§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer how the global sum of capital expenditure on public services, as a proportion of gross national product, is calculated in respect of sums provided under schemes of public-private partnership, in calculations made by the European Commission when issuing warnings and infraction communications to member states, indicating the treaty and legislative basis for distinctions in the source of capital and revenue expenditure. [42511]
§ Mr. Andrew SmithThe calculations made by the European Commission are from national accounts produced by national statistical offices according to the rules of the European System of Accounts 1995 (ESA95).
1110WAnnex 11 of ESA95 explains how to record capital expenditure when the public sector leases from the private sector. Chapter 2 explains how to determine whether a business is in the public or private sector. The legislative bases for the calculations are Council Regulation (EC) No 2223/96 of 25 June 1996 on the European system of national and regional accounts in the Community; and Council Regulation (EC) No 3605/93 of 22 November 1993 on the application of the Protocol on the excessive deficit procedure annexed to the Treaty establishing the European Community.