The Use of Administrative Sources for Statistical Purposes Frameworks for the Access and Use of Administrative Data

Legal Frameworks

Data Sources There are two main sources of data Statistical surveys Administrative records Legal frameworks are necessary to enable and control the flow of data from both sources.

National Legal Frameworks Most statistical institutions have legislation defining their roles and responsibilities, e.g. a ‘Statistical Law’ Many new statistical laws introduced in the last 10 - 15 years Some existing statistical laws have been revised to include provisions for the use of administrative data

National Legal Frameworks Some national legal frameworks give more powers than others for access to administrative data Historical, political and cultural factors will have an impact on national frameworks, therefore these are not harmonised between countries

International Frameworks The European Union is developing a legal framework for official statistics, including references to the use of administrative data

Case Study - Ireland Statistics Act 1993: 30. - (1) For the purpose of assisting the Office in the exercise of its functions under this Act, the Director General may … request any public authority to— (a) allow officers of statistics … to have access to … any records in its charge, and (b) provide the Office … with copies or extracts from any such record, and the public authority shall … comply with any such request free of charge.

31. - (2) If any public authority proposes to introduce, revise or extend any system for the storage and retrieval of information … it shall consult with the Director General and accept any recommendations that he may reasonably make … (3) The Director General or any public authority may request the National Statistics Board to arbitrate on and, when agreement cannot be reached, to make recommendations to the [Prime Minister] for his decision on proposals made by the Director General …

Stages of Development The Eurostat “Handbook of Good Practices” identifies three key stages in the development of a legal framework: Foundation Consolidation Evolution

Stages of Development Foundation stage - The statistical institute starts to get access to administrative sources Consolidation stage – Administrative data are used to build registers and produce statistics

Stages of Development Evolution stage - The legal framework encourages greater co-operation between administrative data suppliers and the statistical institute concerning the collection of data for multiple purposes

How Data Collection is Changing

Timing National statistical institutes are at different stages in this process Different areas of statistics are at different stages in this process It takes at least 30 years to move from a population census based on paper questionnaires to one fully based on administrative data

Why is This Relevant? Legal frameworks should reflect the desired future position rather than the current reality, otherwise they will quickly become a barrier Start planning now for the next revision to the legal framework

Legislation on the Internet Austria - www.statistik.at/_institution/bstg2003.pdf Ireland - www.irishstatutebook.ie/ZZA21Y1993.html See sections 30 and 31 Norway - www.ssb.no/english/about_ssb/statlaw/statlov_en.html See chapter 3-2 Germany - www.destatis.de/download/ueber/bstag03_e.pdf See article 8

Policy Frameworks

Policy Frameworks Government policy on data sharing Codes of practice How can the national statistical institute influence this? Codes of practice International National

International Codes of Practice United Nations Fundamental Principles of Official Statistics Principle 5: Data for statistical purposes may be drawn from all types of sources, be they statistical surveys or administrative records. Statistical agencies are to choose the source with regard to quality, timeliness, costs and the burden on respondents

International Codes of Practice European Statistical System Code of Practice Principle 2: Statistical authorities must have a clear legal mandate to collect information for European statistical purposes. Administrations, enterprises and households, and the public at large may be compelled by law to allow access to or deliver data for European statistical purposes at the request of statistical authorities

National Codes of Practice Can reassure the public that data will only be used for specific and reasonable purposes Should be made available to the public, e.g. via the internet site of the national statistical institute.

Organisational Frameworks

Using Administrative Sources in Practice The use of administrative sources is enabled by a legal framework, in the context of a policy framework But - these are not usually detailed enough to cover all the administrative arrangements for access and use

What Else is Needed? Service Level Agreement (SLA) Some sort of agreement: Service Level Agreement (SLA) Administrative Protocol Contract Informal or verbal agreement Other type of agreement according to national customs and practices

Formal Agreements May not be legally enforceable, but are seen as a formal commitment Set out terms for the provision and use of data Signed by all parties Can cover one or more data flows (e.g. Government contracts)

Informal Agreements In a recent inventory, the British statistical system found it used over 1600 administrative data sets Many agreements were informal This increases the risk of problems, particularly if staff in either organisation move

What information should be included in a formal agreement? Group Exercise What information should be included in a formal agreement?

Agreement Contents 1 Legal basis Names of persons transferring and receiving data Detailed description of data covered Frequency of data supply Quality standards Confidentiality rules

Agreement Contents 2 Technical standards Provision of metadata Provisions for payment for supply data Period of agreement Contingencies for changes in circumstances Procedure for resolving disputes

Potential Challenges Financial agreements need to be negotiated Statistical institute may lack funds for data Suppliers may see data as having a commercial value Suppliers see no benefit to them

Possible Solutions Statistical law to give the statistical institute the right to obtain data Statisticians could offer expertise, analysis of data, or the use of statistical tools in exchange Coordination with other customers in the statistical institute or government could help to spread the cost

Quality Issues Data need to be ‘fit for purpose’ Priorities of administrative sources and statistical offices differ Administrative bodies may spend little or no time on validation work, particularly on data items that are not key to their purpose

Quality Conditions Have to be acceptable to both sides Could include: Content of records (e.g. number of items incorrectly classified should be less than 2%) Frequency and timeliness Provision of metadata Machinery for dealing with disputes

Technical Frameworks

Technical Frameworks Mechanisms for data transfer File formats Paper Magnetic media Secure on-line connection File formats Data / metadata standards XML SDMX GESMES

Case Study Administrative Data for the British Statistical Business Register

Legal Framework No Statistics Act Access to administrative data controlled by source-specific acts Subject to European Union legislation Legislation for the independence of the statistical office may increase access

Policy Framework Government policy favours more data sharing Requirement to cut costs and the burden on businesses Strong data protection legislation Civil liberties groups suspicious of government data sharing schemes

Policy Framework Codes of Practice Britain applies international standards National Code of Practice Supported by protocols, e.g. Protocol on Managing Respondent Load Statistical business register is the gateway for all administrative micro-data on businesses

Organisational Framework Service Level Agreements with other government departments reviewed annually signed at director level Statistical analyses / tools provided in return (e.g. automatic coding software) Contracts with commercial data suppliers

Organisational Framework Data suppliers represented on business register management committee Improving working relationships across government - ‘Business Data Sharing Group’

Technical Framework Mostly quarterly copies of administrative registers on CD-ROM Government Secure Intranet link for daily updates from Value Added Tax Flat text files Metadata as separate tables

Data Sources Four main administrative sources: Value Added Tax (VAT) data PAYE (income tax) data Company registration data Company ownership data (from a private sector source - Dun & Bradstreet)

Value Added Tax Data Framework: VAT Act / Formal agreement Frequency: Daily, weekly, monthly Timeliness: Delivery within 5 days Quality: Good Delivery: Electronic via secure intranet Key content: Name, address, NACE, turnover

Income Tax (PAYE) Data Framework: Finance Act / Formal agreement Frequency: Quarterly Timeliness: Within 1-4 months Quality: Employment - good Address - moderate Classification - poor Delivery: CD-ROM Key content: Address, NACE, employment

Company Registration Data Framework: Contract Frequency: Quarterly updates, continuous on-line access Timeliness: Good Quality: Good Delivery: CD-ROM / Internet Key content: Legal name, company number

Dun & Bradstreet Data Framework: Contract Frequency: Annual update, quarterly supplement, continuous on-line access Timeliness: Good Quality: Variable Delivery: CD-ROM / Internet Key content: Enterprise group links, foreign ownership codes

What national frameworks do you have in place? Group Discussion What national frameworks do you have in place? How effective are they?