## _cr0806 ## Source details **Canonical URL:** [_cr0806](https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2008/_cr0806.pdf) ## Other formats - [Markdown version](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2008/_cr0806.pdf.md) - [Structured JSON version](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2008/_cr0806.pdf.json) --- ### Overall assessment - The Netherlands subscribed to the IMF’s Special Data Dissemination Standard (SDDS) on June 11, 1996, and started posting metadata on the DSBB on September 19, 1996. - The Netherlands has met all the SDDS requirements since April 26, 2000 and is currently in full observance of the SDDS. - SDDS specifications for coverage, periodicity, and timeliness are met for all data categories; SDDS data categories are disseminated on the Netherlands’ National Summary Data Page, hyperlinked on the DSBB and updated on a timely basis. - Membership of CBS in the ESS and DNB in the ESCB strongly shapes policies and practices and fosters cooperation and sharing of good practices. ### Prerequisites of quality and assurances of integrity (legal, institutional, resources, professionalism) - Legal and institutional frameworks: - Statistics Netherlands Act of November 2003 (Statistics Act) establishes CBS mandate and confidentiality; Bank Act of 1998 and External Financial Relations Act of 1994 embed DNB responsibilities. - DNB subscribes to the Public Commitment with respect to the ESCB’s Statistical Function. - Agency responsibilities and cooperation: - CBS: collects, processes, and disseminates all macroeconomic statistics excluding BOP and monetary statistics. - DNB: compiles BOP statistics and cooperates closely with CBS; CBS–DNB agreement ratified in 2006. - Resources and staffing: - CBS staff reduced by five percent in the period 2000–2005; "further cuts are envisaged." - CBS: planned staff cuts and response-burden reduction will preclude maintaining current PPI practices (e.g., sample size) and hamper new projects (compiling GFS per GFSM 2001, improving local government source data, improving data on services, enhancing CPI methods). - DNB: balance of payments staff resources reduced but "commensurate" with current work program; staff turnover "relatively low"; Statistics Department staff for BOP about 30 full-time. - PPI-specific: aggregate PPI pricing sample to fall from about 25,000 to about 17,500 in January 2009 (a decrease of 30 percent); PPI task group about 12 FTE; Services Prices group about 11 FTE; field collection about five FTE. - Professionalism and transparency: - CBS: Code of Practice, seven high-level advisory boards, separate quality verification unit (established 2000), unit for quality assurance (DMK), R&D capacity (MOO). - DNB: Code of Conduct emphasizing integrity, formal confidentiality safeguards, extensive documentation and helpdesk. - Confidentiality and reporting mandates: - CBS: Statistics Act articles 37–42a protect confidentiality; sections 33–36 authorize data use; sections 43–52 specify fines with maximum forfeiture Euro 20,000 (exceptional max Euro 500,000). - DNB: formal reminders and fines for negligent reporters; administrative fine up to € 900.000 per individual case for repeated noncompliance. ### Methodological soundness — conformity, deviations, and dataset specifics - General conformity: - National accounts compiled per 1995 ESA; CPI and PPI follow international manuals and EU regulations; BOP compiled according to BPM5 and ECB/Eurostat legal requirements. - CBS produces annual and quarterly GFS covering consolidated general government based on 1995 ESA and the 1995 ESA Manual on Government Deficit and Debt; MOF compiles monthly GFS for budgetary central government on same basis. - Noted gaps and deviations: - GFSM 2001: compilation/presentation in an integrated GFSM 2001 framework has not been developed; GFSM 2001 would broaden scope (cash flow statement, complete balance sheet including liabilities for unfunded/nonautonomous government employee pension scheme). - CPI: classification largely based on COICOP but with deviations (two additional divisions: COICOP division 13 for consumption-based taxes and government services and COICOP division 14 for expenditure by Dutch residents abroad); these two artificial divisions comprise about eight percent of the overall CPI (2006 relative importance values). - GFS: lacks the detailed tax revenue breakdown recommended in GFSM 2001; swaps misclassified as accounts payable/receivable in GFS sector accounts. - PPI: sample design historically cut-off based on PRODCOM 2000; small-company exclusion for goods PPI; planned move to 2005-based sample in January 2009 and probability proportional to size (PPS) sampling thereafter. ### Accuracy and reliability — source data, techniques, validation - National accounts: - Annual source data extensive; manufacturing intermediate inputs collected annually; no quarterly enterprise collections for GFCF or inventories. - SUT compiled at detailed level and balanced in current prices and previous year prices; double deflation used at detailed level; perpetual inventory method for consumption of fixed capital. - CPI: - Detailed price collection program; significant use of supermarket scanner data; about 1,300 products, about 63,000 prices collected monthly; scanner data represent about 30 percent of supermarket purchases. - Weights updated annually (since 2007); prior practice five-yearly then moved to annual updating; CPI final after one month and seldom revised. - Owner-occupied housing valued by imputed rent; insurance treated on a gross-gross basis. - PPI: - Based on PRODCOM; publication mostly at four-digit PRODCOM (902 publication cells) and 2-digit NACE (49 publication cells). - Sample & weights: current sample based on PRODCOM 2000; plan to update to 2005 in January 2009, implement PPS sampling, and renew 20% of sample annually from 2009; objective to resample 25% of PRODCOM groups annually in longer-term plans. - Index practice: elementary indices use geometric means; aggregation uses Laspeyres; PPI is preliminary for five months. - BOP: - Source data from comprehensive direct-reporting programs (DNB) and from CBS surveys for current account components; stringent consistency checks, reconciliation with IIP; errors and omissions have occasionally been large and actively monitored. - Recording: in practice some deviations (e.g., loan repayments recorded when made, not when due); valuation issues (gold valuation on quarterly basis not always at end-period market price) addressed in recommendations. ### Serviceability — periodicity, timeliness, revisions, consistency - SDDS compliance: - Statistics meet or sometimes exceed SDDS periodicity and timeliness requirements; releases follow preannounced schedules on CBS and DNB websites. - National accounts timeliness: - Flash quarterly estimates: release 45 days after quarter end; regular quarterly estimates: 90 days after quarter end. - Annual estimates: first annual about seven months after reference year; improved annual one year later; definitive about two years and seven months after reference year. - CPI timeliness: - Monthly production; released usually on the first or second Thursday following the reference month; collection spread over first three weeks of month. - PPI timeliness: - PPI for goods released on the last working day of the month following the reference month; services PPIs issued quarterly. - Revisions and transparency: - Revisions follow regular and well-publicized schedules across datasets; preliminary/revised data generally identified (national accounts use symbols); notable exception: DNB’s policy for BOP revisions not public and preliminary/revised data not clearly identified in DNB publications—staff recommendation to publicize revisions policy and identify data status. - PPI preliminary for five months; PPI program evaluating declaring indices final sooner. - Consistency: - Consistency within and across datasets is generally adequate; recent cooperation between CBS and DNB to harmonize NA and BOP, but practical differences remain (larger for services). ### Accessibility and user support - Dissemination media and formats: - Macroeconomic statistics readily accessible; StatLine provides extensive data and metadata; many publications available as PDF and in hard copy. - Some user interface issues: English version of CBS website lacked listing of the quarterly national accounts De Nederlandse Conjunctuur; StatLine could be more user-friendly. - Metadata and assistance: - Detailed metadata, methods, and analytical/background papers available on websites; contacts for each dataset are publicized; Infoservice is single contact point for CBS. - Advance release calendars: - Calendar published; only one-third of survey respondents aware of advance release calendars despite availability on CBS, DNB and IMF DSBB. ### Users’ survey findings (targeted user survey) - Questionnaires sent: 129; Responses received: 50 (39 percent). - Overall quality rating (five point scale: 1 = poor, 5 = excellent): average 4.0. - Distribution and perceptions: - 74 percent of respondents felt Netherlands’ official statistics are at least as good as those of other countries in the region; 23 percent considered them better. - Sectoral quality ratings varied by up to 0.5 between highest (BOP) and lowest (national accounts). - Users’ priorities and concerns: - Interest in more disaggregated data on prices, production, FDI, trade in services, GFS. - Concerns about lag between preliminary and final national accounts and timeliness of hard copy publications. - Desire for improved revisions policy and practices and more user-friendly websites. ### Staff recommendations and planned actions (selected and dataset-specific) - Cross-cutting resource recommendation: - Ensure available resources remain commensurate with maintaining current compilation/dissemination practices (e.g., PPI sample size) or taking on new projects (compiling GFS according to GFSM 2001, improving local government source data, improving data on services, enhancing CPI methods) given significant staff reductions and envisaged additional cuts. - National accounts: - Develop quarterly data sources to measure enterprise changes in inventories and capital formation. - Calculate and publish more detailed seasonally adjusted series; publish quarterly percentage change tables for seasonally adjusted aggregates rather than original aggregates. - Develop quarterly enterprise collections for gross fixed capital formation and profits (noting cost/response-burden trade-offs). - Make greater use of Denton method for aligning quarterly series to annual benchmarks (planned). - Consumer Price Index (CPI): - Review deviations from COICOP classification, particularly inclusion of taxes based on consumer asset holdings. - Re-examine treatment of insurance on a gross-gross basis and consider international best practice. - Expand scanner data use subject to IT resources; start project to develop statistically-based outlet sample in 2008. - Develop methods to estimate sampling errors where feasible. - Construct longer time series for CPI indices (decision to publish series from 1995 onward; longer series published in first half 2008). - Producer Price Index (PPI): - Implement continuous sampling processes after the January 2009 update; decision: sample continuously from January 2009 with objective to renew 20% of the sample annually. - Move from cut-off design to PPS sample in 2009 to allow calculation of sampling errors; mathematical formulas available; implementation scheduled end-2009 or beginning-2010. - Update weight base period from 2000 to 2005 in January 2009 and pursue continuous updating of product category weights. - Keep PPI resources sufficient to maintain quality; planned reductions will reduce sample size (see PPI staff and sample figures). - Government Finance Statistics (GFS): - Compile and disseminate annual and quarterly GFS in line with GFSM 2001 and produce a Statement of Sources and Uses of Cash and a complete balance sheet for general government and subsectors. - Interim: include liabilities for unfunded nonautonomous employee pension schemes as a memorandum item. - Compile and publish detailed classification of tax revenue according to GFSM 2001. - Improve local government source data and quarterly source data for accounts payable/receivable. - Explore valuation of local government unquoted equity holdings at market values; initial estimates indicate total financial assets underestimated by about 15 percent due to valuation policy of local unquoted holdings. - Explore classifying accrued interest with the underlying instrument rather than in other accounts receivable/payable. - Publish advance release calendar for central government operations and central government debt on MOF and CBS websites. - Balance of Payments (BOP) statistics: - Disseminate more detailed services data consistent with BPM5; DNB intends to resume full List of Standard Components presentation in Statistical Bulletin. - Consider classifying free trade zones as part of goods per BPM5, weighing against EU special trade concept and response burden. - Consider recording loan repayments when due to align with BPM5 and improve vulnerability analysis; to be reconsidered with BPM6 implementation. - Avoid market valuation of gold positions on a quarterly basis and follow BPM5 guidance on valuation at end of reporting period. - Publicize regular revisions policy and identify status of preliminary/revised data in publications (DNB to implement in Statistical Bulletin December 2007). - Provide information on reverse flows in direct investment with BPM5-recommended detail and expand IIP quarterly data on the National Summary Data Page for SDDS (IIP quarterly data to be implemented with 2007Q3 data). ### Conclusions and next steps - Report structure and follow-up: - Section II: summary assessment by agency and dataset using four-point rating scale; Section III: staff recommendations; Appendix I: Dutch practices vs SDDS Coverage, Periodicity, and Timeliness. - Authorities’ response and detailed assessments presented separately. - Implementation highlights and timelines noted by authorities: - PPI: new sample and 2005-based weights scheduled January 2009; continuous sampling and PPS sampling target implementation 2009–2010. - BOP and IIP: enhancements to tables and reconciliation to be published in Statistical Bulletin around December 2007; revision policy documentation to be added. - National accounts and CPI: extension of seasonally adjusted series and CPI time-series enhancements underway; CPI redesign IT resources expected in 2008 for scanner data expansion. *Source: _cr0806 - Data Quality Assessment Framework July 2003—Summary Results and selected chapters and tables from the IMF staff report PDF* ### 1. Data Quality Assessment Framework July 2003—Summary Results.............................9 ### 1. Data Quality Assessment Framework July 2003—Summary Results ### Overall assessment - The Netherlands subscribed to the IMF’s Special Data Dissemination Standard (SDDS) on June 11, 1996, and started posting its metadata on the Dissemination Standards Bulletin Board (DSBB) on September 19, 1996. - The Netherlands has met all the SDDS requirements since April 26, 2000 and is currently in full observance of the SDDS. - SDDS specifications for coverage, periodicity, and timeliness are met for all data categories; SDDS data categories are disseminated on the Netherlands’ National Summary Data Page, hyperlinked on the DSBB and updated on a timely basis. - The membership of Statistics Netherlands (CBS) in the European Statistical System (ESS) and the Netherlands Bank (DNB) in the European System of Central Banks (ESCB) strongly shape statistical policies and practices and foster cooperation, sharing of good practices, and professionalism. ### Prerequisites of quality and assurances of integrity - Legal and institutional frameworks: - The Statistics Netherlands Act of November 2003 (Statistics Act), supported by Dutch and European regulations, establishes an adequate legal mandate for data collection and confidentiality for CBS. - The Bank Act of 1998 embeds DNB responsibilities; the External Financial Relations Act of 1994 specifies the responsibility for compiling balance of payments statistics, supporting mandatory reporting and confidentiality. - DNB subscribes to the Public Commitment with respect to the ESCB’s Statistical Function. - Agency responsibilities and cooperation: - CBS is responsible for collecting, processing, and disseminating all macroeconomic statistics excluding balance of payments and monetary statistics. - DNB compiles balance of payments statistics and cooperates closely with CBS; an agreement between CBS and DNB was formally ratified in 2006. - Resources and staffing: - CBS staff resources have been reduced significantly in recent years and further cuts are envisaged; planned staff cuts and measures to reduce response burden will preclude maintaining current practices in the compilation of the PPI (e.g., sample size) and hamper taking on new projects (e.g., compiling GFS according to GFSM 2001, improving local government source data, improving data on services, enhancing CPI methods). - Despite a significant reduction in staff resources for balance of payments compilation, DNB staff resources are commensurate with the current work program; staff turnover is relatively low. - Professionalism and transparency: - CBS maintains seven high-level advisory boards and bilateral contacts with users; CBS demonstrates awareness of quality, strict technical procedures, and a Code of Practice. - DNB promotes professionalism, follows internationally accepted guidelines, and its Code of Conduct emphasizes integrity. - Terms and conditions for production and dissemination are available to the public; information on internal government access prior to release is made known. ### Methodological soundness - General conformity: - Dutch macroeconomic statistics are generally in accordance with internationally accepted standards and guidelines on concepts and definitions, scope, classification and sectorization, and basis for recording. - National accounts compiled according to the European System of Accounts 1995 (1995 ESA). - CPI and PPI follow relevant international manuals and European regulations. - Balance of payments compiled according to BPM5 and ECB and Eurostat legal requirements. - CBS produces annual and quarterly GFS covering consolidated general government based on 1995 ESA and the 1995 ESA Manual on Government Deficit and Debt; MOF compiles monthly GFS covering budgetary central government on the same basis. - Gaps and deviations: - Compilation and presentation of fiscal data in an integrated framework following GFSM 2001 have not been developed; GFSM 2001 would broaden GFS scope (e.g., add cash flow statement and complete balance sheet including liabilities for unfunded and nonautonomous government employee pension scheme). - Some deviations from international standards in classification and sectorization: CPI largely based on COICOP but with deviations (separate categories for consumption-based taxes and spending by Dutch residents abroad); GFS lacks detailed breakdown of tax revenue recommended in GFSM 2001; swaps are misclassified as accounts payable/receivable in GFS sector accounts. ### Accuracy and reliability - Source data and collections: - National accounts benefit from an extensive range of annual source data and production statistics for many industries; detailed intermediate inputs collected annually for manufacturing. - No quarterly collections from enterprises for gross fixed capital formation or inventories. - CPI source data broadly adequate. - PPI uses a five-year rotation process that can lead to company and product samples being out-of-date. - BOP source data come from comprehensive collection programs based primarily on direct reporting of banks and nonbank enterprises and government units. - Government finance statistics: - Source data broadly adequate but local government source data quality is often compromised by not always following required definitions and classifications. - Adequate source data for some accounts payable/receivable in quarterly financial accounts are not available. - Statistical techniques: - Statistical techniques and procedures for assessing source data and outputs are sound across the five macroeconomic datasets and under continuous review to ensure statistics portray reality. ### Serviceability (periodicity, timeliness, and revisions) - Periodicity and timeliness: - Statistics meet, and sometimes exceed, SDDS periodicity and timeliness requirements. - All statistics are released following a preannounced schedule posted on CBS and DNB websites. - Revisions and user information: - Clear and transparent information about revisions schedule and revisions is generally provided across datasets, though balance of payments revisions practices need improvement. - DNB’s policy for data revisions is not made known to the public; preliminary or revised data are not clearly identified in publications. - Consistency: - Consistency within and across datasets is adequate and data series are comparable over time. ### Accessibility and user support - Dissemination and formats: - Macroeconomic statistics are readily accessible and disseminated simultaneously to all users; official websites provide comprehensive data in a variety of formats. - There is room to make the CBS website more user friendly; users’ survey results are consistent with this finding. - More seasonally adjusted series should be disseminated; BOP lacks detailed breakdown for classification of services and on reverse investment flows. - Metadata and assistance: - Websites and publications provide adequate information on definitions and methods, including analytical and background papers. - Contacts for each dataset are clearly identified and timeliness and quality of assistance to users is routinely monitored. - Advance release calendars: - Only one-third of survey respondents were aware of the existence of advance release calendars, despite calendars being available on CBS, DNB, and the IMF’s Data Standards Bulletin Board for several years. ### Users’ survey findings - Survey scope and response: - Questionnaires were sent to 129 targeted users and 50 responses were received (39 percent). - Overall quality ratings: - On a five point scale (1 = poor and 5 = excellent), the average rating for the overall quality of all official statistics was 4.0. - Very little variation across datasets; a 0.5 difference between the sector that scored the highest (balance of payments) and the one that scored the lowest (national accounts). - 74 percent of respondents felt that the official statistics of the Netherlands are at least as good as those of other countries in the region, and 23 percent considered them to be better. - Element-specific views: - Respondents expressed the most satisfaction with methodological soundness and accuracy of price and national accounts statistics. - Room for improvement identified in government finance and balance of payments statistics. - Broad satisfaction with periodicity, timeliness and accessibility of statistics and related metadata. - User requests and comments: - Interest in more disaggregated data on prices, production, foreign direct investment, trade in services, and government finance statistics. - Concerns that the lag between preliminary and final national accounts is too long and that the timeliness of hard copy publications could be improved. - Websites generally adequate but could be more user-friendly; desire for improved revisions policy and practices. ### Summary assessment structure and next steps - The remainder of the report is organized as: - Section II: summary assessment by agency and dataset using a four-point rating scale, with Dimensions “0” and “1” presented in Tables 2a–2b and Dimensions “2” to “5” in Tables 3a–3e. - Section III: staff recommendations. - Appendix I: Dutch practices compared with the SDDS Coverage, Periodicity, and Timeliness of Data. - Authorities’ response and detailed assessments are presented in separate documents. *Source: _cr0806 - 1. Data Quality Assessment Framework July 2003—Summary Results* ### 1.2 Transparency ### _cr0806 - 1.2 Transparency ### Summary of assessment framework and practice levels - The document applies the DQAF (Data Quality Assessment Framework) five dimensions: 0 Prerequisites of quality; 1 Assurances of integrity; 2 Methodological soundness; 3 Accuracy and reliability; 4 Serviceability; 5 Accessibility. - Practice-level definitions reproduced in the source: - "Practice observed: Current practices generally meet or achieve the objectives of DQAF internationally accepted statistical practices without any significant deficiencies." - "Practice largely observed: Some departures, but these are not seen as sufficient to raise doubts about the authorities’ ability to observe the DQAF practices." - "Practice largely not observed: Significant departures and the authorities will need to take significant action to achieve observance." - "Practice not observed: Most DQAF practices are not met." - "Not applicable: Used only exceptionally when statistical practices do not apply to a country’s circumstances." ### 0. Prerequisites of quality and 1. Assurances of integrity — Statistics Netherlands (CBS) - Legal and institutional environment - Responsibility for collecting, processing, and disseminating all macroeconomic statistics (except balance of payments and monetary and financial statistics) rests with the CBS, as defined in the Statistics Act. - EU membership "largely shapes official statistical policies and practices." - Confidentiality of reporters’ data is protected; CBS has a strong legal mandate and measures to ensure reporting from nongovernmental units. - For local governments, specific measures are incorporated in the BBV Regulation of 2004. - Resources - "In recent years, the CBS budget has been reduced significantly and further cuts are envisaged." - Staff resources are "generally commensurate" with current programs but "are tightening." - Planned staff cuts and a policy to reduce response burden will preclude maintaining current practices in the compilation of the PPI (e.g., sample size) or taking on new projects (e.g., compiling government finance statistics (GFS) according to the Government Finance Statistics Manual (GFSM 2001), improving the quality of local government source data, improving the data on services, and enhancing CPI methods). - Staff have adequate computing resources and physical facilities; multi-year budgeting program provides funding adequate to perform required tasks. - Relevance and other quality management - Regular contacts with users via seven high-level advisory boards and other meetings. - A separate unit dedicated to quality verification established in 2000; respondent and user surveys and EC verification under EU regulations are used. - Professionalism and Transparency - CBS is an autonomous agency under the Ministry of Economic Affairs; a Code of Practice has been adopted. - Legislation makes provisions for independence; staff participate in seminars and workshops. - All information on legislation and regulations is available on the CBS website and in publications. - No internal government access to statistics prior to release, except limited access for some "strategic relations" under the Statistics Act. - Advance notice is always given of major changes in methodology, sources, and/or statistical techniques. - Ethical standards - The Code of Practice guides CBS staff behavior on impartiality, reliability, relevance, cost effectiveness, statistical confidentiality, and transparency; the Code is made known to staff. ### 0. Prerequisites of quality and 1. Assurances of integrity — Netherlands Bank (DNB) - Legal and institutional environment - Responsibility for compiling statistics embedded in the Bank Act of 1998; balance of payments responsibility stated in the External Financial Relations Act of 1994. - DNB has a long-standing tradition of disseminating data as a public service; compiles balance of payments in close cooperation with CBS. - Agreement between CBS and DNB ratified in 2006 to enhance cooperation. - Data collection ensures confidentiality; helpdesk available on weekdays; formal monthly reminders and fines imposed on negligent reporters. - Resources - Resources dedicated to balance of payments statistics are commensurate with DNB’s programs. - Staff turnover relatively low; existence of an experienced core staff. - Current budget framework allows timely anticipation of needed changes. - Relevance and other quality management - Regular communications with user groups (some scheduled three or four times a year). - Robust procedures: data outlier checks, monthly quality indicators on response rates, and data analysis before releases. - Legal obligations to ECB and Eurostat to assess and monitor quality of national contributions. - Professionalism and Transparency - Independence regulated by Section 108 of the Treaty Establishing the European Union and Section 7 of the Statutes of the European System of Central Banks (ESCB). - External Financial Relations Act of 1994 allows Minister of Finance attributions only to the extent they do not conflict with the EU Treaty. - DNB subscribes to the Public Commitment with respect to the ESCB’s statistical function; staff engagement in professional bodies and international committees. - DNB publications and website provide extensive documentation; no internal access to data prior to release. - Advance notice of major methodological changes given to direct reporters (example: abolition of the settlement system in 2003). - Ethical standards - Integrity is central to the DNB’s Code of Conduct; staff are regularly reminded of compliance. ### 2–5 Dimension assessments — National Accounts (CBS) - Methodological soundness (Concepts and definitions, Scope, Classification/sectorization, Basis for recording) - National accounts follow the concepts and definitions of 1995 ESA. - Scope includes annual and quarterly tables recommended by ISWGNA, and extensions: regional accounts, social accounting matrices, labor accounts, environmental accounts, and tourism satellite accounts. - Classification/sectorization broadly in line with internationally recommended systems; institutional sector accounts produced for all sectors and several sub-sectors. - Basis for recording is in accordance with the 1995 ESA. - Accuracy and reliability (Source data, Assessment of source data, Statistical techniques, Assessment and validation, Revision studies) - Annual source data range is extensive; production statistics available for many industries with detailed intermediate inputs collected every year for manufacturing. - No quarterly enterprise collections for gross fixed capital formation or inventories. - Source data are regularly assessed for coverage, misreporting, and sampling errors; feedback provided to data suppliers. - Statistical techniques are in accordance with good practice: supply and use tables compiled at detailed level and balanced simultaneously in current prices and in prices of the previous year; chain volume measures compiled; FISIM allocated to users; no inventory valuation adjustment calculated for manufacturing. - Systematic procedures are used to assess and eliminate discrepancies in intermediate data. - Revision studies undertaken on an annual basis and results published in the quarterly national accounts. - Serviceability - Quarterly and annual accounts meet SDDS requirements. - Consistent annual time series generally available from 1969 and quarterly series from 1977; following comprehensive revisions (e.g., in respect of 2001) historical series are revised progressively. - Quarterly national accounts releases are always consistent with the latest annual accounts; national accounts can be reconciled with other datasets. - Revisions follow a regular and well-publicized schedule; comprehensive revisions approximately every five years and are well documented. - Accessibility - National accounts data readily accessible via printed publications and on the website; released simultaneously to all users. - Detailed dissections of major aggregates disseminated and long time series available. - Suggestion in source: "more seasonally adjusted series should be disseminated." - Useful metadata included in regular publications; detailed concepts, sources and methods available in print and on the website; Occasional Papers on national accounting topics regularly produced. - CBS has one contact point for all users, Infoservice, publicized on website and in publications. ### 2–5 Dimension assessments — Consumer Price Index (CBS) - Methodological soundness - CPI generally follows internationally accepted concepts and definitions as specified in the CPI Manual and for the SNA 1993 and HICP. - Scope defined broadly in accord with approved practice; index corresponds to a consumption CPI by employing imputed rental value as measure of shelter cost for owner-occupants. - Classification largely based on COICOP, with some deviations (separate categories for consumption-based taxes and spending by Dutch residents abroad). - Basis for recording follows international standards: consumption expenditures measured at purchaser’s prices and recorded for the period of purchase. - Accuracy and reliability - CBS maintains a detailed program for price collection, including significant use of supermarket scanner data; price collection spread over first three full weeks of the reference month. - Expenditure weights drawn primarily from national accounts; household budget survey used to disaggregate below COICOP four-digit level. - Source data regularly and rigorously assessed. - Appropriate statistical techniques used for index calculation, imputation, and quality adjustments; weights updated annually; products introduced continuously. - Index results reviewed by a separate analysis unit and assessed against available information. - CPI is final after one month and seldom revised; weight updates analyzed and documented. - Serviceability - Periodicity and timeliness meet SDDS requirements. - Consistency maintained within rebasing periods; base period revisions documented and explained. - Use of national accounts weights ensures CPI can be reconciled with national accounts series and HICP. - CPI is preliminary for one month and this is clearly identified; any revisions outside normal schedule are announced and explained. - Accessibility - Detailed data and a brief analytical discussion accompany CPI releases on the CBS website; comparisons with HICP provided. - Data series downloadable in a variety of formats. - A published schedule of CPI release dates presented through June 2008. - Website contains detailed information on CPI definitions and methods, including analytical and background papers; a brochure explaining CPI concepts is available. - CBS Infoservice is the single user contact point; all publications and services catalogued on the CBS website. ### Noted operational and policy pressures - CBS faces "significant" recent budget reductions and envisaged further cuts, leading to tightening staff resources and planned staff cuts. - Planned staff cuts and response-burden reduction policy will limit capacity to maintain PPI sample size and to undertake new projects such as: - compiling government finance statistics (GFS) per GFSM 2001, - improving quality of local government source data, - improving data on services, - enhancing CPI methods. *Source: _cr0806 - 1.2 Transparency (excerpts) — assessment tables and narrative from the IMF staff report PDF.* ### 2. Methodological soundness ### _cr0806 - 2. Methodological soundness ### Methodological soundness — Producer Price Index (PPI) - Concepts and definitions: - PPI constructed in basic accord with the international PPI manual and the EU regulations on short-term statistics. - Publication at the four-digit PRODCOM level for commodities and the 2-digit NACE level for industrial sectors. - Scope: - Comprises sales of resident market enterprises for mining, manufacturing, and electricity, gas, steam, and water supply (divisions C, D, and E). - Separate index series for exported and imported goods. - Indexes for a number of services industries are published or scheduled for publication. - Classification/sectorization: - Goods classified by the PRODCOM scheme, which maps into the NACE categories. - Activity and service industry indexes classified by the NACE. - Basis for recording: - Producers’ market transactions recorded net of excises and VAT; specifications include transaction characteristics such as type of purchaser. - Source data: - Based on detailed data for the Dutch economy, with underlying samples of firms and products based primarily on PRODCOM data for 2000. - Program will move to a 2005-based sample in 2009. - Plan to implement a continuous re-sampling process subject to resource availability. - Statistical techniques: - Internationally accepted techniques used for index calculation and quality adjustment. - Components weighted using PRODCOM and national accounts information. - Weight base period will be updated from 2000 to 2005 in January 2009. - Assessment and validation: - Results routinely assessed against other PPI series, export and import price series, and comparable CPI data. - Revision practices: - Weight and sample revisions carefully monitored and reviewed. - Research ongoing to assess PPI policies on preliminary index publication. - Periodicity and timeliness: - PPI meets SDDS periodicity and timeliness. - PPI for goods released on the last working day of the month following the reference month. - Services PPIs issued quarterly. - Consistency: - PPI series are consistent in aggregation. - Revision policy and practice: - PPI is preliminary for five months and this is made clear in all releases. - Weight revisions accompanied by announcements and explanations. - Users informed when unscheduled revisions are required. - Data and metadata accessibility: - Release is web-based with numerous clear tables and a brief presentation of key price movements. - Data series for adequate historical periods downloadable in a variety of formats. - A schedule of PPI release dates is presented through June 2008. - CBS website contains detailed information on PPI definitions and methods, including analytical and background papers. - Assistance to users: - Single contact point: Infoservice, well-publicized; all publications and services catalogued on the CBS website. ### Methodological soundness — Government Finance Statistics (GFS) - Concepts and definitions: - CBS produces annual and quarterly GFS covering consolidated general government based on 1995 ESA and the 1995 ESA Manual on Government Deficit and Debt. - MOF compiles monthly GFS on the same basis, covering budgetary central government. - GFS disseminated domestically are not presented in an integrated framework useful for fiscal analysis as described in the GFSM 2001; plans to disseminate GFS in line with GFSM 2001 have not been developed. - Scope: - Broadly consistent with GFSM 2001 but lacks a cash flow statement, a breakdown of other economic flows into holding gains and volume changes, and a complete balance sheet that would include liabilities for the unfunded non-autonomous government employee pension scheme. - Classification/sectorization: - Sectorization consistent with 1995 ESA and GFSM 2001. - Detailed classification of tax revenue lacking in 1995 ESA. - Classification of swaps in sector accounts does not follow 1995 ESA recommendations. - Basis for recording: - Flows and stocks valued at market prices; debt valued at face and market values. - Recording on an accrual basis with appropriate grossing/netting procedures. - Source data and assessment: - Source data broadly adequate, but local government source data quality often compromised by not following required definitions and classifications. - Adequate source data for some accounts payable/receivable in quarterly financial accounts are not available. - Well-established procedures exist to assess source data routinely against other sources. - Statistical techniques: - Sound techniques used to estimate missing data and to make quarterly and annual data consistent. - Adjustments to source data (e.g., cash to accruals using the time-adjusted method) are sound. - Compilation procedures are well-documented. - Assessment and validation: - Intermediate data cross-checked with related data, particularly financial accounts; discrepancies investigated and resolved if possible. - Revision studies: - Revision studies conducted periodically to assess data reliability. - Periodicity and timeliness: - Monthly, quarterly, and annual GFS compiled and disseminated meeting all SDDS requirements. - Same applies for quarterly data on government debt statistics. - Consistency: - GFS consistent within the dataset and with other macroeconomic statistics. - Revision policy and practice: - Revisions follow a regular, well-publicized schedule; preliminary data clearly identified and replaced with final data when available. - CBS policy to always explain significant revisions/changes in publications. - Data and metadata accessibility: - GFS disseminated in several formats; CBS website provides hyperlink to Dutch GFS on the Eurostat website presented in the GFSM 2001 framework. - Statistics released simultaneously to all users following a preannounced schedule on the CBS website and the IMF’s DSBB. - Users aware that non-routinely disseminated GFS data can be made available upon request. - Adequate metadata published on the CBS website, including links to Eurostat; SDDS metadata updated quarterly. - Assistance to users: - Single contact point: Infoservice, well-publicized; all publications and services catalogued on the CBS website. ### Methodological soundness — Balance of Payments (BOP) Statistics - Concepts and definitions: - DNB compiles BOP statistics in conformity with BPM5 and follows legal requirements issued by the ECB and Eurostat. - Scope and classification: - In principle, all resident-nonresident transactions recorded, with some negligible deviations in practice. - Classification/sectorization broadly in line with BPM5. - Basis for recording: - Generally in line with BPM5. - Source data and assessment: - Source data from comprehensive collection programs based primarily on direct reporting of banks, nonbank enterprises, and government entities. - Stringent consistency checks undertaken using several statistical methods, including outlier analysis; verification reports provided monthly to managers. - Statistical techniques and validation: - Data compilation procedures sound and data adjustments robust. - Intermediate results and outputs routinely assessed and validated, leading to statistical improvements. - Revision studies: - Conducted regularly to identify problems with basic data sources and techniques. - Periodicity and timeliness: - BOP statistics meet or exceed SDDS periodicity and timeliness requirements. - Consistency and reconciliation: - Monthly data used to compile quarterly and annual data; errors and omissions item has occasionally been large but is actively monitored. - BOP data reconcilable with other statistical frameworks; reconciliation exercises conducted in ECB/Eurostat task forces and directly with the ECB. - Revision policy and practice: - DNB’s revision policy for BOP statistics not made public; no identification of preliminary or revised data in publications. - Ad hoc articles published for large revisions outside the regular cycle. - Data and metadata accessibility: - Data disseminated broadly following BPM5 standards, but information on services and reverse investment flows not presented with BPM5-recommended detail. - Data disseminated according to an advance release calendar publicized on the DNB website; data released simultaneously to all users. - Detailed metadata reviewed quarterly available at the DNB website and in the Statistical Bulletin; additional information on sources, methodologies, and techniques available on DNB website and in hard copy. - Assistance to users: - Provided through knowledgeable and responsive staff mainly by e-mail. - Q&A items added to the Statistics Department section of the DNB website. ### Accuracy and reliability; Serviceability; Accessibility — Cross-cutting observations - CBS maintains rigorous production routines for reviewing and confirming price data (PPI). - Results and intermediate data routinely assessed against related series (PPI vs export/import prices and CPI; GFS vs financial accounts; BOP intermediate outputs). - Revision studies are an ongoing practice across datasets to assess data reliability. - Dissemination: - PPI: web release with downloadable series; schedule through June 2008. - GFS: disseminated in several formats; hyperlink to Eurostat GFSM 2001 presentation; simultaneous release on CBS website and IMF’s DSBB. - BOP: advance release calendar on DNB website; simultaneous release to all users. - User assistance: - CBS and DNB provide centralized contact points and responsive staff; publications and services catalogued on respective websites. - Metadata: - CBS website contains detailed PPI and GFS metadata; SDDS metadata updated quarterly. - DNB provides detailed BOP metadata reviewed quarterly and additional documentation. ### Staff’s recommendations (selected, by domain) - Cross-cutting: - Ensure available resources remain commensurate with maintaining current practices in compilation and dissemination (e.g., PPI sample size) or taking on new projects (compiling GFS according to GFSM 2001, improving local government source data, improving data on services, enhancing CPI methods) in view of significant staff reductions and envisaged additional cuts. - National accounts: - Develop quarterly data sources to measure changes in inventories and capital formation of enterprises. - Calculate and publish more detailed seasonally adjusted series, and publish quarterly percentage change tables for seasonally adjusted aggregates rather than for original aggregates. - Consumer price index: - Review deviations from standard COICOP classification for the CPI, particularly inclusion in the index of taxes based on consumer asset holdings. - Producer price index: - After the January 2009 update, implement continuous sampling processes to ensure coverage of companies and products remains representative of the Dutch economy. - Government finance statistics: - Compile and disseminate annual and quarterly general government statistics in line with GFSM 2001. - Compile and disseminate a Statement of Sources and Uses of Cash (cash flow statement) and a complete balance sheet for general government and subsectors. - As an interim measure, include government’s liabilities for the unfunded nonautonomous employee pension scheme as a memorandum item in the balance sheet. - Compile and disseminate a detailed classification of tax revenue according to GFSM 2001. - Continue to explore ways to improve quality of local government source data and quarterly source data for accounts payable/receivable in the financial accounts of all general government subsectors. - Balance of payments statistics: - Include more detailed information on services in the standard presentation of the BOP. - Publicize information on regular revisions and clearly identify the status of data in publications. *Source: _cr0806 - 2. Methodological soundness* ### conclusions. ### conclusions. ### National accounts: seasonal adjustment, consumption breakdown, taxes, and quarterly data - Calculate and publish more detailed seasonally adjusted series, and publish quarterly percentage change tables for seasonally adjusted aggregates rather than for original aggregates. - Context: More than twenty years ago, when Statistics Netherlands started to publish the quarterly accounts, the Advisory Board for National Accounts advised to publish seasonally adjusted figures only for macro-economic aggregates and to publish more detailed original (unadjusted) figures so users could apply their own seasonal adjustment procedure. This policy is still considered relevant in the Dutch situation. - The Advisory Board for Macro-economic Statistics welcomed the IMF recommendation to publish more seasonally adjusted series as useful for international comparison, but argued there is no strong user demand for more detailed seasonally adjusted series in the Netherlands. The Board asked Statistics Netherlands to seriously take the recommendation into consideration. - As of December 2007, Statistics Netherlands is extending the seasonally adjusted series to meet new EU-regulations on the ESA delivery programme and will investigate the usefulness of a further extension of the seasonally adjusted series based on this programme. - When publishing household final consumption expenditure at the one digit COICOP level, allocate expenditure by residents in the rest of the world and expenditure by non-residents in the Netherlands across the COICOP categories, rather than having them only as bottom line adjustments. - Presently, only very rough estimates are available to break down expenditures by non-residents in the Netherlands by product group; for expenditures by residents in the rest of the world, even less source data are available. For that reason, Statistics Netherlands prefers to publish domestic consumption, instead of national consumption, by product group and advises continuing to do so unless the quality of the relevant source data improves significantly. - Develop a methodology to derive corporate income taxes on an accrual basis. - The Netherlands compiles and publishes corporate tax data in line with the relevant EU-rules (time adjusted cash). Publication of corporate tax figures on another registration base in the core system will not be considered. - Fiscal data are delayed; in the Dutch corporate income tax system enterprises can compensate losses in earlier years with profits in later years, meaning a registration on a pure accrual basis is only possible four or five years after the reporting year. - “Final” estimates for national accounts are compiled about 2.5 years after the end of the reporting year, so integration of accrual accounting of corporate income taxes in the core system is incompatible with the current release and revision policy. - Consideration: a separate table with relevant data could be provided (such a table appeared in the National Accounts publication until 1994). Statistics Netherlands will examine possibilities to reactivate this information depending on availability of source information from the Ministry of Finance and compilation resources. - Develop quarterly data collections from enterprises for gross fixed capital formation and profits. - Estimates for gross fixed capital formation (GFCF) in the quarterly national accounts are derived from the “supply side” using the commodity flow method and many ad hoc sources (e.g., a list of large investment projects). - Direct quarterly data sources for GFCF are possible but expensive and increase response burden for enterprises. - The Advisory Board for Macro-economic Statistics considers current GFCF quality satisfactory relative to other elements in the quarterly supply and use system; a direct measurement would improve quality but the Board expects costs in human resources and response burden are too high to justify it. - Make more use of the Denton method for aligning quarterly series to annual benchmarks for industry and expenditure aggregates derived from the supply and use tables. - This recommendation is in line with future plans and will be implemented in the current project for redesigning the Dutch system of national accounts. - Continue to work towards removing any remaining differences between balance of payments and national accounts statistics. - Statistics Netherlands and the Netherlands Bank fully support this recommendation and are working closely together to arrive at a more consistent set of data; this co-operation will be continued. - Include chain price indices for national accounts aggregates in the quarterly national accounts publication. - In the annual publication “National Accounts” tables contain chain price indices (2000 = 100). On a quarterly basis, there seems to be no user demand; the advice is to give this suggestion less priority. - Show the derivation of the current price income measure of GDP (including all of its major components) in the quarterly national accounts. - In the quarterly supply and use table, the breakdown of GDP in major components (wages and salaries and operating surplus/mixed income) is available, both in current and in constant prices. Statistics Netherlands will analyse whether the quality of this breakdown is appropriate for publication. - Put more emphasis on seasonally adjusted movements in the latest quarter, rather than the movements from the same quarter of the previous year in original terms. - The Advisory Board noted differences in user preferences for quarter-to-quarter changes; Statistics Netherlands publishes seasonally adjusted series for main aggregates but users have so far been satisfied with emphasis on year-to-year changes. Statistics Netherlands will monitor future trends. - Release the quarterly national accounts publication on the CBS website at the same time as the press release. - The present paper publication on quarterly national accounts will be stopped next year. Statistics Netherlands plans to publish a shorter and more dedicated analysis of the latest macro-economic developments on the website and aims to publish this together with or very soon after the press release. - List the quarterly national accounts publication on the English version of the CBS website. - Statistics Netherlands plans to have a website page on quarterly national accounts and will consider including references to other publications and relevant tables on StatLine. ### Recommendations for consumer price statistics (CPI) - Consider whether information technology resources can be made available to facilitate CPI quality improvement projects such as the expansion of scanner data use (0.2.1). - A Redesign CPI project is currently being carried out. IT-resources are necessary and Statistics Netherlands expects sufficient resources will become available in 2008. - Reconsider the deviations from standard COICOP classification for the CPI, particularly the inclusion in the index of taxes based on consumer asset holdings (2.3.1). - In addition to the Harmonised Index of Consumer Prices (HICP), Statistics Netherlands compiles the national CPI. The HICP is in line with standard COICOP; for the national CPI two additional divisions are added: COICOP division 13 includes consumption based taxes and government services and COICOP division 14 includes expenditure by Dutch residents abroad. Items in these two artificial COICOP divisions are not within the scope of the twelve standard divisions. - The assumption is that taxes in the extra divisions are consumption-related and not asset-based taxes. Statistics Netherlands will examine whether the taxes in the extra divisions are really consumption based and whether there are items classified in COICOP 13 which should be in one of the twelve standard divisions. - Affirm or reconsider the current treatment of insurance on a gross-gross basis (2.4.3). - Current treatment is based on the view that policy holders and insurance companies contract for an amount of risk coverage; the premium is the price paid for the protection (plus certain administrative activities). A change in risk cover leading to a change in premiums should be treated as a quality adjustment, not as a price adjustment. - Statistics Netherlands acknowledges that for practical reasons this is not done in the current CPI, which may bias the insurance price indices. Statistics Netherlands will re-examine the appropriateness of the basic assumptions of its current treatment of insurance and will take international best practices into account. - Undertake research into the development of a statistically-based outlet sample (3.1.1). - Within the redesign programme, in 2008 a project will be started to develop a statistically-based outlet sample based on the business register. - Examine whether and how information on CPI sampling errors could be developed for use in monitoring the accuracy of the index (3.2.1). - Both the outlet and item samples are not based on full probability sampling; overall sampling errors cannot be calculated. Statistics Netherlands has carried out studies to determine partial sampling errors and may repeat such studies depending on staff resources. - Analyze differences in the distribution of renters and owners by location, structure type, etc., and whether recognition of those differences could affect the measure of housing inflation (3.3.2). - Inclusion of owner occupied housing in the HICP is a major improvement; Statistics Netherlands participates in the pilot on Owner Occupied Housing (OOH) and is a member of its steering group. Statistics Netherlands supports adoption of OOH in the HICP and awaits results of the European discussion before changing recording of rents in the CPI. In the meantime, the recommended differences will be analysed. - Measure the size of consumer discounts on new automobile purchases over a period of time to determine whether ignoring those discounts is acceptable practice (3.3.2). - Theoretically supported, but collection would seriously increase response burden for companies; not planned at this moment to start price observations of discounts. - Reconsider the decision to present only short-term time series for CPI indices (5.1.1). - Statistics Netherlands recognises the importance of long-term time series and has decided to construct longer time series for CPI indices. These time series (from 1995 until present) will be published in the first half of 2008. ### Recommendations for producer price statistics (PPI) - Ensure that resources for the PPI programs for goods and services are kept at a level sufficient to maintain index quality and to implement needed enhancements (0.2.1). - Statistics Netherlands recognises the importance of sufficient staff. Due to an overall tendency in the Netherlands to reduce the number of government employees, additional cuts will be necessary. - To ensure index quality, Statistics Netherlands started a research project in 2005 aiming to improve the quality of the PPI with less price quotations. Three of the main findings of this project will be implemented in 2008: 1. The sample design will change from a cut-off sample to a PPS sample which has proven to be more efficient. 2. The elementary index calculation will be on a higher level. *Conclusions section of _cr0806 - conclusions.* ### 3. A more statistical approach will be used for data quality checks ### _cr0806 - 3. A more statistical approach will be used for data quality checks ### Producer Price Index (PPI): statistical approach and sampling - Objective: maintain the PPI on at least the same quality level as it is now. - Implement continuous sampling processes after the January 2009 update to ensure coverage of companies and products remains representative of the Dutch economy (3.1.1). - Statistics Netherlands actions and timeline: - Decision: sample on a continuous basis from January 2009 onwards. - Preparations carried out in 2007 and 2008. - A completely new sample will be drawn prior to continuous sampling. - From 2009 onwards, objective to renew 20% of the sample annually. - For specific PRODCOM groups, draw a new sample if deemed necessary. - Sampling errors and design: - Current situation: calculation of sampling errors is theoretically impossible because Statistics Netherlands uses a cut-off design. - Planned change: switch to a PPS design in 2009 will allow calculation of sampling errors (3.2.1). - Mathematical formulas for sampling error calculation are already available for implementation. - Implementation scheduled for the end of 2009 or the beginning of 2010. - Use of sampling error information: assess the quality of the indices and optimize sample allocation. - Product category weights: - After the January 2009 update, proceed with continuous updating of product category weights (3.3.2). - Statistics Netherlands recognizes the importance of up-to-date weights and will start, in the end of 2007, discussions on the (dis)advantages of more frequent updating of PPI product weights, including theoretical and practical implications. ### Government Finance Statistics (GFS): compilation, presentation, and specific recommendations - General approach: - Compile and disseminate annual and quarterly general government statistics in line with the fiscal analytical framework set out in the GFSM 2001. - Statistics Netherlands aims to establish a more integrated presentation of GFS on its website aligned to Eurostat’s program based on ESA95 definitions. - ESA95 is the predominant statistical framework in Europe; Statistics Netherlands has no plans to compile data according to GFSM 2001 but considers showing a link to IMF GFS on the website. - Statistics Netherlands will continue to provide IMF data according to GFSM 2001 as participant in the Eurostat GFS convergence project with the IMF and will strive for further improvements in data deliveries to IMF. - Cash flow statements and balance sheet: - Recommendation: compile and disseminate a Statement of Sources and Uses of Cash (cash flow statement) and a complete balance sheet for general government and subsectors; as an interim measure, include government’s liabilities for the unfunded non-autonomous employee pension scheme as a memorandum item. - Current position: - Cash flow statements are seen as useful (aligned with IPSAS) but ESA95 does not impose cash flow statements. - Source data, current accounting rules for local government authorities, and financial resources at Statistics Netherlands hamper compilation. - Inclusion of unfunded non-autonomous employee pension liabilities as a memorandum item will be considered if an integrated fiscal framework is published. - Tax revenue classification: - Recommendation: compile and disseminate a detailed classification of tax revenue according to GFSM 2001. - Current position: tax revenue according to GFSM 2001 is compiled and provided to IMF but not yet published by Statistics Netherlands; a very detailed list of taxes is published according to national nomenclature. - Presentation of taxes according to an international fiscal framework (ESA95 and/or IMF GFSM 2001) will be aimed for as part of the integrated GFS presentation project. - Local government source data and quarterly financial accounts: - Continue to explore ways to improve quality of source data for local governments and quality of quarterly source data for accounts payable/receivable in financial accounts of all subsectors of general government. - Measures taken as part of new legislation: new accounting rules for local governments; continued efforts in cooperation with the Ministry of the Interior. - Further analysis of accounts payable/receivable will be undertaken, including work in European forums (e.g., Task Force on Quarterly Financial Accounts for General Government (QFAGG)). - Valuation of local government unquoted equity holdings: - Continue exploring ways to value stocks of local government unquoted equity holdings at current market values. - Major problem: local government authorities report assets at acquisition price per accounting rules. - Adjustment from acquisition price to market value is complicated due to various corporations in which local governments hold equity; more advanced methodology required. - First estimates for undervaluation have been made; publication as part of regular statistical program not possible until the next benchmark revision to align with release and revision policy for national accounts. - Accrued interest classification: - Recommendation: explore classifying accrued interest with the underlying instrument rather than in other accounts receivable/payable in the general government’s financial balance sheet. - Current practice: lack of information means accrued interest can only be estimated separately for some government entities; registration under instruments is difficult. - Dutch national accounts record accrued interest as part of other accounts receivable/payable. - Research ongoing; any results will not be implemented before the next benchmark revision. - Release calendar: - Recommendation: include the advance release calendar for central government operations and central government debt on the MOF and CBS websites (currently only on the DNB website). - Both Statistics Netherlands and the Ministry of Finance will publish this release calendar on their websites soon. ### Balance of Payments Statistics: classification, services, valuation, revisions, and dissemination - Free trade zones: - Recommendation: classify free trade zones as part of goods, as recommended in BPM5. - Position: The Netherlands Bank will consider this recommendation. - Issue: BPM5 prescribes treating free trade zones as part of the economic territory (general trade concept), but EU member states compile trade statistics under the special trade concept per European legislation. - Any decision to collect additional enterprise information to apply the general trade concept must be weighed against limiting enterprise response burden; Netherlands Bank will consider the issue with Statistics Netherlands. - Services data: - Recommendation: disseminate data on services with the recommended breakdown in BPM5. - Position: The Netherlands Bank intends to resume publication in its Statistical Bulletin (and website) of services transactions data in full conformity with the List of Standard Components in BPM5. - Current availability: quarterly and annual data in a limited breakdown are on StatLine (Statistics Netherlands’ website). - Plan: gradually increase statistical information on the services account; annual data will be included shortly; explore compiling complete quarterly data in close cooperation with Statistics Netherlands, weighing data needs against response burden. - Loan repayments recording: - Recommendation: consider recording loan repayments when due to improve vulnerability analysis and align with BPM5. - Position: Netherlands Bank agrees the present lack of recording loan repayments when due deviates from BPM5. - Constraint: no source data available; decision not to collect was based on low importance for policy analysis and desire to limit response burden. - Netherlands Bank will reconsider recording loan repayments when due with implementation of BPM6 guidelines and review report forms at that time. - Valuation of gold positions: - Recommendation: avoid market valuation of gold positions on a quarterly basis and follow BPM5 guidelines for application of market prices at end of reporting period. - Position: Netherlands Bank intends to adhere fully to statistical guidelines for valuation of gold positions. - Action: data on gold in the Data Template on International Reserves and Foreign Currency Liquidity (table 5.12 in the Statistical Bulletin) will be adjusted shortly. - Revisions policy and data status: - Recommendation: provide public information on regular revisions and identify status of data in publications. - Position: Netherlands Bank will implement this recommendation at the first opportunity (publication of its Statistical Bulletin in December 2007). - Action: tables on balance of payments statistics and the International Investment Position will include a footnote explaining the revision policy. - Note: revision rules harmonized between EU member states to provide consistent building blocks to Eurostat and the ECB. - Reverse flows in direct investment: - Recommendation: provide information on reverse flows in direct investment with detail recommended in BPM5. - Position: Netherlands Bank will implement this recommendation at the first opportunity (Statistical Bulletin in December 2007). - Action: enlarge tables on direct investment transactions and positions with a breakdown reflecting the directional principle in full conformity with BPM5 as already applied in the Dutch balance of payments. - International Investment Position (IIP) quarterly data for SDDS: - Recommendation: provide data on the international investment position in a quarterly frequency on the national summary data page for SDDS subscribing countries. - Position: Netherlands Bank will implement this recommendation at the first opportunity (publication of 2007Q3 data). - Note: the data have been published in the Statistical Bulletin for some time. *Prepared by the Statistics Department. Approved December 21, 2007.* ### 0.1 Legal and institutional environment ### 0.1 Legal and institutional environment ### Responsibility and legal framework - Statistics Netherlands (CBS) and the Central Commission for Statistics (CCS) were established under the Statistics Act of 2003. - The responsibility for collecting, processing, and disseminating all macroeconomic statistics (excluding balance of payments and monetary statistics) rests with the CBS and is defined in the Statistics Act, sections 3 and 4: - The task of the CBS is to carry out statistical research for the government for practice, policy, and research purposes and to publish the statistics compiled on such research. - The CBS is the national authority for the production of (European) Community statistics for the Netherlands. - The Netherlands’ EU membership implies European law applies to a large portion of Dutch statistical programs; European Council Regulation 322/97 requires national authorities to produce Community statistics based on uniform or harmonized standards. - National accounts production is subject to verification by the European Commission and the CBS is part of the European Statistical System (ESS). ### Data sharing and confidentiality - CBS is the only official producer of all macroeconomic statistics except balance of payments and monetary statistics. - Well-established procedures exist for data sharing and coordination between CBS and De Nederlandsche Bank (DNB), and between CBS and other source-data providers. - To reduce reporter burden, the CBS uses administrative sources rather than questionnaires when possible. - Individual reporters’ data are kept confidential and used for statistical purposes only (Statistics Act, articles 37 through 42a). Controls include: - Access limited to CBS staff charged with relevant compilations. - All employees sign a confidentiality agreement on entry to service. - Encryption for electronic transmissions; password-protected computers; electronic pass card access to premises; visitors escorted by staff. - Staff who disclose personal information commit a crime and may be dismissed and/or taken to court at the discretion of the Director-General of Statistics. - Confidentiality limits the level at which industry data may be disseminated for national accounts. ### Reporting mandate and enforcement - Sections 33 through 36 of the Statistics Act authorize CBS to use data from government registers, legal persons, companies, independent professionals, and institutions for statistical purposes. - Sections 43 through 52 specify fines and penalties to encourage response; the Government Gazette of February 16, 2006 sets the maximum amount to forfeit at Euro 20,000, with an exceptional maximum of Euro 500,000. ### Resources and efficiency - CBS budgeting process: Director-General must develop a multi-year program at least once every five years and annual work programs; both are submitted to CCS for adoption and subsequently notified to the Minister of Economic Affairs and published in the Government Gazette (Statistics Act, sections 14 through 19). - Recent staff reductions and outlook: - Staff numbers at CBS were reduced by five percent in the period from 2000 to 2005. - Further cuts are envisaged in the future. - Despite cuts, staff, facilities, computing resources, and financing are described as commensurate with current statistical programs, except for staff resources dedicated to the Producer Price Index (PPI). - Project activities and funding: - National Accounts Department is engaged in Project to Redesign the System of Economic Statistics (HEcS) intended to yield efficiency gains. - Additional funds from the Ministry of Economic Affairs were made available to comply with new statistical requirements under the European Action Plan (example: development and regular production of quarterly sector accounts are financed with these funds). - Computing and physical infrastructure: - CBS staff have adequate computing resources; occasional software problems do not affect overall quality. - Emergency backup systems are in place. - Physical facilities are adequate; the Voorburg office will move into a new building in 2008. - Efficiency measures: - Efficiency is a strategic objective under government financial constraints. - Use of performance indicators and an extensive internal audit program. - IMPECT project (commenced in 1999) standardized production statistics collection and streamlined input to national accounts; results used in benchmark revision for reference year 2001. - Annual individual work programs and performance assessments; outstanding performance rewarded with extra remuneration (bonus). - Department and group managers evaluate internal “service level agreements” for internal data deliveries. ### Relevance and user engagement - CBS maintains regular contacts with main users via seven high-level advisory boards; each convenes at least twice a year. Advisory boards include: - Advisory Board for Society and Economics; Advisory Board for Economic Statistics; Advisory Board for Social Statistics; Advisory Board for Price Statistics; Advisory Board for Macroeconomic Statistics; Advisory Board for Methodology and Information Technology; Advisory Board of the Director-General. - An Advisory Board of the Director-General comprises chairs of the other six boards and directors of four planning agencies (Netherlands Institute for Spatial Research, Netherlands Environmental Assessment Agency, Social and Cultural Planning Office of the Netherlands, Netherlands Bureau for Economic Policy Analysis). - CBS assigns “account managers” to strategic users (e.g., ministries, DNB, Netherlands Bureau for Economic Policy Analysis). - Performance indicators for monitoring relevance include use of the online database Statline, coverage of CBS press releases, and references to CBS data in parliamentary documents. - National accounts relevance is largely influenced by EUROSTAT Transmission Program and EU regulations; monitored at high level via the Advisory Board for Macroeconomic Statistics whose members include DNB, MOF, Ministry of Economic Affairs, Rabobank, Netherlands Bureau for Economic Policy Analysis, Netherlands Institute for Spatial Research, and two universities. - National accounts data feed into Netherlands Bureau for Economic Policy Analysis forecasts in the Central Economic Plan (Centraal Economisch Plan (April forecast)) and the Macroeconomic Forecast (Macro-Economische Verkenning) (September forecast). Historical time series in both reports are provided by CBS; adjustments are infrequent and explained in footnotes. ### Quality assurance and monitoring - Quality focus and organizational arrangements: - A separate unit for quality verification was established in 2000. - A project to establish standards for quality of outputs was initiated; all statistical outputs and processes will have to comply with these standards. - In 2006, CBS began conducting risk analysis for statistics most important to corporate image, assessing risks to accessibility, accuracy, timeliness, coherence, relevance, and reproducibility. - A new method assessing both output quality and process quality, including production-chain consistency, produced very favorable results in a quality assessment study of economic statistics. - Processes to monitor program quality include: - Statistical auditing against EUROSTAT quality benchmarks. - Respondent and user surveys to assess providers’ and users’ views. - Verification by the European Commission under EU regulation 1287/2003 requiring a GNI Inventory for major national accounts revisions; the Gross National Income Inventory 2001 for the Netherlands will be assessed for compliance by a mission from EUROSTAT early in 2008. - The Methodology and Quality Division (DMK) responsibilities: - Expansion of knowledge, development of general frameworks, coherence and standardization of statistical processes, and implementation of frameworks for general statistical methods, quality assurance and process development. - DMK provides methodological support to new projects, maintains CBS business and information architecture, and conducts business analyses. - The Macroeconomic Statistics and Publications Division includes a research and development department (MOO); R&D capacity is available without compromising regular output (example: development of quarterly sector accounts in cooperation with Financial Institutions and Government departments and National Accounts). ### Assurances of integrity and professionalism - CBS autonomy and governance: - CBS established as an autonomous agency under the Ministry of Economic Affairs on January 3, 2004 (Statistics Act). - Two management bodies: Director-General of Statistics (DGS) and Central Commission for Statistics (CCS). By law the DGS cannot be a civil servant subordinated to the Minister and shall not hold secondary appointments that interfere with independence or trust. - Code of Practice and impartiality: - CBS adopted a Code of Practice based on the European Statistics Code of Practice emphasizing trust and confidence in CBS independence. - Code states CBS outputs are accessible to all at the same moment in time, CBS remains impartial, results of work requested and paid for by third parties are not made available exclusively to those third parties, and release dates are published well in advance. - Professional standards and staffing: - Recruitment and promotion are based on relevant aptitude and/or expertise. - CBS staff participate in regional and international seminars, courses, and workshops. - A culture of professionalism is evidenced by recognition of authors, organization of conferences and lectures, peer review, international visits, and active participation in international working groups; some CBS staff hold key positions in international forums. - Statistical methods and dissemination decisions: - Choices of sources, statistical techniques, and dissemination are informed solely by statistical considerations; Section 18 of the Statistics Act vests method determination with the Director-General of Statistics. - Decisions on dissemination are guided by international guidelines such as the IMF’s SDDS and EU regulations. - Misinterpretation and misuse: - CBS has internal guidelines and communication processes for addressing erroneous interpretation and misuse of statistics; media coverage is monitored daily and communications policy is handled by the Communication Division. *Source: _cr0806 - 0.1 Legal and institutional environment* ### 1.2 Transparency ### 1.2 Transparency ### Availability of terms and conditions - The terms and conditions under which statistics are collected, processed, and disseminated are available to the public. - All information on the legislation and regulations governing the CBS are available on its website (www.cbs.nl), under “About Us,” and in its library. - The Statistics Act is easily accessible on the CBS site. - The IMF’s Dissemination Standards Bulletin Board (DSBB) includes, under the heading “Integrity,” the terms and conditions under which the CBS’s statistics are produced, including those relating to confidentiality and individually identifiable information. - All CBS publications identify where more information about the CBS and its products can be found (for example, by referring to the CBS website (www.cbs.nl)). ### Internal governmental access prior to release - With one exception, there is no internal government access to statistics prior to their release. - The Dutch version of the CBS’s website includes the policy concerning the publication of statistics and makes public the cases in which prior access to the statistics is given to the government. - As stated in the Statistics Act, some strategic relations of the CBS (e.g., ministries and the Netherlands Bureau for Economic Policy Analysis) are able to access (under embargo) relevant statistics prior to the public release. - Conditions to be granted prior access: - The strategic relationship must have a formal involvement with the subject matter; - Pre-access is of crucial importance to the relationship, for example to prepare answers to possible questions about statistical results; and - The interests of other parties are not harmed. - The website shows a list of eight categories of statistics where prior access (under embargo) is granted. - Information on the organizations that have prior access to the data and the time of access is disseminated to the public. - No one outside the CBS is given access to the national accounts prior to their general release. ### Identification of statistical products - All CBS press releases and other publications are clearly recognized as products of the CBS by using the CBS logo, and referring to the CBS in the first section and/or in the introduction. - Data from Statistics Netherlands in ministerial reports and in the Budget Memorandum are identified as such in footnotes. - The CBS publications website (under “copyright”) notes that information may be quoted provided that the source is stated accurately and clearly, and that reproduction of materials for own/internal use is permitted. ### Advance notice of major changes - The CBS publishes information on changes in statistical procedures on its website and in relevant publications (e.g., De Nederlandsche Conjunctuur and De Nederlandse Economie). - Methodological changes and their consequences are communicated in press releases. - Every February, advance notice of changes in policy that may affect the national accounts is given to the Ministry of Finance and the Netherlands Bureau for Economic Policy Analysis. - In cases of significant changes (example: the introduction of a new Health care system in the Netherlands in 2006), an elaborate paper on how it is recorded in the national accounts is distributed to the main users. - When a benchmark revision is done, the CBS invites main users to the CBS to explain the reasons for the benchmark revision as well as the major changes in methodology and sources, and issues a separate publication on the magnitude of the revisions and methodology. ### Ethical standards (staff behavior) - Chapter 4 of the Code of Practice of the CBS describes staff behavior relating to impartiality, reliability, relevance, cost effectiveness, statistical confidentiality, and transparency. - The Integrity Policy of the Statistics Netherlands is available for all employees on the CBS’s internal website; the handbook contains provisions on integrity and applicability within the CBS. - New staff procedures: - New staff should sign a declaration to observe secrecy when entering duty at the CBS. - All new staff should submit a “certificate of incorporation” from the local police vowing never to be involved in criminal activity. - A few months after commencement of employment, all staff should take an oath (for example, to be loyal to the Constitution, etc.) before the Director-General of Statistics. ### 2. Methodological soundness ### Concepts and definitions - The national accounts are compiled in accordance with the methodology set out in the 1995 ESA, which is consistent with the concepts and definitions outlined in the System of National Accounts, 1993 (1993 SNA). ### Scope and accounts produced - National accounts statistics cover all tables and accounts that the Inter-Secretariat Working Group on National Accounts has defined as a minimum requirement for implementation of the 1993 SNA, and those whose compilation the Working Group has recommended. - The minimum set includes: - Annual value added and GDP at current and constant (or previous year) prices by activity. - Annual expenditures of gross domestic product (GDP) at current and constant (or previous year) prices. - Annual value-added components at current prices by activity. - Sequence of accounts for the total economy (up to financial accounts) with an annual frequency. - Annual rest-of-world accounts (until net lending). - The recommended set includes: - Quarterly value added and GDP at current and constant (or previous year) prices by activity. - Quarterly expenditures of GDP at current and constant (or previous year) prices. - The full sequence of annual accounts including financial accounts and financial balance sheets are compiled and disseminated for the five main institutional sectors of the economy, with the accounts for the financial corporations and general government sectors also published for several subsectors. - Since the first quarter of 2005, quarterly institutional sector accounts have been compiled at the same level of detail as for the annual sector accounts; however, the quarterly institutional sector accounts have not been officially published as yet. - Additional produced items: - Quarterly supply and use tables. - Annual input output tables. - Annual social accounting matrices. - Annual environmental accounts. - Annual labor accounts. - Annual regional accounts. - Tourism satellite accounts. - Multifactor productivity estimates are being developed along with a knowledge module encompassing research and development, information technology and innovation. ### Production and asset boundaries - The production boundary is in accordance with the 1993 SNA and includes: - Research and development on own-account. - Output of goods for own-account fixed capital formation. - Mineral exploration. - Production of entertainment, literary or artistic originals. - Production of computer software, including when produced on own account. - The Dutch national accounts follow 1995 ESA paragraph 3.08 b convention limiting own-account production of households to production, storage, and processing of agricultural products and to the construction of dwellings. - Estimates of illegal output sold to willing buyers are not included. - Estimates of hidden activities such as tips and concealed activities that involve either “turnover fraud” or “cost fraud” are included in GDP. - Estimates are included for agricultural production occurring in allotment gardens. - Details of adjustments to achieve “exhaustive” estimates of GDP are provided in the Gross National Income Inventory 2001 for the Netherlands in respect of the reference year 2001. - Delimitation of Netherlands economic territory and resident designation conform to 1995 ESA paragraphs 2.01 to 2.10 inclusive; included are: - Territorial enclaves, such as Dutch embassies, in the rest of the world. - Bonded warehouses. - Workers who work only part of the year in another country. - The Dutch economic territory consists only of the Netherlands (the Kingdom in Europe). - The Kingdom of the Netherlands consists of: - The Netherlands (the Kingdom in Europe) - The Netherlands Antilles - Aruba - Only the Kingdom in Europe is included within the domestic territory of the Netherlands for national accounts purposes. - Asset boundary items in scope (among tangible assets): - Defense-related assets that could be used for civilian purposes. - Valuables and historical monuments. - Asset boundary items in scope (among intangible assets): - Mineral exploration (whether successful or not). - Systems and standard applications computer software and data bases (purchased or built in-house). - Entertainment, literary or artistic originals. - Patented entities. - Leases and other transferable contracts. - Minor departure from 1993 SNA: work-in-progress on growing crops is not included in changes in inventories. ### Classification and sectorization - 1993 SNA definitions for institutional sectors are followed. - Institutional sector accounts are compiled for all 1993 SNA institutional sectors: nonfinancial corporations, financial corporations, general government, households, and nonprofit institutions serving households. - The CBS classifies economic activity according to the (national) Standard Industry Classification 1993 (SBI 1993 = SIC), which aligns with NACE Rev.1 at the four-digit level. - The ESA Classification of Products by Activity (CPA) is used to classify products. - Imports and exports are classified using the more detailed Harmonized Code. - Household final consumption expenditure is classified according to three classifications—by product from the supply and use tables, by durability and by Classification of Individual Consumption by Purpose (COICOP). - Adjustments to household final consumption to add expenditure by residents in the rest of the world and to deduct expenditure by nonresidents in the Netherlands are shown explicitly and are not allocated across the COICOP categories. - Estimates of government final consumption expenditure are published at the first level of COFOG on an annual basis. - Gross fixed capital formation is classified by asset type, by institutional sector and by industry. ### Basis for recording - Valuation rules are in accordance with the 1993 SNA: - Market output is valued at both basic and producer prices and output for own-use at equivalent market prices. - Valuation of intermediate consumption is at purchasers’ values, including sales, excise taxes, and nondeductible value added taxes. - The deductible part of the value added taxes is excluded from the valuation of final uses. - Transaction values are adjusted in cases where transfer pricing is detected. - Transactions in foreign currency are converted using the mid-point exchange rates prevailing in the market at the time that the transactions take place. - Estimates are available for total exports and imports of an f.o.b. basis. - In the use table values are recorded at purchaser's prices; in the supply table, domestic production is recorded at basic prices and imports at c.i.f. prices. Three additional columns in the supply table fill the valuation gap: trade margins, transport margins, and taxes and subsidies on products. - Taxes and subsidies on products are not fully allocated to individual industries or sectors; GDP at market prices via the income approach starts with total value added at basic prices on the industry/sector level, then adds separate estimates of taxes and deducts subsidies on products. - For imported goods, "purchaser's price" and "c.i.f. price" differ by taxes on products (including import duties), subsidies on products, transport margins on Dutch territory, trade margins and value added tax (VAT), if applicable. - Recording is on an accrual basis: - Transactions and flows are recorded on an accrual basis. - In some cases cash-based data are converted to an approximate accrual basis (example: figures for taxes on products (mainly VAT) are lagged by one month to approximate accrual). - General government transactions are recorded on an accrual basis for taxes and subsidies on products, expenditures and revenues except for corporate and personal income taxes. - Imports and exports of goods are recorded in accordance with the change of ownership principle. - Grossing/netting procedures were revised in the 2001 Revision of the national accounts to align, as far as necessary, with 1993 SNA and 1995 ESA guidelines. - Transactions between establishments within the same enterprise are recorded on a gross basis. *Source: _cr0806 - 1.2 Transparency* ### 3.1 Source data ### 3.1 Source data ### 3.1.1 Source data are obtained from comprehensive data collection programs that take into account country-specific conditions - The General Business Register (GBR) covers all business units in the Netherlands that are relevant for national accounts purposes and provides the population frame for various statistical collections. - Production Statistics (PS) collected by Statistics Netherlands (SN) are the most important source for the annual supply and use tables; data from an improved system (IMPECT) were first used for the reference year 2001. - PS collection design: - Businesses with more than 100 employees are fully enumerated. - Businesses with 1-100 employees are sampled. - Firms with no employees are not surveyed; they are included using VAT declarations and imputations based on ratios from firms with one employee. - Response rates average about 80 percent for large firms and about 60 percent overall. - Detailed data on intermediate inputs by product are collected each year for manufacturing. - Manufacturing output by product is obtained from PRODCOM statistics (classified by CPA). - For industries lacking suitable PS data, GBR plus employee and compensation data are used to estimate output and intermediate consumption based on related industries or earlier SUTs. - Health services: Health Cost and Financing Statistics survey provides PS-like data for nonmanufacturing industries. - Social Statistical Database (SSB) was used in the 2005 revision for reporting year 2001 to estimate number of employed persons, number of jobs, compensation of employees, and labor input; the SSB combines many registers to achieve micro-level consistency. - Household final consumption expenditure: estimated primarily from the annual Household Budget Survey (HBS) and retail output data from PS, adjusted and reconciled in supply and use tables. - Gross fixed capital formation (tangible assets): annual survey of investment and leasing using the GBR as population frame; intangible fixed assets estimated separately (e.g., Ministry of Economic Affairs for mineral exploration; estimates for computer software supply). - Main data sources are assessed for coverage of the three approaches to measuring GDP (production, expenditure, income) with industry- and category-level assessments recorded (e.g., “Good”, “Satisfactory”, “Poor”). ### Main component assessments (selected highlights from source tables) - Production approach: many industries assessed as "Good" coverage (A. Agriculture; C. Mining and quarrying; D. Manufacturing; E. Electricity, gas and water supply; F. Construction; G. Wholesale and retail; I. Transport, storage and communication; J. Financial intermediation; L. Public administration). Some categories noted as "relatively Poor" (H. hotels and restaurants — category “other accommodation”; K. real estate — renting of buildings (not dwellings)). - Expenditure approach: - Household final consumption expenditure — Good; Satisfactory for the consumption of services. - Gross Fixed Capital Formation — Good. - Changes in inventories — Poor. - Acquisitions less disposals of valuables — Poor. - Income approach: - Compensation of employees — Good (main source: Labor Accounts). - Gross Operating Surplus — Good. - “Dual actoring” is used to convert establishment-basis SUT transactions into institutional sector estimates, applied to production, intermediate consumption, other taxes and subsidies, wages and salaries, employers’ social contributions, and operating surplus/mixed income. ### Quarterly data sources - CBS has good data for most industries for the production approach; independent expenditure-approach measurement is limited because changes in inventories are mainly a balancing item and GFCF is derived via commodity flow approach. - Regular (quarterly) source coverage assessments mirror the annual ones with many industries rated "Good" or "Satisfactory" and selected categories rated "Poor" (e.g., NACE O in production approach; NPISH final consumption in expenditure approach). - Key quarterly source features: - Manufacturing: Monthly Production-index (PI) by SN. - Household final consumption (quarterly): monthly CI by SN based on monthly turnover retail trade, CPI, energy volumes, petrol station turnover, international trade in services, VAT data — assessed as Good. - Exports and imports of goods: foreign trade statistics of SN — Good. - Exports and imports of services: survey data from SN — Satisfactory. ### 3.1.2 Source data reasonably approximate the definitions, scope, classifications, valuation, and time of recording required - National Accounts Department influences the design of CBS source statistics to align with 1993 SNA and 1995 ESA requirements. - HEcS project: major redesign of the System of Economic Statistics; RNA (Redesign National Accounts) within NA includes rationalization of compilation, separation of error detection and balancing, and introduction of automatic balancing techniques where possible. - Close cooperation with the Netherlands Bank (DNB) supports alignment for balance of payments and financial sector data. - Despite overall consistency, numerous adjustments are routinely made to correct errors, misclassifications, and to apply special NA treatments such as Financial Intermediation Services Indirectly Measured (FISIM). - The data collection program provides a high level of coverage of economic activity (in terms of value added) at the ISIC one-digit level. ### 3.1.3 Source data are timely - Flash quarterly estimates: release date is 45 days after the end of the quarter; sometimes only two months of the quarter’s data are available for flash estimates. - Regular quarterly estimates: release date is 90 days after the end of the quarter. - Annual estimates timing: - First annual national accounts estimates are released about seven months after the end of the reference year. - Improved annual estimates are released one year later. - Definitive national accounts estimates are published the following year (i.e., about two years and seven months after the end of the reference year). ### 3.2 Assessment of source data - Source data (censuses, sample surveys, administrative records) are routinely assessed for coverage, sampling error, response error, and nonsampling error. - Survey areas provide reports to the National Accounts Department; regular meetings are held each cycle to discuss survey results. - Service Level Agreements specify minimum statistical requirements for survey data used in national accounts. - Source data are assessed within the SUT balancing process; results are fed back to source areas. - Quality Assurance Unit periodically audits source statistics as part of internal statistical audits. - CBS editing procedures identify outliers and confirm extreme values with respondents; input edits validate individual survey returns. - In national accounts compilation, source data are routinely analyzed and adjusted to correct for misreporting, misclassification, underreporting, and to check temporal consistency and consistency with related source data. - Effects of questionnaire changes on survey estimates are closely monitored by the National Accounts Department. *Source: 3.1 Source data, _cr0806 - 3.1 Source data* ### 3.3 Statistical techniques ### _cr0806 - 3.3 Statistical techniques ### 3.3.1 Data compilation employs sound statistical techniques to deal with data sources - Main macroeconomic totals in the system of the annual national accounts are derived from the supply and use tables (SUT), compiled in current prices and in constant prices (i.e., the prices of the previous year). - Three integration frameworks are compiled and directly connected: supply and use tables (SUT), sector accounts (SA), and labor accounts; these three frameworks are mutually consistent. - Level of detail: - Definitive annual SUT: about 800 categories of goods and services and about 250 industries. - Preliminary annual accounts and quarterly SUT: about 200 categories of goods and services and 120 industries. - Sector accounts (SA): 26 sectors or subsectors; 66 categories of nonfinancial transactions; 33 categories of financial transactions; balance sheets for financial assets and other assets are compiled (except for nonproduced capital goods). - Quarterly SA have been developed recently but full implementation in the national accounts has not yet been completed; quarterly SA are not yet officially published by the CBS. - Labor accounts: - Industry dissection matches SUT. - Variables: sex (male/female), work agreement (part time/full time), labor relationship (fixed/flexible). - Self-employed workers: less detailed (branch of industry and sex). - Source data from surveys (e.g., Labor Force Survey) and registers; registers are brought together in the Social Statistical Database (SSD) of Statistics Netherlands. - Quarterly compilation approach (outline): - Assume a production function with fixed coefficients to extrapolate structure to latest period. - Use volume change in gross production to calculate volume change in intermediate consumption by commodity for each industry. - Add household and government consumption, capital formation, exports and imports, and if available, estimates for change in stocks and work in progress to estimate total demand (= total use). - Confront total demand with estimation of gross production plus imports (= total supply). - Use output and expenditure indicators at current and constant prices to calculate a price index for intermediate use; result is a column of statistical discrepancies at current and constant prices. - Eliminate differences between supply and use by adjusting elements in either the use table or the supply table, depending on quality of basic data sources; process is iterative and adjustments in current prices require examination of consequences for previous year prices, volume index and price index; analogous procedure for adjustments in constant prices. - Preliminary data are subject to plausibility checks (e.g., compare quarter-on-quarter changes of total output with changes in labor input; verify output/input ratio using source data). ### 3.3.2 Other statistical procedures (data adjustments, transformations, analysis) - Adjustments to ensure GDP is comprehensive: - Allowances for tips in relevant industries. - Allowances for concealed activities reflected as “turnover fraud” or “cost fraud.” - An accrual estimate for VAT based on what should be collected rather than actual collections. - No adjustments are made for illegal activities (in line with treatment in most countries). - Production approach procedures: - Detailed compilation levels: - Preliminary annual and quarterly estimates: about 120 industries and 200 products. - Final annual estimates: 250 industries and 800 products. - Annual collections obtain detailed information on intermediate inputs by commodity according to the CPA classification for manufacturing. - Use of fixed ratios more than five years old applies to only a very small percentage of total value added. - Gross National Income Inventory 2001 includes “process tables” that analyze relationships between original source data and national accounts adjustments and contributions of source data types to value added. - Specific treatments: - Output of owner-occupied dwellings estimated using market based rents for dwellings of comparable quality. - Work in progress is recorded for: - Standing timber. - Stocks of fish. - Livestock reared for meat. - Large construction projects. - Output of large equipment such as ships and aircraft. - Work in progress is not recorded for growing crops. - No inventory valuation adjustment is made to manufacturing data. - Perpetual inventory method used to estimate consumption of fixed capital. - General government data for taxes, subsidies, revenue and expenditure generally on an accrual basis, except for corporate and personal income taxes. - Volume measures: - Double deflation method used at a very detailed level of economic activity. - Volume measures of taxes and subsidies estimated by applying base year tax rates to the volume of transactions subject to a specific tax or subsidy. - GDP volume change measured using annual chain volume indices. - Chain volume measures also expressed in terms of average prices of 2000. - CBS has an ongoing program to improve measurement of price and volume measures, particularly in construction and service industries. - Expenditure approach procedures: - Initial estimates of household final consumption expenditure, gross fixed capital formation, and changes in inventories compiled from various sources before balancing adjustments in annual SUT; in quarterly national accounts, changes in inventories derived largely as a balancing item. - Quarterly estimates of gross fixed capital formation compiled using the commodity flow method rather than direct enterprise surveys. - Household final consumption compiled at detailed commodity level; published dissections include the one digit COICOP level. - Government final consumption expenditure published at the one digit COFOG level on an annual basis. - Gross fixed capital formation and changes in inventories classified by industry and type. - GNI Inventory 2001 process tables indicate fixed ratios are used to a very limited extent to estimate main expenditure components. - Specific treatments: - Government final consumption calculated after deducting incidental sales of goods and services. - Expenses of residents abroad included in household final consumption expenditure and in imports; expenses of nonresidents in the economy excluded from household final consumption expenditure and included in exports. - Expenditure on items considered stores of wealth (gold, jewelry, works of art) included in estimates of valuables. - Volume measures compiled using annual chain indices and dedicated price indices at detailed level; implicit deflator for household final consumption expenditure consistent with the CPI. - Specific quarterly techniques: - Denton technique used to combine annual estimates with corresponding quarterly indicators for compilation of quarterly accounts; Denton not used to align quarterly SUT with annual benchmarks. - Quarterly national accounts compiled from seasonally unadjusted source data to generate unadjusted quarterly estimates. - REGARIMA X-12 of the United States Bureau of the Census used for seasonal adjustment. - Seasonal factors recalculated each quarter and seasonally adjusted series revised as far back as necessary. - Quarterly chain volume measures compiled using the “Annual Overlap” procedure and expressed in the average prices of 2000. ### 3.4 Assessment and validation of intermediate data and statistical outputs - 3.4.1 Intermediate results validated against other information: - Preliminary estimates of economic growth compared with forecasts by the Netherlands Bureau of Economic Policy Analysis, private banks and international organizations such as the OECD. - 3.4.2 Statistical discrepancies in intermediate data are assessed and investigated: - Intermediate results in SUT, sector accounts and labor accounts are constantly reviewed. - Special attention to coherence between price and volume changes, coherence with VAT estimates and other tax information, and plausibility in a time series sense. - Productivity estimates from labor accounts provide a check on industry output estimates. - 3.4.3 Statistical discrepancies and other indicators of problems are investigated: - SUT used to identify discrepancies which can then be investigated and resolved. - SUT balanced simultaneously at current prices and in prices of the previous year, ensuring equality of GDP estimates by production and expenditure approaches. ### 3.5 Revision studies - 3.5.1 Revisions analyses: - Since 2003 CBS established a database to record annual and quarterly series from each publication cycle to facilitate revisions analyses; database available on the CBS website for user analyses. - Revisions analyses conducted each year; results disseminated in the quarterly national accounts publication De Nederlandse Conjunctuur (The Netherlands’ Business Cycle) and on the CBS website. - Main objectives: identify biases in data sources or national accounts estimation techniques to improve future estimates, and inform users of likely extent of revisions. - The most recent publication at time of writing (September 2007) is edition three of volume 2007; article “Bijstellingen schattingen economische groei 2004” (Updates estimations on economic growth 2004) on pages 26–29 (Dutch only). ### 4. Serviceability — periodicity, timeliness, consistency, revision policy - 4.1 Periodicity and timeliness: - Periodicity (quarterly) meets the SDDS requirements. - Timeliness of quarterly national accounts: 45 days after end of reference quarter for flash estimates and 90 days after end of quarter for regular estimates; meets SDDS requirements. - 4.2 Consistency: - Internal consistency: quarterly estimates always add to previously published annual estimates; SUT ensure production, expenditure and income measures of GDP are identical; current price estimates consistent with previous year prices and deflators. - Time consistency: - Consistent annual GDP estimates normally maintained from 1969. - Official quarterly data prepared from first quarter of 1977 onwards. - Quarterly series adjusted to revised annual accounts and disseminated to the IMF from beginning of 1987 onwards. - Annual series will be revised back to 1969 and quarterly series revised back to first quarter of 1977 by end of 2007. - Consistency with other statistical frameworks: - National accounts rely on three integrated frameworks (SUT, sector accounts, labor accounts) designed to be mutually consistent. - Generally consistent with balance of payments; recent cooperation between DNB and CBS harmonized concepts, but practical differences remain (minor for goods, larger for services) due to publication cycle and revision strategy differences; resolution at European level via CMFB. - 4.3 Revision policy and practice: - 4.3.1 Revisions follow a regular and transparent schedule: - Revisions cycle for annual and quarterly national accounts indicated in CBS publications and follows a regular pattern each year. - Two national accounts releases each quarter: - Flash estimate released 45 days after end of quarter. - Regular estimate released 90 days after end of quarter. - Quarterly data provisional when first released; data become final when adjusted to final annual accounts: - Finalization varies from 32 months after first release for a fourth quarter to 41 months after first release for a first quarter. - Final quarterly data published in De Nederlandse Conjunctuur. - Revision policy explained in annual national accounts publication and briefly in each press release. - Three versions of annual national accounts published for each reference year: - Provisional Annual estimates: published about seven months after end of year (mainly based on quarterly estimates plus some annual data). - Revised Provisional Annual Accounts: produced about 12 months after first annual estimates. - Definitive Annual Accounts: released about two years and seven months after the reference year. - 4.3.2 Preliminary and/or revised data clearly identified: - Provisional status indicated in press releases and annual and quarterly publications. - Different symbols used to identify preliminary quarterly estimates, quarterly estimates reconciled to provisional annual estimate, and quarterly estimates reconciled to revised provisional annual estimate. - Absence of any symbol indicates estimates are final (still subject to future historical revision). - 4.3.3 Studies and analyses of revisions made public: - Annual articles published in the quarterly national accounts publication provide latest analysis of revisions. - Special publications released after each major revision (e.g., National Accounts of the Netherlands, Revision 2001). - For each major revision a new GNI inventory is written and made available on the CBS website. *Source: _cr0806 - 3.3 Statistical techniques* ### 5. Accessibility ### 5. Accessibility ### 5.1 Data accessibility - Publications and timing - The annual national accounts publication is usually released in August and contains limited commentary because De Nederlandse Economie (The Dutch Economy) is released in September with detailed economic analysis based on the annual national accounts. - De Nederlandse Conjunctuur (Quarterly National Accounts) includes detailed analytical commentary on the quarterly national accounts estimates. - Some users commented on the delay between the annual estimates released in a press release around 20 July each year and the annual publication becoming available on the website around mid August; there is a further delay until the hard copy publication is released in early September. - Quarterly national accounts press releases and data are released simultaneously by way of a press release at 9:30 a.m. CET; at the same time the data are also sent to subscribers by e-mail and the press release is posted on the CBS website. - Seasonal adjustment and detail - Quarterly national accounts are disseminated in both unadjusted and seasonally adjusted formats, but seasonally adjusted data are only available at a very highly aggregated level. - For the expenditure measure of GDP the following aggregates are adjusted: household final consumption expenditure, government final consumption expenditure, gross fixed capital formation (separately for enterprises and general government), changes in inventories, and exports and imports of goods and services. - For the production approach, ten industry groups are adjusted. - For the income approach only six industry groups for compensation of employees are adjusted. - Recommendation: seasonally adjusted series should be compiled for the main dissections of each of the expenditure aggregates and for more detailed industries. - Recommendation: percentage change tables in the quarterly national accounts should be published using seasonally adjusted data at this more detailed level, rather than using original data. - Recommendation: put more emphasis on seasonally adjusted movements in the latest quarter, rather than the movements from the same quarter of the previous year in original terms. - Recommendation: include chain price indices for national accounts aggregates in the quarterly national accounts publication. - Recommendation: show the derivation of the current price income measure of GDP (including all of its major components) in the quarterly national accounts. - Dissemination media and format - National accounts are available as hard copy publications or as PDF files on the CBS website. - Users may receive e-mail copies of the quarterly national accounts press releases on request. - Release schedule and access - A release calendar is published annually. In addition, a weekly calendar is available on the CBS website. - Unpublished nonconfidential data generated in the process of compiling the national accounts are made available on request; unpublished data are provided free of charge or for a small fee, depending on the amount of work involved in extracting and organizing the data. A list of available unpublished data is included as an appendix in the annual national accounts publication. - User interface and accessibility issues identified - The English version of the CBS website does not list the quarterly national accounts De Nederlandse Conjunctuur among the available publications. - For the Dutch version the latest available issue of De Nederlandse Conjunctuur shown appears to be for National Accounts March quarter 2007, rather than for June quarter 2007. - Statline could be made more user friendly. - Recommendation: release the quarterly national accounts publication on the CBS website at the same time as the press release. - Recommendation: list the quarterly national accounts publication on the English version of the CBS website. ### 5.2 Metadata accessibility - Documentation availability - Information on concepts, sources and methods are available in printed publications that may also be downloaded from the CBS website free of charge. - Two major publications produced following the comprehensive revision of the national accounts for reference year 2001: - National Accounts of the Netherlands, Revision 2001 (detailed account of improvements introduced in the revision and effects on national accounts estimates for 2001). - Gross National Income Inventory, 2001, The Netherlands (details of the sources and methods used to compile the national accounts estimates). - A similar inventory of sources and methods for the quarterly national accounts is due to be published in 2008. - The hard copy publication National Accounts of the Netherlands contains summary metadata on concepts, scope, classifications, and basis of recording in English and in Dutch. - Occasional papers on various national accounting issues prepared by staff of the National Accounts Department are available on the CBS website; a list of these papers is also shown in the annual national accounts publication. - Adaptation of detail to audience - CBS adapts the level of detail in publications to suit intended audiences: regular annual and quarterly publications include summary information about concepts and definitions, detailed information is available in separate publications, and summary information aimed at general readers is included in the Netherlands Statistical Year Book. - About ten years ago a special video and booklet concerning basic national accounting concepts were produced by the National Accounts Department for use as an educational tool in schools. ### 5.3 Assistance to users - Contact points and responsiveness - The CBS has a central contact point for all inquiries called “Infoservice,” publicized in hard copy and electronic publications and on the website, providing physical address, telephone and facsimile numbers, and an email address. - General inquiries are handled by Infoservice; technical inquiries are directed by Infoservice to CBS specialists in each area. - CBS policy, as stated on the website, is that inquiries are answered within two working days. - CBS has a spokesperson for macroeconomic statistics who deals with the press. - Statistics Netherlands has “account managers” (contact persons) for all strategic users to ensure regular contact with respect to their needs. - Catalogs and charges - The Department for Dissemination of Statistics (MPC) is responsible for catalogs, leaflets and so on about statistical products and for setting prices for hard copy publications. - Nearly all information on the products of the CBS, as well as the publications themselves in PDF-format, is available at the CBS website www.cbs.nl, free of charge. ### Key findings and specific notes from the data quality assessment frame (summary entries) - No quarterly data for changes in inventories (noted under 3.1 Source data). - Accessibility summary: More seasonally adjusted estimates should be disseminated to facilitate more detailed analyses and percentage change tables published in seasonally adjusted terms. ### Recommendations (compiled) - Develop quarterly data sources for changes in inventories. - Calculate and publish more detailed seasonally adjusted series, and publish quarterly percentage change tables for seasonally adjusted aggregates rather than for original aggregates. - When publishing household final consumption expenditure at the one digit COICOP level, allocate expenditure by residents in the rest of the world and expenditure by nonresidents in the Netherlands across the COICOP categories, rather than having them only as bottom line adjustments. - Develop a methodology to derive corporate income taxes on an accrual basis. - Develop quarterly data collections from enterprises for gross fixed capital formation and profits. - Make more use of the Denton method for aligning quarterly series to annual benchmarks for industry and expenditure aggregates derived from the supply and use tables. - Continue to work towards removing any remaining differences between balance of payments and national accounts statistics. - Include chain price indices for national accounts aggregates in the quarterly national accounts publication. - Show the derivation of the current price income measure of GDP (including all of its major components) in the quarterly national accounts. - Put more emphasis on seasonally adjusted movements in the latest quarter, rather than the movements from the same quarter of the previous year in original terms. - Release the quarterly national accounts publication on the CBS website at the same time as the press release. - List the quarterly national accounts publication on the English version of the CBS website. *Source: 5. Accessibility, _cr0806 - 5. Accessibility_* ### 0.2 Resources ### 0.2 Resources ### 0.2.1 Staff, facilities, computing resources, and financing - Legal and planning framework: - Budgeting process described in sections 14 through 19 of the Statistics Act. - Director-General of Statistics must develop a multi-year program at least once every five years and an annual work program each year; both submitted to the CCS for adoption. The multi-year program is sent to the Minister of Economic Affairs and the Minister notifies the Director-General, the CCS, and the House of Representatives of the States General of the financial and organizational conditions; this notification is published in the Government Gazette. - Staffing and recent trends: - Staff numbers reduced by five percent in the period from 2000 to 2005. - In recent years, staff resources at the CBS have been reduced and further cuts are envisaged in the future. - Current number of staff is described as broadly adequate to perform existing tasks, with the exception of staff dedicated to the compilation of the PPI. - Staff are highly qualified and salary levels are competitive with other civil service salaries in the Netherlands. - IT and facilities: - CBS staff have adequate computing (IT) resources; occasional software problems do not affect overall quality or effectiveness. - Computer resources are adequately protected; CBS has emergency backup systems in place for data retrieval in disasters or unusual events. - Physical facilities are adequate; the Voorburg office of the CBS will move into a new building in 2008. - Financing: - In light of the multi-year program and transparent planning and budgeting process, funding of the CBS is adequate to perform tasks stated in approved programs. - Note: To comply with new statistical requirements under the European Action Plan, additional funds from the Ministry of Economic Affairs were made available (e.g., development and regular production of quarterly sector accounts are financed with these funds). - Consumer Prices (CPI) resourcing specifics: - Within CBS, Consumer Prices task group of the Index Numbers, Prices, and Business Cycle Department (MIC) organizes and oversees monthly CPI production. - Field collection staff managed through the CBS unit in Heerlen. - Aggregate CPI staffing comprises approximately 40 full-time equivalent (FTE) staff. - Price review and analysis responsibilities assigned to the Price Analysis and Process Support task group within MIC; resources are shared with other programs. - Development and Support Department (MOO) currently provides approximately five FTE in long-term research support to the CPI program. - Infoservice task group in the Publications and Communications Department (MPC) is primary public contact for CPI information requests. - These resources are viewed as sufficient to maintain CPI production, but concern exists about capacity to carry out enhancement projects (e.g., expanding retail scanner data use, modifying field data collection to incorporate new goods/services more rapidly). - A recent risk analysis of CPI IT support indicated: current resource levels sufficient to guarantee reliability of regular production, but insufficient to make software modifications associated with methodological changes. - Without reversing scheduled IT staff reductions or redirecting existing IT resources to CPI projects, there is a strong likelihood that planned index quality enhancements cannot take place. ### 0.2.2 Measures to ensure efficient use of resources - Efficiency and accountability: - Efficient use of existing resources is one of CBS’s strategic objectives under current government financial constraints. - CBS policy intentions stated in general terms in the budget of the Ministry of Economic Affairs; CBS is accountable through specific performance indicators. - CBS management and CCS have focused on efficiency of statistical processes and meeting users’ needs. - Examples of efficiency measures: - Use of supermarket scanner data in CPI to provide large sample sizes and substitute for monthly field price recording. - Annual work programs agreed between managers and staff; staff performance assessed annually against objectives and outstanding performance rewarded with extra remuneration (bonus). ### 0.3 Relevance ### 0.3.1 Monitoring relevance and practical utility - User engagement and advisory structure: - CBS maintains regular contacts with main users through seven high-level advisory boards. - Advisory Board of the Director-General comprises chairs of the other six advisory boards and directors of four planning agencies: the Netherlands Institute for Spatial Research, the Netherlands Environmental Assessment Agency, the Social and Cultural Planning Office of the Netherlands, and the Netherlands Bureau for Economic Policy Analysis. - Other advisory board members include university scientists, representatives from enterprises, firms, banks, unions, consumer associations, research institutes, and government ministries. - Advisory Board for Price Statistics convenes twice a year: one meeting for user comments/advice on the multi-year and annual CPI work programs; the other for special topics. - Bilateral meetings held with “strategic users” (e.g., ministries and the Netherlands Bureau for Economic Policy Analysis); CBS assigns “account managers” to strategic users. - Performance indicators for relevance: - Use of Statline (online database), coverage of CBS press releases, and references to CBS data in parliamentary documents are used to monitor relevance. ### 0.4 Other quality management ### 0.4.1 Processes to focus on quality - Quality infrastructure and initiatives: - In 2000, CBS established a separate unit dedicated to quality verification. - A project to establish standards for quality of statistical outputs was initiated; all statistical outputs and processes will have to comply with these standards. - In 2006, CBS started conducting risk analysis for statistics most important to corporate image; analyses cover accessibility, accuracy, timeliness, coherence, relevance, and reproducibility. - New quality assessment method applied to economic statistics, taking into account output and process quality and consistency within production chain; results were very favorable. ### 0.4.2 Processes to monitor program quality - Three monitoring processes: - Statistical auditing to assess outputs against EUROSTAT quality benchmarks. - Respondent and user surveys to assess views of data providers and users. - Verification by the European Commission according to EU regulation 3605/93 (Article 8: bi-annual reports on government deficit and debt assessed by EUROSTAT before publication; member states submit “inventory of sources and methods” related to the Excessive Deficit Procedure; EUROSTAT conducts regular dialogue visits and may conduct visits on methodological issues). - Example audit: - In 2006, an audit evaluated a change in timing of CPI field data collection (spread throughout three collection weeks instead of one specific day) and how CPI work of associated units was coordinated. ### 0.4.3 Processes to incorporate quality in planning - DMK responsibilities: - DMK is responsible for expansion of knowledge, development of general framework, coherence and standardization of statistical processes, and implementation of frameworks for general statistical methods, quality assurance, and process development. - DMK ensures continuous renewal by: (1) providing methodological support to new projects; (2) maintaining business and information architecture of the CBS; and (3) conducting business analyses. - Research and development capacity: - Macroeconomic Statistics and Publications Division (includes CPI production) has its own department for research and development (MOO). - Capacity for research and development is available without compromising regular statistical output; some MOO resources are currently assigned to CPI research. ### 1. Assurances of integrity ### 1.1 Professionalism #### 1.1.1 Impartial production of statistics - Legal and organizational safeguards: - CBS established as an autonomous agency under the Ministry of Economic Affairs on January 3, 2004, by the Statistics Act. - The DGS cannot be a civil servant subordinated to the Minister of Economic Affairs and shall not hold secondary appointments that may interfere with independence. - Code of Practice: - CBS has adopted a Code of Practice based on the European Statistics Code of Practice; focus on promoting trust and confidence in CBS independence. - Code excerpt: “The statistical information Statistics Netherlands produces is intended to contribute to the effectiveness of public debate on a wide range of topics. Not only must this information be accessible and available to all parties in society, but everyone must have access to the same information at the same moment in time. Statistics Netherlands remains impartial with regard to the various interested parties in society. Statistics Netherlands also applies the principle of ‘impartiality’ to specially requested tasks: the results of work requested and paid for by third parties are not made available exclusively to these third parties. To guarantee its impartiality, Statistics Netherlands publishes release dates for information well in advance.” - Professional development and recognition: - Recruitment and promotion based exclusively on relevant aptitude/expertise. - Staff participate in seminars, courses, workshops, international working groups; CBS staff recognized for research and methodological work and host visitors from other statistics offices. - DMK and MOO roles: - DMK responsible for research and analysis; supported by Development and Support Sector of the Macroeconomic Statistics and Publications Division. #### 1.1.2 Statistical decisions based on statistical considerations - Section 18 of the Statistics Act: Director-General determines methods for studies in work programs and how results are published. - Decisions on data dissemination are guided by international guidelines such as the IMF’s SDDS and EU regulations. #### 1.1.3 Right to comment on misuse or erroneous interpretation - CBS has internal guidelines for procedures to follow on erroneous interpretation and/or misuse of statistics. - CBS monitors media coverage daily; communications policy handled by Communication Division. - Example: a CBS paper addressed divergence between public perception of inflation and official price change estimates. ### 1.2 Transparency #### 1.2.1 Public availability of terms and conditions - Legislation and regulations governing CBS are available on its website and in its library; the Statistics Act is easily accessible. - IMF DSBB includes, under “Integrity,” terms and conditions for CBS statistics production, including confidentiality and individually identifiable information. - All CBS publications identify where more information can be found (e.g., CBS website). #### 1.2.2 Public identification of internal governmental pre-release access - With one exception, no internal government access prior to release. - Dutch website includes policy on publication and publicly lists cases where prior access is given to government. - Conditions for pre-access: (1) strategic relationship must have formal involvement with subject matter; (2) pre-access is of crucial importance (e.g., to prepare answers to possible questions); (3) interests of other parties are not harmed. - Website shows list of eight categories of statistics where prior access (under embargo) is granted; information on organizations with prior access and time of access is disseminated to the public. - No one outside CBS is given access to the CPI prior to general release. #### 1.2.3 Identification of statistical products - All CBS press releases and publications clearly recognized as CBS products by logo and explicit reference. - Data from Statistics Netherlands in ministerial reports and the Budget Memorandum identified in footnotes. - CBS publications and website note that information may be quoted provided the source is stated accurately and clearly. #### 1.2.4 Advance notice of major methodological changes - CBS publishes information on changes in statistical procedures on its website and in relevant publications (e.g., De Nederlandsche Conjunctuur; De Nederlandse Economie); methodological changes and consequences are communicated in press releases. - For CPI, methodological changes, reclassifications, and periodic weight updating are routinely announced in advance. *Source: _cr0806 - 0.2 Resources* ### 1.3 Ethical standards ### 1.3 Ethical standards ### Ethical framework and staff integrity - Guidelines for staff behavior are in place and are well known to the staff. - Chapter 4 of the Code of Practice of the CBS describes staff behavior relating to six principles: impartiality, reliability, relevance, cost effectiveness, statistical confidentiality, and transparency. - The Integrity Policy of the Statistics Netherlands is available for all employees on the CBS’s internal website; the handbook contains provisions on integrity and applicability within the CBS. - New staff procedures: - New staff should sign a declaration to observe secrecy when entering duty at the CBS. - All new staff should submit a “certificate of incorporation” from the local police vowing never to be involved in criminal activity. - A few months after commencement of employment, all staff should take an oath (for example, to be loyal to the Constitution, etc.) before the Director-General of Statistics. ### Key implications - Established written standards and multiple entry-stage integrity checks aim to reinforce impartiality and confidentiality of statistical production. --- ### 2. Methodological soundness ### Concepts and definitions - Overall structure follows internationally accepted standards, guidelines, or good practices. - The CPI generally follows internationally accepted concepts and definitions as specified in the international CPI Manual and for the 1993 SNA and HICP. - Noted exceptions to the 1993 SNA include: - exclusion of illegal goods and services, - treatment of expenditure weights for insurances, - exclusion of expenditure by institutional households, - exclusion of expenditure weights for gambling and prostitution. - CBS publishes the national CPI as the key measure of inflation and compiles the HICP following the HICP regulation; both indices derive from the same source data but differ in concept, scope, definition, and classification. - CPI uses imputed rental value for owner-occupant shelter (consumption CPI concept). Fixed capital formation of residential structures is not in scope. - As of January 2007, gross rather than net expenditures and prices for child care are used in the CPI. - CBS chooses to account for government and employers’ child care contribution in Netherlands income statistics and not in the CPI because they contain elements of income transfers. ### Classification and weighting - Expenditure weights broken down by COICOP levels: - Division (14), Group (42), Class (95), Sub-class (114). - Weights are also broken down by branch of trade: currently 68 different branches (outlet types). - Intersection of COICOP/outlet type classifications yields a weighting scheme of all relevant combinations. --- ### 2.2 Scope ### Coverage and exclusions - Scope broadly consistent with internationally accepted standards. - CPI does not cover: games of chance, life insurance, pension premiums, and Financial Intermediation Services Indirectly Measured. - CPI covers expenditures on the Dutch territory and abroad from the net disposable income of all Dutch resident, noninstitutional households. - HICP differences: HICP includes institutional households and nonresidents on Dutch territory; excludes expenditure of residents abroad. - CPI includes urban and rural households, farming/fishing households, households of all sizes and income levels, and unincorporated business households that can separate business and private consumption. - CPI transactions correspond to monetary final consumption of market goods by households; excludes sales of illegal market goods and services. - Own-account production of market goods for own final consumption is in scope, using national accounts estimates. - Savings and payments with a large savings component (e.g., premiums for life insurance and pension plans) are excluded. - Included: premiums for private health care insurance and direct health care payments not covered by insurance. - Health care under social insurance is excluded. - CPI includes a category for consumption-based taxes, some of which are not usually included in consumer price indices. --- ### 2.3 Classification/sectorization ### Deviations from COICOP and implications - Classification broadly on a COICOP basis but with notable deviations: - Two artificial divisions are added in CPI tables: - COICOP division 13 includes consumption based taxes and government services. - COICOP division 14 includes expenditure by Dutch residents abroad. - Using 2006 relative importance values, these two artificial divisions comprise about eight percent of the overall CPI. - Specific reassignments and deviations: - Some division 13 components are ordinarily located in other COICOP groups (example: sewerage charges). - Certain consumption-based taxes based on ownership (pollution taxes, motor vehicle taxes, dog taxes) are included in division 13. - Tuition fees: classified in division 10 for HICP but in division 13 for CPI because of a significant component of state payments. - Insurance treatment differs: in the CPI, gross premiums for private health care insurance and direct health care payments not covered by insurance are in COICOP division 12; in the HICP, net premiums are in Division 12 and health care spending financed by private insurance is allocated to Division 6. --- ### 2.4 Basis for recording ### Valuation and price concepts - Market prices used to value flows and stocks; consumption expenditure is valued at purchasers’ prices including trade and transportation margins and applicable taxes less subsidies. - List prices and scanner data represent transaction prices; discounted prices are recorded only when discounts are nondiscriminatory and easily obtainable. - CPI includes second-hand goods (used car prices are included). ### Timing and recording - CPI is a monthly index reflecting the month as a whole; most product collection is spread over the first three weeks of the month. - Exception: December collection limited to the first two weeks. - Petrol prices are registered every day of the month (obtained from a secondary source). - For supermarket scanner data, the first two complete weeks (beginning on Monday) of the month are used. - Rental data collected once a year (usually updated annually in July). - Prices correspond to time of purchase (example: airline fares may apply to current ticket price for travel two weeks later). ### Grossing/netting procedures - Insurance items defined on a gross-gross basis (weights based on gross premiums paid by consumers; priced by collecting information on gross premiums for specified contract terms). - Insurance weights are based on national accounts data corrected for benefit payments. - Under gross-gross approach, increases in claims (more accidents, higher disease incidence) can raise CPI via premium increases even absent price increases for covered services. - CBS notes quality adjustments for changes in risk would be appropriate but are difficult in practice. - Weight for used cars based on national accounts net acquisitions (acquisitions less disposals). --- ### 3. Accuracy and reliability ### Source data, expenditure weights and timeliness - CBS maintains a detailed program for collection of CPI expenditure and price data. - Principal source for CPI expenditure weights to the four-digit COICOP level: household consumption data from the national accounts produced by the CBS. - Important sources for national accounts household consumption: annual surveys of business statistics (retail trade) and foreign trade statistics. - Weights updating: - Prior to 2007, CPI weights updated every five years; now subject to annual updating. - CPI expenditure weights for year y-1 are based on NA household consumption data of year y-2 (y = year of publication). - Example: base and reference year now 2006. The 2006 weights were estimated using preliminary data for 2005 with no price updating. - Weights and index series are not revised when final data for year y-1 become available. - Expenditure data from year 2005 taken to represent structure of consumption expenditure without price-updating in 2006. - Household budget survey: - Compiled annually; survey data for 2004 used to allocate lowest-level CPI expenditure shares. - No budget survey in 2001-2002; process and methodology recently underwent major revisions. - From 2005 forward, the sample divided into two groups: - Group 1: keep a budget diary for expenses exceeding 20 Euro, plus holiday expenses and gas/electricity/water; realized sample size approximately 6,000 households per year in total. - Group 2: keep a budget diary for all expenses, including periodic payments; realized sample size approximately 1,500 households. - Sampling frame: register of postal addresses combined with municipalities register of all households and individual persons. - CBS notes appropriate coverage and design but small sample size leads to concern about future volatility; staff considering methods to address the problem. - Plausibility checks and targeted updates: - Expenditure weight results examined against external source data; targeted updates used when appropriate (example: new health care insurance system introduced in 2006 led to special treatment of medical health care national accounts figures for 2005). - Sampling and price collection: - Approximately 81 percent (scanner data excluded) of all prices are collected locally by interviewers visiting retail outlets. - Geographic sampling: - All cities with more than 100,000 inhabitants included with certainty. - Sample drawn from cities with between 10,000 and 100,000 inhabitants. - Municipalities with less than 10,000 inhabitants are excluded. - Total of 101 municipalities included in the sample. - About 9,000 outlets chosen for the survey; classified into 68 outlet types; clustered design determined centrally. - Product sample: - About 1,300 different products included in the CPI for pricing. - Around 2,000 product/outlet type combinations and price indices (used for computations, not published). - Price measurement of second-hand goods limited to used cars; net acquisitions of other second-hand goods included in weighting scheme but not price surveyed. - Average of about 63,000 prices collected monthly. - Scanner data: - Prices from one supermarket chain collected via scanner data including sales volumes and quantities per item (EAN), text field, and store-level aggregation code. - Scanner data represent about 30 percent of all supermarket purchases. - Plans under development to expand scanner data use, subject to resources. - Data collection process: - Approximately 81 percent (unweighted and not counting scanner data) of CPI prices collected locally on paper by CBS price collectors who transmit data via laptop to Heerlen office and then to central CPI office. - Central price collection via telephone, paper questionnaire, internet searches, or other means. - Housing services: - CPI tracks rents of approximately 12,000 dwellings each year. - Sampling frame covers all houses and apartment units with separate postal address; apartments with shared facilities excluded. - Selection randomized and distributed by stratum (house owner, period of construction, type of building, number of rooms, region). - New and replaced products: - Follows HICP procedure for newly significant goods: truly new products introduced when significant in market segment (often with base revision). - New product models (e.g., cars) introduced during the year if they replace outgoing models. - Genuinely new products have testing period; product index not included until price collection proven successful. - CBS considering process improvements to encourage more rapid incorporation of new products. - External contacts and harmonization: - CPI specialists frequently contact enterprises, trade organizations and user groups to monitor market changes and price changes. - CBS participates in HICP working group to harmonize price collection and calculation methods among EU countries. ### Source data adequacy and timing - Prices of most products collected monthly; collection within the publication month. - Exceptions with less frequent collection: quarterly pricing for magazines, motorcycles, some repairs; package tours measured twice a year (summer and winter seasons); housing rents collected in July. - CPI index for used cars derived from an index created and maintained using hedonic methods and provided by an outside company; data reported to that company by garages. - Timeliness: most CPI data collected over first three weeks of the reference month (notable exceptions for scanner and fuel data); follow-up procedures ensure timely receipt of source data; timeliness adequate for scheduled CPI dissemination. *Source: _cr0806 - 1.3 Ethical standards* ### 3.2 Assessment of source data ### 3.2 Assessment of source data ### Source-data assessment practices - Source data—including censuses, sample surveys, and administrative records—are routinely assessed for coverage, sample error, response error, and nonsampling error; results of the assessments are monitored and made available to guide statistical processes (3.2.1). - CPI price data are routinely assessed using clear rules: - Interviewers' price entries are checked for validity; large divergences from the previous price prompt interviewer confirmation. - After central office receipt prices are automatically checked: prices that increase by more than 850 percent or decrease by more than 85 percent are rejected automatically. - Every month approximately 200 prices are rejected. - Other exceptional price changes are verified against price collection sheets or by calling the price collector or the outlet. - Centrally collected prices are checked similarly. - Twice-yearly meetings are held with field staff managers to discuss data collection quality. - Periodic assessments of secondary price data sources (used cars, motor fuel) are performed. - National accounts data and the household budget survey are investigated and assessed before being used to compile CPI weights. - No information is available on sampling errors of component or aggregate CPI series; there are no recent CBS studies of this issue (explicit gap in 3.2.1). - No standard error estimates are associated with the CPI expenditure weights because these are taken from the national accounts. ### Statistical techniques (3.3) - General practice: - CBS employs appropriate statistical techniques in index calculation, imputation of missing values, and quality adjustments. - All price data entered into the CPI computer system are checked for extreme changes; large differences prompt interviewer confirmation. - Imputation and sample management: - If a price is rejected or not observed (nonresponse), a price is imputed using the average monthly change of prices for the same product collected in the same outlet type. - Imputations are adjusted only if reliable information indicates a directional move. - As soon as new price information is available the index computation assures long-run index change consistent with the new price level compared to the last collected price. - Sampled items are normally replaced if prices are missing for two or three in-season months. - A product-offer is missing if no observation meeting the specification is made in an outlet; missing prices are imputed and the outlet is replaced. - CBS staff monitor sample size for a sampled product; sufficiently declined sample sizes lead to replacement by equivalent products. - Seasonal treatment: - Seasonal products are given seasonal weights. Prices are carried forward but product weights are zero in out-of-season periods. - When a product comes into season again, new prices are compared to prices last observed for the previous season to compute the product index. - Aggregate weights are constant through the year for all 5-digit COICOP groups to avoid defects of seasonal carry-forward practice. - Quality adjustments: - Quality differences between new and replaced products are handled using direct comparison (no adjustment), proportional quantity adjustment for small package-size changes, option prices (frequently used for new cars and computers), and imputations using other observed price changes. - Matching and comparison of new and old items is resource-intensive due to large numbers of scanner data prices processed monthly. - No hedonic methods are used in the CPI; a pilot project examines possible hedonic model use for computers. ### Other statistical procedures (3.3.2) - Index formulas and aggregation: - Except for special cases (externally-supplied used car series), an unbiased formula—the Dutot ratio of average prices—is used at the elementary (product/outlet) level where the sample is acceptably homogeneous. - Aggregation from elementary indices to higher levels uses the internationally accepted Laspeyres formula. - Supermarket scanner data: - Elementary indices at the EAN-code level are based on unit values for outlets in the same chain. - EAN-code indices are weighted together according to the Laspeyres formula with weights from the previous year. - Expenditure shares are held constant from the weight reference period (yielding a Young-type index). - Weight and reference-year practice: - Aggregate indices are calculated using the Laspeyres formula with the previous year as index and weight reference year. - The weight reference period was updated in 2006 and henceforth will be updated yearly. - When new weights are introduced the new index is linked to the old index using an internationally accepted technique. - From January 2007 forward the index reference period for the long term time series will be set at 2006=100. - A new series was published starting in January 2006 with index reference period 2006=100; series for January 2000 to December 2006 (2000=100) and January 1996 to December 2002 (1995=100) are also published. - Owner-occupied housing and rents: - Consumption for owner-occupied housing is valued as estimated rentals tenants would pay for similar accommodation, obtained via a national stratified survey of rental companies. - CBS makes no effort to distinguish shelter inflation for renters and owner-occupants; the two CPI indices are identical. - The Dutch housing market is carefully regulated; rent changes are limited except on tenant change or quality change. This year, the maximum allowable increase was only 1.1 percent. - Recommendation that analysis of rent inflation variation by geographic location, housing unit type, or other factors could be potentially useful (see Recommendations). - New automobiles: - The CPI records the list (“sticker” or “catalog”) price with no recognition of discounts negotiated between customer and dealer. - CBS believes discounts are roughly stable over time and that CPI measures price change not level; examination of this assumption is suggested. ### Assessment and validation of intermediate data and outputs (3.4) - Validation practices: - Index results are reviewed and assessed by a separate analysis unit not involved in monthly production. - Month-to-month changes and product indices are compared to earlier years and checked; feedback given to production staff in case of doubt. - CPI movements can be compared to the HICP, PPI, and other CBS price series. - Investigation of discrepancies: - Unusual or unexpected movements from large sectoral movements or particular reporters are investigated thoroughly before publication. - Respondents may be asked to re-evaluate reported price data in case of unexpected prices; imputed prices are investigated when observations are lacking. - Assessment of inconsistently imputed prices is part of regular checking procedures; appropriate measures are taken to remove discrepancies when discovered. - CBS does not calculate indices for different geographical areas so inter-area differences cannot be assessed. ### Revision studies (3.5) - Revision practice: - The CPI is final after one month and seldom revised. - Past expenditure weight updates were analyzed for evidence of substitution bias; with annual updating in place no similar studies are planned, but COICOP weight changes will be thoroughly reviewed. - Results of revision studies are used internally to inform statistical processes. - Historical event: - In 2003 an error in processing scanner data required republishing more than a year of CPI data; the problem and associated revisions were announced to the public at the time of correction. ### 4 Serviceability ### Periodicity and timeliness (4.1) - The CPI is produced monthly, in accord with SDDS standards (4.1.1). - The CPI is released in a timely manner, usually on the first or second Thursday following the end of the reference month (4.1.2). ### Consistency (4.2) - Internal consistency: - Within any expenditure base period the CPI is fully consistent in aggregation: higher-level indices can be calculated from constituent series using the basic Laspeyres-type formula (4.2.1). - With annual updating of weights, longer-run consistency is necessarily lost. - Reconcilability over time: - CBS policy: when index changes are introduced (e.g., base period updated), no historical series are reconstructed; new series published (e.g., January 2006 with 2006=100). - Component changes and methodology changes can add/remove COICOP aggregates; with knowledge of component relative importance at a link month, it is feasible (though not trivial) to account for weight changes when constructing aggregates from components. - Past base period revisions have been documented and analyzed in articles. - Consistency with other frameworks: - Use of national accounts weights in the CPI, and of lower-level CPI series in national accounts, ensures reconcilability at higher levels with corresponding national accounts series and with the HICP. ### Revision policy and practice (4.3) - Revisions follow a regular and transparent schedule: - CPI series are preliminary for one month; this is clearly noted on the website and in press releases. - Weight updates will take place every year on a regular schedule; past updates have been explained via press releases and the CBS intends to continue internet publications. - Incident handling: - The 2003 scanner-data processing error and associated revisions were publicly announced. - Identification of preliminary/revised data: - Preliminary data for the first month of release are identified in CBS tables and publications. - Public studies of revisions: - Because CPI data are rarely revised after one month, no formal analyses of these revisions have been conducted (4.3.3). ### 5 Accessibility ### Data accessibility (5.1) - Presentation and formats: - CBS website provides detailed data with the CPI release; data series can be downloaded in a variety of formats. - Detailed CPI statistics accompanied by monthly press releases on the website in Dutch and in English; press releases contain short analysis and tables with time series, disaggregated outcomes, international HICP figures, and contributions of disaggregated levels to overall CPI. - Results also published in the statistical bulletin, a weekly CBS publication. - Publication database (StatLine) presents CPI figures at 5-digit level with metadata; extended time series for inflation figures (not index levels) are included; StatLine permits table and graph creation. - CPI figures are presented only in non seasonally adjusted form; the extent of seasonality has not been studied recently. - Time-series availability: - As noted in 4.2.2, CPI series ending in the current month are conveniently available from January 2006 forward. - Series below the total-CPI level going back more than two years must be linked using indices with earlier reference bases. - Historical index series extended prior to the mid-1990s are available by request only. - This approach may impose unnecessary burden on users wishing to make longer-than-annual price level comparisons. - Dissemination media and schedule: - CPI press releases are published on the CBS website and disseminated by e-mail without charge; a flash version with main figures is sent to press agencies. - Press release (seven or eight pages) aimed to explain figures and underlying developments; usually well covered in media. - CBS provides a schedule of CPI release dates well in advance (as of writing through June 2008); a weekly agenda is posted every Friday. - In August 2003 the scanner-data error led to an announced publication-date delay. - Simultaneous access and preannouncement: - Figures cannot be viewed before publication date; made available to all at the same preannounced time, 9:30 a.m. on Thursday, via press release and publication database. - Press, ministries and central bank are not briefed in advance. - Public questions are centrally answered by CBS Infoservice if possible. - Non-routine dissemination: - Unpublished CPI data are not made public except for some special-purpose aggregates for central banks, ministries, planning agencies; such series are in principle available to everyone upon request. ### Metadata accessibility (5.2) - Documentation: - Extensive CPI definitions and methods information is available on the CBS website, including analytical and background papers; many in Dutch, some in English. - Press releases and StatLine tables contain metadata on sources and definitions. - Levels of detail: - A brochure explains basic CPI concepts and construction for wide distribution. - An internal tool allows CPI staff to assess effects on CPI of excluding individual price series. - Technical and analytical articles concerning the CPI are on the website. ### Assistance to users (5.3) - Contact points and support: - First-line support for nontechnical CPI issues handled by CBS Infoservice; releases and website identify Infoservice contacts. - Second-line and technical questions handled by CPI specialists via email or phone; answers provided within one working day if possible. - Infoservice maintains a database of CPI user questions and answers; timeliness and quality of assistance are routinely monitored. - CBS has designated a spokesman with primary responsibility for CPI questions; web articles list authors and the spokesman answers or delegates questions. - Detailed CPI database access via StatLine; CBS is working on a new version of StatLine to improve user-friendliness. - Catalogs and charges: - All publications and press releases are catalogued on the website and are available without charge. ### Recommendations (as provided) - Consider whether information technology resources can be made available to facilitate CPI quality improvement projects such as the expansion of scanner data use (0.2.1). - Reconsider the deviations from standard COICOP classification for the CPI, particularly the inclusion in the index of taxes based on consumer asset holdings (2.3.1). - Affirm or reconsider the current treatment of insurance on a gross-gross basis (2.4.3). - Undertake research into the development of a statistically-based outlet sample (3.1.1). - Examine whether and how information on CPI sampling errors could be developed for use in monitoring the accuracy of the index (3.2.1). - Analyze differences in the distribution of renters and owners by location, structure type, etc. and whether recognition of those differences could affect the measure of housing inflation (3.3.2). - Measure the size of consumer discounts on new automobile purchases over a period of time to determine whether ignoring those discounts is acceptable practice (3.3.2). - Reconsider the decision to present only short-term time series for CPI indices (5.1.1). *Source: _cr0806 - 3.2 Assessment of source data* ### 0. Prerequisites of quality 0.1 Legal and institutional environment ### _cr0806 - 0. Prerequisites of quality 0.1 Legal and institutional environment ### 0.1 Legal and institutional environment - Responsibility for collecting, processing, and disseminating the statistics is clearly specified: Statistics Netherlands (CBS) and the Central Commission for Statistics (CCS) were established under the Statistics Act of 2003. - Main objectives of the CBS: promote official statistics that meet the demands of users for practice, policy, and science, and promote accuracy and completeness of all statistics published. - Responsibility for all macroeconomic statistics (excluding balance of payments and monetary statistics) rests with the CBS and is defined in the Statistics Act, sections 3 and 4: - The task of the CBS is to carry out statistical research for the government for practice, policy, and research purposes and to publish the statistics compiled on such research. - The CBS is the national authority for the production of (European) Community statistics for the Netherlands. - EU membership implications: - European Council Regulation 322/97 requires national authorities to produce Community statistics on the basis of uniform standards and, in duly justified cases, harmonized standards. - For the Producer Price Index (PPI), the CBS is subject to the EU regulation on Short-Term Statistics (STS). - Data sharing and coordination: - The CBS is the only official producer of all macroeconomic statistics, except balance of payments and monetary statistics. - Well-established procedures ensure adequate data sharing and coordination between CBS and the Netherlands Bank (DNB), and between CBS and other source data providers. - CBS prefers administrative sources over questionnaires to reduce reporting burden. - Confidentiality and data protection: - In line with the Statistics Act, articles 37 through 42a, individual reporters’ data are kept confidential and used for statistical purposes only. - Access limited to CBS staff charged with compilation; all employees sign a confidentiality agreement. - Encryption is used for electronic transmission; computers are password protected; premises access requires electronic pass card; visitors must be accompanied. - Staff disclosing personal information commit a crime and may be dismissed and/or taken to court at the discretion of the Director-General of Statistics. - PPI publication criteria to limit disclosure: general rule is to publish only if reports are received from at least three companies; publication may be suppressed if coverage is less than 50 percent of the total sample of reporters. - Statistical reporting mandate and enforcement: - Sections 33 through 36 of the Statistics Act authorize the CBS to use, for statistical purposes, data from government registers, legal persons, companies, independent professionals, and institutions. - For banking statistics, CBS acquires statistics after consultation with the DNB. - Sections 43 through 52 specify fines and penalties for nonresponse; maximum amount to forfeit is Euro 20,000, but can be raised in very exceptional cases to Euro 500,000 (Government Gazette of February 16, 2006). ### 0.2 Resources - Budgeting and planning: - CBS budgeting process described in sections 14 through 19 of the Statistics Act. - Director-General must develop a multi-year program at least once every five years and an annual work program; both submitted to CCS for adoption and the multi-year program forwarded to the Minister of Economic Affairs. - Recent staffing and resource trends: - Staff resources at CBS have been reduced in recent years and further cuts are envisaged. - Staff numbers reduced by five percent in the period from 2000 to 2005. - Current number of staff is broadly adequate to perform existing tasks; staff are highly qualified and salary levels are competitive within the civil service. - Computing and physical resources: - CBS staff have adequate computing resources; occasional software problems do not affect overall quality. - Computer resources are adequately protected with emergency backup systems. - Physical facilities are adequate; Voorburg office will move into a new building in 2008. - Funding of the CBS is adequate to perform required tasks stated in the approved programs. - PPI-specific staffing and organizational structure: - Approximately 12 full-time equivalent (FTE) staff in the Producer Prices task group of the Index Numbers, Prices, and Business Cycle Department (MIC) are responsible for organizing and overseeing the monthly PPI (including export and import price indexes) production for goods. - During the current index developmental period there are about 11 FTE in a Services Prices task group in MIC. - Field collection staff total about five FTE managed through the CBS unit in Heerlen. - Part of index review and analysis assigned to the Price Analysis and Process Support task group within MIC; resources shared with other programs. - General spokesman within MIC and the Infoservice task group in the Publications and Communications Department (MPC) are primary public contacts for PPI information requests. - Recent and planned reductions and impacts: - Aggregate PPI staff level has decreased by about 5 FTE in recent years. - Introduction of electronic data collection and a centralized call centre have offset part of staff decreases. - Staff reduction and administrative-burden reduction initiatives have led to cuts in publication detail and will lead to cuts in PPI sample size. - In 2006, the number of detailed PPI publication cells was cut by approximately 60 percent. - In January 2009, the aggregate PPI pricing sample (including export and import price index) will fall from about 25,000 to about 17,500, a decrease of 30 percent. - Concern noted due to international desire for expanded services industry coverage and enhancing index quality while resources are cut. - Efficiency measures: - CBS strategic objective to ensure efficient use of resources under government financial constraints. - Efficiency steps for PPI include scheduled changes in index calculation process and introduction of a probability proportional to size (PPS) based product sample. - Annual performance assessment with potential bonus remuneration for outstanding performance. - Additional funds from the Ministry of Economic Affairs provided to comply with new statistical requirements under the European Action Plan (example: development and regular production of quarterly sector accounts financed with these funds). ### 0.3 Relevance - User engagement and monitoring: - CBS maintains regular contacts with main users through seven high-level advisory boards; each convenes at least twice a year. - Advisory Board of the Director-General comprises chairs of the other six advisory boards and directors of four planning agencies: Netherlands Institute for Spatial Research; Netherlands Environmental Assessment Agency; Social and Cultural Planning Office of the Netherlands; Netherlands Bureau for Economic Policy Analysis. - Other advisory board members include scientists and representatives from enterprises, firms, banks, unions, consumer associations, research institutes, and government ministries. - Advisory Board for Price Statistics convenes twice a year: one meeting to comment on multi-year and annual work program for PPI and other price statistics; the other meeting devoted to special topics. - Bilateral meetings with “strategic users” (e.g., ministries and the Netherlands Bureau for Economic Policy Analysis) at managerial level. - CBS assigns “account managers” to all strategic users to ensure data needs are met. - Performance indicators for relevance: - Use of online database (Statline), coverage of CBS press releases, and references to CBS data in parliamentary documents are monitored as performance indicators. ### 0.4 Other quality management - Quality focus and units: - In 2000, CBS established a separate unit dedicated to quality verification. - A project to enhance quality and establish standards for statistical outputs and processes was initiated; all outputs and processes will have to comply with these standards. - In 2006, CBS started conducting risk analysis for statistics most important for corporate image, assessing risks related to accessibility, accuracy, timeliness, coherence, relevance, and reproducibility. - A new method assessing both quality of statistical output and processes (including production chain consistency) was applied in a quality assessment study of economic statistics; results were very favorable. - Ongoing quality monitoring processes: - Three processes monitor quality of the statistical program: - Statistical auditing against EUROSTAT quality benchmarks. - Respondent and user surveys to assess provider and user views. - Verification by the European Commission according to EU regulation 3605/93 (Article 8: bi-annual reports on government deficit and debt assessed by EUROSTAT; member states submit “inventory of sources and methods” relating to the Excessive Deficit Procedure; EUROSTAT conducts official, regular dialogue visits and may conduct methodological visits). - In 2005, a series of visits with PPI users was conducted to assess users’ ability and willingness to deal with reduction in PPI publication detail. - Quality in planning and method support: - The DMK is responsible for expansion of knowledge, development of general framework, coherence and standardization of statistical processes, and implementation of frameworks for general statistical methods, quality assurance, and process development. - DMK ensures continuous renewal by: (1) providing methodological support to new projects; (2) maintaining business and information architecture of CBS; (3) conducting business analyses. - The Macroeconomic Statistics and Publications Division, including PPI production, has its own department for research and development (MOO); capacity for research and development is available without compromising regular statistical output. *Source: Price Statistics (Producer Price Index) — 0. Prerequisites of quality (extracted from provided content).* ### 1. Assurances of integrity ### 1. Assurances of integrity ### Professionalism - The CBS was established as an autonomous agency under the aegis of the Ministry of Economic Affairs on January 3, 2004, by the Statistics Act. - Management structure: - Director-General of Statistics (DGS) and the Central Commission for Statistics (CCS). - By law, the DGS cannot be a civil servant subordinated to the Minister of Economic Affairs and shall not hold any secondary appointments which may interfere with independence. - Code of Practice: - The CBS has adopted a Code of Practice based on the European Statistics Code of Practice. - The code emphasizes access to the same information at the same moment in time and impartiality, including that results of work requested and paid for by third parties are not made available exclusively to those third parties and that release dates are published in advance. - Recruitment and staff development: - Recruitment and promotion are based exclusively on relevant aptitude and/or expertise. - CBS staff regularly participate in seminars, courses, and workshops organized by regional and international organizations. - Recognition of research authorship, conferences, lectures, and peer review evidence a long-standing culture of professionalism. - CBS staff participate in international working groups and hold key positions in international forums. - Research and support: - The DMK is responsible for research and analysis in the CBS. - Research and development support is provided by the Development and Support Sector of the Macroeconomic Statistics and Publications Division. ### Professional independence, sources, and dissemination - Decision authority and guidance: - Section 18 of the Statistics Act: the DGS determines methods for studies in the work program and multi-year program and how results will be published. - Decisions on dissemination are guided by international guidelines, such as the IMF’s SDDS and EU regulations. - Erroneous interpretation and misuse: - Internal guidelines are available to all staff for procedures on acting (or not acting) on erroneous interpretation and/or misuse of statistics. - The CBS monitors media coverage of its statistics, publications, and activities daily. - Communications policy is handled by the Communication Division of the CBS. ### Transparency - Public access to terms and conditions: - Legislation and regulations governing the CBS are available on its website (www.cbs.nl) under “About Us” and in its library; the Statistics Act is easily accessible. - The IMF’s DSBB includes, under “Integrity,” the terms and conditions under which CBS statistics are produced, including confidentiality and individually identifiable information. - All CBS publications identify where more information about the CBS and its products can be found (e.g., by referring to www.cbs.nl). - Internal governmental access prior to release: - With one exception, there is no internal government access to statistics prior to their release. - The Dutch version of the CBS website includes the policy and makes public the cases in which prior access is given. - Conditions to be granted prior access (under embargo): - The strategic relationship must have a formal involvement with the subject matter; - Pre-access is of crucial importance to the relationship, for example to prepare answers to possible questions about statistical results; - The interests of other parties are not harmed. - The website shows a list of eight categories of statistics where prior access (under embargo) is granted, including organizations with prior access and the time of access. - The PPI is not among this list of eight categories, so no one has prior access to the PPI results. - Product identification: - All CBS press releases and publications use the CBS logo and refer to the CBS in the first section and/or introduction. - Data from Statistics Netherlands in ministerial reports and in the Budget Memorandum are identified as such in footnotes. - CBS publications and website (under “copyright”) note that information may be quoted, provided the source is stated accurately and clearly. - Advance notice of methodology changes: - The CBS publishes information on changes in statistical procedures on its website and in relevant publications (e.g., De Nederlandsche Conjunctuur and De Nederlandse Economie). - Methodological changes and their consequences are communicated in press releases. - For the PPI, methodological changes, reclassifications, and periodic weight updating are routinely announced in advance. ### Ethical standards - Code of Practice and Integrity Policy: - Chapter 4 of the Code of Practice describes staff behavior relating to impartiality, reliability, relevance, cost effectiveness, statistical confidentiality, and transparency. - The Integrity Policy of Statistics Netherlands is available to all employees on the internal website and contains provisions on integrity and applicability within the CBS. - Staff declarations and checks: - New staff sign a declaration to observe secrecy when entering duty. - All new staff should submit a “certificate of incorporation” from the local police vowing never to be involved in criminal activity. - A few months after commencement, all staff should take an oath (for example, to be loyal to the Constitution, etc.) before the Director-General of Statistics. ### 2. Methodological soundness ### Concepts and definitions - Methodological frameworks and manuals: - The CBS assesses PPI methodology against: System of National Accounts 1993 (1993 SNA); the Producer Price Index Manual (PPI Manual); the draft Import/Export Prices Manual available on the IMF PPI Manual website; and the OECD/EUROSTAT Guide for Developing Producer Price Indices for Services. - 1993 SNA concepts and definitions guide coverage and valuation; PPI Manual methods and procedures guide PPI compilation. - PPI structure and coverage: - PPI series are divided into two major groups: goods and services (SPPI for services under development). - Within goods PPI, prices are collected for imports and domestic production, leading to three broad index aggregates: PPI for domestic sales (sometimes called the “regular” PPI), PPI for nondomestic sales (XPI), and import PPI (MPI). - Derivatives published include total use (weighted combination of PPI and MPI) and total sales (weighted combination of PPI and XPI). - The headline PPI in CBS releases and media reports is the total sales PPI; this report focuses on the total sales PPI. - Data collection and index calculation are focused on products and only indirectly on activities and industries; published activity-level indices are based on goods indices reweighed for each industry using input-output tables from national accounts. - Activity-level separate series: intermediate, capital and consumer goods; certain special aggregates per STS regulation. - Publication detail: - PPI publication by commodity: mostly 4-digit PRODCOM classes for a total of 902 publication cells (PPI: 286, XPI: 270 and MPI: 346). - Publication for industrial sectors: 2-digit NACE level consisting of 49 publication cells. Both commodity and industry series are published monthly. - SPPIs for services are published quarterly for commercial sectors with no uniform level of detail; no aggregate SPPI series are published at this time. - Noted departures from international guidelines: - The CBS identifies main PPI departures as: - The exclusion of small companies from the sample population for the PPIs for goods - The reweighing of product based indices to activity indices, instead of aggregating directly according to known activity of reporting companies - The inevitable inclusion of some mixed (i.e., average) and intercompany prices ### Scope - Goods coverage: - The goods PPI includes products from mining and quarrying, manufactured goods and electricity, gas and water (PRODCOM categories C,D and E). Activity-level indices cover NACE sectors C to E. - Some collection of prices from agriculture and fishing exists to allow calculation of activity-based indices; these indices are not published. - Exclusions per STS regulation: - Uranium mining (absent in the Netherlands), publishing, manufacturing and processing of nuclear material, manufacturing of arms and ammunition, ship building, and airplane and spacecraft construction are not included. - Maintenance and repair, illegal sales and sales of second hand products are excluded. - Sales from bonded warehouses to the export market and imports to bonded warehouses are out of scope. - SPPI development and coverage as of August 2007: - Indices compiled for 13 sectors, 11 published, within NACE divisions I and K: - Accountancy - Legal services - Car lease - Road transport - Engineers - Software consultancy - Postal services - Cleaning services - Telecommunication - Storage - Aviation - Couriers - Telecommunication (note: repetition as listed in source) - Planned expansion by December 2008 to 24 sectors with the following 11 sectors to be added: - Investigation and security services - Labor recruitment and provision of personnel - Remaining information services - Coastal and transoceanic water transport services - Cargo handling services - Architectural services - Market research and public opinion polling - Real estate agents and surveyors - Management-consultancy - Data processing - Advertising services - Publication of most of these series is required by STS regulation. - Population in scope: - All resident market enterprises can be considered in scope for the PPI, although sampling is confined to firms with 20 or more employees for goods PPI. - For the SPPI all companies are eligible for sampling. ### Classification/sectorization - Product and industry classification: - Goods classified using the 8-digit PRODCOM list. - PRODCOM level indices are re-weighted to the NACE-activity level using input-output tables from national accounts. - PRODCOM can be aggregated to the Classification of Products by Activity (CPA); PRODCOM differs from CPA only in going to a more detailed level. - STS regulation prescribes an aggregation structure to compile index figures for capital, intermediate and consumer goods. - SPPI service definitions are taken from the CPA. ### Basis for recording - Valuation and pricing: - PPI goods weighting data are based on annual company-level PRODCOM turnover and quantity statistics collected by the CBS unit in Heerlen. - Companies are asked to report market prices; prices are collected separately for domestic and nondomestic sales as well as for imports. - Export prices are measured ex-factory and import prices c.i.f., at the national border. - Foreign currency import and export prices are converted to euros at the average exchange rate of the foreign currency in the reference month. - Prices are asked without excises and excluding VAT. According to the STS regulation index numbers including excises have to be delivered; these are calculated by CBS using excise tariffs tables as published by the government. - Use of non-market prices: - If market prices are not available and cannot be estimated by the company, CBS will accept intercompany transfer prices (about ten percent of prices received). - Mixed prices (average prices for a range of qualities or averaged across customers) are accepted when necessary to achieve response. - PPI for services requests two types of prices depending on sector: average rates (comparable with mixed prices used in PPI for goods) and model prices (comparable to ordinary PPI market prices). - Recording basis and timing: - PPI weighting data are constructed according to standard PRODCOM procedures. - PPI prices are collected on a transaction basis, regardless of the date of production. - Prices are recorded at the time of order as required by the EU STS; prices refer to the average of the reference month; there is no reference date. - SPPI prices refer to the middle of the quarterly reference period (for example, for the 1st quarter of 2007 the price of February 15 is collected). - Grossing/netting procedures: - Transactions between companies within the same enterprise or sector are recorded on a gross basis. - Netting procedures are not part of the Dutch PPI methodology. - Weights used in building activity-level PPIs from PRODCOM indices are on a gross basis and may include some within-activity flows; they are not net output weights. *Source: _cr0806 - 1. Assurances of integrity* ### 3.1 Source data ### 3.1 Source data ### Overview - Source data are obtained from comprehensive data collection programs that take into account country-specific conditions. - PPI data collection follows systematic processes based on detailed information reflective of the Dutch economy; samples are currently based on data for the year 2000 and are only systematically updated at five-year intervals. - The PPI for goods (including imports and exports) is organized and constructed from the product level, with activity-level indices being re-weighted aggregates of the product indices. - The SPPI indices are constructed using data and procedures designed specifically for industry-level services price measurement. ### Sampling and weights - PRODCOM-based sampling: - The CBS uses the annual PRODCOM statistics for sampling of enterprises and products and for weighting in the lowest-level goods index calculations. - The PRODCOM data provide information on production by product group at the lowest (8-digit) level for both domestic or nondomestic destination. - Only companies with 20 or more employees are represented in the PRODCOM statistics. - A CBS study examined the relationship between price and company size within the PRODCOM file and found no basis to assume exclusion of the smallest companies would lead to structural bias in the PPI. - A cut-off sampling approach within each 8-digit PRODCOM group selects samples of the largest companies with a cumulative turnover of at least 80 per cent of the total. - The usual objective is to achieve a sample of three companies with at least two prices each within a PRODCOM group. - A new sample is drawn every five years; the most recent being based on 2000 PRODCOM data. - To compensate for attrition, more companies are selected than are initially used and replacements are drawn from over-sampled pools on a continuous basis. - The PPI will introduce a new PRODCOM-based sample in January 2009 using 2005 data; this sample will still have been drawn using weights that are three to four years old at the time the sample is introduced. - The PPI program will implement probability-based sampling with the 2009 update, replacing the cut-off approach. - The PPI has plans to move to a continuous process of sample selection and updating after 2009; the PPI should be encouraged to implement that plan. - SPPI sampling: - The SPPI sample is taken using a random stratified sample from the CBS general company register (classification derived from NACE). - Strata classification is based on the number of employees; usually the smallest firms are excluded. - Objective is to draw a sample of about 100 firms for each services index. - Weights: - Weights enter PPI goods calculation at two levels: - Company weights within a lowest-level PRODCOM group for averaging price changes in that group. - PRODCOM indices aggregated with national accounts weights reflecting importance relative to total national production. - National accounts weights have been adjusted for PRODCOM undercoverage of small firms. - Input-output tables provide weighting information to produce indices on the NACE activity classification. - PPI activity-level indices are aggregates of the goods indices and do not employ micro-level information on company distribution within PRODCOM groups. - Company weights for PPI services are taken from the CBS Structural Business Statistics (SBS) surveys or from SPPI survey results. ### Price collection - Initiation and specification: - A company reporting for the first time is visited by a CBS officer to introduce the price statistics and questionnaire, explain procedures, and agree a representative list of price quotations. - Collection is on an 8-digit PRODCOM level for PPIs for goods and at the lowest possible service level for SPPIs. - Companies have a legal obligation to report information for these surveys. - Frequency and definitions: - For PPIs for goods, prices are collected monthly, quarterly, biannually, or annually depending on company price policy and/or specific product. - Prices are defined by detailed description including, if relevant and/or possible, the involved customer and delivery conditions. For MPI and XPI the countries or region of origin/destination are added. - CBS policy is to collect a minimum of six prices for each product. - Firms may report products no longer available or changed descriptions; CBS will telephone to agree on new specifications and any associated quality adjustments. - Sample sizes for companies and prices (as reported): - PPI: No. companies 2750; No. prices 9550 - XPI: No. companies 1850; No. prices 6000 - MPI: No. companies 2400; No. prices 9500 - Total: No. companies 7000; No. prices 25050 - In the table, a company is separately counted for the PPI, XPI, and MPI; the total number of unique reporting companies is about 4,300. - Data collection modes: - Approximately half of the prices are collected electronically using a survey form distributed by e-mail. - Mail accounts for most of the remainder, with a small amount by telephone and from price lists and auction results published in newspapers or on the internet. - The PPI does not use data collected or provided by third parties, except for preliminary indices as mentioned. - For SPPI, all prices are collected quarterly; at present 790 companies report a total of 4,700 prices. Samples are regularly updated. ### Timeliness and response - Frequency distribution of price collection: - About 18 percent of prices are collected monthly; 59 percent quarterly; 18 percent biannually; and five percent annually. - Reporting windows and publication: - Price changes are sometimes reported in advance and sometimes subsequent; in index calculation, prices are carried forward between reporting months. - PPI publishes five preliminary months; data reported within six months can be taken into account for final results. Data received after publication is final are not used. - Data received before the 25th of the month can be processed before the first preliminary publication month. - Nonresponse management: - In case of nonresponse companies receive reminders by telephone, fax, conventional mail or e-mail; companies can be prompted several times. - Additional efforts are made to achieve timely response from the 500 largest companies and other crucial reporters. - In general more than 95 percent of all price quotations are collected before the publication obtains its final status. - Availability of weight data: - Company weights from PRODCOM are available after six months. - Product weights are available after about 2 ½ years; e.g., final national accounts data for 2005 will be available in mid-2008. - Data on submarket and submarket strata weights for PPI services are available after 1 ½ years. - Company weights are updated regularly using data from SBS surveys. ### Assessment of source data and quality control - Routine assessments: - The CBS maintains rigorous production routines for reviewing and confirming price data. - When prices collected for the PPI differ more than five percent from the previous period the company is contacted to provide an explanation; if the price change cannot be verified it is not used in the index. - All telephone contacts are recorded in a log in the production database. - The SPPI uses similar methods with different margins: for average rates the margin is 10 per cent and for model prices five percent. - Total number of PPI telephone contacts with respondents is approximately 1,500 per month. - Reporting companies are visited on average once every three years, about 1,500 company visits per year. - Daily reports on response and on the number of detected implausible prices are made available to all involved analysts. - Coverage (weighted response at publication level) is reported three times each month. - Error assessment: - Information on sampling errors for PPIs for goods is not available because of the cut-off design used in sampling from PRODCOM. - Planned implementation of PPS sampling for January 2009 will facilitate development of some standard-error information. - Information on non-sampling errors is partly available in the form of nonresponse and results of telephone interviews with companies. - Sampling and non-sampling errors for the SPPI are also not yet estimated; additional information should become available in the next few years. ### Statistical techniques and handling of missing data - Imputation rules for missing observations: - When an enterprise must report prices of more than one product for a PRODCOM group and one price is missing, the price change for the commodity group for that enterprise is determined on the basis of available prices; the missing price is imputed by multiplying the price relative for the enterprise/commodity group by the price of the previous month. - If an enterprise does not respond at all but other enterprises in that commodity group provide information, the price relative of the group is calculated on the basis of responding enterprises and used to impute all price items of the missing enterprise. - If all information is missing from a PRODCOM group the month-to-month price changes from a higher group are used for imputation: the weighted arithmetic mean price is determined for underlying known groups for months m and m-1 and the index change is calculated. - For seasonal products in clothing and agricultural groups a carry-forward price is used until new seasonal prices become available; experiments with other imputation methods indicated carry-forward produced better indices. - Use of external estimates for preliminary indices: - For some product groups, estimates from bulletins or world market price information are used to calculate preliminary indices (e.g., petrochemical products) and preferred to available imputation techniques to prevent or minimize future revisions. - Treatment of new and replaced items: - New items are introduced if a reporting company clearly indicates their importance. - Company weights are generally not adjusted except when the company indicates a considerable deviation from the weight used. - Methods to adjust for differences between new and replaced items include quantity adjustments, option prices, production cost adjustments, expert judgment, and linking. - The general approach is to ask the reporting firm what the replaced product would sell for in the current period, or what the new product would have sold for in the prior period. - No hedonic models are employed. ### Index calculation and aggregation - PPI goods index calculation (three steps): 1. Elementary indices: for a PRODCOM group within an enterprise, calculated as unweighted geometric averages of month-to-month price changes for individual items. 2. Lowest-level PRODCOM indexes: averages of the elementary enterprise-by-PRODCOM indexes using the standard Laspeyres formula rewritten as a monthly chained index. Enterprise weights for the previous month within the lowest PRODCOM level are calculated by price-updating the 2000 weights. 3. From the lowest PRODCOM level onwards: PPI is a standard fixed base Laspeyres index with 2000 as the current base year. Weights for PRODCOM groups are based on national accounts data. - Activity-level indices: - Constructed from PRODCOM indices with base-period weights developed using input-output tables of the national accounts. - Approach does not use the industry classifications of individual reporting PPI firms. - Planned methodological changes: - Beginning in 2009 the PPI plans to broaden the level at which the first-step geometric mean aggregation is employed to improve estimation efficiency. - In January 2009 the PPI will introduce updated 2005 base year weights along with new company samples. - Plans being developed to move to annual updating of weights for PRODCOM groups as well as companies, with the goal to resample 25 percent of PRODCOM groups annually and update PRODCOM weights from national accounts annually. - SPPI index calculation: - Generally equivalent to PPIs for goods. - CBS observes prices or turnover values and units corresponding to individual services. - Price relative for a respondent’s price development is based on quarterly price relatives of individual priced services using an unweighted geometric mean formula. - Respondents in a submarket stratified by number of employees; stratum, submarket, and industry price indices are based on weighted arithmetic averages of chained respondent price indices with turnover used as weights at each level. - Seasonal adjustment: - PPI and SPPI indices are published only on a not-seasonally-adjusted basis, with the one exception of Accountancy. ### Assessment, validation, and investigation of outputs - Validation procedures: - Index results are reviewed and assessed by a separate analysis unit not involved in monthly production. - Month-to-month changes and product index results are compared to earlier years and checked; feedback provided to production staff in case of doubt. - PPI, XPI and MPI series by product are compared to each other, to world market prices or price information published by other institutions, and to the CPI where applicable. - SPPI is compared to information from branch organizations and publications from other institutions. - Investigation of discrepancies: - Each analyst in the production unit writes a monthly report summarizing developments; reports are discussed with all involved statisticians and an independent statistical researcher not involved in PPI production. - Respondents may be called for further information on sources of price change. - Assessment of inconsistently imputed prices is part of regular checking procedures; if discrepancies are discovered appropriate measures are taken to remove them and reasons for unexpected outcomes are investigated. *Source: 3.1 Source data* ### 3.5 Revision studies ### 3.5 Revision studies ### Overview - Studies and analyses of revisions are carried out routinely and used internally to inform statistical processes (see also 4.3.3). - Studies on the difference between preliminary data and final index values are carried out periodically. - The PPI program is evaluating whether it would be appropriate to declare published indices final more quickly than after five months. - The effects of product weight updates every five years are analyzed thoroughly and the results are used to inform the statistical process. ### Revision practices and types - The PPI has four types of revisions: - Revisions of preliminary indices follow a regular five-month cycle. - Annual revisions of company weights are part of regular PPI methodology and are not announced each year. - Updating of product group weights follows a regular five-year cycle and is announced and explained. - Corrections in final data due to errors occur rarely and are clearly mentioned in the statistical database and on the website of the CBS. - Preliminary data are identified by annotations for all relevant data cells, and in many cases by the use of color on the website. ### Public analyses and transparency - With every rebase a detailed analysis is made for the overlap in years; explanations for observed differences are provided to the extent possible and published on the CBS website. - In 2007, a weighting error was discovered that necessitated publishing revised values for a number of PPI series for 2004-2006; this was announced on the website. - Studies on the effects of product weight updates (every five years) are analyzed and their results used to inform statistical processes. ### Related serviceability and dissemination context (relevant to revision timing and accessibility) - Monthly indices are disseminated on the last working day of the month following the reference month. - The SPPI is disseminated quarterly; the objective is to publish the SPPI indices within three months after the reference period. - The PPI figures are always published on the last working day of the month at 9:30 AM. - The CBS provides a schedule of PPI release dates well in advance, as of this writing through June 2008; SPPI releases are not yet announced in advance. - PPI data cannot be viewed before the publication date; data are made available to all at the same preannounced time by press release and publication database. - On request, CBS disseminates data not in the regular publication program, usually without charge; occasionally a fee is asked if extra dissemination is very time-consuming. ### Relevant historical and operational notes impacting revisions - For the last update to 2000=100, the new time series beginning in January 2000 were introduced in early 2004 and will be continued to December 2008 when a 2005 weighting and reference base period will be introduced. - SPPI statistics have been available for only one to five years depending on the sector, except road transport (available from 1993 forward). - PRODCOM data used for sampling and lower-level weighting are still for 2000; updating will take place in 2009 and PPI has plans for more frequent updating thereafter. - A general methodology document describing the PPI is being updated and none is on the CBS website at present; many specific analytical and background papers are available, many in Dutch and some in English. ### Recommendations and planned actions related to revisions and data quality - Ensure that resources for the PPI programs for goods and services are kept at a level sufficient to maintain index quality and to implement needed enhancements (0.2.1). - After the January 2009 update, implement continuous sampling processes to ensure that the coverage of companies and products remains representative of the Dutch economy (3.1.1). - Examine whether and how information on PPI sampling errors could be developed for use in monitoring the accuracy of the index (3.2.1). - After the January 2009 update, go forward with plans for continuous updating of product category weights (3.3.2). *Source: _cr0806 - 3.5 Revision studies* ### 0.1 Legal and institutional environment ### 0.1 Legal and institutional environment ### Legal responsibility and institutional roles - Statistics Netherlands (CBS) and the Central Commission for Statistics (CCS) were established under the Statistics Act of 2003. - Main objectives of the CBS: promote official statistics that meet the demands of users for practice, policy, and science, and promote accuracy and completeness of all statistics published. - The task of the CBS (Statistics Act, sections 3 and 4): - carry out statistical research for the government for practice, policy, and research purposes and publish the compiled statistics; and - act as the national authority for the production of (European) Community statistics for the Netherlands. - The CBS is the only official producer of all macroeconomic statistics, excluding balance of payments and monetary statistics. ### Frameworks, standards, and reporting obligations - The comprehensive statistical framework for Government Finance Statistics (GFS) in the Netherlands is the consolidated general government sector data compiled and disseminated by the CBS in the context of national accounts statistics. - These data are produced according to: - the European System of Accounts, 1995 (1995 ESA) under EU Council Regulation 2223/96; - the 1995 ESA Manual on Government Deficit and Debt under EU Council Regulation 3605/93 and later amendments (referring to the Protocol on the Excessive Deficit Procedure of the Maastricht Treaty or EDP Protocol). - GFS for the Netherlands are disseminated on the IMF’s Dissemination Standards Bulletin Board (DSBB) to meet IMF Special Data Dissemination Standard (SDDS) requirements and will be assessed in all dimensions of the data quality assessment. - To meet SDDS “tracking indicators” requirements, the Ministry of Finance compiles and disseminates monthly data on central government operations and debt; these monthly data are assessed in dimensions 2 through 5 in the GFS data quality assessment. - The Netherlands reports statistics to EUROSTAT in accordance with the 1995 ESA Transmission Program and the CBS compiles/disseminates a significant share of its data according to European Statistical System (ESS) legal requirements. - The Netherlands does not compile and disseminate domestically GFS according to the Government Finance Statistics Manual 2001 (GFSM 2001); statistics are produced under 1995 ESA and EDP Protocol arrangements. ### Division of compilation responsibilities - Financial Institutions and Government Department (MFO) of the Macroeconomic Statistics and Publications Division (CBS): - responsible for collecting and compiling most fiscal data for each subsector of general government for administrative use; - definitions and classifications follow each subsector or institution’s laws and accounting standards (not international statistical standards). - National Accounts Department (MNR) of the Macroeconomic Statistics and Publications Division (CBS): - compiles and disseminates GFS covering the general government sector in the context of national accounts statistics using source data from MFO, and produces GFS according to 1995 ESA and the Manual on Government Deficit and Debt. - A 2005 Protocol between CBS and the Ministry of Finance (MOF): - CBS compiles data on government deficit and debt for past years according to the EDP Protocol; - MOF is responsible for estimates of the current year based on budget figures; - the Protocol confirms the independence of the CBS in estimating deficit and debt statistics. ### Data sharing, coordination, and use of administrative sources - Well-established procedures ensure adequate data sharing and coordination between CBS and De Nederlandsche Bank (DNB), and between CBS and other providers of source data. - CBS uses administrative sources rather than questionnaires when possible to reduce reporting burden. - Specific protocols exist between CBS and providers of source data (Ministry of Finance, other ministries, local authorities). - CBS and DNB have procedures for exchange of data related to general government operations; CBS supplements estimates of the financial account of general government and subsectors with DNB statistics. ### Confidentiality and dissemination of microdata - Individual reporters’ data are confidential and used for statistical purposes only (Statistics Act, sections 37 through 42a). - Individual respondents’ data are available only to CBS staff charged with compilation; all employees sign confidentiality agreements. - Electronic transmissions are encrypted; CBS computers are password protected; premises access controlled with electronic pass cards; visitors must be accompanied. - Staff who disclose personal information commit a crime and may be dismissed and/or taken to court at the Director-General’s discretion. - For GFS, individual respondents’ data are disseminated only after explicit written consent by the respondent; this applies to publishing a “functional” breakdown of expenditure and revenues and data on assets and liabilities of local governments. ### Legal mandate and measures to encourage reporting - Sections 33 through 36 of the Statistics Act authorize CBS to use, for statistical purposes, data from government registers, legal persons, companies, independent professionals, and institutions. - Sections 43 through 52 specify fines and penalties for failure to provide data in full or on time: - maximum amount to forfeit is Euro 20,000, but this amount can be raised in very exceptional cases to Euro 500,000 (Government Gazette of February 16, 2006). - Special arrangements for local government reporting: - Iv3 reports (“information for third parties”) specified in Ministeriële Regeling BBV (2004); - CBS established a help desk for local authorities in 2003 (telephone, dedicated website, visits, meetings). - BBV provides for written warnings from the legal supervisor and, if non-observance persists, requirement to hire an expert at the local government’s expense; these measures have been applied successfully in about 90 percent of cases. - Ministry of Interior plans to change BBV to introduce a financial penalty to ensure timely reporting of high-quality data by local governments. ### Resources, staffing, and facilities - CBS budgeting and planning process (Statistics Act, sections 14 through 19): - Director General must develop a multi-year program at least every five years and a yearly work program; both submitted to CCS for endorsement; CCS sends multi-year program to the Minister of Economic Affairs; Minister notifies Director-General, CCS, and House of Representatives of financial and organizational conditions; notification published in Government Gazette. - Staff changes and adequacy: - Staff numbers reduced by five percent in the period from 2000 to 2005; current number of staff is broadly adequate to perform existing tasks, except for staff dedicated to compilation of the PPI. - Staff are highly qualified; salary levels competitive with other civil service salaries in the Netherlands. - Computing and physical resources: - CBS staff have adequate computing resources, with protection and emergency backup systems; Voorburg office to move into a new building in 2008. - Funding of the CBS is adequate to perform tasks stated in approved programs in light of multi-year planning. - GFS staffing (current): - MFO has 49 staff members: 34 (28 full-time equivalent) responsible for local government statistics (DOH group) and 15 responsible for the rest of general government sector (COI group). - GFS group in MNR has 11 staff members (10 full-time equivalent), responsible for compiling general government statistics in the context of the 1995 ESA and EDP Protocol. - Constraints and future needs: - Staff resources may not be adequate to compile GFS according to a more integrated presentation for fiscal analysis (GFSM 2001) or to implement additional measures to improve source data quality for local government statistics. ### Efficiency measures and management practices - Efficient use of existing resources is a strategic objective under current government financial constraints. - CBS is accountable through specific performance indicators stated in the Ministry of Economic Affairs budget. - Management actions: - extensive internal audit program; - project to revise national accounts compilation processes and data sources; - IMPECT project (initiated 1999) to standardize collection of production statistics across industries and streamline survey-to-national-accounts processes; results used in the benchmark revision of national accounts with 2001 as reference year. - Annual staff work programs and performance assessments; outstanding performance rewarded with extra remuneration (bonus). - Department and group managers frequently evaluate collaboration and “service level agreements” on internal data deliveries between MFO and MNR. ### Monitoring relevance and user engagement - CBS maintains regular contacts with main users via seven high-level advisory boards; each convenes at least twice a year. - Advisory boards comment and advise on the multi-year program and annual work program; Advisory Board of the Director-General comprises chairs of the other six boards and directors of four planning agencies. - Strategic bilateral meetings with ministries and the Netherlands Bureau for Economic Policy Analysis occur at managerial level. - CBS assigns “account managers” to all strategic users to ensure needs are met. - CBS monitors relevance through performance indicators including use of StatLine (online database) and coverage of CBS press releases. *Source: _cr0806 - 0.1 Legal and institutional environment* ### references in parliamentary documents. ### _cr0806 - references in parliamentary documents ### Relevance and use of Government Finance Statistics (GFS) - GFS compiled by the CBS are largely prescribed by the 1995 ESA Transmission Program and various European regulations; relevance is therefore largely influenced by these EU regulations. - High-level monitoring of GFS relevance is performed through the Advisory Board for Macroeconomic Statistics whose members include representatives from DNB, the MOF, the Ministry of Economic Affairs, Rabobank, the Netherlands Bureau for Economic Policy Analysis, the Netherlands Institute for Spatial Research, and two universities. - GFS are an important input for the Netherlands Bureau for Economic Policy Analysis in their forecasts in the Central Economic Plan (“Centraal Economisch Plan” (April forecast)) and the Macroeconomic Outlook (“Macro-Economische Verkenning”) (September forecast). Historical time series of GFS in both reports are provided by the CBS; adjustments are infrequent and explained in footnotes. - Data on government deficit (balance) and debt according to the EDP Protocol are of particular importance to the MOF and are generally used without reservation in MOF reports to Parliament and the press (e.g., the Budget Memorandum "Miljoenennota"). - The MOF provides regular feedback to the CBS on GFS quality; GFS compilers at the CBS have regular, informal contacts with MOF and Netherlands Bureau for Economic Policy Analysis staff. ### Other quality management (0.4) - Processes to focus on quality: - A separate CBS unit dedicated to quality verification was established in 2000. - A project to establish standards for quality of CBS outputs was recently initiated; all statistical outputs and processes will have to comply with these standards. - In 2006, the CBS started conducting risk analysis for statistics most important to the corporate image, covering accessibility, accuracy, timeliness, coherence, relevance, and reproducibility. - A new quality-assessment method considering both output quality and process quality (including consistency within the production chain) was applied to economic statistics; results were very favorable. - Processes to monitor the statistical program: - Statistical auditing against EUROSTAT quality benchmarks. - Respondent and user surveys to assess views of data providers and users. - Verification by the European Commission according to EU regulation 3605/93, including bi-annual assessment of government deficit and debt (Article 8), submission of an “inventory of sources and methods” for the Excessive Deficit Procedure, and regular EUROSTAT dialogue visits. - Quality considerations in planning: - The DMK is responsible for knowledge expansion, general framework development, coherence, standardization, frameworks for methods and quality verification, methodological support to new projects, maintaining business and information architecture, and conducting business analyses. - The Macroeconomic Statistics and Publications Division (including National Accounts department MNR) has an R&D department (MOO); R&D capacity is available without compromising regular outputs. Example: quarterly sector accounts were developed by this department in cooperation with Financial Institutions and Government and National Accounts departments. ### Assurances of integrity (1) - Professionalism and impartiality: - The CBS is an autonomous agency established under the Statistics Act on January 3, 2004; the Director-General cannot be a civil servant subordinated to the Minister of Economic Affairs and must avoid secondary appointments that could interfere with independence. - The CBS adopted a Code of Practice based on the European Statistics Code of Practice emphasizing impartiality, equal access to information, and publication of release dates in advance. - Recruitment and promotion are based exclusively on relevant aptitude and expertise; staff participate in international seminars, courses, and working groups. - For GFS, a 2005 Protocol between the CBS and the Ministry of Finance protects CBS from MOF interference in compilation of government deficit and debt statistics under the EDP Protocol. - Choices of sources and techniques: - Decisions on sources, statistical techniques, and dissemination are informed solely by statistical considerations; Section 18 of the Statistics Act vests method determination with the Director-General. Dissemination decisions are guided by IMF SDDS and EU regulations. - Right to comment on misuse: - Internal guidelines are available for procedures to act on erroneous interpretation and misuse; media coverage is monitored daily; communications handled by the Communication Division. - Transparency: - Legislation and regulations governing the CBS are available on the CBS website (www.cbs.nl) and in its library; the Statistics Act is easily accessible. - IMF DSBB includes terms and conditions under “Integrity” covering confidentiality and individually identifiable information. - Cases of internal governmental pre-release access are publicly identified on the Dutch CBS website; pre-access is granted under specified conditions (formal strategic involvement, crucial importance, no harm to other parties). - For GFS, prior access relates to the first estimate of government deficit and debt in March each year; under the 2005 Protocol the CBS sends these estimates to the Ministry of Finance one week in advance of publication. During that week the MOF verifies data for the “state” (central government) and social security funds and compares with their own data; CBS may adjust only if there is, beyond any doubt, evidence of CBS error. - Product identification and advance notice: - All CBS releases are clearly identified using the CBS logo and references; data used in ministerial reports and the Budget Memorandum are identified in footnotes. - The CBS publishes information on methodological changes on its website and in relevant publications; methodological changes are communicated in press releases. Every February, advance notice of changes affecting national accounts is given to the MOF and the Netherlands Bureau for Economic Policy Analysis. For significant changes, detailed studies on impacts are distributed to main users. Benchmark revisions are explained in user meetings and separate publications on magnitude and methodology. - Ethical standards: - Chapter 4 of the CBS Code of Practice covers staff behavior principles: impartiality, reliability, relevance, cost effectiveness, statistical confidentiality, and transparency. - An Integrity Policy handbook is available internally. New staff sign a secrecy declaration, submit a “certificate of incorporation” from local police, and take an oath a few months after starting duty. ### Methodological soundness (2) - Concepts and definitions (2.1): - The CBS compiles annual and quarterly general government, central government, and local government statistics on an accrual basis in the context of national accounts, according to the European System of Accounts 1995 (1995 ESA) under EU Council Regulation 2223/96, and the 1995 ESA Manual on Government Deficit and Debt following the Protocol on the Excessive Deficit Procedure (EDP Protocol), EU Council Regulation 3605/93. - The Ministry of Finance compiles and disseminates monthly central government operations and debt data according to the EDP Protocol. - The 1995 ESA definitions and concepts are broadly similar to the IMF’s Government Finance Statistics Manual, 2001 (GFSM 2001); however, the GFSM 2001’s explicit integrated fiscal analytical framework is not used in the Netherlands and there are no plans to migrate to the GFSM 2001. The CBS noted that, given there are no legal obligations to adopt GFSM 2001 and in light of further cuts (of about 30 percent) to staff resources, adoption will have low priority. - Where guidance is lacking in the 1995 ESA, the CBS uses the System of National Accounts, 1993 (1993 SNA). - Scope (2.2): - The scope of GFS compiled and disseminated by the CBS and MOF is broadly consistent with internationally accepted standards, with some exceptions. - GFS cover all general government units in the Netherlands, with separate statistics for central government, local government, and social security subsectors. - The CBS complies with the 1995 ESA Transmission Program producing the following tables: - Table 02, General Government Revenue and Expenditure (annual); - Table 06, Financial Transactions and Other Volume Changes, including GFS (annual); - Table 07, Financial Balances, including GFS (annual); - Table 08, Nonfinancial Sector Accounts, including GFS (quarterly and annual); - Table 09, Taxes and Social Contributions (annual); - Table 11, Government Expenditure according to the Classification of Functions of Government (COFOG) (annual); - Table 25, Quarterly Nonfinancial Sector Accounts for General Government (quarterly); - Table 27, Quarterly Financial Sector Accounts for General Government (quarterly); and - Table 28, Quarterly General Government Debt according to the EDP Protocol (quarterly). - These statistics are disseminated by EUROSTAT; CBS links to EUROSTAT statistics on its website. Domestically, GFS are disseminated within national accounts with additional detail (e.g., detailed tax breakdowns) according to national nomenclatures. - Because GFS are compiled in the context of national accounts per EU Council Regulations 2223/96 and 3605/93, they cover all transactions of units within scope as presented in the GFSM 2001 Statement of Government Operations (Table 4.1). However, important GFSM 2001 aspects are lacking in the CBS/MOF scope: - A Statement on Sources and Uses of Cash (i.e., a cash flow statement) integrated with the rest of the GFS (Table 4.2 in the GFSM 2001); - A breakdown between holding gains/losses and other changes in the volume of assets and liabilities to compile a complete Statement of Other Economic Flows (Table ...). *Source: _cr0806 - references in parliamentary documents.* ### 4.3 in the GFSM 2001); ### _cr0806 - 4.3 in the GFSM 2001); ### Balance sheet coverage and dissemination - A complete, consolidated Balance Sheet is compiled for holdings of nonfinancial assets, financial assets, and liabilities (Tables 7.1, 7.2, 7.3 and 7.4 in the GFSM 2001). Only stocks of financial assets and liabilities are compiled and disseminated by the CBS. - Statistics on stocks of nonfinancial assets are compiled by the CBS for purposes of calculating consumption of fixed capital but are currently not disseminated because it is not required under the EU regulations. - The Ministry of Finance compiles and disseminates a complete balance sheet in the “State’s Annual Report”, in accordance with the 1995 ESA, for the “State” (equivalent to the budgetary central government). - The Ministry of Finance recognizes government liabilities for unfunded, non-autonomous government employee pension schemes (notably most military pensions) in the annual balance sheet it compiles for the “State.” - The Ministry of Finance compiles and disseminates domestically monthly GFS as well as monthly debt statistics compiled in accordance with the EDP Protocol covering the budgetary central government (the “State”). - The same monthly central government operations data and quarterly debt data are disseminated on the IMF’s Dissemination Standards Bulletin Board (DSBB). ### Classification and sectorization - Classification/sectorization systems used are broadly consistent with internationally accepted standards, guidelines, or good practices. - The general government sector and its subsectors are defined in accordance with the 1995 ESA guidelines (paragraphs 2.69, 3.27 and 3.28) and the 1995 ESA Manual on Government Deficit and Debt (chapter 1), which are also consistent with the 1993 SNA and GFSM 2001. - The general government in the Netherlands consists of: central government, local government, and social security funds. The CBS compiles and disseminates GFS for each subsector as well as for the consolidated (and unconsolidated) general government sector. - The Ministry of Finance’s monthly statistics on central government operations and debt cover all of the budgetary central government (the “State”), while the same annual statistics cover all of central government. - Central government subsector comprises: - The budgetary central government (the “State”), i.e., ministries, some budget funds (e.g. the Municipal Budget Fund and the Infrastructure Fund) and state agencies (e.g., the prison system, state building system, central police services). Two state agencies and a part of a third state agency are considered to be engaged in market production and are excluded from the government sector; - Public corporate organizations, i.e., organizations established by government and funded through obliged payments by corporations carrying out general economic policy for a specific branch of trade; - Universities (public); - Nonprofit institutions (NPIs), which are controlled and financed by government units and have a national function (e.g., Prorail). - Local government subsector comprises: - Municipalities, excluding their “quasi-corporations” such as public transport, energy supply; - Provinces; - Communal arrangements (cooperation between municipalities for joint provision of public services); - Public Water Boards; - Special Education (schools financed directly by the Ministry of Education); - Nonprofit institutions (NPIs) controlled and financed by government units with local functions (e.g., museums, public libraries, employment agencies, and police districts). - Social security funds subsector consists of: - Executive bodies: Health Care Insurance Board (CVZ), Executive body Employment Insurance (UWV), Social Insurance Bank (SVB), and Central Administration Office Special Medical Cost (CAK); - Social security funds: Disablement Insurance Fund (AOK), Disablement Insurance Act (WIA/Aof), Fund for unemployment (WW), Executive Fund of the Government (UFO), Medical Health Fund Act (ZVW), General Old Age Pensions Act (AOW), Surviving Relatives Act (ANW), and Exceptional Medical Health Act (AWBZ). - Quasi-corporations are not classified in the general government sector (in accordance with 1995 ESA paragraph 2.13f and 1993 SNA paragraphs 4.49-4.53). In the Netherlands, the only significant quasi-corporations are owned and controlled by municipalities (e.g., public transport, sea harbors). On the central government level, quasi-corporations’ activities are negligible. - Classification notes: - The classification of expenditure according to the 1995 ESA is similar to the GFSM 2001 classification of expense and acquisition of nonfinancial assets. - The classification of revenue according to the 1995 ESA is similar to GFSM 2001 for revenue and disposal of nonfinancial assets, but the 1995 ESA classification of revenue does not require the detailed breakdown of tax revenue recommended in the GFSM 2001. - Domestically, more detailed information is compiled and disseminated for: taxes, subsidies, social contributions, social benefits, income and capital transfers, and a revenue and expenditure breakdown of social security schemes. High-level classifications follow the 1995 ESA and are further distinguished into national (budgetary) categories. - In line with the 1995 ESA (paragraph 5.130), accrued interest is classified in the category “other accounts payable/receivable excluding trade credits and advances” (AF.79) in GFS compiled in the context of the national accounts. - Swaps are classified differently in the quarterly (1995 ESA Transmission Tables) and annual GFS statistics: quarterly tables classify swaps (net) as financial derivatives under financial assets (in line with the GFSM 2001), while annual accounts classify swaps (net) as other accounts receivable. - Valuation implication: - For 2006, it is estimated that total financial assets of the general government is underestimated by about 15 percent due to the valuation policy of unquoted share holdings of local governments. ### Basis for recording: valuation, accruals, and grossing/netting - Market prices are used to value flows and stocks. - All flows and stocks of financial assets and liabilities for the general government and its subsectors are valued at market prices, with noted exceptions. - Transactions expressed in monetary values are usually at current market prices; other flows and stocks are estimated using the closest market information available. - Transactions in foreign currency are converted into euros at the mean rate between the buying and selling rates on the day of the transaction. Foreign currency stocks are valued at the mean exchange rate in force at the end of the period. - Quoted shares, bonds, and mutual funds shares are mainly valued at market prices; money market instruments are valued at purchase prices. - Unquoted shares and other equity holdings of central government are valued at own funds at book value, in compliance with EUROSTAT requirements; unquoted shares and other equity of local governments are valued at acquisition (historical) values, contrary to international standards. - In the balance sheet for the “State” (compiled and disseminated by the Ministry of Finance) nonfinancial assets, financial assets, and liabilities are valued at current market prices, but unquoted shares and other equity are valued at market prices of the previous year. - Monthly debt statistics: - Compiled and disseminated by the Ministry of Finance at face value (which is the amount that government is obliged to pay when the debt matures), in accordance with the EDP Protocol, as well as at market values. - Accrued interest is not capitalized to the debt instrument in the general government balance sheet in the context of the national accounts (allowed as a second-best option according to 1995 ESA). - Note: valuation terminology — “nominal value” is conceptually different from “face value”; although EMU-debt valuation is normally referred to as “nominal value”, the valuation is in fact at face value. - Recording on an accrual basis: - Stocks and flows in the general government account are recorded on an accrual basis in line with 1995 ESA (paragraph 1.57) and the 1995 ESA Manual on Government Deficit and Debt. The same applies for the monthly central government operations compiled according to the EDP Protocol. - Most of the central government’s source data are on a cash basis, and the rest of the general government’s source data are on an accrual basis. Cash-based source data are adjusted to an accruals basis using the time-adjusted method. Central government taxes and charges are generally estimated on an accrual basis by time-adjusting cash data by one month. - Consumption of fixed capital is estimated using a perpetual inventory method, based on the market values estimates of nonfinancial assets. - The Dutch government has no specific plans to implement an accrual basis of recording to central government accounting or budgeting. - Grossing/netting procedures: - The CBS and the Ministry of Finance apply grossing/netting procedures consistently with 1995 ESA guidelines. - Corrective transactions, such as tax refunds, are netted against the original transactions. - Transactions in assets and liabilities are shown on a net basis (acquisitions minus disposals). No financial assets are offset against liabilities. - There is a practice of netting “own nontax revenues” of ministries against their expenditures in setting “expenditure ceilings” during budgetary planning, but source data are correctly recorded on a gross basis. *Source: _cr0806 - 4.3 in the GFSM 2001);* ### 3.1 Source data ### 3.1 Source data ### Source data collection and coverage - Source data are obtained from comprehensive data collection programs that take into account country-specific conditions. - Policy to reduce administrative burden requires CBS to explore all options to obtain the most reliable data sources and, only if these are exhausted, collect source data directly (by way of a survey or questionnaire). - The same comprehensive list of public sector units in the Netherlands is used across the CBS; this list is reviewed regularly and updated if needed. - CBS employs comprehensive data collection programs to compile GFS for central government, local government, and social security funds, but local governments often report source data of substandard quality. - Where possible direct data sources are used; indirect sources of inferior quality are sometimes employed because direct sources are unavailable or to reduce reporting burden (examples: Labor Force Survey for wages and salaries, DNB banking statistics for financial accounts, annual reports of public companies to estimate dividends). - CBS uses bridge and derivation tables to compile GFS from various data sources in the context of the national accounts and the EDP Protocol. - Quarterly GFS covering quarterly financial accounts are generally inferior to nonfinancial accounts, leading to discrepancies within subsectors—largely due to lack of adequate source data for some accounts payable/receivable. ### Central government: sources and practices - Available cash-based source data for budgetary central government (the “State”) include: - monthly reports on taxes from the Tax Authority; - monthly revenue and expenditure broken down into aggregated “budget articles” from the Ministry of Finance; - electronic reports from all ministries and budget funds with revenue and expenditure broken down into aggregated “budget articles,” main transactions by economic type, and explanatory notes; - balance of the state (“Staatsbalans”) from the Ministry of Finance; - Treasury/exchequer statements (“Rijksschatkistoverzichten”) providing details of short-term financing of budgetary central government operations; - various budget documents: Budget Memorandum (“Miljoenennota”), Spring Memorandum (“Voorjaarsnota”), Fall Memorandum (“Najaarsnota”), Provisional Annual Account (“Voorlopige jaarrekening”), and the Final Account (“Slotwet”). - State agencies employing accrual accounting provide quarterly questionnaires on main revenue and expenditure items and their annual reports. - Other central government units/entities: quarterly and annual source data are derived from annual accrual-based reports; no quarterly source data are available except for the Investment Bank for Developing Countries. - Annual data sources used include: - financial information on public universities from the Ministry of Education; - annual financial reports on “public corporate organizations” prepared by the supervising body, the Social and Economic Council; - summaries of financial and nonfinancial transactions of other central government NPIs based on published annual reports. - CBS considers quarterly estimates derived from annual sources broadly sufficient given the small relative size of these entities; inconsistencies between above-the-line and below-the-line data likely stem from estimated accounts payable/receivable. - Monthly estimates on central government operations: Ministry of Finance uses administrative data for the budgetary central government; outstanding government debt data are based on source data from the Dutch State Treasury Agency. ### Local government: sources and quality issues - Local governments use accrual accounting standards but lack standardized charts of accounts and nomenclatures. - Since 2004, BBV regulation requires local governments to report quarterly and annual source data to CBS using “Iv3” reports (a standardized, detailed questionnaire). - Public water boards report quarterly and annual data by mutual agreement with CBS. - Data sources for local governments include: - Iv3 reports for municipalities and provinces based on budgets, showing revenue and current expenditure by “functions” (local nomenclature, not COFOG), including budgeted data for taxes and some market output activities; - Iv3 reports for public water boards containing budgeted tax revenues; - quarterly and annual Iv3 actual-data reports on nonfinancial and financial operations of municipalities, provinces, communal arrangements, and public water boards; - annual information on operations of schools from the Ministry of Education, except primary schools (through 2006 no source data for primary schools were available and had to be estimated by CBS; starting in 2007 some data on primary schools for 2006 will be obtained from the Ministry of Education); - summaries of transactions of other local government nonprofit NPIs based on published annual reports. - Local government Iv3 reports often do not meet definitions and classifications required to compile GFS: many misclassifications and incorrect entries occur despite built-in internal checks and CBS assistance. - Completion difficulties arise because local government staff are unfamiliar with 1995 ESA classifications and no standard charts of accounts exist to bridge local nomenclatures to 1995 ESA. ### Social security funds: sources and recent issues - Social security executive bodies provide monthly, quarterly, and annual source data on operations of social security funds. - Reports are supplemented with information from the Tax Authority (social security contributions) and the central bank (financial statements from insurance companies to estimate revenue and expenditure under the new Health Care Insurance Act). - Switching data sources has caused teething problems: social contributions were previously provided by executive bodies and now by the Tax Authority, with apparent underreporting of social contributions. - CBS is making appropriate adjustments to compensate and is giving high priority to resolve this; in the interim CBS still receives social contribution data from executive bodies to compare sources. ### Timeliness of source data - Monthly source data for monthly central government statistics are available less than one month after the end of the reference period. - Quarterly source data are, on average, available about 30 to 45 days after the end of the reference quarter for compilation in the context of the national accounts and EDP Protocol. - Annual source data are available with adequate periodicity and timeliness, varying in status from preliminary to “semi-final” to final for annual GFS compilation. - Financial Institutions and Government Department (MFO) monitors reporting of local government units and announces reporting deadlines well in advance. - Some local governments have difficulty submitting Iv3 reports covering the fourth quarter (September to December) before February 1 of the following year as required; CBS may delay the reporting deadline by two weeks and, if no data are submitted, estimates the missing data. - Reporting deadlines for other general government units are established by official agreements. ### Assessment of source data and quality assurance - Well-established procedures exist to assess source data routinely for coverage, sampling error, response error, and nonsampling error; assessments are primarily performed by MFO within the Macroeconomic Accounts and Publications Division. - Source data for NPIs and “public corporate organizations” are assessed by the GFS group in the MNR Department; MNR performs secondary assessments of data provided by MFO. - Input Bureau within MFO is responsible for entering and processing local government source data; special software monitors reporting and performs technical checks. - Iv3 report form includes five built-in quality checks focusing on internal consistency; authorities are considering changing BBV regulations to incorporate additional quality checks (which would require changing the law). - After initial processing, data are assessed by MFO specialists; preliminary data are compared with final data and large changes are investigated. - GFS Group in MNR performs additional assessments such as consistency among subsectors and comparisons with Labor Force Survey and banking statistics; source data are compared with counterpart information or supplementary information when in doubt. - Transactions in financial assets and liabilities are compared with changes in stocks of financial assets and liabilities. - Direct source data questions are addressed through direct contacts in reporting agencies. ### Statistical techniques and data compilation methods - CBS employs sound statistical techniques to deal with data sources: - Estimates of missing data are based on annual historical data or budget reports of the sources. - For quarterly data, a fixed sample survey of state agencies and communal arrangements is used; of the 40 agencies, data for 30 are estimated using budget reports or annual reports. - If some local government Iv3 reports are unusable due to quality issues, data are grossed-up to the full population using simplified stratified ratio estimators. - All data are corrected when more accurate data become available if there are material differences. - Discrepancies between the sum of quarterly data and annual data are removed using the Denton technique or proportional smoothing. - No discrepancies can exist between stocks and corresponding flows because they have to be reconciled in tables that form part of the 1995 ESA Transmission Program. - No statistical techniques are applied by the Ministry of Finance in the compilation of data for the budgetary central government (the “state”). - Other sound procedures: - Bridge tables are used to automatically transform source data into 1995 ESA classifications where possible; manual bridging is used when automatic bridging is not possible. - Valuation adjustments of financial assets and liabilities to market prices are sound. - Consumption of fixed capital is calculated using the Perpetual Inventory Method based on market valuations of stocks of nonfinancial assets in the various subsectors of general government. - Cash-to-accrual adjustment procedures: - (1) a one-month the time-adjusted method for some taxes and social contributions; or - (2) additional information from ministries for some military expenditures, income transfers to the EU, social assistance benefits, and property income. *Source: 3.1 Source data* ### 3.4 Assessment and validation of intermediate data and statistical outputs ### 3.4 Assessment and validation of intermediate data and statistical outputs ### Validation of intermediate results - Intermediate results are cross-checked by the GFS Group in the MNR Department with other sources, if available. - For revenue and expenditure (nonfinancial accounts), attention is paid to: - Consistency over time. - Application of specific 1995 ESA concepts, such as payments of “super” dividends and cross-border leases. - Other national accounts sources used to validate GFS intermediate results include the Labor Force Survey and the Supply and Use Tables. - Pre-balancing verifications compare intergovernmental flows: - Example: Grants paid by the budgetary central government (the “State”) as recorded in the budgetary central government accounts are compared with grants received by municipalities as recorded in the Iv3 reports. - The source considered most reliable is used; the process produces a consistent dataset for general government. - For financial accounts: - Consistency between above- and below-the-line data is verified. - Financial data are compared with monetary (banking) statistics. - Balancing of “uses” and “resources” for all nonfinancial transactions and all financial assets and liabilities is performed in the Sector Accounts of the national accounts (including GFS), facilitated by software (iSR) in the CBS computer system. - Final actions: 1. Consider and judge the overall picture. 2. Investigate statistical discrepancies; if resolved, adjustments are usually made to the financial accounts; if not, discrepancies are noted in disseminated data. ### Assessment and investigation of statistical discrepancies - All statistical discrepancies in intermediate data are assessed and investigated in the MFO Department before publication or transfer to the GFS Group in MNR. - Examples of procedures: - Results of the Denton technique (making quarterly data consistent with annual data) are always assessed by CBS staff in the relevant expertise areas. - Aggregates edited individually and grossed up are assessed to identify outliers or problems; investigations are conducted by senior specialists. - Once MFO is satisfied, data are provided to MNR with explanatory notes on outliers, comparisons, coverage, etc. - All discrepancies in the Sector Accounts are investigated and resolved if possible. - As part of the 1995 ESA Transmission Program, flow data are reconciled with corresponding stock data for financial assets and liabilities; flows and stocks of nonfinancial assets are not reconciled because CBS does not publish a nonfinancial balance sheet for general government or its subsectors. ### Indicators of problems in statistical outputs - Automatic, built-in consistency checks within the national accounts context are used to identify discrepancies or data problems. - Cooperation arrangements (formal and informal) exist between CBS and main data sources such as DNB and the Ministry of Finance; every effort is made to resolve discrepancies, although not all are resolved. - A persistent example: the discrepancy between quarterly net lending/borrowing from the nonfinancial accounts (B.9) and its financial counterpart (B.9F) remains unresolved. ### Revision studies related to validation - Main revisions of GFS occur as benchmark revisions within the national accounts; such revisions are thoroughly studied and explained. - More regular revisions to GFS address consumption and production; results are published. - CBS drafts internal notes about revisions to inform other departments. - Many GFS revision studies are conducted in EU/EUROSTAT Task Forces; findings are used to improve GFS compilation. --- ### 4. Serviceability ### 4.1 Periodicity and timeliness - Periodicity follows SDDS standards: - Central government operations data: published monthly (by the Ministry of Finance). - Central government debt data: published quarterly by the Ministry of Finance; data broken down by type of debt instrument and by maturity. 88 - General government operations data: published quarterly and annually by the CBS. - Timeliness follows SDDS standards: - Monthly central government operations data: published within one month after the end of the reference month. - Quarterly central government debt data: published within one quarter after the end of the reference quarter. - The first estimate of annual data on general government operations89: published within one quarter of the end of the reference year (exceeding SDDS timeliness requirement and meeting the encouraged timeliness); the second estimate is published six months after the end of the reference year (in line with SDDS). - The Netherlands meets the timeliness of the 1995 ESA Transmission program (submitting data within one quarter).90 ### 4.2 Consistency - Internal consistency: - GFS are consistent within the dataset except for a statistical discrepancy between quarterly net lending/borrowing (B9) in the nonfinancial accounts and its counterpart (B.9F) in the financial accounts, due to quality issues in quarterly transactions in financial assets and liabilities. - The first estimate of annual GFS (based on quarterly statistics) exhibits the same discrepancy for the most recent year; for years t-2, t-3, etc., the four quarters' discrepancies add to zero because quarterly data are made consistent with annual data using the Denton technique. - In Table 03 of the EDP report (stock-flow adjustments), negligible discrepancies exist in reconciling stock of government debt with government deficit and other economic flows. - No inconsistencies within monthly GFS compiled and disseminated by the Ministry of Finance. - Concepts and definitions are the same in annual and sub-annual GFS except for identified differences between GFS produced according to the 1995 ESA under EU Council Regulation 2223/96 and the 1995 ESA Manual on Government Deficit and Debt under EU Council Regulation 3605/93 and later amendments. - Consistency over time: - Continuity (comparability over time) has priority; changes are incorporated in scheduled national accounts benchmark revisions (every five years), which are always thoroughly explained. - For nonfinancial accounts: consistent GFS series for general government and subsectors exist from 1969 onwards. - For financial accounts: consistent series with same coverage as nonfinancial accounts exist from 1990 onwards. - Consistent series for COFOG classifications of expenditure exist from 1995 onwards. - Large breaks in time series are accompanied by explanatory notes; breaks occur exclusively due to changes in Dutch government policy. - Consistency with other frameworks: - GFS, compiled in the national accounts, are by definition consistent with national accounts statistics. - GFS is generally consistent with balance of payments and monetary and financial statistics; differences, if any, can be reconciled.91 ### 4.3 Revision policy and practice - Revisions follow a regular and transparent schedule: - Annual GFS for year t are disseminated at end-March year t+1, based on quarterly information. - Annual data are revised three times: 1. National accounts in July of year t+1 publish new estimates for year t (2nd estimate), year t-1 (3rd estimate), and year t-2 (4th and final estimate). 2. For GFS specifically, an additional revision of deficit and debt of year t-2 occurs in April of year t, resulting from new local government information. - Quarterly GFS for year t are revised first when the fourth quarter’s estimates are made; revised quarterly GFS for year t are published at end-March of year t+1 along with fourth quarter estimates for year t. Other quarterly revisions follow same frequency as annual data. - Revisions to quarterly GFS for EUROSTAT are submitted in September and published in October each year.92 - A benchmark revision is done about every five years and announced in advance; the revision policy is explained on CBS website and in hard copy publications. - Identification and publication of revisions: - Preliminary data are clearly identified in publications using a symbol; users observe absence of symbol to know preliminary data have been replaced by final data. - CBS explains significant revisions; benchmark revisions and significant policy-driven changes are extensively explained. - Regular revisions from replacing preliminary with final data are not specifically explained unless significant; final data are clearly distinguished from preliminary data (preliminary indicated with an asterisk (*)). --- ### 5. Accessibility ### 5.1 Data accessibility - Presentation and formats: - GFS are disseminated in several formats to facilitate interpretation and comparisons. - CBS provides a hyperlink to the Netherlands’ GFS on the EUROSTAT website presented in the GFSM 2001 framework; CBS is exploring ways to disseminate these data domestically using the EUROSTAT GFSM 2001 presentations. - The CBS electronic database “Statline” (www.cbs.nl) is the most flexible facility: - Users can select variables, periods, and layout; compile simple charts; includes substantial metadata. - Data downloadable in MS Excel, plain text, html or SPSS formats. - First-time users find Statline somewhat user-unfriendly. - Hard copy publication National Accounts (English and Dutch) contains substantial GFS in national accounts context and additional detailed tables (1995 ESA classifications at high level, national nomenclature at lower level). - Additional GFS tables and analyses appear in De Nederlandse Conjunctuur and De Nederlandse Economie. - With the exception of government consumption, no seasonally adjusted GFS data are compiled and disseminated. - Dissemination media and schedule: - GFS dissemination media/formats: CBS website, press releases, hard copy publications; hyperlink to EUROSTAT GFS presentations is provided on CBS website. - Ministry of Finance publishes monthly GFS on its website and on IMF’s DSBB. - CBS publishes an advance release calendar annually and a weekly advance release calendar on its website. - A quarter-ahead advance release calendar with precise release dates is posted on the IMF's DSBB and is noted in the Statistical Bulletin of De Nederlandsche Bank; recommendation: also disseminate this calendar on MOF and CBS websites. - Equal access and special access: - All data are made available to all users at the same time, except the first estimate of government deficit and debt according to the EDP Protocol (Ministry of Finance has prior access to assist CBS verification). - All nonconfidential GFS statistics are made available upon request; provision may be free or for a small fee depending on effort required. ### 5.2 Metadata accessibility - Documentation: - Documentation on GFS sources and methods is adequate and readily accessible; GFS compiled and disseminated according to 1995 ESA and the 1995 ESA Manual on Government Deficit and Debt (both translated to Dutch and available on CBS website). - Statline includes variable definitions, brief table explanations, links to relevant tables and articles, definitions and explanations of symbols, and descriptions of surveys where relevant. - National Accounts hard copy contains summary metadata on concepts, scope, classifications, and basis of recording in English and Dutch. - EUROSTAT manuals and “inventories” exist for some GFS; Manual on Quarterly Nonfinancial Accounts for General Government (including Dutch practice) was published on EUROSTAT website in December 2006. - CBS provides hyperlinks to EUROSTAT home page and EUROSTAT GFS presentations, but these references are difficult for users to find on the CBS website. - Drafts being prepared: Dutch Quarterly Financial Accounts for General Government and Government Expenditure according to COFOG. - EUROSTAT will publish an inventory of sources and methods for each member state on compilation of government deficit and debt according to the EDP Protocol. - Sources and methods on Dutch national accounts (of which GFS are part) are published on CBS website in the “GNI Inventory.” - Levels of detail: - CBS adapts metadata detail to the intended audience: - National Accounts contains detailed statistics and technical explanations. - De Nederlandse Economie is aimed at general public with fewer details and more general analyses. ### 5.3 Assistance to users - Contact points: - Central contact point: Infoservice (physical address, telephone, facsimile, e-mail) publicized on CBS website and publications. - General inquiries handled by Infoservice; technical inquiries routed to CBS specialists. - CBS has a spokesperson for macroeconomic statistics and “account managers” for strategic users. - Catalogs and charges: - CBS catalogs publications, press releases, contact information, and services on its website; specific GFS information is on the “Macroeconomy” webpage.94 - Hard copy publications include information on available publications, prices, Infoservice reference, and Statline link. - All publications and press releases on the website are available without charge. --- ### Recommendations (as stated) - Compile and disseminate annual and quarterly general government statistics in line with the fiscal analytical framework set out in the GFSM 2001. - Compile and disseminate a Statement of Sources and Uses of Cash (cash flow statement), as well as a complete balance sheet, for the general government and its subsectors. - Interim measure: include government’s liabilities for the unfunded non-autonomous employee pension scheme as a memorandum item in the balance sheet (until recognized by the 1993 SNA and 1995 ESA). - Compile and disseminate a detailed classification of tax revenue according to the GFSM 2001. - Continue to explore ways to improve quality of source data for local governments and quarterly source data for accounts payable/receivable in financial accounts of all subsectors. - Continue to explore ways to value stocks of local government unquoted equity holdings (financial assets) at current market values. - Explore classifying accrued interest with the underlying instrument rather than in other accounts receivable/payable in general government’s financial balance sheet. - Include the advance release calendar for central government operations and central government debt on the MOF and CBS websites (currently posted only on the DNB website). *Content based on “3.4 Assessment and validation of intermediate data and statistical outputs” from _cr0806 - 3.4 Assessment and validation of intermediate data and statistical outputs_* ### 0. Prerequisites of quality 0.1 Legal and institutional environment ### 0. Prerequisites of quality — 0.1 Legal and institutional environment ### Legal and institutional responsibilities (0.1) - De Nederlandsche Bank (DNB) is responsible for compiling balance of payments statistics as established in Section 7 of the External Financial Relations Act 1994 (Wfbb – Wet financiële betrekkingen buitenland 1994). - Section 4 of the Bank Act 1998 mandates the production of the statistics. - The DNB compiles the balance of payments in close cooperation with Statistics Netherlands (CBS); most current and capital account data are collected by the CBS under the Statistics Act of November 2003. - The compilation of balance of payments statistics at the DNB dates back to 1946. - The DNB has a long-standing tradition of disseminating balance of payments statistics as a public service, although data dissemination responsibilities are not prescribed in the legal mandates. ### Data sharing, coordination, and governance (0.1.2–0.1.4) - CBS and DNB cooperation was formally ratified in January 2006 via a Partnership Agreement establishing responsibilities and mutual obligations; further detail is set out in Further Partnership Agreements. - Data exchange mechanism: secure web portal and secure e-mail; a limited number of employees at both institutions have access. - An annual mailing calendar for data exchange is agreed each October. - Regular forums: high-management meetings (thrice a year), technical working groups chaired by management, and shop-floor meetings for joint data analysis and coordination of Rest-of-the-World account with the balance of payments. - Confidentiality framework: - Section 8 of the External Financial Relations Act 1998 requires confidentiality of data collected under the law; allows sharing with CBS, ECB, and other EU central banks for statistical purposes if confidentiality is safeguarded. - Section 37 of the CBS Law describes use and confidentiality of data obtained under its mandate. - Partnership Agreement permits exchange of individual reporters’ information only for statistical purposes and never to third parties; Annex to Further Partnership Agreements specifies actual exchangeable data. - ESCB central banks must comply with the ECB Guideline on Confidentiality and submit an annual compliance report to the ECB. - Operational confidentiality safeguards: - New DNB employees sign a nondisclosure agreement. - Access to individual data restricted to staff who require it for statistical duties. - Manual checks on potential confidentiality issues before dissemination to prevent residual or indirect disclosure. - External recipients (mainly ECB and EUROSTAT) are not allowed to publish data with a more detailed geographical breakdown than in DNB publications. - Micro-data are only made available to CBS, ESCB-institutions, or EUROSTAT; not made available for research purposes outside DNB (may be reconsidered when confidentiality issues are solved). - Digital storage with limited access; secured DNB premises and escorted visitors. - Reporting enforcement and respondent interaction: - Section 7 of the External Financial Relations Act authorizes DNB to collect data for statistical purposes. - DNB issues monthly formal reminders; negligent reporters face a daily fine (‘cease and desist order’) with no statutory maximum, but fines should be “…in reasonable proportion to the importance of the statistics...”. - DNB can impose an administrative fine with a maximum of € 900.000 per individual case for repeated noncompliance. - CBS has similar enforcement instruments. - Measures to reduce reporting burden: regular review of reporting population, use of business terminology in forms, meetings with sectors to solicit feedback, account managers to assist reporters. - Report forms and guidelines available on the internet in Dutch and English; E-line reporting tool available from 07:00 am to 07:00 pm on working days with helpdesk support; respondents may submit reports based on their financial year. ### Noted quality issues (0.1) - The legal mandates for DNB’s compilation responsibility are formulated “rather implicitly,” though primary responsibility under Dutch law clearly rests with the DNB. ### Findings and operational practices (concise) - Formalized cooperation and mutual obligations via Partnership Agreement (January 2006) and Further Partnership Agreements. - Well-established multilevel coordination mechanisms to harmonize methodology, reduce reporting burden, and ensure timely data transmission. --- ### 0.2 Resources ### Staffing, facilities, and IT (0.2.1) - Number of staff in the Statistics Department devoted to balance of payments: about 30 full-time personnel. - Staff are distributed across four divisions: Balance of Payments and Statistical Publications, Monetary and Banking Statistics, Insurance Companies and Pension Funds statistics, and Other Financial Intermediaries Statistics. - The Balance of Payments and Statistical Publications Division is responsible for compilation, dissemination, and international contacts. - Recruitment and training: - DNB hires well-educated staff (university and other higher education level); competitive salaries and attractive work environment. - Staff participate in international meetings, teach seminars, and contribute articles to the DNB’s Statistical Bulletin. - Balance of payments seminars held in Amsterdam and Ljubljana (Center for Excellence in Finance); occasional regional seminars (Manila in 2007, Aruba in 2008). - In 2006, the DNB was ranked second in an influential best-employer national study due to relatively high starting salaries and training budget. - Most training is on the job; occasional participation in IMF or ECB courses. - Staff turnover has been relatively low, maintaining a core with extensive experience. - IT and software: - Modern desktop computers with custom statistical programs are available to all staff; programs are adequately maintained with frequent releases. - The compilation-support software “AVB” was one of the largest IT projects at DNB; regular updates occur but compete with other departmental needs. - Almost all statistical reports are transmitted electronically; all data are stored and processed electronically. - Special software supports a macro-micro approach to analysis. - Continuous back-up via general DNB back-up facilities located outside the main building. - Budget and funding: - DNB budget distinguishes “ZBO-tasks” (supervisory tasks) and ESCB-tasks (under which balance of payments are compiled). - Funding of ESCB tasks does not require Minister of Finance approval. - Current budget framework allows timely anticipation of needed changes; overall funding is adequate. ### Resource efficiency and management (0.2.2) - Organizational design encourages efficient resource use: divisions aligned with reporting institution groups and shared data. - Reorganization reduced staff needs and improved efficiency; individual progress meetings and annual performance reviews inform remuneration. - Process improvements: - 1999 strategic decision to introduce a new direct reporting system replacing the ITRS in 2003, reducing reporting burden for banks and enterprises and enabling staff reductions. - Recent feasibility study on a single inquiry of nonfinancial institutions for both DNB and CBS. - Permanent exchange of best practices within the EU (ECB Working Group on External Statistics, EUROSTAT’s Balance of Payments Working Group) and between CBS and DNB. - Project and financial governance: - Major projects require business-case approval by the Statistics Department Project Board (all Statistics managers). - Project Board approves annual automation plan and reviews progress; can request additional budget from the Executive Board when needed. - Strategy, Planning and Control Division issues quarterly financial reports and a quarterly “traffic light” report on target achievement. --- ### 0.3 Relevance ### Monitoring and user engagement (0.3.1) - The Balance of Payments and Statistical Publications Division holds regular meetings with internal users; users can express demands and feedback. - Regular meetings with business organizations occur between three and four times a year; ad hoc meetings with ministries and other users as needed. - Communication of changes: methodological changes, reporting adjustments, new data availability, and revisions are communicated via articles in the Statistical Bulletin or notes to tables. - International engagement: DNB participates in meetings and seminars organized by ECB, EUROSTAT, OECD, etc., to identify new and emerging data requirements. - Responsiveness to users: - Publication of data on Special Financial Institutions (SFI) followed user requests. - Planned introduction (in the December 2007 issue of the Statistical Bulletin) of a new table reconciling stocks (from the IIP) and flows (from the balance of payments statement) following recommendations from qualified users. --- *Balance of Payments Statistics (excerpt).* ### 0.4 Other quality management ### 0.4 Other quality management ### 0.4.1 Processes are in place to focus on quality - The importance of good quality statistics is central to the Statistics Department’s mission and is reflected in management objectives and annual performance reviews. - Organizational structure and a culture of carefulness are designed to ensure quality while simultaneously considering efficiency (example: macro-micro approach in data analysis). - Monthly compilation process and the revision cycle include cooperation between account managers, economists, and statisticians to ensure high quality output; multiple pre-publication meetings monitor balance of payments figures. - Respondents interact with account managers, who regularly visit reporting institutions. - Economies of scale and interrelations between datasets are recognized; bank reports for monetary and banking statistics are used for monetary statistics and banking transactions in the balance of payments. - Regular economic analysis enhances data quality and results in articles in the Statistical Bulletin and quarterly notes to the Board of Directors. - Regular data consultations with the CBS are an important element of quality control. ### 0.4.2 Processes are in place to monitor the quality of the statistical program - Monthly quality indicators are provided to Statistics Department managers, focusing on response rates and timeliness among other indicators; corrective steps are taken when necessary. - The DNB compiles an internal quarterly quality report assessing quality indicators on balance of payments statistics used by the ECB and EUROSTAT. - Annual submission: the DNB completes and returns a partially pre-filled quality report to EUROSTAT. - EUROSTAT has produced pilot versions of its comprehensive quality report named Quality of BoP Statistics in the EU; starting with the new production cycle, EUROSTAT will publish the Quality Report and present conclusions to the European Parliament. - The ECB has a quality monitoring system and produces an annual quality report Quality assessment of the country contributions to the euro area balance of payments and international investment position. - The DNB advocates more extensive comparisons between EU countries’ balance of payments quality and compiling processes in ECB’s and EUROSTAT’s quality reports and aims to fulfill all requirements imposed by ECB and EUROSTAT. ### 0.4.3 Processes are in place to deal with quality considerations in planning the statistical program - The annual work program explicitly takes quality issues into account. - Quality issues incorporated into planning arise from findings in quality reports and from user feedback. ### 1. Assurances of integrity #### 1.1 Professionalism - Legal and institutional foundations: - Section 108 of the Treaty establishing the European Union (EU) and Section 7 of the ESCB-Statutes regulate independence of central banks. - Section 2 of the External Financial Relations Act: the Minister of Finance may give general directions to the DNB, which the DNB shall observe only to the extent these do not conflict with the EU Treaty. - Section 8 of the Statistics Act describes the independence of the Director-General of the CBS. - The DNB’s Statistics Department has an independent position within the DNB; decisions on reporting guidelines and report forms do not have to be submitted to the Board of Directors. - Recruitment is competence-based; statistical functions require sufficient statistical knowledge. - Training and international engagement: - On-the-job training in methodology and compilation methods. - DNB nominates staff for balance of payments seminars, workshops or courses (example: Balance of Payments Methodology course offered by the IMF Institute). - DNB staff participate in BOPTEG and DITEG working groups and in the design of the Coordinated Portfolio Investment Survey and the Coordinated Direct Investment Survey organized by the IMF. - DNB organizes seminars on balance of payments methodology with staff as teachers. - Professional culture: - DNB encourages research, analysis, articles, and international conferences (example: conference on data collection by central banks in 2006). - DNB runs a project offering its internet data collection system “e-Line DNB” for a fee to other European institutions. - Commitment to standards: - DNB is fully committed to the IMF’s Special Data Dissemination Standard (SDDS) and the “Public commitment with respect to the ESCB’s statistical function.” #### 1.1.2 Source and dissemination decisions - Choices of data sources are determined by international data requirements, available sources, and reporting burden considerations. - Decisions to disseminate data and timing of dissemination are based solely on statistical considerations, with publication timeliness largely influenced by international organizations. - Format of balance of payments tables in the Statistical Bulletin is largely based on BPM5; user wishes are considered for specific dissemination aspects. #### 1.1.3 Right to comment on misuse - The DNB promotes correct interpretation via frequent articles in the quarterly Statistical Bulletin; new tables are usually accompanied by an article and extensive explanatory notes. - The DNB’s statistics website www.statistics.dnb.nl contains a list of “most frequently asked questions.” - The public can contact the Statistics Department via the e-mail address on the website with usual responses within 48 hours. - Journalists are in close contact with DNB’s Communication Department; the DNB monitors media coverage and can react quickly through its Communication Department. ### 1.2 Transparency #### 1.2.1 Terms and conditions availability - The External Financial Relations Act 1994 is published in Dutch in De Staatscourant; a non-authoritative English translation is also available and the public can obtain copies from the DNB. - DNB publications contain references to where more information can be found (example: list of articles in the Statistical Bulletin); the text has been published on the DNB website. #### 1.2.2 Internal governmental access prior to release - There is no access to the data before they are released to the public by the Statistics Department. #### 1.2.3 Identification of statistical products - DNB’s statistical products display the name and logo of the DNB. - DNB allows redissemination of its statistics for educational and noncommercial purposes if the source is mentioned. #### 1.2.4 Advance notice of major changes - Changes in methodology are usually described in articles in the Statistical Bulletin upon implementation. - In 2003, following the introduction of the new balance of payments framework, a special edition of the Statistical Bulletin was published. - Major methodological changes are generally implemented after extensive discussions in ECB and EUROSTAT fora and in close collaboration with the CBS. - Direct reporters were informed in advance of the changes implemented in 2003 and were extensively consulted about the structure and design of new report forms. - Consultations with representative bank organizations began years before the introduction of the new reporting system. - The banks benefited from the transition from ITRS to a direct reporting system and were cooperative in designing the new reporting system for securities transactions and stocks based on security-by-security reporting, with custodians playing a key role. - Banks informed customers that the obligation to complete report forms on outgoing and incoming payments would be abolished by May 1, 2003. - Enterprises designated as direct reporters were invited to informative meetings at DNB premises; large or representative enterprises were visited by DNB staff for consultation. - Implementation of the new reporting system included extensive support such as on-the-spot installation of the reporting software E-line used for reporting data to the DNB. ### 1.3 Ethical standards #### 1.3.1 Staff behavior guidelines - The DNB’s Code of Conduct outlines correct behavior with integrity at its core; staff must act with integrity, carefulness and discretion, avoid indecent behavior, treat others respectfully, and maintain high standards. - Guidelines address unwanted behavior and include a separate guideline dealing with whistle-blowers. - Integrity is a core competency and is evaluated in annual performance reviews. - Compliance regulation governs private investment transactions by DNB staff to avoid insider knowledge use and appearances thereof: - As a general rule, DNB staff are not allowed to invest in bonds, shares, or other financial instruments issued by institutions under its supervision. - All staff must submit an overview of their investments annually. - The compliance officer guards the regulation and reports directly to the Board of Directors. - The Code of Conduct and compliance regulation were widely publicized when issued and are consultable on the DNB website. - Integrity aspects are discussed in bank-wide meetings; staff are reminded of compliance regulation annually when submitting investment report forms. - Staff are screened upon commencement of employment and when changing jobs between departments. ### 2. Methodological soundness #### 2.1 Concepts and definitions - The Dutch balance of payments closely follows internationally accepted standards and guidelines; BPM5 was the point of departure when designing the new direct reporting system. - The DNB communicates closely with international organizations (IMF, ECB, EUROSTAT, OECD) regarding BPM5 implementation. - Specific conformities with BPM5: - Current, capital, and financial accounts are defined according to BPM5; the current account balance is equal (with sign reversed) to the net capital and financial account balance. - A double-entry system is applied; net residual is embedded in errors and omissions. - A clear distinction is made between the income component and the goods and services components. - The financial account records transactions in assets and transactions in liabilities separately. - The directional principle is applied in recording foreign direct investment. - Data are split into twelve categories under five main headings: - Current account: goods, services, income and current transfers; - Capital account: capital transfers and acquisition/disposal of nonproduced nonfinancial assets; - Financial account (excluding official reserves): direct investment, portfolio investment, financial derivatives and other capital; - Reserve assets; - Errors & omissions. - Residency and special cases: - Resident institutional units are defined as units with a center of economic interest in the Netherlands. - For construction enterprises operating as unincorporated establishments outside the Netherlands, the one-year guideline is applied flexibly along with other considerations (examples: maintain a complete set of accounts, pay income taxes to the host country). - The one-year guideline is applied similarly to construction in the Netherlands. - Residence of enterprises operating in free trade zones is recorded following BPM5 residency criteria. - Special Financial Institutions (SFIs) are considered residents of the Netherlands; because SFIs significantly affect the balance of payments, DNB publishes both statements including and excluding SFIs. - International organizations and supranational authorities are not considered residents of the Netherlands and are distinguished separately (they receive their own “country” code). - Units of general government established abroad (e.g., Dutch embassies, military bases) are considered residents of the Netherlands, and vice versa. - The one-year principle is generally applied to people no longer considered Dutch residents for BoP purposes (e.g., intent to work abroad for more than one year). - Recording principles and practice: - Transactions are recorded when a change in ownership occurs conceptually. - In practice, transactions in goods are recorded at customs clearing using trade statistics; services are recorded when invoiced. - For portfolio investment and financial derivatives, preference is given to record transactions on the trade date. - The 10 percent rule for distinguishing direct investment from portfolio investment is not applied mechanically; in the Netherlands, direct investment is determined on the basis of effective control (a treatment allowed by BPM5), which does not lead to significant deviations in practice. #### 2.2 Scope - In principle, all resident-nonresident transactions specified in BPM5 are covered, with noted exceptions: - Debt forgiveness of sectors other than the government, as part of capital transfers, is not covered. - No data are collected on reinvested income from investments in collective investment institutions nor on transactions of private household accounts held abroad. - Illegal activities are not recorded in goods. - No distinction is made between trade in non-monetary gold held as a store of value or for other purposes. - Loan repayments for all sectors are not entered when due, but when they are actually made. #### 2.3 Classification/sectorization - Institutional units are classified and attributed to relevant sectors according to BPM5. - Government guaranteed external debt transactions are attributed to the institutional sector of the borrower; public enterprise claims and liabilities are attributed to ‘other sectors.’ - Treatment of specific transactions: - Short-term loans and currency and deposits transactions of the banking sector are not separately identified in some sources; Money and Banking Statistics distinguish only between short-term and long-term liabilities. - Borrowing and lending between direct investors and direct investment enterprises are classified under Foreign Direct Investment (FDI), except when transactions are between affiliated monetary financial institutions. - Long-term construction projects are classified under foreign direct investment. - Transactions in goods and services by government entities abroad are classified under ‘government services not-included-elsewhere.’ - Short-term and long-term attribution in the other investment component is made according to the original maturity of the financial instrument. - Deviations from international guidelines are discussed in international working groups and kept under close review. *Content derived from _cr0806 - 0.4 Other quality management* ### 2.4 Basis for recording ### _cr0806 - 2.4 Basis for recording ### Valuation and measurement basis - Market prices are used to value flows and stocks. - Imports and exports are converted into f.o.b. prices. - Monetary gold is valued at market prices, although on a quarterly basis and not at the end of the reporting period. - Financial instruments traded on markets are mostly valued by directly using the prices from the DNB’s securities database (DEBBI), of which market data are provided by a commercial data provider. - Non-tradable financial instruments are valued at nominal value. - Direct investment transactions and stocks must be reported at market value, but respondents may fall back on nominal value or historic costs if no information on market value is available in the financial administration. - In banking statistics, transaction estimates are derived from stock data; the value of the transactions excludes valuation and other changes. - If no actual market prices are available, substitute measures are taken (e.g., value of goods in barter trade determined by customs). - No corrections are made for the valuation of transactions between affiliated enterprises. - Respondents must submit reports in thousands of Euros and should convert foreign currency transactions using the actual exchange rate or the reference rate on the transaction day. - When net changes in foreign currency deposits/accounts are reported, the average exchange rate during the reporting period can be used; respondents can use exchange rates published on the DNB website, updated daily. - Banking transactions in the financial account: end-of-month positions are valued in original currency; changes of position are calculated in the original currency and converted into euro using average exchange rates for the period concerned. ### Time of recording and accruals - Recording is done on an accrual basis. - The governing principle for transactions and their time of recording is change of ownership. - Transactions in goods are recorded at the time the goods pass the border (harmonized with trade statistics). - Transactions in services are recorded when invoiced. - Interest on financial instruments is recorded on an accrual basis. - Dividends are recorded on the dates declared payable; reinvested earnings on direct investment are attributed to the periods when earned. - Loans are entered at the moment of actual disbursement and payments; loan repayments are recorded when actually made (not when due). - For Special Financial Institutions (SFIs), all income is recorded on a cash basis. ### Grossing and netting procedures - Current and capital account transactions are recorded on a gross basis. - DNB collects financial account information mainly on a gross basis, but actual recording in the financial account is done on a net basis, separately for assets and liabilities. - The directional principle in direct investment is applied; net flows are automatically calculated by the compilation system. ### Source data and institutional responsibilities - DNB compiles the balance of payments statement of the Netherlands; since April 2003 tasks are allocated between DNB and CBS. - CBS collects the greater part of the data for the current and capital account (excluding investment income) and DNB for the financial account. - CBS provides goods account data comprising intra- and extra-EU trade, adjusted for the c.i.f./f.o.b margin; after Intrastat adoption, quality of trade statistics is generally considered lower and CBS’ National Accounts Department makes corrections adopted by DNB. - As of the second quarter of 2003, CBS provides quarterly data on international trade in services with limited breakdown compared with BPM5; the more detailed breakdown is compiled on an annual basis. - Starting in 2006, the reporting population for the CBS quarterly services survey comprises 300 large enterprises and a sample of 5000 enterprises from small and medium-sized enterprises; the latter provide reports with less detail and results are grossed up to a national level. - CBS collects travel data using a hybrid system: travel debits from the continuous holiday survey and travel credits from the lodging and accommodation survey. - CBS compiles quarterly data on compensation of employees and on some items of current and capital transfers, both partly based on estimates; some estimates are subject to discussion between DNB and CBS. - DNB collects fully reconciled financial transactions and positions, and related income, monthly via its direct reporting system explicitly set up in 2003 for balance of payments statistics; coverage was recently extended to some domestic transactions (e.g., for financial accounts). - The DNB survey system provides a full coverage of financial account transactions and the IIP; data collected by CBS and DNB together generally provide full coverage of the current and capital account. ### Features of the DNB reporting system - Cross-border transactions and positions are mostly obtained directly from residents through direct reporting, with intermediary reporting by banks and custodians for derivatives and portfolio investment to enhance efficiency. - Collected information consists of aggregated transactions and positions as recorded in reporting agents’ business administration (not individual settlements). - Reporting population is largely confined to representative samples. - Reporting requirements are expressed in 16 reporting profiles covering main data for the IIP and external debt (stocks, including accrued interest), and for the financial and investment income accounts; breakdowns include country, sector and type of financial instrument. - Most reporting requirements include full reconciliation between flows and stocks including accrued interest; the “reconciliation model” requires all changes between opening and closing positions to be explained and broken down into gross transactions, changes in market prices, exchange rate changes and other changes (e.g., write-offs). - Portfolio investments are almost completely reported on a security-by-security basis using ISIN codes; methodology is considered best practice by the ECB. - Most reports (stocks and flows) are transmitted monthly; some data (stocks of equity participations, real estate, related profits and losses and reinvested earnings) are reported on an annual basis only. ### Coverage, samples, and grossing-up - Direct investment and other financial transactions of MFIs are integrated in reports for money and banking statistics; reporting requirements extended to derive flows and include related investment income. - Data on reserve assets are provided by DNB accounting and securities departments using the direct reporting system. - Important government institutions report monthly to DNB; estimates for the rest of government are taken from CBS. - The 16-profile reporting samples comprise around 2,100 reporting agents drawn to cover around 95 percent of total transactions and positions of the complete population. - DNB maintains its own business register as basis for sample surveys; for nonfinancial and other financial institutions this is not a complete business register and cannot be cross-checked with the total population. - A scouting procedure detects new important players to include them in the survey; reporters are exempted when positions fall below a threshold. - A project has started to investigate harmonizing DNB’s register with CBS complete business register and integrating surveys for nonfinancial institutions. - Registers for insurance companies, pension funds, banks, and investment funds are complete and sample populations are regularly reviewed. - Every two years a benchmark study determines the sample of SFIs involving all those known by DNB at that moment; data for entities not included in the sample are estimated through grossing-up procedures (notably for investment income in the balance of payments and stocks in the IIP). - For nonfinancial institutions, DNB does not yet apply a grossing-up procedure for financial account transactions in the balance of payments; for positions of nonfinancial institutions, grossing-up factors are based on historical data from the pre-2003 system (based on an ITRS). - For insurance companies and pension funds, a yearly grossing-up procedure in terms of percentage is used after benchmarking with supervisory data; for MFIs a similar system is used with monetary information reported by all banks determining sample population and grossing-up factors. - For missing SFIs new fixed grossing-up figures are determined after the benchmark study. ### Data sources and special inputs - Data on goods transactions: supplied by CBS using trade statistics; extra-EU trade fully covered; intra-EU trade based on a sample covering about 98 percent of transactions. - DNB receives monthly administrative data from the Land Registry on purchases and sales of Dutch real estate by nonresidents with full geographical detail. - CBS uses administrative sources (customs, VAT register, foreign visitors) as input for various current account estimates; migration statistics are used to estimate migrants’ transfers. - Financial press is monitored, with a “MeDIa file” created to organize information on mergers and acquisitions by month, resident entity and account manager. - DNB participates actively in international working groups (e.g., ECB Working Group on External Statistics and EUROSTAT’s Balance of Payments Working Group) and sometimes takes a leading role (e.g., formulating new OECD benchmark definitions for direct investment). ### Component-specific source and compilation methods - Goods: External trade statistics compiled by CBS from customs declarations and Intrastat for extra- and intra-EU trade; data available within six weeks; both intra-EU and extra-EU trade compiled according to the country-of-consignment principle; c.i.f./f.o.b. margin calculated by CBS through a particular f.o.b delivery terms method using customs declarations as proxy and adjusted for average distances for intra-EU margins. - Services: Collected quarterly by CBS; large entities report full detail and geography; small and medium sized enterprises report with less detail and results are grossed up; monthly data on transport, travel and other are extrapolated from historical data by an ARIMA model and quarterly data distributed over months by a similar method. - Income: Investment income collected through DNB’s direct reporting system as part of the reconciliation model; dividends recorded when declared; all interest recorded on an accrual basis. - Profits on FDI equity participations are collected annually; reinvested earnings for the current year are calculated as the difference between the average of profits over the previous three years and reported declared dividends at the level of individual reporting agents; estimates are revised once actual profit data are collected via annual reports submitted within four months after the end of the financial year. - Income on direct investment debt and all other interest-bearing debt is reported on an accrual basis. - Income on real estate liabilities is estimated by applying a gross yield on reported stocks using a yield published by ROZ (Raad voor Onroerende Zaken). - No difference in treatment between normal shares and shares in collective investment institutions: distributed income from shares in collective investment institutions is treated as dividend income and recorded when paid. - Quarterly data on compensation of employees estimated by CBS from several labor statistics. - Current transfers: Government current transfers collected by DNB through monthly reports from a limited number of government agencies; quarterly data on social security and other current transfers supplied by CBS using various sources; monthly data for current and previous months estimated similarly to trade in services. - Capital account: Capital transfers from government collected through monthly direct reports from limited government agencies and supplemented by a quarterly EU-report on capital transfers from the EU; migrants’ transfers related to portfolio investment collected through monthly direct reports of custodian banks; quarterly estimates for inheritances (based on inheritance tax) and change of residency of bank accounts (based on emigrant and immigrant numbers); private sector non-produced, nonfinancial assets collected by CBS as part of quarterly international trade in services survey; monthly data for current and previous months estimated as for trade in services. - Direct investment: Collected through the reconciliation model with information on equity investments, equity-related investments, and various inter-company assets and liabilities; distinction made between long-term and short-term loans, financial leases, repurchase agreements, long-term trade credits, inter-company current accounts, and other assets and liabilities. - Direct investment includes the initial transaction and all subsequent transactions between investor and enterprise and among affiliates. - Reporting agents in the sample must submit annual reports on stocks of equity participations within four months after the end of their financial year; stocks of loans and other investment capital collected monthly. - Geographical breakdowns based on residency of the direct cross-border debtor or creditor (first-shot principle). - Financial derivatives contracted between affiliates (excluding MFI sector) are not identified separately and are included in financial derivatives. - Direct equity investment and other investments of MFIs integrated in monthly money and banking statistics. - Banks report direct investment equity stocks at market values, revaluations and profits paid and retained as part of annual reports on foreign affiliates collected for prudential purposes; for EUROSTAT and ECB an additional breakdown of equity stocks by valuation in market and book value is made manually. - Because almost all reporters report on net asset value (book value), a book/market ratio is applied to estimate market value. - Data on real estate within the Netherlands are based on Dutch Land Registry information. - Portfolio investment: Assets collected through the general direct reporting system, except holdings of households which are collected from custodians. - Liabilities collected from: (a) custodians, (b) the local central securities depository, (c) resident issuers and (d) resident holders — referred to as the “mixed approach for portfolio liabilities”. *Source: _cr0806 - 2.4 Basis for recording* ### Chapter IV of the Task Force on Portfolio Investment Collection Systems’ Final Report of ### Chapter IV of the Task Force on Portfolio Investment Collection Systems’ Final Report of June 2002 ### Portfolio investment collection and processing - Data collected from reporting agents relate to economic ownership, except custodians and the central securities depository, which relate to legal ownership. - Both portfolio assets and liabilities are compiled on the basis of economic ownership. - Cross border security lending is not collected because an investigation proved that its size is negligible. - Reporting by ISIN code is not compulsory, although practically all of the data are reported in this way. - When investments are reported without the ISIN code, reporting agents must submit a full reconciliation of stocks, flows, and revaluation, including interest accrued for debt, on a monthly basis. - Reporters must submit all data classified by country and sector of the issuer and by type of instrument (shares, bonds and notes and money market instruments). - When security-by-security reporting is used: - Stocks are reported as number of shares for equity or nominal value for debt. - The compilation system calculates market value of stocks, price and exchange rate changes, and interest accrued, and classifies data by country and sector of the issuer. - Transformation of data reported by ISIN code is based on a securities database updated daily from a commercial data provider; the database contains: - ISIN code and other security identification codes, - type of security by 1995 ESA instrument classification, - outstanding capital (number and value of shares/debt), - issue date and price, - monthly price information including its source, - interest (fixed/floating, current coupon rate), - issuer (name, sector, country of residence). - As from April 2006 portfolio investment assets are broken down by issuer sector. ### Financial derivatives - Data collected through the general direct reporting system (the reconciliation model); part collected through intermediary reports from clearing organizations for pragmatic reasons. - Data sources: - Contracts traded directly on foreign exchanges and OTC contracts: collected directly from reporting agents. - Contracts traded on foreign exchanges but executed through domestic banks and clearing members: collected from those banks and clearing members. - Contracts executed by nonresidents on the domestic derivative exchange: collected from resident banks and clearing members. - Reporting agents must submit a full reconciliation of stocks, flows, and revaluation on a monthly basis. - Revaluations do not need to be broken down into price and exchange rate changes. - Data are reported by instrument: - options (including warrants), - futures (variation margins), - forward rate agreements, - interest rate swaps (only swaps where no principals are exchanged), - cross-currency interest rate swaps (including other swaps), - outright forwards and foreign exchange swaps (forward legs only), - all other over the counter (OTC) contracts. - Geographical allocation: - Exchange-traded derivatives: country where the exchange is based, or for a contract traded on a Dutch exchange, the country of residency of the client. - OTC contracts: allocated to the country of the actual counterpart. - Transactions for assets and liabilities are collected separately, except for interest rate swaps where receipts are recorded as transactions in assets and payments as transactions in liabilities. ### Other investment - Data on other investments of other sectors and the DNB are collected through the general direct reporting system (reconciliation model). - Other investment account items broken down by: - long- and short-term loans, - financial leases, - repurchase agreements, - long-term trade credits, - current accounts, - other assets and liabilities. - Sector of foreign counterparts is requested on report forms for both assets and liabilities. - Other (and direct) investments of MFIs are integrated in monthly money and banking statistics. - Flow data on other investment are derived from monthly stock data on balance sheet information. - No data on short-term trade credits are collected in the survey system; all data for this item are estimated via an econometric model that: - relates supply of short-term trade credit (assets) to exports, - relates demand for short-term trade credit (liabilities) to imports, - effectively mimics an inventory process compiling current month trade credits plus declining percentages of previous months to account for redemptions. ### Reserve assets - Data on securities and financial derivatives collected through the general direct reporting system. - Data on monetary gold, receivables from the IMF, and currency and deposits are derived from the DNB’s monthly balance sheet, broken down by currency, country, and sector. - Valuation of gold at market prices is done on a quarterly basis. ### Reconciliation with merchandise trade and external debt consistency - Reconciliation of international merchandise trade data with balance of payments goods requires extensive coordination with trade statistics and rest-of-the-world account compilers; necessary adjustments are documented. - Some persistent inconsistencies between the balance of payments and the rest-of-the-world account are under investigation. - External debt data compiled by the DNB and derived from the same reconciliation model as the balance of payments are fully consistent with the international investment position and in line with BPM5 recommendations. ### Timeliness of source data - Timeliness mainly determined by international requirements of the ECB and EUROSTAT; DNB develops an annual calendar of transmission and production deadlines. - Deadlines agreed for collecting source data: - Monthly information on External Trade Statistics delivered by the CBS within six weeks. - Quarterly information on International Trade in Services delivered by the CBS within 12 weeks. - Quarterly information on compensation of employees and transfers delivered by the CBS within 12 weeks. - Monthly information on domestic real estate delivered by the Land Registry within 15 working days. - Monthly information on financial transactions and related income of the MFI sector delivered by the DNB’s Monetary and banking statistics department within one month. - Respondents must transmit report forms with monthly information on stocks, financial transactions, and related income within 15 working days. - When the monthly balance of payments statement is compiled after 25 working days, about 95 percent of the monthly reports has been received and processed. - Monthly information on financial transactions and related income on the DNB’s balance sheet is delivered by the Accounting department within one month. ### Assessment of source data and validation procedures - Source data are routinely assessed for coverage, sample error, response error, and non-sampling error; results are monitored to guide statistical processes. - The DNB’s reporting technique (e-Line) enforces clean input; macro-level assessments use a self-developed application “Sirius” to identify outliers, with micro-level follow-up and confirmation with respondents; records are maintained on confirmations. - Reports of the most important respondents are checked monthly. - Reported returns on financial assets and liabilities are compared with reported related income. - Balance of payments data are verified with external administrative sources where possible: - Harmonization with the Rest-of-the-World (RoW) account within national accounts through regular DNB–CBS consultations. - Bilateral banking data compiled by the Bank of International Settlements used to verify DNB data. - Material changes are incorporated through a recorded revision cycle scheduled according to ECB and EUROSTAT guidelines; the size of revisions is assessed systematically. - DNB assesses robustness of foreign acquisition of Dutch real estate data from the Land Registry both manually and automatically via outlier analysis; requests more detailed information for remarkable transactions or outliers. ### Statistical techniques and adjustments - Data on stocks, flows, and revaluations are collected simultaneously through monthly direct reports, enabling consistency checks between flows, stocks, price changes, and exchange rate changes. - Processing errors are rare; respondents deliver clean inputs and reports are automatically processed. System changes are extensively tested. - Monthly design prevents discrepancies between monthly, quarterly, and annual data; quarterly and annual data are always based on underlying months. - Adjustments to unit records are made only when reported data are clearly inaccurate; reporters are asked to transmit revised reports which overwrite manual adjustments at revision time. Manual adjustments are documented and coded. - Macro-level adjustments are made to ensure consistency with RoW accounts and are documented; the system allows analysis of original, revised, and revision data separately. - General nonresponse for transactions is imputed based on average data previously reported by the respondent. - Specific adjustments/estimations: - Goods: Transit trade excluded; all imports and exports valued f.o.b. - Services: Until quarterly statistics from CBS are available, monthly estimations use an ARIMA-model. - Income: Income on debt securities calculated on an accrual basis when portfolio investments are reported security-by-security using securities database. Profits from direct investment collected only annually; DNB makes preliminary estimates on retained profits using historical profits and reported declared dividends. - Current transfers: Until quarterly statistics from CBS, estimations made with an ARIMA-model. Workers remittances estimated by the DNB as a fixed percentage (18,8 percent) of total other transfers. CBS and DNB are working to improve these estimates (mirror statistics, money transfer institutions). - Capital account: Capital transfers estimated with an ARIMA-model until EUROSTAT European Commission accounts provide breakdown. - Direct investment: Preliminary estimates of retained profits made by DNB based on a moving average of previous profits and currently reported dividends. - Portfolio investment: MFI sector data compared with Money and Banking statistics and harmonized if possible. - Other investment: Deposits of Dutch citizens at foreign banks verified using BIS data and adjusted if possible. - Reserve assets: None (no adjustments noted). - Other procedures: - CBS estimates the c.i.f./f.o.b. factor annually via a sample survey of transportation enterprises. - No partner-country data currently used to adjust trade data; single-flow reporting model under discussion in international working groups. - Securities transactions in secondary markets are not converted to a gross basis by adjusting for fees and commissions of securities dealers. - Illegal activities are not recorded as such. - No seasonal adjustment of the balance of payments is performed. ### Assessment and validation of intermediate results and statistical outputs - Consistency with national accounts data is a key quality check for all balance of payments components. - For investment income components, monthly rates of return derived from stock data are used to check for irregularities. - Capital account corrections are made quarterly for the breakdown of transfers to European Union institutions into current and capital transfers. - Monthly direct reports collect stocks, flows, revaluations and other changes simultaneously, enabling full reconciliation between flows, stocks, price changes and exchange rate changes. - Annual fully reconciled direct reports on direct investment equity are used to cross-check monthly capital flows. - Data are compared with freely available external data; DNB has initiated bilateral asymmetry investigations with partner countries (U.K., Luxembourg) supported by EUROSTAT. - Portfolio investment comparisons use statistics on emissions of securities compiled by the Statistics Department and IMF CPIS survey results to verify portfolio liabilities. - Issues of government securities are checked with data from the Dutch State Treasury Agency. - Other investment completeness is verified with BIS data. - Reserve assets monthly securities reports are cross-checked with administrative sources (accounting department). - Statistical discrepancies and potential problems: - CBS primarily responsible for quality of a considerable part of the current account; supplier responsibility emphasized. - Consultative structures exist for assessing intermediate data quality. - Reported financial flows are reconciled with stock changes in external debt and the international investment position as part of the direct reporting system. - Investment income assessed relative to corresponding stock data during monthly compilation and after quarterly revisions; economic analyses feed into quarterly reports to the Board and articles in the Statistical Bulletin. - Monthly monitoring of errors and omissions in total and by sector; findings can induce broader studies. - Errors and omissions information forms part of quality indicators provided to management each quarter. - Bilateral discrepancies may prompt ECB or EUROSTAT task forces; DNB has begun bilateral comparisons with the United Kingdom and Luxembourg to identify and investigate direct investment differences. - BIS Locational Banking Statistics used for comparisons of reported data. *Source: Chapter IV of the Task Force on Portfolio Investment Collection Systems’ Final Report of June 2002 (excerpt).* ### 3.5 Revision studies ### _cr0806 - 3.5 Revision studies ### Revision studies and internal use - Studies and analyses of revisions are carried out routinely and used internally to inform statistical processes (see also 4.3.3). - Due to strict timetables for the delivery of monthly balance of payments statistics, revisions cannot be avoided. - Some reporters will exceed deadlines or have to send again the report. - Methodology compels compilers to make initial estimates, for instance for reinvested earnings. - Monitoring of revisions is considered to be a normal part of the current compilation process. - Studies of the magnitude and direction of revisions over a given period of time are part of the set of quality indicators that the DNB management receives, as well as ECB's and EUROSTAT's quality reports. - Since the introduction of the new reporting system in 2003, longer time series have become available and possibilities for further refinement are being considered. - The DNB has acknowledged the need for a revision analysis. However, the new direct reporting system (Directe Rapportage, or DRA) is still so recent that sufficiently long time series are not yet available. ### Serviceability — periodicity and timeliness - Periodicity - Balance of payments statistics are disseminated with a quarterly frequency, in accordance with SDDS. - Timeliness - The timeliness of balance of payments data meet SDDS requirements. - The data are published according to the ECB timetable, usually within 32 working days after the end of the reference quarter for all prescribed components. ### Consistency (within dataset and over time) - Internal consistency - Main components classified, as far as possible, according to BPM5. - Concepts, definitions, and classifications for monthly, quarterly and annual statistics are the same. - Quarterly and annual data are derived from monthly data; the sum of the quarterly data and the annual data are consistent. - Financial transactions data are reconciled with changes in the international investment position; reconciliation information is included regularly in articles in the Statistical Bulletin. - A new table containing a full reconciliation of the main items of the financial account will be included in the quarterly Statistical Bulletin beginning with the December 2007 issue. - The net errors and omissions item has occasionally been large, and tends to be negative; this is a continuous reason for research and further analysis. - Consistency over time - Time series in the tables of the Statistical Bulletin cover annual data for the last five years and quarterly data for the last five quarters. - The Statistical Bulletin references the website http://www.statistics.dnb.nl where consistent annual and quarterly time series back to1982 are available. - When changes in source data or methodology occur, historical series are reconstructed according to arrangements within the ESCB. - Methodological notes and special issues (e.g., May 2003 special edition) identify and explain main breaks and discontinuities and adjustments made to maintain consistency. - Consistency with other datasets - Aim is to obtain consistent balance of payments and national accounts statistics; temporary inconsistencies can occur due to different revision cycles. - Balance of payments trade in goods is reconciled with international merchandise trade data via the “EUROSTAT reconciliation table.” - Banking sector transactions are regularly checked for consistency with money and banking statistics; sometimes adjustments cause small inconsistencies (one reason is different treatment of financial derivatives). - Balance of payments components comprising external debt data are consistent with corresponding debt stocks because the system is based on a full reconciliation of stocks and flows. ### Revision policy and practice - Schedule and transparency - Balance of payments data are preliminary when first released and are subject to revision according to the ECB timetable. - There is no information to the public on regular revisions. This revision cycle is predetermined and stable from year to year. - Revised quarterly and annual data are published in the Statistical Bulletin and on the DNB website, but only the date of first publication is made known to the public by means of a release calendar. - There is no documentation of regular revisions in the publications or in the database. - In case of a large revision outside the regular cycle, the public will be informed (common practice is to prepare an article or a box in the Statistical Bulletin). - Identification of revised data - Revised data are not identified in DNB’s statistical publications. - The preliminary status of quarterly IIP data, which are partly based on estimates pending annual data reporting, is indicated in explanations to the statistical tables. - Public analyses and internal analysis - The ECB and EUROSTAT are informed about major revisions through regular procedures, including exchange of e-mails. - The general public is informed about major revisions through articles in the Statistical Bulletin, which assess and explain these revisions. - A detailed analysis of differences between revised and preliminary data is only performed for internal use, as part of the management information. ### Accessibility — data and metadata - Data presentation and breakdowns - The DNB publishes in its Statistical Bulletin a full set of detailed time series of the balance of payments, external debt, and international investment position. - Data are disseminated in millions of euros and cover the Dutch economy excluding Special Financial Institutions (SFIs). Data on the BOP and IIP are also available including the SFIs. - Breakdowns follow BPM5 standard components and include: - Goods: exports and imports of goods; - Services: exports and imports of services; - Income: payments and receipts of labor and of capital income, both available on a gross basis; - Current transfers: payments and receipts of current transfers to and from the government and other sectors; - Direct investments (equity capital, reinvested earnings, other capital; with geographical breakdown); - Portfolio investment: transactions in foreign and Dutch securities with nonresidents (geographical breakdown), transactions in non-EMU securities (breakdown by sector of the holder); - Financial derivatives and other investment: trade credits; government, bank and other loans; currency and deposits. - The Dutch balance of payments follows BPM5 functional classification, but there is no dissemination of detailed breakdown for some services since 2003. - Dissemination media and formats - Long time series covering quarterly and annual data are disseminated in an easily downloadable MS Excel format on the website. - The Statistical Bulletin in Dutch is available free of charge by subscription; an electronic copy can be obtained at the DNB website. - A press release containing some headlines is published with the presentation of the Statistical Bulletin; the press receives a pre-publication under embargo. - It is foreseen to issue press notices more frequently in the near future as soon as important new statistical information becomes available. - Release practices and access - A quarter-ahead advance release calendar giving precise release dates is disseminated on the DNB website (http://www.statistics.dnb.nl/index.cgi?lang=uk&todo=PubKal). The Statistical Bulletin contains a note to bring attention to the advance release calendar. - Statistics are released punctually. - Only the ECB and the CBS receive monthly balance of payments data. These data are not disseminated to the public at large. - The sum of the three months in a quarter is made available simultaneously to all interested parties by posting the data on the DNB website, one day after data on the last month of that quarter are transmitted to the ECB. The same data are published in the Statistical Bulletin. - The press is briefed in advance of the content of the Statistical Bulletin, but embargoes are imposed. - Non-routine dissemination - Data on the financial account and investment income are disseminated on request, subject to confidentiality checks. - Customized tabulations can be provided free of charge via a form on the statistics part of the DNB website. - Questions about current or capital account statistics compiled by the CBS are generally forwarded to the CBS. - Metadata accessibility - Explanatory notes on methodology are included in the Statistical Bulletin and in the tables on the website. - The head page of the statistics website (http://www.statistics.dnb.nl) references the IMF Dissemination Standards Bulletin Board; SDDS metadata are reviewed and updated quarterly. - An up-to-date document with metadata on the Dutch and European Union Balance of Payments is available on the ECB-website. - Detailed information on sources and characteristics of the survey system is available in the May 2003 special edition of the Statistical Bulletin. - The website includes a Frequently Asked Questions section for general audiences; more specialized information is in articles in the Statistical Bulletin and on the SDDS website. - Assistance to users - The DNB website provides detailed contact information for balance of payments data; the contact person is responsible for answering the question within two days. - Assistance is monitored and reviewed regularly; frequently asked questions are added to the FAQ. - The last pages of every Statistical Bulletin contain a list of all published articles and special editions since 1999; these can be downloaded from the website. - All statistical products and services are provided free of charge. ### Key recommendations (as listed) - Classify the free trade zones as part of goods, as recommended in BPM5. - Disseminate data on services with the recommended breakdown in BPM5. - With a view to improve vulnerability analysis and in line with BPM5, consider recording loans repayments when due. - Avoid the market valuation of gold positions on a quarterly basis and follow BPM5 guidelines for the application of market prices at the end of the reporting period. - Pursue plans to provide public information on regular revisions and identify the status of data in publications. *Source: _cr0806 - 3.5 Revision studies (IMF staff report content provided above).* ### Appendix II. Data Quality Assessment Framework—Generic Framework ### Appendix II. Data Quality Assessment Framework—Generic Framework (July 2003 Framework) ### Prerequisites of quality - 0.1 Legal and institutional environment—The environment is supportive of statistics. - 0.1.1 The responsibility for collecting, processing, and disseminating the statistics is clearly specified. - 0.1.2 Data sharing and coordination among data-producing agencies are adequate. - 0.1.3 Individual reporters’ data are to be kept confidential and used for statistical purposes only. - 0.1.4 Statistical reporting is ensured through legal mandate and/or measures to encourage response. - 0.2 Resources—Resources are commensurate with needs of statistical programs. - 0.2.1 Staff, facilities, computing resources, and financing are commensurate with statistical programs. - 0.2.2 Measures to ensure efficient use of resources are implemented. - 0.3 Relevance—Statistics cover relevant information on the subject field. - 0.3.1 The relevance and practical utility of existing statistics in meeting users’ needs are monitored. - 0.4 Other quality management—Quality is a cornerstone of statistical work. - 0.4.1 Processes are in place to focus on quality. - 0.4.2 Processes are in place to monitor the quality of the statistical program. - 0.4.3 Processes are in place to deal with quality considerations in planning the statistical program. ### Assurances of integrity - 1.1 Professionalism—Statistical policies and practices are guided by professional principles. - 1.1.1 Statistics are produced on an impartial basis. - 1.1.2 Choices of sources and statistical techniques, as well as decisions about dissemination, are informed solely by statistical considerations. - 1.1.3 The appropriate statistical entity is entitled to comment on erroneous interpretation and misuse of statistics. - 1.2 Transparency—Statistical policies and practices are transparent. - 1.2.1 The terms and conditions under which statistics are collected, processed, and disseminated are available to the public. - 1.2.2 Internal governmental access to statistics prior to their release is publicly identified. - 1.2.3 Products of statistical agencies/units are clearly identified as such. - 1.2.4 Advance notice is given of major changes in methodology, source data, and statistical techniques. - 1.3 Ethical standards—Policies and practices are guided by ethical standards. - 1.3.1 Guidelines for staff behavior are in place and are well known to the staff. ### Methodological soundness - 2.1 Concepts and definitions—Concepts and definitions used are in accord with internationally accepted statistical frameworks. - 2.1.1 The overall structure in terms of concepts and definitions follows internationally accepted standards, guidelines, or good practices. - 2.2 Scope—The scope is in accord with internationally accepted standards, guidelines, or good practices. - 2.2.1 The scope is broadly consistent with internationally accepted standards, guidelines, or good practices. - 2.3 Classification/sectorization—Classification and sectorization systems are in accord with internationally accepted standards, guidelines, or good practices. - 2.3.1 Classification/sectorization systems used are broadly consistent with internationally accepted standards, guidelines, or good practices. - 2.4 Basis for recording—Flows and stocks are valued and recorded according to internationally accepted standards, guidelines, or good practices. - 2.4.1 Market prices are used to value flows and stocks. - 2.4.2 Recording is done on an accrual basis. - 2.4.3 Grossing/netting procedures are broadly consistent with internationally accepted standards, guidelines, or good practices. ### Accuracy and reliability - 3.1 Source data—Source data available provide an adequate basis to compile statistics. - 3.1.1 Source data are obtained from comprehensive data collection programs that take into account country-specific conditions. - 3.1.2 Source data reasonably approximate the definitions, scope, classifications, valuation, and time of recording required. - 3.1.3 Source data are timely. - 3.2 Assessment of source data—Source data are regularly assessed. - 3.2.1 Source data—including censuses, sample surveys, and administrative records—are routinely assessed, e.g., for coverage, sample error, response error, and nonsampling error; the results of the assessments are monitored and made available to guide statistical processes. - 3.3 Statistical techniques—Statistical techniques employed conform to sound statistical procedures. - 3.3.1 Data compilation employs sound statistical techniques to deal with data sources. - 3.3.2 Other statistical procedures (e.g., data adjustments and transformations, and statistical analysis) employ sound statistical techniques. - 3.4 Assessment and validation of intermediate data and statistical outputs—Intermediate results and statistical outputs are regularly assessed and validated. - 3.4.1 Intermediate results are validated against other information, where applicable. - 3.4.2 Statistical discrepancies in intermediate data are assessed and investigated. - 3.4.3 Statistical discrepancies and other potential indicators or problems in statistical outputs are investigated. - 3.5 Revision studies—Revisions, as a gauge of reliability, are tracked and mined for the information they may provide. - 3.5.1 Studies and analyses of revisions are carried out routinely and used internally to inform statistical processes (see also 4.3.3). ### Serviceability - 4.1 Periodicity and timeliness—Periodicity and timeliness follow internationally accepted dissemination standards. - 4.1.1 Periodicity follows dissemination standards. - 4.1.2 Timeliness follows dissemination standards. - 4.2 Consistency—Statistics are consistent within the dataset, over time, and with major datasets. - 4.2.1 Statistics are consistent within the dataset. - 4.2.2 Statistics are consistent or reconcilable over a reasonable period of time. - 4.2.3 Statistics are consistent or reconcilable with those obtained through other data sources and/or statistical frameworks. - 4.3 Revision policy and practice—Data revisions follow a regular and publicized procedure. - 4.3.1 Revisions follow a regular and transparent schedule. - 4.3.2 Preliminary and/or revised data are clearly identified. - 4.3.3 Studies and analyses of revisions are made public (see also 3.5.1). ### Accessibility - 5.1 Data accessibility—Statistics are presented in a clear and understandable manner, forms of dissemination are adequate, and statistics are made available on an impartial basis. - 5.1.1 Statistics are presented in a way that facilitates proper interpretation and meaningful comparisons (layout and clarity of text, tables, and charts). - 5.1.2 Dissemination media and format are adequate. - 5.1.3 Statistics are released on a preannounced schedule. - 5.1.4 Statistics are made available to all users at the same time. - 5.1.5 Statistics not routinely disseminated are made available upon request. - 5.2 Metadata accessibility—Up-to-date and pertinent metadata are made available. - 5.2.1 Documentation on concepts, scope, classifications, basis of recording, data sources, and statistical techniques is available, and differences from internationally accepted standards, guidelines, or good practices are annotated. - 5.2.2 Levels of detail are adapted to the needs of the intended audience. - 5.3 Assistance to users—Prompt and knowledgeable support service is available. - 5.3.1 Contact points for each subject field are publicized. - 5.3.2 Catalogs of publications, documents, and other services, including information on any charges, are widely available. ### Appendix III. Users’ Survey — key findings (Netherlands) - Survey logistics: - Targeted users: 129 - Responses received: 50 - Response rate: 39 percent - Overall assessments: - Average rating for overall quality (1 = poor and 5 = excellent): 4.0 - Difference between highest-scoring sector (balance of payments) and lowest-scoring sector (national accounts): 0.5 - Respondents who felt Netherlands’ official statistics are better than those of other countries in the region: 23 percent - Respondents who felt Netherlands’ official statistics are at least as good as those of other countries in the region: 74 percent - Most used official statistics (percent of respondents): - National accounts (NA): 56% - Prices: 76% - Government finance statistics (GFS): 34% - Balance of payments (BOP): 26% - Other categories (selected): Monetary and financial statistics 32%; Production indices 34%; Labor market 56%; Merchandise trade 28%; International reserves and foreign currency liquidity 14%; External debt 10%; International investment position 24%; Other 28% - Sources for obtaining official statistics (percent of respondents): - Official press releases and publications on macroeconomic statistics: 74% - Private sector summaries and analyses: 34% - Official policy papers: 32% - Publications from international organizations about the country: 26% - Other sources: 28% - Use of official methodological descriptions: - Yes: 66% - No: 30% - Purposes for using official statistics (percent): - Analysis of current developments for short-term decision making: 48% - Analysis of trends for longer-term policy formulation: 52% - Econometric model building and forecasting: 28% - Economic research: 46% - Comparison with economic developments in other countries: 40% - General economic background: 42% - Other: 26% - Coverage and detail (percent responding "Yes" by dataset): - Coverage — NA 62%, Prices 80%, GFS 48%, BOP 42%, Other 38%, Average 58% - Level of detail — NA 60%, Prices 72%, GFS 44%, BOP 38%, Other 32%, Average 54% - Periodicity and timeliness: - Satisfaction with frequency — NA 66%, Prices 86%, GFS 44%, BOP 42%, Other 34%, Average 60% - Satisfaction with timeliness — NA 50%, Prices 78%, GFS 42%, BOP 36%, Other 24%, Average 52% - Dissemination practices: - Awareness of publicly disseminated release calendar — NA 48%, Prices 62%, GFS 24%, BOP 30%, Other 20%, Average 41% - Statistics released on announced dates (among those aware) — NA 40%, Prices 54%, GFS 22%, BOP 28%, Other 16%, Average 36% - Sufficient information about revisions — NA 48%, Prices 58%, GFS 40%, BOP 34%, Other 32%, Average 45% - Accessibility: - Can easily access official statistics — NA 62%, Prices 76%, GFS 42%, BOP 44%, Other 24%, Average 56% - Can easily access information on methodology/explanatory notes — NA 58%, Prices 70%, GFS 42%, BOP 42%, Other 30%, Average 53% - Methodology information sufficiently clear and at adequate level of detail to be useful — Yes 68%, No 0%, No Opinion 32% - How respondents access official statistics (selected modes and percentages reported): - Official releases: 32% - Hard copy publications: 54% - Data specifically requested: 34% - Official website: 90% - Other electronic form: 14% - E-mail requests: 40% - User feedback themes and suggested improvements: - Interest in more disaggregated data on prices, production, foreign direct investment, trade in services, and government finance statistics. - Concern that the lag between estimated and final national accounts is too long. - Desire for improved timeliness of hard copy publications. - Suggestions to make official websites more user-friendly. - Interest in additional data on small and medium enterprises, wages, education, imports by sector, the number of importing and exporting firms, and prices of financial services. - Perception that revisions policy and practices could be improved. *Source: Appendix II. Data Quality Assessment Framework—Generic Framework and Appendix III. Users’ Survey (excerpts).* ### 9. Overall assessment ### 9. Overall assessment ### 9.1 Underlying methodology of official statistics - Yes: 62% 74% 48% 46% 28% 58% - No: 38% 26% 52% 54% 72% 42% ### 9.2 Unbiasedness and accuracy of official statistics - Yes: 50% 70% 48% 46% 36% 54% - No: 50% 30% 52% 54% 64% 46% ### 9.3 Quality compared with other countries in the region - Better: 26% 20% 24% 24% 31% 23% - Same: 67% 77% 76% 76% 69% 74% - Worse: 7% 3% 0% 0% 0% 3% ### 9.4 Overall quality of the official statistics - (1 rated as poor and 5 as excellent) - 3.8 4.1 3.9 4.3 3.8 4.0 ### Appendix IV. The Netherlands: Comments by Users of Macroeconomic Statistics #### 1. Methodological soundness - It would important to provide nonfinancial balance sheets for the general government and the households sector. - Data on Dutch natural gas revenue are missing. These data should be separated in three categories: corporations tax, dividend, and revenue from land and mineral reserves. - Good price/quantity data is still missing in services. - Insufficient disaggregation in national accounts, price, and production statistics with regard to the construction industry. - Activity breakdown for foreign direct investment and geographical breakdown for trade in services data would be useful. - Changes from one consumer basket to the next raises some doubts, and uncertainty about the soundness of the methodology of the labor market statistics. - The grossing-up methods for balance of payments may be further explained in the documentation, particularly for special purpose entities. #### 2. Serviceability - BOP publications should explain the differences between BOP and IIP statistics. - National accounts estimates are quick enough, but it takes to much time to have definitive data. - Statistics on emissions and transport/traffic data have a very long time lag, sometimes almost 1.5 until two years later. - In case of revisions, back data that still have to be revised are often hard to access. - Recent revisions have proven to be large, suggesting initial estimates may not have been accurate. - In national accounts, construction statistics regularly big differences between preliminary results and final statistics occur. #### 3. Accessibility - A consistent national accounts time series before 1970 exist only in the most aggregate level. As a consequence, data users have to construct their own time series. - Statistical publications are sometimes too late, which leads to conclusions that are not correct anymore. - Price statistics are on the internet in total numbers only. More detailed statistics are needed. - The statistics covering the government could be more detailed. - More detailed information may be useful concerning hours worked, capital stock, housing wealth, asset holdings split into domestic and foreign holding or sectoral level. - The availability of an advance release calendar needs to be communicated to the public. - Statline should be made more user-friendly. - A good set of comprehensive and long time-series is still not yet available for several statistics. #### 4. General comments - Data on small and medium enterprises, as well as wages would be very useful. - Better statistics on education should be developed in cooperation with the Ministry of Education. - It would be useful to disseminate information on imports by sector and on the number of importing and exporting firms. - Improvements can be made if there is a difference between national and European/international definitions, e.g. the unemployment definition. Both statistics should be presented with an explanatory note. - Quality of data should be given a high priority. - There should be better and more transparent information on the prices of financial services. *Source: _cr0806 - 9. Overall assessment* --- _Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2008/_cr0806.pdf_