Statistics: Quality (Hansard, 8 October 1990)

§ Lord Hesketh
My Lords, Her Majesty's Government are concerned about the quality of statistics and have taken steps to make improvements. Following the Pickford review of economic statistics, the Central Statistical Office has been enlarged and reorganised and the Pickford proposals for improvements have been implemented.

§ Lord Ezra
My Lords, I thank the noble Lord for notifying us of the action being taken by the Government to put this matter right. Is he not especially concerned at the weakness of some of our basic statistics which has lasted for some time? For example, we know that massive changes are introduced to the balance of payments from time to time on the invisibles side. The statistics relating to the retail prices index have also been criticised recently. GDP figures are known to be false. In all these circumstances is it not a fact that the wrong policy decisions over a number of years must have been taken and are likely to be taken in the future? Should this matter not be considered by the Government with a good deal more urgency than at present?

§ Lord Hesketh
My Lords, to complement the Pickford proposals and to focus on areas of greatest concern, the Chancellor of the Exchequer announced in May a further package of measures aimed at improving the quality of statistics on services, companies and the balance of payments.

§ Lord Shackleton
My Lords, will the Government also consider the presentation of these statistics and the report of the Select Committee on Science and Technology with regard to R&D statistics? The figure were all right. I refer to the use made of those statistics by Ministers.

§ Lord Hesketh
My Lords, I have to admit to your Lordships' House that I am not aware of the specific figures to which the noble Lord refers. However, I shall certainly check them.

§ Lord Parry
My Lords, does the Minister accept that one of the causes for concern over the use of statistics is that even when they are not suspect, the time lag in their production, after research has been carried out, means that they are published at a time when they conflict with what is happening on the ground? For example, with regard to tourism, conditions are reported which existed nine months earlier. It might be in the interests of that trade for such figures to be published three or four months earlier.

§ Lord Hesketh
My Lords, the Government feel as strongly as anyone that we must constantly be reviewing the production of our statistics.
6 Improvements are being made constantly. However, I would be the first to admit that statistics in both this and other countries have on occasion not been as satisfactory as all would wish.

§ Lord Stallard
My Lords, does the Minister accept that when the Government constantly review statistics it causes a great deal of concern? For instance, we have all been concerned about the almost monthly review of the unemployment statistics. Are we now to be treated to a similar review of increases in inflation?

§ Lord Hesketh
My Lords, I fear that the noble Lord, Lord Stallard, has misinterpreted the meaning of my words. I referred to reviewing the collation of statistics to improve the output of the statistics rather than a review of the statistics in the manner that he suggests.

§ Lord Taylor of Gryfe
My Lords, is the Minister aware that in his memoirs—which I commend to him —a former Chancellor of the Exchequer said that such is the quality of statistics that when he asked the economists in his department for a telephone number they gave him an estimate?

§ Lord Hesketh
My Lords, I am sure that on my first occasion answering Treasury Questions it is of great elucidation to have been in receipt of the advice of the noble Lord, Lord Taylor of Gryfe, on that point.

Lord Bruce of Donington
My Lords, is the noble Lord aware that we do not have to wait for any confidential memorandum from the Chancellor of the Exchequer on that subject? In its bulletin published as recently as the summer, the Treasury states that there is no doubt that the quality of UK economic statistics has deteriorated over the past few years. It can say that again! Is the noble Lord also aware that in the fourth report of the House of Commons Select Committee on Social Services published in April, attention was drawn to a colossal error in the department's statistics with regard to an alleged improvement in the relative standard of living of the lower tenth of the population? That was corrected only following consistent pressure by the all-party committee. The figure was ultimately proved to be wholly wrong although that did not receive wide publicity at the time. Does the noble Lord agree that it is high time that we had an independent statistical commission in this country, free from all government interference?

§ Lord Hesketh
My Lords, with regard to the first part of the noble Lord's question, I refer back to my original Answer. He has referred entirely to the past. In my original Answer I pointed to changes that took place as a result of the Pickford Committee and to further changes after that. Statistics are called "statistics" and not "facts" because they can occasionally be wrong.