HC Deb 18 October 1973 vol 861 cc271-2W
Mr. Meacher

asked the Chancellor of the Exchequer what is the exact definition of "operating surplus" as standardised in the Written Answer of 20th February 1973 c. 73–74.

Mr. Nott

Operating surplus is defined in paragraph 7.38 of the United Nations new system of National Accounts (SNA) as follows… The operating surplus during a period of account is the excess of the value added by resident producers during the period, over the sum of the costs of emloyee compensation, consumption of fixed capital and indirect taxes reduced by subsidies, which they incur during the period. The value added is equivalent to the difference between the gross output of the producers during the given period, valued at producers' values, and their intermediate

Mr. Nott

The latest year for which figures are available is 1968. Comparable figures are available for 1954 and 1963 but not for 1950 and 1960. The information available is as follows:

consumption, valued at purchasers' values. Operating surplus can, by definition, be earned by industries only. The gross output of the producers of government services and private non-profit services to households is defined as equivalent to their explicit costs of production."