Select Committee on Treasury Minutes of Evidence


Examination of Witnesses (Questions 1-19)

MR KEITH DUGMORE, PROFESSOR DAVID RHIND AND PROFESSOR DAVID MARTIN

16 JANUARY 2008

  Q1 Chairman: Professor Rhind, welcome back to the sub-committee. Perhaps you could introduce yourself and your colleagues, please.

  Professor Rhind: Thank you, Sir. It is a pleasure to be back. I am Chairman of the Statistics Commission for another few weeks before the Statistics Board takes over. Sitting next to me is Professor David Martin from Southampton University, who is here representing, I think, the ESRC and the Royal Statistical Society, who have put submissions in, and on the left is our man from the private sector, Keith Dugmore, who runs a firm called Demographic Decisions.

  Q2  Chairman: Thank you very much. Thank you for assisting us this afternoon. Please do not feel that all three of you have to answer all the questions; you could try and rotate it and take a stab at it. Can I ask, first of all, about emigration. The ONS released figures estimating that around 400,000 people emigrated last year, up from 359,000 in 2005. Are there any indications that emigration rates will continue to increase?

  Professor Rhind: That sounds like one for David Martin, I think.

  Professor Martin: I think our biggest difficulty with the emigration information is the fact that all of the estimates are based on small samples of information about what we know about where people are going, and so we do not have any systematic way of collecting that information, and it is one of the biggest gaps in the system that we have for estimating who has left and who has gone. While we continue not to capture that information systematically, it is very hard to see what frameworks you would use for it. It remains for us the greatest uncertainty in the system, where we try to match the flows of people in and out of the country and what the stock that remains now is. I would be extremely hesitant to try to estimate whether those figures are right, because we are always judging them on the basis of a very small sample, and quite rapidly changing trends can lead to quite significant changes in the direction of flow.

  Q3  Chairman: Are you telling us that the emigration statistics just are not accurate?

  Professor Martin: We have very little information on emigration. We can conduct surveys to ask people where they are going, but we do not know where they have gone and how long they stay and we do not know a lot about the extent to which quite a few people have left the country and how well they do what they have told us they were likely to do when they return—whether they stay away or change their minds once they have gone.

  Q4  Chairman: If they do leave, how long is it before their absence is reflected in the population estimate?

  Professor Martin: The mid-year estimates build in information which is both demographic, to do with what we understand about the change in local populations and what we understand about the flows of migrants both internal to the country and out of the country, and so, on a rolling basis, the Office of National Statistics is trying to put all that together. It is not a precise art, in the sense that you know exactly where the groups have gone. Often we know something about where people have gone out of the country; we know a lot less about which part of the country they have gone from; so it is then very hard to then build it back to migrants from Manchester or migrants from London. We are actually an art of estimating back which parts of the country are losing the population according to their demographic characteristics in quite small sample proportions.

  Q5  Chairman: If the ONS tell us, as they told us in October, that the overall population of the UK is likely to increase from 61 million last year to 65 million in 2016, how much accuracy should we attach to that projection?

  Professor Rhind: Do I not recall that there were several scenarios? Was that the central measure that they were suggesting? I do not think anyone would claim a great deal of precision for these anticipated population increases.

  Q6  Chairman: Obviously there are assumptions built in here about life expectancy, future fertility, emigration, immigration, and so on, but why would you expect trend growth to have increased since the projections made in 2004?

  Professor Martin: I do not think that you can focus only on the emigration part of that as being the explanation for the figures you have got there. As I recall, a number of scenarios were presented and they are sensitive to future decisions, future policy changes, which affect the way in which people make decisions about whether they go out of the country short-term and return, and the emigration component, where we began, is actually the least certain part of that, whereas the internal movements and the demographic change and the changing size of different groups who come in is more robust. One of our biggest uncertainties relates to people's future decisions to stay away, and I think that is reflected in the scenarios which we presented.

  Q7  Chairman: Which of all these factors has the most influence on the projections?

  Professor Martin: The migration is the largest component of change, if we look at contemporary UK population change, and the demographics give us a fairly established methodology, a way of knowing where we are seeing different ethnic groups changing at different rates, for example, but the migration is both the biggest component of actual overall change and also the most uncertain part.

  Mr Dugmore: I think it is also significant to point out that there is an element of feedback here, in that depending on the migration and young people coming in, of course, that can have a knock-on effect on fertility rates as well, so there is a further complication built in there as well.

  Q8  Peter Viggers: Population estimates are, of course, critical for three main reasons: resource allocation and the determination of financial settlements, the second one is to act as a denominator for statistics on crime, conception, accidents, deaths, and so on, and the third area would be the planning of local services. How far do current population estimates meet the needs associated with their uses?

  Professor Rhind: I think, Sir, if I may start on that one, everyone accepts that there are serious shortcomings in at least the most important component of the population estimates, which relates to migration. Ministers have indicated that they accept that these are not fit for purpose in a number of cases and, although they work fine in some parts of the country, they are not good enough in other parts of the country, and I think every other responsible and expert person says exactly the same. We have a major task to actually improve the migration statistics in the UK before the population estimates can be as good as we need them to be for allocating very large sums of money.

  Q9  Peter Viggers: If there are inaccuracies or inadequacies, how would this impact on government and government policy?

  Professor Rhind: In terms of financial allocations, some of the allocations, of course, are zero sum gains. In the case of the local authorities, if some areas are getting too much and some others are getting too little, that is not a great problem in the overall sense, but it is certainly to those local authorities that are either being under resourced or over resourced.

  Q10  Peter Viggers: How useful is the statistic of "usually resident population"? The extreme example, of course, is the City of London, where a large number of people come in to work every day. How do you cope with that?

  Mr Dugmore: I think this highlights the particular interests of commercial users, because when you look at the use of population statistics by large retailers, for example, the population estimates as published are not a great deal of use because of their level of geography—they are looking at local authority level rather than store catchment level, or anything like that—and so a lot of the big retailers would tend to go back to the Census because that gives them geographical detail. The two other elements are the fact that the mid-year estimate for resident population is only people here for more than 12 months and there is a lot of interest in short-term migrant flows and people from Eastern Europe as to the numbers of those coming in and out, and, as you say, the workplace is another definition of great importance, and one only has to look around Westminster to see what impact this sort of thing has on the retail world of people opening coffee shops or in Boots in Victoria Street, and so on. They are overwhelmingly interested in the numbers of workers in an area at lunchtime rather than the resident population.

  Professor Rhind: But it is fair to say, if I may continue, that in many urban areas the daytime population, which imposes some load on the local authorities—whether it is crime, whether it is street cleaning, whatever it is—is very different to the usual resident descriptor, and to that extent there is a major issue about having just one measure of population, the usual resident.

  Q11  John Thurso: Can I return to the devolved issue? How does the quality and range of the population statistics in England and Wales compare with that available in Scotland?

  Professor Martin: I think at the broad level, the information which we have is broadly comparable across the UK because we are dealing with similar systems which are strongly related and there is a lot of cross-working between the statistical agencies in the different parts of the UK. Nevertheless, there are differences which seem quite subtle which play out in differences in detail and differences in methodology which are available. For example, we saw in 2001 different approaches to statistical disclosure control (which is the protection of confidentiality in the statistics by a modification of data) used differently in different parts of the UK—that has an impact—and there are also some the differences in the way the information is reported—the timing of mid-year estimates in Scotland is different to England and Wales—which make it quite difficult. Academic and commercial organisations mostly have an interest in the whole of the UK, rather than the local government interested in one place. I think it would also be true to say that in some senses there are statistical outputs which are important when dealing with population. For example, in Scotland and Northern Ireland there are new longitudinal surveys which have been possible because of a very joined-up approach to different government departments working together with the statistical agencies, and in some ways they are leading England and Wales.

  Q12  John Thurso: So there is Scottish best practice that can be disseminated within the rest of the United Kingdom.

  Professor Martin: Maybe.

  Professor Rhind: Perhaps just two other points. For good reasons, the nature of the Census data collected in the different parts of the UK differs somewhat. Some of the questions are different in Scotland, perhaps reflecting household tenure differences and so on, but there are also some mechanical aspects underpinning that. For example, an address database is a necessary condition for running a census, and the situation for that is somewhat different, say, from Northern Ireland to England and Wales. Even if the core is relatively consistent, there are many things, some by design, some by accident, which differ around that core.

  Q13  John Thurso: I know that the Statistics Commission has given a pretty high priority to ensuring that there is a good quality of UK-wide statistics, and the idea should be that there is the UK statistics and then the devolved administrations can take out further what they want. I also know there has been a new memorandum of understanding between the various persons responsible. Do you feel now that enough has been done, obviously within the bounds of being reasonable, or do you think there are gaps that need to be addressed?

  Professor Rhind: There are some variations. The Scottish pilot was a year earlier, I think, than the England and Wales one was going to be. In principle, if the experience from that feeds into the England and Wales one, it is actually rather helpful. Most recently, there has been some change, in that I think the procurement of certain services is going to be done separately in Scotland from England and Wales; so one has some concerns about these variations, but I think many organisations are pressing for the greatest possible consistency across the piece and will continue to do so.

  Mr Dugmore: Can I add to that? I think that there is a feeling that probably some attention is now being given to the issue but not enough, and it needs to be relentless as well, because at the moment we are looking at the choice of questions for the 2011 Census, and, obviously, that is a matter of the extent to which things are comparable across the countries, but even if the questions have much in common, when it comes down to users getting hold of the outputs, if different tables are generated and they are called different things, there can be fairly trivial, practical issues in actually getting hold of comparable data and putting it together and there is no umbrella organisation that says, "Here is a set of data, country by country, all of which is compatible and easy to use."

  Q14  John Thurso: How would you like to see that resolved? What would you need to do?

  Mr Dugmore: I think there would be a case for some sort of central unit to actually oversee this. Otherwise, I think if it is left to each of the individual offices, then they will each do their own thing. In theory, a lot of it can be put together, but it will not happen and that will mean that usage of the data will be much less than it might otherwise be.

  Q15  John Thurso: You lead me in to the Scotland Act, which is somewhere we do not want to go today. Let me go from the devolved on to the international stage. The Committee visited Sweden, and one of the points that we were told was that the Swedish population register was updated on a daily basis. Is there any case for moving to a system that could be updated more regularly here in the UK?

  Professor Rhind: Absolutely. Given that we know that migration data and, indeed, population census data in certain respects is not fit for all the purposes we require, it is appropriate to look around to see what other people are doing. The Statistics Commission has recently toured parts of Scandinavia and Europe and also been to the USA, where the approaches are different. I think we concluded that the traditional census, of which in some ways the British one is the most traditional of all now given what has been happening elsewhere, has almost had its day. We argued very strongly that we should explore other models and we should explore them now, and I am delighted to see in the submission to you that the ONS are proposing a study, starting next year, to look at that. We think that there is probably no better solution than to actually run something based primarily upon administrative statistics, administrative data sources, with information coming from ports about emigration and immigration, and a whole variety of other administrative data sources used to triangulate where people are and where they are moving to. It is certainly made to work extremely effectively in the Scandinavian and Netherlands and other contexts. It is inexpensive once you have got the databases, it is very up-to-date—literally you can detail every day, if you wish to—and the linkage between population data, households, properties and also businesses gives a range of outputs that we cannot possibly match, and so there is a great deal of attraction in having something of this sort, and the Statistics Commission have suggested that we use the 2011 Census as an opportunity to use existing administrative data sources to run in parallel, if you like, an experiment to see just how the two would stack up, recognising that we need other administrative data sources as well. I hope that will happen. There are some disadvantages; there are some difficulties. The data-sharing culture in British government departments is perhaps not as good as we need it; clearly there are some confidentiality constraints, especially in the view of recent events, which we would need to get over. In Scandinavia this is taken for granted, but there is clearly a different culture there. Altogether, I think there is every possible reason to believe that we could move, over a period of time, to a situation where administrative data sources were the main source, supplemented by smaller surveys, rather than having a £500 million census every ten years, which is a huge logistical operation, which is risky in certain regards, which is clearly expensive and which produces data some time after everyone would like to have it.

  Q16  John Thurso: Can I quickly ask each of you to what extent the problems and bad experiences of 2001 have contributed to the public's loss of confidence in official statistics? Would you like to comment?

  Professor Rhind: It is geographically variable. The 2001 Census, so far as we were able to ascertain, performed pretty well in many parts of the country. This was, of course, before the most recent flush of short-term migration, but we know that there were problems in inner urban areas even though greater resources were allocated to those. I think there is no question that some local authorities have grave suspicion about the population statistics in their areas, for better or worse; so I think it is variable. It will have contributed in those areas significantly to mistrust.

  Professor Martin: I think that is very true, and there are specific issues. For example, you may recall that there was a question about the Welsh identity, there were various organisations who have used the Census, or the opportunity of the Census, in order to form particular views about group identities and group prevalence, and to the extent to which that happens, there is process of attrition against the solidarity of the published result and so the Census is partly suffering from that and partly contributes to it. I guess commentators internationally would also say in some ways that the Census is only the same as other sources of public confidence in government, which we see in many ways under attack, and it is not just the technicalities of the Census which produce that, the Census in some way suffers from it too, and 2001 may have had much the same final result even if it had been technically different.

  Q17  John Thurso: What about the users?

  Mr Dugmore: Yes, I think from a user viewpoint we ought to get them more upbeat about this in that certainly in the commercial world (who are seeking information for small areas to make decisions) the Census is still very heavily used and there is very little adverse comment about it. There might be an awareness that if you are seeking to make decisions in Central Manchester or Westminster you might need to be a little careful, but when it comes down to comparing areas across the United Kingdom as to where we open our next 20 stores, and so on, you are straight back to the Census again and I do not think that its reputation is much knocked at all amongst users. To some extent, I think there is a danger of those who are technical specialists tending to concentrate on those things that went somewhat wrong—you know, the glass is three or 4% empty rather than 90% full—but as far as the decision-making is concerned, the Census is still very important, even seven years down the line.

  Professor Rhind: May I add to that, Chairman? I think there is some evidence that commercial sector users (who are, of course, very important) take a slightly different view to some other users. If you are allocating large sums of money through the public purse, you would want to be rather careful about this. Many of the commercial decisions are made rather quickly and people would recognise that they are made on the best available evidence and just get on and do it.

  Chairman: Certainly we have had an extraordinary response to the call for written evidence from local authorities and those who are at either end of the public spending allocation process.

  Q18  Mr Dunne: I would like to pursue that a little bit further. As MPs we are acutely aware of how frequently our own electorate changes in various different aspects, and in my own case over 5% a year appears to be the change in the Electoral Roll. So, over a 10-year period between censuses, theoretically, 50% of the population could have moved. Do any of you have a sense for the average length of time that people stay in the same house?

  Professor Rhind: We did have some figures recently about mortgages which showed a lengthening period for staying in the same place before a new person mortgaged it. As I recall—I think we will have to look at this—the average longevity used to be about seven years. I think it is now about ten, or something of that sort.

  Q19  Mr Dunne: As a result of price barriers?

  Professor Rhind: I think a multiplicity of factors.



 
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