HC Deb 13 January 2003 vol 397 cc414-5W
Mr. Salmond

To ask the Chancellor of the Exchequer (1) for what reason government accounts have switched from gross domestic product of regions and nations of the UK to gross value added of regions and nations of the UK; [89388]

(2) what elements of UK GDP are classed as 'extra regio' and what proportion of the total of 'extra regio' GDP each comprises for the current financial year; [89390]

(3) whether a revised set of regional gross value added statistics for the period of 1989 to 1999 will be published. [89428]

Ruth Kelly

The information requested falls within the responsibility of the National Statistician. I have asked him to reply.

Letter to John Pullinger from Alex Salmond, dated 13 January 2003: The National Statistician has been asked to reply to your recent questions on estimates of regional gross value added (GVA). I am replying in his absence. (89428, 89388, 89390). Current estimates of Regional GVA were published in February 2001 for the period 1989 to 1999. A revised series was published on 21 November 2002, but was withdrawn on 10 December 2002, when errors were identified by the Office for National Statistics (ONS) and issues raised as to the quality of the underlying data. The ONS plans to publish estimates for regional, sub-regional and local area GVA in the spring of 2003. This will follow an investigation and detailed analysis of the compilation systems and component data to ensure their quality. Under the European System of Accounts 95 (ESA95) the economic estimates that are defined as Gross Value Added (GVA) at basic prices are broadly equivalent to what has been historically known as GDP at factor cost. ONS has effected the change from GDP at factor cost to GVA at basic prices as part of implementation of ESA95, along with all other EU countries. GVA at basic prices includes the effects of taxes less subsidies on production, but excludes taxes and subsidies on products, which are included in GDP at market prices under ESA95. The GVA for extra-regio comprises that part of compensation of employees and of gross trading surplus which cannot be assigned to any particular region. This mainly relateds to (1) the extraction of oil and gas and (2) public administration and defence (armed forces overseas and embassies). 1998 is the latest year for which industry estimates showing this breakdown are available. For that year the total estimate for extra-regio was just under £12 billion, of which 92 per cent. related to the extraction of oil and gas and 8 per cent. to public administration and defence.