§ Mr. Win GriffithsTo ask the Chancellor of the Exchequer (1) what are the criteria used for classifying grant-maintained schools as private sector institutions for the purpose of national income accounts;
(2) if he will make a statement on the status of (a) grant-maintained schools and (b) universities and colleges as private sector institutions for the purpose of national income accounts; and what are the differences between them.
§ Mr. NelsonThe national accounts are constructed by the Central Statistical Office in accordance with internationally agreed standards. Current practice is described in the CSO publication "United Kingdom National Accounts: Sources and Methods", third edition, available in the House of Commons Library.
At present, grant-maintained schools, universities and colleges are all classified as private non-profit-making bodies serving persons. There is no difference in their national accounts status.
The main criterion for determining whether an organisation is classified to the public or private sector is who controls it. Grant-maintained schools are classified to the private sector primarily because they are considered to be run independently by governors appointed by the private sector.
CSO will he reviewing the sector classification of these bodies as part of a wider review to identify whether any changes are necessary to meet recently revised international standards.