Bertie Ahern
Question:10 Mr. B. Ahern asked the Taoiseach the efforts, if any, that are being made to speed up the publication of trade and balance of payments statistics. [14457/95]
Ceisteanna—Questions. Oral Answers. - Trade Statistics.
The timeliness of economic statistics is a matter of the highest priority for the Central Statistics Office, whose objective is to ensure the key economic data are available with the minimum possible delay.
In the case of the external trade statistics, and by extension the balance of payments statistics, for which the merchandise trade balance is the main component, I want to give a brief explanation of why the timeliness deteriorated in 1993.
When the Single Market was completed in January 1993, customs declarations were no longer required for the movements of goods within the European Union. Since these declarations were the source of the trade statistics, a new system was needed to collect the data. This new survey system — called Intrastat — was introduced in all EU countries in January 1993. The Intrastat survey is conducted by the Revenue Commissioners, while estimation, data analysis and publication is the responsibility of the Central Statistics Office. Trade with non-EU countries continues to be based on customs documents.
Before 1993, trade statistics were far more timely than most other economic statistics because traders had to complete customs documentation in order to ensure the speedy movement of goods. The Intrastat data collection system has lost this advantage, and is subject to the non-response and timeliness difficulties common to all direct statistical inquiries.
The delays experienced in the publication of the monthly statistics in 1993 were severe: the average timelag was 33 weeks, compared with eight to ten weeks under the old system.
During the first year of operation, efforts were necessarily focused on consolidating the new system. When a full year's results had been published, a joint CSO/Revenue review group was established. One of the main issues examined was timeliness. The review group reported in December 1994. As a result of the review, additional resources have been allocated to the VIMA Office — the branch of the Revenue Commissioners responsible for the Intrastat survey — and greater emphasis has been placed on the earlier compilation compliance by traders. Progress has been made in recent months. The most recent release, for April 1995, was published with a timelag of 23 weeks. It is anticipated that the monthly timelag should be down to 16/17 weeks during 1996. The ability to make further improvements beyond this point will be completly dependent on traders sending in their returns more quickly.
Ireland is not the only country experiencing delays in the publication of trade statistics. The change from an administrative to survey-based system of collecting the basic data has resulted in all EU countries being confronted by major problems in the collection, compilation and analysis of their trade statistics.
I commented on aspects of this matter earlier. During his period in office will the Minister of State do all he can to ensure that our general statistics are up to date? Appropriate decisions cannot be made on economic policy when working on figures which in some cases may be 18 months and are usually six months out of date. Apart from the excuse given about what happened in 1993 or 1994, I am sure those statistics are correct. Will the Minister ask the CSO to ensure we have up to date trade statistics and seek to secure necessary figures from traders and others who do not comply with its requirements?
What the Deputy is seeking is desirable and necessary, but as he will appreciate from his perspective when in Government there will be some teething problems when there is a dramatic change from one compilation system to another. Although there are major teething problems in this regard, we are not alone in that as other countries have experienced similar problems. The CSO is trying to ensure the maximum level of compliance. Following a review group's report a number of steps are being taken to improve the timeliness of the response from traders to ensure we receive necessary documentation and answers to queries. Traders, particularly the large ones, are being pursued more virorously by the Revenue Commissioners to submit their returns. Traders who have not responded are being contacted by telephone or by personal visit. Such contacts have been made on an earlier occasion and are being pursued to a greater extent now than was the case in the past. The Revenue Commissioners have a number of court cases pending involving traders who persistently respond late or do not respond at all. They are contacting larger traders who still submit paper returns to persuade as many as possible to submit their returns electronically as early as possible.
I accept the Minister of State has given this information in good faith, but he should contemplate what he has said. In a modern economy people must ring around companies to get statistics submitted so that judgments can be made about ongoing Government policies. If I were the Minister of State, I would have a quiet word with the person who wrote his reply.
The Minister is responsible. There will be no reflection on officials.
I was not being critical. A system of ringing around companies is crazy.
In that reply I gave the information on the precise position. We have inherited this position from the Deputies opposite and we are doing our best to make the system more expeditious, accurate and efficient. The name of the game is to ensure that data are collected as soon as possible.
That is all we are asking.
Make it more efficient.
It is not accurate to claim that the position regarding the accuracy of Irish figures is an isolated one; the same position applies in all other EU member states. Once we have overcome the teething problems matters will be ironed out.