Joint OECD/Eurostat Task Force for the revision of the SPPI Guide

1. Joint OECD/Eurostat Task Force for the revision of the SPPI Guide 27th meeting of the Voorburg Group on Service Statistics GUS, Warsaw, 3 October 2012 Anne-Sophie Fraisse (OECD) & Thomas Jaegers (Eurostat)

2. Overview • The joint OECD / Eurostat Task Force for the revision of the SPPI Guide • Revision of the methodological chapters • Guidelines on compilation of SPPIs for specific service industries: revision & enlargement of the scope • Work-plan & timeline

3. The joint OECD / Eurostat Task Force for the revision of the SPPI Guide

4. Task Force Members 14 OECD / EU countries Austria France Germany Hungary Netherlands Poland United-Kingdom • Australia • Canada • Israel • Japan • Korea • Mexico • United-States

5. Objectives • Take into account new developments in service industries (e.g. new contracts forms, new pricing mechanisms) • Share experiences with SPPI • Review methodological chapters (e.g pricing methods, practical aspects of development process) • Alignment of chapters to ISIC rev. 4 / NACE rev. 2 • Enlarge the scope of industries • Work in synergy with the Voorburg Group

6. Ongoing work • Methodological chapters • Chapter 1 - General aspects of SPPI compilation • Chapter 2 – Pricing methods • Chapter 3 – Practical aspects of the development process • Guidelines on compilation of SPPIs for specific service industries

7. Revision of the methodological chapters

8. Chapter 1- General aspects of SPPI compilation • Enlargement of the scope • Sub-division of an SPPI by destination of output is strongly encouraged when relevant • Treatment of outsourcing • As for sub-contracts, outsourcing services should be treated in an index in the same way as any other services • Introduction of 2008 SNA

9. Chapter 2 - Pricing methods • Development of a new category: • Margin pricing (Wholesale & retail trade, FISIM) • Modification of description of existing pricing methods • Use of CPI as proxies • Data type in the survey (Voorburg Group input) ENLARGEMENT OF THE CLASSIFICATION

10. Classification of pricing methods Margin pricing Explicit output charged mechanism • Time-spent mechanism Real transaction price List price Expert estimate Acquisition & selling prices Real transaction price Revenues & amount sold % fee & related value Sub-components: Real transaction price, List price, Revenues & amount sold, Input data Real transaction price List price Unit value Margin pricing Direct use of prices Contract pricing Unit value % fee Component pricing Model pricing Timebased Price indirectly observed Price observed Price estimated using related observed prices Price virtual Price observed or estimated Margin price Price of final service output Time based price

11. 3 classes of pricing methods (1/2) Based on the link between pricing mechanisms and results of pricing methods • Pricing methods result in price of final service output and refer to explicit output charged mechanisms as pricing mechanisms • Includes 6 pricing methods • Add use of CPI data as a special case of Direct use of prices of repeated services • Pricing methods result to time based price and refer to time spent mechanism as pricing mechanism

12. 3 classes of pricing methods (2/2) • Pricing method results to margin price and refer to margin pricing as pricing mechanism • Margin price implicitly charged by wholesalers & retailers • Margin price implicitly charged by financial intermediaries

13. Guidelines on compilation of SPPIs for specific service industries: revision & enlargement of the scope

14. Revision of the existing guidelines (1/2) 19 service industries were covered by the 1st edition of the SPPI Guide • 4 service industry sections have been revised extensively: • Sea and coastal water transport • Air transport* • Telecommunication • Computer programming, consultancy and related activities * Available for comment

15. Revision of the existing guidelines(2/2) 15 Service industry sections have been enhanced with the material from the Voorburg Group: Architectural and engineering activities and related technical consultancy (NLD)* Technical testing and analysis (HUN)* Advertising (GER)* Market research and public opinion polling (UK)* Employment activities (GER)* Security and investigation activities (ISR) Cleaning activities (NLD)* • Freight transport by road (AUT)* • Warehousing and storage (AUS)* • Cargo handling(AUS)* • Post and courier activities (FRA, HUN)* • Real estate activities with own or leased property (UK)* • Legal activities(UK)* • Accounting, bookkeeping and auditing activities; tax consultancy (CAN)* • Activities of head offices; management consultancy activities (FRA)* * Available for comment

16. Enlargement of the scope • 9 new service industry sections have been included in the new version of the SPPI Guide: • Waste management (FRA)* • Wholesale and retail trade (CAN)* • Food and Accommodation • Publishing of books & periodicals (FRA)* • Software publishing (US)* • Financial activities (US)* • Insurance activities (US)* • Health service industries (US)* • Research and Development (ISR) * Available for comment

17. Work plan and timeline

18. Work plan and timeline • Completion by TF members of the revised and new guidelines on specific service industries: Winter 2012 Voorburg Group members are invited to express their willingness to provide comments on methodological chapters and guidelines on SPPI compilation • Final draft: Beginning of 2013 • Publication: Summer 2013

19. Thank you for your attention For further information, contact Anne-Sophie Fraisse (OECD) and Thomas Jaegers (Eurostat) Thomas.Jaegers@ec.europa.eu Anne-Sophie.Fraisse@oecd.org