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

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

 ABS releases Australia's key macroeconomic statistics
 national accounts, balance of payments, international investment position, financial accounts and government finance statistics
 National and international accounts within the Macroeconomics and Integration Group
 but number of different sections

 Source data for the accounts provided by:
– areas within the Macroeconomics and
Integration Group
– other areas of the ABS
– a range of non-ABS sources

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

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

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

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

 Overview by a high level internal ABS committee

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

 Phase 1 - Input to Development of
International Standards
 2005 to 2007 - input to international standards

 Phase 2 - Scoping
 initial assessment of issues
 standard template developed
– the issue
– lead area
– stakeholders
– relevant BPM 5 standard
– current ABS practice
– proposed BPM 6 standard
– implications for ABS

 Phase 3 Work Program Integration and
Internal Communication
 detailed workplans prepared
 recognise interdependencies between areas, system redevelopment plans and other developments

 Phase 4 External Communication
 information paper released
 key economic agencies contacted
 additional information papers planned for 2009

 Phase 5 Implementation
 by 2008-09 Annuals
 still in progress
 detailed work to modify or develop sources, questionnaires, methods and outputs
 producing necessary back series on the new basis
 updating reference material

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

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

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

 Historical series revised to make the time series of estimates as continuous as possible
 classification changes
 new series
 a standard approach to measuring shifts in the level of series

 General
 staff
 ongoing statistical production
 alignment with other significant changes
 focus

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

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

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

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