CENTRAL STATISTICS OFFICE Presentation to Enterprise Statistics Liaison Group November 2011 Brief Description of CSO’s Arrangements for BOP/IIP data Collection, Compilation and Dissemination Catherine Finneran, BOP A&D Division November 2011

Presentation Structure BOP/IIP work organisation Data collection Differences between Foreign Trade Statistics and BOP Merchandise BOP monthly, quarterly, annual compilation and dissemination Integration of BOP and National Accounts Co-operation between CSO and the Central Bank of Ireland Future developments

1.1 BOP Organisation in CSO Director General Director - Macroeconomic Statistics BOP & Financial Sector Division (Data collection/processing) BOP Analysis & Dissemination Division

1.2 CSO BOP Compilation Responsibility BOP&FS Division è Maintenance of Survey Management System (SMS) è Conduct of surveys è Data processing BOP A&D Division è Analysis of overall quarterly BOP and IIP results, publication and dissemination of results è Publication and dissemination of FDI, PI and International Trade in Services statistics è Preparation of ECB monthly BOP estimates

2.1 BOP Quarterly/Annual Collection New statutory collection system (BPM5 methodology) introduced in 1998 Surveys conducted via Ministerial Order under the Statistics Act, 1993 BOP SMS (enterprise register and survey registry systems) maintained by CSO (BOP&FS Division) Quarterly enterprise surveys issued (smaller companies respond annually) Quarterly inquiries issued to Central Bank and NTMA Foreign Trade Statistics used (BOP adjusted to reflect change of ownership) CSO travel data used Other miscellaneous inquiries (e.g. gov. depts., embassies, charities)

2.2 BOP Quarterly/Annual Collection BOP SMS - Enterprise Register system - for manufacturing and non-financial companies maintained largely from CSO sources (CBR in Cork Office), Foreign Trade Statistics, other sources (e.g. media articles) - for financial service companies maintained largely from Central Bank, Companies Registration Office and Department of Finance sources

2.3 BOP Quarterly/Annual Collection BOP Surveys to non-financial companies - a detailed ‘Services’ survey (BOP10) to about 220 companies quarterly and about 260 different companies annually (480 in all); imports/exports data by country - a detailed quarterly ‘Assets and Liabilities’ survey (BOP40Q) to about 220 companies; positions, flows, valuation changes; income; data by country - a detailed annual BOP40 Survey to about 260 different companies; same data requirements as BOP40Q

2.4 BOP Quarterly/Annual Collection BOP Surveys to financial companies - detailed quarterly survey forms sent to IFSC and non-IFSC enterprises; data by country - services, income,transfers data (for non-life insurance enterprises); assets and liabilities data (positions, flows and valuation changes) - surveys are essentially to end investors but institutional investors included where appropriate - smaller companies report same data annually - target enterprise/activity coverage: 100% (full year)

2.5 BOP Quarterly/Annual Collection Types of financial companies and related surveys BOP30 Institutional investors incl. brokers - 40 BOP42 Non-life insurance/reinsurance incl. Captives BOP43 Life insurance/reinsurance incl. Captives - 95 BOP44 Group treasury - 50 BOP45 Asset finance companies, captive and agency treasury, service providers (trustees, custodians, administrators, on own account) - 760

2.6 BOP Quarterly/Annual Collection Surveys conducted jointly with CBI OFI1 Investment funds (including Money Market Funds) - 2,800 CRS1Banks - 88

2.7 BOP Quarterly/Annual Collection Quarterly inquiries to: - Central Bank of Ireland (reserves, other assets and liabilities incl. ‘Target’ balances; income) - National Treasury Management Agency (positions, transactions and income relating to foreign debt and National Pensions Reserve Fund) - National Asset Management Agency (positions, transactions, fees and income)

3. Differences between FTS and BOP Merchandise The main difference is due to treatment of Goods for Processing in BOP statistics. This is because, in general, BOP is based on change of ownership whereas FTS statistics are based on goods crossing borders. An example is where a company in Country A ships goods for processing to country B and then sells them to another company in Country C. Suppose the goods are valued at €100 when first shipped, the processing cost is €500 and the mark-up when sold to Country C is €200. The BOP Merchandise would record an export of €800 i.e whereas the FTS would record only €100. The BOP services would record an import of services valued at €500. Other smaller differences are due to estimates for smuggling, cross border shopping etc.

4.1 BOP Quarterly/Annual Compilation BOP results production è Requirements ä Quarterly publication/dissemination: 3 months (13 weeks) after reference quarter ä Detailed components for ECB, EUROSTAT, IMF and OECD è Results analysis ä Results for internal individual and team analysis: during Week 9 for the overall survey aggregates; different ‘views’ of data; ‘drill down’ facility within BOPFACTS system ä Final corrections, adjustments, etc. in Weeks 10,11 ä Results output from BOPFACTS in appropriate formats for different users (IOs and national users)

4.2 BOP Quarterly/Annual Compilation BOP quarterly results dissemination è Aim is to have all quarterly results available simultaneously è ECB, Eurostat and OECD results prepared for 3-month transmission deadline è IMF results transmitted in 3 month deadline è National publication (20 page release) data issued to meet IMF’s SDDS 3-month deadline

4.3 IIP Compilation IIP results production, publication and dissemination è Quarterly stocks data compiled from stocks data returned and reconciled with BOP flows èResults incl. country of counterpart detail supplied to ECB as input to Euro area IIP results è Results also supplied to IMF along with Co-ordinated Portfolio Investment Survey (CPIS) geographical data è IIP published quarterly (incl External Debt statistics) è Annual IMF CPIS results published in August

4.4 Annual FDI Compilation FDI results production, publication and dissemination è Annual (end-December) stocks data compiled from data returned; reconciliation with quarterly/annual FDI flows è Annual results supplied to Eurostat with country and economic activity (NACE Rev2) detail è FDI annual flows and stocks results published nationally in September with geographical and economic activity detail è OECD supplied with results following confidentiality suppressions used by Eurostat

4.5 International Trade in Services Results included in quarterly BOP release for 11 different Service groups More detailed results published annually in September giving detailed country breakdown and also cross classifying type of service by main counterpart countries

4.6 Data confidentiality Data confidentiality presenting increasing difficulty è Arises from very detailed analyses required (classifications by nature of transaction, financial instrument, institutional sector, country/region of counterpart, NACE Rev2 activity, etc. ) Practical problems è Rules for identification and ‘flagging’ è Checking of ‘confidential’ cells è Suppression of confidential information è Major resource burden

5. BOP and National Accounts BOP Current Account feeds into National Accounts GDP and GNI results è National Accounts LCU and data consistency exercise Provide quarterly BOP and IIP data for ROW sector of Financial Accounts (FA): è By instrument, by resident sector as far as possible Collect resident-resident positions and transactions data for FA: è By instrument, by resident sector as far as possible Liaise on matters of mutual interest

6.1 Co-operation between BOP and CBI National Statistics Board established a CSO project to examine the statistical potential of administrative records (SPAR) in 2003 A number of public bodies were covered by the SPAR Project ( ), including the CBI One outcome of the examination of CBI and CSO data collection was that there was significant duplication of effort and a consequential burden on financial data providers (i.e. financial enterprises) and on the two compilers One recommendation from the SPAR effort was that both organisations should examine the possibility of reducing the extent of duplicate collection and, where feasible, make arrangements for a more efficient, value for money approach

6.2 Co-operation between BOP and CBI (contd.) As a result of the SPAR Project as well as the ECB requirement for security-by-security reporting, in 2007, new arrangements were introduced whereby the CBI collect quarterly data from banks and investment funds and pass this micro data to CSO for processing into BOP and IIP statistics (as well as meeting certain CBI statistical requirements e.g. BIS data and OFI data); the reporting forms were developed jointly by CSO/CBI This arrangement is currently being extended to FVCs and will be further extended to cover the Insurance sector over the next few years Meanwhile, the existing quarterly CSO surveys of financial enterprises other than banks, investment funds and FVCs will continue This new arrangement has resulted in a deepening of the co- operation between the CSO and the CBI

7. Further Developments Further develop joint collection arrangement to cover other financial enterprises Prepare for the introduction of new international statistical standards (BPM6, BMD4, SNA.Rev 1)

THE END Thank you