Michael Nicholson Madrid November 2009 The challenges of developing a viable public policy for the re-use of Public Sector Information

The value of the opportunity? The MEPSIR study (2006) – PSI re-use market size €27 billion pa for the EU area The Office of Fair Trading (2006) – liberalising access to PSI for re-use would at least double the value of the UK market Capgemini (2008) – failure to exploit information assets was costing the UK public sector £21 billion And …… are we interested in, financial value or social value? Can PSI policies affect a nation’s competitive advantage?

The scope…….. PSI is the largest source of information in Europe (Review of Directive) “Between 15% and 25% of commercial information products and services are based on information held by the public sector.” (Lord Falconer, former Secretary of State for Constitutional Affairs and Lord Chancellor) “Government is a natural monopolist for most PSI.” (Treasury Spending Review) ………… and has democratic and social responsibilities

Should citizens who pay taxes have to pay Government again for its maps? Improved use of maps benefits transport which benefits the wider economy Faster delivery of goods Greater client satisfaction Fewer perishable products lost Less fuel consumed

Should information offering social benefits be free? For example, information on causes of traffic jams such as exceptional traffic movements Can cause delays Can cause accidents Wasted fuel Environmental damage … noise, pollution etc

Why now? Digital storage has become cheap Software developments now make viable: –Rapid retrieval from massive datasets –Projection of images and cartography –Experimentation at low cost The World Wide Web provides the vehicle for connectivity The user base has the technical competence These factors would not have been true 15 years ago

The legal framework Is generally unhelpful ….. The PSI Re-use Directive has loopholes –What is Public Task? –Cost or marginal cost? Average cost or item cost? –Lack of sanctions Competition Law –Will Regulators pursue their own governments? Intellectual Property Rights? Data Protection? Privacy issues? Cost of going to court……… and the time it takes

If the law is unhelpful then having a clear Policy at national level becomes essential Defensible policies are not contradictory –Why is some PSI free and others not? Policies require robust justification –If the private sector already can provide the information should it remain “Public Task” ? Policies need to produce benign results –Charging for PSI restricts its usage Policies must be achievable –Should all archives be digitised? Policies must be affordable –Can all PSI ever be made available free?

“Economic Issues in funding and supplying public sector information” (John Cook University of Queensland 2009) Differential pricing can only be sustained if applicants do not know what others are paying; Differential pricing can only be carried out in secret at the expense of openness and accountability. The process is eminently corruptible from a public finance point of view. Where trading occurs at a loss, the process ‘crowds-out’ competition from private firms and stifles opportunities for developing innovative services through value-adding. Where trading occurs at more than the marginal cost, the profits might be construed as additional ‘taxation’. Conclusion: the supply of PSI at no charge is generally justifiable on grounds of economic efficiency except sometimes where services are being offered: Full report (20 pages) can be accessed at :

The key dilemmas Whether to attempt to recover costs –Where a “service” is provided (eg retrieving a historic file of planning permissions) –Where there is a cost to distribution Whether to maximise re-use by liberalising access? Whether to commercially exploit PSI more widely

Maximising re-use and liberalising distribution In favour PSI is owned by the citizen anyway PSI has been paid for by the citizen Improves decisions about using scarce resources Stimulates innovation Encourages enterprise “Regulation” is easy BUT Will it increase taxes? Should all citizens bear the cost even if not users? Will funding for services be maintained in times of financial crisis? Will quality be maintained if not funded?

Commercially exploiting PSI In favour The user pays Ensures quality can be maintained or enhanced Keeps organisations in touch with real-world requirements Saves taxation Cross-subsidy of high and low value areas ensures national coverage BUT Limits access to PSI Higher cost because monopolies “gold-plate” services Lack of “boundaries” discourages private sector enterprise Public sector not natural innovators Regulation is expensive

Maximising re-use and liberalising distribution In favour PSI is owned by the citizen anyway PSI has been paid for by the citizen Improves decisions about using scarce resources Stimulates innovation Encourages enterprise “Regulation” is easy BUT Will it increase taxes? Should all citizens bear the cost even if not users? Will funding for services be maintained in times of financial crisis? Will quality be maintained if not funded?

To get the best out of PSI the public and private sectors must work well together But ….in many parts of the EU… obtaining PSI for re- use from the public sector is not yet as easy or attractive as it should be

But both public and private sectors can play to each others’ strengths if encouraged to do so Public Sector Massive resources Access to core reference information nationally Public duty obligations Widely based requirements Private Sector Greater flexibility Risk takers Innovators Wider market understanding

It is the clarity and good sense of the policies that will dictate how well we can work together

PSI Alliance or