevelopment by Business Statistics of the Producer's Price Index to incorporate commodity pricing has created the potential for constant price GDP/GDP(E) balancing. The inclusion by Business Surveys of an institutional sector dimension to the Annual Enterprise Survey will upgrade the status of the currently experimental institutional sector accounts into an official series.

Consumers Price Index

The latest five year review of New Zealand's Consumers Price Index was completed in 1997, and recommended that Statistics New Zealand introduce a number of fundamental changes to the CPI. The thrust behind the major recommendations was the belief that a single measure of price change, such as the CPI, cannot satisfactorily meet all the needs of users. Statistics New Zealand is to produce three measures of consumer price change:

  • an acquisitions-based index, excluding interest payments, focused on measuring inflation, which would be regarded as an official CPI
  • an actual outlays index which would include interest payments reflecting the costs incurred by households; and
  • a consumption-based series, consistent with national accounts concepts.

In addition, a real disposable income index is to be developed to measure changes in the purchasing power of different household groups resulting from changes to taxes, incomes and prices.

International Contacts

Statistics New Zealand staff are active participants in a number of international statistical working groups, including the Voorburg group on Business Statistics, the Ottawa group on price statistics, the Canberra group on Capital Stock measurement, and the International Round Table on Business Frames. We attend OECD-sponsored meetings on National Accounts and we have participated in a recent IMF-sponsored survey on comparative measurement of overseas portfolio investment. The 1999 meeting of the Voorburg Group and the 2000 meeting of the International Roundtable on Business Frames will both be held in New Zealand.

Social and Population Statistics

Social Policy

Longitudinal Survey

In 1997, work began on developing a methodology for a longitudinal survey of income dynamics. The objectives of the survey are to highlight changes in individual and family income and assets over time, and to determine influencing factors. Resulting statistics will examine the average duration on a particular income level, the probabilities of movement between income states and the frequency of employment events (such as unemployment). Predictors of events, duration, frequencies and probabilities will also be considered, such as the impact of education levels on employment status and the probability of changing status. The project is currently developmental. Additional funding to implement the survey will ultimately be required. However, work has started on the specification of the detailed content of the survey, the electronic questionnaire and the sample design.

Time Use Survey

A recent government initiative, New Zealand's first major Time Use Survey is intended to provide statistics on the time commitments of New Zealanders. The focus of the survey is on collecting information from approximately 8,500 people, aged 12 years and over, regarding the time spent in productive activities. Productive activities can include education and training, leisure and personal care, as well as paid work. The resulting statistics will improve government policy making in the health, employment and welfare sectors.

Demography

Ethnic Data Collection

The measurement of ethnicity continues to present challenges to those interested in analysing the ethnic composition of New Zealand's population, differentials and population growth. Ethnicity in New Zealand has traditionally been measured in terms of the reported ethnic origins of a person's ancestors. However, for many New Zealanders the notion of belonging to a single ethnic group is considered inappropriate and offensive. As a result, the definition of ethnicity has broadened extensively in recent years as ethnicity has become accepted as something more intricate, involving personal identification, perception and choice.

While the broadening definition of ethnicity has allowed multiple responses to be accommodated in the collection of official statistics, it means that different ethnic groups are no longer mutually exclusive. For example, someone identifying with Maori, Pacific Islands and Asian ethnic groups would be included in each of those populations in population projections. This is considered a problem by some data users who resort to prioritising the responses so that the data sums to 100%. However, this approach undercounts those groups lower in the priority hierarchy, notably Pacific Islands, Asian and
European populations. Prioritising ethnic response constrains the data in ways which were never intended when it was collected and processed. Despite the problems for data users, the shift to a self-identification concept has made the collection of ethnic data more acceptable to respondents.

Information Technology Initiatives

Statistics New Zealand has been undertaking a major programme to re-engineer its computing environment to improve reliability and timeliness in producing key statistics, reduce ongoing production costs, increase the range of statistical services and improve the flexibility of systems and processes. A major milestone in the process will be the decommissioning at the end of this year of the department's mainframe computer, with all processing then being undertaken in a client-server environment. Major features of the development have been the adoption of Lotus Notes as the corporate information management environment, development of new processing systems using Lotus Notes, Sybase and Centura software, the use of SAS and Excel as analysis tools, and the development of the SNZ website as the major information gateway to the department. A number of major infrastructure systems for the Business Register, classifications and meta-data have also been a key feature of the strategy.

SProceT

The need for a standardised survey processing system for use in the surveys currently undertaken by Statistics New Zealand has been apparent for some time. SProceT, Statistics New Zealand's reusable Survey Processing Template, is designed to improve productivity by providing a standardised data capture module that can be employed in the collection of different survey information. As a result, SProceT has made it easier for processing staff to be rotated between surveys, has improved publication times, and has reduced processing errors. A standardised data capture system has also reduced development costs for new surveys.

Written in Lotus Notes, SProceT's flexibility is ideal in managing the inherent differences between surveys. Its advantage over other systems is that it can employ Lotus Notes Views to undertake the tasks required in the data capture - output editing process. The dynamic nature of the Views and Categories features of Lotus Notes software has transformed processes that were previously large batch jobs into interactive processing, and it allows SProceT to be integrated with the Business Register and the Business Surveys database of respondent information. The system is to be used for several surveys over the next 18 months, including the Quarterly Manufacturing Survey, the Quarterly Employment Survey, the Retail Trade Survey and the Annual Enterprise Survey. SProceT will eventually become the standard processing system for all business surveys.

Future technical directions are likely to focus on electronic interfaces to enable respondents to supply data electronically or via fax, the Internet, or through touch-tone data entry.

PC/Trade

Developed for collecting and analysing overseas trade data, PC/Trade is intended for use by small Pacific countries with limited staffing and computing resources. Designed in the mid 1980's for a PC DOS environment, the latest version is based on Microsoft Access97 and employs a graphical user interface with full Windows95 functionality. Although created for the needs of the South Pacific Commission region, PC/Trade has been successfully employed in the compilation of statistics by other small countries, including Albania.

PC/TRADE provides a user friendly data entry facility with built-in reporting modules to simplify the creation of a variety of tabulated reports suitable for the compilation of National Accounts. In addition, data analysis is possible either from within PC/Trade or via a wide variety of other spreadsheet or database applications. In countries where PC/Trade has been installed statistical agencies are now able to provide accurate and timely trade information to their governments, greatly assisting in the formulation of import duty legislation as well as the compilation of statistics.

During 1998 PC/Trade for Windows95 has been installed in Niue, Tuvalu, Cook Islands, French Polynesia, Republic Of Palau and the Northern Marianas. Installation visits planned for 1999 include Kiribati, Marshall Islands, Vanuatu and Guam with other countries such as Samoa, Tonga and Nauru possibilities depending on resource availability.

Business Frame

The Business Frame (the computer system supporting SNZ's Business Register), launched just over 18 months ago and developed by Statistics New Zealand, is internationally recognised as world class, with sales of the system to the Irish Central Statistics Office and strong international expressions of interest. The Business Frame is a central component for disseminating survey and administrative data throughout the department. Its design and functionality enables surveys to employ tax and other administrative data and is seen as pivotal for the success of the Economic Statistics Strategy.

Technical Co-operation

Co-operative Initiatives

Recent initiatives, including staff secondment, bilateral conferences and workshops, have strengthened links between the Australian Bureau of Statistics (ABS) and Statistics New Zealand. In addition, both organisations have implemented Lotus Notes software which has improved the information flow between the two organisations.

In October 1997, the Australian Commonwealth-State Population Workshop, involving planners from the Australian states, and staff of the ABS and SNZ, was held in Christchurch. The workshop's aim was to share information on progress in population work, such as in planning, population projections, methodological developments and meeting information gaps. In addition, recent workshops have been held between the National Accounts / Business Statistics/Inflation Measures Divisions of Statistics New Zealand and their counterparts in the ABS. Topics discussed included CPI revision issues, FISIM estimates in the National Accounts, capital stock measures and chainlinking constant price measures of GDP.

In December 1997, a joint ABS and SNZ workshop was held in Canberra. The aim was to share the experiences of both organisations in the 1996 cycle of post-enumeration surveys, and in the related adjustment of post-censal population estimates for census undercount. The bilateral discussions focused on the differences in approach of the ABS and SNZ, what each organisation might learn from each other, and the likely developments for the 2001 cycle of post-enumeration surveys.

Statistics NZ has also been contracted to provide statistical services for an Institutional Strengthening Project in Tuvalu involving reviewing the existing statistical collections for adequacy and modifying such to ensure that they produce relevant performance measures of the economy and its community.


 
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