18 Statistics
| (a)
(26419)
6924/05
COM(05) 71
(b)
(26595)
9461/05
COM(05) 217
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Draft Regulation amending Regulation (EC) No. 3605/93 as regards the quality of statistical data in the context of the excessive deficit procedure
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
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| Legal base | (a) Article 104(14) EC; consultation; QMV
(b) Article 211 EC; —; —
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| Department | (a) Office of National Statistics
(b) HM Treasury
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| Basis of consideration | Minister's letter of 27 October 2005
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| Previous Committee Report | (a) HC 38-xv (2004-05), para 8 (6 April 2005)
(b) HC 34-ii (2005-06), para 5 (13 July 2005)
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| To be discussed in Council | 8 November 2005
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| Committee's assessment | Politically important
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| Committee's decision | Cleared, but further information requested
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Background
18.1 In 2004 Greek budgetary statistics underwent significant
revisions. Earlier this year the previous Committee considered
Commission Communications about issues arising from that situation,
the second of which discussed possible improvements in the production
of fiscal statistics and outlined some related proposals.[41]
The previous Committee also considered the draft Regulation in
document (a), which is designed to address both the quality of
statistical data used in the context of the Excessive Deficit
Procedure[42] and the
operational capacity of the Commission — two of the areas
in which the Commission had proposed action. The Committee echoed
the Government in saying it regarded the proposed legislation
as a disproportionate response to the problem, which breached
the principle of subsidiarity, and urged the Government to resist
strongly the adoption of the proposal. It also suggested that
the Government demand of the Commission the impact assessment
required for this sort of proposal.[43]
18.2 In July 2005 we ourselves considered the Communication
and Recommendation in document (b), in which the Commission addressed
a third area for action — establishing Europe-wide standards
to reinforce the independence, integrity and accountability of
national statistical authorities. The Communication:
- reports on a code of practice
drawn up by a task-force of statisticians and 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. It is to apply not only to national statistical
institutes but also to Eurostat;
- makes a case for a high-level advisory body to
assist the Commission in monitoring implementation of the code
of practice; and
- makes a case for a rebalancing of statistical
priorities.
18.3 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).[44]
We commented that the code of practice seems unexceptional. But
before considering the document further we asked to hear about
the outcome of the Council's consideration of the proposal for
a high-level advisory body, particularly in relation to the subsidiarity
principle.[45]
The Minister's letter
18.4 The Financial Secretary to the Treasury (Mr
John Healey) writes now to inform us of developments on both these
documents. He says that there has been discussion recently which
has lead to the proposals, as amended, in the two documents being
now a package which is a significant improvement on the Commission's
original proposals.
18.5 On the draft Regulation in document (a) the
Minister tells us that given the overwhelming majority of Member
States favoured legislation — but were concerned to ensure
that any new powers were clearly defined and limited in scope
— the Government decided that it should focus its energy
on working with like-minded Member States to ensure the proposed
Regulation met its concerns on substance, in other words seek
to achieve a more proportionate, albeit legislative, outcome.
He says negotiations have agreed on a text that provides that
- methodological visits (originally
referred to as "in-depth monitoring visits") should
only be undertaken by Eurostat in cases where it identifies substantial
risks or potential problems with the methods, concepts and classifications
applied to a Member State's data; and
- such visits should not go beyond the purely statistical
domain.
18.6 In limiting the scope of the Regulation to statistical
methodology, rather than an investigation into the underlying
data, the scope of the new Eurostat powers has also been limited
significantly. The amendments have considerably reduced the likelihood
of the UK ever being subject to a methodological visit. The Minister
says the Government is pleased that the limits are to be enshrined
in the body of the Regulation rather than in a less forceful Ministerial
declaration. He concludes that given the improvements to the original
Commission proposal the Government now believes that legislative
action in this area is acceptable.
18.7 As for document (b) the Minister tells us that
the ECOFIN Council is likely to endorse a consensus among the
25 Member States that, if a high-level advisory body were to be
set up:
- its role should be limited
to monitoring Eurostat in the fulfilment of its mission and its
professional independence, rather than the whole European Statistical
System (which also embraces national statistical institutes);
- it should be small, with its chair selected by
the Council; and
- the CEIES should be reformed separately, and
it should not be replaced by the new body.
18.8 In relation to suggestions as to a rebalancing
of statistical priorities in document (b) the Minister says the
Government has argued in negotiations that, if Eurostat is to
receive any additional powers, there should also be a substantial
reduction on the administrative burden on national statistical
institutes, as well as on providers of data. Following the ECOFIN
Council's view that work on this matter needs to be accelerated
draft conclusions have been negotiated which would set a deadline
of December 2005 for Eurostat to provide an update on progress,
and July 2006 to deliver results. He says that this increases
the pressure on Eurostat, which has the right of initiative with
respect to statistical Regulations, to cut back burdens that are
no longer necessary.
18.9 The Minister tells us that there is likely to
be a consensus, which the Government would join, in the ECOFIN
Council in favour of adopting the draft Regulation in document
(a) on 8 November 2005. He adds that the ECOFIN Council will take
no formal decisions then on the other aspects of the statistics
package.
Conclusion
18.10 We accept that there has been such considerable
improvement in the content of the draft Regulation in document
(a) as to warrant the Government supporting this measure, as no
longer disproportionate nor a compromise of the subsidiarity principle
and we clear the document. We note also the progress that has
been made in relation to document (b), again particularly in relation
to a high-level advisory body and its threat to the subsidiarity
principle, and clear this document too.
18.11 However we note in relation to document
(a) that the Minister makes no reference to the previous Committee's
suggestion that the Government demand of the Commission the impact
assessment required for this sort of proposal. We should like
to hear from the Minister what action was taken on this and what
the Commission's response was.
41 (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
42
Action, in relation to the Stability and Growth Pact, under Article
104 EC and the relevant Protocol on an excessive government deficit. Back
43
See headnote. Back
44
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
45
See headnote. Back
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