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Price Indices
Mr. Edward Davey: To ask the Chancellor of the Exchequer (1) if he will review the methodology for adjusting for quality improvements in the calculation of the Retail Prices Index; and if he will make a statement; [137865]
- (2) what research his Department has undertaken on the matter of hedonic price indices; and if he will make a statement. [137864]
Miss Melanie Johnson: The information requested falls within the responsibility of the National Statistician. I have asked him to reply.
Letter from John Pullinger to Mr. Edward Davey, dated 30 November 2000:
- The National Statistician has been asked to reply to your recent questions on the methodology for adjusting for quality improvements in the Retail Price Index (RPI) (137865) and hedonic price indices (137864). I am replying in his absence.
- The Office for National Statistics (ONS) does not currently use hedonic regression techniques to correct for changes in quality of new goods in the RPI sample. However, changes in quality are allowed for in two ways. Firstly, explicitly using option costs for computers. In this case the actual costs of individual changes of specification in the computer are recorded, and 50 per cent of this cost is applied to the price of an item as the value of the quality change. Secondly, for all other items, we make an implicit adjustment. In this case when a new item is selected during price collection, to replace an item no longer available, any price change, above that seen in other goods of this type, is assumed to be related to quality changes.
- However the ONS is actively participating in discussions about which methods are most appropriate for quality adjusting price indices. As part of the ongoing methodological research programme for the RPI, the ONS is looking closely at the question of adjustments for quality changes in new goods introduced into the index, whether these be improvements or reductions in quality. This work involves a technical assessment of the current methodology used in the RPI, comparing this with practices in other countries and evaluating which methodology is most appropriate for the UK.
- As part of this work we are examining techniques either used by other National Statistics Offices, or recommended by academics, to see if they are of potential use in the UK. In particular, we are looking at whether the hedonic regression techniques adopted in the USA, and other countries, would be suitable for the UK, both theoretically and practically. The research will not, necessarily, recommend a single quality adjustment technique, but rather may recommend different solutions for different product groups.
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- This work is taking place in close collaboration with Eurostat, other National Statistical Offices, and the academic community to ensure that results are based on a strong foundation, and can be used to allow International comparisons to be made.
- The results will also be taken into account in the work on methodological improvements for the Producer Price Index (PPI).
- This work is progressing, and the results will be published when reliable conclusions have been reached.
NIRS2
Mr. Webb: To ask the Chancellor of the Exchequer (1) when he expects the problems with the NIRS2 computer system to be resolved; [138257]
- (2) if he will estimate the total cost to date of the work carried out to rectify the problems with the NIRS2 computer system; [138255]
(3) if he will detail the total amount of compensation that has so far been paid as a result of the problems with the NIRS2 computer system; [138253]
(4) if he will estimate the total cost of the work required to fully rectify the problems with the NIRS2 computer system; [138256]
(5) if he will estimate the total amount of compensation that he expects to be paid as a result of the problems with the NIRS2 computer system. [138254]
Dawn Primarolo [holding answer 13 November 2000]: I refer the hon. Member to the answer I gave him and the hon. Member for Havant (Mr. Willetts) on 31 October 2000, Official Report, column 409W.
Mr. Bercow: To ask the Chancellor of the Exchequer what his estimate is of the cost to date to the taxpayer of the NIRS2 computer problem. [136140]
Dawn Primarolo [holding answer 13 November 2000]: I refer to the answer I gave the hon. Member for Havant (Mr. Willetts) on 19 June 2000, Official Report, column 106W.
Fuel Duties
Mr. Matthew Taylor: To ask the Chancellor of the Exchequer, pursuant to his oral statement of 8 November 2000, Official Report, columns 315-27, on the pre-Budget report, and the document "Building Long Term Prosperity for All", Table 6.2, what estimate he has made of the carbon savings per annum from a 1 per cent. cut in fuel duties in real terms; and if he will make a statement. [138283]
Mr. Timms [holding answer 14 November 2000]: In the PBR the Chancellor announced that duty would be frozen in real terms, the duty on ultra low sulphur petrol would be cut by 2p a litre subject to there being nationwide access, and in those circumstances the duty on ultra low sulphur diesel would be cut by 3p a litre.
The impact on CO 2 emissions from any duty charge introduced at the Budget will be published in the Budget Red Book.
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Minimum Wage
Mr. Peter Bradley: To ask the Chancellor of the Exchequer what estimate he has made of the number of workers in the rural economy who have benefited from the introduction of the statutory minimum wage, broken down by employment sector. [139024]
Miss Melanie Johnson: The information requested falls within the responsibility of the National Statistician. I have asked him to reply.
Letter from John Pullinger to Mr. Peter Bradley, dated 30 November 2000:
- The National Statistician has been asked to reply to your parliamentary question on the number of workers in the rural economy who have benefited from the introduction of the national minimum wage (NW) (139024). I am replying in his absence.
- The Office for National Statistics (ONS) has no estimates of employees in the rural economy that have benefited from the NMW. ONS does have estimates of people with pay less than NMW rates. These can be found on the National Statistics website, reference:
- http://www.statistics.gov.uk/themes/labour-market/nmw-lowpay-tables.asp
- They are based on an improved methodology which uses data from both the New Earnings Survey (NES) and the Labour Force Survey (LFS).
- The estimates cannot be used as a measure of non-compliance with NMW legislation because it is not possible from either the LFS or the NES to identify whether an individual is eligible for NMW rates. For example it is not possible to identify people such as apprentices and those undergoing accredited training who are exempt from the minimum wage or are entitled to lower rates.
Economically Inactive People
Mr. Field: To ask the Chancellor of the Exchequer in how many constituencies there was a rise in the numbers of economically inactive people between (a) 1997 and 1998, (b) 1998 and 1999 and (c) 1997 and 1999. [138501]
Miss Melanie Johnson [holding answer 16 November 2000]: The information requested falls within the responsibility of the National Statistician. I have asked him to reply.
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Letter from John Pullinger to Mr. Frank Field, dated 30 November 2000:
- The National Statistician has been asked to reply to your recent question about the numbers of economically inactive people in parliamentary constituencies (138501). I am replying in his absence.
- Estimates of the number of people economically inactive are not available at constituency level.
- However, information on economic activity rates at parliamentary constituency level can be derived on an annual basis from the Labour Force Survey (LFS), which is the main source of labour market data on individuals. The inactivity rate for all aged 16 and over is available for each constituency, for the periods March 1997 to February 1998 and March 1998 to February 1999.
- As with any sample survey, LFS estimates are subject to sampling variability. The smaller the estimate the larger the variability relative to the size of the estimate. For this reason comparisons between small areas such as parliamentary constituencies should be treated with caution.
- Inactive people are those who are neither employed or unemployed. This group includes for example all those who were looking after a home or retired.
Mr. Ruane: To ask the Chancellor of the Exchequer how many economically inactive people there were in each region of the United Kingdom in each of the last 20 years. [140486]
Miss Melanie Johnson [holding answer 27 November 2000]: The information requested falls within the responsibility of the National Statistician. I have asked him to reply.
Letter from Len Cook to Mr. Chris Ruane, dated 30 November 2000:
- As National Statistician I have been asked to reply to your parliamentary question about the number of economically inactive people in each region of the UK in each of the last 20 years. (140486)
- The Labour Force Survey (LFS) is the main source of labour market data on individuals used by National Statistics. Estimates of the number of economically inactive people are only available since 1984 when the International Labour Organisation (ILO) definition of unemployment came into use. The attached table shows the estimates of the number of people economically inactive in each Standard Statistical Region in the UK since spring 1984.
- People aged 16 or over are classed as economically inactive by the LFS if they are neither employed or ILO unemployed. This groups includes for example all those who were looking after a home or retired.
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| Thousand | ||||||||
|---|---|---|---|---|---|---|---|---|
| Spring | United Kingdom | Great Britain | England | North | Yorkshire and Humberside | East Midlands | East Anglia | South East |
| 1984 | 16,608 | 16,148 | 13,690 | 961 | 1,482 | 1,103 | 569 | 4,715 |
| 1985 | 16,634 | 16,171 | 13,693 | 987 | 1,457 | 1,141 | 575 | 4,774 |
| 1986 | 16,718 | 16,267 | 13,774 | 969 | 1,480 | 1,101 | 587 | 4,829 |
| 1987 | 16,672 | 16,208 | 13,692 | 944 | 1,473 | 1,136 | 577 | 4,815 |
| 1988 | 16,453 | 15,994 | 13,514 | 944 | 1,487 | 1,132 | 552 | 4,675 |
| 1989 | 16,214 | 15,757 | 13,339 | 944 | 1,475 | 1,082 | 559 | 4,614 |
| 1990 | 16,198 | 15,745 | 13,337 | 967 | 1,459 | 1,104 | 538 | 4,592 |
| 1991 | 16,413 | 15,957 | 13,503 | 971 | 1,457 | 1,122 | 577 | 4,661 |
| 1992 | 16,728 | 16,269 | 13,842 | 974 | 1,473 | 1,141 | 590 | 4,803 |
| 1993 | 16,954 | 16,461 | 13,939 | 979 | 1,470 | 1,145 | 581 | 4,860 |
| 1994 | 17,032 | 16,526 | 14,055 | 981 | 1,497 | 1,182 | 574 | 4,929 |
| 1995 | 17,155 | 16,657 | 14,162 | 1,001 | 1,486 | 1,177 | 599 | 4,929 |
| 1996 | 17,172 | 16,675 | 14,151 | 990 | 1,507 | 1,164 | 612 | 4,919 |
| 1997 | 17,184 | 16,687 | 14,198 | 995 | 1,529 | 1,166 | 647 | 4,15 |
| 1998 | 17,361 | 16,855 | 14,318 | 1,027 | 1,515 | 1,183 | 630 | 4,974 |
| 1999 | 17,237 | 16,728 | 14,193 | 1,019 | 1,519 | 1,193 | 631 | 4,917 |
| 2000 | 17,169 | 16,637 | 14,140 | 1,000 | 1,488 | 1,169 | 631 | 4,949 |
(61) Standard Statistical Regions (SSR) have been used for consistency as they are available since 1984
Source:
ONS--Labour Force Survey
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