§ Lord Kennetasked Her Majesty's Government:
Whether issuing, transferring or receiving, or otherwise dealing in securities or secondary securities (a) within the United Kingdom and (b) within the European Union count as providing "economic growth" and are deemed to contribute to the United Kingdom's or to any other country's gross domestic product (and appear in the statistics); and, if so, what is the nature of the "product". [HL547]
§ Lord McIntosh of HaringeyThe information requested falls within the responsibility of the Chief Executive of the Office for National Statistics who has been asked to reply.
Letter from the Registrar General and Head of the Government Statistical Service, Dr. Tim Holt, dated 25 January 1999.
As Director of the Office for National Statistics (ONS), I have been asked to reply to your recent parliamentary question on securities.
Activity taking place in the United Kingdom (or any other country) involving the issuing, transferring, receiving and dealing in securities is treated as a service. All costs and charges levied contribute to Gross Domestic Product (however, the money raised by the issue does not). For securities some of the charges are implicit as they are reflected in the spread between buying and selling prices. Where such activity is performed by someone who is resident outside the United Kingdom, for example in a European Union country, the service provided contributes to the Gross Domestic Product of the country in which the dealer is resident.
Changes in the value of securities have no effect on Gross Domestic Product.