1st Meeting of the Working Party on International Trade in Goods and Trade in Services Statistics - September 2008 Australia's experience (so far) in implementing BPM 6 Bernard Williams Director Balance of Payments and International Trade Statistics

ABS implementing BPM 6 and SNA 93 Rev. 1 for September quarter 2009 considerable progress has been made a number of challenges remain This presentation focusses on: processes used issues faced Overview

Organisational context ABS releases Australia's key macro- economic statistics national accounts, balance of payments, international investment position, financial accounts and government finance statistics National and international accounts within the Macroeconomics and Integration Group but number of different sections

Organisational context (continued) Source data for the accounts provided by: –areas within the Macroeconomics and Integration Group –other areas of the ABS –a range of non-ABS sources

Organisational context (continued) Source data for the accounts provided by: –areas within the Macroeconomics and Integration Group –other areas of the ABS –a range of non-ABS sources Main sources for Australia's BoP are: monthly merchandise trade statistics quarterly Survey of International Trade in Services. quarterly International Investment Survey

Principles Standards minimal departures applied consistently only implemented after extensive consultation and publicity

Principles Standards minimal departures applied consistently only implemented after extensive consultation and publicity Timing implement changes to GDP at same time

Principles Standards minimal departures applied consistently only implemented after extensive consultation and publicity Timing implement changes to GDP at same time Coordination and consultation central coordination provide clients with early advice equal access to all clients

Governance Overview by a high level internal ABS committee

Governance (continued) Committee to oversee tactical aspects of the implementation: plan and coordinate ABS input to standards forum for the discussion of key issues ensure appropriate consultation on key issues facilitate information sharing assess implications for ABS data collections plan and monitor progress on implementation of new standards in macro-economic statistics and data collections capturing outcomes to ensure successful and effective knowledge management

Phase 1 - Input to Development of International Standards 2005 to input to international standards Five phase strategy

Five phase strategy (continued) Phase 2 - Scoping initial assessment of issues standard template developed –the issue –lead area –stakeholders –relevant BPM 5 standard –current ABS practice –proposed BPM 6 standard –implications for ABS

Five phase strategy (continued) Phase 3 Work Program Integration and Internal Communication detailed workplans prepared recognise interdependencies between areas, system redevelopment plans and other developments

Five phase strategy (continued) Phase 4 External Communication information paper released key economic agencies contacted additional information papers planned for 2009

Five phase strategy (continued) Phase 5 Implementation by Annuals still in progress detailed work to modify or develop sources, questionnaires, methods and outputs producing necessary back series on the new basis updating reference material

Non essential development deferred Additional development funding through the ABS internal budget Additional funding received from the Australian government Funding

Starting point basically fully implemented BPM 5 foreshadowed some BPM 6 changes Significant changes include: merchanting goods for processing greater detail for the international investment position changed treatments to investment income Implementing BPM 6

Trade in goods procedures for processing merchandise trade data will result in increased focus on certain series For trade in services changes categorised under frame survey design questionnaire and explanatory notes models other system changes output presentation Implementing BPM 6 (continued)

Historical series revised to make the time series of estimates as continuous as possible classification changes new series a standard approach to measuring shifts in the level of series Implementing BPM 6 (continued)

General staff ongoing statistical production alignment with other significant changes focus Issues faced

Specific issues faced by the ABS included: 2009 meant that not all decisions known early issues more complex than anticipated complex relationship between commodity classifications size and complexity of the Survey of International Investment Issues faced (continued)

Challenges ahead Other international standards Lead time required for compiling estimates on a new basis Goods for processing

Challenges ahead (continued) Goods for processing negative service fees not capturing goods exported from Australia for processing and subsequent importation incomplete coverage pharmaceutical industry practices vary: –actually taking ownership –no change of ownership occurring –consumed after processing Customs based export and import documentation does not provide sufficient information

Conclusion Plan on the basis of the entire set of macro- economic statistics rather than the separate components Comprehensive change management processes established Stakeholders both within and outside the ABS consulted Establishing a set of principles provided a solid basis for decision making Considerable challenge to keep data sources and models up-to-date