Select Committee on European Scrutiny Second Report


5 Statistics

(26595)

9461/05

COM(05) 217

Commission Communication on the independence, integrity and accountability of the national and Community statistical authorities

Commission Recommendation on the independence, integrity and accountability of the national and Community statistical authorities

Legal baseArticle 211 EC; —; —
Document originated25 May 2005
Deposited in Parliament3 June 2005
DepartmentHM Treasury
Basis of considerationEM of 20 June 2005
Previous Committee ReportNone; but see footnote
To be discussed in CouncilNovember 2005
Committee's assessmentPolitically important
Committee's decisionNot cleared; further information requested

Background

5.1 In 2004 Greek budgetary statistics underwent significant revisions. Earlier this year our predecessors considered Commission Communications about issues arising from that situation, the second of which discussed possible improvements in the production of fiscal statistics and outlined proposals in three areas:

·  legislation to improve the quality of statistical data used in the context of the Excessive Deficit Procedure,[14] including supplementing the existing legislation so as to give the Commission, through Eurostat, power to monitor government accounts directly;

·  improving the operational capacity of the Commission (Eurostat and the Directorate-General for Economic and Financial Affairs), including systematic planning of in-depth verification missions and use of national expertise in support of Eurostat; and

·  establishing Europe-wide standards to reinforce the independence, integrity and accountability of the national statistical authorities. [15]

5.2 Our predecessors also considered a draft Regulation which is designed to address both the quality of statistical data used in the context of the Excessive Deficit Procedure and the operational capacity of the Commission — the first two of the areas in which the Commission had proposed action. They said they regarded the proposed legislation as a disproportionate response to the problem, which breached the principle of subsidiarity, and they urged the Government to resist strongly the adoption of the proposal. That proposal remains under scrutiny. [16]

The document

5.3 In this Communication and Recommendation the Commission addresses the third area for action — establishing Europe-wide standards to reinforce the independence, integrity and accountability of national statistical authorities. The Communication reports that a code of practice drawn up by a task-force of statisticians has been endorsed by the Statistical Programme Committee (an advisory body composed of representatives of the statistical institutes of Member States and chaired by the Commission). The code establishes 15 principles to be applied in the production of Community statistics and proposes a number of indicators for considering whether these principles have been fulfilled. The principles largely mirror existing international standards, such as the Fundamental Principles of Official Statistics adopted by the United Nations Statistical Commission in 1994. They are divided into three groups:

·  institutional environment, dealing with such matters as professional independence and adequacy of resources;

·  statistical processes, dealing with such matters as sound methodology and non-excessive burden on respondents; and

·  statistical output, dealing with such matters as relevance, accessibility and clarity.

The code is to apply not only to national statistical institutes but also to Eurostat. The Communication also makes a case for a high-level advisory body to assist the Commission in monitoring implementation of the code of practice.

5.4 In its Communication the Commission also makes a case for a rebalancing of statistical priorities. It notes that an improved setting of priorities would help reduce the regulatory burden on respondents, free up resources for new statistical activity and perhaps lead to simplified legislation. The Commission suggests that the benefits of European statistics should be assessed in terms of their relevance for policy-making at the European level, of costs and of such more specific matters as the trade-off between timeliness and quality.

5.5 In its Recommendation the Commission asks Member States to adopt the code of practice as a self-regulatory instrument to be monitored through a peer-review process. The Recommendation also records the Commission's decision to apply the code to Eurostat and its intention to consider further the proposal for a high-level advisory body, possibly in the shape of a reformed European Advisory Committee on Statistical Information in the Economic and Social Spheres (CEIES).[17]

The Government's view

5.6 The Financial Secretary to the Treasury (John Healy) says the Government believes the code of practice, which is consistent with existing practices in the UK, will be useful in promoting best practice in the European statistical system. But he adds that the practical details of the Recommendation need to be discussed further, particularly in relation to the proposed high-level advisory body. The Government believes its remit should be limited to Eurostat. Any oversight of Member States' national statistical institutes would breach the subsidiarity principle.

5.7 The Minister also says that the Government wants to accelerate progress on rebalancing statistical priorities, which would contribute to a reduced burden on respondents, simplified legislation and the freeing up of resources for new statistical developments. It would help remove some of the obstacles to implementing the recent recommendations of a review of statistical requirements for monetary and wider economic policymaking in the UK (the Allsopp Review).[18]

Conclusion

5.8 The code of practice seems unexceptional. However before considering the document further we wish to hear from the Minister about the outcome of the Council's consideration of the proposal for a high-level advisory body, particularly in relation to the subsidiarity principle. Meanwhile we do not clear the document.


14   Action, in relation to the Stability and Growth Pact, under Article 104 EC and the relevant Protocol on an excessive government deficit. Back

15   (26193) 15553/04 + ADD 1; see HC 38-iv (2004-05), para 15 (19 January 2005) and (26253) 5049/05; see HC 38-vii (2004-05), para 12 (2 February 2005). Back

16   (26419) 6924/05; see HC 38-xv (2004-05), para 8 (6 April 2005). Back

17   CEIES was established in 1991 "to assist the Council and the Commission in the coordination of the objectives of the Community's statistical information policy, taking into account user requirements and the costs borne by the information producers". Back

18   See http://www.hm-treasury.gov.uk/consultations_and_legislation/allsop_review/consult_allsopp_index.cfm. Back


 
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