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9bcaf8e8d8337ef7b4b9bb939383d42450ead61e	Contents Foreword ix Preface xi CONCEPTUAL FRAMEWORK I. Introduction 3 Purposes of the Balance of Payments Manual 3 Changes from the Fourth Edition 3 Uses of Balance of Payments and International Investment Position Data 4 Structure of the Manual 5 II. Conceptual Framework of the Balance of Payments and International Investment Position 6 Definitions 6 Principles and Concepts 6 Double-entry System 6 Concepts of Economic Territory, Residence, and Center of Economic Interest 7 Principles for Valuation and Time of Recording 7 Concept and Types of Transactions 8 Changes Other Than Transactions 9 III. Balance of Payments and National Accounts 10 Introduction 10 Relationship Between the SNA and Principles Underlying the Balance of Payments 10 Classification 11 Integrated Economic Accounts 11 IV. Resident Units of an Economy 20 Concept and Definition of Residence 20 Economic Territory of a Country 20 Center of Economic Interest 20 Resident Institutional Units 21 Residence of Households and Individuals 21 Residence of Enterprises 22 Residence of Nonprofit Institutions 24 General Government 24 Regional Central Banks 25 V. Valuation of Transactions and of Stocks of Assets and Liabilities 26 - Concept of Market Price 26 - Transactions and Market Price 26 - Valuing Transactions in the Absence of Market Price 26 - Market Price Equivalents 26 - Affiliated Enterprises 27 - Noncommercial Transactions 28 - Financial Items 28 - Valuation of Stocks of Assets and Liabilities 28 VI. Time of Recording 30 - Principle of Timing 30 - Application to Goods 30 - Exceptions to the Change of Ownership Principle 31 - Applications to Other Transactions 31 - Other Timing Adjustments 32 VII. Unit of Account and Conversion 33 - Unit of Account 33 - Conversion Principles and Practices 33 - Multiple Official Exchange Rates and Conversion 34 - Black or Parallel Market Rates 34 STRUCTURE AND CLASSIFICATION VIII. Classification and Standard Components of the Balance of Payments 37 - Structure and Classification 37 - Standard Components 37 - Net Errors and Omissions 38 - Major Classifications 38 - Detailed Classifications 38 - Balance of Payments: Standard Components Table 43 - Selected Supplementary Information Table 49 IX. Structure and Characteristics of the Current Account 51 - Characteristics and Classification 51 - Gross Recording, Valuation, and Time of Recording 52 X. Goods 54 - Coverage and Principles 54 - Definitions 54 - Change of Ownership 55 - Goods Classified Under Other Categories 57 - Special Types of Goods 57 - Time of Recording 58 - Valuation 58 XI. Transportation 61 Definition and Coverage 61 Passenger Services 61 Freight Services and Conventions for Recording 61 Rentals of Transportation Equipment with Crew 62 Supporting and Auxiliary Services 62 XII. Travel 64 Nature of Travel Services 64 Definition 64 Types of Travel 64 Goods and Services Covered 65 XIII. Other Services 66 Coverage 66 Definitions 66 XIV. Income 70 Coverage 70 Definition and Classification 70 Time of Recording of Investment Income 72 Measurement and Recording of Direct Investment Earnings 72 Stock Dividends, Bonus Shares, and Liquidating Dividends 73 XV. Current Transfers 74 Definition and Coverage 74 Distinction Between Current and Capital Transfers 74 Classification 75 Valuation and Timing 76 XVI. Structure and Characteristics of the Capital and Financial Account 77 Coverage 77 Capital Account 77 Financial Account 78 Liabilities Constituting Foreign Authorities’ Reserves 82 Valuation and Timing 82 XVII. Capital Transfers and Acquisition or Disposal of Nonproduced, Nonfinancial Assets 83 Coverage 83 Capital Transfers 83 Classification 83 Acquisition or Disposal of Nonproduced, Nonfinancial Assets 84 XVIII. Direct Investment 86 Concept and Characteristics 86 Direct Investment Enterprises 86 Direct Investors 87 Direct Investment Capital 87 Extent of Net Recording 88 Valuation of Flows and Stocks 89 Other Special Cases of Direct Investment Enterprises 89 Selected Supplementary Information 89 XIX. Portfolio Investment 91 Coverage 91 Classification and Definitions 91 Selected Recording Issues 92 Valuation 94 XX. Other Investment 95 Coverage 95 Classification 95 Definitions and Recording 95 XXI. Reserve Assets 97 Concept and Coverage 97 Identification of Reserve Assets 97 Exclusion of Valuation Changes and Other Adjustments 99 Classification 99 Valuation 100 Interpretation of Changes in Reserve Assets 100 XXII. Supplementary Financial Account Information 101 Coverage 101 Liabilities Constituting Foreign Authorities’ Reserves 101 Exceptional Financing and the Balance of Payments 102 Balance of Payments Accounting for Selected Exceptional Financing Transactions 102 Foreign Sources of Financing 103 XXIII. International Investment Position 104 Concept and Coverage 104 Classification 104 Valuation of Components 105 Relationship of the International Investment Position to External Debt 106 Investment Income, Rates of Return, and the International Investment Position 106 International Investment Position: Standard Components Table 108 REGIONAL ALLOCATION XXIV. Regional Statements 115 Regional Allocation Principles 115 Problems and Limitations 116 Analytical Implications 117 Selection of Regions 117 APPENDICES I. Relationship of the Rest of the World Account to the Balance of Payments Accounts and the International Investment Position 121 II. A Note on Sectors 145 III. Balance of Payments Classification of International Services and the Central Product Classification 146 IV. Accounting for Exceptional Financing Transactions 150 V. Selected Issues in Balance of Payments Analysis 158 INDEX Measurement of the external positions of member countries has been a central feature of International Monetary Fund operations since inception. Such measurement is conducted in the dual context of Fund responsibility for surveillance of countries’ economic policies and provision of financial assistance in support of adjustment measures to correct balance of payments disequilibria. Consequently, the Fund has a compelling interest in developing and promulgating appropriate international guidelines for the compilation of sound and timely balance of payments statistics. Such guidelines, which have evolved to meet changing circumstances, have been embodied in successive editions of the Balance of Payments Manual (the Manual) since the first edition was published in 1948. Because of the important relationship between external and domestic economic developments, timely, reliable, and comprehensive balance of payments statistics based on an appropriate and analytically oriented methodology are an indispensable tool for economic analysis and policy making. Indeed, with the growing interdependence of the world’s economies, the need for such statistics—which reflects in part the underlying movement towards greater liberalization and integration of markets—has increased over time. I am particularly pleased to introduce the fifth edition of the Manual, which addresses the many important changes and innovations that have occurred in international transactions since the fourth edition was published in 1977. The fifth edition of the Manual also addresses, for the first time, the important area of international investment position statistics. In addition, concepts in the Manual have been harmonized, as closely as possible, with those of the revised System of National Accounts 1993 and with the Fund’s methodologies pertaining to money and banking and government finance statistics. The revised Manual has been prepared by the Fund’s Statistics Department in close consultation with balance of payments experts in member countries and international and regional organizations (including the Statistical Office of the European Communities, the Organisation for Economic Cooperation and Development, the United Nations, and the World Bank). The process underlying the revision of the Manual demonstrates the spirit of international collaboration and cooperation, and I would like to thank all of the national and international experts involved for their invaluable assistance. In this regard, I am particularly grateful to Mr. Pierre Esteva, chairman of the Fund’s Working Party on the Statistical Discrepancy in World Current Account Balances, and to Baron Jean Godeaux, chairman of the Working Party on the Measurement of International Capital Flows. Their assessments of the effects of the unprecedented changes in the conduct of international transactions contributed significantly to the revision of the structure and classification of the international accounts. I would like to commend the Manual to compilers and users around the world and to urge member countries to adopt the conceptual guidelines of the fifth edition as the basis for compiling balance of payments and international investment position statistics and for reporting this information to the Fund. Michel Camdessus Managing Director International Monetary Fund The fifth edition of the Balance of Payments Manual (the Manual) continues the series of international standards that have been issued by the International Monetary Fund (IMF) for providing guidance to member countries in the compilation of balance of payments and related data on the international investment position. Since the fourth edition of the Manual was published in 1977, important changes have occurred in the manner in which international transactions are conducted. These changes are, in particular, a result of the liberalization of financial markets, innovations in the creation and packaging of financial instruments, and new approaches to the restructuring of external debt. In addition, there has been unprecedented growth in the volume of international trade in services. All these developments have necessitated changes in the treatment and classification of such transactions within the structure of the balance of payments accounts. Furthermore, since publication of the fourth edition, experience with application of that edition has brought to light a number of instances in which guidelines could usefully be augmented and recommendations clarified. An additional impetus to the preparation of the fifth edition of the Manual was the work undertaken to revise the system of economic and financial statistics encompassed in the System of National Accounts 1993 (SNA). There was the need to achieve, to the maximum extent possible, harmonization between the two systems and with IMF statistical systems pertaining to money and banking statistics and government finance statistics. The fifth edition of the Manual provides international guidelines for the compilation of data for an articulated set of international accounts encompassing the measurement of external transactions (balance of payments), on the one hand, and the stock of external financial assets and liabilities (the international investment position) on the other. This edition of the Manual provides explicit links between the outstanding stock of external financial assets and liabilities and corresponding changes that occur, during specified periods, in these external financial instruments. The changes reflect transactions, valuation changes, and other adjustments in the relevant financial instruments. The delineation of an articulated set of international accounts represents a major shift in orientation from the fourth to the fifth edition. The fifth edition also differs from its predecessor in other important respects. First, the current account of the balance of payments is redefined to exclude capital transfers, which are included in an expanded and renamed capital and financial account. This change provides for a greater degree of harmonization and integration with the SNA in terms of the underlying concepts and the identification of major aggregates. Second, within the current account, clear distinctions are made among goods, services, income, and current transfers. As a reflection of the heightened analytical and policy interest in data on international trade in services (particularly in the context of the General Agreement on Tariffs and Trade negotiations on services) considerable disaggregation is introduced in the classification of international services transactions. The classification of the financial account follows a hierarchical structure for functional categories, asset or liability distinctions, instrument specification, sectorization, and the distinction between long- and short-term instruments. In addition, the classifications underlying the income components of the current and financial accounts and the international investment position are closely aligned to enhance analytic potential. Despite the extensive revision of the Manual, IMF recommendations for balance of payments compilation maintain a high degree of continuity. Thus, compilers who have been producing statistics that conform reasonably well to the standards established in previous editions should not experience great difficulty in adapting procedures for data collection or in reporting according to the recommendations of the fifth edition. The basic concepts and principles in the Manual remain generally valid and any necessary adjustments may be readily effected within a largely unchanged theoretical framework. The fifth edition of the Manual was produced by the IMF Statistics Department—primarily through the work of a consultant, Mr. Jack Bame (formerly the associate director for international economics at the Bureau of Economic Analysis, U.S. Department of Commerce), and through close consultation with national compilers of balance of payments statistics and experts from interested international and regional organizations. The reports of the IMF working parties on the Statistical Discrepancy in World Current Account Balances and on the Measurement of International Capital Flows also contributed to the development of the Manual. In addition, an advisory group of IMF staff provided assistance in articulating IMF operational and analytic needs in the area of balance of payments statistics. The members of the group were Mr. Bruce Smith, senior advisor in the Southeast Asia and Pacific Department; Mr. Peter Clark, assistant director in the Research Department; and Mr. Michael Kuhn, division chief in the Policy Development and Review Department. The project was supervised by Mr. Mahinder S. Gill, assistant director for the Balance of Payments and External Debt Division in the IMF Statistics Department. Most of the original drafting was done by Mr. Bame. He also was responsible for subsequent redrafting undertaken to reflect comments received from national compilers and concerned international and regional organizations and to incorporate conclusions that were reached at the meeting of balance of payments experts held at IMF headquarters in March 1992. Through comments on earlier drafts or through drafting of selected chapters and appendices, staff of the Balance of Payments and External Debt Division made specific contributions: Mr. Gill (Chapter 3 and Appendix 1), Mr. Jan Bové and Mrs. Florencia Frantischek (Appendix 4), and Mr. Abul Siddique (Appendix 3). Mr. Clark of the Research Department made a particularly valuable contribution by preparing Appendix V, which addresses selected issues in balance of payments analysis. Ms. Nancy Basham, Statistics Department, edited and coordinated print production and Ms. Suzanna Persaud, administrative staff of the Balance of Payments and External Debt Division, typed the various drafts and the final version of the Manual. The IMF benefitted immensely from the contributions and comments made by experts who participated in the March 1992 meeting of balance of payments experts. Their deliberations culminated in a set of conclusions that, coupled with further consultation through correspondence, formed the basis for redrafting and finalizing the fifth edition. The IMF staff wishes to acknowledge, with thanks, indebtedness to the following experts in national balance of payments offices and to representatives from regional and international organizations who participated in the meeting and contributed to the preparation of the Manual. Australia Ms. Barbara Dunlop Brazil Ms. Maria Oliveira Nabao Canada Ms. Lucie Laliberté Chile Mrs. Teresa Cornejo Black China Ms. Wang Lingfen France Mr. Jacques Cuny Dr. Marc Auboin Germany Dr. Rudolf Seiler Hungary Mrs. P. Horvath Iran Mrs. Mehrangiz Tavassoli Italy Dr. Antonello Biagioli Japan Mr. Shinichi Yoshikuni Kenya Mr. Takashi Kori Libya Mr. Pius P. Kallaa Mexico Mr. Ali Ramadan Shnebesh Netherlands, The Netherlands Mr. Jorge Carriès Saudi Arabia Dr. Marius van Nieuwkerk Saudi Arabia Mr. Mohammed Al-Hakami Saudi Arabia Mr. Mohanna Al-Mohanna Saudi Arabia Mr. Gunnar Blomberg Saudi Arabia Mr. John E. Kidgell Saudi Arabia Mr. Bruce Buckingham Saudi Arabia Dr. J. Steven Landefeld Saudi Arabia Ms. Nkobafily Marie Saudi Arabia Marthe Lebughe EUROSTAT Mr. J. C. Roman OECD Mr. Erwin Veil UN Mr. Jan van Tongeren World Bank Datuk Ramesh Chander John B. McLenaghan Director, Statistics Department International Monetary Fund Balance of Payments Conceptual Framework I. Introduction Purposes of the Balance of Payments Manual 1. Like editions issued in 1948, 1950, 1961, and 1977, this 1993 edition of the Balance of Payments Manual (the Manual) serves as an international standard for the conceptual framework underlying balance of payments statistics. The Manual also functions as a guide for member countries submitting regular balance of payments reports to the International Monetary Fund (the IMF or the Fund). In preparing this fifth edition, the IMF made every effort to ascertain the needs and to reflect the viewpoints of national compilers and various users of balance of payments statistics and international investment position data. 2. The primary purposes of the Manual are (i) to provide standards for concepts, definitions, classifications, and conventions and (ii) to facilitate the systematic national and international collection, organization, and comparability of balance of payments and international investment position statistics. A companion volume, the Balance of Payments Compilation Guide (the Guide), provides practical guidance to national compilers on the collection, presentation, and systematization of external statistics. The Guide is particularly useful for countries in which statistical systems are in the early stages of development or in transition. Changes from the Fourth Edition 3. The scope and orientation of this Manual differ from those of the fourth edition in a number of respects. One important change is the expansion of the conceptual framework to encompass balance of payments flows (transactions) and stocks of external financial assets and liabilities (the international investment position). A clear distinction is made between (i) transactions and (ii) other changes in the accounts—valuation, reclassification, and other adjustments. Transactions or other changes may result in changes in stocks, but only transactions are reflected in balance of payments accounts. For example, in the fifth edition, the allocation or cancellation of special drawing rights (SDRs) and the monetization or demonetization of gold (each with counterpart entry) are not included among transactions in the balance of payments accounts but as adjustment items affecting the international investment position. 4. Additionally, linkage of the international investment position and balance of payments accounts to the rest of the world account in the System of National Accounts (SNA) is strengthened and harmonized to the maximum extent possible. Cases in point are identical treatments, in the two systems, of residence, valuation, timing, and reinvested earnings on direct investment. Also, to increase harmonization with the SNA, a distinction between current and capital transfers is introduced in the Manual. As a result of the change, the former balance of payments capital account is redesignated as the capital and financial account. These and other changes reflect the efforts of international experts and coordinating groups, including national accountants and balance of payments compilers. Their efforts also serve to integrate the balance of payments more effectively with other IMF statistical systems such as money and banking, government finance, and international banking. 5. There are also changes in the treatments of international services, income, and certain financial transactions. First, in contrast to the fourth edition, the fifth edition makes a clear distinction in the current account between international transactions in services and transactions in income. In the fourth edition, labor and nonfinancial property income were grouped together with services other than shipment, travel, and transportation, and investment income was covered separately. In the fifth edition, the two main components of income flows between residents and nonresidents—compensation of employees and investment income—are separately identified as components of the current account. This treatment harmonizes with the concept of income presented in the System of National Accounts 1993 (SNA) and strengthens the links between the balance of payments income account and financial account and between balance of payments flows and the stocks of assets and liabilities comprising the international investment position. Second, the component list of transactions in services is expanded to reflect the growing importance of services and the contributions of various international fora to the development of a codified list that satisfies the requirements and provides links between separate statistical systems. 6. In the fifth edition, coverage of financial flows and stocks is significantly expanded and restructured. The modification reflects, first, an orientation towards compatibility with other IMF statistical systems and the SNA and, second, widespread alterations in the nature and composition of international financial transactions since publication of the fourth edition in 1977. These changes include the emergence of financial innovations, new instruments, and transactors that are partly associated with a trend towards increased asset securitization. Such developments tend, in many instances, to blur the distinction between long- and short-term maturities and to make it more difficult to identify resident/nonresident transactions, especially when such transactions involve a number of currencies and a variety of actual and contingent financial instruments or arrangements. Together with the easing or abolition of exchange controls in many countries and the progressive deregulation of national financial markets, these developments create new challenges and problems for compilers and data users. Further complications arise as a result of external debt problems experienced by a number of countries (e.g., accounting for arrears, debt forgiveness or debt reduction schemes, and associated innovative financial arrangements). Partly in response to such developments, classification of the financial account is re-oriented. To cover new financial instruments, coverage of nonequity portfolio investment is broadened to include long- and short-term securities, and supplementary classifications covering exceptional financing transactions (with selected arrears-related entries for balance of payments accounts) and other items of analytical interest are introduced. Uses of Balance of Payments and International Investment Position Data 07. Balance of payments and international investment position data are most important, of course, for national and international policy formulation. External aspects (such as payments imbalances and inward and outward foreign investment) play a leading role in economic and other policy decisions in the increasingly interdependent world economy. Such data are also used for analytical studies; that is, to determine the causes of payments imbalances and the necessity for implementing adjustment measures; relationships between merchandise trade and direct investment; aspects of international trade in services; international banking flows and stocks; asset securitization and principal market developments; external debt problems, income payments, and growth; and links between exchange rates and current account and financial account flows. In addition, external data are utilized extensively, along with other variables, for balance of payments projections and the relationship of these projections to changes in countries’ stocks of external assets and liabilities. Finally, balance of payments and international investment position data constitute an indispensable link in the compilation of data for various components of the national accounts (e.g., production accounts, income accounts, capital and financial accounts, and the related measurement of national wealth). 08. Previous brief references to changes in coverage, classification, and orientation do not represent an all-inclusive list of differences between the fourth and fifth editions of the Manual. Other modifications in the treatment of specific components will be evident—and thoroughly covered—in appropriate chapters. In direct investment, for example, changes are effected in criteria for flows between affiliated banks (and related stock positions) and in the distinction between long- and short-term intercompany transactions. Aspects of regional presentation, covered in an appendix in the fourth edition, comprise a chapter in this Manual to reflect growing international interest in this area. To address the expanded conceptual framework that encompasses stocks of external assets and liabilities, the fifth edition presents a new chapter on the international investment position and a full exposition of the classification, components, and links to balance of payments accounts and balance sheet aspects of the SNA. 09. In contrast to a rather central position in the fourth edition, the discussion of selected issues in balance of payments analysis is presented in Appendix 5 of the fifth edition. Such issues and the nature and limitations of various presentations can be better understood after the concepts, structure, and classification of standard components have been covered. A thorough treatment of analytic material requires more extensive coverage than would be appropriate in this Manual. Therefore, only selected issues are highlighted to help identify causes of payments imbalances, to determine financing requirements, and to focus on appropriate adjustment measures. 10. Although there are significant differences between the fourth and fifth editions of the Manual, the latter preserves the continuity of the data collection framework and IMF reports. Every effort has been made to delineate principles and concepts clearly; to relate these appropriately to practical considerations and limitations; and to establish conventions that may be applied, when data sources allow, within a consistent framework. Because the development of statistical systems varies, standard components and classification schemes presented in the Manual may be excessively detailed for many IMF member countries and inadequately detailed for others. The framework provides flexibility in this respect. The former group may provide limited data on selected components—and subsequently add to these, if possible—and the latter group may be encouraged to provide supplementary data. Structure of the Manual 11. Part one of the Manual covers the conceptual framework of international accounts. Part two deals with the structure and classification of accounts, and part three is concerned with regional allocation. II. Conceptual Framework of the Balance of Payments and International Investment Position Definitions 12. Part one of this Manual deals with the conceptual framework of balance of payments accounts and the international investment position. Part one covers the framework’s relationship to national accounts; to concepts of residence, valuation, and time of recording; and to the unit of account and conversion. 13. The balance of payments is a statistical statement that systematically summarizes, for a specific time period, the economic transactions of an economy with the rest of the world. Transactions, for the most part between residents and nonresidents, consist of those involving goods, services, and income; those involving financial claims on, and liabilities to, the rest of the world; and those (such as gifts) classified as transfers, which involve offsetting entries to balance—in an accounting sense—one-sided transactions. (See paragraph 28.) A transaction itself is defined as an economic flow that reflects the creation, transformation, exchange, transfer, or extinction of economic value and involves changes in ownership of goods and/or financial assets, the provision of services, or the provision of labor and capital. 14. Closely related to the flow-oriented balance of payments framework is the stock-oriented international investment position. Compiled at a specified date such as year end, this investment position is a statistical statement of (i) the value and composition of the stock of an economy’s financial assets, or the economy’s claims on the rest of the world, and (ii) the value and composition of the stock of an economy’s liabilities to the rest of the world. In some instances, it may be of analytic interest to compute the difference between the two sides of the balance sheet. The calculation would provide a measure of the net position, and the measure would be equivalent to that portion of an economy’s net worth attributable to, or derived from, its relationship with the rest of the world. A change in stocks during any defined period can be attributable to transactions (flows); to valuation changes reflecting changes in exchange rates, prices, etc.; or to other adjustments (e.g., uncompensated seizures). By contrast, balance of payments accounts reflect only transactions. Principles and Concepts 15. The remainder of this chapter deals with the conceptual framework of international accounts; that is, the set of underlying principles and conventions that ensure the systematized and coherent recording of international transactions and stocks of foreign assets and liabilities. Relevant aspects of these principles, together with practical considerations and limitations, are thoroughly discussed in subsequent chapters. Double-entry System 16. The basic convention applied in constructing a balance of payments statement is that every recorded transaction is represented by two entries with equal values. One of these entries is designated a credit with a positive arithmetic sign; the other is designated a debit with a negative sign. In principle, the sum of all credit entries is identical to the sum of all debit entries, and the net balance of all entries in the statement is zero. 17. In practice, however, the accounts frequently do not balance. Data for balance of payments estimates often are derived independently from different sources; as a result, there may be a summary net credit or net debit (i.e., net errors and omissions in the accounts). A separate entry, equal to that amount with the sign reversed, is then made to balance the accounts. Because inaccurate or missing estimates may be offsetting, the size of the net residual cannot be taken as an indicator of the relative accuracy of the balance of payments statement. Nonetheless, a large, persistent residual that is not reversed should cause concern. Such a residual impedes analysis or interpretation of estimates and diminishes the credibility of both. A large net residual may also have implications for interpretation of the investment position statement (See the discussion in Chapter 23.) 18. Most entries in the balance of payments refer to transactions in which economic values are provided or received in exchange for other economic values. These values consist of real resources (goods, services, and income) and financial items. Therefore, the offsetting credit and debit entries called for by the recording system are often the result of equal amounts having been entered for the two items exchanged. When items are given away rather than exchanged, or when a recording is one-sided for other reasons, special types of entries—referred to as transfers—are made as the required offsets. (The various kinds of entries that may be made in the balance of payments are discussed in paragraphs 26 through 31.) 19. Under the conventions of the system, a compiling economy records credit entries (i) for real resources denoting exports and (ii) for financial items reflecting reductions in an economy’s foreign assets or increases in an economy’s foreign liabilities. Conversely, a compiling economy records debit entries (i) for real resources denoting imports and (ii) for financial items reflecting increases in assets or decreases in liabilities. In other words, for assets—real or financial—a positive figure (credit) represents a decrease in holdings, and a negative figure (debit) represents an increase. In contrast, for liabilities, a positive figure shows an increase, and a negative figure shows a decrease. Transfers are shown as credits when the entries to which the transfers provide the offsets are debits and as debits when those entries are credits. 20. The content or coverage of a balance of payments statement depends somewhat on whether transactions are treated on a gross or on a net basis. The Manual contains recommendations on which transactions should be recorded gross or net. The recommendations are appropriately reflected in the list of standard components and in suggested supplementary presentations. Concepts of Economic Territory, Residence, and Center of Economic Interest 21. Identical concepts of economic territory, residence, and center of economic interest are used in this Manual and in the SNA. Economic territory may not be identical with boundaries recognized for political purposes. A country’s economic territory consists of a geographic territory administered by a government; within this geographic territory, persons, goods, and capital circulate freely. For maritime countries, geographic territory includes any islands subject to the same fiscal and monetary authorities as the mainland. 22. An institutional unit has a center of economic interest and is a resident unit of a country when, from some location (dwelling, place of production, or other premises) within the economic territory of the country, the unit engages and intends to continue engaging (indefinitely or for a finite period) in economic activities and transactions on a significant scale. (One year or more may be used as a guideline but not as an inflexible rule.) Principles for Valuation and Time of Recording 23. A uniform basis of valuation for the international accounts (both real resources and financial claims and liabilities) is necessary for compiling, on a consistent basis, any aggregate of individual transactions and an asset/liability position consistent with such transactions. In this Manual, the basis of transaction valuations is generally actual market prices agreed upon by transactors. (This practice is consistent with that of the SNA.) Conceptually, all stocks of assets and liabilities are valued at market prices prevailing at the time to which the international investment position relates. A full exposition of valuation principles; recommended practices; limitations; and the valuation of transfers, financial items, and stocks of assets and liabilities appears in Chapter 5. (The exposition includes cases in which conditions may not allow for the existence or assumption of market prices.) 24. In the Manual and the SNA, the principle of accrual accounting governs the time of recording for transactions. Therefore, transactions are recorded when economic value is created, transformed, exchanged, transferred, or extinguished. Claims and liabilities arise when there is a change in ownership. The change may be legal or physical (economic). In practice, when a change in ownership is not obvious, the change may be proxied by the time that parties to a transaction record it in their books or accounts. (The recommended timing and conventions for various balance of payments entries, together with exceptions to and departures from the change of ownership principle, are covered in Chapter 6.) Concept and Types of Transactions 25. Broadly speaking, changes in economic relationships registered by the balance of payments stem primarily from dealings between two parties. These parties are, with one exception (see footnote 1), a resident and a nonresident, and all dealings of this kind are covered in the balance of payments. Recommendations for specific entries are embodied in the list of standard components (see Chapter 8) and are spelled out in detail from Chapter 9 onward. 26. Despite the connotation, the balance of payments is not concerned with payments, as that term is generally understood, but with transactions. A number of international transactions that are of interest in a balance of payments context may not involve the payment of money, and some are not paid for in any sense. The inclusion of these transactions, in addition to those matched by actual payments, constitutes a principal difference between a balance of payments statement and a record of foreign payments. Exchanges 27. The most numerous and important transactions found in the balance of payments may be characterized as exchanges. A transactor (economic entity) provides an economic value to another transactor and receives in return an equal value. The economic values provided by one economy to another may be categorized broadly as real resources (goods, services, income) and financial items. The parties that engage in the exchange are residents of different economies, except in the case of an exchange of foreign financial items between resident sectors. The provision of a financial item may involve not only a change in the ownership of an existing claim or liability but also the creation of a new claim or liability or the cancellation of existing ones. Moreover, the terms of a contract pertaining to a financial item (e.g., contractual maturity) may be altered by agreement between the parties. Such a case is equivalent to fulfillment of the original contract and replacement by a contract with different terms. All exchanges of these kinds are covered in the balance of payments. Transfers 28. Transactions involving transfers differ from exchanges in that one transactor provides an economic value to another transactor but does not receive a quid pro quo on which, according to the conventions and rules adopted for the system, economic value is placed. This absence of value on one side is represented by an entry referred to as a transfer. Such transfers (economic value provided and received without a quid pro quo) are shown in the balance of payments. Current transfers are included in the current account (see Chapter 15) and capital transfers appear in the capital account. (See Chapter 17.) Migration 29. Because an economy is defined in terms of the economic entities associated with its territory, the scope of an economy is likely to be affected by changes in entities associated with the economy. 30. Migration occurs when the residence of an individual changes from one economy to another because the person moves his or her abode. Certain movable, tangible assets owned by the migrant are, in effect, imported into the new economy. The migrant’s inmovable assets and certain movable, tangible assets located in the old economy become claims of the new economy on the old economy. The migrant’s claims on, or liabilities to, residents of an economy other than the new economy become foreign claims or liabilities of the new economy. The migrant’s claims on, or liabilities to, residents of the new economy cease to be claims on, or liabilities to, the rest of the world for any economy. The net sum of all these shifts is equal to the net worth of the migrant, and his or her net worth must also be recorded as an offset if the other shifts are recorded. These entries are made in the balance of payments where the offset is conventionally included with transfers. Other imputed transactions 31. In some instances, transactions may be imputed and entries may be made in balance of payments accounts when no actual flows occur. Attribution of reinvested earnings to foreign direct investors is an example. The earnings of a foreign subsidiary or branch include earnings attributable to a direct investor. The earnings, whether distributed or reinvested in the enterprise, are proportionate to the direct investor’s equity share in the enterprise. Reinvested earnings are recorded as part of direct investment income. An offsetting entry with opposite sign is made in the financial account under direct investment-reinvested earnings to reflect the direct investor’s increased investment in the foreign subsidiary or branch. (Reinvested earnings are discussed in chapters 14 and 18.) Changes Other Than Transactions Reclassification of claims and liabilities 32. The classification of financial items presented in this Manual is designed to reveal the motivation of creditor or debtor. Financial items are subject to reclassification in accordance with changes in motivation. A case in point is the distinction between direct investment and other types of investment. For example, several independent holders of portfolio investment (in the form of corporate equities issued by a single enterprise located abroad) may form an associated group to have a lasting, effective voice in the management of the enterprise. Their holdings will then meet the criteria for direct investment, and the change in the status of the investment could be recorded as a reclassification. Such a reclassification would be reflected, at the end of the period during which it occurred, in the international investment position but not in the balance of payments. Similarly, claims on nonresidents can come under, or be released from, the control of resident monetary authorities. In such cases, there are reclassifications between reserve assets and assets other than reserves. Valuation changes 33. The values of real resources and financial items are constantly subject to changes stemming from either or both of two causes. (i) The price at which transactions in a certain type of item customarily take place may undergo alteration in terms of the currency in which that price is quoted. (ii) The exchange rate for the currency in which the price is quoted may change in relation to the unit of account that is being used. Valuation changes are not included in the balance of payments but are included in the international investment position. III. Balance of Payments and National Accounts Introduction 34. Conceptually, balance of payments accounts and related data on the international investment position are closely linked to a broader system of national accounts that provides a comprehensive and systematic framework for the collection and presentation of the economic statistics of an economy. The international standard for this framework is the System of National Accounts (SNA), which encompasses transactions, other flows, stocks, and other changes affecting the level of assets and liabilities from one accounting period to another. Linkage of the balance of payments and the SNA is reinforced by the fact that, in almost all countries, balance of payments and international investment position data are compiled first and subsequently incorporated into national accounts. 35. The SNA is a closed system in that both ends of every transaction are recorded; that is, each transaction is shown as a use for one part of the system and as a resource for another part. Stocks of assets affected by transactions are covered as of the beginnings and ends of appropriate periods. Stocks of assets also are affected by valuation and other volume changes (such as uncompensated seizures or destruction of assets) that occur during the period and cause additional differences in stock value. 36. In the SNA, transactors and holders of stocks are the resident economic entities of a particular economy. For the SNA to be closed, there must be a segment to capture flows that involve uses or resources for nonresident entities. That segment is known as the rest of the world account. The segment for resident entities or sectors consists of accounts for production, income generation, primary and secondary distribution of income, redistribution of income, consumption, and accumulation. Since the system is closed, the rest of the world account is constructed from the perspective of the rest of the world rather than that of the compiling economy. Consequently, entries in the balance of payments and the international investment position are reversed in the presentation of rest of the world accounts. 37. In this chapter, the balance of payments and the international investment position are described in relation to the SNA and links between those international accounts and relevant segments of the SNA are discussed. Relationship Between the SNA and Principles Underlying the Balance of Payments 38. As the balance of payments and the international investment position are integral parts of the SNA, there is virtually complete concordance—between the Manual and the SNA—on such issues as the delineation of resident units (producers or consumers), valuation of transactions and the stock of external assets and liabilities, time of recording transactions and stocks, conversion procedures, coverage of international transactions in real resources (goods, services and income), and transfers (current and capital). There is concordance, as well, on external financial assets and liabilities and coverage of the international investment position. Resident units 39. The SNA and the Manual identify resident producers and consumers in identical fashion. Both invoke the concepts of economic territory and the center of economic interest to identify resident units. (These concepts are elaborated in Chapter 4.) Valuation 40. In the Manual and the SNA, market price is the primary concept for valuation of transaction accounts and balance sheet accounts. (The market price concept is defined and elaborated in Chapter 5.) Time of recording 41. Balance of payments and national accounts are constructed, in principle, on an accrual basis. The two systems employ essentially identical applications of the accrual basis in specific categories of transactions. (Chapter 6 provides a full discussion on application of the accrual basis underlying balance of payments accounts.) Conversion procedures 42. Both systems employ consistent procedures for converting transactions denominated in a variety of currencies or units of account into the unit of account (usually the domestic currency) adopted for compiling the balance of payments statement or the national accounts. (See Chapter 7.) There also is concordance between the two systems on conversion procedures used in constructing balance sheet accounts. Classification 43. It would be convenient, for some purposes, if the classification of transactions in the balance of payments and the rest of the world account of the SNA were identical in all respects. Differences are justifiable, however, because the two statements have different uses. Whereas the classification scheme of the rest of the world account maintains the basic, fundamental distinction between production flows, income flows, and accumulation flows, that subclassification is of lesser importance in the context of balance of payments analysis. Congruence of underlying principles makes the balance of payments consistent with the SNA framework and permits the balance of payments to be described in the context of the SNA. This overall congruence is more important than exact, detailed concordance between the balance of payments and SNA accounts pertaining to relationships of resident units with the rest of the world. 44. Before examining the relationship between the SNA rest of the world account and the balance of payments accounts and international investment position, readers may find it useful to consider how the broad elements of the latter two statements relate to integrated economic accounts for the economy as a whole, as well as to institutional sectors of the economy. Integrated Economic Accounts 45. Integrated economic accounts (see pages 14–19) in the form of T-accounts provide an overview of structural elements of the SNA by depicting various facets of economic phenomena (e.g., production, income, consumption, accumulation, and wealth) in three types of accounts: current accounts, accumulation accounts, and balance sheets. Details for the total economy and various institutional sectors are presented separately in these accounts. Resources, stocks of liabilities, and net worth (and changes thereof) are shown on the right side of the accounts; uses and stocks of assets (and changes thereof) are shown on the left side in the tabular presentation. However, in the account for goods and services, the sources of supply (resources) from the economy's output and imports are shown on the left side, and the distribution of that supply (uses such as exports, intermediate consumption, and final consumption by the economy) is shown on the right side. For each category of transactions, the sum of the entries on the right side of the accounts is equal to the sum of the entries on the left side. Because the SNA is closed, external flows are portrayed or measured from the perspective of the rest of the world to achieve this equality. Thus, for example, payments of compensation to employees (uses) by various institutional sectors may exceed receipts (resources) for the household sector because some payments are made to nonresidents (resources for the rest of the world). The inclusion of payments to nonresidents on the resources side (for the rest of the world sector) ensures that both sides of the account are equal. 46. SNA current (transactions) accounts—the first set of integrated economic accounts—portray (i) output, intermediate consumption, and value added for each sector and the total economy, as well as the disposition of domestic production and imports of goods and services; (ii) distributive, from the viewpoint of producers, transactions that are directly linked to the process of production or, alternatively, the composition of value added; (iii) primary income distribution showing how gross value added is distributed to factors of labor, capital, and government and, when appropriate, reflects flows to and from the rest of the world; (iv) secondary income distribution; (v) income redistribution covering, in principle, current taxes on income, wealth, and other current transfers and allowing for the derivation of disposable income and adjusted disposable income; and (vi) use of income. Saving is a balancing item for all transactions accounts and provides a link to accumulation accounts. 47. Accumulation accounts of the SNA show changes in assets and liabilities and net worth (the difference, for any sector or for the total economy, between assets and liabilities) and follow a presentation similar to balance sheets. A first group of accounts covers transactions that would correspond to all changes in assets, liabilities, and net worth if saving and voluntary transfers of wealth were the only sources of change in net worth. A second group of accounts relates to changes—in assets, liabilities, and net worth—that are due to other factors. The first group of accumulation accounts contains the capital account and the financial account. These two accounts are distinguished to show a balancing item (i.e., net lending/net borrowing) useful for economic analysis. The second group covers changes—in assets, liabilities, and net worth—that are a result of other factors affecting the values and volume of assets and liabilities. Examples of such changes are discoveries or depletion of subsoil resources, natural catastrophes, uncompensated seizures of assets, etc., and price and exchange rate changes that affect only the values of assets and liabilities. 48. Flows reflected in the balance of payments affect, in important ways, the total economy’s activities associated with production, generation and distribution of income, consumption, and accumulation activities. For instance, credit and debit entries for goods and services in balance of payments accounts are equivalent to flows of exports and imports of goods and services. These flows are reflected in the economy’s account for goods and services and consequently affect the measurement of gross domestic product (GDP) and its composition in terms of final demand components (e.g., final consumption, gross capital formation, etc.). When measured from the final demand side, GDP is equivalent to the sum of entries in the uses column of the goods and services account less imports (the first entry on the resources side of the account) in the integrated accounts. Flows of exports and imports of goods and services are defined, in terms of coverage, in virtually identical fashion in the SNA and the Manual. 49. In viewing—for both institutional sectors and the total economy—the generation of income, the allocation of primary income, the secondary distribution of income, and the redistribution of income in kind, readers should note that, apart from income flows generated domestically and included in the measure of gross value added or GDP, there are income flows to or from the rest of the world. These flows (in the form of compensation of employees; property income; taxes on production and imports; current taxes on income, wealth, etc.; and other current transfers) constitute additional sources of income. These additional sources of income are included in the measurement of sectoral and national disposable income and, consequently, in sectoral and national saving—the balancing item between disposable income and final consumption. In terms of the balance of payments, compensation of employees and property income flows comprise the income category, while taxes and other current transfers are identical with the coverage of current transfers. 50. Accumulation activity of the total economy and domestic institutional sectors is portrayed, in the SNA, in the capital and financial accounts. The capital account shows (i) sources of financing accumulation (saving and net capital transfers) on the changes in liabilities side; (ii) the composition of investment (gross or net) which takes into account the consumption of fixed capital (capital formation) on the changes in assets side; and (iii) acquisitions less disposals of nonproduced, nonfinancial assets. Changes in net worth that result from saving and net capital transfers represent the sum of sources of financing accumulation. The balancing item between sources of financing and the sum of net capital formation and net purchases of nonproduced, nonfinancial assets constitutes net lending/net borrowing for each sector and the nation as a whole. Net capital transfers (capital transfers receivable less capital transfers payable) for each sector contain both intersectoral flows and transactions with the rest of the world. Within the total economy, however, intersectoral flows cancel each other so that the net flow constitutes transactions relating only to the rest of the world. In the balance of payments, net lending/net borrowing for the total economy corresponds to the sum of the current account balance and the balance on capital account transactions within the capital and financial account. The measure of net lending/net borrowing for the total economy also represents net financial investment vis-à-vis the rest of the world. In the integrated accounts, net lending/net borrowing for the total economy is equivalent to amounts shown in columns for the rest of the world. However, because the rest of the world columns are viewed from the perspective of nonresidents and balance of payments accounts are viewed from that of the compiling economy, changes in assets of the rest of the world represent changes in liabilities of the compiling economy, and vice versa. 51. According to the guidelines for residence (see Chapter 4), transactions in land can only take place between resident entities. When a nonresident entity (other than a foreign government or international organization acquiring land for use as an extraterritorial enclave) acquires land in the domestic economy, the acquisition is considered a financial investment (included in net incurrence of liabilities) in a notional resident enterprise. 52. The financial account of the SNA shows the net acquisition of financial assets and the net incurrence of liabilities. Transactions in financial assets and liabilities for each institutional sector and the total economy encompass those among domestic sectors and those related to the rest of the world. Consolidated domestic flows cancel each other so that transactions for the economy as a whole are (i) accounted for by transactions vis-à-vis the rest of the world and (ii) equal to flows shown in columns for the rest of the world. In the balance of payments, transactions (from the viewpoint of the compiling economy) in the financial account of the capital and financial account correspond to entries in columns for the financial account of the rest of the world, but changes in assets of the rest of the world represent changes in liabilities for the compiling economy and vice versa. 53. The linkage between key aggregates of accounts of the total economy and balance of payments flows can, by the use of symbols, be summarized algebraically within a savings/investment framework. [ \\begin{align\} C &= \\text{private consumption expenditure} \\ G &= \\text{government consumption expenditure} \\ I &= \\text{gross domestic investment} \\ S &= \\text{gross saving} \\ X &= \\text{exports of goods and services} \\ M &= \\text{imports of goods and services} \\ NY &= \\text{net income from abroad} \\ GDP &= \\text{gross domestic product} \\ GNDY &= \\text{gross national disposable income} \\ CAB &= \\text{current account balance in the balance of payments} \\ NCT &= \\text{net current transfers} \\ NKT &= \\text{net capital transfers} \\ NPNNA &= \\text{net purchases of nonproduced, nonfinancial assets} \\ NFI &= \\text{net foreign investment or net lending/net borrowing vis-à-vis the rest of the world} \\end{align\} ] Balance of payments flows are italicized in the following equations. [ \\begin{align\} \\text{GDP} &= C + G + I + X - M \\ (X - M &= \\text{balance on goods and services in the balance of payments}) \\ \\text{CAB} &= X - M + NY + NCT \\ \\text{GNDY} &= C + G + I + \\text{CAB} \\ \\text{GNDY} - C - G &= S \\ S &= I + \\text{CAB} \\ S - I &= \\text{CAB} \\ S - I + NKT - NPNNA &= \\text{CAB} + NKT - NPNNA = \\text{NFI} \\ (NKT - NPNNA &= \\text{balance on the capital account of the balance of payments}) \\end{align\} ] 54. Balance sheet accounts for the total economy and domestic institutional sectors depict the level and composition of the stock of assets and liabilities at the beginnings and ends of appropriate reference periods. 55. The difference between the sum of assets and the sum of liabilities equals the net worth of the economy and the sectors. In the integrated accounts, financial assets and liabilities recorded in columns for the total economy are an aggregation of the financial assets and liabilities of individual sectors; balance sheet accounts of a nation as a whole are not fully consolidated. If accounts were fully consolidated, the financial assets and liabilities of domestic sectors would cancel each other, and the economy’s financial assets and liabilities would refer to the stock of external assets and liabilities (the international investment position). From that perspective, the national wealth or net worth of an economy consists of its stock of nonfinancial assets plus the net international investment position (stock of external assets minus stock of external liabilities). The IIP also may be derived from the integrated accounts column for assets and liabilities of the rest of the world. As the IIP viewpoint is that of the compiling economy, the assets of the rest of the world represent liabilities of the compiling economy and vice versa. 56. Appendix 1 contains a discussion of the relationship of (i) various SNA accounts pertaining to the rest of the world to (ii) balance of payments accounts and the IIP. Because there is concordance between the underlying principles of the two systems, the focus of Appendix 1 is on classification issues and ways of constructing bridges to derive relevant national accounts flows and stocks from balance of payments accounts and the IIP. ## INTEGRATED ECONOMIC ACCOUNTS — CURRENT ACCOUNTS ### USES \| Accounts \| Total \| Goods and services (resources) \| S.2 Rest of world \| S.1 Total economy \| S.15 Nonprofit institutions serving households \| S.14 Households \| S.13 General government \| S.12 Financial corporations \| S.11 Nonfinancial corporations \| \|----------\|-------\|--------------------------------\|-------------------\|-------------------\|-----------------------------------------------\|----------------\|------------------------\|-----------------------------\|-------------------------------\| \| I. PRODUCTION/EXTERNAL ACCOUNT OF GOODS AND SERVICES \| \| \| \| \| \| \| \| \| \| \| II.1.1 GENERATION OF INCOME ACCOUNT \| \| \| \| \| \| \| \| \| \| \| II.1.2 ALLOCATION OF PRIMARY INCOME ACCOUNT \| \| \| \| \| \| \| \| \| \| \| II.2 SECONDARY DISTRIBUTION OF INCOME ACCOUNT \| \| \| \| \| \| \| \| \| \| \| II.3 REDISTRIBUTION OF INCOME IN KIND ACCOUNT \| \| \| \| \| \| \| \| \| \| \| II.4 USE OF INCOME ACCOUNT \| \| \| \| \| \| \| \| \| \| ## INTEGRATED ECONOMIC ACCOUNTS — CURRENT ACCOUNTS \| Code \| Transactions and Balancing Items \| S.11 Nonfinancial corporations \| S.12 Financial corporations \| S.13 General government \| S.14 Households \| S.15 Nonprofit institutions serving households \| S.1 Total economy \| S.2 Rest of the world \| Goods and services (uses) \| Total \| Accounts \| \|------\|----------------------------------\|-------------------------------\|----------------------------\|------------------------\|----------------\|-----------------------------------------------\|------------------\|----------------------\|--------------------------\|-------\|----------\| \| P.7 \| Imports of goods and services \| \| \| \| \| \| \| \| \| \| I.1.1 \| \| P.6 \| Exports of goods and services \| \| \| \| \| \| \| \| \| \| GENERATION OF INCOME ACCOUNT \| \| P.1 \| Output \| \| \| \| \| \| \| \| \| \| II.1.2. \| \| P.2 \| Intermediate consumption \| \| \| \| \| \| \| \| \| \| ALLOCATION OF PRIMARY INCOME ACCOUNT \| \| D.21-D.31 \| Taxes less subsidies on products \| \| \| \| \| \| \| \| \| \| II.2 \| \| B.1g/B.1\g \| Value added, gross/Gross domestic product \| \| \| \| \| \| \| \| \| \| SECONDARY DISTRIBUTION OF INCOME ACCOUNT \| \| K.1 \| Consumption of fixed capital \| \| \| \| \| \| \| \| \| \| II.3 \| \| B.1n \| VALUE ADDED, NET/NET DOMESTIC PRODUCT \| \| \| \| \| \| \| \| \| \| REDISTRIBUTION OF INCOME IN KIND ACCOUNT \| \| B.11 \| EXTERNAL BALANCE OF GOODS AND SERVICES \| \| \| \| \| \| \| \| \| \| II.4 \| \| D.1 \| Compensation of employees \| \| \| \| \| \| \| \| \| \| USE OF INCOME ACCOUNT \| \| D.2-D.3 \| Taxes less subsidies on production and imports \| \| \| \| \| \| \| \| \| \| \| \| D.21-D.31 \| Taxes less subsidies on products \| \| \| \| \| \| \| \| \| \| \| \| D.29-D.39 \| Other taxes less subsidies on production \| \| \| \| \| \| \| \| \| \| \| \| B.2g \| Operating surplus, gross \| \| \| \| \| \| \| \| \| \| \| \| B.3g \| Mixed income, gross \| \| \| \| \| \| \| \| \| \| \| \| B.2n \| OPERATING SURPLUS, NET \| \| \| \| \| \| \| \| \| \| \| \| B.3n \| MIXED INCOME, NET \| \| \| \| \| \| \| \| \| \| \| \| D.4 \| Property income \| \| \| \| \| \| \| \| \| \| \| \| B.5g \| Balance of primary incomes, gross/National income, gross \| \| \| \| \| \| \| \| \| \| \| \| B.5n \| BALANCE OF PRIMARY INCOMES NET/NATIONAL INCOME, NET \| \| \| \| \| \| \| \| \| \| \| \| D.5 \| Current taxes on income, wealth, etc. \| \| \| \| \| \| \| \| \| \| \| \| D.61 \| Social contributions \| \| \| \| \| \| \| \| \| \| \| \| D.62 \| Social benefits other than social transfers in kind \| \| \| \| \| \| \| \| \| \| \| \| D.7 \| Other current transfers \| \| \| \| \| \| \| \| \| \| \| \| B.6g \| Disposable income, gross \| \| \| \| \| \| \| \| \| \| \| \| B.6n \| DISPOSABLE INCOME, NET \| \| \| \| \| \| \| \| \| \| \| \| D.63 \| Social transfers in kind \| \| \| \| \| \| \| \| \| \| \| \| B.7g \| Adjusted disposable income, gross \| \| \| \| \| \| \| \| \| \| \| \| B.7n \| ADJUSTED DISPOSABLE INCOME, NET \| \| \| \| \| \| \| \| \| \| \| \| B.6g \| Disposable income, gross \| \| \| \| \| \| \| \| \| \| \| \| B.6n \| DISPOSABLE INCOME, NET \| \| \| \| \| \| \| \| \| \| \| \| P.4 \| Actual final consumption \| \| \| \| \| \| \| \| \| \| \| \| P.3 \| Final consumption expenditure \| \| \| \| \| \| \| \| \| \| \| \| D.8 \| Adjustment for the change in net equity of households in pension funds \| \| \| \| \| \| \| \| \| \| \| \| B.8g \| Saving, gross \| \| \| \| \| \| \| \| \| \| \| \| B.8n \| SAVING, NET \| \| \| \| \| \| \| \| \| \| \| \| B.12 \| CURRENT EXTERNAL BALANCE \| \| \| \| \| \| \| \| \| \| \| ## INTEGRATED ECONOMIC ACCOUNTS — ACCUMULATION ACCOUNTS ### CHANGES IN ASSETS \| Accounts \| Total \| Goods and services (resources) \| S.2 Rest of world \| S.1 Total economy \| S.15 Nonprofit institutions serving households \| S.14 Households \| S.13 General government \| S.12 Financial corporations \| S.11 Nonfinancial corporations \| \|----------\|-------\|---------------------------------\|-------------------\|-------------------\|-----------------------------------------------\|----------------\|------------------------\|-----------------------------\|-------------------------------\| \| III.1 \| \| \| \| \| \| \| \| \| \| \| CAPITAL ACCOUNT \| \| \| \| \| \| \| \| \| \| \| III.2 \| \| \| \| \| \| \| \| \| \| \| FINANCIAL ACCOUNT \| \| \| \| \| \| \| \| \| \| \| III.3.1. \| \| \| \| \| \| \| \| \| \| \| OTHER CHARGES IN VOLUME OF ASSETS ACCOUNT \| \| \| \| \| \| \| \| \| \| \| III.3.2 \| \| \| \| \| \| \| \| \| \| \| REVALUATION ACCOUNT \| \| \| \| \| \| \| \| \| \| ## INTEGRATED ECONOMIC ACCOUNTS — ACCUMULATION ACCOUNTS ### CHANGES IN LIABILITIES AND NET WORTH \| Code \| Transactions and Balancing Items \| S.11 Nonfinancial corporations \| S.12 Financial corporations \| S.13 General government \| S.14 Households \| S.15 Nonprofit institutions serving households \| S.1 Total economy \| S.2 Rest of the world \| Goods and services (uses) \| Total \| Accounts \| \|--------\|-------------------------------------------------------------------------------------------------\|--------------------------------\|------------------------------\|-------------------------\|-----------------\|-----------------------------------------------\|-------------------\|------------------------\|--------------------------------\|-------\|----------\| \| B.8 \| SAVING, NET \| \| \| \| \| \| \| \| \| \| III.1 \| \| B.12 \| CURRENT EXTERNAL BALANCE \| \| \| \| \| \| \| \| \| \| CAPITAL ACCOUNT \| \| P.51 \| Gross fixed capital formation \| \| \| \| \| \| \| \| \| \| \| \| K.1 \| Consumption of fixed capital (–) \| \| \| \| \| \| \| \| \| \| \| \| P.52 \| Changes in inventories \| \| \| \| \| \| \| \| \| \| \| \| P.53 \| Acquisitions less disposals of valuables \| \| \| \| \| \| \| \| \| \| \| \| K.2 \| Acquisitions less disposals of nonproduced, nonfinancial assets \| \| \| \| \| \| \| \| \| \| \| \| D.9 \| Capital transfers, receivable \| \| \| \| \| \| \| \| \| \| \| \| D.9 \| Capital transfers, payable (–) \| \| \| \| \| \| \| \| \| \| \| \| B.10.1 \| CHANGES IN NET WORTH DUE TO SAVING AND CAPITAL TRANSFERS \| \| \| \| \| \| \| \| \| \| \| \| B.9 \| NET LENDING (+)/NET BORROWING (–) \| \| \| \| \| \| \| \| \| \| \| \| F \| Net acquisition of financial assets \| \| \| \| \| \| \| \| \| \| III.2 \| \| F.1 \| Monetary gold and SDRs \| \| \| \| \| \| \| \| \| \| FINANCIAL ACCOUNT \| \| F.2 \| Currency and deposits \| \| \| \| \| \| \| \| \| \| \| \| F.3 \| Securities other than shares \| \| \| \| \| \| \| \| \| \| \| \| F.4 \| Loans \| \| \| \| \| \| \| \| \| \| \| \| F.5 \| Shares and other equity \| \| \| \| \| \| \| \| \| \| \| \| F.6 \| Insurance technical reserves \| \| \| \| \| \| \| \| \| \| \| \| F.7 \| Other accounts receivable/payable \| \| \| \| \| \| \| \| \| \| \| \| K.3 \| Other volume changes, total \| \| \| \| \| \| \| \| \| \| III.3.1. \| \| K.10 \| Other volume changes in financial assets and liabilities n.e.c. \| \| \| \| \| \| \| \| \| \| OTHER CHANGES IN VOLUME OF ASSETS ACCOUNT \| \| K.12 \| Changes in classifications and structure \| \| \| \| \| \| \| \| \| \| \| \| AN \| Nonfinancial assets \| \| \| \| \| \| \| \| \| \| \| \| AN.1 \| Produced assets \| \| \| \| \| \| \| \| \| \| \| \| AN.2 \| Nonproduced assets \| \| \| \| \| \| \| \| \| \| \| \| AF \| Financial assets/liabilities \| \| \| \| \| \| \| \| \| \| \| \| B.10.2 \| CHANGES IN NET WORTH DUE TO OTHER CHANGES IN VOLUME OF ASSETS \| \| \| \| \| \| \| \| \| \| III.3.2 \| \| K.11 \| Nominal holding gains/losses \| \| \| \| \| \| \| \| \| \| REVALUATION ACCOUNT \| \| AN \| Nonfinancial assets \| \| \| \| \| \| \| \| \| \| \| \| AN.1 \| Produced assets \| \| \| \| \| \| \| \| \| \| \| \| AN.2 \| Nonproduced assets \| \| \| \| \| \| \| \| \| \| \| \| AF \| Financial assets/liabilities \| \| \| \| \| \| \| \| \| \| \| \| B.10.3 \| CHANGES IN NET WORTH DUE TO NOMINAL HOLDING GAINS (+)/LOSSES (–) \| \| \| \| \| \| \| \| \| \| \| ## INTEGRATED ECONOMIC ACCOUNTS — BALANCE SHEETS ### ASSETS \| Accounts \| Total \| Goods and services (resources) \| S.2 Rest of world \| S.1 Total economy \| S.15 Nonprofit institutions serving households \| S.14 Households \| S.13 General government \| S.12 Financial corporations \| S.11 Nonfinancial corporations \| \|----------\|-------\|---------------------------------\|-------------------\|-------------------\|-----------------------------------------------\|-----------------\|------------------------\|-----------------------------\|-------------------------------\| \| IV.1 OPENING BALANCE SHEET \| \| \| \| \| \| \| \| \| \| \| IV.2 CHANGES IN BALANCE SHEET \| \| \| \| \| \| \| \| \| \| \| IV.3 CLOSING BALANCE SHEET \| \| \| \| \| \| \| \| \| \| ## INTEGRATED ECONOMIC ACCOUNTS — BALANCE SHEETS \| Code \| Transactions and Balancing Items \| S.11 Nonfinancial corporations \| S.12 Financial corporations \| S.13 General government \| S.14 Households \| S.15 Nonprofit institutions serving households \| S.1 Total economy \| S.2 Rest of the world \| Goods and services (uses) \| Total \| Accounts \| \|------\|----------------------------------\|--------------------------------\|-----------------------------\|-------------------------\|----------------\|-----------------------------------------------\|------------------\|----------------------\|----------------------------\|-------\|----------\| \| AN \| Nonfinancial assets \| \| \| \| \| \| \| \| \| \| IV.1 \| \| AN.1 \| Produced assets \| \| \| \| \| \| \| \| \| \| OPENING \| \| AN.2 \| Nonproduced assets \| \| \| \| \| \| \| \| \| \| BALANCE \| \| AF \| Financial assets/liabilities \| \| \| \| \| \| \| \| \| \| SHEET \| \| B.90 \| NET WORTH \| \| \| \| \| \| \| \| \| \| \| \| \| Total changes in assets \| \| \| \| \| \| \| \| \| \| IV.2 \| \| AN \| Nonfinancial assets \| \| \| \| \| \| \| \| \| \| CHANGES \| \| AN.1 \| Produced assets \| \| \| \| \| \| \| \| \| \| IN BALANCE\| \| AN.2 \| Nonproduced assets \| \| \| \| \| \| \| \| \| \| SHEET \| \| AF \| Financial assets/liabilities \| \| \| \| \| \| \| \| \| \| \| \| B.10 \| CHANGES IN NET WORTH, TOTAL \| \| \| \| \| \| \| \| \| \| IV.3 \| \| B.10.1\| SAVING AND CAPITAL TRANSFERS \| \| \| \| \| \| \| \| \| \| CLOSING \| \| B.10.2\| OTHER CHANGES IN VOLUME OF ASSETS\| \| \| \| \| \| \| \| \| \| BALANCE \| \| B.10.3\| NOMINAL HOLDING GAINS (+)/ \| \| \| \| \| \| \| \| \| \| SHEET \| \| \| LOSSES (–) \| \| \| \| \| \| \| \| \| \| \| \| AN.1 \| Nonfinancial assets \| \| \| \| \| \| \| \| \| \| IV.3 \| \| AN.2 \| Produced assets \| \| \| \| \| \| \| \| \| \| CLOSING \| \| AF \| Nonproduced assets \| \| \| \| \| \| \| \| \| \| BALANCE \| \| \| Financial assets/liabilities \| \| \| \| \| \| \| \| \| \| SHEET \| \| B.90 \| NET WORTH \| \| \| \| \| \| \| \| \| \| \| Concept and Definition of Residence 57. Residence is a particularly important attribute of an institutional unit in the balance of payments because the identification of transactions between residents and nonresidents underpins the system. Residence is also important in the SNA because the residency status of producers determines the limits of domestic production and affects the measurement of GDP and many important flows. 58. The concept of residence used in this Manual is identical to that used in the SNA. The concept is not based on nationality or legal criteria, although it may be similar to concepts of residence used for exchange control, tax, and other purposes in many countries. The concept of residence is based on a sectoral transactor’s center of economic interest. Moreover, country boundaries recognized for political purposes may not always be appropriate for economic purposes. Therefore, it is necessary to recognize the economic territory of a country as the relevant geographical area to which the concept of residence is applied. An institutional unit is a resident unit when it has a center of economic interest in the economic territory of a country. Economic Territory of a Country 59. The economic territory of a country consists of the geographic territory administered by a government; within this territory, persons, goods, and capital circulate freely. In a maritime country, economic territory includes islands that belong to the country and are subject to the same fiscal and monetary authorities as the mainland; goods and persons move freely to and from the mainland and the islands without any customs or immigration formalities. The economic territory of a country includes the airspace, territorial waters, and continental shelf lying in international waters over which the country enjoys exclusive rights and has, or claims to have, jurisdiction over fishing rights and rights to fuels or minerals below the sea bed. The economic territory of a country also includes territorial enclaves in the rest of the world. These are clearly demarcated land areas (such as embassies, consulates, military bases, scientific stations, information or immigration offices, aid agencies, etc.) located in other countries and used by governments that own or rent them for diplomatic, military, scientific, or other purposes with the formal political agreement of governments of countries where the land areas are physically located. While goods or persons may move freely between a country and its territorial enclaves located abroad, such goods or persons become subject to control by governments of the countries where the goods or persons are located if they move out of the enclaves. In addition, economic territory includes free zones and bonded warehouses or factories operated by offshore enterprises under customs control. (These are considered part of the economic territory of the country in which the free zones, etc. are physically located.) 60. The economic territory of an international organization (see paragraph 88 for characteristics) consists of territorial enclave(s) over which the organization has jurisdiction; these are clearly demarcated land areas or structures that the international organization owns or rents and uses for organizational purposes formally agreed upon with the country, or countries, in which the enclave(s) are physically located. 61. Therefore, although territorial enclaves used by foreign governments or international organizations may be physically located within a country’s geographical boundaries, such enclaves are not included in the country’s economic territory. Center of Economic Interest 62. An institutional unit has a center of economic interest within a country when there exists, within the economic territory of the country, some location, dwelling, place of production, or other premises on which or from which the unit engages and intends to continue engaging, either indefinitely or over a finite but long period of time, in economic activities and transactions on a significant scale. The location need not be fixed so long as it remains within the economic territory. 63. In most cases, it is reasonable to assume that an institutional unit has a center of economic interest in a country if the unit has already engaged in economic activities and transactions on a significant scale in the country for one year or more, or if the unit intends to do so. The conduct of economic activities and transactions over a period of one year normally implies a center of interest, but the choice of any specific period of time is somewhat arbitrary. The one-year period is suggested only as a guideline and not as an inflexible rule. 64. Ownership of land and structures located within a country’s economic territory is sufficient qualification for the owner to have a center of economic interest in the country. Land and buildings can only be used for purposes of production in the country where they are located and their owners, in their capacity as owners, are subject to the laws and regulations of that country. However, an owner who is resident in another country may not have any economic interest, other than ownership of land or buildings, in the country where the land or buildings are located. In that case, the owner is treated as if he has transferred his ownership to a notional institutional unit that is actually resident in the country. The notional unit is treated as being owned and controlled by the nonresident owner—much as a quasi-corporation is owned and controlled by its owner. Rents and rentals paid by the tenants of the land or buildings are paid to the notional resident unit; in turn, this unit transfers the income to the actual nonresident owner. Resident Institutional Units 65. The sectors of an economy are composed of two main types of institutional units: (i) households and individuals who make up a household and (ii) legal and social entities, such as corporations and quasi-corporations (e.g., branches of foreign direct investors), nonprofit institutions, and the government of that economy. These institutional units must meet certain criteria to be considered resident units of the economy. Residence of Households and Individuals 66. A household has a center of economic interest when household members maintain, within the country, a dwelling or succession of dwellings treated and used by members of the household as their principal residence. All individuals who belong to the same household must be residents of the same country. If a member of an existing household ceases to reside in the country where his or her household is resident, the individual ceases to be a member of that household. 67. If a resident household member leaves the economic territory and returns to the household after a limited period of time, the individual continues to be a resident even if he or she makes frequent journeys outside the economic territory. The individual’s center of economic interest remains in the economy in which the household is resident. Treated as residents are travelers or visitors—individuals who leave an economic territory for limited periods of time (less than one year) for business or personal purposes (see paragraphs 71, 243, and 244); workers or employees—individuals who work some or all of the time in economic territories that differ from those of their resident households. Such individuals are workers who may, because of seasonal demand for labor, work part of the year in another country and then return to their households; border workers who regularly (each day) or somewhat less regularly (e.g., each week) cross frontiers to work in neighboring countries; staff of international organizations who work in the enclaves of those organizations; locally recruited staff of foreign embassies, consulates, military bases, etc.; crews of ships, aircraft, or other mobile equipment operating partly or wholly outside an economic territory. 68. An individual may cease being a member of a resident household when he or she works continuously for one year or more in a foreign country. If the individual rejoins his or her original household only for infrequent short visits and sets up a new household or joins a household in the country where he or she works, the individual can no longer be treated as a member of the original household. Most of the individual’s consumption takes place in the country where he or she lives or works, and the individual clearly has a center of economic interest there. 69. Even if an individual continues to be employed and paid by an enterprise that is resident in his or her home country, that person should normally be treated as a resident in the host country if he or she works continuously in the host country for one year or more. In these circumstances, the person should be treated as an employee of a quasi-corporation owned by the enterprise and resident in the country where the work takes place. Technical assistance personnel on long-term assignments should be treated as residents of the countries where they work and as employees of their host governments, of international organizations functioning on behalf of governments, or of international organizations actually financing the technical assistance work. Transfers of funds should be imputed from the governments or international organizations that actually employ the technical assistance personnel to the host governments to cover the cost of salaries, allowances, transportation expenses, administrative costs, etc. related to the technical assistance personnel. 70. The situation differs for military personnel and civil servants (including diplomats) employed abroad in government enclaves. Those enclaves—military bases, embassies and the like—form part of the economic territory of the employing government, and the personnel often live as well as work in the enclaves. Therefore, government employees working in such enclaves continue to have centers of economic interest in their home countries while, and however long, they work in the enclaves. They continue to be residents in their home countries even if they live in dwellings outside the enclaves. 71. However long they study abroad, students should be treated as residents of their countries of origin, as long as they remain members of households in their home countries. In these circumstances, their centers of economic interest remain in their countries of origin rather than in the countries where they study. Medical patients staying abroad are also treated as residents of their countries of origin, even if their stays are one year or more, as long as they remain members of households in their countries of origin. 72. Some individuals have several international residences where they may remain for short periods (e.g., three months in each of four countries) during a specific year. For these individuals, the centers of economic interest often are international rather than designated economies. While consideration should be given to such factors as tax status, citizenship (can be dual), etc., this Manual and the SNA do not recommend a specific treatment. The choice is left to the discretion of the economies concerned. The treatment should be coordinated, if possible, to foster international comparability. Residence of Enterprises 73. An enterprise is said to have a center of economic interest and to be a resident unit of a country (economic territory) when the enterprise is engaged in a significant amount of production of goods and/or services there or when the enterprise owns land or buildings located there. The enterprise must maintain at least one production establishment in the country and must plan to operate the establishment indefinitely or over a long period of time. Together with other considerations covered in paragraph 78, a guideline of one year or more, to be applied flexibly, is suggested. Definition and activity 74. The term enterprise, as used in this Manual, is inclusive of the terms corporation and quasi-corporation as defined in the SNA. A corporation is a legal entity created for the purpose of producing goods or services for the market. A corporation may be a source of profit or other financial gain to its owner(s). A corporation is collectively owned by shareholders who have the authority to appoint directors responsible for the general management of the corporation. Owned by a resident or a nonresident institutional unit, a quasi-corporation is an unincorporated enterprise that is operated as if it were a separate corporation with a complete set of accounts. The de facto relationship of a quasi-corporation to its owner is the same as that of a corporation to its shareholders. (For purposes of sectoring, in the SNA, quasi-corporations are treated as corporations—that is, as institutional units separate from the units to which the quasi-corporations legally belong.) Types of enterprises 75. Enterprises may be either privately owned and/or controlled, publicly owned and/or controlled, or controlled by residents and/or nonresidents. Enterprises may be financial or nonfinancial institutions. 76. In accord with the preceding definition, private enterprises include (i) incorporated enterprises (e.g., corporations, joint stock companies, limited liability partnerships, cooperatives, or other business associations recognized as independent legal entities by virtue of registration under company and similar acts, laws, or regulations); (ii) unincorporated enterprises; and (iii) nonprofit institutions. 77. Public enterprises are (i) unincorporated government enterprises and (ii) public corporations incorporated by virtue of company acts or other public acts, special legislation, or administrative regulations. Public corporations hold and manage the financial assets and liabilities, as well as the tangible and nonfinancial intangible assets, that are involved in corporation business. Both government enterprises and public corporations sell to the public most of the goods or services they produce. The principal public monetary institution, which issues currency and (sometimes) coin and is commonly the chief holder of the country’s international reserves, is usually the central bank—the publicly owned and/or controlled monetary authority. Attribution of production* 78. Production undertaken outside the economic territory of a resident enterprise by the personnel, plant, and equipment of that resident enterprise is treated as part of host country production and the enterprise is treated as a resident unit (branch or subsidiary) of that country if the enterprise meets the conditions noted in paragraph 73. In addition, the enterprise must, among other considerations, maintain a complete and separate set of accounts of local activities (i.e., income statement, balance sheet, transactions with the parent enterprise), pay income taxes to the host country, have a substantial physical presence, receive funds for enterprise work for the enterprise account, etc. If these conditions are not met, the activity should be classified as an export of services by a resident enterprise. Production can generate such an export only if the production is classified as domestic production (undertaken by a resident even though the physical process takes place outside the economic territory). These considerations also apply to the particular case of construction activity carried out abroad by a resident producer. Special mention should be made of construction involving major specific projects (bridges, dams, power stations, etc.) that often take several years to complete and are carried out and managed by nonresident enterprises through unincorporated site offices. In most instances, site offices will meet the criteria that require site office production to be treated (as would that of a branch or affiliate) as the production of a resident unit and as part of the production of the host economy rather than as an export of services to that economy. 79. Offshore enterprises engaged in manufacturing processes (including assembly of components manufactured elsewhere) are residents of the economies in which the offshore enterprises are located. This statement applies regardless of location in special zones of exemption from customs or other regulations or concessions. The statement also applies to nonmanufacturing operations (i.e., trading and financial enterprises), including so-called special purpose enterprises. (See paragraphs 365 and 381.) Units operating mobile equipment 80. Principles used to determine the residence of an enterprise are likewise applicable to an enterprise that operates mobile equipment outside the economic territory where the enterprise is resident. (The mobile equipment could consist of ships, aircraft, drilling rigs and platforms, railway rolling stock, etc.) Such operations may take place in (i) international waters or airspace or (ii) another economy. In the first case (an enterprise with operations taking place in international waters or airspace), the activities should be attributed to the economy in which the operator maintains residence. In the second case (an enterprise with production taking place in another economy), the enterprise may be considered to have a center of economic interest in the other economy. Thus, if the enterprise is accounted for separately by the operator and is recognized as a separate enterprise by tax and licensing authorities of the other economy, production should be attributed to the economy in which the production occurs. Otherwise, production is attributed to the original operator’s country of residence. If operations (such as a railway network) are carried out by an enterprise on a regular and continuing basis in two or more countries, the enterprise is deemed to have a center of economic interest in each country and thus to have separate resident units in each. The enterprises must also be accounted for separately by the operator and recognized as separate enterprises by tax and licensing authorities in each country of operation. In cases involving the leasing of mobile equipment to one enterprise by another for a long or indefinite period, the lessee enterprise is deemed to be the operator, and activities are attributed to the country where the lessee is resident. 81. For ships flying flags of convenience, it is often difficult to determine the residence of the operating enterprise. There may be complex arrangements involving ownership, mode of operation, and chartering of such ships. In addition, the country of registry differs, in most instances, from the operator’s (or owner’s) country of residence. Nonetheless, in principle, the shipping activity is attributed to the country of residence of the operating enterprise. If an enterprise establishes, for tax or other considerations, a branch (direct investment) in another country to manage the operation, the operation is attributed to the resident (branch) operating in that country. 82. In certain exceptional cases, it may be difficult to determine the residence of an enterprise that operates mobile equipment. For example, the enterprise may consist of a corporation that is registered in two or more countries as a result of being established through special legislation enacted cooperatively by two or more governments. Such enterprises may be treated in two ways. All of the corporation’s transactions may be allocated to the countries of registry in proportion to the amounts of financial capital that the countries have contributed or in proportion to their shares in the equity of the corporation. Alternatively, the corporation may be treated as a resident of the country where corporation headquarters are located. Corporation premises in other countries would be treated as foreign branches (direct investment enterprises) and classified as residents of the countries where the premises are located. The first method is preferable, but both ways of treating such corporations are consistent with the general principles of the Manual and the SNA. The choice between methods may be made, with reference to consistent treatment by partner countries, on the basis of statistical convenience. Agents 83. Transactions of agents should be attributed to the economies of principals on whose behalf the transactions are undertaken and not to the economies of agents representing or acting on behalf of principals. However, services rendered by agents to enterprises represented should be attributed to the economies in which the agents are residents. Residence of Nonprofit Institutions 84. A nonprofit institution (NPI) is resident in the country or economic territory where the NPI has a center of economic interest. In most instances, this center of economic interest lies in the country where the NPI was legally created and is officially recognized and recorded as a legal or social entity. In practice, residence of the vast majority of NPIs may be determined without ambiguity. However, when an NPI is engaged in charity or relief work on an international scale, it is necessary to specify the residence of any branches the NPI may maintain for dispensing relief in individual countries. If an NPI maintains a branch or unit for one year or more in a particular country, that branch or unit should be considered a resident NPI that is financed largely or entirely by transfers from abroad. General Government 85. General government agencies that are residents of an economy include all departments, establishments, and bodies located in the economic territory of an economy’s central, state, and local governments and all embassies, consulates, military establishments, and other entities, which are located elsewhere, of an economy’s general government. 86. The general government of an economy covers all unclassified agencies of the public authorities. Such agencies include government departments, offices, and other bodies (whether these are covered in ordinary or extraordinary budgets or in extrabudgetary funds) that engage in administration, defense, and regulation of the public order; promotion of economic growth, welfare, and technological development; and provision of educational, health, cultural, recreational, and other social and community services free of charge or at sales prices that do not cover most or all of the costs of production. Also included are other nonprofit organizations serving individuals or business enterprises that are wholly, or mainly, financed and controlled by the public authorities and nonprofit organizations primarily serving government bodies. This category covers, as well, social security arrangements that are imposed, controlled, or financed by the government for large sections of the community. These arrangements include voluntary social security arrangements for certain sections of the community and pension funds that are considered part of public social security schemes. Such agencies may be unincorporated government enterprises that primarily produce goods and services for the government or primarily sell goods and services to the public. In addition, there are public, nonmonetary saving and lending bodies that are financially integrated with a government or that lack the authority to acquire financial assets or incur liabilities in the capital market. 87. Embassies, consulates, military establishments, and other entities of a foreign general government are considered extraterritorial by the economies in which the embassies, etc. are physically located. When resident producers of an economy construct embassies, structures, or other works in an extraterritorial enclave, the construction is part of the production and exports of the economy in which the enclave is located. Wages and salaries paid to locally recruited staff of foreign diplomatic, military, and other establishments are payments to residents of the economies in which these establishments are located. 88. International organizations that do not qualify as enterprises (see paragraph 74) form part of foreign general government for balance of payments purposes. Most political, administrative, economic, social, or financial institutions in which the members are governments (or other international organizations with memberships consisting of governments) do not qualify as enterprises. International organizations are created for the purpose of engaging in one, or both, of the following activities: (i) the provision of nonmarket services of a collective nature for the benefit of members and/or (ii) financial intermediation, or the channeling of funds between lenders and borrowers in different economies. International organizations are established by political agreement among organization members. Such agreements have the status of international treaties. International organizations are accorded appropriate privileges and immunities and are not subject to the laws and regulations of the economies in which the organizations are located. Thus, such bodies are not considered residents of any national economy, including the economies in which the organizations are located or conduct affairs. The international organizations are treated as extraterritorial entities by those economies. (However, pension funds operated by these bodies are treated as residents of the economies in which the organizations are located.) Nevertheless, the employees of these bodies are residents of national economies—specifically, of the economies in which they are expected to maintain their abodes for one year or more. In most cases, that economy will be the one in which the particular international unit is located or the one in which the employee is engaged in technical assistance or other activities on behalf of the international organization. Wages and salaries paid by international organizations to their employees are payments to residents of the economies in which the employees are stationed for one year or more. (For the treatment of technical assistance personnel, see paragraph 69.) 89. In contrast, enterprises owned jointly by two or more governments are not treated as international bodies but are, like other enterprises, considered to be residents of the economic territories where the enterprises operate. Regional Central Banks 90. A regional central bank is an international financial institution that acts as a common central bank for a group of member countries. Such a bank has headquarters in one country and maintains national offices in each member country. Each national office acts as the central bank for that country and must be treated as an institutional unit that is separate from the headquarters institution. Each national office is a resident unit of the country where the office is located. The financial assets and liabilities of a regional central bank should be allocated among the national offices. The allocation should be made in proportion to the claims that such offices have over the bank’s collective assets. Valuation of Transactions and of Stocks V. of Assets and Liabilities Concept of Market Price 91. A uniform system of valuation for the international accounts—for valuation of (i) transactions in real resources and financial assets and liabilities and (ii) stocks of assets and liabilities—is required for the compilation of aggregates of such statistics on a consistent basis and for international comparability purposes. The recommendation in this Manual is that market price be used as the basis of valuation for both transactions and stocks. Thus, transactions are generally valued at the actual prices agreed upon by transactors; stocks of assets and liabilities are valued at market prices in effect at the time to which the balance sheet relates. (See paragraphs 93, etc. for discussion of instances in which the concept may be impractical or difficult to apply.) These principles are in accord with those presented in the SNA. Transactions and Market Price 92. In the frameworks of the balance of payments and the national accounts, market prices for transactions are defined as amounts of money that willing buyers pay to acquire something from willing sellers; the exchanges are made between independent parties and on the basis of commercial considerations only. Thus, according to this strict definition, a market price refers only to the price for one specific exchange under the stated conditions. A second exchange of an identical unit, even under circumstances that are almost exactly the same, could result in a different market price. A market price defined in this way is to be clearly distinguished from a price quoted in the market, a world market price, a going price, a fair market price, or any price that is intended to express the generality of prices for a class of supposedly identical exchanges rather than a price actually applying to a specific exchange. Furthermore, a market price should not necessarily be construed as equivalent to a free market price; that is, a market transaction should not be interpreted as occurring exclusively in a purely competitive market situation. In fact, a market transaction could take place in a monopolistic, monopsonistic, or any other market structure. Indeed, the market may be so narrow that it consists of the sole transaction of its kind between independent parties. Valuing Transactions in the Absence of Market Price 93. Although conditions necessary for establishing market prices are probably present for most transactions with which the balance of payments is concerned, there may be situations in which one or more of the essential elements is lacking. Some common circumstances under which a market price, in the literal sense, cannot be readily determined are: - a direct exchange of goods for other goods rather than for money (barter); - a transaction that occurs despite the fact that one party does not enter into the transaction willingly (tax payments); - a transaction in which a buyer and seller are the same entity from a legal standpoint but constitute separate entities under balance of payments conventions (a branch and the parent enterprise); - a transaction between separate legal entities that are not independent (affiliated enterprises); - a transaction in which a legal change of ownership between the two parties involved does not actually occur (goods transferred under a financial lease arrangement); - a transaction that often involves private, nonprofit entities or general government bodies as one or both of the parties, that contains at least some element of a gift or grant, and that is undertaken for other than purely commercial considerations. 94. The examples enumerated in paragraph 93 are by no means all-inclusive or mutually exclusive. In any particular case, a market price may not exist because more than one of the conditions necessary to establish it are absent. Market Price Equivalents 95. For purposes of balance of payments recording, therefore, it is sometimes necessary to resort to the expedient of developing proxies, or substitute measures, for market prices when no actual market prices have been set. 96. A customary approach is to construct such prices by analogy with known market prices established under conditions that are considered essentially the same. For example, if a buyer and a seller engage in a barter transaction—the exchange of goods or services for other goods, services, or assets (of equal value)—the goods or services bartered should be valued at the prices that would have been received if the goods or services had been sold (e.g., a standard market quotation). This approach must be limited to those transactions to which the approach is really applicable. Transactions that are superficially alike may, in fact, be subject to implicit or concealed factors that strongly affect the values that should be placed on them. Affiliated Enterprises 097. Transactions between affiliated enterprises integrated under the same management cannot necessarily be considered market transactions because of the lack of independence among the parties to the exchange. Whether or not the transactions portrayed in the books of the enterprises actually reflect market values can only be judged for each individual enterprise. To the extent that a group of affiliated enterprises desires to allocate its gross earnings in a realistic fashion among its separate units, bookkeeping practices would have to reflect market-related pricing for all purchases and sales by the units. In that situation, the view might reasonably be taken that pricing adopted for bookkeeping purposes, often referred to as transfer pricing, is no different from, or is equivalent to, market valuation. On the other hand, transfer pricing not based closely on market considerations could be expected to be common among affiliated enterprises conducting business across national boundaries because disparities between taxes and regulations imposed by different governments are a factor in management decisions on the optimum allocation of profits among units. In those circumstances, it cannot be presumed that the mode of valuation used will accurately reflect economic relationships (e.g., the ratio of income to capital). When the distortions are large, replacement of book values with market value equivalents is desirable in principle. 098. The attempt to substitute market values for book values, however, raises questions about procedure and the propriety of pricing measures substituted. Indeed, a value approximating the market price frequently will be difficult to estimate. The values to be placed on transactions among affiliated units are not necessarily equal to the market prices for any similar transactions of those units with outside parties because, by definition, market prices are established in response to demand and supply conditions prevailing in each specific market. Commodities that are otherwise physically indistinguishable might be viewed differently from a market standpoint and therefore have different market prices. For example, goods transferred to an affiliate might represent components but, if sold to outside parties, could constitute spare parts. 099. In determining how far a transfer price deviates from or approximates a market price, the relevant comparison is not necessarily between (i) the book value for the transfer of something from one affiliate to another and (ii) the market price for the sale of the same thing by an affiliate to an outsider. A transfer between affiliates may be evaluated by measuring from the relative position of the transfer in the chain of production to the point of actual sale to an independent party. The comparison could be made in terms of costs embodied up to that stage of production. Therefore, a transfer price that does not seem commensurate with production costs incurred up to that stage is probably not an adequate proxy for a market price. If the transfer price covers the costs of production, the transfer price could be accepted as a suitable proxy for a market price, even though the transfer price is different from the price charged for a similar exchange between the affiliate and an independent party. Production cost information available in the books of an affiliate may, of course, be affected by the use of transfer pricing for the input of goods and services acquired from other affiliates. 100. The exchange of commodities between affiliated enterprises may often be one that does not occur between independent parties (for example, specialized components that are usable only when incorporated in a finished product). Similarly, the exchange of services, such as management services and technical know-how, may have no near equivalents in the types of transactions in services that usually take place between independent parties. Thus, for transactions between affiliated parties, the determination of values comparable to market values may be very difficult, and compilers may have no choice other than to accept valuations based on explicit costs incurred in production or any other values assigned by the enterprise. Such values will probably not be entirely arbitrary as the tax, customs, exchange control, and other public authorities usually exercise some influence over the accounting practices of these enterprises in order to establish conformance with government regulations by affiliated and independent enterprises. 101. Because balance of payments accounting is based on the axiom of double entries, any substitution should, in principle, be applied consistently in the statement. If, for example, the book value of goods shipped from a direct investment enterprise to the parent is to be replaced by a market value equivalent, the double entry rule requires that the direct investment income and/or financial flows also be adjusted by the same amount. 102. In view of practical difficulties involved in substituting an imputed or notional market value for an actual transfer value, substitution should be the exception rather than the rule. If certain transfer prices are so divorced from those of similar transactions that the transfer prices significantly distort measurement, the prices should either be replaced by market price equivalents or be separately identified for analytical purposes. 103. Selection of the best market value equivalents to replace book values is an exercise calling for cautious and informed judgment. In most cases, sample surveys, contacts with enterprises and government agencies engaging in international transactions on a large scale, exchanges of information between compilers in partner countries, or similar statistical research will be necessary to provide the basis for such judgment. Noncommercial Transactions 104. One important category of transaction that is, by definition, noncommercial and thus has no market price is the provision of an economic value for which the offset constitutes a transfer. In such a transaction, one party receives a real or financial asset from another party and, in return, provides nothing of economic value. In addition to outright gifts, other transactions may take place at implied prices that include some element of grant or concession so that those prices also are not market prices. Examples of such transactions could include negotiated exchanges of goods between governments and government loans bearing lower interest rates than those consistent with grace and repayment periods or other terms for purely commercial loans. Transactions by general government bodies and private, nonprofit entities not engaged in purely commercial undertakings are often subject to noncommercial considerations. Transfers may also be provided or received, however, by other sectors of the economy. 105. When real resources are transferred, without a quid pro quo, to nonresidents by the government or private, nonprofit institutions of an economy, the same values must be reflected in the balance of payments of both recipient and donor. In conformity with the procedure used for the national accounts, such resources should be valued at the market prices that would have been received if the resources had been sold. Imputations made in this way may not always approximate the desired basis of valuation. The donor’s view of the imputed value of the transaction will often be quite different from that of the recipient. The suggested rule of thumb is to use the value assigned by the donor as a basis for recording. Financial Items 106. Transactions in financial items should be recorded in the balance of payments at the prices at which the items are acquired or disposed of. If financial items are traded in an organized market and if the buyer and seller deal with each other through an agent, the prices established in the market—which will probably be the prices recorded in the statistics in any case—will meet the definition of a market price for purposes of the balance of payments. If financial items are not traded in the market, however, application of the market price concept may not be so apparent. In fact, cash items (currency and transferable deposits that can be redeemed on demand at the nominal values) have only one value that could be assigned for any purpose, so this value could be regarded as the actual market price. Market prices to be imputed to nonmarketable financial items, which are primarily loans in one form or another, are the nominal values. However, if a secondary market in such items is created and the items become marketable, often—as in the case of loans to some heavily debt-burdened countries—at substantial discounts from nominal values, those market prices should be recorded for transactions in such loans. (For details on related valuation adjustments, debt/equity swaps, etc., see paragraphs 456 and 471.) Valuation of financial items in the balance of payments should exclude any service charges, fees, commissions, or income; these amounts should be recorded in the appropriate component of the current account. Valuation of Stocks of Assets and Liabilities 107. In principle, all asset and liability stocks comprising a country’s international investment position should be measured at market prices. This concept assumes that such stocks are continuously (regularly) revalued—for example, by reference to actual market prices for financial assets such as shares and bonds or, in the case of direct investment, by reference to enterprise balance sheets. 108. The market price measurement cannot always be implemented because of the absence of regular revaluations. For example, balance sheet value is often the only valuation available or reported for direct investment. That value might be assigned on the basis of original cost, a more recent revaluation, or current value. (The use of current value would be in accordance with the market price principle.) When direct investment enterprises are listed on stock exchanges, the listed prices should be used as the market values of shares in those enterprises. VI. Time of Recording Principle of Timing 109. In the double-entry system of the balance of payments, two entries must be recorded simultaneously for each transaction. Simultaneous recording ensures that both entries show the transaction occurring at the same time, that is, on the same date. Determination of the time, or date, when a transaction occurs is governed by rules. 110. A typical transaction consists of a series of actions. For example, a party may engage in a set of actions and transactions by entering into a formal agreement to provide goods or services, by acquiring a claim for payments, and by receiving settlement on that claim. 111. All of the actions that make up a transaction are significant from an economic standpoint, and some can be assigned specific dates (date of contract or commitment, for example). In addition, an action—such as entering into a contract—may establish parameters for subsequent transactions—such as settlement by payment or other considerations. However, in balance of payments accounts (and in the SNA), transactions are recorded when economic value is created, transformed, exchanged, transferred, or extinguished. The time of recording for a transaction is governed by the principle of accrual accounting. Claims and liabilities arise when there is a change in ownership. The change may be a legal one or a physical or economic one involving control or possession. 112. If an exchange of resources involves a change of ownership, double-entry recording of both sides of the exchange is required. Two stages of the exchange may be involved: (i) provision of one resource accompanied by the acquisition of a financial claim on the recipient of the resource, and (ii) provision of the other resource accompanied by extinguishment of the claim. 113. Because a double-entry system is used to record balance of payments transactions, it is especially important to establish a principle for determining the time when the two sides of a transaction should be entered in the accounts. The principle helps to ensure simultaneous recording of the entries. When a change in ownership is not obvious, the change is considered to occur at (or is proxied by) the time the parties to the transaction record it in their books or accounts. In practice, however, the two entries for a transaction often are derived independently from different sources and accounting records, and conventions for time of recording for the participants in that transaction may differ. Consequently, simultaneous recording of the two sides may not be achieved. Application to Goods 114. (Also see Chapter 10.) Trade statistics, by convention or necessity, often are recorded on the basis of customs documents reflecting the physical movement of goods across the national or customs frontier of an economy. Actual movement of the goods may not occur at the same time as the change, between a resident and a nonresident, in ownership of the goods. Likewise, an exchange record system that reflects payments may not coincide in timing with the change in ownership of the goods. The change in ownership, as noted in paragraph 123, is considered to occur at (or is proxied by) the time the parties to the transaction record it in their books or accounts. Thus, goods for export are generally considered to change ownership when the exporter ceases to carry the goods on his books as a real asset and makes a corresponding change in his financial items. Goods for import are considered to change ownership when the importer enters the goods on his books as a real asset and makes a corresponding change in his financial items. This convention is designed to promote consistency between goods and the financial account in the balance of payments of the compiling country, as well as consistency between the compilation of goods by exporting and importing countries. 115. Under this convention, it is seldom difficult to perceive the time at which ownership of an asset changes. Numerous transactions consist of an exchange, such as goods for financial assets, between two enterprises. Accounting entries will be made in each company’s books for this exchange; the entries will show the same dates for acquisition of the goods and relinquishment of the financial asset, on the one hand, and for acquisition of the financial asset and relinquishment of the goods, on the other. Ideally, the entries should be dated the same by both parties. This treatment provides a fixed point of time to which a balance of payments transaction may be related. 116. However, even when this convention is followed, the two parties to a transaction may not enter it in their books at the same time. As a result, differences in timing and possible inconsistencies arise between the compilations of partner countries. 117. In practice, trade statistics based on customs documents reflecting physical movement of goods across national or customs frontiers may be used in the absence of other statistics to approximate, by showing evidence of physical possession, the timing of changes in ownership. 118. When the provision of a real resource and a related extension of credit are involved, each transaction should be recorded in the balance of payments at the time it occurs. That is, when an importer turns over cash (a prepayment) to an exporter before he acquires ownership of the goods, records must also show the importer’s acquisition of a claim, which remains outstanding for the duration of the interim period, on the exporter. Similarly, when an importer makes a postpayment some time after he acquires goods, records must show the importer’s interim liability to the exporter. These claims and liabilities are extinguished in due course; that is, in the first instance, by the delivery of the goods and, in the second, by the cash payment made for the goods. The creation and the extinguishing of an obligation, as well as the change in ownership of goods and payment for the goods, are shown in the balance of payments in the periods in which each occurs. Exceptions to the Change of Ownership Principle 119. Some goods transactions are recorded in the balance of payments even though no change of legal ownership occurs. Among such transactions are those that involve goods under financial lease arrangements (see paragraph 206) and goods shipped between the parent of a direct investment enterprise and branches or affiliates (see paragraph 205). For both parties to achieve simultaneous recording in such transactions, it is recommended that the entries be dated, whenever possible, as of the day that most closely approximates the change in physical possession of the goods. For financial leases, commencement of the leases would best approximate the change in control and possession. For affiliated transactions, dates of entry in the books of the entities involved would be appropriate. 120. Another exception to the change of ownership principle relates to goods that are sent abroad for processing but do not change ownership. For purposes of recording in the rest of the world account of the SNA, goods sent abroad for processing that involves a substantial physical change are distinguished from other processing. In the SNA, goods sent abroad for processing and reclassified, upon return, in a different three-digit group of the Central Product Classification (CPC) are included, on a gross basis, under goods. The value of other processing is recorded under services. Although that concept is recognized in this Manual, because of practical difficulties in implementation, it is recommended that all processing of goods that cross the frontier be recorded, on a gross basis, under goods. The processing may be performed abroad (and involve the export of a good and its subsequent re-import) or performed in the compiling economy (and involve an import and subsequent export). Further elaboration of the treatment of goods for processing (and of the value of repairs on goods) appears in paragraphs 197 through 200. Applications to Other Transactions 121. Transactions in services are generally recorded when the services are rendered (delivered or received); these dates often coincide with dates on which the services are produced. In some instances, there may be prepayments or postpayments for such services (freight, insurance, port services, etc.). Entries in the appropriate accounts should then be made (as explained in paragraph 118). Under investment income, interest is recorded on an accrual basis, which is a continuous method of recording that matches the cost of capital with the provision of capital. If the interest is not actually paid, an entry is required, together with an offsetting credit entry in the financial account for the claim associated with nonpayment (i.e., an increase in liabilities). The two entries are particularly important for zero coupon and other deep discounted bonds. The difference between the issue price and the value at maturity is treated, on an accrual basis, as interest over the life of the bond. (See paragraph 396 for details.) Dividends are recorded as of the dates payable. Reinvested earnings on direct investment are recorded in the periods when earned. 122. One party may impose various taxes, fines, and other components of transfers on another party. These amounts are recorded upon the occurrence of underlying transactions or other flows that give rise to the liabilities. In some instances, taxes on income may be recorded in a subsequent period. (See paragraph 307.) Other transfers are recorded when the resources (goods, services, financial items) to which the transfers provide offsets change ownership. 123. Transactions in financial items are considered to have taken place when both creditor and debtor have entered the claim and liability, respectively, in their books. A date (the value date) may actually be specified to ensure matching entries in the books of both parties. If no precise date can be fixed, the date on which the creditor receives payment or some other financial claim is decisive. Loan drawings are entered in the accounts when actual disbursements are made; loan repayments are entered when due for payment. For loan repayments not made, entries are recorded as if repayments of the contractual obligations were made. In addition, entries are recorded for (i) replacements by new liabilities that are short-term (for immediate payment) or (ii) replacements by new loans, if the original loans are subject to rescheduling or other special financing arrangements associated with balance of payments difficulties in an economy. (See paragraphs 454 through 458 for comments relating to exceptional financing.) Other Timing Adjustments 124. In choosing among available statistical sources, compilers may wish to consider the advantage of using data for which the correct timing is already recorded. For example, records of actual drawings on loans are preferable to sources that quote authorization dates or program dates that may not be realized in fact. Even sources chosen by compilers as generally the most suitable may not have been specifically designed to yield balance of payments information. 125. Timing adjustments to trade statistics may be necessary because trade statistics do not reflect physical movements correctly in all cases. (However, systematic defects of that sort would not create noticeable errors unless the value of trade changed sharply from period to period.) Timing adjustments could be necessary, for example, if compilers of trade accounts cease recording monthly statistics before all customs declarations have been tabulated and defer the recording of the remainder to the following month. When practices of this sort lead to distortions, the amounts should be estimated and timing adjustments applied. 126. A change in the ownership of goods can vary widely from the time at which the goods are recorded in trade statistics if a lengthy voyage is part of the process of importing or exporting. If the unit value of trade changes substantially from the beginning to the end of the reporting period, the possible difference of one or two months between the shipment or receipt of goods and the change of ownership can be a source of error in the statement for a particular country and a source of asymmetries between partner countries. No empirical basis has been established for presuming that ownership normally changes either at the beginning or the end of a voyage. Inquiries, perhaps on a sample basis, are required to ascertain specific practices, and timing adjustments should, in principle, be applied to correct the trade statistics for those classes of goods that are found to change ownership at times other than those at which the goods were recorded in the trade statistics. 127. Goods on consignment (goods intended for sale but not actually sold when the goods cross the frontier) should, in principle, be included in goods only at the time ownership changes. Such goods are often recorded, on the assumption that a change of ownership has occurred or will shortly occur, at the time the goods cross the frontier. If that treatment is followed and there is no change of ownership, the goods will subsequently have to be recorded again as a deduction from exports and imports. VII. Unit of Account and Conversion 128. The compilation of balance of payments and international investment position statements is complicated by the fact that the values of transactions in real resources and financial items and the values of components of stocks of external financial assets and liabilities may be expressed initially in a variety of currencies or in other standards of value, such as SDRs or European currency units (ECUs). The conversion of these values into a reference unit of account (usually the national currency of the compiler) is a requisite for the construction of consistent and analytically meaningful statements. In addition, a standard or universal unit of account is necessary to allow for aggregation on a global or regional basis and to facilitate international comparisons. Unit of Account 129. There are two viewpoints, not mutually exclusive, as to the necessary attributes of a unit of account—that of the national compiler and that of international organizations, such as the International Monetary Fund. From the perspective of the national compiler, the national currency unit is the obvious choice for the balance of payments and international investment position statements. Statements so denominated are compatible with the national accounts and most of the economy’s other economic and monetary statistics expressed in that unit. Also, some statistics (such as customs returns for goods, banking data, and direct investment estimates) will already have been converted from foreign currencies to the national currency and/or be expressed in the national unit when such statistics are reported to the compiler. However, if the currency is subject to significant depreciation relative to other currencies involved in the international transactions of the economy, a statement denominated in national currency would be of diminished analytical value. For example, if transactions are expressed in national currency, apparent growth in current transactions could be the result of an unstable national currency that has depreciated in comparison with currencies actually used for the transactions. Such a circumstance might complicate the analysis of balance of payments developments. 130. From the perspective of international organizations such as the IMF, a standard unit of account is required for global presentation and analysis. It is preferable that the unit of account be a stable one; that is, values of international transactions expressed in that unit should not be significantly affected by changes (relative to the unit of account) in values of currencies in which those transactions occur. Transactions expressed in a unit that is stable in this sense nonetheless may reflect price changes resulting from other causes; that is, a series expressed in a so-called stable unit of account is not the equivalent of a volume or constant price series. Another consideration is the convenience of using a unit (such as the U.S. dollar or SDR) that is reasonably familiar to most users of balance of payments statistics. The theoretical ideal of a widely recognized and perfectly stable standard unit of account simply does not exist. 131. For reporting to the IMF, countries are requested to compile statements in the unit of account adopted for national use. A country that employs a multiple exchange rate system and prepares a statement in national currency should do so by utilizing one of several methods suggested in this chapter. (See paragraphs 134 and 135.) The IMF may, for its purposes, convert countries’ statements into the universal unit considered most suitable in existing circumstances. That unit may be periodically changed according to developments in the relationships among transactions currencies and according to the time span covered by balance of payments statistics for which a unit of account is selected. Conversion Principles and Practices 132. In concordance with the principles defined in this Manual and in the SNA for time of recording and valuation, the most appropriate exchange rates to be used for conversion of balance of payments entries from transaction currencies into units of account are the market rates prevailing on the transaction dates. If those market rates are not available, the average rates for the shortest period applicable should be used. The midpoint between buying and selling rates should be used so that any service charge—the spread between the midpoint and those rates—is excluded. When forward contracts are utilized to hedge or protect transactors against changes in exchange rates, such transactions are conceptually distinct from those involved with the acquisition or sale of goods, services, or financial items from or to nonresidents. Execution of the contract is virtually simultaneous with the change of ownership or delivery of the underlying asset. If there is a difference between the prevailing exchange rate and the actual rate of conversion established by the forward contract (or other financial derivative), that difference is reflected in a separate transaction related to the contract (derivative). 133. For conversion of data on stocks of external financial assets and liabilities, the market exchange rates prevailing on the date to which the balance sheet relates (i.e., the midpoint between the buying and selling spot rates) is recommended. Multiple Official Exchange Rates and Conversion 134. Under a multiple exchange rate regime, two or more exchange rates are applicable to different categories of transactions; the rates favor some categories and discourage others. Such rates incorporate elements similar to taxes or subsidies. Because the multiple rates influence the values and the undertaking of transactions expressed in national currency, net proceeds implicitly accruing to authorities as a result of these transactions are calculated as implicit taxes or subsidies. The amount of the implicit tax or subsidy for each transaction can be calculated as the difference between the value of the transaction in national currency at the actual exchange rate applicable and the value of the transaction at a unitary rate that is calculated as a weighted average of all official rates used for external transactions. 135. A unitary rate might be used for conversion by an economy that has a multiple exchange rate system (and wishes to express its balance of payments statements in the national currency) to avoid expressing transactions at values including elements of transfers between residents and authorities. Although the unitary rate may approximate a single official rate that would exist in the absence of multiple rates, this single calculated rate may not approximate any equilibrium or market rate. As a result, the calculated implicit taxes, subsidies, or transfers may not fully reflect the impact of a multiple or rate system. Thus, from a purely conceptual point of view, the usefulness of the unitary rate for conversion is somewhat limited. Another alternative is the use of a principal rate (the actual exchange rate applying to the largest part of external transactions) for conversion. 136. For conversion of stocks of external financial assets and liabilities in a multiple rate system, the actual exchange rate applicable to specific assets or liabilities at the beginning or end of the accounting period is used. Black or Parallel Market Rates 137. Parallel (unofficial) or black market rates cannot be ignored in the context of a multiple rate regime and can be treated in different ways. For instance, if there is one official rate and a parallel market rate, the two should be handled separately; transactions should be converted at the exchange rate for each. If there are multiple official rates and a parallel rate, the official rates and the parallel rate should be treated as distinct markets in any calculation of a unitary rate. The multiple official rates, which involve implicit official taxes, subsidies, or transfers, should be used to calculate a weighted average rate that can serve as the basis for estimating the tax or subsidy component of the various rates. (See paragraph 134.) Transactions effected at the parallel rate usually should be separately converted at that rate. However, in some instances, parallel markets may be considered effectively integrated with the official exchange rate regime. Such is the case when most or all transactions in the parallel market are sanctioned by the authorities and/or when the authorities actively intervene in the market to affect the parallel rate. In this instance, the calculation of the unitary rate should include both the official and parallel market rates. If only limited transactions in the parallel market are sanctioned by the authorities, the parallel rate should not be included in the calculation of a unitary rate. 138. The midpoint between buying and selling rates in the parallel market should be calculated (separately from official rates) for conversion so that any service charge is excluded. The same practice is recommended for official rates. (See paragraph 132.) Revenues obtained from trading currencies between official and parallel markets are treated as holding (capital) gains. Balance of Payments Structure and Classification Structure and Classification 139. Part two of this Manual deals with the structure and classification of balance of payments accounts and the international investment position. Part two encompasses the standard components of both sets of accounts and contains discussions and elaboration of the current account, the capital and financial account, selected supplementary information, and the international investment position. 140. Balance of payments statistics must be arranged within a coherent structure to facilitate their utilization and adaptation for multiple purposes—policy formulation, analytical studies, projections, bilateral comparisons of particular components or total transactions, regional and global aggregations, etc. (See paragraph 7.) 141. The structure and classification of balance of payments standard components reflect conceptual and practical considerations, take into account views expressed by national balance of payments experts, and are in general concordance with the SNA and with harmonization of the expanded classification of international transactions in services with the Central Product Classification (CPC). (See Appendix 3.) 142. The classification system also reflects efforts to link the structure of the financial account to that of the income accounts and that of the international investment position. The scheme is designed as a flexible framework to be used by many countries in the long-term development of external statistics. Some countries may not be able to provide data for many items; other countries may be able to provide additional data. Standard Components 143. The determination of standard components (see the table at end of this chapter) is based on a number of considerations. The following list comprises those that have been given the greatest weight: The item should exhibit distinctive behavior. The economic factor or factors that influence the item should be different from those that influence other items, or the item should respond differently to the same factor or combination. This response to economic influences is what the balance of payments purports to make evident. The item should be important for a number of countries. Importance may be defined as a function of behavior (unusual variability, for example) or as absolute size. It should be possible to collect statistics for the item without undue difficulty. However, the desirability of collection should be evaluated according to the two previous criteria. The item should, on a separate basis, be necessary for other purposes—such as incorporation into, or reconciliation with, the national accounts. The list of standard components should not be unduly long. A large number of countries, including many that are statistically less advanced, are asked to report uniformly on the components. To the extent practicable, standard components should be in concordance with, and apply to, other IMF statistical systems, the SNA, and—for services in particular—the CPC. 144. The list of standard components carries no implication that recommendations made in this Manual are intended to inhibit countries from compiling and publishing additional data of national importance. IMF requests for information will not be limited to standard components when further details are required to understand the circumstances of particular countries or to analyze new developments. Supplementary information can also be most useful for verifying and reconciling the statistics of partner countries and, for example, analyzing exceptional financing transactions. (See the Selected Supplementary Information table at the end of this chapter.) IMF staff will, from time to time, consult with countries to decide on the reporting of additional details. 145. Few countries are likely to have significant information to report for every standard component. Furthermore, several components may be available only in combination, or a minor component may be grouped with one that is more significant. The standard components should nevertheless be reported to the IMF as completely and accurately as possible. National compilers are in better positions than IMF staff to make estimates and adjustments for components that do not exactly correspond to the basic series of the compiling economy. Net Errors and Omissions 146. Application of the principles presented in this Manual should result in a consistent body of positive and negative entries with a net (conceptual) total of zero. In practice, however, when all actual entries are totaled, the resulting balance will almost inevitably show a net credit or a net debit. That balance is the result of errors and omissions in the compilation of statements. Some errors and omissions may be related to recommendations for practical applications approximating principles. 147. In balance of payments statements, the standard practice is to show a separate item for net errors and omissions. Labeled by some compilers as a balancing item or statistical discrepancy, that item is intended as an offset to the overstatement or understatement of the recorded components. Thus, if the balance of those components is a credit, the item for net errors and omissions will be shown as a debit of equal value, and vice versa. 148. Sometimes the errors and omissions that occur in the course of compilation offset one another. Therefore, the size of the residual item does not necessarily provide any indication of the overall accuracy of the statement. Nonetheless, interpretation of the statement is hampered by a large net residual. Major Classifications 149. The standard components, which are listed at the end of this chapter, are comprised of two main groups of accounts: The current account pertains to goods and services, income, and current transfers. The capital and financial account pertains to (i) capital transfers and acquisition or disposal of nonproduced, nonfinancial assets and (ii) financial assets and liabilities. This arrangement is based on historical precedent common in most countries and on a major change introduced in this Manual. The former capital account is renamed and becomes the capital and financial account. Reflecting harmonization with the SNA, this change introduces that system’s distinction between capital transfers and current transfers into the balance of payments and concordance of the accounts with the capital and financial accounts of the SNA. 150. Most items entered in the current account of the standard components should show gross debits and credits. Most entries in the capital and financial account should be made on a net basis; that is, each component should be shown only as a credit or a debit. (Recommended treatments for specific items and exceptions are discussed in appropriate chapters.) Inflows of real resources, increases in financial assets, and decreases in liabilities should be shown as debits; outflows of real resources, decreases in financial assets, and increases in liabilities should be shown as credits. Transfers, both in sections 1.C and 2.A, should be numerically equal with opposite sign to the entries for which the transfers provide offsets. Detailed Classifications 151. The following classifications of standard components have been developed in accordance with the criteria set out in paragraph 143. The structure and characteristics of the current account and the capital and financial account and significant changes from the fourth to the fifth edition of the Manual are discussed in chapters 9 and 16, respectively. The standard components of the current account are described fully in chapters 10 through 15, and those of the capital and financial account are covered in chapters 17 through 21. Current Account (1.) 152. Covered in the current account are all transactions (other than those in financial items) that involve economic values and occur between resident and nonresident entities. Also covered are offsets to current economic values provided or acquired without a quid pro quo. Specifically, the major classifications are goods and services, income, and current transfers. Goods and services (1.A.) Goods (1.A.a.) 153. General merchandise covers most movable goods that residents export to, or import from, nonresidents and that, with a few specified exceptions, undergo changes in ownership (actual or imputed). 154. Goods for processing covers exports (or, in the compiling economy, imports) of goods crossing the frontier for processing abroad and subsequent re-import (or, in the compiling economy, export) of the goods, which are valued on a gross basis before and after processing. The treatment of this item in the goods account is an exception to the change of ownership principle. 155. Repairs on goods covers repair activity on goods provided to or received from nonresidents on ships, aircraft, etc. Although the physical movement of these goods is similar to that described in paragraph 154, the repairs are valued at the prices (fees paid or received) of the repairs and not at the gross values of the goods before and after repairs are made. 156. Goods procured in ports by carriers covers all goods (such as fuels, provisions, stores, and supplies) that resident/nonresident carriers (air, shipping, etc.) procure abroad or in the compiling economy. The classification does not cover auxiliary services (towing, maintenance, etc.), which are covered under transportation. 157. Nonmonetary gold covers exports and imports of all gold not held as reserve assets (monetary gold) by the authorities. Nonmonetary gold is treated the same as any other commodity and, when feasible, is subdivided into gold held as a store of value and other (industrial) gold. Services (1.A.b.) 158. Transportation covers most of the services that are performed by residents for nonresidents (and vice versa) and that were included in shipment and other transportation in the fourth edition of the Manual. However, freight insurance is now included with insurance services rather than with transportation. Transportation includes freight and passenger transportation by all modes of transportation and other distributive and auxiliary services, including rentals of transportation equipment with crew. Certain exceptions are noted in chapters 10, 11, and 13. 159. Travel covers goods and services—including those related to health and education—acquired from an economy by nonresident travelers (including excursionists) for business and personal purposes during their visits (of less than one year) in that economy. Travel excludes international passenger services, which are included in transportation. Students and medical patients are treated as travelers, regardless of the length of stay. Certain others—military and embassy personnel and nonresident workers—are not regarded as travelers. However, expenditures by nonresident workers are included in travel, while those of military and embassy personnel are included in government services n.i.e. These cases are noted in chapters 12–13. 160. Communications services covers communications transactions between residents and nonresidents. Such services comprise postal, courier, and telecommunications services (transmission of sound, images, and other information by various modes and associated maintenance provided by/residents for/by nonresidents). 161. Construction services covers construction and installation project work that is, on a temporary basis, performed abroad/in the compiling economy or in extraterritorial enclaves by resident/nonresident enterprises and associated personnel. Such work does not include that undertaken by a foreign affiliate of a resident enterprise or by an unincorporated site office that, if it meets certain criteria, is equivalent to a foreign affiliate. Such residency aspects are covered in chapters 4 and 13. 162. Insurance services covers the provision of insurance to nonresidents by resident insurance enterprises and vice versa. This item comprises services provided for freight insurance (on goods exported and imported), services provided for other types of direct insurance (including life and non-life), and services provided for reinsurance. (For the method of calculating the value of insurance services, see paragraphs 256 and 257.) 163. Financial services (other than those related to insurance enterprises and pension funds) covers financial intermediation services and auxiliary services conducted between residents and nonresidents. Included are commissions and fees for letters of credit, lines of credit, financial leasing services, foreign exchange transactions, consumer and business credit services, brokerage services, underwriting services, arrangements for various forms of hedging instruments, etc. Auxiliary services include financial market operational and regulatory services, security custody services, etc. 164. Computer and information services covers resident/nonresident transactions related to hardware consultancy, software implementation, information services (data processing, data base, news agency), and maintenance and repair of computers and related equipment. 165. Royalties and license fees covers receipts (exports) and payments (imports) of residents and nonresidents for (i) the authorized use of intangible nonproduced, nonfinancial assets and proprietary rights—such as trademarks, copyrights, patents, processes, techniques, designs, manufacturing rights, franchises, etc. and (ii) the use, through licensing agreements, of produced originals or prototypes—such as manuscripts, films, etc. 166. Other business services provided by residents to nonresidents and vice versa covers merchanting and other trade-related services; operational leasing services; and miscellaneous business, professional, and technical services. (See the Selected Supplementary Information table at the end of this chapter and paragraphs 261 through 264 for details.) 167. Personal, cultural, and recreational services covers (i) audiovisual and related services and (ii) other cultural services provided by residents to nonresidents and vice versa. Included under (i) are services associated with the production of motion pictures on films or video tape, radio and television programs, and musical recordings. (Examples of these services are rentals and fees received by actors, producers, etc. for productions and for distribution rights sold to the media.) Included under (ii) are other personal, cultural, and recreational services—such as those associated with libraries, museums—and other cultural and sporting activities. 168. Government services n.i.e. covers all services (such as expenditures of embassies and consulates) associated with government sectors or international and regional organizations and not classified under other items. Income (1.B.) 169. Compensation of employees covers wages, salaries, and other benefits, in cash or in kind, and includes those of border, seasonal, and other nonresident workers (e.g., local staff of embassies). 170. Investment income covers receipts and payments of income associated, respectively, with residents' holdings of external financial assets and with residents' liabilities to nonresidents. Investment income consists of direct investment income, portfolio investment income, and other investment income. The direct investment component is divided into income on equity (dividends, branch profits, and reinvested earnings) and income on debt (interest); portfolio investment income is divided into income on equity (dividends) and income on debt (interest); other investment income covers interest earned on other capital (loans, etc.) and, in principle, imputed income to households from net equity in life insurance reserves and in pension funds. Current transfers (1.C.) 171. Current transfers are distinguished from capital transfers, which are included in the capital and financial account in concordance with the SNA treatment of transfers. Transfers are the offsets to changes, which take place between residents and nonresidents, in ownership of real resources or financial items and, whether the changes are voluntary or compulsory, do not involve a quid pro quo in economic value. Current transfers consist of all transfers that do not involve (i) transfers of ownership of fixed assets; (ii) transfers of funds linked to, or conditional upon, acquisition or disposal of fixed assets; (iii) forgiveness, without any counterparts being received in return, of liabilities by creditors. All of these are capital transfers. Current transfers include those of general government (e.g., current international cooperation between different governments, payments of current taxes on income and wealth, etc.), and other transfers (e.g., workers' remittances, premiums—less service charges, and claims on non-life insurance). A full discussion of the distinction between current transfers and capital transfers appears in Chapter 15; see also paragraphs 175 and 344. Capital and Financial Account (2.) 172. The capital and financial account has two major components—the capital account and the financial account—that are in concordance with those same accounts in the SNA. Assets represent claims on nonresidents, and liabilities represent indebtedness to nonresidents. The two parties to a transaction in assets or liabilities are usually a resident and a nonresident but, in some instances, both parties may both be residents or nonresidents. (See paragraph 318.) 173. All valuation changes and all other changes that do not reflect transactions (see paragraph 310) in foreign assets and liabilities are excluded from the capital and financial account but reflected in the international investment position. Supplementary statements identify certain items that are of analytical interest and affect various accounts. Examples of such items are liabilities constituting foreign authorities' reserves and exceptional financing transactions, which are discussed in Chapter 22. 174. Classification of the financial account and the income components of the current account are interrelated and must be consistent to facilitate analysis, to form an effective link between the balance of payments and the international investment position, and to be compatible with the SNA and other IMF statistical systems. Capital account (2.A.) 175. The major components of the capital account are capital transfers and acquisition/disposal of nonproduced, nonfinancial assets. Capital transfers consist of those involving transfers of ownership of fixed assets; transfers of funds linked to, or conditional upon, acquisition or disposal of fixed assets; or cancellation, without any counterparts being received in return, of liabilities by creditors. Capital transfers include two components: (i) general government, which is subdivided into debt forgiveness and other, and (ii) other, which is subdivided into migrants’ transfers, debt forgiveness, and other transfers. (See Chapter 15 for a discussion of the distinction between capital transfers and current transfers.) Acquisition/disposal of nonproduced, nonfinancial assets largely covers intangibles—such as patented entities, leases or other transferable contracts, goodwill, etc. This item does not cover land in a specific economic territory but may include the purchase or sale of land by a foreign embassy. (See paragraph 312.) Financial account (2.B.) 176. The classification of standard components in the financial account is based on these criteria: All components are classified according to type of investment or by functional subdivision (direct investment, portfolio investment, other investment, reserve assets). For the category of direct investment, there are directional distinctions (abroad or in the reporting economy) and, for the equity capital and other capital components within this category, asset or liability distinctions. For the categories of portfolio investment and other investment, there are the customary asset or liability distinctions. Particularly significant for portfolio investment and other investment is the distinction by type of instrument (equity or debt securities, trade credits, loans, currency and deposits, other assets or liabilities). In this Manual, traditional and new money market and other financial instruments and derivatives are included in portfolio investment. For portfolio investment and other investment, there are distinctions by sector of the domestic creditor for assets and by sector of the domestic debtor for liabilities. These distinctions serve to facilitate links with the income accounts, the international investment position, the SNA, and other statistical systems. The traditional distinction, which is based on original contractual maturity of more than one year or one year or less, between long- and short-term assets and liabilities applies only to other investment. In recent years, the significance of this distinction has clearly diminished for many domestic and international transactions. Consequently, the long- and short-term distinction is accorded less importance in the SNA and in this Manual than in previous editions. However, because the maturity factor remains important for specific purposes—analysis of external debt, for example—it is retained in this Manual for other investment. 177. Direct investment—reflecting the lasting interest of a resident entity in one economy (direct investor) in an entity resident in another economy (direct investment enterprise)—covers all transactions between direct investors and direct investment enterprises. That is, direct investment covers the initial transaction between the two and all subsequent transactions between them and among affiliated enterprises, both incorporated and unincorporated. Direct investment transactions occurring abroad and in the reporting economy are subclassified into equity capital, reinvested earnings, and other capital (intercompany transactions). For equity capital and other capital, claims on and liabilities to affiliated enterprises and to direct investors are distinguished. Transactions between affiliated banks and between other affiliated financial intermediaries are limited to equity and permanent debt capital. (See paragraph 372.) 178. Portfolio investment covers transactions in equity securities and debt securities; the latter are subsec-tored into bonds and notes, money market instruments, and financial derivatives (such as options) when the derivatives generate financial claims and liabilities. Various new financial instruments are covered under appropriate instrument classifications. Transactions covered under direct investment and reserve assets are excluded. 179. Other investment covers short- and long-term trade credits; loans (including use of Fund credit, loans from the Fund, and loans associated with financial leases); currency and deposits (transferable and other—such as savings and term deposits, savings and loan shares, shares in credit unions, etc.); and other accounts receivable and payable. Transactions covered under direct investment are excluded. 180. Reserve assets covers transactions in assets that are considered by the monetary authorities of an economy to be available for use in funding payments imbalances and, in some instances, meeting other financial needs. Such availability is not closely linked in principle to formal criteria such as ownership or currency of denomination. The items covered are monetary gold, SDRs, reserve position in the Fund, foreign exchange assets (currency, deposits, and securities), and other claims. 181. Coverage and identification of reserve asset components are linked to an analytic concept, are in part judgmental, and are not always amenable to application of objective, formal criteria or clear rankings as to conditionality and other considerations. In contrast to the treatment in the fourth edition of the Manual, valuation changes in reserve assets are excluded, along with counterparts to such changes, in the fifth edition. Also excluded are the allocation or cancellation of SDRs, the monetization or demonetization of gold, and counterpart entries. These changes, which do not constitute transactions, are reflected in the international investment position. Balance of Payments: Standard Components 182. Current Account A. Goods and services a. Goods 1. General merchandise 2. Goods for processing 3. Repairs on goods 4. Goods procured in ports by carriers 5. Nonmonetary gold 5.1 Held as a store of value 5.2 Other b. Services 1. Transportation 1.1 Sea transport 1.1.1 Passenger 1.1.2 Freight 1.1.3 Other 1.2 Air transport 1.2.1 Passenger 1.2.2 Freight 1.2.3 Other 1.3 Other transport 1.3.1 Passenger 1.3.2 Freight 1.3.3 Other 2. Travel 2.1 Business 2.2 Personal\* 3. Communications services 4. Construction services 5. Insurance services\\ 6. Financial services 7. Computer and information services 8. Royalties and license fees 9. Other business services 9.1 Merchanting and other trade-related services 9.2 Operational leasing services 9.3 Miscellaneous business, professional, and technical services\* 10. Personal, cultural, and recreational services 10.1 Audiovisual and related services 10.2 Other personal, cultural, and recreational services 11. Government services n.i.e. - See Selected Supplementary Information table on page 50 for components. \\ Memorandum items: 5.1 Gross premiums 5.2 Gross claims Balance of Payments: Standard Components B. Income 1. Compensation of employees 2. Investment income 2.1 Direct investment 2.1.1 Income on equity 2.1.1.1 Dividends and distributed branch profits\\\* 2.1.1.2 Reinvested earnings and undistributed branch profits\\\* 2.1.2 Income on debt (interest) 2.2 Portfolio investment 2.2.1 Income on equity (dividends) 2.2.2 Income on debt (interest) 2.2.2.1 Bonds and notes 2.2.2.2 Money market instruments and financial derivatives 2.3 Other investment C. Current transfers 1. General government 2. Other sectors 2.1 Workers’ remittances 2.2 Other transfers 3. Capital and Financial Account A. Capital account 1. Capital transfers 1.1 General government 1.1.1 Debt forgiveness 1.1.2 Other 1.2 Other sectors 1.2.1 Migrants’ transfers 1.2.2 Debt forgiveness 1.2.3 Other 2. Acquisition/disposal of nonproduced, nonfinancial assets B. Financial account 1. Direct investment 1.1 Abroad 1.1.1 Equity capital 1.1.1.1 Claims on affiliated enterprises 1.1.1.2 Liabilities to affiliated enterprises 1.1.2 Reinvested earnings 1.1.3 Other capital \\\If distributed branch profits are not identified, all branch profits are considered to be distributed. Balance of Payments: Standard Components 1.1.3.1 Claims on affiliated enterprises 1.1.3.2 Liabilities to affiliated enterprises 1.2 In reporting economy 1.2.1 Equity capital 1.2.1.1 Claims on direct investors 1.2.1.2 Liabilities to direct investors 1.2.2 Reinvested earnings 1.2.3 Other capital 1.2.3.1 Claims on direct investors 1.2.3.2 Liabilities to direct investors 2. Portfolio investment 2.1 Assets 2.1.1 Equity securities 2.1.1.1 Monetary authorities 2.1.1.2 General government 2.1.1.3 Banks 2.1.1.4 Other sectors 2.1.2 Debt securities 2.1.2.1 Bonds and notes 2.1.2.1.1 Monetary authorities 2.1.2.1.2 General government 2.1.2.1.3 Banks 2.1.2.1.4 Other sectors 2.1.2.2 Money market instruments 2.1.2.2.1 Monetary authorities 2.1.2.2.2 General government 2.1.2.2.3 Banks 2.1.2.2.4 Other sectors 2.1.2.3 Financial derivatives 2.1.2.3.1 Monetary authorities 2.1.2.3.2 General government 2.1.2.3.3 Banks 2.1.2.3.4 Other sectors 2.2 Liabilities 2.2.1 Equity securities 2.2.1.1 Banks 2.2.1.2 Other sectors 2.2.2 Debt securities 2.2.2.1 Bonds and notes 2.2.2.1.1 Monetary authorities 2.2.2.1.2 General government 2.2.2.1.3 Banks 2.2.2.1.4 Other sectors Balance of Payments: Standard Components 2.2.2.2 Money market instruments 2.2.2.2.1 Monetary authorities 2.2.2.2.2 General government 2.2.2.2.3 Banks 2.2.2.2.4 Other sectors 2.2.2.3 Financial derivatives 2.2.2.3.1 Banks 2.2.2.3.2 Other sectors 3. Other investment 3.1 Assets 3.1.1 Trade credits 3.1.1.1 General government 3.1.1.1.1 Long-term 3.1.1.1.2 Short-term 3.1.1.2 Other sectors 3.1.1.2.1 Long-term 3.1.1.2.2 Short-term 3.1.2 Loans 3.1.2.1 Monetary authorities 3.1.2.1.1 Long-term 3.1.2.1.2 Short-term 3.1.2.2 General government 3.1.2.2.1 Long-term 3.1.2.2.2 Short-term 3.1.2.3 Banks 3.1.2.3.1 Long-term 3.1.2.3.2 Short-term 3.1.2.4 Other sectors 3.1.2.4.1 Long-term 3.1.2.4.2 Short-term 3.1.3 Currency and deposits 3.1.3.1 Monetary authorities 3.1.3.2 General government 3.1.3.3 Banks 3.1.3.4 Other sectors 3.1.4 Other assets 3.1.4.1 Monetary authorities 3.1.4.1.1 Long-term 3.1.4.1.2 Short-term 3.1.4.2 General government 3.1.4.2.1 Long-term 3.1.4.2.2 Short-term Balance of Payments: Standard Components \| Credit \| Debit \| \|--------\|-------\| 3.1.4.3 Banks 3.1.4.3.1 Long-term 3.1.4.3.2 Short-term 3.1.4.4 Other sectors 3.1.4.4.1 Long-term 3.1.4.4.2 Short-term 3.2 Liabilities 3.2.1 Trade credits 3.2.1.1 General government 3.2.1.1.1 Long-term 3.2.1.1.2 Short-term 3.2.1.2 Other sectors 3.2.1.2.1 Long-term 3.2.1.2.2 Short-term 3.2.2 Loans 3.2.2.1 Monetary authorities 3.2.2.1.1 Use of Fund credit and loans from the Fund 3.2.2.1.2 Other long-term 3.2.2.1.3 Short-term 3.2.2.2 General government 3.2.2.2.1 Long-term 3.2.2.2.2 Short-term 3.2.2.3 Banks 3.2.2.3.1 Long-term 3.2.2.3.2 Short-term 3.2.2.4 Other sectors 3.2.2.4.1 Long-term 3.2.2.4.2 Short-term 3.2.3 Currency and deposits 3.2.3.1 Monetary authorities 3.2.3.2 Banks 3.2.4 Other liabilities 3.2.4.1 Monetary authorities 3.2.4.1.1 Long-term 3.2.4.1.2 Short-term 3.2.4.2 General government 3.2.4.2.1 Long-term 3.2.4.2.2 Short-term 3.2.4.3 Banks 3.2.4.3.1 Long-term 3.2.4.3.2 Short-term 3.2.4.4 Other sectors 3.2.4.4.1 Long-term 3.2.4.4.2 Short-term Balance of Payments: Standard Components 4. Reserve assets 4.1 Monetary gold 4.2 Special drawing rights 4.3 Reserve position in the Fund 4.4 Foreign exchange 4.4.1 Currency and deposits 4.4.1.1 With monetary authorities 4.4.1.2 With banks 4.4.2 Securities 4.4.2.1 Equities 4.4.2.2 Bonds and notes 4.4.2.3 Money market instruments and financial derivatives 4.5 Other claims Selected Supplementary Information 5. Liabilities constituting foreign authorities’ reserves 1.1 Bonds and other securities 1.1.1 Monetary authorities 1.1.2 General government 1.1.3 Banks 1.1.4 Other sectors 1.2 Deposits 1.2.1 Monetary authorities 1.2.2 Banks 1.3 Other liabilities 1.3.1 Monetary authorities 1.3.2 General government 1.3.3 Banks 1.3.4 Other sectors 6. Exceptional financing transactions 2.1 Transfers 2.1.1 Debt forgiveness 2.1.2 Other intergovernmental grants 2.1.3 Grants received from Fund subsidy accounts 2.2 Direct investment 2.2.1 Investment associated with debt reduction 2.2.2 Other 2.3 Portfolio investment: borrowing by authorities or by other sectors on behalf of authorities—liabilities\ 2.4 Other investment—liabilities\* 2.4.1 Drawings on new loans by authorities or by other sectors on behalf of authorities 2.4.2 Rescheduling of existing debt 2.4.3 Accumulation of arrears 2.4.3.1 Principal on short-term debt 2.4.3.2 Principal on long-term debt 2.4.3.3 Original interest 2.4.3.4 Penalty interest 2.4.4 Repayments of arrears 2.4.4.1 Principal 2.4.4.2 Interest 2.4.5 Rescheduling of arrears 2.4.5.1 Principal 2.4.5.2 Interest 2.4.6 Cancellation of arrears 2.4.6.1 Principal 2.4.6.2 Interest \Specify sector involved and standard component in which the item is included. 3. Other transactions 3.1 Portfolio investment income 3.1.1 Monetary authorities 3.1.2 General government 3.1.3 Banks 3.1.4 Other sectors 3.2 Other (than direct investment) income 3.2.1 Monetary authorities 3.2.2 General government 3.2.3 Banks 3.2.4 Other sectors 3.3 Other investment (liabilities) 3.3.1 Drawings on long-term trade credits 3.3.2 Repayments of long-term trade credits 3.3.3 Drawings on long-term loans 3.3.4 Repayments of long-term loans 4. Services sub-items 4.1 Travel (personal) 4.1.1 Health-related 4.1.2 Education-related 4.1.3 Other 4.2 Miscellaneous business, professional, and technical services 4.2.1 Legal, accounting, management consulting, and public relations 4.2.2 Advertising, market research, and public opinion polling 4.2.3 Research and development 4.2.4 Architectural, engineering, and other technical services 4.2.5 Agricultural, mining, and on-site processing 4.2.6 Other IX. Structure and Characteristics of the Current Account 5. The standard components and coverage of the current account and the capital and financial account are discussed in Chapter 8; coverage of the current account is referred to in paragraphs 152 through 171. As presented in this Manual, the current account is in concordance with SNA coverage of external accounts for goods and services, primary incomes, and current transfers. (See Chapter 3.) Because the net balance on the current account constitutes an integral part of the measure of an economy’s saving, the net balance can be viewed as one meaningful indicator of an economy’s saving and spending behavior. To the extent that national saving exceeds or falls short of net domestic investment (net capital formation), the net balance on current transactions (current external balance in the SNA), on net capital transfers, and on acquisition or disposal of nonproduced, nonfinancial assets represents the amount of an economy’s net foreign investment or net lending or borrowing vis-à-vis the rest of the world. Characteristics and Classification 183. As presented in this Manual, the structure of the current account contains most of the components traditionally included. The structure of the account has, however, significantly altered—with regard to major classifications and specific components—from that presented in the fourth edition. The structure remains in accord with the considerations stated in Chapter 8, paragraph 143. 184. Goods usually comprises the largest category of transactions that, for the most part, involve changes of ownership between residents and nonresidents. The scope of this classification has been expanded from that in the fourth edition to include—in addition to general merchandise, which covers most movable goods—(i) the movement of goods for processing (when no change of ownership occurs); (ii) the value of repairs on goods (not the value of the movement of goods undergoing repair); and (iii) goods procured in ports by nonresident carriers. In addition, nonmonetary gold is specified under goods as a sub-item to be identified, if feasible, as gold to be held as a store of value or as other (industrial) gold. Further detailed subdivisions of goods (commodity end-use categories, for example) often are desirable for analytical purposes and are provided in the balance of payments publications of many countries. 185. Services is the second major category of the current account. Both the production of, and international trade in, services differ from production and trade related to goods. International trade in goods is conducted separately from production. For example, goods may be produced in one economy and subsequently delivered to residents, who may or may not be known when production occurs, of another economy. In contrast, the production of a service is linked to an arrangement made—between a particular producer in one economy and a particular consumer or group of consumers in another—prior to the time that production occurs. Thus, international trade in services is closely linked with international production of services, as the production process itself involves a resident and a nonresident. Nonetheless, the boundary between goods and services is sometimes blurred; items classified as goods may include some element of services and vice versa. 186. As presented in this Manual, services covers traditional items (such as travel and transportation) that were included in the fourth edition presentation and items (such as communications, financial and computer services, royalties and license fees, and many types of other business services) that are becoming increasingly important in international transactions. In contrast to the treatment in the fourth edition, in this Manual, transactions in services are clearly separated from income transactions. This treatment is in accordance with the SNA; allows, to the extent practicable, for linkage with the CPC; and better serves to facilitate international negotiations concerning issues pertaining to services. 187. Transportation (the first item listed among services) comprises freight services, together with supporting and auxiliary services, by all modes of transportation for the movement of goods and the international carriage of passengers. (Transportation does not cover the carriage, within an economy, of nonresident passengers by resident carriers.) There is a close interrelationship between freight services and goods and, in some instances, such services may not be subject to clear distinctions from goods. There may be analytical interest in both separate and inclusive treatment of the two for purposes of various domestic and international comparisons. Passenger transportation is closely linked with travel, in which some related services are included. Transportation subsumes, with the exception of freight insurance, the shipment and other transportation items as presented in the fourth edition of the Manual. Freight insurance is now included with insurance services. (See Chapter 13, paragraphs 255 through 257.) The new grouping should facilitate international comparisons and is in accord with other statistical systems. 188. Travel differs from other components of services in that it is a demand-oriented activity. The traveler (consumer) moves to the location of the economy that provides the goods and services desired. Travel is subdivided into two major components: business and personal. 189. Treated as part of a residual item in the fourth edition of the Manual, other services are accorded increased prominence in the fifth edition. Both the structure and classification of the specific other services are related to the importance attached to these items by international bodies [e.g. in the General Agreement on Tariffs and Trade (GATT)] as a basis for negotiations and by analysts involved with domestic and international aspects of trade, production, and related issues. Although the significance of these services varies widely in the international accounts of countries, the structure provides a ready reference for items likely to assume increasing importance in international transactions. 190. Income comprises compensation of employees and investment income (covering direct investment income and other dividends and interest). This treatment of income as a separate component of the current account accords with that in the SNA; tightens the links between income and financial account flows and between the balance of payments and the international investment position; and increases the analytical usefulness of the international accounts. 191. Current transfers are grouped separately from goods, services, and income because the former are generally conceived as showing distinctive characteristics. The distinction between real resources and transfers, however, may sometimes be rather arbitrary. For example, receipts by an economy from certain individuals working abroad are classified either as current transfers or as compensation of employees; the classification depends on how long the individuals have stayed in the countries where they are working. The Manual and the SNA define a current transfer in the same way, and the disaggregation of transfers into current transfers and capital transfers—a departure from previous editions—aligns with SNA treatment and with various analytical presentations. This change removes inconsistencies in the use and meaning of the term current as it concerns transactions and balancing items in the Manual and the SNA. (The distinction between current transfers and capital transfers is discussed in Chapter 15.) Gross Recording, Valuation, and Time of Recording 192. In the current account, gross outflows from and gross inflows to the economy should, in principle, be recorded as credits and debits, respectively. Individual components are defined in such a way that entries would be made on a gross basis. This emphasis on gross recording in the current account stems from the fact that credit and debit entries for many specific types of current transactions are seldom related in a causal way. For example, even though provision and acquisition of travel services are included in the single component for travel, provision of travel services has, from an economic standpoint, little connection with the acquisition by the same economy of such services. Moreover, gross figures are utilized in contexts other than the analysis of balance of payments developments. In general, gross transactions recorded in the current account are often indicators of the relative importance of particular items within an economy and of the relative importance of various economies in international transactions. Gross transactions recorded in the current account are therefore used to compare economies and to provide weights for aggregation. Also, gross figures provide a better basis for analysis of changes in net balances. Two specific applications important for the IMF represent the use of gross figures: (i) Valuation of the SDR is based on a basket of currencies selected in consideration of the issuing countries’ shares in world exports of goods and services and weighted in broad proportion to those shares. (ii) The relative size of an IMF member’s gross transactions in the current account is one factor used to determine the relative quota of a Fund member. 193. Exceptions to the general rule of gross recording are sometimes made because of the practical difficulty of collecting certain information on a gross basis (e.g., some transportation services) or because of netting procedures used to derive certain estimates. These considerations are discussed in appropriate chapters. Nonetheless, gross recording remains the principle for recording transactions in the current account and, in general, is more useful than net recording for balance of payments and other analyses. 194. Principles and practices dealing with valuation and time of recording for current account transactions are discussed in chapters 5 and 6, respectively, and in chapters 10 through 15. Coverage and Principles 195. As subsequently defined in this Manual, goods covers general merchandise, goods for processing, repairs on goods, goods procured in ports by carriers, and nonmonetary gold. In accordance with general balance of payments principles, change of ownership is the principle determining the coverage and time of recording of international transactions in goods. Certain exceptions are applied to the principle; these are discussed in subsequent sections. Exports and imports of goods are recorded at market values at points of uniform valuation, that is, the customs frontiers of exporting economies. Definitions 196. General merchandise refers, with some exceptions specified later in this chapter, to movable goods for which changes in ownership—actual or imputed—occur between residents and nonresidents. 197. Goods for processing covers goods that are exported or imported for processing and that involve two transactions: (i) the export of a good (e.g., crude oil, vehicle parts, fabric) and (ii) the re-import of the good (refining of crude oil into petroleum, transformation of fabric into clothing) on the basis of a contract and for a fee. Symmetrically, processing performed (for nonresidents) in the partner economy consists of an import followed by an export. The inclusion, on a gross basis, of these transactions under goods is an exception to the change of ownership principle. 198. Processing can consist of any activity performed under contract: oil refining, metal processing, vehicle assembly, clothing manufacture, etc. In this Manual, there is concordance with the SNA concept of distinguishing between processing in which goods undergo substantial physical change and other processing. The former is included under goods and the latter, under services, in the SNA. However, because it is difficult to make such a distinction and because most international processing involves substantial physical change, it is recommended, for practical reasons, that all processing be included under goods. The basis of the conceptual distinction is that goods originally exported or imported essentially lose identity by being transformed or incorporated into other goods. The goods subsequently re-imported or re-exported essentially become new goods produced abroad or in the compiling economy and classified in a different group (three-digit level) of the CPC than the goods originally exported abroad or originally imported into the partner economy. The value of the goods before and after processing should be recorded when the goods are exported and then imported, or vice versa. (Corresponding entries in the financial account are required when goods remain in the processing economy after the end of a recording period.) 199. Excluded from the category of goods for processing are goods subject to on-site processing involving an import not followed by an export (or vice versa). These goods are included under general merchandise. Two particular cases warrant mention. The first concerns the treatment of goods that are sent abroad for processing and subsequently sold to a resident of the processing economy. Such goods are included under exports of general merchandise. The payment for processing is entered as a debit under services, and an adjustment is made to the merchandise export figure to include the value of processing. The second case concerns the treatment of goods that are sent abroad for processing in one economy and then sold to another economy. A service payment from the original economy to the processing economy is entered under merchanting and other trade-related services, and an export (including the value of processing) from the original economy to the (third) purchasing economy is recorded under general merchandise. Included under processing (on practical grounds, as noted in paragraph 198) are goods to which some value (e.g., packaging, labeling, etc.) is added. (This added value would be recorded in the SNA as a transaction in services.) 200. The category of repairs on goods covers repair activity that involves work performed by residents on movable goods owned by nonresidents (or vice versa). Examples of such goods are ships, aircraft, and other transportation equipment. In contrast to the value recorded for goods for processing, the value recorded for repairs on goods reflects the value of the repairs (the fee paid or received) rather than the gross value of the goods before and after repairs. The SNA distinction between repairs performed on investment goods and those performed on other goods is recognized as a valid one. (The latter are included under services in the SNA.) Nonetheless, it is recommended that the value of all repairs be included under goods. This recommendation is made because of the practical difficulty involved in making distinctions between the two types of goods and the fact that the bulk of international repairs are performed on investment goods. Excluded are construction repairs (recorded under construction services), computer repairs (recorded under computer and information services), and maintenance performed in ports and airports on transportation equipment (recorded under other transportation services). 201. Goods procured in ports covers goods (e.g., fuels, provisions, stores, and supplies) procured by resident or nonresident carriers abroad or in the compiling economy. Related services (e.g., towing, storage, maintenance, etc.) are excluded; these are recorded under other transportation services. 202. Nonmonetary gold covers exports and imports of all gold not held as reserve assets (monetary gold) by the authorities. Nonmonetary gold is treated as any other commodity and, when feasible, is subdivided into gold held as a store of value and other (industrial) gold. Change of Ownership 203. With specified exceptions, application of the change of ownership (between a resident and nonresident) concept to goods ensures, in principle, that the goods component is consistent in coverage and timing with other items, particularly financial items, in the balance of payments. However, international standards for trade statistics (see the Guide), as well as customs returns in most countries, are based instead on physical movements of goods across national or customs frontiers. Although the goods that change ownership internationally are for the most part the same goods that move across frontiers, the changes and movements often do not occur at exactly the same time. Convention for recording 204. Goods for export are generally considered to change ownership at the time the exporter ceases to carry the goods on his books as a real asset (i.e., when he records a sale and makes a corresponding entry in his financial items). Goods for import are considered to change ownership when the importer enters them on his books as a real asset (i.e., when he records a purchase and makes a corresponding entry in his financial items). This convention is designed to promote consistency between the goods component and the financial account in the balance of payments of the compiling country, as well as consistency between the compilation of goods by the exporting and importing countries. In practice, however, exporters and importers may not enter the transactions in their books as of the same date, so significant differences in timing may result even when this convention is followed. Other exceptions to change of ownership rule 205. The definition of residence presented in this Manual has implications for the coverage of goods because of the change of ownership rule. Although enterprises are always considered residents of the economies in which the enterprises operate, enterprises in different economies may be under the same management. Affiliated enterprises may therefore engage in transactions that are not subject to the legal changes of ownership that would occur if the enterprises were independently managed. In fact, transactions between a parent company and a direct investment branch (an unincorporated enterprise) could never involve legal changes of ownership in the literal sense because both parties are part of the same legal entity. Moreover, while a parent company and a direct investment subsidiary (an incorporated enterprise) constitute separate legal entities, a different balance of payments treatment for transactions that take the form of legal changes of ownership and those that do not would seem neither feasible nor desirable. Therefore, it is recommended that transactions involving goods and taking place between direct investment enterprises and parent companies or other related enterprises should be recorded as if changes of ownership have occurred. (Exceptions are transactions in goods specified in paragraph 209.) 206. There are also important instances in which the possession of goods passes, without the defined change of ownership, between residents and nonresidents who are not affiliated. The effect of a legal change of ownership between independent parties can be achieved by other means. A significant example is financial leasing or lease arrangements (made for a capital good for most or all of its expected economic life) under which the lessor expects to recover most or all of the cost of the goods and the carrying charges. It is recommended that the economic nature of these transactions be given precedence over the legal form. Therefore, a financial lease arrangement is to be taken as presumptive evidence that a change of ownership is intended. A change of ownership is imputed because in practice, the lessee assumes the rights, risks, rewards, and responsibilities of ownership and, from an economic point of view, can be regarded as the de facto owner. A financial lease is a means by which the lessee finances the purchase (as opposed to taking out a loan for the purchase) of the good. The full equivalent of the market value of the goods (not the cumulative total of expected lease payments) should be recorded under goods, and an offsetting entry should be made in the financial account to record the credit extended to the lessee. 207. In contrast, a change, between a resident and a nonresident, in ownership of goods may occur when goods do not physically cross the frontier of the economy of the resident who acquires or relinquishes ownership. When goods are acquired from one economy, relinquished again to that or some other economy, and do not cross the frontier of the economy in which the temporary owner is a resident, the activity is considered a merchanting transaction rather than an import and re-export of the goods. It is recommended that the country of the temporary owner exclude such goods from the goods component unless the recording periods in which the goods are acquired and relinquished are not the same. If the recording periods differ, increases or decreases in stocks abroad from one reporting period to another should be shown as imports of goods or reductions in imports. (For a fuller explanation of the treatment of these transactions, see paragraphs 213 and 262.) Inclusion, in exports or imports, of goods not crossing frontiers 208. Goods not crossing frontiers should be included in exports or imports if changes of ownership occur. Exceptions are changes of ownership that are temporary (see preceding paragraph) or not related to significant economic activity. Such changes are to be disregarded. Examples of goods that do not cross frontiers but should nonetheless be included in exports or imports are - ships, aircraft, railway rolling stock, gas and oil drilling rigs and production platforms, and other movable equipment not tied to a fixed location - nonmonetary gold - goods consumed in resident-owned, offshore installations (e.g., gas and oil drilling rigs and production platforms, ships, or aircraft that are operating in international waters or airspace and are purchased from nonresidents) - goods salvaged and fish and other marine products caught by ships of the compiling economy and sold directly abroad - goods purchased in one foreign country by the government of the compiling economy for its own use in a foreign country - goods lost or destroyed after ownership has been acquired by the importer but before the goods have crossed a frontier. Exclusion, from exports or imports, of goods crossing frontiers but not changing ownership 209. Goods that cross frontiers without changing ownership should not be covered under goods, except as noted in paragraphs 197 and 198 and in the previous section on other exceptions to the change of ownership rule. The principal types of goods that may cross frontiers without changes of ownership are - direct transit trade (i.e., goods in transit through an economy) - returned exports and imports (see paragraph 210) - goods shipped under operational, that is, nonfinancial leasing arrangements (see paragraph 263) - transportation equipment, fishing vessels, gas and oil drilling rigs, and other mobile equipment that leaves or enters an economy without changes of ownership - shipments by a specific economy to that economy’s military and diplomatic establishments located outside the territory of the economy - goods that cross frontiers and are lost or destroyed before being delivered by exporters - temporary exports and imports of goods that are not for sale (e.g., display equipment for trade fairs and exhibitions; art exhibits; animals for breeding, show, or racing; stage and circus equipment) - samples of no commercial value. The recommendation that transactions between direct investment affiliates be recorded as if changes of ownership have occurred (see paragraph 205) does not extend to these goods. 210. When the execution of a contract for the sale of goods is not completed after the goods have been shipped out of the exporting economy and the goods are later returned to the original owner, such goods have not changed ownership. In concept, revised entries should be made to exports for the period when the goods were initially (and incorrectly) recorded. However, in many instances, it will not be possible to anticipate, at the time goods originally cross a frontier, whether or not such goods will be returned in the future. Therefore, purely for statistical convenience, it is suggested that deductions, which are later found necessary, from exports and imports should be made in the periods when the goods are returned. Goods Classified Under Other Categories 211. Almost all movable goods for which changes of ownership occur between residents and nonresidents are classified under goods. However, a few specified goods are classified elsewhere. Goods classified under services 212. Some goods are classified under services because the relevant data include these goods indistinguishably or because the goods respond to economic factors differently than most goods do. The primary types of goods classified under services and the items under which the goods are recorded are: - goods acquired by travelers (travel) for their own use, by diplomatic and military missions or agencies or by official personnel (government services n.i.e.), and by nonresident workers (travel) - newspapers and periodicals (not in bulk) sent on the basis of direct subscription (computer and information services) - goods that do not cross frontiers and are acquired and relinquished within the same recording period (other business services). 213. If goods are acquired in one recording period and relinquished in a later period, however, the goods should be recorded in the balance of payments of the temporary owner's economy as imports in the period in which the goods are acquired and deducted from imports in the period in which the goods are relinquished. In this case, changes from one recording period to another in stocks of goods located abroad and valued at acquisition cost constitute part of goods for the economy of the owner. In either situation, any difference between the value of the goods when acquired and relinquished is entered as merchanting under other business services. Goods treated as financial items 214. Certain physical items are regarded as financial items and should not be included under goods. Examples are: - evidences of financial claims, even though such claims have material form and are movable (Examples of such goods are paper money and coin in current circulation and securities that have been issued.) - monetary gold treated as a financial asset (Monetary gold transactions between authorities of different economies should be included in the financial account.) - nonfinancial assets—including land, structures, equipment, and inventories—that belong to an enterprise and are considered financial assets for the owner of that enterprise when the owner is not a resident of the economy in which the enterprise operates (A change of ownership resulting from the acquisition of these assets by an existing enterprise is thus treated as a financial transaction and is not included in goods, except to the extent that such a change of ownership is actually accompanied by a physical movement of goods.) Special Types of Goods 215. Classification of certain physical items as goods is sometimes questioned, most often because the goods may be accorded exceptional treatment under customs regulations or in trade returns. Examples of such goods, all of which should be recorded under goods if the items qualify according to the definition and rules in this Manual, are: - commodity gold (i.e., nonmonetary gold), silver bullion, diamonds, and other precious metals and stones - paper money and coin not in current circulation and unissued securities, all of which should be valued as commodities rather than at face value - electricity, gas, and water - livestock driven across frontiers government exports and imports of goods, including goods financed by grants and loans (other than those exported and imported to and from government agencies and personnel) goods transferred to or from the ownership of a buffer stock organization migrants’ effects smuggled goods, whether or not detected by customs other unrecorded shipments of goods such as gifts and goods of less than stated minimum value. Time of Recording 216. In principle, exports and imports of goods should be recorded when ownership of the goods passes from a resident to a nonresident, or vice versa. In practice, a change of ownership is recognized (or is proxied) when the two parties to the transaction record it in their books or accounts. (See paragraphs 114 through 118 and paragraph 204.) 217. Neither physical movement, on which trade returns are largely based, nor payment, which is reflected in exchange records, will necessarily coincide in timing with changes in the ownership of goods. The Guide contains details on adjustments that would theoretically be necessary for statistics derived from those two sources. Except for large, discrete transactions (such as deliveries of ships or aircraft), the appropriate adjustments are often quite difficult to make. Information, especially in a form that can be related to the time of physical movement or the time of payment for the same goods, is seldom available on the actual time that a change of ownership occurs. If the overall value of trade, the regional pattern of trade, or the terms of payment for trade change substantially from the beginning to the end of the recording period, however, failure to adjust for timing is likely to be an important source of error in the balance of payments statement and an important cause of asymmetry between the goods components for different countries. 218. Goods on consignment (i.e., goods intended for sale but not actually sold at the time of crossing a frontier) should, in principle, be included in merchandise only at the time ownership changes. In practice, such goods are sometimes recorded at the time the goods cross a frontier. The assumption in such instances is that a change of ownership has occurred or will shortly occur. If this treatment is followed and there is no change of ownership, the goods must subsequently be recorded again, in the same manner as returned exports and imports (see paragraph 210), as a deduction from exports and imports. Valuation 219. The value at which goods should be recorded in the balance of payments is the market value of the goods at the point of uniform valuation—the customs frontier of the economy from which the goods are exported. That is, the goods are valued free on board (f.o.b.) at that frontier. At least two aspects of this general statement require elaboration. Market valuation 220. The concept of market value and the specific application of the concept to internationally traded goods are discussed in Chapter 5. The United Nations (UN) deals at length with the valuation of exports and imports according to the UN standard for such statistics. The General Agreement on Tariffs and Trade also provides an extensive treatment of the standard to be applied for the customs valuation of imports. (See the Guide.) Point of valuation 221. Delivery of goods by the exporter to the importer invariably signifies a change of ownership and may occur at any time and place from the point at which the goods are produced to the point of final use. A clear distinction between (i) items regarded as goods and (ii) any additional distributive services that might be included in the final value of those goods is made in this Manual. This distinction is made whether the distributive services are performed before or after the change of ownership occurs. Thus, goods will be uniformly valued in the limited sense that a borderline between goods and distributive services can be established in accordance with one standard rule. 222. The standard, or rule, is that goods shall cover, in principle, the value of goods and related distributive services at the time the goods reach the customs frontier of the economy from which the goods are to be exported. The value of the goods includes the value of any loading of the goods on board the carrier at that frontier. That is, exports and imports of goods are valued f.o.b. at the customs frontier of the exporting economy. In the application of this rule, customs bonded warehouses, customs bonded manufacturing plants, and free areas are included within the customs frontier of the controlling and supervising economy. The customs frontier need not coincide physically with the national boundary and could be located in the interior of the economy. 223. Uniformity of this kind means that differing practices for delivery of goods by exporters to importers, as well as changes in those practices from one period to another, have no effect on the determination of services included in the value of goods. No rule can be formulated, however, to produce what could be considered, in a basic economic sense, a uniform point of valuation for goods. Indeed, this kind of uniform valuation could more appropriately be viewed as uniform classification. The objective is to include in goods only a standard partial list of related distributive services; the principle that both the goods and the services should be valued at market prices is not in question in this context. 224. While adoption of any of several uniform points of valuation may be analytically useful, problems of a statistical nature arise. A principal difficulty is that shipping practices are not standard, and the documents on which the compiler must usually rely as the basis for estimates of goods and transportation services will often cover shipping services performed on both sides of the customs frontier (or of any other uniform point) without a detailed subdivision of the total shipping costs. For example, shipment by truck from door to door may be provided, or goods in containers may be moved between central warehouses that are distant from the customs frontiers in the exporting and importing economies. A primary consideration for specifying the customs frontier of the exporting economy, rather than some other location, as the point of valuation is that the frontier is the point at which customs officials place valuations on exports and, for a significant group of countries, on imports as well. It is thus the point most likely to be reflected in trade statistics. 225. As a practical matter, the service of loading goods on board the carrier at the customs frontier is frequently performed by or for the account of the carrier. In such a case, trade statistics are likely to exclude the cost of such services, but data on freight charges will almost certainly include them. It is not suggested in this Manual that an attempt be made to reallocate such charges from transportation to goods. Instead, it is recognized that the recommended f.o.b. basis for recording goods may, in practice, be a free alongside ship (f.a.s.) basis rather than a strict f.o.b. basis. 226. Goods delivered to an importer at some point within the exporting economy might not be shipped to the customs frontier of that economy during the same recording period. When this is the situation, an entry should be made in one period for the value of the goods at the point of delivery and, in a subsequent period, an entry should be made for the cost of shipment from that point to the customs frontier. Both of these entries are included in goods. 227. Application of the uniform valuation rule may result in the inclusion, under goods, of some service flows between nonresidents or between residents of the same economy. An exporter may deliver goods before the goods reach the customs frontier of his economy, and the importer may then employ a supplier of distributive services, who is not a resident of the exporting economy, to ship the goods to the customs frontier. An offset to such a flow of services between nonresidents is required in the balance of payments of the exporting country. To preserve a uniform valuation in the goods component, the offsetting entry should be made in transportation. Similarly, if the supplier of the services is the importer himself or a resident of the importer’s economy, the services will not have been provided to or from residents of different economies and an offset in transportation is also required in the balance of payments of the importing country. 228. Treatment of services performed by agents in connection with transactions in goods also requires consideration. Some of these services apply only generally to transactions and cannot realistically be attributed to the value of goods at any particular point or date. As a practical way of dealing with the problem, it is recommended that, upon actual payment of an agent’s fee by the exporter, the fee should be included in the f.o.b. value of the goods, regardless of whether the agent is a resident of the exporter’s country or another country. When an agent’s fee is paid by an importer, the fee should only be included in the f.o.b. value of the goods if the agent is a resident of the exporting country. Agents’ fees paid by importers to residents of their own countries and to residents of countries other than the exporting country are excluded from the f.o.b. value of the goods. In all cases, when a fee is paid by a resident of one country to an agent in another, an entry should be made in other business services-merchanting and other trade-related services. (except when a fee is paid by an importer to an agent in the exporting country.) 229. In some instances, fees are paid by exporters to consulates of importing economies. Such fees should not be included when goods are valued at the frontier of the exporting economy. A consular fee is thus treated as a cost incurred beyond the customs frontier of the exporting economy; that is, a consular fee is incurred in the importing economy. XI. Transportation Definition and Coverage 230. Transportation covers all transportation (sea, air, and other—including land, internal waterway, space, and pipeline) services that are performed by residents of one economy for those of another and that involve the carriage of passengers, the movement of goods (freight), rentals (charters) of carriers with crew, and related supporting and auxiliary services. Some related activities are excluded: freight insurance, which is included in insurance services, Chapter 13; goods procured in ports by nonresident carriers and repairs of transportation equipment, which are included in goods, Chapter 10; repairs of railway facilities, harbors, and airfield facilities, which are included in construction services, Chapter 13; and rentals (charters) of carriers without crew, which are included in other business services, Chapter 13. 231. Most transportation services, for both passengers and freight, often are provided by enterprises through the operation of carriers and similar equipment. Questions arise as to the residence of such enterprises or operators because the carrier may operate outside the economic territory, either in international waters or airspace or in one or more other economies in which the enterprise is resident. The residence of enterprises is discussed in Chapter 4, and paragraphs 80 through 82 are particularly relevant in this context. Passenger Services 232. This component covers all services provided, between the compiling economy and abroad or between two foreign economies, in the international transportation of nonresidents by resident carriers (credit) and that of residents by nonresident carriers (debit). Also included are passenger services performed within an economy by nonresident carriers. Excluded are passenger services provided to nonresidents by resident carriers within the resident economies; these are included in travel, Chapter 12. In addition to the services covered by passenger fares—including fares that are a part of package tours but excluding cruise fares, which are included in travel—passenger services include such items as charges for excess baggage, vehicles, or other personal accompanying effects and expenditures for food, drink, or other items for which passengers make expenditures while on board carriers. Freight Services and Conventions for Recording 233. Freight services include the loading on board or the unloading of goods from carriers if contracts between owners of goods and carriers require that the latter provide that service. When such a service is performed at the customs frontier of the country from which goods are exported, the loading charge is classified as freight if the service is provided by, or for the account of, the carrier; otherwise, the service is classified as part of goods. This treatment is used because, in practice, the statistics that can be collected on freight will usually cover indistinguishably all services that are performed by, or for the account of, the carriers, whereas the statistics on goods are unlikely to include the loading charge if loading is provided by, or for the account of, the carrier. 234. The measurement of freight services is affected by the convention noted in Chapter 10—that goods are valued f.o.b. at the customs frontier of the exporting economy—and by the assumption that freight charges are borne by the importing economy. Measurement of freight services is also affected by other factors related to this convention and assumption. Included in the f.o.b. value of goods are transportation services associated with goods and performed prior to the arrival of goods at the customs frontier of the economy from which the goods are exported. Included in transportation are services associated with goods and performed beyond the customs frontier of the exporting economy. These services cover transportation of goods to the customs frontier of the importing economy and, within that economy, to the point of delivery. These transportation services are treated as services performed (by residents of the importing economy or by residents of other economies) for residents of the importing economy. 235. Thus, debit (payments) entries should be made in the accounts of a compiling economy for all transportation services performed (inside or outside the importing economy) in relation to imports of the compiling economy when (i) these services are performed by nonresidents and (ii) when these services are performed after the imports are loaded on board a carrier at the customs frontier of the exporting economy. Conversely, credit (receipts) entries should be made in a compiling economy’s accounts for all transportation services performed by residents of the compiling economy in relation to exports of that economy when such services are performed after the exports have been loaded on board a carrier at the customs frontier. Also entered as credits are services provided by residents in relation to transport of goods between other countries. Required entries represent identifiable services performed by residents or nonresidents without regard to the ownership of goods by residents or nonresidents at the precise times when such services are performed. (This matter is difficult—if not impossible—to ascertain.) Offsetting debit and credit entries for services performed by residents of a compiling economy in relation to imports of the compiling economy (and by nonresidents in relation to exports) are not made under the convention described in paragraph 234 because the recording is consistent with a uniform f.o.b. valuation basis for merchandise. However, for other purposes (such as trade negotiations or cross-checking individual country data and the global consistency of transportation accounts), gross freight compilations that are linked to an ex-works valuation of goods and include resident-resident transactions may be useful. 236. Use of the convention admittedly does not obviate all the statistical problems that may arise in compiling data for goods and transportation. When these two items are derived from collection forms that show imports valued at the frontier of the importing economy (c.i.f. valuation), a separate estimate must be made for the value of the transportation services performed beyond the customs frontier of the economy from which the goods are exported. This treatment, however, essentially reallocates the element for transportation services in the c.i.f. value of imports between nonresidents and that may be included in goods when such goods are valued uniformly at the customs frontier of the economy from which the goods are exported. Specifically, credits are included by the importing economy for services performed within the customs frontier of the exporting economy, and debits are included by the exporting economy for services that nonresidents perform within the customs frontier of that economy. Rentals of Transportation Equipment with Crew 239. This category covers rentals or operational leases made by residents to nonresidents and vice-versa of vessels, aircraft, freight cars, or other commercial vehicles with crews for limited periods (such as a single voyage) for the carriage of freight and/or passengers. Also included are towing and services related to the transportation of oil platforms, floating cranes, and dredges. These rentals are included, as appropriate, in passenger services or freight services. Excluded are financial leases (equivalent to changes of ownership with related payments recorded, as appropriate, under income and amortization) or time charters (for longer periods) for which paragraph 80 is particularly relevant. Supporting and Auxiliary Services 240. This category covers a range of services provided in ports, airports, and other terminal facilities. Among such services are cargo handling (loading and unloading of containers); storage and warehousing; packing and repacking; other towing, pilotage, and navigational aid for carriers; maintenance and cleaning of transportation equipment; and salvage operations. Also included are commissions and agents' fees associated with passenger and freight transportation. These services are recorded as other transportation services. Nature of Travel Services 241. Travel differs from other components of international services in that it is a demand-oriented activity. The consumer (traveler) moves to the location of the provider (residents of the economy visited) for the goods and services desired by the traveler. Thus, unlike other services, travel is not a specific type of service but an assortment of services consumed by travelers. Travel is not identified as a service in the CPC. Definition 242. Travel covers primarily the goods and services acquired from an economy by travelers (defined in paragraph 243) during visits of less than one year in that economy. The goods and services are purchased by, or on behalf of, the traveler or provided, without a quid pro quo, for the traveler to use or give away. Excluded is the international carriage of travelers, which is covered in passenger services under transportation. (See paragraph 232.) 243. A traveler is an individual staying, for less than one year, in an economy of which he is not a resident for any purpose other than (i) being stationed on a military base or being an employee (including diplomats and other embassy personnel) of an agency of his or her government, (ii) being an accompanying dependent of an individual mentioned under (i), or (iii) undertaking a productive activity directly for an entity that is a resident of that economy. (See paragraphs 67 through 70.) Expenditures made by individuals covered in (i) and (ii) are recorded under government services n.i.e. (See Chapter 13.) Expenditures made by individuals (including seasonal and border workers) covered in (iii) are included under travel. Travelers include tourists, who spend at least one night in the country visited, and same-day travelers or excursionists, who stay less than twenty-four hours and do not remain overnight. The latter group may be shown as a separate category, or as a memorandum item, by economies in which same-day travelers account for significant transactions. 244. The one-year rule does not apply to students and medical patients, who remain residents of their economies of origin even if the length of stay in another economy is one year or more. All expenditures, including those for educational and health-related purposes (such as tuition, room and board paid for or provided by educational institutions, hospital charges, treatments, physicians’ fees, etc.), made by students and medical patients are recorded under travel and separately identified, if possible, under Selected Supplementary Information. (See the table following Chapter 8.) Fees for services rendered abroad (including provision of correspondence courses) by teachers or doctors are recorded under personal, cultural, and recreational services. Types of Travel 245. Although the list of standard components contained in this Manual includes only two items for travel (business and personal), there are distinctions within both categories. (See subsequent sections, which may be of significance for various analytical purposes, on business travel and personal travel.) Business travel 246. The business travel category covers travelers going abroad for all types of business activities: carrier crews stopping off or lying over; government employees on official travel; employees of international organizations on official business; and employees doing work for enterprises that are not resident in the economies in which the work occurs. 247. Business travelers are those who visit an economy for sales campaigns, market exploration, commercial negotiations, missions, meetings, production or installation work, or other business purposes on behalf of an enterprise resident in another economy. Travel refers to personal acquisitions of goods and services (including those for which the business travelers are reimbursed by employers) but not the sales or purchases that the business travelers may conclude on behalf of the enterprises they represent. Personal expenditures on goods and services by seasonal, border, and other nonresident workers in the economies in which they are employed also are recorded under travel. (See paragraphs 246 and 271.) These expenditures are not included under tourism by the WTO. 248. Government employees and employees of international organizations on official travel (paragraph 246) are distinguished from employees stationed or living, respectively, in the country. (Purchases for the latter are included in government services n.i.e.) Personal travel* 249. This category covers travelers going abroad for purposes other than business (e.g., for leisure activities such as holidays, participation in sports and other recreational and cultural activities, visits with relatives and friends, pilgrimage and religious observances, studies, and health-related purposes). Also included in this category are government employees on leave in economies other than those in which they are residents (or those in which they are stationed) and transit travelers visiting countries en route to other destinations. Goods and Services Covered 250. All goods and services acquired by travelers (as defined previously) from the economies in which they are traveling and for their own use are recorded under travel. These goods and services may be paid for by the traveler, paid for on his or her behalf, or provided to him or her without a quid pro quo (e.g., free room and board received by official visitors or by friends and relatives). In practice, information on goods and services provided without a quid pro quo will not usually be available. If information is available, a contra entry is included under transfers. 251. The most common goods and services entered in travel are lodging, food and beverages, entertainment, and transportation within the economy visited—all of which are consumed in the providing economy—and gifts, souvenirs, and articles (irrespective of value) purchased for travelers’ own uses and taken out of the economies visited. XIII. Other Services Coverage 252. Other services comprise those international service transactions not covered under transportation and travel. The significance and data constraints limiting the recording of classifications of international services vary widely among countries. The classifications reflect the increasing global importance of items such as communications services and financial services; better linkage between classifications of balance of payments services and the Central Product Classification; the analytic value of classifications to compilers and users; a high degree of compatibility with similar classifications of other international organizations; and the statistical requirements for multilateral negotiations on international services. The classifications also establish a framework to encompass transactions anticipated to be of growing importance in the future. Definitions 253. Communications services covers two primary categories of transactions between residents and nonresidents in international communications. These are (i) telecommunications, which encompass the transmission of sound, images, or other information by telephone, telex, telegram, cable, broadcasting, satellite, electronic mail, facsimile services, etc. and include business network services, teleconferencing, and support services; and (ii) postal and courier services, which encompass the pickup, transport, and delivery of letters, newspapers, periodicals, brochures, other printed matter, parcels, and packages by national postal administrations and other operators. Also included are post office counter and mailbox rental services. 254. Construction services covers work performed on construction projects and installations by employees of an enterprise in locations outside the economic territory of the enterprise. (The work is generally performed for a short time period; the one-year rule is to be applied flexibly.) Goods imported by the enterprise for use in the projects are included in the value of these services rather than being recorded under goods; expenditures for local supplies, etc. are included under other business services. Projects carried out by foreign subsidiaries or branches of enterprises (direct investors) and certain site offices are excluded because such projects are part of the production of the host economy. For aspects of residency concerning major projects (such as bridges, dams, etc.) carried out over several years and for factors that determine the attribution of production and are particularly relevant for construction site offices, see paragraph 78. 255. Insurance services covers the provision of various types of insurance to nonresidents by resident insurance enterprises, and vice versa. Such services cover freight insurance (i.e., insurance on goods that are in the process of being exported or imported); other types of direct insurance (i.e., life—including pension and annuity services, other casualty or accident, health, general liability, fire, marine, aviation, etc. insurance); and reinsurance. The specific classification of various types of insurance is determined by individual countries according to particular requirements. Also recorded as insurance services are agent commissions related to insurance transactions. 256. Treatment of freight insurance is consistent with the f.o.b. valuation of merchandise exports and imports. Insurance cost up to the customs frontier of the exporting economy is included in the f.o.b. value of the goods exported. If that insurance is paid for by the importer (e.g., through an enterprise resident in the importer's economy), the exporter is deemed to purchase the insurance and simultaneously recover the cost from the f.o.b. value recorded in the accounts. Insurance services provided for goods after the goods have crossed the customs frontier of the exporting economy are recorded as imports of insurance services by the importer when the insurance is provided by an enterprise nonresident in the importing economy. If the insurance is provided by an enterprise resident in the importing economy, no entry is made in balance of payments accounts. 257. International insurance services are estimated or valued by service charges included in total premiums. ______________________________________________________________________ 5The relationship of the classifications of balance of payments services to the CPC is detailed in Appendix 3. earned rather than by total premiums. In principle, the measurement of transactions in international insurance services is consistent with that described in the SNA for insurance services for resident sectors. However, in practice, both the Manual and the SNA allow resident-nonresident flows associated with investment income on technical reserves to be ignored because of estimation problems, particularly for imports. Thus, for goods, the insurance service charges for resident issuers providing insurance services to nonresidents (credit) are the difference between premiums earned and claims payable on goods lost or destroyed in transit. The service charges for nonresident issuers providing services to residents (debit) can be estimated by taking the ratio of estimated service charges to total premiums for exports of insurance services and applying the ratio to total premiums paid to nonresident issuers. The ratio should be based on a medium- to long-term period. For other types of direct insurance (and pension and annuity services), the service charges for nonresident insurers providing services to residents can be estimated by applying the ratio of estimated service charges to total premiums for resident insurers or to contributions received by resident pension funds. Again, the ratio should be based on a medium- to long-term period. For non-life insurance, total premiums minus the estimated service charge and claims payable should be recorded under current transfers. For life insurance, premiums minus the service charges and claims payable should be recorded in the financial account under other investment. (For some purposes—e.g., for use in trade negotiations—total premiums and claims are relevant and are shown as memorandum items under insurance services.) For reinsurance, exports of services (credits) are, in principle, estimated as the balance of all flows occurring between resident reinsurers and nonresident insurers. Imports (debits) are, in principle, estimated as the balance of all flows occurring between resident insurers and nonresident reinsurers. 258. Financial services covers financial intermediary and auxiliary services (except those of insurance enterprises and pension funds) conducted between residents and nonresidents. Included are intermediary service fees, such as those associated with letters of credit, bankers’ acceptances, lines of credit, financial leasing, and foreign exchange transactions. (For the latter, the spread between the midpoint rate and the buying or selling rate is the service charge.) Also included are commissions and other fees related to transactions in securities—brokerage, placements of issues, underwritings, redemptions, and arrangements of swaps, options, and other hedging instruments; commissions of commodity futures traders; and services related to asset management, financial market operational and regulatory services, security custody services, etc. Service charges on purchases of International Monetary Fund resources are included among an economy’s financial service payments, as are charges (similar to commitment fees) associated with undrawn balances under stand-by or extended arrangements with the IMF. 259. Computer and information services covers computer data and news-related service transactions between residents and nonresidents. Included are data bases, such as development, storage, and on-line time series; data processing—including tabulation, provision of processing services on a time-share or specific (hourly) basis, and management of facilities of others on a continuing basis; hardware consultancy; software implementation—including design, development, and programming of customized systems; maintenance and repair of computers and peripheral equipment; news agency services—including provision of news, photographs, and feature articles to the media; and direct, non-bulk subscriptions to newspapers and periodicals. 260. Royalties and license fees covers the exchange of payments and receipts between residents and nonresidents for the authorized use of intangible, nonproduced, nonfinancial assets and proprietary rights (such as patents, copyrights, trademarks, industrial processes, franchises, etc.) and with the use, through licensing agreements, of produced originals or prototypes (such as manuscripts and films). Inclusion of this item under services, rather than under income, is in accordance with the SNA treatment of such items as payments for production of services for intermediate consumption or receipts from sales of output used as intermediate inputs. 261. Other business services covers various categories, other than those previously defined, of service transactions between residents and nonresidents. The grouping of these services is not indicative of the ______________________________________________________________________ 6 Insurance technical reserves cover actuarial reserves against outstanding risks and reserves for with-profits insurance, prepayments of premiums, and reserves against unsettled claims. 7 In the SNA, in addition to the explicit commissions and fees noted previously, there is an item for financial intermediation services indirectly measured. These reflect financial service charges that, while not explicit, may be imputed or derived from the differences between appropriate reference interest rates and rates actually applied to loans, debt securities, or deposits. Such imputations are equivalent to reclassifying a portion of interest as financial services. As a reflection of the views of national balance of payments compilers, this procedure is not recommended in this Manual. As a result, these implicit services are reported indistinguishably under investment income (interest). relative importance of the services, either to each other or to previously mentioned services. For instance, merchanting and other trade-related services are very important for a number of countries, and other particular categories may be equally important for other countries. The grouping generally reflects harmonization efforts on the part of the IMF and other international organizations involved with the expansion and improvement of data on international service transactions. 262. Merchanting and other trade-related services covers commissions on goods and service transactions between (i) resident merchants, commodity brokers, dealers, and commission agents and (ii) nonresidents. (See paragraph 228.) This category includes transactions in ships, aircraft, and auction sales as well. Merchanting is defined as the purchase of a good by a resident (of the compiling economy) from a nonresident and the subsequent resale of the good to another nonresident; during the process, the good does not enter or leave the compiling economy. (Changes in stocks held abroad by merchants are excluded.) The difference between the value of goods when acquired and the value when sold is recorded as the value of merchanting services provided. If the commodities are not resold by the merchant in the same accounting period, an import of goods is recorded in the first period, and a negative import entry is recorded in the later period. (See paragraph 213.) Although merchanting is recorded on a net basis, separate data recorded on a gross basis may be useful for analytical purposes. 263. Operational leasing (rental) without operators covers resident-nonresident leasing (other than financial leasing) and charters of ships, aircraft, and transportation equipment such as railway cars, containers, rigs, etc. without crew. 264. Miscellaneous business, professional, and technical services covers the following services: Legal, accounting, management consulting, and public relations services cover the provision (by or for residents for or by nonresidents) of legal advice, representation, and documentation; accounting, auditing, bookkeeping, and tax consultant services; and management consulting related to the provision of advice, guidance, or operational assistance to business. Advertising and market research services transacted between residents and nonresidents cover the design, creation, and marketing of advertisements by advertising agencies; media placement, including the purchase and sale of advertising space; exhibition services provided by trade fairs; the promotion of products abroad; market research; and public opinion polling abroad on various issues. Research and development services cover those services that are transacted between residents and nonresidents and associated with basic research, applied research, and experimental development of new products and processes. In principle, such activities in the sciences, social sciences, and humanities are covered; included is the development of operating systems that represent technological advances. Architectural, engineering and other technical services cover resident-nonresident transactions related to architectural design of urban and other development projects; planning and project design and supervision of dams, bridges, airports, turnkey projects, etc.; surveying, cartography, product testing and certification, and technical inspection services. Agricultural, mining, and on-site processing services provided by or to residents to or by nonresidents cover services associated with agricultural crops (e.g., protection against insects and disease, increasing of harvest yields, etc.); forestry services; mining-related services (e.g., analysis of ores, etc.); and on-site processing of, or work on, goods that have been imported but not re-exported (e.g., nuclear waste processing) or vice versa. (See paragraph 199.) Other services transacted between residents and nonresidents cover items such as placement of personnel, security and investigative services; translation and interpretation; photographic services; building cleaning, etc. Also included are payments for local supplies, utility payments, etc. by nonresident enterprises engaged in construction services. These services are listed as sub-items in the Selected Supplementary Information table at the end of Chapter 8. 265. Personal, cultural, and recreational services involving transactions between residents and nonresidents are subdivided into two categories: (i) audiovisual and related services and (ii) other cultural and recreational services. The first category comprises services and associated fees related to the production of motion pictures (on film or video tape), radio and television programs (live or on tape), and musical recordings. Included are receipts or payments for rentals; fees received by resident actors, directors, producers, etc. (or by nonresidents in the compiling economy) for productions abroad; and fees for distribution rights sold to the media for a limited number of showings in specified areas. Fees to actors, producers, etc. involved with theatrical and musical productions, sporting events, circuses, etc. and fees for distribution rights (for television, radio, etc.) for these activities are included. The second category comprises other personal, cultural, and recreational services such as those associated with museums, libraries, archives, and other cultural, sporting, and recreational activities. Also included are fees for services, including provision of correspondence courses, rendered abroad by teachers or doctors. 266. Government services n.i.e. is a residual category covering government service transactions (including those of international organizations) not contained in previous classifications. Included are all transactions by embassies, consulates, military units, and defense agencies with residents of economies in which the embassies, etc. are located and all transactions with other economies. (Excluded are transactions with residents of the home countries represented by the embassies, consulates, etc. and transactions in the commissaries, post exchanges, etc. of the embassies, consulates, etc.) Transactions in this category comprise those for goods and services (such as office supplies, furnishings, utilities, official vehicles and the operation and maintenance thereof, and official entertainment) and personal expenditures incurred by diplomats and consular staff and their dependents in the economies in which they are located. Also recorded in this category are transactions, subject to the same considerations as those in the preceding item, by other official entities (such as aid missions and government tourist, information, and promotion offices) located in economies abroad. Included, as well, are transactions associated with general administrative expenditures, etc. and not classified elsewhere. In addition, transactions associated with aid services that are provided by non-military agencies, do not give rise to any payments, and have offsets in transfers are recorded in this category. Last, transactions associated with the provision of joint military arrangements and peacekeeping forces, such as those of the United Nations, are recorded in government services n.i.e. XIV. Income Coverage 267. Income covers two types of transactions between residents and nonresidents: (i) those involving compensation of employees, which is paid to nonresident workers (e.g., border, seasonal, and other short-term workers), and (ii) those involving investment income receipts and payments on external financial assets and liabilities. Included in the latter are receipts and payments on direct investment, portfolio investment, other investment, and receipts on reserve assets. Income derived from the use of tangible assets is excluded from income and classified, as appropriate, under leasing or rentals, under other business services, or under transportation. Financial leasing arrangements are considered evidence that a change of ownership is intended (see paragraph 206), and part of the lease payments is construed as income on a financial asset. 268. Holding (capital) gains and losses are not classified as income on investments but as part of the value of the investments. All realized holding gains and losses arising from transactions are included in the financial account; unrealized valuation changes are not included. However, some debt securities (such as bonds, notes, and bills) are originally issued at values that differ from the stated fixed sums that holders have the unconditional right to receive when the obligations mature. These premiums or discounts should be regarded as negative interest or interest, respectively, rather than as holding losses or gains. The values of securities entered in the financial account are the amounts for which the securities were actually issued. The fixed sums paid at maturity comprise both repayments of original principal amounts and (negative or positive) interest; the interest should be shown as investment income. Definition and Classification 269. Compensation of employees comprises wages, salaries, and other benefits (in cash or in kind) earned by individuals—in economies other than those in which they are residents—for work performed for and paid for by residents of those economies. Included are contributions paid by employers, on behalf of employees, to social security schemes or to private insurance or pension funds (whether funded or unfunded) to secure benefits for employees. Employees, in this context, include seasonal or other short-term workers (less than one year) and border workers who have centers of economic interest in their own economies. Because embassies and consulates are considered extraterritorial to the economies in which they are located, the compensation received by local (host country) staff of these institutional entities is classified as that paid to resident entities by nonresident entities. 270. Compensation paid to employees by international organizations, which are treated as extraterritorial entities, represents payments to residents from nonresident entities if the employees are residents of the economies of location. Also, if the employees are from other economies but are employed for one year or more, they are treated as residents of the economies of location, and their compensation is classified in the same manner. Thus, in the case of employees from other economies who are employed for less than one year, no payments to residents are involved. (For treatment of technical assistance personnel working abroad on assignments of one year or more, see paragraph 69.) 271. Personal expenditures made by nonresident seasonal and border workers in the economies in which they are employed and personal expenditures made by those working on installation projects are recorded under travel. Taxes paid, contributions made to pension funds, etc. in those economies are recorded as current transfer payments. Gross recording of compensation and expenditures is recommended in this Manual, although recording may, on practical grounds, be limited to estimates of net income in some instances. 272. In practice, it is often difficult to make the distinction between persons whose earnings are classified as compensation of employees, even though they are not residents of the economies in which they work, and migrants who have become residents of economies by virtue of being expected to live there for a year or more. (See paragraphs 352 through 355.) The activities of an individual—whether he or she is regarded as a resident or a migrant—do not affect the aggregate transactions of the compiling economy with the rest of the world. Therefore, difficulties on this score will not, in principle, be a source of net errors and omissions in the balance of payments. Even so, efforts should be made to observe the distinction between nonresident workers and migrants. Otherwise, the comparability of balance of payments statements for the two compiling economies will suffer from dissimilar statistical treatment of the same individuals. 273. Nonresidents of an economy may engage in transactions associated with the use of land for non-commercial purposes. Such transactions are usually included indistinguishably under components other than income (for example, travel or government services n.i.e.). 274. Investment income (property income in the SNA) covers income derived from a resident entity’s ownership of foreign financial assets. The most common types of investment income are income on equity (dividends) and income on debt (interest). Dividends, including stock dividends, are the distributed earnings allocated to shares and other forms of participation in the equity of incorporated private enterprises, cooperatives, and public corporations. Dividends represent income that is payable without a binding agreement between the creditor and the debtor. Among other types of income on equity are (i) earnings of branches and other unincorporated direct investment enterprises and (ii) direct investors’ shares of earnings of incorporated direct investment enterprises. (The latter type of earnings, which are not formally distributed, are earnings other than dividends.) Shares of reinvested earnings attributed to direct investors are proportionate to the participation of the direct investors in the equity of the enterprise. Also, in principle, income is imputed to households from net equity in life insurance reserves and pension funds and included indistinguishably under other investment. Interest, including discounts in lieu of interest, comprises income on loans and debt securities (i.e., bank deposits, bills, bonds, notes, and trade advances). Net interest flows arising from interest rate swaps also are included. (See paragraph 406.) Interest is payable in accordance with a binding agreement between the creditor and the debtor. 275. The components of investment income are classified as direct investment, portfolio investment, and other investment income. Direct investment income 276. The two categories under this heading—income on equity and income on debt—cover income accruing to a direct investor resident in one economy from the ownership of direct investment capital in an enterprise in another economy. (See paragraphs 330 and 368 for the definition of direct investment capital.) Income on direct investment is presented on a net basis for direct investment made abroad and in the reporting economy (i.e., receipts of income on equity and income on debt less payments on income on equity and income on debt for each). 277. Income on equity is subdivided into (i) distributed income (dividends and distributed branch profits) and (ii) reinvested earnings and undistributed branch profits. Distributed income may consist of dividends on common or preferred shares owned by direct investors in associated enterprises abroad, or vice versa. 278. Reinvested earnings comprise direct investors’ shares—in proportion to equity held—of (i) earnings that foreign subsidiaries and associated enterprises do not distribute as dividends and (ii) earnings that branches and other unincorporated enterprises do not remit to direct investors. (If that part of earnings is not identified, all branch earnings are considered, by convention, to be distributed.) Thus, reinvested earnings may be calculated as the entrepreneurial income (net operating surplus) of the direct investment enterprise, plus any income or current transfers receivable, minus any income or current transfers payable. The latter include any current taxes payable on income, wealth, etc. 279. Income on debt consists of interest payable—on intercompany debt—to or from direct investors from or to associated enterprises abroad. Income on nonparticipating preference shares is treated as interest income, rather than dividend income, and is recorded in income on debt. Portfolio investment income 280. Portfolio investment income comprises income transactions between residents and nonresidents and is derived from holdings of shares, bonds, notes, and money market instruments and associated with financial derivatives. This category is subdivided into income on equity (dividends) and income on debt (interest). See Chapter 19 for details on new financial instruments and treatment of financial derivatives, such as options. The financial instrument classification scheme for portfolio investment income is consistent with that in the financial account and with that in the international investment position. Subsectoring into domestic institutional sectors (monetary authorities, general government, banks, and other) is shown under Selected Supplementary Information. (See the table at the end of Chapter 8.) A variety of other supplementary disaggregations by foreign sector, etc. may be desirable for specific analytical purposes. Other investment income 281. Other investment income covers interest receipts and payments on all other resident claims (assets) on and liabilities to nonresidents, respectively. This category also includes, in principle, imputed income to households from net equity in life insurance reserves and in pension funds. Other investment income is classified by the domestic sectors previously noted. Interest on assets comprises interest on long- and short-term loans, on deposits, on other commercial and financial claims, and on an economy’s creditor position in the Fund, SDR holdings, and loans to the Fund. Interest on liabilities covers interest on loans, on deposits, and on other claims and interest related to the use of Fund credit and loans from the Fund. Also included is interest paid to the IMF on the Fund’s SDR holdings in the General Resources Account. Borderline distinctions may arise between interest income and certain commissions and fees, such as commitment charges on undrawn funds. These are included in financial services. (See Chapter 13.) Time of Recording of Investment Income 282. Dividends are recorded as of the date payable. Interest income is recorded on an accrual basis. If the interest is not actually paid, an income entry is recorded under the appropriate instrument and a counterpart entry is made in the financial account to reflect an increase in the claim associated with nonpayment. (See paragraph 121.) 283. For zero coupon and other deep discounted bonds, the substantial difference between the discounted issue price and the value at maturity is treated as interest. That difference is recorded as accruing over the life of the bond as a series of interest payments rather than being recorded when the interest is due for payment. If these securities are traded—prior to maturity—in the secondary market, prevailing rates that reflect the difference between the new owner’s cost and the value at maturity should be used for the subsequent recording of interest on these securities. Implementation of this treatment may be difficult. (See paragraph 396.) Reinvested earnings of direct investment enterprises are recorded in the balance of payments in the periods in which the income is earned. Distributed (remitted) earnings of branches and other unincorporated enterprises are recorded as of the times the earnings are transferred. 284. This difference in times of recording for earnings that are formally distributed and for other earnings is attributable to the fact that reinvested earnings represent the net income accruing during a specific period. In contrast, dividends and remitted earnings of branches are discretionary distributions that can be made at any time—even in a period when a net loss is sustained. Therefore, these dividends and remitted earnings are not attributable to the earnings of a particular period. To determine the period in which those reinvested earnings are earned or other investment income becomes payable, it may be helpful to refer to balance sheets, annual reports, and similar documents of the direct investor or the enterprise. Measurement and Recording of Direct Investment Earnings 285. Direct investment earnings are measured on the basis of current operating performance. Operational earnings represent income from normal operations of the enterprise and do not include any realized or unrealized holding (capital) gains or losses arising from valuation changes, such as inventory write-offs; gains or losses on plant and equipment from the closure of part or all of a business; write-offs of intangibles, including goodwill, because of unusual events or developments during the period; write-offs of research and development expenditures; losses on the write-offs of bad debts or on expropriation without compensation; abnormal provisions for losses on long-term contracts; and exchange-rate-related gains and losses. Unrealized gains or losses resulting from the revaluation of fixed assets, investments, and liabilities and any realized gains or losses resulting from the disposal of assets or liabilities should be excluded from direct investment earnings; that is, gains should not be added in and losses should not be deducted. In addition, valuation changes resulting from unforeseen obsolescence, catastrophes, and depletion of natural resources are treated as holding losses at the times that the decreases in values actually occur. Because data for many countries are available only on an all-inclusive basis, when holding gains and losses and other extraordinary income are included in reported earnings, those countries that report earnings on either an operating basis or all-inclusive basis should collect and publish supplementary information on holding gains and losses and other extraordinary items. This practice would enhance international comparability for both flows and stock positions. 286. Earnings of a direct investment enterprise are measured net of income or corporation taxes payable without penalty during the recording period by the enterprise to the economy in which that enterprise operates. This practice is followed because such taxes are considered payable by the enterprise and not by its owners. Furthermore, earnings should be calculated net of any provision for depreciation of fixed capital. Depreciation is measured by the value, at current replacement cost, of the reproducible fixed assets used up (as a result of normal wear and tear, foreseen obsolescence, and accidental damage not made good by repair) during an accounting period. In the calculation of depreciation, the expected economic life of an individual asset should be taken into account. Although depreciation should, in principle, be calculated at current replacement cost, often the only data available may be based on historical cost. 287. Dividends payable to direct investors, remitted branch earnings, and interest payable by direct investment enterprises are recorded gross of any withholding taxes. These taxes are deemed paid by the recipient and are transferred to the country of the direct investment enterprise and recorded under transfers. 288. Reinvested (undistributed) earnings of branches and other unincorporated direct investment enterprises and direct investors’ shares of earnings, which are not formally distributed, of incorporated direct investment enterprises are deemed to provide additional capital to the enterprises and to increase the value of an economy’s stock of foreign assets and liabilities. When such earnings are recorded in the balance of payments, therefore, entries should be made both for direct investment income and for direct investment capital. For example, reinvested earnings attributable to a resident direct investor of a direct investment subsidiary or of a branch should be entered as a credit in the current account under direct investment income (income on equity) and as a debit in the financial account under direct investment-abroad (reinvested earnings). Portfolio investors’ shares in earnings, which are not formally distributed, of incorporated direct investment enterprises should not be entered in the balance of payments. 289. Direct investors’ shares in earnings, other than holding (capital) losses of enterprises, should be recorded as negative income in the direct investment income component of the balance of payments. Thus, the economy recording losses on residents’ direct investments made abroad should enter the losses as negative credits, while the economy in which the direct investment is made should record the losses as negative debits. This method of recording losses is used so that the credit side of the component will reflect the compiling economy’s net earnings on direct investments made abroad, while the debit side will refer to nonresident direct investors’ net earnings on direct investments in the compiling economy. Stock Dividends, Bonus Shares, and Liquidating Dividends 290. The distribution of earnings, in the form of stock dividends, to nonresident shareholders is construed as a capitalization of current earnings and an alternative to distributing cash dividends. Such earnings distributions are recorded in the balance of payments in the same manner as reinvested earnings (i.e., as investment income in the current account and as offsetting equity investment in the financial account). General bonus shares, on the other hand, represent the substitution of one type of equity (paid-up capital or capital stock) for another (reinvested earnings) and thus should not be recorded in the balance of payments. (In some countries, accumulated reserves from reinvested earnings are credited to a reserve account that is converted to bonus shares when the account reaches a certain level.) Liquidating dividends are excluded from investment income because such dividends represent returns of capital contributions rather than remittance (distribution) of earnings. Therefore, liquidating dividends should be recorded in the financial account as withdrawals of capital. XV. Current Transfers Definition and Coverage 291. When an entry in the balance of payments records that a resident entity in one economy has provided a nonresident entity with a real resource or a financial item (e.g., goods, the provision of a service, or a financial or nonfinancial asset), the double-entry system requires that an offsetting entry be made. If the offsetting entry does not consist of the provision of a real resource or a financial item, the offset is designated as a transfer. The coverage of transfers in the balance of payments is determined by decisions regarding two issues. 292. The first issue is whether or not the provision of an economic value should be recorded even when no quid pro quo is received. If such a provision is not recorded, no offsetting entry showing a transfer is required. The recommendation in this Manual, however, is that the balance of payments statement should show all economic values, including those without a quid pro quo, provided by residents of one economy to residents of another economy. The statement should also show changes in real resources and financial items whenever such changes result from changes of residence (migration) on the part of individuals and whenever the changes affect a specific economy and the rest of the world. The statement should exclude similar changes that come about through changes in the territory of an economy. 293. The second issue concerns the separation of benefits provided or received into (i) those regarded as economic values (i.e., those that constitute real resources or financial items) and (ii) those on which no economic value is placed (i.e., those that do not provide a quid pro quo and thus constitute transfers). The intended distinction between intangible real resources (services and income) and transfers that offer no quid pro quo cannot be precisely defined. (See paragraph 191.) In contrast to real resources, transfers, which may be voluntary or obligatory, often reflect benefits that cannot be quantified (e.g., improved political or economic relationships between parties; nonspecific amounts of services, such as administrative, protective, and defense services made available by governments to taxpayers; or intangibles, such as those involved in carrier registration, provided on a compulsory basis). 294. In a departure from all previous editions of the Manual, the fifth edition identifies transfers as current and capital. As a result of this change in treatment, only current transfers are included in the current account; capital transfers are included in the capital account component of the capital and financial account. The new treatment reflects international efforts to harmonize the Manual with the SNA and eliminates a major discordance between the two systems. Distinction Between Current and Capital Transfers 295. To distinguish current transfers from capital transfers, the reader may find it helpful to focus on the special characteristics of capital transfers. First, a transfer in kind is a capital transfer when it consists of (i) the transfer of ownership of a fixed asset or (ii) the forgiveness of a liability by a creditor when no counterpart is received in return. Second, a transfer of cash is a capital transfer when it is linked to, or conditional on, the acquisition or disposal of a fixed asset (for example, an investment grant) by one or both parties to the transaction. A capital transfer should result in a commensurate change in the stocks of assets of one or both parties to the transaction. Capital transfers also may be distinguished by being large and infrequent, but capital transfers cannot be defined in terms of size or frequency. 296. Current transfers consist of all transfers that are not transfers of capital. Current transfers directly affect the level of disposable income and should influence the consumption of goods or services. That is, current transfers reduce the income and consumption possibilities of the donor and increase the income and consumption possibilities of the recipient. 297. A cash transfer could be regarded as a capital transfer by one party to a transaction and as a current transfer by the other party. So that a donor and a recipient do not treat the same transaction differently, it is recommended that a transfer be classified as a capital transfer by both parties—even if the transfer is linked to the acquisition or disposal of a fixed asset by only one of the parties. On the other hand, if available evidence creates serious doubt that a cash transfer should be classified as a capital transfer, the transfer should be classified as a current transfer. (The Manual and the SNA contain consistent criteria for distinguishing between the two types of transfers.) Classification 298. Current transfers are classified, according to the sector of the compiling economy, into two main categories: general government and other sectors. General government transfers comprise current international cooperation, which covers current transfers—in cash or in kind—between governments of different economies or between governments and international organizations. Included are: - cash transfers effected between governments for the purpose of financing current expenditures by the recipient government; - gifts of food, clothing, other consumer goods, medical supplies, etc. associated with relief efforts in the wake of famine, earthquakes, other natural disasters, war, or other actions (Administrative costs directly associated with aid are included); - gifts of certain military equipment, that is, weapons and the equipment to support and deliver weapons, which—by convention—are not treated as fixed assets in the Manual or in the SNA (Other durable equipment—such as most structures—and transport, hospital, and communications equipment are treated as fixed assets and are included under capital transfers. See paragraph 349.); - annual or other regular contributions paid by member governments to international organizations and regular transfers made as a matter of policy by the international organizations to governments; - payments by governments or international organizations to governments for salaries of technical assistance staff and for related costs and expenses. 299. Other transfers of general government cover offsets to transactions between governments of compiling economies and nonresidents other than governments and international organizations. Included on the credit side are current taxes on income, wealth, etc. and other transfers, such as social security scheme contributions. Social benefits, refunds of taxes, indemnity payments, and pension payments from unfunded plans are included on the debit side. Other taxes and subsidies on production, including those implicit under a multiple official exchange rate system, are covered when appropriate. (See paragraph 134.) 300. Any fines, penalties, or interest charges on the late payment of taxes are included in the value of taxes. Other fines are treated separately as current transfers. By convention, payments (fees) for carrier registrations or for licenses to fish, hunt, etc. are treated as taxes and included in transfers; other fees, such as those for passports and airport fees, to governments are treated as payments for government services rather than as transfers. 301. Current transfers between other sectors of an economy and nonresidents comprise those occurring between individuals, between nongovernmental institutions or organizations (or between the two groups), or between nonresident governmental institutions and individuals or nongovernmental institutions. The same basic items (described in paragraphs 298 through 300) for the government sector are generally applicable to other sectors, although there are some differences within components. In addition, there is the category of workers’ remittances. 302. Workers’ remittances covers current transfers by migrants who are employed in new economies and considered residents there. (A migrant is a person who comes to an economy and stays, or is expected to stay, for a year or more.) Workers’ remittances often involve related persons. Persons who work for and stay in new economies for less than a year are considered nonresidents; their transactions are appropriate mainly to the component for compensation of employees. (See paragraphs 269 through 272.) 303. Other current transfers, in cash or in kind, between resident and nonresident entities include those (such as food, clothing, other consumer goods, medical supplies, etc.) for distribution to relieve hardships caused by famine, other natural disasters, war, etc. and regular contributions (including membership dues) to charitable, religious, scientific, and cultural organizations. Also covered are gifts, dowries, and inheritances; alimony and other support remittances; tickets sold by, and prizes won from, lotteries; and payments from unfunded pension plans by nongovernmental organizations. 304. Included among other transfers are entries made, on the debit side, for private parties for taxes on income, wealth, etc. and social security contributions paid to governments. (These transfers are the counter- part entries to be made, on the credit side, for general government. See paragraph 299.) Conversely, entries made, on the credit side, for social benefits and refunds of taxes to private transactors are the counterparts to such entries on the debit side for government. Premiums (minus service charges) and claims for non-life insurance also are included among current transfers. 305. A remittance from a resident of a specific economy to finance another resident staying abroad only temporarily is a transaction between residents of the same economy rather than a transfer. The goods and services procured abroad by the traveler or other resident to whom the remittance is made are recorded in the balance of payments under travel. Valuation and Timing 306. Often, the value of transfers may not be readily determined because transfers are not perceived as arising directly from the productive process. Transfer values should be the same as the market values of the real and financial resources to which the transfers are offsets. If no actual market values are in evidence, those resources should be valued on the basis of explicit costs incurred in providing the resources or on the basis of amounts that would be received if the resources were sold. In some cases, the donor and the recipient may view the value quite differently. So that the same values are reflected in the balance of payments statements of both the recipient and the donor, the value assigned by the donor is used as the basis for recording. 307. Various taxes, fines, and other transfers imposed by one party on another are recorded as of the date of occurrence of the underlying transactions or other flows that give rise to the liability to pay. Thus, with regard to taxes on income, all deductions at source and regular prepayments of income taxes are recorded in the periods in which the deductions and prepayments occur. However, any final tax liability on income may be recorded in the accounting period in which the liability is assessed. In a number of countries, the assessment period occurs subsequent to the period when the income is earned. Other transfers are recorded when the resources offset by the transfers change ownership. Coverage 308. The standard components of both the current account and the capital and financial account are discussed in Chapter 8. Coverage of the capital and financial account is described in paragraphs 172 through 181, and the classification of components appears at the end of the chapter. Capital and financial account transactions presented in this Manual are the same as those reflected in the capital and financial accounts of the SNA external accumulation accounts. However, in the balance of payments, the primary basis for classification of the financial account is functional category (i.e., direct investment, portfolio investment, other investment, and reserve assets) while the SNA classification is primarily by type of instrument: monetary gold, currency and deposits, loans, etc. (See Chapter 3 for details of the relationship between the two sets of accounts.) The structure of the capital and financial account also is generally compatible with other statistical systems of the IMF and is consistent with the classification of related income components of the current account and with the international investment position. 309. The capital and financial account of the balance of payments is divided into two main categories: the capital account and the financial account. The capital account covers all transactions that involve the receipt or payment of capital transfers and acquisition or disposal of nonproduced, nonfinancial assets. The financial account covers all transactions associated with changes of ownership in the foreign financial assets and liabilities of an economy. Such changes include the creation and liquidation of claims on, or by, the rest of the world. 310. All changes that do not reflect transactions are excluded from the capital and financial account. The following changes are among those specifically excluded: valuation changes in, or reclassifications of, reserves; changes resulting from territorial or other changes in classification of existing assets (for example, portfolio investment to direct investment); allocation or cancellation of SDRs; monetization or demonetization of gold; write-offs (that is, changes resulting from the unwillingness or inability of a debtor who resides in one economy to make full or partial repayment including expropriation without compensation—in settlement of a claim to a creditor who resides in another economy and regards part or all of the claim as unrecoverable); and valuation changes, which reflect exchange rate or price changes, in assets for which there are no changes in ownership. When there is a change in ownership and an asset acquired at one price is disposed of at a different price, both assets are recorded at respective market values and the difference in value—holding (capital) gain or loss—is included in the balance of payments. Capital Account 311. The capital account consists of two categories: (i) capital transfers and (ii) acquisition or disposal of nonproduced, nonfinancial assets. In previous editions of the Manual, capital transfers were included indistinguishably with current transfers in the current account. (The distinction between current transfers and capital transfers is fully discussed in Chapter 15, and capital transfers are covered in detail in Chapter 17). Capital transfers are classified primarily by sector (i.e., general government and other sectors). Within each, debt forgiveness is specified as category, while migrants’ transfers comprises a category under other sectors. 312. In concept, acquisition or disposal of nonproduced, nonfinancial assets comprises transactions associated with tangible assets that may be used or necessary for production of goods and services but are not actually produced (e.g., land and subsoil assets) and transactions associated with nonproduced, intangible assets (e.g., patents, copyrights, trademarks, franchises, etc. and leases or other transferable contracts). However, in the case of resident-nonresident transactions in land (including subsoil assets), all acquisition or disposal is deemed to occur between resident units, and the nonresident acquires a financial claim on a notional resident unit. The only exception concerns land purchased or sold by a foreign embassy when the purchase or sale involves a shift of the land from one economic territory to another. In such instances, a transaction in land between residents and nonresidents is recorded under acquisition or disposal of nonproduced, nonfinancial assets. The changes recorded for all of the assets described in this paragraph consist of the total values of assets acquired during the accounting period by residents of the reporting economy less the total values of the assets disposed of by residents to nonresidents. Financial Account Coverage 313. The foreign financial assets of an economy consist of holdings of monetary gold, SDRs, and claims on nonresidents. The foreign liabilities of an economy consist of indebtedness to nonresidents. 314. To determine whether financial items constitute claims on, or liabilities to, nonresidents, the creditor and debtor must be identified as residents of different economies. The unit in which the claim or liability is denominated—whether the national currency, a foreign currency, or a unit such as the SDR—is not relevant. Furthermore, assets must represent actual claims that are legally in existence. The authorization, commitment, or extension of an unutilized line of credit or the incurrence of a contingent obligation does not establish such a claim, and the pledging or setting aside of an asset (as in a sinking fund) does not settle a claim or alter the ownership of the asset. 315. However, options and other financial derivatives are included among financial items, in accordance with the treatment of these items in the SNA. These instruments can be valued by reference to the market prices of the derivatives or to the market prices of the commitments underlying the derivatives. Thus, both parties to a derivative contract recognize a financial instrument; one party recognizes a liability and the other recognizes a claim. Alternatively, this value could be viewed as the amount that one party must pay to the other party in order to extinguish the contract. As a result, derivatives satisfy the definition (see paragraph 314) of foreign financial assets and liabilities. A full discussion of derivative instruments appears in Chapter 19. 316. The conventions stated in this Manual result in ownership of some nonfinancial assets being construed as ownership of financial assets (claims). The following specific cases are examples. The ownership of immovable assets, such as land and structures, is always attributed to residents of the economies in which the assets are located. (See paragraph 64.) Therefore, when the owner of such assets is a nonresident, he has, in effect, a financial claim on a resident entity that is considered the owner. An unincorporated enterprise operating in a different economy from the one in which the owner of the enterprise resides is considered a separate entity; that entity is a resident of the economy in which it operates rather than a resident of the economy of the owner. All nonfinancial as well as financial assets attributed to such an enterprise are regarded as foreign financial assets for the owner of the enterprise. (See paragraph 205.) Any goods transferred under a financial leasing arrangement are presumed to have changed ownership. This change in ownership is financed by a financial claim (i.e., an asset of the lessor and a liability of the lessee). At the time the imputed change in ownership occurs, the market value of the good is recorded under goods in the current account, and an offsetting entry is made in the financial account. In subsequent periods, the actual leasing payment must be divided into interest, which is recorded in the current account as investment income payable or receivable, and debt repayment, which is recorded in the financial account and reduces the value of the lessor’s asset and the lessee’s liability. The financial asset should be classified as a loan. (See paragraph 206.) Transactions in assets 317. Transactions in assets (specifically, changes of ownership, including the creation and liquidation of claims) most often reflect exchanges of economic values. Financial items may be exchanged for other financial items or for real resources. However, one party to a transaction may provide a financial item and not receive any economic value in exchange. The offset to this latter type of provision of an asset is a transfer. 318. To establish whether a transaction involving a foreign asset is a transaction between a resident and a nonresident, the compiler must know the identities of both parties. The information available on transferable claims constituting foreign assets may not, however, permit identification of the two parties to the transaction. That is, a compiler may not be able to ascertain whether a resident, who acquired or relinquished a transferable claim on a nonresident, conducted the transaction with another resident or with a nonresident, or whether a nonresident dealt with another nonresident or with a resident. Thus, a recommendation that the balance of payments be confined solely to asset transactions between residents and nonresidents would be difficult or impossible to implement. Also, the introduction, in this Manual, of a domestic sectoral breakdown for the portfolio investment and other investment components of the financial account makes it necessary to record certain transactions between resident sectors within the economy—although such transactions cancel each other for the total economy. As a result, recorded transactions may include not only those that involve assets and liabilities and take place between residents and nonresidents but also those that involve transferable assets of economies and take place between two residents and, to a lesser extent, transactions that take place between nonresidents. (See paragraph 334.) 319. Because the credit and debit entries for most components of the financial account are—according to the rules of this Manual (see paragraphs 324 through 327)—generally net, many transactions between residents and between nonresidents will offset each other and thus will not actually appear as entries in the balance of payments statement. The most prevalent types of transactions that do not cancel each other are, for assets, those transactions between resident creditors classified in different functional categories or domestic sectors. For liabilities, the identity of the nonresident creditor is a factor only in a few instances (for example, in differentiating between direct investment and other types of capital and in determining regional allocation). 320. Net recording can also result in a transaction between a resident and a nonresident being offset by a transaction between residents or by a transaction between nonresidents. For instance, a resident may acquire a claim against a nonresident and, during the same recording period, transfer the claim to another resident classified in a different sector. The first resident’s transaction with a nonresident is canceled by the same resident’s subsequent transaction with another resident (if the value of the claim does not change). So, in the balance of payments, only the increase in the second resident’s holdings, which are actually acquired through a transaction with the first resident, are recorded. The effect is the same as if the second resident dealt directly with the nonresident. Reinvested earnings 321. The reinvested earnings of a direct investment enterprise (which accrue to a direct investor in proportion to participation in the equity of the enterprise) are recorded in the current account of the balance of payments as being paid to the direct investor as investment income-income on equity and in the financial account as being reinvested in the enterprise. Thus, these reinvested earnings increase the value of the stock of foreign assets of the direct investor’s economy. In a similar way, the distribution to direct investors of earnings (in the form of stock dividends) included in investment income-income on equity results in an increase, shown in the financial account, in the investors’ equity. Borderline cases 322. In some cases, questions may arise as to whether transactions have taken place; for example—when the maturity of a debt instrument is extended (and thereby changed from a nominally short-term claim to a nominally long-term claim) or when a government takes over an obligation for liabilities incurred by the private sector and the sector of the domestic debtor is altered. As a change in the original terms of a contract requires the assent of both parties, the existing claim is considered to be satisfied by the creation of a new one. (That is, a pair of transactions between a resident and a nonresident has occurred.) Changes in contractual terms for existing assets are thus construed as constituting transactions to be included in the balance of payments statement. 323. Another borderline case arises when a transactor intends to dispose of a certain asset at virtually the same moment that ownership of the asset is acquired. (Examples are arbitrage and certain other dealings in financial assets.) The issue may be viewed two ways. (i) If two changes of asset ownership have occurred, any profit or loss could be regarded as the realization of a holding (capital) gain or loss and could be entered, like any other realization of a holding gain or loss, in the appropriate component of the financial account. (ii) If no change of ownership has effectively taken place, the profit or loss could be seen as a fee for a service. It is recommended that the treatment described in (i) be used because entries in the financial account may reflect, without regard to the fact that some items may have been owned only briefly, the holding gain or loss realized on the purchase and sale of financial items at different market prices. Net recording 324. Two or more changes in a specific asset, or changes in two or more different assets classified in the same standard component, are consolidated in a single entry. This entry reflects the net effect of all the increases and decreases that occur during the recording period in holdings of that type of asset. For example, purchases (by nonresidents) of securities issued by resident enterprises of an economy are consolidated with sales (by nonresidents) of such securities, and the net change is recorded for that item. Net decreases in claims or other assets and net increases in liabilities are recorded as credits; net increases in assets and net decreases in liabilities are recorded as debits. 325. Net recording for standard components distinguished in the capital and financial account is specified partly because gross data for transactions often are not available. Changes derived from records showing amounts outstanding at the beginnings and ends of reporting periods, for example, always represent net changes. In addition, net recording generally is of more interest than gross recording, which would give added prominence to the transactions—between residents and between nonresidents—that are covered in the statement. Nonetheless, gross entries may be a relevant factor in analyzing aspects of the payments positions or financial markets (e.g., securities transactions) of economies, and such data can be utilized in supplementary presentations when appropriate. 326. For direct investment, particularly for reasons of analytic usefulness, it is suggested in this Manual that separate totals for liabilities to, and claims on, direct investors on the part of affiliated enterprises (and vice versa) be recorded for the appropriate components of direct investment (i.e., equity capital and other capital) in addition to the net figures for each. 327. In the totaling of net credits and debits for two or more separate components, the net approach is always favored. For instance, if equity securities and debt securities are combined to show a net figure for these two components, the net for each should be totaled—not net credits and debits separately. Classification 328. The primary purpose of the classification of items in the financial account is to facilitate analysis by distinguishing categories that exhibit different patterns of behavior. Changes in financial items recorded in the balance of payments occur for a wide variety of reasons. Such changes may occur to settle actual imbalances or to deal with prospective imbalances; to influence or react to exchange rate movements; to make holding (capital) gains (or avoid losses) on past or future valuation changes, including those resulting from exchange rate changes; to take advantage of interest rate differentials; to establish, acquire, or expand enterprises; to obtain or provide additional real resources in connection with commercial and financial activities; and to diversify investments. In the collection of data, it is usually not feasible to inquire into the underlying causes and motivations for changes in holdings. However, behavior is also associated to a considerable degree with such attributes as type of asset and sector of holder. Characteristics of this kind are readily observable and can thus be used as a basis for developing a classification scheme. 329. In this Manual, several bases are utilized for classifying financial items: functional type; assets and liabilities; type of instrument; domestic sector; original contractual maturity; and, in the case of direct investment, direction of investment (i.e., inward or outward). The primary basis for the classification of components of the financial account is functional type. Further classification levels in these categories are based upon factors relating to general analytical usefulness and compatibility with other statistical systems. The components can, of course, be rearranged to meet specific analytic requirements and to include, when appropriate, subordinate and supplementary classification. Functional types of investment 330. Four broad categories of investment, each of which is dealt with in a subsequent chapter, are distinguished. Direct investment The direct investor seeks a significant voice in the management of an enterprise operating outside his or her resident economy. To achieve this position, the investor must almost invariably provide a certain, often substantial, amount of the equity capital of the enterprise. The direct investor may also decide to supply other capital to further enterprise operations. Because of the direct investor's special relationship to the enterprise, his motives in supplying capital will be somewhat different from those of other investors. Thus, the capital supplied by a direct investor will probably exhibit characteristic behavior. Direct investment is classified primarily on a directional basis—resident direct investment abroad and nonresident investment in the reporting economy—and is subdivided into equity capital, reinvested earnings, and other capital. Equity capital and other capital, in turn, are subdivided into asset and liability transactions. (Related income, however, is shown on a net basis in the current account.) Portfolio investment Cross-border investment in equity and debt securities (other than direct investment) is both quantitatively and analytically significant. Such cross-border investment therefore warrants separate recording and coverage, particularly in view of the trend towards free international movement of capital and the growth of new financial instruments and new market participants. Coverage of this category is expanded to reflect these developments and to include money market debt instruments and financial derivatives, as well as longer-term debt and equity securities. Other investment This residual group comprises many different kinds of investments. In practice, it is not feasible to draw any further functional distinctions among the various types because the reasons underlying the flows are too numerous and varied. Other breakdowns are therefore used to distinguish behavioral differences among components of this category (i.e., trade credits, loans, currency and deposits, use of Fund credit, loans from the Fund, etc.). Reserve assets These are foreign financial assets available to, and controlled by, the monetary authorities for financing or regulating payments imbalances or for other purposes. Reserve assets consist of monetary gold, SDRs, reserve position in the Fund, foreign exchange, and other claims. Changes in the holdings of reserves may reflect payments imbalances or responses to them, official exchange market intervention to influence the exchange rate, and/or other actions or influences. Assets and liabilities 331. The distinction between assets and liabilities is always of interest. Even for financial intermediaries, which in effect borrow and lend abroad the same funds, the terms of the borrowing and lending are usually different. Thus, the two offsetting flows may have different implications for the balance of payments. Type of instrument 332. For portfolio investment, the type of instrument is the primary classification (i.e., equity and debt securities). Debt securities are subdivided into bonds and notes, money market instruments, and financial derivatives. Although the sectoral subdivision for portfolio investment is secondary, there is no implication that, in certain instances, it may not be of equal interest to the compiling economy. The same holds true for other investment. Domestic sector 333. For assets, the institutional sector of the domestic (resident) creditor and, for liabilities, that of the domestic debtor often are factors that influence transactions in financial items. The sectoring also improves links with the IMF and other statistical systems, including the SNA. This Manual distinguishes four sectors—monetary authorities, general government, banks, and other sectors— for both portfolio investment and other investment. 334. Because the domestic creditor is always the owner of the asset, the creditor is invariably one party to any change of ownership of the asset. Therefore, for assets, sector attribution by creditor and by transactor coincide. A claim on a domestic debtor, however, may change ownership between a domestic creditor and a foreign creditor so that the domestic sector of the debtor may not coincide with that of the transactor. Nevertheless, the sector of the debtor is the one that determines the classification of the change of ownership that has occurred because the original nature of the liability is generally considered more significant than the identity of the present holder of the claim. However, in those instances in which the nonresident creditor or transactor may be of particular interest (e.g., in the context of international banking and external debt statistics), a supplementary breakdown by nonresident sector would be most useful for the compiling economy. 335. For determination of the domestic sector to which a transaction is attributed, guarantees and financial intermediation in which the intermediary is not actually ______________________________________________________________________ 8See Appendix 2. the legal creditor or debtor are not taken into account. Although these aspects undoubtedly have an influence on the behavior of investment, they seem unlikely to constitute the main motivation of the financial flow in question. For instance, while the availability of government credit insurance could be a factor in the extension of a trade credit, the private exporter’s decision to undertake the underlying transaction in goods and to arrange the financing for it is presumably a more basic consideration. Government-insured trade credits are thus treated as private trade credits rather than as government lending. Long- and short-term investment 336. For assets and liabilities in the category of other investment, this Manual retains the traditional distinction, which is based on the formal criterion of original contractual maturity, between long- and short-term investment. Long-term investment is defined as investment with an original contractual maturity of more than one year or with no stated maturity (e.g., equity securities). Short-term investment, which includes currency, is investment payable on demand or with an original contractual maturity of one year or less. These definitions are consistent with those in the SNA. 337. Although the traditional maturity distinction has been retained, it is widely recognized that innovations in financial markets (e.g., floating rate notes, rollovers, etc.) have diminished the usefulness of such a distinction for many purposes. In fact, a creditor and a debtor could, for example, have different views as to whether a particular instrument represents access to medium-term financing even though it is nominally a short-term instrument. Also, in many instances, original maturity may have no bearing on the length of time that an investment will be held. (Original maturity does appear to be one factor taken into account by investors and may tend to influence the behavior of the investment concerned.) In any event, the distinction is one that is still widely employed and can be applied without posing major problems of compilation. For many financial transactions, a date (the value date) is actually specified for the very purpose of ensuring that the timing agrees in the books of both parties. (See Chapter 6.) If no precise date can be fixed, the date on which the creditor receives payment or some other financial claim is decisive. 338. In the categories of direct investment, portfolio investment, and reserve assets, long- and short-term investment are not formally distinguished. For direct investment, such a distinction is not made because it is essentially determined by arbitrary enterprise decisions and because of the fact that there is no meaningful analytic distinction between the two maturities for intercompany flows. For portfolio investment and reserve assets, formal maturity is not likely to be a significant factor affecting the behavior of the components of the categories. Liabilities Constituting Foreign Authorities’ Reserves (LCFARs) 340. LCFARs are no longer identified among the financial items of the portfolio investment and other investment categories of the financial account. Rather, LCFARs are subdivided by instrument and sector in a supplementary presentation and discussed, along with exceptional financing transactions, in Chapter 22. Valuation and Timing 341. Resources included under capital transfers should be valued at the prices that would have been received if the resources had been sold. The value assigned by the donor should be used as the basis for recording. The forgiveness of debts agreed to by the parties concerned are valued in the same way as other changes in financial assets and liabilities. Acquisition or disposal of nonproduced, nonfinancial assets is recorded at the actual transaction value of assets acquired less assets disposed of. Changes in financial assets and liabilities that stem from transactions between two parties are valued to reflect the market values of the assets underlying the acquisition or disposition. The concept of market value and the specific application of market value to financial items are discussed in Chapter 5. 342. Acquisition or disposal of nonproduced, nonfinancial assets and transactions in financial items are recorded on a change-of-ownership basis. When change of ownership is not obvious, the time at which a transaction is considered to take place is when the parties to the transaction enter the transaction (or, for financial items, the claim and liability) on their books. For many financial transactions, a date (the value date) is actually specified for the very purpose of ensuring that the timing agrees in the books of both parties. (See Chapter 6.) If no precise date can be fixed, the date on which the creditor receives payment or some other financial claim is decisive. Coverage 343. The capital account, as constituted in this edition of the Manual, differs markedly from the capital account in previous editions. (See chapters 8 and 16.) The former capital account has been expanded and redesignated as the capital and financial account, which is comprised of those two major categories. This chapter encompasses the first—the capital account, the components of which are capital transfers and acquisition or disposal of nonproduced, nonfinancial assets. Capital Transfers 344. The distinction between capital transfers and current transfers is discussed in Chapter 15. A capital transfer may be in cash or in kind. If in cash, the transfer is linked to, or conditional on, the acquisition or disposal of a fixed asset by one or both parties to the transaction (e.g., an investment grant). Although one party may regard particular transfers as current rather than capital, a transfer should be classified as a capital transfer for both parties even if it is linked to the acquisition or disposal of a fixed asset by only one of the parties. However, if there is serious doubt as to the classification of a cash transfer as current or capital, the transfer should be classified as a current transfer. 345. If in kind, the capital transfer consists of (i) the transfer of ownership of a fixed asset or (ii) the forgiveness, by mutual agreement between creditor and debtor, of the debtor’s financial liability when no counterpart is received in return by the creditor. Criteria (referred to in previous paragraphs and in Chapter 15) for classification of transfers as current or capital are fully consistent with criteria in the SNA. Classification 346. Capital transfers are classified into two sectoral components: (i) general government and (ii) other sectors. Within each of these components, debt forgiveness is separately identified. In other sectors, migrants’ transfers also are separately identified. General government 347. Under general government, the following categories of transfers are to be distinguished for purposes of balance of payments recording. Debt forgiveness 348. When a government creditor entity in one economy formally agrees—via a contractual arrangement—with a debtor entity in another to forgive (extinguish) all, or part, of the obligations of the debtor entity to that creditor, the amount forgiven is treated as a capital transfer from the creditor to the debtor. That is, the balance of payments reflects a reduction of the liability offset by the transfer. Similar treatment is applicable when a government entity’s debt is forgiven by agreement with a creditor entity in another economy. (The detailed accounting treatments of debt forgiveness under varying circumstances, of arrears and other aspects of debt reorganization, and of exceptional financing are covered in Chapter 22.) Other general government 349. Among other capital transfers of general government, investment grants are significant. Investment grants consist of capital transfers, in cash or in kind, made by governments to nonresident units, or vice versa, to finance all or part of the costs of acquiring fixed assets. The recipients are obliged to use investment grants in cash for purposes of gross fixed capital formation, and the grants are often tied to specific investment projects, such as large construction projects. If the investment project continues over a long period of time, an investment grant in cash may be paid in installments. Installment payments continue to be classified as capital transfers even though such payments may be recorded in a succession of different accounting periods. Investment grants in kind consist of transfers of transport equipment, machinery, other equipment, and the direct provision of buildings or other structures by governments to nonresident units. Most structures (such as airfields, docks, roads, hospitals, and other buildings) used by military establishments also are treated as capital transfers. These structures may be constructed by enterprises owned by the donor government or by other enterprises that are paid directly by the donor government. Investment grants do not include transfers of military equipment in the form of weapons or equipment with the sole function of being fired. Such weapons and equipment are not classified as fixed assets but, by convention, are included under current transfers. (See Chapter 15.) 350. Also included under governmental capital transfers are taxes on capital transfers; that is, taxes levied, at irregular and infrequent intervals, on the values of assets transferred to nonresidents. These consist largely of inheritance taxes, death duties, and gift taxes. Compensation payments by government to nonresidents for extensive damages to capital assets or serious injuries not covered by insurance policies represent another form of capital transfers. These include payments for damages caused by oil spills, major explosions, the side effects of drugs, etc. Other sectors 351. Among capital transfers of sectors other than general government, migrants’ transfers, debt forgiveness, and other transfers are distinguished as balance of payments reporting categories. Migrants’ transfers 352. In the strictest sense, these transfers are not transactions between two parties but contra-entries to flows of goods and changes in financial items that arise from the migration (change of residence for at least a year) of individuals from one economy to another. The transfers to be recorded are thus equal to the net worth of the migrants. 353. All the household and personal effects of migrants, together with any movable capital goods actually transferred from the old to the new economy, are included under goods-general merchandise. Those flows of goods and corresponding offsets should, in principle, be recorded at the time of migration. If the flows are not derived from the trade returns, no timing correction of the figures is suggested, but offsets are recorded in the same period in which exports and imports are recorded. 354. Enterprises (including those that utilize land, structures, and movable capital goods not actually transferred) in which migrants retain ownership after departure become foreign claims of the migrants and, consequently, of the economies to which they have migrated. Migrants’ claims on or liabilities to other residents of their former economies or claims on or liabilities to residents of a third economy also become foreign claims or liabilities of the economies to which they have migrated. Migrants’ claims on or liabilities to the latter economies become claims between residents of these economies. Changes in the net financial assets of the relevant economies and the offsets thereto are recorded at the times of migration. 355. In practice, it is recognized that few countries are in a position to record all assets (other than possessions and funds accompanying migrants upon entry to new economies) in the balance of payments. Also, some countries treat those possessions and funds as transfers and record the remaining net worth of migrants as changes in the stock of claims in the international investment position. In such cases, the changes should be separately identified in reports made to the IMF. Debt forgiveness 356. Paragraph 348, with references to “government entity” replaced by “nongovernment entity,” is relevant. Other transfers 357. With references to “government entities” replaced by “nongovernment entities,” the discussion on investment grants in paragraph 349 is relevant. Compensation payments detailed in paragraph 350 are relevant, but the payments are made by nongovernment entities. The same applies, for nongovernment entities, to debit-side entries for taxes (i.e., inheritance taxes, death duties, and gift taxes levied at irregular and infrequent intervals) referred to on the credit side for general government. Also recorded under the investment grant portion of other transfers are legacies or large gifts—including legacies to nonresident, nonprofit institutions (NPIs)—and exceptionally large donations made by households or enterprises to nonresident NPIs for financing gross fixed capital formation. (Examples are gifts to universities to cover costs of building new residential quarters, libraries, laboratories, etc.) Acquisition or Disposal of Nonproduced, Nonfinancial Assets 358. This category of the capital account is described in Chapter 16. Acquisition or disposal of nonproduced, nonfinancial assets comprises, in concept, acquisition or disposal of nonproduced, tangible assets (land and subsoil assets) and acquisition or disposal of nonproduced, intangible assets, such as patents, copyrights, trademarks, franchises, etc. and leases or other transferable contracts. (See paragraph 312 for the treatment of such resident/nonresident transactions.) In the balance of payments accounts, it is the intangible assets category that generally would be most applicable. It is necessary to distinguish between the use of such assets (recorded under services—royalties and license fees) and the purchase or sale of assets (recorded in the intangible assets category of the capital account) if data are available. (Valuation and timing of capital transfers and acquisition or disposal of nonproduced, nonfinancial assets are discussed in Chapter 16, paragraphs 341 and 342.) Concept and Characteristics 359. Direct investment is the category of international investment that reflects the objective of a resident entity in one economy obtaining a lasting interest in an enterprise resident in another economy. (The resident entity is the direct investor and the enterprise is the direct investment enterprise.) The lasting interest implies the existence of a long-term relationship between the direct investor and the enterprise and a significant degree of influence by the investor on the management of the enterprise. Direct investment comprises not only the initial transaction establishing the relationship between the investor and the enterprise but also all subsequent transactions between them and among affiliated enterprises, both incorporated and unincorporated. 360. The concept of direct investment presented in this Manual is the basis for that adopted in the second edition of the OECD Detailed Benchmark Definition of Foreign Direct Investment. The concept described in this Manual is broader than the SNA concept of foreign-controlled, as distinguished from domestically controlled, resident enterprises. In the SNA, that distinction (as well as the one between public and private enterprises) is made in the compilation of various accounts because of the distinction’s potential analytic usefulness in the examination of differences (characteristics such as value added, investment, employment, etc.) between enterprise subsectors. Thus, linkage of the direct investment component of the financial account with the foreign-controlled sector is by no means a complete one, primarily because the two serve different purposes. As presented in this Manual, the primary distinguishing feature of direct investment is the significant influence that gives the investor an effective voice in management. For the foreign-controlled sector, the primary distinguishing feature is control. 361. The benefits that direct investors expect to derive from a voice in management are different from those anticipated by portfolio investors having no significant influence over the operations of enterprises. From the viewpoint of direct investors, enterprises often represent units in a multinational operation, the overall profitability of which depends on the advantages to be gained by deploying the various resources available to the investors in units located in different economies. Direct investors are thereby in a position to derive benefits in addition to the investment income that may accrue on the capital that they invest (e.g., the opportunity to earn management fees or other sorts of income). Such extra benefits are likely to be derived from the investors’ associations with the enterprises over considerable periods of time. In contrast, portfolio investors are primarily concerned about the safety of their capital, the likelihood of appreciation in value, and the return generated. Portfolio investors will evaluate, on a separate basis, the prospects of each independent unit in which they might invest and may often shift their capital with changes in these prospects, which may be affected by short-term developments in financial markets. Direct Investment Enterprises 362. Reflecting the difference noted previously, a direct investment enterprise is defined in this Manual as an incorporated or unincorporated enterprise in which a direct investor, who is resident in another economy, owns 10 percent or more of the ordinary shares or voting power (for an incorporated enterprise) or the equivalent (for an unincorporated enterprise). Direct investment enterprises comprise those entities that are subsidiaries (a nonresident investor owns more than 50 percent), associates (an investor owns 50 percent or less) and branches (wholly or jointly owned unincorporated enterprises) either directly or indirectly owned by the direct investor. (See the Guide for examples of chains of ownership.) Subsidiaries in this connotation also may be identified as majority owned affiliates. As defined in the SNA, foreign-controlled enterprises include subsidiaries and branches, but associates may be included or excluded by individual countries according to their qualitative assessments of foreign control. Also, a public enterprise, as defined in the SNA, may in some instances be a direct investment enterprise, as defined in this paragraph. 363. Although the 10 percent criterion is specified in the Manual, some countries may choose to allow for two qualifications that involve a degree of subjective judgment. First, if the direct investor owns less than 10 percent (or none) of the ordinary shares or voting power of the enterprise but has an effective voice in management, the enterprise may be included. Second, if the investor owns 10 percent or more but does not have an effective voice in management, the enterprise may be excluded. Although the application of these two qualifications is not recommended in this Manual, countries that apply such qualifications should identify the aggregate value of transactions in order to facilitate international comparability. 364. Most direct investment enterprises are either (i) branches or (ii) subsidiaries that are wholly or majority owned by nonresidents or in which a clear majority of the voting stock is held by a single direct investor or group. The borderline cases are thus likely to form a rather small proportion of the universe. 365. In this Manual, it is recommended that so-called special purpose entities (SPEs) be included as direct investment enterprises if the entities meet the criteria stated in previous paragraphs. Whatever the structure (e.g., holding company, base company, regional headquarters) or purpose (e.g., administration, management of foreign exchange risk, facilitation of financing of investments), SPEs are an integral part of the structure of the direct investment network as are, for the most part, SPE transactions with other members of the group. However, for SPEs with a sole purpose of serving in a financial intermediary capacity (as is the case for banks and other financial intermediaries such as security dealers), transactions recorded under direct investment are limited to those associated with permanent debt and equity. (See paragraph 372.) For countries employing other treatments of SPEs and countries employing the recommended treatment (if it is feasible to do so), the value of SPE transactions as a group should be separately identified in terms of standard components to permit consistent international comparisons. 366. Special relationships may exist between or among enterprises operating in different economies. These relationships may involve a common board of directors, a high degree of policy coordination, and/or—in the absence of any ownership of equity interest that signifies direct investment—a pooling of resources. If transactions between or among such enterprises are treated by individual countries as direct investment, these transactions should be identified as specified in paragraph 365. Direct Investors 367. Direct investors may be individuals; incorporated or unincorporated private or public enterprises; associated groups of individuals or enterprises; governments or government agencies; or estates, trusts, or other organizations that own (as described previously) direct investment enterprises in economies other than those in which the direct investors reside. The members of an associated group of individuals or enterprises are, through their combined ownership of 10 percent or more, deemed to have an influence on management that is similar to the influence of an individual with the same degree of ownership. Direct Investment Capital 368. Direct investment capital is (i) capital provided (either directly or through other related enterprises) by a direct investor to a direct investment enterprise or (ii) capital received from a direct investment enterprise by a direct investor. For the economy in which the investment is located, such capital includes funds provided directly by the direct investor and funds provided by other direct investment enterprises associated with the same direct investor. For the economy of the direct investor, such capital includes only funds provided by the resident investor. Direct investment capital does not include funds provided by, or received from, any other sources—including sources of funds for which the direct investor merely makes the arrangements or guarantees repayment (e.g., loans from outside parties to an incorporated direct investment enterprise). 369. The components of direct investment capital transactions, which—as noted in paragraph 330—are recorded on a directional basis (i.e., resident direct investment abroad and nonresident direct investment in the recording economy), are equity capital, reinvested earnings, and other capital associated with various intercompany debt transactions. Equity capital comprises equity in branches, all shares in subsidiaries and associates (except nonparticipating, preferred shares that are treated as debt securities and included under direct investment-other capital—see paragraph 370), and other capital contributions. Reinvested earnings consist of the direct investor’s share (in proportion to direct equity participation) of earnings not distributed as dividends by subsidiaries or associates and earnings of branches not remitted to the direct investor. If such earnings are not identified, all branch earnings are considered, by convention, to be distributed. Because undistributed (reinvested) earnings result in additions to direct investors’ equity in subsidiaries and branches, these earnings are included as direct investment capital transactions in amounts equal to (and with opposite sign) the corresponding entries recorded under direct investment income. (See paragraphs 278, 288, and 321.) 370. Other direct investment capital (or intercompany debt transactions) covers the borrowing and lending of funds—including debt securities and suppliers’ credits—between direct investors and subsidiaries, branches, and associates. The borrowing and lending are reflected in intercompany claims and liabilities (receivables and payables), respectively. Both loans to subsidiaries from direct investors and loans from subsidiaries to direct investors are included. In contrast to the treatment of other investment, no distinction is made between short- and long-term investment. 371. Instances of reverse investment or cross participation may arise. A direct investment enterprise can have an interest in its direct investor. That interest is regarded as an offset to capital invested by the direct investor (i.e., as disinvestment). For the economy of the direct investment enterprise, such reverse investment in the form of equity is recorded under direct investment in reporting economy-equity capital-claims on direct investors. For the economy of the direct investor, reverse investment in the form of equity is recorded under direct investment abroad-equity capital-liabilities to affiliated enterprises. Reverse investment in the form of other instruments should be recorded, under direct investment in reporting economy-other capital or direct investment-abroad-other capital. In cases in which the equity participation is at least 10 percent in both directions, two direct investment relationships are established. Such transactions are recorded as direct investment claims and liabilities in both directions; that is, as direct investment-in reporting economy and as direct investment-abroad, for each economy as appropriate. 372. Intercompany transactions between affiliated banks (depository institutions) and affiliated financial intermediaries (e.g., security dealers)—including SPEs with the sole purpose of serving as financial intermediaries—recorded under direct investment capital transactions are limited to those transactions associated with permanent debt (loan capital representing a permanent interest) and equity (share capital) investment or, in the case of branches, fixed assets. Deposits and other claims and liabilities related to usual banking transactions of depository institutions and claims and liabilities of other financial intermediaries are classified, as appropriate, under portfolio investment or other investment. The stock of foreign assets and liabilities of banks and other financial intermediaries (international investment position) should be treated in a parallel manner. 373. Transactions through SPEs (with the exceptions noted in paragraphs 365 and 372) are included in direct investment capital transactions, and the related stocks of assets and liabilities are covered in the direct investment position. 374. Direct investment capital transactions include those that create or dissolve investments as well as those that serve to maintain, expand, or reduce investments. Thus, when a nonresident who previously had no equity in an existing resident enterprise purchases 10 percent or more of the shares or voting power of that enterprise from a resident, the market value of equity holdings acquired and any other capital invested should be recorded as direct investment. When a nonresident holds less than 10 percent of the shares of an enterprise as a portfolio investment and subsequently acquires additional shares resulting in a direct investment interest (10 percent or more), only the purchase of additional shares is recorded as a direct investment transaction. The holdings that were acquired previously are not recorded in the balance of payments but are reflected in a reclassification, from portfolio investment to direct investment, in the international investment position. Extent of Net Recording 375. Direct investment is often referred to as an asset for the economy of the direct investor and as a liability for the economy in which the direct investment enterprise operates. Actually, investor and enterprise have claims on, or liabilities to, each other—although the investor could be expected to have net foreign claims and the enterprise to have net foreign liabilities. It is recommended in this Manual that direct transactions in equity capital and other capital (intercompany debt) be recorded for assets (claims) and liabilities. Thus, in addition to a net investment transaction for each of these components, separate entries are made for the change in claims of direct investors on, and the change in liabilities to, affiliated enterprises. These entries are made under direct investment-abroad and vice versa for direct investment-in reporting economy. For recording of direct investment in the international investment position, the same entries are made. See the table presenting the standard components of the international investment position at the end of Chapter 23. However, as noted in Chapter 23, the related direct investment income on equity and debt is shown on a net basis for each direction. Valuation of Flows and Stocks 376. In concept, market price is the basis for valuation of flows and stocks, including those for direct investment, in the international accounts. (See Chapter 5, particularly paragraphs 97 through 103, for a full discussion covering transfer prices of affiliated enterprises and Chapter 5, paragraphs 107 through 108, together with Chapter 23, for discussions on valuation of stocks.) 377. Although this Manual, in concordance with the SNA, affirms the principle of using market price as the basis for valuation, it is recognized that, in practice, book values from the balance sheets of direct investment enterprises (or investors) often are used to determine the value of the stock of direct investment. This practice reflects the fact that enterprise balance sheet values—whether or not regularly revalued to current market value or recorded on the basis of historical cost or based on some interim but not current revaluation—represent the only source readily available in most countries. (In the first case, the balance sheet value is, in fact, the market value.) Compliers are encouraged to collect data from enterprises on a current market value basis to narrow the gap between principle and practice. To facilitate international comparisons, countries that publish data based on market values derived indirectly should, when it is feasible, also publish data collected on a balance sheet (book value) basis if the two types of data differ. (See paragraph 467.) Other Special Cases of Direct Investment Enterprises 378. In addition to the SPEs referred to in paragraphs 365 and 372, other types of enterprises—some of which are referred to in earlier chapters—warrant additional discussion. 379. Because of the rather complex operations of insurance enterprises, there may be some difficulties with the availability of data from direct investment branches and subsidiaries. Nonetheless, the transactions of insurance companies are treated in the same manner as transactions of industrial and commercial enterprises, except that the technical reserves (e.g., actuarial reserves against outstanding risks, prepayments of premiums, reserves for with-profits insurance, and reserves against unsettled claims) of insurance enterprises are excluded from the stock of direct investment. 380. Construction enterprises involved in work undertaken in other economies may be classified as either direct investment activity or as export of services. The criteria to determine the classification and the attribution of production are linked to the question of residency and are fully discussed in Chapter 4, paragraph 78. 381. The residency of offshore enterprises—including those engaged in the assembly of components manufactured elsewhere, those engaged in trade and financial operations, and those located in special zones—is attributed to the economies in which the enterprises are located. (See paragraph 79.) 382. Private, nonbusiness real estate investment (e.g., holiday and other residences owned by nonresidents for personal use or leased to others) is, in principle, included in direct investment. 383. Expenditures of direct investment enterprises established for exploration of minerals and other natural resources in an economy are treated as capital expenditures (fixed capital formation), according to the SNA. Inward investment flows from the direct investor abroad for such expenditures are, of course, recorded in the balance of payments. If the exploration proves unsuccessful and results in a shutdown of the enterprise, no further balance of payments entries are recorded. Rather, a negative stock adjustment is made in the direct investment position of the direct investor in the host economy, and an equal reduction is made in the liability position of that economy. (Both adjustments fall under the heading Other Adjustments in the international investment position. (See the table at the end of Chapter 23.) Selected Supplementary Information 384. There are aspects of direct investment—other than those directly related to balance of payments and international investment position data—that may, particularly in the host economy, be of interest from analytical and policy-making points of view. Among such aspects are those pertaining to the financial structure and operations of subsidiaries, associates, branches, and direct investors. Examples are the values of total assets of enterprises, complete balance sheets and income statements, the composition of sales and of external financing, employment, industry activity of direct investment enterprises and of direct investors, geographic allocation of activities (see Chapter 24), the value added or the gross product of subsidiaries in relation to the total GDP of the economies involved, and the country of the ultimate beneficial owner. Information of this type, along with balance of payments and international investment position data, may be collected in enterprise surveys. (See the Guide.) XIX. Portfolio Investment Coverage 385. Portfolio investment includes, in addition to equity securities and debt securities in the form of bonds and notes, money market instruments and financial derivatives such as options. Excluded are any of the aforementioned instruments included in the categories of direct investment and reserve assets. The expanded coverage in transactions reflects changes in international financial markets in recent years and includes the introduction of many new financial instruments within the framework of continuous innovation. 386. Thus, both the coverage and classification of portfolio investment are significantly revised in this Manual. The formal distinction between long- and short-term investment—the former referring to original maturity of more than one year or no stated maturity and the latter referring to original maturity of one year or less or on demand—is not made for portfolio investment for reasons noted previously. (See paragraphs 336 through 339.) The fact that original maturity is now less important for many market participants in investment and lending activities resulted in the inclusion of additional instruments within portfolio investment. (In previous editions of the Manual, short-term instruments were excluded and treated as other capital.) The classification scheme reflects financial market developments and efforts to improve links with the SNA and other statistical systems of the IMF. Classification and Definitions 387. The categories of financial instruments classified and defined in the Manual are generally consistent with those in the SNA. The major components of portfolio investment, which are classified under assets and liabilities, are equity securities and debt securities. Both are usually traded (or tradable) in organized and other financial markets. Debt securities are subdivided into bonds and notes, money market instruments, and financial derivatives that include a variety of new financial instruments. 388. Equity securities covers all instruments and records acknowledging, after the claims of all creditors have been met, claims to the residual values of incorporated enterprises. Shares, stocks, participation, or similar documents (such as American Depositary Receipts) usually denote ownership of equity. Preferred stock or shares, which also provide for participation in the distribution of the residual value on dissolution of an incorporated enterprise, are included. (For preferred shares that do not provide for such participation, see paragraph 390.) Mutual funds and investment trusts also are included. 389. Debt securities cover (i) bonds, debentures, notes, etc.; (ii) money market or negotiable debt instruments; and (iii) financial derivatives or secondary instruments, such as options, that usually do not extend to actual delivery and are utilized for hedging of risks, investment, and trading purposes. 390. Bonds, debentures, notes, etc. usually give the holder the unconditional right to a fixed money income or contractually determined variable money income. (Payment of interest is not dependent upon the earnings of the debtor.) With the exception of perpetual bonds, bonds and debentures also provide the holder with the unconditional right to a fixed sum as a repayment of principal on a specified date or dates. Included are nonparticipating preferred stocks or shares, convertible bonds, and bonds with optional maturity dates, the latest of which is more than one year after issue. This category also includes negotiable certificates of deposit with maturities of more than one year; dual currency bonds; zero coupon and other deep discounted bonds; floating rate bonds; indexed bonds; and asset-backed securities, such as collateralized mortgage obligations and participation certificates. (Mortgages are not classified as bonds but are included under loans.) 391. Money market securities generally give the holder the unconditional right to receive a stated, fixed sum of money on a specified date. These instruments usually are traded, at a discount, in organized markets; the ______________________________________________________________________ 9The conversion (into equities) option may be considered a tradable derivative (i.e., an asset separate from the underlying security). See paragraph 392. Separation of the value of a transaction into the value of the bond and the value of the option may be effected by reference to transactions in similar bonds traded without options. discount is dependent upon the interest rate and the time remaining to maturity. Included are such instruments as treasury bills, commercial and financial paper, bankers’ acceptances, negotiable certificates of deposit (with original maturities of one year or less), and short-term notes issued under note issuance facilities (NIFs)—even though the facility (itself contingent) provided by banks typically is a longer-term arrangement. (Repurchase agreements, which are nonnegotiable and of different character, are classified under loans in other investment.) 392. Certain financial instruments give the holder the qualified right to receive an economic benefit in the form of cash, a primary financial instrument, etc. at some future date. These instruments are referred to as derivatives or secondary instruments because of the linkage to specific financial instruments or to indicators (foreign currencies, government bonds, share price indices, interest rates, etc.) or to particular commodities (gold, sugar, coffee, etc.) that may be purchased or sold at a future date. Derivatives also may be linked to a future exchange, according to a contractual arrangement, of one asset for another. The instrument, which is a contract, may be tradable and have a market value. In that case, the characteristics of the instrument as a contingent asset or liability (not to be recorded in the balance of payments or in SNA sectoral balance sheets) change and give rise to treatment of the instrument as an actual financial asset or liability in the financial account. Among derivative instruments are options on currencies, interest rates, commodities, indices, etc.; traded financial futures; warrants; and arrangements such as currency and interest rate swaps. 393. Transactions in derivatives are treated as separate (mainly financial) transactions rather than included as integral parts of underlying transactions to which the derivatives may be linked as hedges. There are several reasons for this treatment, which is consistent with that in the SNA. The counter party to a derivative transaction will be a different transactor than the transactor for the underlying transaction being hedged. Also, the two parties to the derivative transaction may have different motives—hedging, dealing in the instrument involved, or acquiring the derivative as an investment. Even if both parties are hedging, the hedging may be associated with different financial or other assets. If derivative transactions were included as integral parts of underlying transactions, such treatment would lead to asymmetries of measurement in the balance of payments accounts. For example, the counter party to a derivative contract that hedges an underlying position with a resident may also be a resident. In such an instance, the inclusion of the derivative as part of the underlying transaction would result in the incorrect inclusion of transactions in the balance of payments. 394. Equity and debt securities are further subdivided by institutional sector—of the resident creditor for assets and the resident debtor for liabilities. Supplementary subdivisions by nonresident sector also may be of analytical interest, as would subdivisions of securities into new issues, transactions in outstanding issues, redemptions of debt securities, and distinctions between components denominated in domestic and foreign currencies. Selected Recording Issues 395. The expanded coverage, which includes traditional and new money market and derivative instruments and innovative long-term securities, of portfolio investment raises issues concerning the recording of balance of payments entries associated with these instruments. Such issues are discussed, for selected instruments, in subsequent paragraphs. 396. Zero coupon (and other deep discounted) bonds are single payment, long-term securities that do not involve periodic interest payments (or pay little interest) during the life of the bond. Instead, such a bond is sold at a discount from par value and the full return is paid at maturity. Thus, the difference between the discounted issue price and the price at maturity is substantial. This difference is treated as interest income and is recorded as accruing (i.e., converted into a series of monthly quarterly or annual payments) over the life of the bond. The difference (interest income) is not recorded when due for payment. (The offset to the interest income is entered under debt securities in the financial account and has the effect of the interest being reinvested.) Thus, the cost of providing the capital is matched to the periods for which the capital is provided. If, prior to maturity, a zero coupon or deep discounted bond is traded in the secondary market, the transaction price may include a realized holding gain or loss in addition to accrued interest. That change is included in entries to the financial account for the purchase and sale of the bond at market prices. Prevailing interest rates reflecting the difference between the new owner’s cost and the value of the bond at maturity should be used for the subsequent recording of interest on the bond. (See paragraph 283.) 397. Index-linked securities are instruments for which either the coupon payments or the principal are linked to a specific price index, to the price of a commodity, to an exchange rate index, or the like. The objective, in addition to earning interest income, is to conserve purchasing power during a period of inflation. When coupon payments are index-linked, the payments are treated as interest income, as is the case with any financial asset that has a variable interest rate. When the value of the principal is indexed, the issue price of the security is recorded as the principal, and the change in value resulting from indexation—periodically and at maturity—is treated as interest income. The change in value related to indexation should be estimated and recorded as interest income over the life of the security, and the offset should be recorded under debt securities in the financial account. 398. Among money market and derivative instruments and arrangements, the treatment of short-term notes issued under NIFs, options, warrants, swaps, traded financial futures, and forward rate agreements are noted subsequently. 399. A note issued under an NIF (usually a medium-term arrangement of five to seven years) is a short-term instrument (e.g., three to six months) issued by a borrower in its own name under a contractual commitment with a bank or group of banks either to underwrite the notes and purchase any unsold notes at particular borrowing or roll-over dates or to provide stand-by credits. The facility is a form of revolving credit, and the paper issued often is referred to as a Euronote or promissory note. If the borrower is a bank, the paper is, in effect, a certificate of deposit. (At times, a facility is arranged to issue short-term notes without an underwriting commitment, but usually there is a separate stand-by credit commitment. The notes so issued are referred to as Eurocommercial paper.) 400. As for balance of payments recording, the creation of NIFs does not require entries in the financial account because the NIFs are contingent. When notes are issued and sold under an NIF, that transaction is recorded with the sale entered as a liability for the borrower and as an asset for the buyer (the bank or other investor). Repayments are entered accordingly. However, any fees associated with the creation and operation of NIFs or bank placements of notes with other investors are entered in financial services in the current account. As is recommended for other debt securities, the discounts or premiums on the notes purchased by banks or other investors (apart from the fees paid by the latter to banks) are treated as interest income, or negative interest income, respectively, at the times of purchase. 401. Options are contracts that give the purchaser of the option the right, but not the obligation, to buy (a call option) or to sell (a put option) a particular financial instrument or commodity at a predetermined price (strike price) within a specific time span or on a specified date. Some leading types of options are those on foreign currencies, interest rates, equities, commodities, specified indexes, etc. The buyer of the option pays a premium (the option price) to the seller (writer or issuer) for the latter's commitment to sell or purchase the specified amount of the underlying instrument or commodity or to provide, on demand of the buyer, appropriate remuneration. By convention—in this Manual and in the SNA—that commitment is treated as a liability of the seller and represents the current cost to the seller of buying out his contingent liability. 402. Conceptually, the payment of the premium referred to previously includes two elements: the purchase price of a financial asset and a service charge. In practice, it often is not possible to identify the service element separately. If the latter can be distinguished, it is entered under financial services. If not, it is recommended that the full premium be recorded in the balance of payments as the acquisition of a financial asset by the buyer and as an incurrence of a liability by the seller. Subsequent trading (sales) of options is recorded in the financial account, as is the exercise or purchase or sale of the underlying financial instrument. If an option actually proceeds to delivery, which is not the usual case, the acquisition or sale of the underlying asset (real or financial) is recorded at the prevailing market price in the appropriate balance of payments component. Offsetting that entry is the actual amount payable or receivable; the difference between that amount and the prevailing market price is reflected in an entry that extinguishes the option contract. If an option contract is closed out prior to delivery, the actual amount payable or receivable is offset by the entry extinguishing the option contract. When initial margin payments and subsequent increases or decreases are payable by the parties to options, the payments are recorded, both as assets and liabilities, under others investment—currency and deposits in the financial account. Payments into, and withdrawals from, these accounts sometimes may be reflected in transactions in the traded options to which the accounts relate and, if so, are recorded under option transactions in the financial account. 403. Warrants (a particular form of option) are tradable instruments giving the holder the right to buy from the issuer of the warrant (usually a corporation) a certain number of shares or bonds under specified conditions for a designated period of time. Warrants can be traded apart from the underlying securities to which the warrants are linked and thus have a market value. The treatment of warrants is the same as that for other options, and the issuer of the warrant is considered, by convention, to have incurred a liability, which is the counterpart of the asset held by the buyer and reflects the current cost of buying out the issuer’s contingent liability. 404. Another variety of tradable warrant (usually issued by investment intermediaries) is a currency warrant, the value of which is based on the amount of one currency required to purchase another currency at or before the expiration date of the warrant. Currency warrants and cross-currency warrants with payments denominated in third currencies are treated in a manner similar to the treatment of other warrants. 405. A swap is a contractual arrangement involving two parties who agree to exchange, over time and according to predetermined rules, streams of payment on the same amount of indebtedness. The two most prevalent varieties of swaps are interest rate swaps and currency swaps. An interest rate swap involves an exchange of interest payments of different character (e.g., fixed rate and floating rate, two different floating rates, fixed rate in one currency and floating rate in another, etc.). A currency swap involves an exchange of specified amounts denominated in two different currencies and subsequent repayments reflecting principal and/or interest. (Central bank currency swap arrangements usually undertaken for exchange rate policy purposes and involving the temporary exchange of deposits as of a particular date and the reversal of the transaction at a future date are referred to in paragraph 434.) 406. Balance of payments entries for streams of interest payments associated with swap transactions are recorded, on a net basis, in the current account, and streams of principal repayments are recorded in the financial account. Although neither party to a swap arrangement is considered to be the provider of a service to the other, any payment to a third party involved in arranging the swap is recorded under financial services. 407. A futures contract is an agreement between two parties to exchange a real asset for a financial asset or to exchange, on a specified date at a predetermined rate, two financial assets. Traded financial futures, including those for interest rates, currencies, commodities, equities, or other indices, are recorded in the financial account in a manner similar to the recording of options. Transactions associated with nontraded financial futures are likely to occur infrequently and are recorded under the other assets or other liabilities components of other investment. 408. A forward rate agreement (FRA) is an arrangement according to which two parties agree on an interest rate to be paid, on a specified settlement date, on a notional amount of principal that is never exchanged. At that time, the settlement payment (i.e., the difference between the rate agreed upon and the prevailing market rate at the time of settlement) is recorded as a transaction in the balance of payments. The buyer of the FRA receives payment from the seller if the prevailing rate exceeds the rate agreed upon; the seller receives payment from the buyer if the prevailing rate is lower than the rate agreed upon. These payments are recorded as interest income in the current account of the balance of payments. Because there is only a notional (not an actual) underlying asset, there are no entries in the financial account. Valuation 409. Transactions in items classified as portfolio investment are entered at market prices; any changes in market value while securities are still in the holder’s possession (valuation changes) are omitted. Transactions in securities generally take place under the conditions necessary to establish actual market prices (e.g., in an organized market), so the valuation of transactions is not likely to prove very troublesome in practice. However, the elimination of valuation changes from series derived from amounts outstanding may well be difficult to accomplish in practice. The difference between the market values of assets outstanding at the beginning and at the end of a period may include (i) transactions valued at market price during the period and (ii) valuation changes, including those in assets acquired or disposed of (or both), during the period. 410. Changes in holdings classified as portfolio investment and reported by transactors or their agents (banks, security dealers, brokers, etc.) may include amounts for service charges on the transactions. Adjustments for such charges are made in entries to portfolio investment and the charges are included in financial services. Coverage 411. Other investment is a residual category that includes all financial transactions not covered in direct investment, portfolio investment, or reserve assets (discussed in Chapter 21). Classification 412. As is the case with portfolio investment, assets and liabilities for other investment are classified primarily on an instrument basis. The sectors of domestic creditor or debtor—the secondary basis for the classification—are monetary authorities, general government, banks, and other sectors. (For the definitions of sectors, see Appendix 2.) In contrast to direct investment and portfolio investment, the maturity distinction (long-term and short-term) is a third-level basis of classification. 413. The instrument subclassification for other investment (as is that for portfolio investment) is closely linked to the SNA categories for financial assets. (See Chapter 3.) While the relative importance of types of investment differs considerably among economies, the types reflect most of the financial instruments and channels utilized for the acquisition of assets and incurrence of liabilities—other than for direct investment, portfolio investment, and reserve assets. The instrument classification comprises trade credits, loans (including the use of Fund credit and loans from the Fund), currency and deposits (both transferable and other), and other assets and liabilities (for example, miscellaneous accounts receivable and payable). Definitions and Recording 414. Trade credits consist of claims and liabilities arising from the direct extension of credit by suppliers and buyers for transactions in goods and services and advance payments for work in progress (or to be undertaken) that is associated with such transactions. (Loans to finance trade are not included as these are classified under loans. See paragraph 415.) In the absence of actual data, trade credits may be measured by the difference between entries for the underlying transactions in goods and services, which are recorded as of the dates when ownership changes, and the entries for payments related to these transactions. Although frequently short-term in nature, trade credits and advances are subdivided into short- and long-term categories. 415. Loans comprise those financial assets created through the direct lending of funds by a creditor (lender) to a debtor (borrower) through an arrangement in which the lender either receives no security evidencing the transaction or receives a non-negotiable document or instrument. Included are loans to finance trade, other loans and advances (including mortgages), use of Fund credit and loans from the Fund, etc. In addition, financial leases and repurchase agreements (see paragraphs 417 through 418) are covered under loans—even though, from a legal standpoint, these may not be considered loans. Loans are subdivided into long- and short-term categories, which reflect the retention of the maturity structure referred to previously. 416. Long-term loans and trade credits are recorded on a net basis. It is recommended, however, that the recording of gross flows in respect of drawings and repayments on these instruments be provided as supplementary information. Such information is useful for the analysis of debt transactions and for reconciling balance of payments data on debt with other sources of such information. 417. Financial leases are included under loans because such arrangements are taken as presumptive evidence that a change in the ownership of goods has occurred. (See paragraph 206.) The financial lease essentially is a method by which the lessee finances the purchase of goods. The financial lease entails a financial claim, which is the asset of the lessor and the liability of the lessee. At the time the imputed change in ownership occurs, the market value of the goods is recorded and counterpart entries, as assets or liabilities, are made in the financial account. In subsequent periods, the actual lease payment is divided into interest, which is recorded in the current account as income payable or receivable, and principal (debt) repayment, which is recorded in the financial account and reduces the value of the asset of the lessor and the liability of the lessee. 418. A repurchase agreement (repo) is an arrangement involving the sale of securities at a specified price with a commitment to repurchase the same or similar securities at a fixed price on a specified future date (usually very short-term, e.g., overnight or one day) or on a date subject to the discretion of the purchaser. The economic nature of a repo is similar to that of a collateralized loan in that the purchaser of the securities is providing funds backed by the securities to the seller for the period of the agreement and is receiving a return from the fixed price when the repurchase agreement is reversed. The securities often do not change hands, and the buyer does not have the right to sell them. So, even in a legal sense, it is questionable whether or not a change of ownership occurs. As a result, in this Manual (and in the SNA and IMF money and banking statistics), a repo is treated as a newly created financial asset that is a collateralized loan rather than an asset related to the underlying securities used as collateral. Reflecting that interpretation, repos are classified under loans—unless the repos involve bank liabilities and are classified under national measures of broad money, in which case the repos are classified under currency and deposits. In some instances, because of legal, institutional, and other considerations, national compilers may find it necessary to use an alternative treatment of repos; in such instances, this information should, if it is feasible to do so, be separately identified and reported to the IMF. 419. Use of Fund credit and loans from the Fund comprises a member country’s drawings on the Fund—other than those drawn against the country’s reserve tranche position. (See paragraph 441.) Use of Fund credit and loans includes purchases and borrowings under stand-by, extended, structural adjustment, enhanced structural adjustment, and Systemic Transformation Facility arrangements, together with Trust Fund loans. A reduction in the Fund’s holdings of a member’s currency in excess of the member’s quota in the Fund minus the member’s reserve tranche position reflects a repayment of the use of Fund credit. 420. Currency and deposits are summed as one component, although separate data may be compiled by countries desiring to do so for analytic and other purposes. Currency consists of notes and coin that are in circulation and commonly used to make payments. (Commemorative coins and uncirculated banknotes are excluded.) If both domestic currency (liability) held by nonresidents and foreign currency (asset) held by residents serve that purpose, it would be useful to identify each separately as supplementary information. 421. Deposits comprise both transferable and other deposits. Transferable deposits consist of deposits that are exchangeable on demand at par without restriction or penalty, freely transferable by check or giro order, and otherwise commonly used to make payments. Deposits may be denominated in domestic or foreign currencies. Other deposits include all claims (other than transferable deposits) reflecting evidence of deposit. Typical examples are non-transferable savings deposits; time deposits; and shares (evidence of deposit)—which are legally (or practically) redeemable on demand or on short notice—in savings and loan associations, credit unions, building societies, etc. 422. Other assets and liabilities cover any items other than loans and currency and deposits. For example, capital subscriptions to international nonmonetary organizations are classified under this category, as are miscellaneous accounts receivable and payable. 423. As noted in paragraph 372, transactions, other than those associated with permanent debt and equity investment, of banks and other financial intermediaries that are in a direct investment relationship are included in portfolio investment or other investment. Thus, loans and deposits of such institutions are included, as described in paragraphs 415 and 421, under those components. Concept and Coverage 424. Reserve assets, the fourth major functional category of the financial account, is an important component of balance of payments statistics and an essential element in the analysis of an economy’s external position. Reserve assets consist of those external assets that are readily available to and controlled by monetary authorities for direct financing of payments imbalances, for indirectly regulating the magnitude of such imbalances through intervention in exchange markets to affect the currency exchange rate, and/or for other purposes. (See paragraphs 425 and 432.) The category of reserve assets, as defined in this Manual, comprises monetary gold, SDRs, reserve position in the Fund, foreign exchange assets (consisting of currency and deposits and securities), and other claims. (See paragraph 443.) Securities that do not satisfy the requirements of reserve assets are included in direct investment and portfolio investment. 425. Supplementing reserve assets are other substitute external resources, credits, and/or a variety of conditional items—all of which incur liabilities. These are virtually second-line reserves that can be readily mobilized by monetary authorities. As a result, while the significance of reserve assets within the total international liquidity framework may have narrowed, such assets still play a key role. On the other hand, authorities may utilize other means to deal with imbalances. For example, authorities may make use of Fund credit and loans from the Fund, encourage other sectors of the economy to engage in foreign borrowing, and/or alter the exchange rate or allow it to float freely, etc. The use or acquisition of reserve assets, therefore, does not necessarily reflect the degree or size of the payments imbalance of concern to the authorities. The authorities also may hold reserves for other motives—such as to maintain confidence in the currency and the economy, to satisfy domestic legal requirements, or to serve as a basis for foreign borrowing. In any event, resources that may be available in terms of external liquidity reflect a broader range of items than the components of reserve assets listed in this Manual. Identification of Reserve Assets 426. The financial assets comprising reserves cannot unambiguously be identified in a meaningful way simply through the application of objective criteria. The readily observable characteristics of a claim—legal ownership, marketability, currency of denomination, original contractual maturity, etc.—are not sufficient to establish whether a claim is actually available to the monetary authorities to use for the indicated purposes. However, reserve assets always refer to assets that actually exist. Claims that could be created under agreements that are in force (e.g., foreign exchange that could be obtained under swap agreements and other lines of credit or through the use of Fund credit under stand-by arrangements) do not constitute existing claims. Conversely, assets that are pledged, committed, earmarked, set aside in sinking funds, sold forward, or otherwise encumbered by the holders are nonetheless existing assets and are not precluded on those grounds alone from being included in reserve assets. However, because such arrangements may affect the availability and usability of the assets involved, supplementary information concerning the arrangements would be useful. 427. Two issues must be considered in the identification of reserve assets. First, in addition to assets actually owned, which other assets are at the effective disposal of monetary authorities? Second, of the assets controlled by the monetary authorities, which are available for use—should the necessity arise? Decisions on these matters will depend, at least in part, on the exercise of judgment. Effective control 428. The aspect of control can be appraised only with reference to the institutional framework in individual economies. In the narrowest sense, monetary authorities control absolutely only those assets to which they legally hold title. In the broadest sense, almost any asset owned by a resident of the economy may ultimately be subject to the control of the authorities. Neither of these extreme views is useful for the balance of payments. Instead, the concept of reserve assets should encompass those assets over which authorities exercise direct and effective control. 429. The test of such control is to be applied quite strictly. In general, only foreign claims actually owned by monetary authorities would be included as reserves. For example, the acquisition of assets through any statutory power that is maintained solely on a stand-by basis would not be considered an effective exercise of control. Also, the potential for transferring assets to or from the authorities through a change in monetary policy—and thereby inducing banks to change their holdings of foreign assets—would be deemed too indirect. Nevertheless, ownership is not a necessary condition for control. For instance, if banks hold legal title to foreign assets but are permitted to deal in such assets only on the terms specified by monetary authorities or only with their express approval, such assets would be considered subject to the authorities’ direct and effective control. 430. Except in unusual circumstances, direct and effective control is not to be construed as extending beyond the assets owned by depository institutions. That is, while certain bank-owned claims on nonresidents could be classified as reserve assets, those same claims would cease to be reserve assets if the banks sold the claims to private residents other than depository institutions—whatever the institutional arrangements in the economy might be. Authorities should be able to provide data on assets that they control (but do not own) because that information would be prerequisite to effective control. Availability for use 431. Whether an asset controlled by monetary authorities is available for use is partly dependent on any conditionality that affects the asset—including, as one main aspect, the liquidity or marketability of the asset. Owned assets (such as monetary gold, SDRs, and reserve positions in the Fund) that are immediately available can be viewed as assets in the most unconditional form. Foreign exchange holdings and other claims, in many instances, are equally available. However, a ranking of all available assets according to conditionality is not a feasible undertaking. Furthermore, such a ranking—if made—would be based on two types of judgments: (i) the precise degree of conditionality required for assets to be considered unavailable for use (in accordance with the concept of reserve assets) and (ii) the point at which the borderline between reserve assets and other assets should be drawn. A more pragmatic approach is to consider, in each case, whether there is an expectation, backed by a reasonable degree of assurance, that the conditions could be satisfied if and when it became necessary to use the asset. Selected cases 432. Monetary authorities presumably hold or exercise control over foreign assets in order to have such assets available as reserve assets or for some other purpose. These objectives may not be mutually exclusive. For example, reserve assets in excess of immediate requirements can be invested in World Bank obligations and thus provide development aid. Assets held for both reasons are generally classified as reserve assets. In contrast, assets in the form of direct, long-term loans for development and other purposes are not classified as reserve assets. Net creditor positions in regional payments arrangements that involve reciprocal lines of credit and that require prompt settlement of outstanding drawings (e.g., monthly or quarterly) are construed as reserve assets. However, net asset balances in bilateral payments agreements have much in common with other types of tied loans that authorities make to stimulate exports, provide aid, or further other aspects of government policy. Such payments agreement balances are therefore conventionally excluded from reserve assets. Subscriptions to international nonmonetary organizations, assets redeemable only in inconvertible currencies, and assets with uses blocked or otherwise effectively restricted by issuers are examples of assets that are not considered reserve assets. 433. Most other foreign assets held by monetary authorities are likely to be appropriate for inclusion in reserve assets. Working balances of the government qualify fully as reserve assets because, by definition, such balances are available for immediate use. Committed assets cannot be excluded because, like all other reserve assets, committed assets exist to meet requirements. An asset is no less a reserve asset simply because the specific use to which the asset is to be put is a foreseeable one. A readily repayable loan to the Fund comprises a reserve asset. Bank transfers of foreign claims to authorities just prior to certain accounting dates can result in a portion of the assets held by the authorities being committed, in effect, to the reversal of the transfer soon after those dates—whether or not the commitment is a formal one. While such operations undoubtedly distort the statistics on reserve assets as of a specified date, the distortion should be interpreted as the result of a seasonal influence, and the omission of such holdings from reserve assets may be justified only as a seasonal adjustment. 434. Assets created under reciprocal facilities (swap arrangements) for the temporary exchange of deposits between the central banks of two economies warrant mention. Deposits (in foreign exchange) acquired by the central bank initiating the arrangement are treated as reserve assets because the purpose of the exchange is to provide the central bank with assets that can be used to meet the country’s balance of payments needs. Reciprocal deposits acquired by the partner central bank also are considered reserve assets. Arrangements (gold swaps) involving the temporary exchange of gold for foreign exchange deposits should be treated in a similar manner. When a central bank acquires foreign exchange from a domestic bank in exchange for a deposit (in national currency) at the central bank and there is a commitment to reverse the transaction at a subsequent date, the transaction is treated and recorded as an increase in reserve assets of the central bank and an increase in the central bank’s liabilities (in national currency) to the domestic bank. 435. Assets not actually owned by monetary authorities do not usually qualify as reserve assets under a strict application of the criteria discussed in paragraph 429. Nevertheless, the possibility that such assets may qualify cannot be entirely precluded. Qualification should be apparent to the balance of payments compiler; if monetary authorities are presumed to be exercising effective control over such assets, the assets must possess quite distinctive characteristics. An example would be assets that monetary authorities temporarily transfer to private deposit money banks; the transfers would be accompanied by some special inducements to hold the assets, such as agreements to repurchase the assets at prices that assure the banks of realizing profits. Exclusion of Valuation Changes and Other Adjustments 436. This fifth edition of the Manual, in contrast to the fourth, excludes all changes in reserve assets that are not attributable to transactions. Thus, value changes resulting from fluctuations in the prices of reserve assets, changes associated with the creation of reserve assets (the monetization or demonetization of gold and the allocation or cancellation of SDRs), and counterparts offsetting such changes are not recorded in balance of payments statements. Changes resulting from reclassification also are excluded. All these adjustments are reflected in the international investment position. (See Chapter 23.) Classification 437. Although individual elements of reserve assets are largely interchangeable from a functional standpoint, changes in components discussed subsequently may have somewhat differing implications for analyses of global liquidity and the balance of payments adjustment process. 438. Monetary gold is gold owned by the authorities (or by others who are subject to the effective control of the authorities) and held as a reserve asset. Other gold (nonmonetary gold, possibly including commercial stocks held for trading purposes by authorities who also own monetary gold) owned by any entity is treated in this Manual as any other commodity. Transactions in monetary gold occur only between monetary authorities and their counterparts in other economies or between monetary authorities and international monetary organizations. Like SDRs (see paragraph 440), monetary gold is a reserve asset for which there is no outstanding financial liability. 439. Authorities who add to their holdings of monetary gold by acquiring commodity gold (i.e., newly mined gold or existing gold offered on the private market) or release monetary gold from their holdings for nonmonetary purposes (i.e., for sale to private holders or users) have monetized or demonetized the gold, respectively. Any increase or decrease in monetary gold holdings resulting from monetization or demonetization is treated as a reclassification of gold; such an increase or decrease is not shown in the balance of payments but is reflected in the international investment position. If the gold being monetized or demonetized is acquired from or sold to a nonresident, that transaction should be recorded as an import or export under goods in the current account and, in the financial account, as a credit or debit under the financial item that was used or received to finance that import or export. 440. SDRs are international reserve assets created by the International Monetary Fund to supplement other reserve assets that are periodically allocated to IMF members in proportion to their respective quotas. SDRs are not considered liabilities of the Fund, and IMF members to whom SDRs are allocated do not incur actual (unconditional) liabilities to repay SDR allocations. The Fund determines the value of SDRs daily by summing, in U.S. dollars, the values—which are based on market exchange rates—of a weighted 10As defined in this Manual, monetary gold is generally construed to be at least 995/1000 pure. basket of currencies. The basket and weights are subject to revision from time to time. SDRs can be used to acquire other members’ currencies (foreign exchange), to settle financial obligations, and to extend loans. Changes in the SDR holdings of monetary authorities can arise through (i) transactions involving SDR payments to or receipts from the Fund, other participants in the SDR Department of the Fund, or other holders or (ii) allocation or cancellation. Transactions such as those enumerated under (i) are included in the balance of payments; allocations or cancellations are not entered in the balance of payments but are reflected in the international investment position. 441. An IMF member may have, in the Fund’s General Resources Account, a position that is recorded under the category for reserve assets. This position is referred to as the member’s reserve position in the Fund. The member’s reserve position is the sum of the reserve tranche purchases that a member may draw upon and any indebtedness of the Fund (under a loan agreement) that is readily repayable to the member. Reserve tranche purchases are purchases from the Fund of other currencies that do not cause Fund holdings of a member’s currency to exceed the member’s quota (minus holdings that reflect the member’s use of Fund credit). A purchase from the Fund is recorded as an increase in foreign exchange holdings and a decrease in the member’s reserve position in the Fund; a repurchase is recorded as a decrease and an increase, respectively. Purchases in the reserve tranche are not regarded as a use of Fund credit, are not subject to charges, and do not require repurchase. In addition to reserve tranche purchases, members may use Fund resources in connection with compensatory and contingency financing, buffer stock financing, the extended Fund facility, and the credit tranches (including policy on enlarged access) without having those purchases and holdings included in Fund holdings of member currencies for the purpose of defining the reserve tranche. A member’s drawing (other than against its reserve tranche position) constitutes the use of Fund credit. (See paragraph 415.) 442. Foreign exchange includes monetary authorities’ claims on nonresidents in the forms of ECUs,11 currency bank deposits, government securities, other bonds and notes, money market instruments, financial derivatives, equity securities, and nonmarketable claims arising from arrangements between central banks or governments. (Foreign exchange covers claims that are shown as the foreign exchange component of the series for international liquidity published by the Fund in International Financial Statistics.) The instrument subclassification of the foreign exchange component of reserve assets is necessary in the context of the Fund’s compilation of global aggregates of the main components of the world financial account and for analyses of the global discrepancy in those aggregates. (The Fund adheres to strict confidentiality requirements concerning instruments.) 443. Other claims is a residual category covering claims that are not included previously and that may constitute reserve assets in the form of currency, deposits, or securities. For instance, the foreign exchange component may not invariably cover working balances abroad of government nonmonetary agencies or assets that are held by banks and subject to the control of monetary authorities. Valuation 444. In principle, all transactions in reserve assets are recorded at market prices—that is, market exchange rates in effect at the times of transactions, market prices for claims such as securities, and SDR market rates as determined by the Fund. Monetary gold transactions are valued at the market prices underlying the transactions. For valuation of stocks of reserve assets in the international investment position, market prices in effect at the ends of appropriate periods are used. Interpretation of Changes in Reserve Assets 445. Changes in reserve assets (within the context of broader aspects of external liquidity; see paragraph 425) are an important analytic tool for assessing balance of payments adjustment requirements but should not be viewed in isolation. Difficulties may arise, in some instances, in correctly identifying certain items as reserve assets. Similar problems pertain to the identification of liabilities constituting foreign authorities’ reserves (LCFARs). Reflecting these considerations, this chapter and Chapter 22 (covering LCFARs and exceptional financing transactions) should be considered complementary rather than mutually exclusive. 11Countries participating in the European Monetary System were issued ECUs against deposits of gold and U.S. dollars with the European Monetary Cooperation Fund. Those reserves that were deposited are excluded from gold and foreign exchange holdings as published by the Fund, but the equivalent holdings of ECUs are included in foreign exchange. Coverage 446. Several varieties of important transactions are not separately identified in the components of the financial account. This supplementary information is necessary to meet various analytical requirements, including the derivation of certain overall measures of a balance of payments deficit or surplus. The specific items are liabilities constituting foreign authorities’ reserves (LCFARs) and exceptional financing transactions; the latter include several forms of debt reorganization related to balance of payments requirements. The fact that these financing items are not separately identified among the standard components does not diminish the importance of such items in the analysis of balance of payments developments. Rather, the absence of separate identification reflects the views of most national balance of payments compilers that inclusion of these items would unduly expand the list of standard components. (A presentation of these and other items appears, together with the list of standard components, at the end of Chapter 8.) Liabilities Constituting Foreign Authorities’ Reserves 447. In this fifth edition of the Manual, LCFARs are not separately identified as components of the financial account. In the fourth edition, LCFARs were identified as separate components of each type of financial liability, with the exception of direct investment, in the capital account (in this Manual, the financial account). Objective criteria to identify LCFARs and the relationships to reserve assets remain elusive. It often is difficult for a debtor economy to specifically link certain liabilities to those assets identified as reserve assets by a creditor economy. The potential utilization of reserve assets to serve varied purposes—as noted in Chapter 21—makes it that much more difficult to match a related liability to a particular function. As a result, it may not be feasible to determine the underlying reasons for changes in such liabilities in many instances. 448. Notwithstanding such difficulties, it is useful for a compiling (debtor) economy to attempt, when possible, to identify as LCFARs those liabilities that are treated as reserve assets by the creditor economy—even though the compiling economy may not regard part or all of such liabilities as a means of financing its payments imbalance. (The identification may facilitate cross-checks of bilateral and international comparisons of data on reserve assets.) In the table on Selected Supplementary Information at the end of Chapter 8, LCFARs are classified primarily by instrument—debt securities, deposits, and other liabilities—and, secondarily, by appropriate sector. 449. In certain analytic presentations (see Appendix 5), including those of the Fund, LCFARs are grouped together with reserve assets, use of Fund credit and loans from the Fund, and exceptional financing as below-the-line items; that is, as financing items above the line in the current account and the financial account. Interpretation of the behavior of LCFARs depends on the purpose of the analysis and the factors that brought about the changes recorded in the balance of payments. The figures—along with those for reserve assets—certainly are not, under all circumstances, a satisfactory measure of the means that may have been employed by monetary authorities to finance a payments imbalance or a satisfactory measure of the size of that imbalance. Also, interpretation of the figures may sometimes be uncertain. For example, in a reserve currency country, a shift—from a foreign central bank to foreign private deposit money banks—in holdings of claims on deposit money banks may or may not indicate strength in the reserve country’s payments position. Nevertheless, changes in the liabilities that are the counterparts of another economy’s reserve assets can be relevant in understanding the global process of reserve creation and neutralization. 450. Identification of certain assets as reserve assets is not always a clear-cut matter even for holders of the assets. (See Chapter 21.) The problem of identification ______________________________________________________________________ 12LCFARs are any liabilities that are considered, from the viewpoint of the creditor, to be reserve assets—even though the debtor (compiling economy) may not consider such liabilities to be offsets to its reserves or to be financing its payments imbalance. is likely to be even more complicated from the side of the debtor, who presumably has less access to the facts on which judgment is to be made. General considerations for identifying LCFARs are that a nonresident creditor will probably classify as reserve assets any liabilities of the compiling economy (i) that are repayable on demand or in the short run (i.e., marketable) or that the debtor is prepared to redeem on short notice; (ii) that are repayable in assets that the debtor would regard as reserve assets; and (iii) that are owed to a central bank or central government. Exceptional Financing and Balance of Payments Needs 451. The concept of exceptional financing and the related balance of payments accounting treatment have evolved since the fourth edition of the Manual was published and have assumed increased importance for IMF operations, statistics, and member countries in recent years. As an alternative to—or in conjunction with the use of reserve assets, Fund credit and loans from the Fund (both standard components), and LCFARs to deal with payments imbalances—exceptional financing consists of any other arrangements made by authorities (or by other sectors fostered by authorities) of an economy to meet balance of payments needs. 452. Use of IMF resources is subject to a conceptual requirement of need, which—according to the Articles of Agreement of the IMF—is linked to a member’s balance of payments, reserve position, or developments concerning reserves. Determination of need involves making a clear distinction between (i) above-the-line transactions deemed to be autonomous or undertaken for the sake of the transactions and thus contributing to or resulting in an overall payments deficit or surplus and (ii) below-the-line items considered to be accommodating or financing the deficit or surplus. While such a distinction between groups of transactions involves a degree of judgment, it nonetheless presents a measure of the deficit or surplus and indicates financing needs and/or policy adjustments required to correct the imbalance. (See Appendix 5.) 453. As is the case with reserve assets and LCFARs, the identification of exceptional financing transactions is linked to an analytic concept rather than being based on precise criteria. Among transactions identified as exceptional financing and linked to balance of payments and reserve considerations noted previously are those associated with (i) transfers—such as debt forgiveness, other intergovernmental grants, and grants received from Fund subsidy accounts; (ii) direct or other equity investment—such as debt or equity swaps involved with debt reduction; (iii) borrowing, including bond issues, by the government or central bank (for example, from foreign commercial banks); (iv) borrowing (including bond issues) implemented by other sectors of the economy and induced by authorities—usually with some form of exchange rate or interest subsidy; and (v) other transactions related to debt reorganization, such as rescheduling of existing debt and accumulation and repayments of arrears. Balance of Payments Accounting for Selected Exceptional Financing Transactions 454. In the balance of payments, treatment of debt reorganization involves entries in several accounts in the standard presentation and entries to indicate below-the-line exceptional financing (see paragraph 449) in an analytic presentation such as the aggregated one in the Fund’s Balance of Payments Statistics Yearbook. In the case of multi-year arrangements involving certain conditions affecting future periods, no entries are made in the accounts for the current period, although entries may be generated in future periods. The treatment of selected exceptional financing transactions denotes components of balance of payments accounts in which such transactions are entered. For analytical purposes, credit entries for appropriate exceptional financing transactions are construed as satisfying balance of payments needs or as below-the-line items, although associated debit entries may be made above the line. In addition to the transactions highlighted in paragraphs 455 through 458, repayments made in advance of the due dates by the authorities of an economy and considered to be made for balance of payments reasons should be treated as below-the-line items in analytical presentations. If an advance repayment is deemed to be made for other reasons (e.g., to improve a debtor economy’s standing in credit markets), the repayment is not classified as exceptional financing. 455. Debt forgiveness (i.e., the voluntary cancellation of all or part of a debt specified by a contractual arrangement between a creditor in one economy and a debtor in another economy that is experiencing balance of payments difficulties) is treated as a capital transfer from the creditor to the debtor. (See Chapter 17.) The transfer offsets the reduction of the liability of the debtor in the financial account. For the debtor economy, if the obligations are past due, the forgiveness involves arrears (see paragraph 458), and both entries (i.e., the receipt of the transfer and the reduction in arrears) are reflected under exceptional financing. If obligations are due in the current accounting period, only the entry denoting the transfer is shown under exceptional financing. Entries pertaining to the obligations are shown above the line. If the obligations are not yet due, there are no entries under exceptional financing. 456. Exceptional financing transactions related to direct investment (for example, debt or equity swaps) involve the exchange, usually at a discount, of bank claims on, or other debt instruments of, debtor economies for nonresident investors’ equity investments in those economies. Although variable in form, such arrangements usually result in the extinction of a fixed-payment liability (e.g., a debt security or loan) denominated in foreign currency and the creation of an equity liability (denominated in domestic currency) to a nonresident. There may be an exchange of a liability of an enterprise for equity in that enterprise, or the central bank may redeem outstanding debt by purchasing the debt, at a discount and in local currency, from a nonresident. The proceeds are then reinvested by the nonresident as equity in the enterprise. A debt or equity swap often reflects a difference between the full value of the debt instrument and the value of the equity obtained. That difference should be construed as a valuation adjustment in the international investment position rather than as a transaction (e.g., a capital transfer). 457. Rescheduling or refinancing of existing debt involves a change in an existing contract and replacement by a new contract to extend debt service payments due to lenders. This rescheduling constitutes a formal deferment with new maturities replacing those of the former contract. Interest and amortization obligations due to be paid in the current accounting period are considered paid on time and financed by the rescheduled loan. Thus, there is a reduction of those payments on the old loan and the creation of a new loan. As to balance of payments entries, there are debit entries to interest income in the current account and, according to the maturity of the original loan, to short- or long-term loans in other investment; there is an offsetting credit entry under long-term loans in that same category. If the rescheduling concerns obligations past due, arrears are involved. (See paragraph 458.) If the rescheduling involves obligations not yet due, entries are made only under short- or long-term loans, as appropriate, in other investment. If, under a rescheduling, the monetary authorities or general government sector assume the debt of banks or other sectors of the economy, a credit is entered in the financial account for the assuming sector and a debit is entered for the other sector. 458. Arrears of interest and amortization (amounts past due and unpaid) are recorded in accordance with the accrual principle as if paid, and a contra entry is made to reflect the new liability. For interest arrears accruing in the reporting period, a debit entry is recorded under income in the current account, and a corresponding credit entry is made (under other investment-other liabilities-short-term) in the financial account. For amortization arrears, a debit entry is made in the appropriate component of the financial account (for example, short- or long-term loans under other investment), and a credit contra entry is made under other investment-other liabilities-short-term. In analytical presentations, entries for arrears are made below the line (i.e., exceptional financing). When rescheduled interest or interest in arrears includes interest accrued in a previous recording period, the accrual principle for the recording of interest (see paragraph 121) requires a debit entry under income in that period and an offsetting credit entry (under the appropriate instrument) in the financial account. Subsequently, when the rescheduling is effected or the interest is in arrears, only the interest accrued in the current period is debited under income. Interest accrued in the previous period is debited to the appropriate instrument in the financial account (to offset the credit entry made in the previous period for the interest accrued). 459. A detailed summary of entries required in balance of payments accounts for various forms and aspects of exceptional financing transactions is presented in Appendix 4. Foreign Sources of Financing 460. Financial flows in the balance of payments are generally compiled on a domestic transactor basis and in concordance with related statistical systems (e.g., the SNA and flows of funds accounts). However, for certain analytical purposes—such as analyses of debtor economies’ sources of external borrowings by type of lender (official, bank, or other) and data comparisons for individual or groups of economies—identification of the nonresident party to a transaction is of significance. Because such uses are made of the data, it is recommended that statistics on foreign sources of financing by sector (i.e., monetary authorities, general government, banks, and other) be collected as supplementary information. Concept and Coverage 461. Together, the balance of payments transactions and international investment position covered in this Manual constitute the set of international accounts for an economy. The international investment position is the balance sheet of the stock of external financial assets and liabilities. The financial items that comprise the position consist of claims on nonresidents, liabilities to nonresidents, monetary gold, and SDRs. By convention, land and other immovable tangibles (except those owned by extraterritorial units; see paragraph 64) are treated as the property of economic entities of the economies in which the immovable tangibles are located. Therefore, a nonresident owner has a financial claim on the resident entity to which the ownership of such an asset is attributed rather than ownership of the actual nonfinancial asset. 462. In relation to the balance sheet (as delineated in the SNA) of an economy, the net international investment position (the stock of external financial assets minus the stock of external liabilities) combined with an economy’s stock of nonfinancial assets comprises the net worth of that economy. (See Chapter 3.) 463. The position at the end of a specific period reflects financial transactions, valuation changes, and other adjustments that occurred during the period and affected the level of assets and/or liabilities. Because stock levels often are utilized in the determination of investment income receipts and payments in balance of payments accounts, consistent classification throughout the income category of the current account, the financial account, and the position components is essential for reconciliation of stocks and flows and for meaningful analysis of yields and rates of return on external investments. (See paragraphs 475 through 477.) Classification 464. Classification of the international investment position (and of changes to the IIP) has two dimensions. (See the table at the end of this chapter.) In the rows of the table, the primary distinction is between assets and liabilities; the difference between the two represents the net position. Fully consistent with the balance of payments financial account, the first IIP subclassification is by function. Assets are divided into direct investment, portfolio investment, other investment, and reserve assets; liabilities are divided the same way (except for reserve assets). 465. Within the functional categories and in concordance with the income component of the current account and with the financial account of the balance of payments, direct investment is subdivided into equity capital, reinvested earnings, and other capital (intercompany debt). Claims on and liabilities to affiliated enterprises are shown separately. Portfolio investment is classified primarily by instrument—equity securities, debt securities, and financial derivatives—and secondarily by appropriate sectors. Other investment also is classified first by instrument and then by sector. Included are trade credits, loans, currency and deposits, and other assets and liabilities (such as capital subscriptions to international, nonmonetary organizations and miscellaneous accounts receivable and payable). Reserve assets are largely interchangeable from a functional standpoint. (See paragraphs 437 through 443.) 466. In the columns of the table at the end of this chapter, the factors accounting for the change in the position from the beginning to the end of a period are recorded. Listed first are the transactions associated with the various components (e.g., for direct investment, portfolio investment, etc.). The next two items—price changes and exchange rate changes—affect the valuation of components such as equity and debt securities, direct investment, and reserve assets. (Price and exchange rate changes assume greater importance with increased volatility of securities and exchange markets.) Before the position at the end of the period is recorded, a fourth item (other adjustments) must be included. Among such adjustments (equivalent to “other changes in volume of assets” in the SNA) are changes resulting from the allocation or cancellation of SDRs and changes resulting from gold monetization or demonetization, reclassifications (such as from portfolio investment to direct investment when the 10 percent Valuation of Components 467. In principle, all external financial assets and liabilities should be measured at current market prices as of the dates involved (i.e., beginnings or ends of reference periods). In practice, however, there may be some departures from the market price principle. For direct investment, book values from the balance sheets of direct investment enterprises (or of direct investors) generally are utilized to determine the value of the stock of direct investments. These balance sheet values, if recorded on the basis of current market value, would be in general accordance with the principle. If based on historical cost or on an interim but not current revaluation, such balance sheet values would not conform to the principle. Consequently, it would be desirable to have data collected and made available on a current-market-value basis to eliminate the gap between principle and practice. Those countries that compile data on the basis of market values derived indirectly should, if the two types of data differ, also compile data from that provided by enterprises on a balance sheet (book value) basis to facilitate international comparability. (See paragraph 377.) 468. Portfolio investment (equity securities, debt securities, and financial derivatives) is valued at current market prices at the appropriate reference dates. For equities that are listed in organized markets or are readily tradable, the value of outstanding stocks should be based on actual prices. The value of equities that are not quoted on stock exchanges or otherwise traded regularly should be estimated by using the prices of quoted shares that are comparable as to past, current, and prospective earnings and dividends. Alternatively, the net asset values of enterprises to which the equities relate could be used to estimate market values if the balance sheets of the enterprises are available on a current value basis. For debt securities that are listed in organized markets or are readily tradable, the outstanding value of stocks also should be determined on the basis of current market prices. For debt securities that are not readily tradable, the net present value of the expected stream of future payments or receipts associated with the securities could be used to estimate market value. (The net present value of any future receipt is equal to the value of that receipt when discounted at an appropriate interest rate.) 469. Principles for valuation of financial derivatives in the investment position are, in some respects, less definitive than those for other portfolio investment instruments. There are ongoing efforts by national and international accounting bodies to define standards for the measurement and recording of derivatives. Thus, in the Manual, a thorough treatment of derivative valuation is not attempted—particularly in view of continued innovations in this area. Rather, brief valuation guidelines that are consistent with those in the SNA and applicable to a number of existing derivatives are presented subsequently. 470. Traded options, warrants, and traded financial futures—all of which are treated as financial assets—are included in the position at market values on the appropriate accounting dates. For an option, the market value recorded is either the current value of the option—that is, the prevailing market rate—or the amount of the premium paid as a proxy. The counterpart liability is attributable, by convention, to the writer of the option and is valued at the current value of buying out the rights of the option holder. For a warrant, the counterpart liability of the issuer is the current value of buying out the exercise rights of the holder. A contract for a currency swap is recorded at market value; when payments are effected, the value of the asset and associated liability is amortized and subsequently reflected in the position on the appropriate accounting date. 471. Among other investment items, those that are not readily transferable among transactors (e.g., loans, deposits, miscellaneous accounts receivable and payable) are recorded in the investment position at nominal or face value (as is the case for currency). In general, that value is an acceptable proxy for market value. However, in recent years, loans to a number of heavily-indebted countries have been subject to significant discounts in secondary markets that emerged for the trading of such debt and brought the valuation of such debt into question. To conform with the market value principle, secondary market quotations should be the basis of valuation for transactions. As to recording the value of such debt in the position, the issue is not as clear. In principle, values recorded in the position should also be based on secondary market quotations. This presents no problem on the creditor side where ______________________________________________________________________ 13Market price may have to be approximated in some instances. For example, for direct investment branches and most subsidiaries, the market valuation of the parent enterprise’s equity is approximated as the net asset value of the resident enterprise; that is, the difference between the market value of assets and liabilities to third parties (including the market value of shares held by minority or portfolio investors) and nonequity liabilities to shareholders. claims are valued on the basis of the transaction (secondary market) price. However, on the debtor side, the amounts of principal that debtors are contractually obliged to repay creditors when loans mature are used as the basis of valuation, and this practice represents a departure from the market price principle. In this particular case, the departure is associated with contractual restrictions that are usually applicable to such loans and that prohibit the debtor from buying back the loans in secondary markets unless the restrictions are waived. (These limitations usually do not apply to bonds or other securities.) The use of market values on the creditor side and nominal values on the debtor side results in an asymmetry between debtor and creditor positions. To deal with that asymmetry, creditors should, if it is feasible, provide supplementary data on nominal values of discounted loans, and debtors should provide such data on market values. 472. The effects of selected, debt-related arrangements on the position include (i) exchange of debt for equity (debt/equity swap—see paragraph 456), in which case the difference between the nominal value of a loan and the (lesser) value of the equity obtained is treated as a valuation adjustment in the position; (ii) forgiveness of a loan, in which case a capital transfer offsets the reduction of the debtor’s liability in the balance of payments accounts and the transactions column of the position reflects the reduction in the debtor’s liability and creditor’s asset; (iii) rescheduling of a loan, in which case a new loan in effect replaces an old loan and the nominal value of the new loan is the basis of valuation; or (iv) unilateral cancellation of a loan by the creditor, which is recorded under other adjustments to the position. (See paragraph 466.) 473. Reserve assets are valued at current market prices at the appropriate reference dates. Monetary gold is valued at the prevailing market price; SDRs are valued at market rates calculated by the Fund; and reserve position in the Fund is valued on the basis of Fund calculation. Foreign exchange assets and other claims are valued at market prices prevailing at the reference dates. Relationship of the International Investment Position to External Debt 474. The net international investment position of an economy—that is, external financial assets minus external liabilities—often is used to analyze developments and trends in the performance of an economy vis-à-vis the rest of the world as of a specific date. The net position shows what the economy owns in relation to what it owes in much the same way that a corporate or national balance sheet does. Sometimes the labels net creditor or net debtor, according to algebraic sign, are used to describe the net position. Although useful for some purposes, such labels are not appropriate as a depiction of the net position. Rather, it is more relevant to view only the nonequity components of the position as debt (i.e., all recorded liabilities other than equity securities and direct investment equity capital, including reinvested earnings). Such a view is in general concordance with the core definition of gross external debt in the joint study External Debt: Definition, Statistical Coverage, and Methodology (1988) by the IMF, World Bank, OECD, and Bank for International Settlements.14 Investment Income, Rates of Return, and the International Investment Position 475. The links between investment income in the balance of payments accounts and the international investment position—particularly those between net investment income and the net position—are complex and underline the importance of consistent classification of transactions and stocks and of viewing the two as an integrated set of accounts. 476. A number of factors can contribute to apparent anomalies between net investment income, on the one hand, and the net investment position on the other. For instance, the former can be positive and the latter negative as a reflection of a higher net rate of return on external assets than on liabilities. That higher rate of return could reflect a greater risk factor abroad; more mature, outward direct investments with higher returns than less mature, inward investments; and/or the relative magnitude of components of the position. In regard to the latter, for example, there might be a large net positive position for the banking sector. As banks earn more on loans than they pay on deposits, their net income would probably more than offset a net negative position (e.g., in equity investment on which dividend payments generally are low in relation to the value of the equity involved). In association with the stock of direct investment, another factor that could result in an artificially high rate of return is the use of historical cost balance sheet values, which may be substantially less than current market values, as the denominator in calculating the rate of return. 14Gross external debt is the amount, at any specific time, of disbursed and outstanding contractual liabilities of residents of a country to repay principal, with or without interest, or to pay interest, with or without principal, to nonresidents. The utilization of stocks to derive income flow estimates, as opposed to direct reporting of the latter, may present measurement problems. In cases in which various interest rate and yield assumptions are applied to stocks to estimate income flows (e.g., for securities holdings), the quality of estimates of dividend and interest flows depends not only on the assumptions but on the stock estimates. Estimates based on outdated sources or surveys may well be unreliable. In contrast, income estimates based on direct reporting (e.g., in direct investment surveys) are subject to fewer errors. In any event, both stock and flow estimates can serve as cross-checks on each other. When problems arise, such checks can indicate that up-to-date surveys on stocks of the assets in question are necessary, that methods of collecting data on transactions should be improved, and/or that other avenues to improve estimates be explored. (See the Guide.) Finally, the interrelationship between the international investment position and cumulative balance of payments flows and the effects of these on the net lender or net borrower status of an economy have important analytical and policy implications for matters such as the formulation and implementation of adjustment programs, the relative costs and financing requirements of these programs, and the role of the IMF in these matters. (See Appendix 5.) ### International Investment Position: Standard Components \| Changes in Position Reflecting: \| Position at Beginning of Year \| Transactions \| Price Changes \| Exchange Rate Changes \| Other Adjustments \| Position at End of Year \| \|---------------------------------\|-------------------------------\|--------------\|---------------\|-----------------------\|-------------------\|------------------------\| #### A. Assets 1. Direct investment abroad\* 1.1 Equity capital and reinvested earnings 1.1.1 Claims on affiliated enterprises 1.1.2 Liabilities to affiliated enterprises 1.2 Other capital 1.2.1 Claims on affiliated enterprises 1.2.2 Liabilities to affiliated enterprises 2. Portfolio investment 2.1 Equity securities 2.1.1 Monetary authorities 2.1.2 General government 2.1.3 Banks 2.1.4 Other sectors 2.2 Debt securities 2.2.1 Bonds and notes 2.2.1.1 Monetary authorities 2.2.1.2 General government 2.2.1.3 Banks 2.2.1.4 Other sectors 2.2.2 Money market instruments 2.2.2.1 Monetary authorities 2.2.2.2 General government 2.2.2.3 Banks 2.2.2.4 Other sectors 2.2.3 Financial derivatives 2.2.3.1 Monetary authorities 2.2.3.2 General government 2.2.3.3 Banks 2.2.3.4 Other sectors 3. Other investment 3.1 Trade credits 3.1.1 General government 3.1.1.1 Long-term 3.1.1.2 Short-term 3.1.2 Other sectors 3.1.2.1 Long-term 3.1.2.2 Short-term ______________________________________________________________________ Because direct investment is classified primarily on a directional basis—abroad under the heading Assets* and in the reporting economy under the heading Liabilities—claim/liability breakdowns are shown for the components of each, although these sub-items do not strictly conform to the overall headings of Assets and Liabilities.* International Investment Position: Standard Components (continued) \| Changes in Position Reflecting: \| Position at Beginning of Year \| Transactions \| Price Changes \| Exchange Rate Changes \| Other Adjustments \| Position at End of Year \| \|---------------------------------\|-------------------------------\|--------------\|---------------\|-----------------------\|-------------------\|------------------------\| 3.2 Loans 3.2.1 Monetary authorities 3.2.1.1 Long-term 3.2.1.2 Short-term 3.2.2 General government 3.2.2.1 Long-term 3.2.2.2 Short-term 3.2.3 Banks 3.2.3.1 Long-term 3.2.3.2 Short-term 3.2.4 Other sectors 3.2.4.1 Long-term 3.2.4.2 Short-term 3.3 Currency and deposits 3.3.1 Monetary authorities 3.3.2 General government 3.3.3 Banks 3.3.4 Other sectors 3.4 Other assets 3.4.1 Monetary authorities 3.4.1.1 Long-term 3.4.1.2 Short-term 3.4.2 General government 3.4.2.1 Long-term 3.4.2.2 Short-term 3.4.3 Banks 3.4.3.1 Long-term 3.4.3.2 Short-term 3.4.4 Other sectors 3.4.4.1 Long-term 3.4.4.2 Short-term 4. Reserve assets 4.1 Monetary gold 4.2 Special drawing rights 4.3 Reserve position in the Fund 4.4 Foreign exchange 4.4.1 Currency and deposits 4.4.1.1 With monetary authorities 4.4.1.2 With banks 4.4.2 Securities 4.4.2.1 Equities 4.4.2.2 Bonds and notes 4.4.2.3 Money market instruments and financial derivatives 4.5 Other claims B. Liabilities 1. Direct investment in reporting economy\* 1.1 Equity capital and reinvested earnings 1.1.1 Claims on direct investors 1.1.2 Liabilities to direct investors 1.2 Other capital 1.2.1 Claims on direct investors 1.2.2 Liabilities to direct investors 2. Portfolio investment 2.1 Equity securities 2.1.1 Banks 2.1.2 Other sectors 2.2 Debt securities 2.2.1 Bonds and notes 2.2.1.1 Monetary authorities 2.2.1.2 General government 2.2.1.3 Banks 2.2.1.4 Other sectors 2.2.2 Money market instruments 2.2.2.1 Monetary authorities 2.2.2.2 General government 2.2.2.3 Banks 2.2.2.4 Other sectors 2.2.3 Financial derivatives 2.2.3.1 Monetary authorities 2.2.3.2 General government 2.2.3.3 Banks 2.2.3.4 Other sectors 3. Other investment 3.1 Trade credits 3.1.1 General government 3.1.1.1 Long-term 3.1.1.2 Short-term \Because direct investment is classified primarily on a directional basis—abroad under the heading Assets and in the reporting economy under the heading Liabilities—claim/liability breakdowns are shown for the components of each, although these sub-items do not strictly conform to the overall headings of Assets and Liabilities. ### International Investment Position: Standard Components (concluded) \| Changes in Position Reflecting: \| Position at Beginning of Year \| Transactions \| Price Changes \| Exchange Rate Changes \| Other Adjustments \| Position at End of Year \| \|---------------------------------\|-------------------------------\|--------------\|---------------\|-----------------------\|-------------------\|------------------------\| 3.1.2 Other sectors 3.1.2.1 Long-term 3.1.2.2 Short-term 3.2 Loans 3.2.1 Monetary authorities 3.2.1.1 Use of Fund credit and loans from the Fund 3.2.1.2 Other long-term 3.2.1.3 Short-term 3.2.2 General government 3.2.2.1 Long-term 3.2.2.2 Short-term 3.2.3 Banks 3.2.3.1 Long-term 3.2.3.2 Short-term 3.2.4 Other sectors 3.2.4.1 Long-term 3.2.4.2 Short-term 3.3 Currency and deposits 3.3.1 Monetary authorities 3.3.2 Banks 3.4 Other liabilities 3.4.1 Monetary authorities 3.4.1.1 Long-term 3.4.1.2 Short-term 3.4.2 General government 3.4.2.1 Long-term 3.4.2.2 Short-term 3.4.3 Banks 3.4.3.1 Long-term 3.4.3.2 Short-term 3.4.4 Other sectors 3.4.4.1 Long-term 3.4.4.2 Short-term BALANCE OF PAYMENTS REGIONAL ALLOCATION XXIV. Regional Statements 478. Part three of the Manual contains a discussion of conceptual and practical issues concerning regional allocation of transactions and stocks of external assets and liabilities. 479. Previous chapters have covered the compilation of global balance of payments and international investment position statements (i.e., statistics concerning the external transactions and the stock of external financial assets and liabilities of an economy in relation to the rest of the world). Similar statements can be compiled on a regional or bilateral basis to show—for a selected group of economies or a particular economy—the external transactions with, or position vis-à-vis, another selected group of economies or a particular economy. Regional compilations have assumed increased importance for statistical, analytical, and policy purposes since the fourth edition of the Manual was published. The increased importance of regional compilations reflects developments such as the emergence of large payments imbalances between and among certain individual economies and groups of economies and the transition towards economic and monetary integration, particularly in the European Community but also in other areas. Indeed, if and when such integration is fully achieved, regional balance of payments and position statements will become even more important while statistics for individual member countries of the integrated areas may become less important. In any event, harmonization of concepts, methodology, and data collection for global and regional balance of payments and position statements will mutually reinforce and improve the quality of international economic accounts. 480. Concepts and recommendations noted in earlier chapters for the compilation of global statements also apply to regional statements, but specific references to residents of the relevant foreign economy or group of economies should be substituted for general references to nonresidents or the rest of the world. This substitution should be made for the compiling economy’s payments statements of transactions in goods, services, and income; transactions involving financial claims and liabilities; transactions, which are classified as transfers, with a particular economy or group of economies; and for the position vis-à-vis those economies. Regional Allocation Principles 481. As for major components of the classifications noted in previous paragraphs, trade in goods generally shows—as a reflection of the change of ownership principle associated with coverage of this item—exports allocated to the region of residence of the new owner and imports allocated to the region of residence of the former owner. When there is no change in ownership (e.g., processing and financial leases), exports and imports of goods are treated as if such a change occurs. For trade in services, allocation is to the region where the provider or acquirer of the service is resident and, for income, to the region where the resident receives or pays the income. For transfers, allocation is to the region of the donor or recipient, as appropriate. 482. In regard to financial flows, there are two principles that may serve as the basis for regional allocation: the debtor/creditor principle and the transactor principle. Under the debtor/creditor principle, changes in financial claims of the compiling economy are allocated to the country of residence of the nonresident debtor, and changes in liabilities are allocated to the country of residence of the nonresident creditor. Under the transactor principle, changes in the claims and liabilities are allocated to the country of residence of the nonresident party to the transaction (the transactor). 483. In many instances, regional allocation of transactions on either basis will coincide (e.g., for bank deposit claims and liabilities, trade credits, and most direct investment transactions). However, in others (i.e., tradable claims), quite different regional allocations may arise, according to which one of the two principles is used. Examples are (portfolio) securities transactions and direct investment acquisitions involving third parties. 484. As concerns the international investment position, data compiled on a regional basis for stocks of financial assets and liabilities are geographically allocated on the 15 See the Guide for a full discussion of the allocation aspects of trade in goods—in particular those aspects related to country of shipment versus country of origin for imports and country shipped to versus country of ultimate destination for exports. basis of the debtor/creditor principle. Financial claims of the compiling economy are allocated to the country of residence of the nonresident debtor, and liabilities are allocated to the country of residence of the nonresident creditor. Problems and Limitations Securities transactions 485. The regional allocation of securities transactions illustrates the dissimilar results produced by, and the limitations of, the debtor/creditor and the transactor principles. Broad secondary markets and the participation of a variety of financial intermediaries characterize international securities transactions. In broad secondary markets, when the debtor/creditor principle is applied to cross-border transactions in domestic securities (those issued by the compiling economy), the resident issuer (debtor) may not be aware of the results of secondary market trading. That is, the issuer may not know the identity or residence of the nonresident buyer (creditor). If financial intermediaries are not acting for their own accounts (if that can be determined), issuers would not usually be aware of the identities or residence of creditors who purchase securities through intermediaries—particularly in an international financial center to which many transactions are directed. Thus, although the debtor/creditor principle is effective on one side the (creditor knows the residency of the debtor), it is not effective on the other; the debtor does not necessarily know, unless such information can be obtained from the intermediary or the creditor, the residency of the creditor. As a result, one could characterize such a situation as the operation of a debtor/transactor principle.16 486. However, for transactions in foreign securities, the debtor/creditor principle is effective on both sides because the buyer or seller knows the identity and residence of the issuer (debtor) and can allocate the transaction to the economy of the debtor.17 487. Under the transactor principle, as applied to transactions in domestic securities, the sale of a security issued by country A to an intermediary acting for its own account in country B would be allocated by country A to country B because country B is the nonresident counter party (transactor) to the transaction. If the intermediary in country B were acting on behalf of a resident in country C (if that can be determined), country A would allocate the transaction to country C. No transaction would be recorded between countries A and B. Similarly, a sale of a foreign security (issued by country B) by country A to a country C intermediary acting on behalf of a resident in country D (if that can be determined) would be allocated by country A to country D. No transactions would be recorded by country A with country B or with country C. If the intermediary in country C were acting for its own account, country A would allocate the transaction to country C. No transactions would be recorded, on the basis of the transactor principle, by country A with country B. 488. In practice, whether a foreign intermediary is acting for its own account or on behalf of a resident of another country is seldom known, and information is difficult to obtain. Also, there may be differing interpretations as to whether or not the intermediary actually assumes ownership of the securities before engaging in subsequent transactions. As a result, in practice, allocation of securities transactions on the basis of the transactor principle often is attributed, by the compiling economy, to the financial intermediary’s country of residence rather than to the economy of residence of the party on whose behalf the intermediary is acting. Monetary gold and SDRs 489. Transactions in, or holdings of, monetary gold and SDRs cannot be allocated to any particular region on the basis of the debtor/creditor principle because the two are financial assets for which there are no outstanding liabilities. Thus, such transactions can only be attributed to an unallocated or residual, regional category. On the basis of the transactor principle, purchases or sales of monetary gold are recorded as increases or decreases in reserve assets for the compiling economy and vice versa for the counterpart economy. As for SDRs, which are not considered liabilities of the Fund, transactions are recorded in a manner similar to those recorded for monetary gold. Direct investment transactions involving third parties 490. For direct investment, there also may be difficulties concerning the regional allocation of transactions. For instance, a direct investor in country A acquires, from a resident of country C, a direct investment enterprise (or shares in that enterprise) located in country B. Under the debtor/creditor principle, from the standpoint of country A, such a transaction should be recorded between country A and country B because the direct investment position of country A in country B is affected. Under the transactor principle, the transaction should be recorded between country A and country C, which is the residence of the other party to the transaction. A reconciliation item then would be required to bridge the difference between the balance of payments entries and the position because the latter is compiled on the basis of the debtor/creditor principle. (See paragraph 484.) Multilateral settlements 491. Regional allocation may not necessarily result in a balanced statement for a region. For instance, a resident in the compiling economy may make payment to, or accept payment from, a nonresident (resident of country A) in the form of a claim on another nonresident (resident of country B). Such a situation may arise when claims on a reserve currency country are used by other economies as media for making settlements. The inconsistencies resulting from the allocation of transactions in real resources to the region of the nonresident owner/transactor and changes in financial items to the region of the nonresident creditor or debtor, however, are explicitly recognized by presenting a regional statement compiled in that way. Thus, an item for multilateral settlements restores an accounting balance by serving as an offset to the inconsistencies in the regional statement. That item may be seen to represent, in concept, the settlement of an imbalance in the compiling economy’s transactions with one region by a transfer to or from that region of claims on, or liabilities to, some other region or regions. 492. The data on multilateral settlements, however, are seldom available. In practice, therefore, the item is usually derived as a residual; however, it can be calculated only in combination with the item for net errors and omissions, which is also a residual or balancing item. Inconsistencies or errors of this or any other kind in classifying entries regionally should not have any effect on a global statement, which represents the sum total of all regional statements, because multilateral settlements appearing in individual regional statements cancel each other when all regions are combined. Analytical Implications 493. As noted in paragraph 484, data reflected in the international investment position are geographically allocated on the basis of the debtor/creditor principle. Therefore, adherence to that principle—although it is often difficult to implement—for the allocation of transactions results in a complete and conceptually consistent set of flows and stocks data at a country or regional level. Use of the transactor principle for flows requires a reconciliation to be effected between stocks and flows data. 494. From an analytical perspective, both the debtor/creditor principle and the transactor principle are of interest. The debtor/creditor basis facilitates analyses concerned with such issues as whose securities are being purchased and sold; the relative importance of securities transactions attributable to individual countries (and entities within them) and to regional groups; types of offerings, etc. The transactor basis allows for analysis of where residents engage in securities transactions with nonresidents, changes in the relative importance and growth of international financial centers, etc. In practice, both principles have limitations for assessment of regional and bilateral portfolio transactions. 495. If it is feasible for countries to exchange position data on stocks of appropriate assets and liabilities, the data exchange is helpful for developing more consistent and useful regional allocations of such stocks. Such data provide better information about the identities of nonresident creditors holding the liabilities of the compiling economies. Selection of Regions 496. Regional statements generally refer to classification of entries by a compiling economy according to the residence of a foreign economic entity, which is either the owner/transactor or the creditor/debtor. The rules on residence presented in this Manual (see Chapter 4) are applicable for determining the residence of the entity. A region would then comprise an economic territory or a group of economic territories, as the residence of any entity is based on its association with a specific economic territory. The methods of allocation discussed previously are concerned principally with a regional classification of that sort. A regional statement, however, is sometimes viewed in other ways. A statement may be prepared that shows, for example, those transactions that were originally denominated in a certain currency or undertaken with the residents of a particular currency area, rather than an economic territory. 497. A special case is presented by an international organization that is not included in the economic territory of the country of location or considered resident in that economy. Thus, a separate region for international organizations would be appropriate for allocation purposes. 498. The regional subclassification relevant for a particular economy or group of economies depends primarily on how the statement is to be utilized. This Manual does not contain a standard list of countries or regions for which the reporting economy or group should compile separate statements. Introduction 499. Balance of payments accounts and related data on the international investment position (stocks of external financial assets and liabilities) are closely linked to the SNA. This linkage is reinforced by the fact that, in most countries, data on the balance of payments and the international investment position (IIP) are compiled first and subsequently incorporated in relevant external account components of the SNA rest of the world account. There is virtually complete concordance between the SNA and the Manual with respect to the delineation of resident units (either producers or consumers); valuation of transactions and of the stock of external assets and liabilities; time of recording of transactions; conversion procedures; coverage of international transactions in goods and services, income flows, current transfers, capital transfers, and foreign financial assets and liabilities; and coverage of the IIP. Differences in classification or level of detail exist, however, between the rest of the world account and the balance of payments accounts. These reflect, inter alia, differences in analytical requirements and the necessity of using, in the SNA, a uniform classification scheme for all sectors of the economy. The bulk of the discussion in this appendix focuses on the relationship between aggregates and details contained in the rest of the world account and corresponding items in balance of payments accounts. Resident units 500. In the SNA and the Manual, resident producers and consumers are identified in the same fashion. Chapter 4 of the Manual, which contains a discussion on residence, is entirely consistent with Chapter XIV of the SNA. In both the SNA and in balance of payments accounts, resident units are identified on the basis of the center of economic interest concept and the definition of economic territory. (These definitions are contained in Chapter 4.) Valuation 501. In both the SNA and the balance of payments accounts, market price is used as the primary basis of valuation. For transactions accounts, market price refers to the actual price agreed upon by transactors (that is, the amount that a willing buyer pays to acquire something from a willing seller when the exchange is one that occurs between independent parties and one into which nothing but commercial considerations enter). It is noted in Chapter 5 of the Manual that market price proxies or equivalents should be used in situations in which market prices in the literal sense cannot be determined (for example, transfer pricing that significantly distorts measurement in resource transfers between affiliated enterprises, barter transactions, grants in kind, etc.). The use of end-of-period market (current) prices or proxies is advocated for both systems in balance sheet accounts affecting external claims and liabilities. Time of Recording 502. For both systems, the time of recording transactions is the same as that for accrual accounting (that is, when economic value is created, transformed, exchanged, transferred, or extinguished). Claims and liabilities are deemed to arise when there are changes in ownership. Application of the accrual basis is essentially identical in specific categories of transactions in both systems. For example, exports and imports of goods are, in principle, recorded on the basis of changes of ownership although, in both systems, there are specific exceptions with regard to goods under financial lease, goods shipped between affiliated enterprises, goods for processing, and goods underlying merchanting transactions. Services are recorded when actually rendered—times that often coincide with the times at which the services are produced. Interest is recorded on an accrual basis; dividends are recorded as of the dates payable. Reinvested earnings on direct investment are recorded in the periods in which the earnings are generated. Transfers (taxes, fines, etc.) imposed by one party on another are recorded as of the dates of occurrence of the transactions giving rise to the liabilities to pay; other transfers are recorded at the times that the resources to which the transfers are offsets change ownership. Transactions in financial claims and liabilities are recorded on the basis of changes of ownership (that is, when both the creditor and debtor enter the claim and liability, respectively, on their books). Chapter 6 contains a full discussion of the application of the accrual basis underlying the balance of payments accounts. Conversion Procedures 503. Consistent procedures are employed for converting transactions denominated in a variety of currencies or units of account into the unit of account (usually the national currency) used for compiling the balance of payments statement and the national accounts. Under a single exchange rate system, use of the market exchange rate prevailing at the time the transaction takes place is suggested in the SNA and the Manual. This rate is defined as the midpoint between buying and selling rates applicable to the transaction or, alternatively, as the average rate for the shortest period applicable. When parallel markets are in existence, the appropriate conversion rate is the rate (midpoint spot rate) applying to foreign currencies purchased or sold in parallel markets. 504. A system of multiple official exchange rates gives rise to implicit taxes and subsidies. In the SNA, it is recommended that transactions be converted at the actual (multiple) rates applicable. However, global adjustments reflecting the amount of taxes or subsidies should be shown in the rest of the world account, and counterpart entries should be made under capital transfers. Taxes and subsidies are calculated as the difference between (i) the values of transactions at the actual multiple rates applicable to specific transactions and (ii) the values at a unitary rate, which is calculated as a weighted average of all official rates used for external transactions. When multiple rates exist, the use of a unitary or principal rate—that is, the actual (multiple) exchange rate that applies to the largest part of external transactions—is suggested in the Manual. 505. For conversion of balance sheet items (stocks of external financial assets and liabilities), the use of actual market exchange rates applicable to specific assets and liabilities on the date to which the balance sheet relates is suggested in the Manual. Classification and Linkages 506. Although harmonization of the coverage of major aggregates has been attained between the two systems, differences in level of detail reflect differences in analytical requirements, the relative quantitative significance of some items in international transactions, and constraints imposed by the internal structures of the respective systems. Nonetheless, bridges can be constructed to derive relevant national accounting flows and stocks from balance of payments accounts and the IIP. 507. In terms of transactions, these accounts are distinguished in the SNA rest of the world account (external transactions account): V.I External account of goods and services, V.II External account of primary incomes and current transfers, V.III.1 Capital account, and V.III.2 Financial account. The latter two are components of V.III External accumulation accounts. In balance of payments accounts, the transactions reflected in accounts V.I and V.II are contained in the current account; those reflected in account V.III.1 are contained in the capital account of the capital and financial account. Flows reflected in account V.III.2 are shown in the financial account of the capital and financial account. Account V.III.3.1 Other changes in volume of assets and V.III.3.2 Revaluation account are separate subdivisions of the IIP statement. Thus, account V.III.3.1 corresponds to the column for other adjustments in the IIP, while account V.III.3.2 corresponds to the columns for valuation changes (that is, price changes and exchange rate changes) in the IIP. Account V.IV External assets and liabilities is equivalent to the IIP, which is that part of the national wealth statement representing the stock of external financial assets and liabilities. Located at the end of this appendix, tables 1 through 6 provide a reconciliation between categories shown in relevant external accounts of the SNA and corresponding items in balance of payments accounts and the IIP; tables 7 through 9 refer to the classification scheme that is reflected in the Manual and underlies balance of payments accounts and the IIP statement. Items marked with asterisks (\) denote additional details necessary to derive relevant national accounting flows from balance of payments and IIP data. 508. As indicated in Table 1, SNA coverage of exports and imports of goods and services is identical to balance of payments coverage of corresponding items—with the exception of the item “financial intermediation charge indirectly measured.” According to the Manual, this service is included under investment income as an indistinguishable part of interest income. In balance of payments accounts, exports and imports of services are disaggregated in considerable detail to provide data for analysis and policy decisions—particularly for negotiations in international trade in services within the framework of the General Agreement on Tariffs and Trade. Categories of services identified in the balance of payments are consistent with those of the Central Product Classification (CPC)—except for travel and government services n.i.e., which have no counterparts. 509. For account V.II, external account of primary incomes and current transfers, comparable categories in the balance of payments are 1. B. Income and 1. C. Current transfers. Account V.II coverage of compensation of employees and property income is virtually identical with that of 1. B. Income except that the latter includes “financial intermediation charge indirectly measured” indistinguishably under investment income-direct investment-interest. This treatment was adopted because of the practical difficulties of deriving—by sector, instrument, currency, and term structure—a multiplicity of reference rates for interest and appropriate asset or liability positions to estimate the imputed financial intermediary service charge. 510. The major elements of account V.III.1, the capital account of the external accumulation accounts, are identical with the capital account of the capital and financial account of the balance of payments. Although the balancing item net lending/net borrowing in account V.III.1 is not explicitly identified in the balance of payments, this item can be derived by adding the balance of the current account and the balance of the transactions reflected in the capital account. 511. Coverage of account V.III.2, the SNA financial account, is identical with that of the financial account of the capital and financial account in the balance of payments, although the level of detail is different. (See Table 4 at the end of this appendix.) In the SNA, financial assets are classified primarily by type of instrument. In the balance of payments, financial items are classified primarily by function—direct investment, portfolio investment, other investment (including loans), and reserve assets. In addition to categories identifying types of financial instruments (insurance technical reserves being an exception), the balance of payments contains an abbreviated sector breakdown (monetary authorities, general government, banks, and other sectors) to provide links with other bodies of economic and financial statistics such as money and banking, government finance, international banking, and external debt. Furthermore, to conform with the SNA, the Manual states that entries in the financial account of the balance of payments are recorded, in principle, on a net basis (increases less decreases in assets or liabilities). However, gross recording is included as supplementary information (for example, in the case of drawings and repayments on long-term loans). Reconciliation of Rest of the World Accounts with Balance of Payments Accounts Table 1 Account V.I External Account of Goods and Services \| SNA categories \| Correspond to Balance of Payments Standard Components (items), Additional Details, and Aggregates \| \|----------------\|--------------------------------------------------------------------------------------------------\| \| USES \| \| \| P.6 \| Exports of goods and services Item 1.A.a and 1.A.b.1 through 11, as noted subsequently \| \| P.61 \| Exports of goods Item 1.A.a goods \| \| P.62 \| Exports of services Sum of items 1.A.b.1 through 11 services plus items 1.B.2.2.2.1.1 and 1.B.2.3.1 financial intermediation charge indirectly measured \| \| RESOURCES \| \| \| P.7 \| Imports of goods and services Items 1.A.a and 1.A.b.1 through 11, as noted subsequently \| \| P.71 \| Imports of goods Item 1.A.a goods \| \| P.72 \| Imports of services Sum of items 1.a.b.1 through 11 services plus items 1.B.2.2.2.1.1 and 1.B.2.3.1 financial intermediation charge indirectly measured \| \| B.11 \| EXTERNAL BALANCE OF GOODS AND SERVICES Item 1.A \| Table 2 Account V.II External Account of Primary Incomes and Current Transfers \| SNA categories \| Correspond to Balance of Payments Standard Components (items), Additional Details, and Aggregates \| \|----------------\|--------------------------------------------------------------------------------------------------\| \| USES \| \| \| D.1 \| Compensation of employees Item 1.B.1 compensation of employees \| \| D.29 \| Other taxes on production Item 1.C.1.2 other taxes on production \| \| D.39 \| Other subsidies on production Item 1.C.1.3 other subsidies on production \| \| D.4 \| Property income Item 1.B.2 investment income minus items 1.B.2.2.2.1.1 and 1.B.2.3.1 financial intermediation charge indirectly measured \| \| D.5 \| Current taxes on income, wealth, etc. Item 1.C.1.1 current taxes on income, wealth, etc. \| \| D.61 \| Social contributions Item 1.C.1.4 social contributions \| Table 2 (concluded) Account V.II External Account of Primary Incomes and Current Transfers \| SNA categories \| Correspond to Balance of Payments Standard Components (items), Additional Details, and Aggregates \| \|----------------\|--------------------------------------------------------------------------------------------------\| \| USES \| \| \| D.62 Social benefits \| Item 1.C.2.2.5 social benefits \| \| D.7 Other current transfers \| Item 1.C.2.1 workers’ remittances plus item 1.C.1.6 other current transfers of general government plus item 1.C.2.2.6 other current transfers of other sectors \| \| D.8 Adjustment for the change in net equity of households in pension funds\* \| \| \| RESOURCES \| \| \| D.1 Compensation of employees \| Item 1.B.1 compensation of employees \| \| D.29 Other taxes on production \| Item 1.C.2.2.2 other taxes on production \| \| D.39 Other subsidies on production \| Item 1.C.2.2.3 other subsidies on production \| \| D.4 Property income \| Item 1.B.2 investment income minus items 1.B.2.2.1.1 and 1.B.2.3.1 financial intermediation charge indirectly measured \| \| D.5 Current taxes on income, wealth, etc. \| Item 1.C.2.2.1 current taxes on income, wealth etc. \| \| D.61 Social contributions \| Item 1.C.2.2.4 social contributions \| \| D.62 Social benefits \| Item 1.C.1.5 social benefits \| \| D.7 Other current transfers \| Item 1.C.2.1 workers’ remittances plus item 1.C.1.6 other current transfers of general government plus item 1.C.2.2.6 other current transfers of other sectors \| \| B.12 CURRENT EXTERNAL BALANCE \| \| \Item D.8 is not included in the current account in the balance of payments, nor are the receipts of pensions from, or net contributions to, (funded) pension funds. Table 3 Account V.III.1 Capital Account [of Account V.III External Accumulation Accounts] \| SNA categories \| Correspond to Balance of Payments Components (items), Additional Details, and Aggregates \| \|----------------\|--------------------------------------------------------------------------------------------------\| \| CHANGES IN ASSETS* \| \| \| K.2 Acquisitions less disposals of nonproduced, nonfinancial assets \| Item 2.A.2 acquisition/disposal of nonproduced, nonfinancial assets \| \| B.9 NET LENDING (+)/NET BORROWING (–) \| \| \| TRANSACTIONS IN ASSETS \| \| \| Item 1. current account balance plus item 2. A capital account balance \| \| ### Table 3 (concluded) Account V.III.1 Capital Account [of Account V.III External Accumulation Accounts] \| SNA categories \| Correspond to Balance of Payments Components (items), Additional Details, and Aggregates \| \|----------------\|------------------------------------------------------------------------------------------\| \| CHANGES IN LIABILITIES AND NET WORTH \| TRANSACTIONS IN LIABILITIES \| \| B.12 CURRENT EXTERNAL BALANCE \| Item 1. current account \| \| D.9 Capital transfers receivable \| Item 2.A.1 capital transfers \| \| D.9 Capital transfers payable \| Item 2.A.1 capital transfers \| \| B.10.1 CHANGES IN NET WORTH DUE TO SAVING AND NET CAPITAL TRANSFERS \| Item 1. current account balance plus item 2.A.1 net capital transfers \| ### Table 4 Account V.III.2 Financial Account [of Account V.III External Accumulation Accounts] \| SNA categories \| Correspond to Balance of Payments Standard Components (items), Additional Details, and Aggregates \| \|----------------\|------------------------------------------------------------------------------------------\| \| CHANGES IN ASSETS \| TRANSACTIONS IN ASSETS \| \| F.1 Monetary gold and SDRs \| Sum of items 2.B.4.1 monetary gold and 2.B.4.2 special drawing rights \| \| F.2 Currency and deposits \| Sum of items 2.B.3.1.3 currency and deposits (part of other investment) and 2.B.4.3.1 deposits (part of reserve position in the Fund), 2.B.4.4.1 currency and deposits (part of foreign exchange), and 2.B.4.5.1 currency and deposits (part of other reserve claims) \| \| F.3 Securities other than shares \| Sum of items 2.B.2.1.2 debt securities (part of portfolio investment), 2.B.4.4.2.2 bonds and notes (part of foreign exchange), 2.B.4.4.2.3 money market instruments and financial derivatives (part of foreign exchange), 2.B.4.5.2.2 debt securities (part of other reserve claims), 2.B.1.2.3.1.1 debt securities issued by direct investors (part of direct investment in the reporting economy), and 2.B.1.1.3.1.1 debt securities issued by affiliated enterprises (part of direct investment abroad) \| \| F.4 Loans \| Sum of items 2.B.3.1.2 loans (part of other investment) and 2.B.4.3.2 loans (part of reserve position in the Fund) \| Table 4 (continued) Account V.III.2 Financial Account [of Account V.III External Accumulation Accounts] \| SNA categories \| Correspond to Balance of Payments Standard Components (items), Additional Details, and Aggregates \| \|----------------\|--------------------------------------------------------------------------------------------------\| \| F.5 Shares and other equity \| Sum of items 2.B.1.1.1.1 equity capital-claims on affiliated enterprises (part of direct investment abroad), 2.B.1.1.2 reinvested earnings (part of direct investment abroad), 2.B.1.2.1.1 equity capital-claims on direct investors (part of direct investment in the reporting economy), 2.B.2.1.1 equity securities (part of portfolio investment), and 2.B.4.4.2.1 and 2.B.4.5.2.1 equities (part of foreign exchange and other reserve claims) \| \| F.6 Insurance technical reserves \| Sum of items 2.B.3.1.4.4.1.1 net equity of households in life insurance reserves and in pension funds and 2.B.3.1.4.1.1.1, 2.B.3.1.4.2.1.1, 2.B.3.1.4.3.1.1, and 2.B.3.1.4.4.1.2 prepayments of premiums and reserves against outstanding claims (all part of other investment) \| \| F.7 Other accounts receivable \| Sum of items 2.B.1.1.3.1.2 other claims on affiliated enterprises (part of direct investment abroad), 2.B.1.2.3.1.2 other claims on direct investors (part of direct investment in the reporting economy), 2.B.3.1.1 trade credits (part of other investment), and 2.B.3.1.4 other assets minus items 2.B.3.1.4.4.1.1, net equity of households in life insurance reserves and in pension funds, and 2.B.3.1.4.1.1.1, 2.B.3.1.4.2.1.1, 2.B.3.1.4.3.1.1, and 2.B.3.1.4.4.1.2 prepayments of premiums and reserves against outstanding claims (all part of other investment) \| CHANGES IN LIABILITIES AND NET WORTH TRANSACTIONS IN LIABILITIES \| F.2 Currency and deposits \| Item 2.B.3.2.3 currency and deposits \| \| F.3 Securities other than shares \| Item 2.B.1.1.3.2.1 debt securities issued by direct investors plus item 2.B.1.2.3.2.1 debt securities issued by affiliated enterprises plus item 2.B.2.2.2 debt securities (part of portfolio investment) \| \| F.4 Loans \| Item 2.B.3.2.2 loans \| Table 4 (concluded) Account V.III.2 Financial Account [of Account V.III External Accumulation Accounts] \| SNA categories \| Correspond to Balance of Payments Standard Components (items), Additional Details, and Aggregates \| \|----------------\|--------------------------------------------------------------------------------------------------\| \| F.5 Shares and other equity \| Sum of items 2.B.1.1.1.2 equity capital-liabilities to affiliated enterprises (part of direct investment abroad), item 2.B.1.2.1.2 equity capital-liabilities to direct investors (part of direct investment in the reporting economy), item 2.B.1.2.2 reinvested earnings (part of direct investment in the reporting economy), and item 2.B.2.2.1 equity securities (part of portfolio investment) \| \| F.6 Insurance technical reserves \| Sum of items 2.B.3.2.4.4.1.1 net equity of households in life insurance reserves and in pension funds and 2.B.3.2.4.4.1.2 prepayments of premiums and reserves against outstanding claims \| \| F.7 Other accounts payable \| Sum of items 2.B.1.1.3.2.2 other liabilities of direct investors (part of direct investment abroad), 2.B.1.2.3.2.2 other liabilities to direct investors (part of direct investment in the reporting economy), item 2.B.3.2.1 trade credits (part of other investment), and item 2.B.3.2.4 other liabilities minus items 2.B.3.2.4.4.1.1 net equity of households in life insurance reserves and in pension funds, and 2.B.3.2.4.4.1.2 prepayments of premiums and reserves against outstanding claims (all part of other investment) \| B.9 NET LENDING (+)/NET BORROWING (–) Table 5 Account V.III.3.1 Other Changes in Volume of Assets Account \| SNA Categories \| Correspond to IIP Standard Components and Additional Details \| \|----------------\|-------------------------------------------------------------\| \| CHANGES IN ASSETS \| CHANGES IN ASSETS \| \| K.7 Catastrophic losses \| Catastrophic losses (part of other adjustments) \| \| K.8 Uncompensated seizures \| Uncompensated seizures (part of other adjustments) \| \| K.10 Other volume changes in financial assets and liabilities n.e.c. \| Other volume changes (part of other adjustments) \| Table 5 (concluded) Account V.III.3.1 Other Changes in Volume of Assets Account \| SNA Categories \| Correspond to \| IIP Standard Components and Additional Details \| \|----------------\|---------------\|-----------------------------------------------\| \| K.12 Changes in classifications and structure \| Change in classifications and structure (part of other adjustments) \| CHANGES IN LIABILITIES AND NET WORTH \| SNA Categories \| Correspond to \| IIP Standard Components and Additional Details \| \|----------------\|---------------\|-----------------------------------------------\| \| K.7 Catastrophic losses \| Catastrophic losses (part of other adjustments) \| \| K.12 Changes in classifications and structure \| Changes in classifications and structure (part of other adjustments) \| B.10.2 CHANGES IN NET WORTH DUE TO OTHER CHANGES IN VOLUME OF ASSETS Account V.III.3.2 Revaluation Account \| SNA Categories \| Correspond to \| IIP Standard Components and Additional Details \| \|----------------\|---------------\|-----------------------------------------------\| \| CHANGES IN ASSETS \| \| \| \| K.11 Nominal holding gains/losses in financial assets \| Sum of entries in the columns for price and exchange rate changes \| \| K.11.1 Neutral holding gains/losses in financial assets \| Sum of entries in the columns for neutral holding gains/losses \| \| K.11.2 Real holding gains/losses in financial assets \| Sum of entries in the columns for real holding gains/losses \| \| CHANGES IN LIABILITIES AND NET WORTH \| \| \| \| K.11 Nominal holding gains/losses in liabilities \| Sum of entries in the columns for price and exchange rate changes \| \| K.11.1 Neutral holding gains/losses in liabilities \| Sum of entries in the columns for neutral holding gains/losses in liabilities \| \| K.11.2 Real holding gains/losses in liabilities \| Sum of entries in the columns for real holding gains/losses in liabilities \| \| B.10.3 CHANGES IN NET WORTH DUE TO NOMINAL HOLDING GAINS/LOSSES \| Price and exchange rate changes in assets less price and exchange rate changes in liabilities \| \| B.10.31 CHANGES IN NET WORTH DUE TO NEUTRAL HOLDING GAINS/LOSSES \| Neutral holding gains/losses in assets less neutral holding gains/losses in liabilities \| \| B.10.32 CHANGES IN NET WORTH DUE TO REAL HOLDING GAINS/LOSSES \| Real holding gains/losses in assets less real holding gains/losses in liabilities \| ### Table 6 Account V.IV External Assets and Liabilities Account V.IV.1 Opening Balance Sheet \| SNA Categories \| Correspond to IIP Standard Components and Additional Details \| \|----------------\|---------------------------------------------------------------\| \| AF Financial assets \| ASSETS Sum of items A.1.1.1 claims (equity capital and reinvested earnings) on affiliated enterprises (part of direct investment abroad), A.1.2.1 claims (other capital) on affiliated enterprises (part of direct investment abroad), B.1.1.1 claims (equity capital and reinvested earnings) on direct investors (part of direct investment in the reporting economy), B.1.2.1 claims (other capital) on direct investors (part of direct investment in the reporting economy), A.2 portfolio investment, A.3 other investment, and A.4 reserve assets \| \| AF Liabilities \| LIABILITIES Sum of items B.1.1.2 liabilities (equity capital and reinvested earnings) to direct investors (part of direct investment in the reporting economy), B.1.2.2 liabilities (other capital) to direct investors (part of direct investment in the reporting economy), A.1.1.2 liabilities (equity capital and reinvested earnings) to affiliated enterprises (part of direct investment abroad), A.1.2.2 liabilities (other capital) to affiliated enterprises (part of direct investment abroad), B.2 portfolio investment, and B.3 other investment \| \| B.90 NET WORTH \| ### Account V.IV.2 Changes Between Balance Sheets \| SNA categories \| Correspond to IIP Standard Components and Additional Details \| \|----------------\|---------------------------------------------------------------\| \| AF Total changes in financial assets \| Sum of transactions, price and exchange rate changes, and other adjustments in respect of the corresponding IIP items identified in account V.IV.1 of the SNA \| \| AF Total changes in liabilities \| Sum of transactions, price and exchange rate changes, and other adjustments in respect of corresponding IIP items identified in account V.IV.1 of the SNA \| ### Table 6 (concluded) Account V.IV.1 Opening Balance Sheet \| SNA Categories \| Correspond to \| IIP Standard Components and Additional Details \| \|----------------\|---------------\|-----------------------------------------------\| \| B.10 CHANGES IN NET WORTH, TOTAL \| ASSETS \| Total changes in item A (assets) minus total changes in item B (liabilities) \| Account V.IV.3 Closing Balance Sheet \| SNA Categories \| Correspond to \| IIP Standard Components and Additional Details \| \|----------------\|---------------\|-----------------------------------------------\| \| AF Financial assets \| \| Sum of end-of-period values of corresponding items contained in the IIP and identified in account V.IV.1 of the SNA \| \| AF Liabilities \| \| Sum of end-of-period values of corresponding items contained in the IIP and identified in account V.I.V.I of the SNA \| Table 7 Balance of Payments: Standard Components and Additional Detail \| Credit \| Debit \| \|--------\|-------\| 1. Current account A. Goods and services a. Goods 1. General merchandise 2. Goods for processing 3. Repairs on goods 4. Goods procured in ports by carriers 5. Nonmonetary gold 5.1 Held as a store of value 5.2 Other b. Services 1. Transportation 1.1 Sea transport 1.1.1 Passenger 1.1.2 Freight 1.1.3 Other 1.2 Air transport 1.2.1 Passenger 1.2.2 Freight 1.2.3 Other 1.3 Other transport 1.3.1 Passenger 1.3.2 Freight 1.3.3 Other 2. Travel 2.1 Business 2.2 Personal(^a) 3. Communications services 4. Construction services 5. Insurance services(^b) 6. Financial services 7. Computer and information services 8. Royalties and license fees 9. Other business services 9.1 Merchanting and other trade-related services 9.2 Operational leasing services 9.3 Miscellaneous business, professional, and technical services(^a) 10. Personal, cultural, and recreational services 10.1 Audiovisual and related services 10.2 Other cultural and recreational services 11. Government services n.i.e. (^a)See Selected Supplementary Information table on page 139 for components. (^b)Memorandum items: 5.1 Gross premiums; 5.2 Gross claims ### Table 7 (continued) Balance of Payments: Standard Components and Additional Detail \| Credit \| Debit \| \|--------\|-------\| #### B. Income 1. Compensation of employees 2. Investment income 2.1 Direct investment 2.1.1 Income on equity 2.1.1.1 Dividends and distributed branch profits(^c) 2.1.1.2 Reinvested earnings and undistributed branch profits(^c) 2.1.2 Income on debt (interest) 2.2 Portfolio investment 2.2.1 Income on equity (dividends) 2.2.2 Income on debt (interest) 2.2.2.1 Bonds and notes 2.2.2.1.1 Financial intermediation charge indirectly measured\(^) 2.2.2.1.2 Other interest 2.2.2.2 Money market instruments and financial derivatives 2.3 Other investment 2.3.1 Financial intermediation charge indirectly measured(^) 2.3.2 Other interest 2.3.3 Imputed income to households from net equity in life insurance reserves and in pension funds(^\) #### C. Current transfers 1. General government 1.1 Current taxes on income, wealth etc.\* XXX 1.2 Other taxes on production\* XXX 1.3 Other subsidies on production\* XXX 1.4 Social contributions\* XXX 1.5 Social benefits\* XXX 1.6 Other current transfers of general government\* 2. Other sectors 2.1 Workers’ remittances 2.2 Other transfers 2.2.1 Current taxes on income, wealth, etc.\* XXX 2.2.2 Other taxes on production\* XXX 2.2.3 Other subsidies on production\* XXX 2.2.4 Social contributions\* XXX 2.2.5 Social benefits\* XXX 2.2.6 Other current transfers of other sectors\* ______________________________________________________________________ (^c)If distributed branch profits are not identified, all branch profits are considered to be distributed. \Details necessary for reconciliation with classifications used in the SNA Rest of the World Account 2. Capital and Financial Account A. Capital account 1. Capital transfers 1.1 General government 1.1.1 Debt forgiveness 1.1.2 Other 1.2 Other 1.2.1 Migrants’ transfers 1.2.2 Debt forgiveness 1.2.3 Other 2. Acquisition/disposal of nonproduced, nonfinancial assets B. Financial account 1. Direct investment 1.1 Abroad 1.1.1 Equity capital 1.1.1.1 Claims on affiliated enterprises 1.1.1.2 Liabilities to affiliated enterprises 1.1.2 Reinvested earnings 1.1.3 Other capital 1.1.3.1 Claims on affiliated enterprises 1.1.3.1.1 Debt securities issued by affiliated enterprises\ 1.1.3.1.2 Other claims on affiliated enterprises\* 1.1.3.2 Liabilities to affiliated enterprises 1.1.3.2.1 Debt securities issued by direct investors\* 1.1.3.2.2 Other liabilities of direct investors\* 1.2 In reporting economy 1.2.1 Equity capital 1.2.1.1 Claims on direct investors 1.2.1.2 Liabilities to direct investors 1.2.2 Reinvested earnings 1.2.3 Other capital 1.2.3.1 Claims on direct investors 1.2.3.1.1 Debt securities issued by direct investors\* 1.2.3.1.2 Other claims on direct investors\* 1.2.3.2 Liabilities to direct investors 1.2.3.2.1 Debt securities issued by affiliated enterprises\* 1.2.3.2.2 Other liabilities to direct investors\* 2. Portfolio investment 2.1 Assets 2.1.1 Equity securities 2.1.1.1 Monetary authorities 2.1.1.2 General government 2.1.1.3 Banks 2.1.1.4 Other sectors \Details necessary for reconciliation with classifications used in the SNA Rest of the World Account Table 7 (continued) Balance of Payments: Standard Components and Additional Detail \| Credit \| Debit \| \|--------\|-------\| 2.1.2 Debt securities 2.1.2.1 Bonds and notes 2.1.2.1.1 Monetary authorities 2.1.2.1.2 General government 2.1.2.1.3 Banks 2.1.2.1.4 Other sectors 2.1.2.2 Money market instruments 2.1.2.2.1 Monetary authorities 2.1.2.2.2 General government 2.1.2.2.3 Banks 2.1.2.2.4 Other sectors 2.1.2.3 Financial derivatives 2.1.2.3.1 Monetary authorities 2.1.2.3.2 General government 2.1.2.3.3 Banks 2.1.2.3.4 Other sectors 2.2 Liabilities 2.2.1 Equity securities 2.2.1.1 Banks 2.2.1.2 Other sectors 2.2.2 Debt securities 2.2.2.1 Bonds and notes 2.2.2.1.1 Monetary authorities 2.2.2.1.2 General government 2.2.2.1.3 Banks 2.2.2.1.4 Other sectors 2.2.2.2 Money market instruments 2.2.2.2.1 Monetary authorities 2.2.2.2.2 General government 2.2.2.2.3 Banks 2.2.2.2.4 Other sectors 2.2.2.3 Financial derivatives 2.2.2.3.1 Banks 2.2.2.3.2 Other sectors 3. Other investment 3.1 Assets 3.1.1 Trade credits 3.1.1.1 General government 3.1.1.1.1 Long-term 3.1.1.1.2 Short-term 3.1.1.2 Other sectors 3.1.1.3.1 Long-term 3.1.1.3.2 Short-term 3.1.2 Loans 3.1.2.1 Monetary authorities 3.1.2.1.1 Long-term 3.1.2.1.2 Short-term Table 7 (continued) Balance of Payments: Standard Components and Additional Detail \| Credit \| Debit \| \|--------\|-------\| \| 3.1.2.2 General government \| \| \| 3.1.2.2.1 Long-term \| \| \| 3.1.2.2.2 Short-term \| \| \| 3.1.2.3 Banks \| \| \| 3.1.2.3.1 Long-term \| \| \| 3.1.2.3.2 Short-term \| \| \| 3.1.2.4 Other sectors \| \| \| 3.1.2.4.1 Long-term \| \| \| 3.1.2.4.2 Short-term \| \| \| 3.1.3 Currency and deposits \| \| \| 3.1.3.1 Monetary authorities \| \| \| 3.1.3.2 General government \| \| \| 3.1.3.3 Banks \| \| \| 3.1.3.4 Other sectors \| \| \| 3.1.4 Other assets \| \| \| 3.1.4.1 Monetary authorities \| \| \| 3.1.4.1.1 Long-term \| \| \| 3.1.4.1.1.1 Prepayments of premiums and reserves against outstanding claims\ \| \| \| 3.1.4.1.1.2 Other assets\* \| \| \| 3.1.4.1.2 Short-term \| \| \| 3.1.4.2 General government \| \| \| 3.1.4.2.1 Long-term \| \| \| 3.1.4.2.1.1 Prepayments of premiums and reserves against outstanding claims\* \| \| \| 3.1.4.2.1.2 Other assets\* \| \| \| 3.1.4.2.2 Short-term \| \| \| 3.1.4.3 Banks \| \| \| 3.1.4.3.1 Long-term \| \| \| 3.1.4.3.1.1 Prepayments of premiums and reserves against outstanding claims\* \| \| \| 3.1.4.3.1.2 Other assets\* \| \| \| 3.1.4.3.2 Short-term \| \| \| 3.1.4.4 Other sectors \| \| \| 3.1.4.4.1 Long-term \| \| \| 3.1.4.4.1.1 Net equity of households in life insurance reserves and in pension funds\* \| \| \| 3.1.4.4.1.2 Prepayments of premiums and reserves against outstanding claims\* \| \| \| 3.1.4.4.1.3 Other assets\* \| \| \| 3.1.4.4.2 Short-term \| \| \Details necessary for reconciliation with classifications used in the SNA Rest of the World Account Table 7 (continued) Balance of Payments: Standard Components and Additional Detail \| Credit \| Debit \| \|--------\|-------\| 3.2 Liabilities 3.2.1 Trade credits 3.2.1.1 General government 3.2.1.1.1 Long-term 3.2.1.1.2 Short-term 3.2.1.2 Other sectors 3.2.1.3.1 Long-term 3.2.1.3.2 Short-term 3.2.2 Loans 3.2.2.1 Monetary authorities 3.2.2.1.1 Use of Fund credit and loans from the Fund 3.2.2.1.2 Other long-term 3.2.2.1.3 Short-term 3.2.2.2 General government 3.2.2.2.1 Long-term 3.2.2.2.2 Short-term 3.2.2.3 Banks 3.2.2.3.1 Long-term 3.2.2.3.2 Short-term 3.2.2.4 Other sectors 3.2.2.4.1 Long-term 3.2.2.4.2 Short-term 3.2.3 Currency and deposits 3.2.3.1 Monetary authorities 3.2.3.2 Banks 3.2.4 Other liabilities 3.2.4.1 Monetary authorities 3.2.4.1.1 Long-term 3.2.4.1.2 Short-term 3.2.4.2 General government 3.2.4.2.1 Long-term 3.2.4.2.2 Short-term 3.2.4.3 Banks 3.2.4.3.1 Long-term 3.2.4.3.2 Short-term 3.2.4.4 Other sectors 3.2.4.4.1 Long-term 3.2.4.4.1.1 Net equity of households in life insurance reserves and in pension funds\ 3.2.4.4.1.2 Prepayments of premiums and reserves against outstanding claims\* 3.2.4.4.1.3 Other liabilities\* 3.2.4.4.2 Short-term \Details necessary for reconciliation with classifications used in the SNA Rest of the World Account Table 7 (concluded) Balance of Payments: Standard Components and Additional Detail \| Credit \| Debit \| \|--------\|-------\| 4. Reserve assets 4.1 Monetary gold 4.2 Special drawing rights 4.3 Reserve position in the Fund 4.3.1 Deposits\ 4.3.2 Loans\* 4.4 Foreign exchange 4.4.1 Currency and deposits 4.4.1.1 With monetary authorities 4.4.1.2 With banks 4.4.2 Securities 4.4.2.1 Equities 4.4.2.2 Bonds and notes 4.4.2.3 Money market instruments and financial derivatives 4.5 Other claims 4.5.1 Currency and deposits\* 4.5.2 Securities\* 4.5.2.1 Equities\* 4.5.2.2 Debt securities\* \Details necessary for reconciliation with classifications used in the SNA Rest of the World Account Table 8 Selected Supplementary Information 1. Liabilities constituting foreign authorities’ reserves 1.1 Bonds and other securities 1.1.1 Monetary authorities 1.1.2 General government 1.1.3 Banks 1.1.4 Other sectors 1.2 Deposits 1.2.1 Monetary authorities 1.2.2 Banks 1.3 Other liabilities 1.3.1 Monetary authorities 1.3.2 General government 1.3.3 Banks 1.3.4 Other sectors 2. Exceptional financing transactions 2.1 Transfers 2.1.1 Debt forgiveness 2.1.2 Other intergovernmental grants 2.1.3 Grants received from Fund subsidy accounts 2.2 Direct investment 2.2.1 Investment associated with debt reduction 2.2.2 Other 2.3 Portfolio investment: borrowing by authorities or by other sectors on behalf of authorities—liabilities\ 2.4 Other investment—liabilities\* 2.4.1 Drawings on new loans by authorities or by other sectors on behalf of authorities 2.4.2 Rescheduling of existing debt 2.4.3 Accumulation of arrears 2.4.3.1 Principal on short-term debt 2.4.3.2 Principal on long-term debt 2.4.3.3 Original interest 2.4.3.4 Penalty interest 2.4.4 Repayments of arrears 2.4.4.1 Principal 2.4.4.2 Interest 2.4.5 Rescheduling of arrears 2.4.5.1 Principal 2.4.5.2 Interest 2.4.6 Cancellation of arrears 2.4.6.1 Principal 2.4.6.2 Interest 3. Other transactions 3.1 Portfolio investment income 3.1.1 Monetary authorities \Specify sector involved and standard component in which the item is included. Table 8 (concluded) Selected Supplementary Information 3.1.2 General government 3.1.3 Banks 3.1.4 Other sectors 3.2 Other (than direct investment) income 3.2.1 Monetary authorities 3.2.2 General government 3.2.3 Banks 3.2.4 Other sectors 3.3 Other investment (liabilities) 3.3.1 Drawings on long-term trade credits 3.3.2 Repayments of long-term trade credits 3.3.3 Drawings on long-term loans 3.3.4 Repayments of long-term loans 4. Services sub-items 4.1 Travel (personal) 4.1.1 Health-related 4.1.2 Education-related 4.1.3 Other 4.2 Miscellaneous business, professional, and technical services 4.2.1 Legal, accounting, management consulting, and public relations 4.2.2 Advertising, market research, and public opinion polling 4.2.3 Research and development 4.2.4 Architectural, engineering, and other technical services 4.2.5 Agricultural, mining, and on-site processing 4.2.6 Other Table 9 International Investment Position: Standard Components and Additional Details \| Position at Beginning of Year \| Changes in Position Reflecting \| Exchange Rate Changes \| Other Adjustments \| Position at End of Year \| \|-------------------------------\|--------------------------------\|-----------------------\|-------------------\|------------------------\| \| \| Position Exchange at Price Rate Other Position \| \a \| \b \| \a \| \b \| A. Assets 1. Direct investment abroad\ 1.1 Equity capital and reinvested earnings 1.1.1 Claims on affiliated enterprises 1.1.2 Liabilities to affiliated enterprises 1.2 Other capital 1.2.1 Claims on affiliated enterprises 1.2.2 Liabilities to affiliated enterprises 2. Portfolio investment 2.1 Equity securities 2.1.1 Monetary authorities 2.1.2 General government 2.1.3 Banks 2.1.4 Other sectors 2.2 Debt securities 2.2.1 Bonds and notes 2.2.1.1 Monetary authorities 2.2.1.2 General government 2.2.1.3 Banks 2.2.1.4 Other sectors 2.2.2 Money market instruments 2.2.2.1 Monetary authorities 2.2.2.2 General government 2.2.2.3 Banks 2.2.2.4 Other sectors 2.2.3 Financial derivatives 2.2.3.1 Monetary authorities 2.2.3.2 General government 2.2.3.3 Banks 2.2.3.4 Other sectors 3. Other investment 3.1 Trade credits 3.1.1 General government 3.1.1.1 Long-term 3.1.1.2 Short-term 3.1.2 Other sectors 3.1.2.1 Long-term 3.1.2.2 Short-term \Because direct investment is classified primarily on a directional basis—abroad under the heading Assets and in the reporting economy under the heading Liabilities—disaggregations of claims/liabilities are shown for the components of each, although these sub-items do not strictly conform to the overall headings of Assets and Liabilities. \Details necessary for reconciliation with classifications used in the SNA Rest of the World Account: a = neutral holding gains/losses; b = real holding gains/losses Table 9 (continued) International Investment Position: Standard Components and Additional Details \| Position at Beginning of Year \| Changes in Position Reflecting \| \|------------------------------\|--------------------------------\| \| \| Position Exchange Rate Changes \| Other Adjustments \| Position at End of Year \| \| \| Transactions a \| b \| a \| b \| \| 3.2 Loans 3.2.1 Monetary authorities 3.2.1.1 Long-term 3.2.1.2 Short-term 3.2.2 General government 3.2.2.1 Long-term 3.2.2.2 Short-term 3.2.3 Banks 3.2.3.1 Long-term 3.2.3.2 Short-term 3.2.4 Other sectors 3.2.4.1 Long-term 3.2.4.2 Short-term 3.3 Currency and deposits 3.3.1 Monetary authorities 3.3.2 General government 3.3.3 Banks 3.3.4 Other sectors 3.4 Other assets 3.4.1 Monetary authorities 3.4.1.1 Long-term 3.4.1.2 Short-term 3.4.2 General government 3.4.2.1 Long-term 3.4.2.2 Short-term 3.4.3 Banks 3.4.3.1 Long-term 3.4.3.2 Short-term 3.4.4 Other sectors 3.4.4.1 Long-term 3.4.4.2 Short-term 4. Reserve assets 4.1 Monetary gold 4.2 Special drawing rights 4.3 Reserve position in the Fund 4.4 Foreign exchange 4.4.1 Currency and deposits 4.4.1.1 With monetary authorities 4.4.1.2 With banks 4.4.2 Securities 4.4.2.1 Equities Details necessary for reconciliation with classifications used in the SNA Rest of the World Account: a = neutral holding gains/losses; b = real holding gains/losses Table 9 (continued) International Investment Position: Standard Components and Additional Details \| Position at Beginning of Year \| Changes in Position Reflecting \| \|-------------------------------\|--------------------------------\| \| \| Transactions \| Price Changes \| Exchange Rate Changes \| Other Adjustments \| Position at End of Year \| \| \| a \| b \| a \| b \| \| 4.4.2.2 Bonds and notes 4.4.2.3 Money market instruments and financial derivatives 4.5 Other claims B. Liabilities 1. Direct investment in reporting economy\* 1.1 Equity capital and reinvested earnings 1.1.1 Claims on direct investors 1.1.2 Liabilities to direct investors 1.2 Other capital 1.2.1 Claims on direct investors 1.2.2 Liabilities to direct investors 2. Portfolio investment 2.1 Equity securities 2.1.1 Banks 2.1.2 Other sectors 2.2 Debt securities 2.2.1 Bonds and notes 2.2.1.1 Monetary authorities 2.2.1.2 General government 2.2.1.3 Banks 2.2.1.4 Other sectors 2.2.2 Money market instruments 2.2.2.1 Monetary authorities 2.2.2.2 General government 2.2.2.3 Banks 2.2.2.4 Other sectors 2.2.3 Financial derivatives 2.2.3.1 Monetary authorities 2.2.3.2 General government 2.2.3.3 Banks 2.2.3.4 Other sectors 3. Other investment 3.1 Trade credits 3.1.1 General government 3.1.1.1 Long-term 3.1.1.2 Short-term \Because direct investment is classified primarily on a directional basis—abroad under the heading Assets and in the reporting economy under the heading Liabilities—disaggregations of claims/liabilities are shown for the components of each, although these sub-items do not strictly conform to the overall headings of Assets and Liabilities. \Details necessary for reconciliation with classifications used in the SNA Rest of the World Account: a = neutral holding gains/losses; b = real holding gains/losses Table 9 (concluded) International Investment Position: Standard Components and Additional Details \| Position at Beginning of Year \| Changes in Position Reflecting \| \|-------------------------------\|--------------------------------\| \| \| Transactions \| Price Changes \| Exchange Rate Changes \| Other Adjustments \| Position at End of Year \| \| \| a \| b \| a \| b \| \| 3.1.2 Other sectors - 3.1.2.1 Long-term - 3.1.2.2 Short-term 3.2 Loans - 3.2.1 Monetary authorities - 3.2.1.1 Use of Fund credit and loans from the Fund - 3.2.1.2 Other long-term - 3.2.1.3 Short-term - 3.2.2 General government - 3.2.2.1 Long-term - 3.2.2.2 Short-term - 3.2.3 Banks - 3.2.3.1 Long-term - 3.2.3.2 Short-term - 3.2.4 Other sectors - 3.2.4.1 Long-term - 3.2.4.2 Short-term 3.3 Currency and deposits - 3.3.1 Monetary authorities - 3.3.2 Banks 3.4 Other liabilities - 3.4.1 Monetary authorities - 3.4.1.1 Long-term - 3.4.1.2 Short-term - 3.4.2 General government - 3.4.2.1 Long-term - 3.4.2.2 Short-term - 3.4.3 Banks - 3.4.3.1 Long-term - 3.4.3.2 Short-term - 3.4.4 Other sectors - 3.4.4.1 Long-term - 3.4.4.2 Short-term Details necessary for reconciliation with classifications used in the SNA Rest of the World Account: a = neutral holding gains/losses; b = real holding gains/losses II. A Note on Sectors 512. As presented in this Manual, sectorization of the balance of payments portfolio investment and other investment accounts and related components of the international investment position strengthens the links between the international accounts, the SNA, and IMF statistical systems such as money and banking, government finance, and international banking. In addition, the sectorization enhances the analytic usefulness of the accounts. 513. Identification of four sectors—monetary authorities, general government, banks, and other sectors—of the compiling economy provides a combined functional and institutional approach to sectorization. Although the sectors do not comprise institutional units as in the SNA, there is a significant degree of concordance with that system. Specific differences are noted subsequently. 514. The monetary authorities sector, which is based on a functional concept, includes the central bank (or currency board, monetary agency, etc.) and certain operations that are usually attributed to the central bank but are sometimes carried out by other government institutions or commercial banks. Such operations include the issuance of currency; maintenance and management of international reserves, including those resulting from transactions with the IMF; and the operation of exchange stabilization funds. Such transactions are, in effect, rerouted through the central bank. This coverage of monetary authorities is consistent with that described in the IMF draft of the Manual on Monetary and Financial Statistics. In the SNA, the central bank is a subsector of the financial corporate sector. 515. The general government sector, with the exception noted in the previous paragraph, is consistent with that sector in the SNA. General government consists of (i) government units that exist at each level—central, state, or local—of government within the national economy; (ii) social security funds operated at each level of government; (iii) nonprofit institutions that are majority financed and controlled by government units; and (iv) unincorporated enterprises that are owned and operated by government units and that produce goods and services, including collective services or public goods. (However, if it is appropriate under SNA guidelines to treat unincorporated enterprises as quasi-corporations, such enterprises are allocated to the financial or nonfinancial corporate sectors.) 516. The banking sector is identical with the “other (than the central bank) depository corporations” subsector of the financial corporate sector in the SNA and the “other (than the central bank) depository institutions” subsector of the financial institutions sector in IMF money and banking statistics. Included are all resident units engaging in financial intermediation as a principal activity and having liabilities in the form of deposits or financial instruments (such as short-term certificates of deposit) that are close substitutes for deposits. Deposits include those payable on demand and transferable by check or otherwise usable for making payments and those that, while not readily transferable, may be viewed as substitutes for transferable deposits. Thus, in addition to commercial banks, the banking sector encompasses institutions such as savings banks, savings and loan associations, credit unions or cooperatives, building societies, and post office savings banks or other government-controlled savings banks (if such banks are institutional units separate from government). 517. The other sectors category is comprised of nonfinancial corporations (private, public, and quasi-corporations), insurance companies, pension funds, other nondepository financial intermediaries, private nonprofit institutions, and households. Classification of International Transactions in Services Scope 518. The classification of international transactions in services, which is included among the standard components of the balance of payments, provides for the recording of all international trade in services. The classification is not as detailed as the Central Product Classification (CPC), mainly because the CPC applies to the structure of total production and encompasses domestic as well as international transactions. Meaningful analytical categories are formed by combining appropriate items that may be comparatively insignificant in international transactions, although such items may be important in domestic transactions. Structure and coding system of the classification 519. The structure of the classification is hierarchical, and the related coding system is decimal—as is the CPC. The categories were developed from the subclasses (five-digit codes), classes (four-digit codes), groups (three-digit codes), and divisions (two-digit codes) of the CPC, although the classification corresponds with the CPC mostly at the three-digit level. Other differences from the CPC are discussed subsequently in this appendix. 520. The classification is flexible in that each three-digit category (the most detailed in the classification) can be expanded by the addition of another decimal place. Conversely, if less detail is available, one- or two-digit categories are appropriate. Central Product Classification Objectives 521. The main objective of the CPC is to provide a framework for international comparison of various kinds of statistics on goods, services, and assets. The CPC is a useful guide for countries and international organizations that are developing new systems or revising existing schemes in order to make such systems or schemes compatible with the international standard. Scope 522. The CPC covers categories for all products that can be the objects of domestic or international transactions or entered into stocks. In addition to products that are the output of economic activity, nonproduced assets—including land and intangible assets such as patents, licenses, trademarks, and copyrights—that arise from legal contracts are also covered. Structure and coding system 523. The structure of the CPC is hierarchical, and the coding system is purely decimal. The classification consists of sections (identified by the first digit), divisions (identified by the first and second digits), groups (identified by the first three digits), classes (identified by the first four digits), and subclasses (identified by five digits). Codes for the sections range from zero through nine, and each section may be divided into nine divisions. At the third digit of the code, each division may, in turn, be divided into nine groups, which may be further divided into nine classes and into nine subclasses. Differences Between the CPC and the Balance of Payments Classification 524. Although the balance of payments classification closely follows the CPC, there are a number of differences in coverage and classification between the two systems: Two categories, travel and government services n.i.e., in the balance of payments classification of services do not have analogues in the CPC. Travel is covered as a balance of payments category because it subsumes a number of related services such as appropriate transportation, catering, entertainment, etc. Also, data for this item are collected from the consumers of these services, and most countries present data in this form in balance of payments statements. Government services n.i.e., includes the consumption of goods and services by embassies, consulates, military, and other establishments of foreign governments; of diplomatic and consular staff and their dependents in the countries where they are stationed; and of international and regional organizations. This category also includes public administration and other services provided by governments and extraterritorial organizations. Whereas the CPC treats all processing and repairs as service items, the balance of payments classification treats only the value of on-site processing and certain repairs (e.g., on computers, construction, and transport equipment maintenance performed in ports and airports) as services to be reported under the appropriate category. All other processing and the value of all other repairs are included in the balance of payments under goods on the practical grounds that most processing involves transformation of the goods and most repairs are made to investment goods. 525. The table on pages 148 and 149 shows the correspondence of balance of payments standard components to various CPC categories. Comparison of the Balance of Payments Classification of International Transactions in Services and the Central Product Classification (CPC)(^1) \| Section \| Division \| Group \| Class \| \|---------\|----------\|-------\|-------\| \| 1. Transportation \| 7 \| 721+part of 745 \| 7211 \| \| 1.1 Sea transport \| \| \| \| \| 1.1.1 Passenger \| 7211 \| 7211 \| \| 1.1.2 Freight \| 7212 \| 7213+7214+part of sea-going vessels in 745 \| \| 1.1.3 Other \| \| \| \| 1.2 Air transport \| 73 \| 731 \| 7311+7312 \| \| 1.2.1 Passenger \| 731 \| 7311+7312 \| \| 1.2.2 Freight \| 732 \| 7321+7322+7329 \| \| 1.2.3 Other \| 734+746 \| \| \| 1.3 Other transport(^3) \| \| \| \| \| 1.3.1 Passenger \| \| \| \| 1.3.2 Freight \| \| \| \| 1.3.3 Other \| \| \| \| 2. Travel(^4) \| \| \| \| \| 2.1 Business \| \| \| \| \| 2.2 Personal(^5) \| \| \| \| \| 2.2.1 Health-related\* \| \| \| \| \| 2.2.2 Education-related\* \| \| \| \| \| 2.2.3 Other \| \| \| \| \| 3. Communications services \| 756 \| 7511+7512 \| \| \| 4. Construction services \| 51 \| 511 through 518 \| \| \| 5. Insurance services(^7) \| \| 812+814 \| \| \| 6. Financial services \| part of 81 \| 811 \| 8111 through 8113 \| \| 7. Computer and information services \| 84 \| + 962 \| 9621 \| \| 8. Royalties and license fees \| \| 892 \| 8921+8922 \| \| 9. Other business services(^8) \| \| \| \| \| 9.1 Merchating and other trade-related services \| 62 \| 621 \| 6211 \| \| 9.2 Operational leasing services \| 83 \| 831 \| 8310 \| \| 9.3 Miscellaneous business, professional, and technical services\* \| \| \| \| 10. Personal, cultural, and recreational services \| Section \| Division \| Group \| Class \| \|---------\|----------\|-------\|-------\| \| 10.1 \| Audiovisual and related services \| 961 \| 9611 through 9613 \| \| 10.2 \| Other cultural and recreational services \| 963, 964, 970, 9619 \| 1Categories left blank have no direct correspondence with the Central Product Classification (CPC). 2Section = one-digit; division = two-digit; group = three-digit; class = four-digit 3Comprises CPC groups 711, 712, 713, 722, 733, 741 through 744, part of 745, 748, and 749 4Includes CPC classes 7471 and 7472 5Includes CPC divisions 92 and 93 6Excludes classes 7541 and 7542 7Memorandum items: 5.1 Gross premiums and 5.2 Gross claims 8Comprises CPC divisions 62, 83, and 85 through 88 \These subdivisions are not included among the standard components of the balance of payments but are included under selected supplementary information. \| Section \| Division \| Group \| Class \| \|---------\|----------\|-------\|-------\| \| 9.3.1 \| Research and Development \| 85 \| 851 through 853 \| \| 9.3.2 \| Legal, accounting, management consulting, and public relations \| 861+862 \| 8611 through 8613+8619 \| \| \| \| +865+part of 864 \| +8621 through 8622 \| \| 9.3.3 \| Advertising, market research, and public opinion polling \| 871+864 \| 8711 through 8712+8719 \| \| 9.3.4 \| Architectural, engineering, and other technical services \| 867 \| 8671 through 8676 \| \| 9.3.5 \| Agricultural, mining, and on-site processing \| 88° \| 881 through 883 \| \| 9.3.6 \| Other \| 82 \| 863+866+ \| \| \| \| 872 through 879 \| 8720+8730+8740+ \| \| \| \| 8750+8760+8790 \| °Part of 88 relates to maintenance of transportation equipment. IV. Accounting for Exceptional Financing Transactions 526. The accounting procedures for recording exceptional financing transactions in the balance of payments are relevant in the context of an analytic presentation such as the IMF’s aggregated presentation in the Balance of Payments Statistics Yearbook (BOPSY). In an analytic presentation, exceptional financing transactions that accommodate balance of payments needs are shown below the line in the appropriate accounts; credit entries and corresponding debit entries are shown above the line. However, there are some cases in which below-the-line debit entries are also recorded under exceptional financing (e.g., when payments arrears are extinguished by way of repayment, forgiveness, refinancing, rescheduling, or other arrangements and when the authorities—for balance of payments reasons—make loan repayments in advance of the due dates). 527. The table at the end of Appendix 4 summarizes (in both analytic and standard presentations) appropriate balance of payments entries for recording selected exceptional financing transactions for debtor countries. Entries for creditor countries should be fully symmetrical. However, for creditor countries, there should be no below-the-line entries under exceptional financing. The table, for illustrative purposes, shows separate credit and debit entries for each relevant item of the financial account, although net recording is generally recommended in the Manual for the financial account. In practice, credit and debit entries affecting the same item of the financial account will cancel each other and thus will not appear as separate entries in the balance of payments statement. Accumulation of Arrears 528. In the standard presentation of the balance of payments, arrears of interest and amortization—that is, amounts that are past due and unpaid—are recorded as if the amounts had been paid on schedule. An offsetting entry is made to reflect the associated new short-term liability. For arrears of interest accrued in the current recording period, a debit entry is recorded under investment income in the current account, and a corresponding credit entry is made under other investment-other liabilities (short-term) in the financial account for the accrual of arrears. For arrears of interest accrued in a previous recording period, the entries are somewhat different. The accrual principle for recording interest requires a debit entry under investment income in the period in which interest was accrued and an offsetting credit entry in the financial account under the appropriate instrument. Subsequently, when arrears are incurred on interest accrued in a previous period, a debit entry is recorded under the appropriate instrument in the financial account and a credit contra entry is recorded for the accrual of arrears under other investment-other liabilities (short-term). For amortization arrears, a debit entry is made in the appropriate component of the financial account (for example, short- or long-term loans under other investment) and a credit contra entry is made under other investment-other liabilities (short-term) for the accrual of arrears. 529. In the analytic presentation, only payments arrears resulting from balance of payments difficulties (that is, arrears resulting from the inability of the authorities to provide foreign exchange and not from the inability of the original debtor to provide national currency) are included under exceptional financing. Such payments arrears are recorded below the line as credit entries under exceptional financing, and offsetting debit entries are recorded above the line under the appropriate account. Repayment of Arrears 530. In the standard presentation of the balance of payments, the repayment of arrears—cash settlements (only) of both interest and amortization—is recorded as a debit entry under other investment-other liabilities (short-term), and a corresponding credit entry is recorded under reserve assets. 531. In the analytic presentation, repayments of arrears arising from balance of payments needs are recorded below the line as debit entries under exceptional financing (for the reduction of liabilities), and corresponding credit contra entries are recorded under reserve assets. Debt Forgiveness 532. In the standard presentation of the balance of payments, debt forgiveness—the voluntary cancellation of all or part of a debt within a contractual arrangement between a creditor in one economy and a debtor in another economy that is experiencing balance of payments difficulties—is recorded by the debtor as a credit entry under capital transfers. An offsetting debit entry is recorded for the reduction of the liability in the financial account. The appropriate debit entries depend upon the recording period in which the forgiven debt service obligations fall due. For forgiveness of obligations past due (that is, arrears of interest and amortization), a debit entry is recorded under other investment-other liabilities (short-term). For forgiveness of obligations due in the current recording period, a debit entry is recorded, under the appropriate debt instrument in the financial account, for the reduction of the principal and for any interest accrued in the previous period. For forgiveness of an obligation not yet due, a debit entry is recorded under the appropriate debt instrument in the financial account. No entry is made for interest not yet due. 533. In the analytic presentation, debt forgiveness for obligations falling due in the current recording period and in arrears is recorded below the line as a credit entry under exceptional financing. Corresponding debit entries are recorded above the line—except when arrears are forgiven, in which case the debit entry is recorded below the line. In contrast, for the forgiveness of debt not yet due, credit and debit entries are recorded above the line so that entries are the same in both the analytic and standard presentations. 534. For valuation of debts forgiven, it is recommended in the Manual that, in principle, market prices be used as the valuation basis for both flows and stocks. Because typical debt forgiveness agreements are usually restricted to debt that is owed to official creditors and not traded in organized markets, the value recorded for such nonmarketable debt instruments is nominal or face value, which—in this case—is an acceptable proxy for market value. Other Intergovernmental Grants 535. Grants (including grants from Fund subsidy accounts) provided for the purpose of satisfying balance of payments needs in the recipient country are part of exceptional financing. In the analytic presentation, the grants are recorded below the line as credit entries under exceptional financing, and a corresponding debit entry is recorded under reserve assets. Debt/Bond Swaps 536. In the standard balance of payments presentation, a debt/bond swap (the exchange, usually at a discount, of an existing debt instrument such as a loan for another form of debt instrument such as a bond) is recorded by the debtor as a credit entry under portfolio investment to show the creation of the new obligation. An offsetting debit entry is made under the appropriate debt instrument for the reduction in liabilities. Appropriate debit entries are shown in the table at the end of Appendix 4. 537. In the analytic presentation, debt/bond swaps of obligations falling due in the reporting period and in arrears are recorded below the line as credit entries under exceptional financing; corresponding debit entries are made above the line. However, when arrears are canceled as a result of debt/bond swaps, debit entries are recorded below the line. For obligations not yet due, appropriate entries are recorded above the line. 538. A debt/bond swap often involves a difference between the nominal or face value of the debt swapped and the face value of the bond being issued. In the balance of payments, such swaps are recorded at market prices. If the bond is similar to other bonds being traded, the market price of a traded bond would be an appropriate proxy for the value of the new bond. If the debt being swapped was recently acquired by the creditor, the acquisition price would be an appropriate proxy. Alternatively, if the coupon interest rate on the new bond is below the prevailing interest rate, the discounted value of the bond could serve as a proxy. If such information is not available, the face value of the bond being issued may be used as a proxy. The difference between the face value of the old debt and the market price of the new bond represents a realized holding (capital) loss for the creditor. Debt/Equity Swaps 539. Debt/equity swaps consist of the exchange, usually at a discount, of bank claims on, or other debt instruments of, debtor economies for nonresident investors’ equity investments in those economies. For debt exchanged directly for equity investment, the recording is similar to that for debt/bond swaps (discussed in paragraphs 536 through 538). In this case, however, the credit entries should be made under direct investment-equity capital. These transactions should be recorded at the prices at which the equity investors acquired the claims in the secondary market. Under a second modality, a fixed-payment liability denominated in foreign currency (e.g., a debt security or loan) is exchanged at a discount for a financial instrument denominated in domestic or foreign currency or exchanged directly for a domestic deposit. In the standard presentation, this transaction is recorded by the debtor as an increase in liabilities (credit) under the appropriate financial instrument exchanged for the debt being redeemed; corresponding debit entries depend on the classification of the obligation (liability) being redeemed. Subsequently, the nonresident investor exchanges the financial instrument received for equity investment in an enterprise of the debtor economy. At this point, a credit entry is recorded under direct investment-equity capital, and an offsetting debit entry is made under the appropriate financial instrument being exchanged. Specific entries are shown in the table at the end of Appendix 4. In the analytic presentation, only the initial transaction associated with a debt/equity swap is relevant. Swaps of obligations falling due in the reporting period and in arrears are recorded below the line as credit entries under exceptional financing; corresponding debit entries are made above the line. A debit entry is also recorded below the line if arrears are canceled as a result of the debt/equity swap agreement. For obligations not yet due, no entries are recorded below the line as exceptional financing. Debt/equity swaps are valued at market prices in the balance of payments. If the balance of payments is compiled in foreign currency, the market value in foreign currency of the first transaction—the exchange of the debt instrument for another type of financial instrument—is the price at which the claim on the debtor country was acquired from the original creditor by the nonresident equity investor. The second transaction associated with the debt/equity swap is recorded on the basis of the price (paid in domestic currency and converted into foreign currency at the market exchange rate) for the equity acquired by the nonresident investor. If the balance of payments is compiled in domestic currency, the value for the first transaction is the amount received by the equity investor in exchange for the debt instrument. For the second transaction, the value is the domestic currency value of the equity acquired by the nonresident investor. Borrowing for Balance of Payments Support Borrowing for balance of payments support refers to borrowing (including bond issues) by the government or central bank (or by other sectors on behalf of the authorities) to meet balance of payments needs. In the analytical presentation, the drawing of such a loan or the issue of such a bond is recorded below the line as a credit entry under exceptional financing; subsequent repayments are recorded above the line. Advance repayments for balance of payments purposes are also recorded under exceptional financing. Rescheduling and Refinancing Debt rescheduling refers to the formal deferment of debt service payments and the application of new and extended maturities to the deferred amounts; debt refinancing refers to the conversion of an original debt, including any arrears, into a new loan. In the standard balance of payments presentation, appropriate debit entries for debt rescheduling depend upon the recording period in which the debt obligations fall due. Corresponding credit contra entries are recorded under other investment-liabilities-loans (long-term) in the financial account to reflect the drawing of a new loan. For rescheduling of obligations past due (that is, arrears of interest and amortization), a debit entry is recorded under other investment-other liabilities (short-term). For rescheduling or refinancing of obligations due in the current recording period, debit entries are recorded under the appropriate debt instruments in the financial account for the reduction of principal and for any interest accrued in the previous recording period. For interest accruing in the current recording period, a debit entry is recorded in the current account under investment income. For rescheduling of obligations not yet due, debit entries are recorded under the appropriate debt instruments in the financial account. No entry is made for interest not yet due. There will be a discrepancy, in terms of domestic currency, between the value of the financial instrument received by the investor and the value at which he acquired the debt instrument from the original creditor when the debt instrument is converted into domestic currency at the market exchange rate. This discrepancy should be viewed as a favorable exchange rate involving an implicit subsidy granted by the authorities to the equity investor. 546. Some debt restructuring agreements link the rescheduling of obligations due beyond the current recording period to the fulfillment of certain conditions by the time that the obligations fall due. In such cases, entries are recorded in the balance of payments only in the period in which the specified conditions are met. 547. In the analytic presentation, only rescheduling or refinancing arising from balance of payments needs is recorded. Reschedulings or refinancings of debt falling due in current recording periods and in arrears are recorded below the line as credit entries under exceptional financing; offsetting debit entries are made above the line, except when arrears are rescheduled or refinanced. In this case, debit entries are also recorded below the line. For rescheduling or refinancing of obligations not yet due, there are only entries above the line under the appropriate debt instrument. New Money Facilities 548. Some debt restructurings feature new money facilities (new loan facilities that may be used for the payment of existing debt service obligations). In the standard balance of payments presentation, successive drawings on new money facilities are recorded, usually under other investment-liabilities-loans-monetary authorities (long-term), in the current recording period as a credit for the debtor. Offsetting debit entries are made under reserve assets. As debt service payments are made on the loans included in the debt restructuring, debit entries are recorded under investment income in the current account; the repayment of principal, interest accrued in the previous recording period, and arrears (if any) are recorded under the appropriate liability. 549. In the analytic presentation, the entries are the same as those described in paragraph 547. ## Balance of Payments Accounting for Selected Exceptional Financing Transactions \| Type of Transaction \| Analytic \| Standard \| \|---------------------\|----------\|----------\| \| \| Credit \| Debit \| Credit \| Debit \| \| ACCUMULATION OF ARREARS* \| \| \| \| \| \| Interest \| Exceptional financing \| Investment income, other investment<sup>3</sup> \| Other investment, other liabilities (short-term) \| Investment income, other investment<sup>3</sup> \| \| \| \| Other investment, liabilities (short-term) \| \| \| \| Amortization \| Exceptional financing \| Other investment, liabilities (long-term) \| Other investment, liabilities (short-term) \| Other investment, liabilities (long-term) \| \| REPAYMENT OF ARREARS<sup>5</sup> \| \| \| \| \| \| Interest \| Reserve assets \| Exceptional financing \| Reserve assets \| Other investment, other liabilities (short-term) \| \| Amortization \| Reserve assets \| Exceptional financing \| Reserve assets \| Other investment, other liabilities (short-term) \| \| DEBT FORGIVENESS \| \| \| \| \| \| Payments falling due in the current recording period \| \| \| \| \| \| Interest \| Exceptional financing \| Investment income, other investment<sup>3</sup> \| Capital transfers, debt forgiveness \| Investment income, other investment<sup>3</sup> \| \| \| \| Other investment, liabilities (short-term) \| \| \| \| Amortization \| Exceptional financing \| Other investment, liabilities (long-term) \| Capital transfers, debt forgiveness \| Other investment, liabilities (long-term) \| \| Payments in arrears \| \| \| \| \| \| Interest \| Exceptional financing \| Exceptional financing \| Capital transfers, debt forgiveness \| Other investment, other liabilities (short-term) \| \| Amortization \| Exceptional financing \| Exceptional financing \| Capital transfers, debt forgiveness \| Other investment, other liabilities (short-term) \| \| Payments not yet due in the current recording period \| \| \| \| \| \| Amortization \| Capital transfers, debt forgiveness \| Other investment, liabilities (long-term) \| Capital transfers, debt forgiveness \| Other investment, liabilities (long-term) \| ### Balance of Payments Accounting for Selected Exceptional Financing Transactions \| Type of Transaction \| Analytic \| Standard \| \|---------------------\|----------\|----------\| \| OTHER INTERGOVERNMENTAL GRANTS<sup>6</sup> \| \| \| \| Exceptional financing \| Reserve assets \| Current transfers, general government \| Reserve assets \| \| DEBT/BOND SWAPS \| \| \| \| Payments falling due in the current recording period<sup>7</sup> \| \| \| \| Amortization \| Exceptional financing \| Other investment, liabilities, loans (long-term) \| Portfolio investment, liabilities, debt securities \| Other investment, liabilities, loans (long-term) \| \| Interest \| Exceptional financing \| Exceptional financing \| Portfolio investment, liabilities, debt securities \| Other investment, other liabilities (short-term) \| \| Amortization<sup>7</sup> \| Exceptional financing \| Exceptional financing \| Portfolio investment, liabilities, debt securities \| Other investment, other liabilities (short-term) \| \| Payments not yet due \| \| \| \| \| \| Amortization \| Portfolio investment, liabilities, debt securities \| Other investment, liabilities, loans (long-term) \| Portfolio investment, liabilities, debt securities \| Other investment, liabilities, loans (long-term) \| \| DEBT/EQUITY SWAPS \| \| \| \| Direct swaps \| \| \| \| Payments falling due in the current recording period<sup>8</sup> \| \| \| \| Amortization \| Exceptional financing \| Other investment, liabilities, loans (long-term) \| Direct investment, equity capital \| Other investment, liabilities, loans (long-term) \| \| Payments in arrears<sup>8</sup> \| \| \| \| \| \| Interest \| Exceptional financing \| Exceptional financing \| Direct investment, equity capital \| Other investment, other liabilities (short-term) \| \| Amortization \| Exceptional financing \| Exceptional financing \| Direct investment, equity capital \| Other investment, other liabilities (short-term) \| \| Payments not yet due \| \| \| \| \| \| Amortization \| Direct investment, equity capital \| Other investment, liabilities, loans (long-term) \| Direct investment, equity capital \| Other investment, liabilities, loans (long-term) \| \| Type of Transaction \| Analytic \| Debit \| Credit \| Standard \| \|---------------------\|----------\|-------\|--------\|----------\| \| Indirect swaps \| \| \| \| \| \| Exchange of a fixed-payment liability denominated in foreign currency for a security denominated in domestic currency \| \| \| \| \| \| Payments falling due in the current recording period \| \| \| \| \| \| Amortization \| \| \| \| \| \| Interest \| \| \| \| \| \| Payments in arrears \| \| \| \| \| \| Amortization \| \| \| \| \| \| Payments not yet due \| \| \| \| \| \| Exchange of a liability denominated in domestic currency for equity investment \| \| \| \| \| \| BORROWING FOR BALANCE OF PAYMENTS SUPPORT \| \| \| \| \| \| Drawings on new loans \| \| \| \| \| \| Bond issues \| \| \| \| \| ### Balance of Payments Accounting for Selected Exceptional Financing Transactions (concluded) \| Type of Transaction \| Analytic \| Standard \| \|---------------------\|----------\|----------\| \| \| Credit \| Debit \| Credit \| Debit \| \| RESCHEDULING AND REFINANCING \| \| \| \| \| \| Payments falling due in the current recording period \| \| \| \| \| \| Interest \| Exceptional financing \| Investment income, other investment<sup>3</sup> \| Other investment, liabilities, loans (long-term) \| Investment income, other investment<sup>3</sup> \| \| Amortization \| Exceptional financing \| Other investment, liabilities, loans (long-term)<sup>4</sup> \| Other investment, liabilities, loans (long-term) \| Other investment, liabilities, loans (long-term)<sup>4</sup> \| \| Payments in arrears \| \| \| \| \| \| Interest \| Exceptional financing \| Exceptional financing \| Other investment, liabilities, loans (long-term) \| Other investment, other liabilities (short-term) \| \| Amortization \| Exceptional financing \| Exceptional financing \| Other investment, liabilities, loans (long-term) \| Other investment, other liabilities (short-term) \| \| Payments not yet due in the current recording period \| \| \| \| \| \| Amortization \| Other investment, liabilities, loans (long-term) \| Other investment, liabilities, loans (long-term) \| Other investment, liabilities, loans (long-term) \| Other investment, liabilities, loans (long-term) \| ______________________________________________________________________ 01. For debt rescheduled or refinanced, swapped into equity or bonds, or canceled before maturity, the reduction in the liability should be attributed to the appropriate debt instrument in the financial account. In this table, it has been assumed that long-term loans are the instrument. 02. This presentation, for illustrative purposes, shows separate debit and credit entries for financial account items. In practice, because net recording is recommended for financial account items, entries affecting the same item will be offsetting and thus will not appear as separate entries in a balance of payments statement. 03. For interest accrued in the current recording period. 04. For interest accrued in the previous period. 05. Cash settlement only. 06. Only intergovernmental grants received to finance balance of payments need (Grants received from Fund subsidy accounts are included since such grants are considered exceptional financing transactions.) 07. These payments are recorded by using the market price of the new security issued. 08. These payments are recorded by using the price at which the claim on the debtor country was acquired by the nonresident equity investor. 09. Initially, the debtor country can exchange the liability denominated in a foreign currency for a security denominated in domestic currency, a security denominated in foreign currency, or domestic deposits. Therefore, the appropriate debit entry depends on the type of liability for which the liability that is denominated in foreign currency is exchanged. 10. Borrowing (including bond issues) by authorities or other sectors on the authorities' behalf to finance balance of payments need. V. Selected Issues in Balance of Payments Analysis Introduction 550. Preceding sections of the Manual present, in considerable detail, concepts underlying the standard components of the balance of payments and the international investment position of an economy. The importance of this accounting and statistical reporting framework describing a country’s international transactions derives primarily from the links between these transactions and the domestic economy. These links go in two directions: (i) from the external to the internal side of the economy and (ii) from changes in domestic economic conditions to changes in a country’s transactions with the rest of the world. This section discusses some of these major links and a number of important connections between the major components of the balance of payments and between these components and a country’s international investment position. This discussion directs particular emphasis to the factors influencing external transactions and the extent to which such factors are sustainable. Finally, some of the implications of balance of payments adjustments for economic policy are considered. In this appendix, it is assumed, by and large, that international and domestic transactions are not constrained by formal or informal administrative controls and that market participants are free to respond to price signals and macroeconomic policies. General Framework 551. The relationship between the balance of payments and the domestic economy has already been described (in Chapter 3 and Appendix 1) in terms of the SNA and the current account. Embodied in an identity derived in Chapter 3, this relationship shows that the current account balance is equal to the difference between gross domestic saving (S) and investment (I): [ \\text{CAB} = X - M + NY + NCT = S - I ] when - ( X ) = exports of goods and services - ( M ) = imports of goods and services - ( NY ) = net income from abroad - ( NCT ) = net current transfers Thus the current account balance mirrors the saving and investment behavior of the domestic economy. In analyzing changes in the current account position of a country, it is therefore important to understand the manner in which these changes reflect movements in saving and investment. For example, an increase in domestic investment relative to domestic saving will have the same impact on the current account—at least in the short run—as a decline in saving relative to investment. However, the longer-run implications for the external position of the country may be quite different. More generally, equation (1) shows that any change in a country’s current account position (e.g., a larger surplus or smaller deficit) must necessarily be matched by an increase in domestic saving relative to investment. This highlights the importance of ascertaining the extent to which any policy measures designed to alter the current account balance directly (e.g., changes in tariffs, quotas, and exchange rates) will affect domestic saving and investment behavior in such a way as to achieve the intended effects of the policy measures on the external sector. 552. This link between the domestic and external sectors of an economy can be expressed alternatively in terms of the difference between gross national disposable income (GNDY) and expenditure on goods and services by domestic residents (A). These two variables are defined as: [ \\text{GNDY} = C + I + G + \\text{CAB} ] [ \\text{A} = C + I + G = \\text{domestic absorption or expenditure} ] From these two equations, it follows that the balance on goods, services, and net income plus net current transfers is equal to the difference between gross national disposable income and the use or absorption of this income through expenditures by residents: [ \\text{CAB} = \\text{GNDY} - \\text{A} ] The implication of this relationship for balance of payments analysis is the same as that already noted: improvement in a country’s current account requires that resources must be released through a fall in domestic absorption (i.e., a reduction in expenditure relative to income). Alternatively, it may be possible to achieve an improvement in the external position by means of an increase in national income that is not matched by a commensurate rise in absorption. Implementation of structural measures that reduce distortions and increase the efficiency of the economy would be one way to achieve this objective. 553. This last point highlights an important aspect of the equations shown previously; these are identities that define relationships among variables rather than describe the behavior of economic agents. By themselves, the equations cannot provide a full analysis of the factors determining developments in the current account. For example, total spending on goods and services by domestic residents (A) is likely to be influenced in part by their income (GNDY). Thus it would be inappropriate to use equation (4) to analyze the impact of a change in GNDY on the balance of goods and services without taking full account of the induced response in A of such a change. In particular, if an increase in income were spent by domestic residents entirely on additional goods and services (foreign and domestically produced), higher income would have no impact on the external balance. This example illustrates the necessity for understanding the spending propensities of domestic residents when analyzing the balance of payments. 554. The interrelationship between the internal and external sectors of an economy can be seen in greater detail by distinguishing between the private and government sectors. Private saving and investment (Sp and Ip) and government saving and investment (Sg and Ig) are identified: [ S-I = Sp + Sg - Ip - Ig ] Use of the definition of the current account from equation (1) then gives: [ CAB = (Sp - Ip) + (Sg - Ig) = S-I ] This equation shows that, if government sector dissaving is not offset by net saving on the part of the private sector, the current account will be in deficit. More specifically, the equation shows that the budgetary position of the government (Sg-Ig) may be an important factor influencing the current account balance. In particular, a sustained current account deficit may reflect persistent government spending in excess of receipts, and such excess spending suggests that fiscal tightening is the appropriate policy action. 555. To reiterate an important point, however, equation (6) cannot be used by itself to analyze developments in the foreign sector in terms of investment and saving on the part of the private and government sectors because there are links between the variables on the right-hand side of equation (6). For example, an increase in taxes could be considered the appropriate policy measure both to raise government saving (or reduce dissaving) and to contribute to an improvement in a country’s current account position. In analyzing the impact of higher taxes, it is necessary to take account of the behavioral response of private saving and private investment. Private investment could be positively or negatively affected by higher taxes. The effect would depend, in part, on whether the taxes were levied on consumption, an action that would release domestic resources and thereby tend to “crowd in” domestic investment, or on returns to capital. In addition, private saving would tend to fall because of the decline in disposable income caused by taxes on consumption. Thus equation (6) provides only a starting point for an analysis of the interaction between domestic saving and investment decisions and the external sector; the equation must be supplemented by specific information about the factors that determine the behavior of both the private sector and the government before the effect of policy measures on a country’s current account can be ascertained. 556. In addition to current transactions (i.e., those involving the exchange of goods, the provision of services, and the receipt and payment of income and transfers), the flow of financial transactions (i.e., those involving changes in financial claims on, and liabilities to, the rest of the world) must be analyzed. As noted in chapters 8 and 16, these transactions have two main components: (i) narrowly defined financial transactions in direct investment, portfolio investment, and other investment (including trade credits, loans, and deposits) and (ii) transactions in reserve assets. There are direct linkages between these components of a country’s international transactions. For example, imports of goods are often financed by nonresident suppliers so that an increase in imports will typically be matched by a financial inflow. At the expiration of the financing period, the payment to the nonresident supplier will involve either a drawdown of foreign assets (e.g., foreign deposits held by domestic banks) or the replacement of the liability to the nonresident supplier by another liability to nonresidents. There are also close connections between many financial account transactions. For example, the proceeds from the sale of bonds in foreign capital markets (a financial inflow) may be invested temporarily in short-term assets abroad (a financial outflow). 557. As noted in Chapter 2, the basic principle of double-entry bookkeeping used in constructing the balance of payments implies that the sum of all international transactions—current and capital and financial, including reserve assets—is in principle equal to zero. However, because data for balance of payments entries often are derived independently from different sources, implementation of the double-entry recording system is not perfect. As a result, there typically are net credits or net debits (i.e., net errors and omissions in the accounts). To simplify the exposition in this section, it is assumed that there are no recording errors or omissions and that the sum of all current and capital and financial account items, including reserve assets, is equal to zero. This property of the entire set of a country’s international transactions, which is called the balance of payments identity, is stated by equation (7), in which (again for simplicity) it is assumed that net capital transfers are equal to zero. [ \\text{CAB} = \\text{NKA} + \\text{RT} ] when [ \\text{NKA} = \\text{net capital and financial account (i.e., all capital and financial transactions excluding reserve assets)} ] [ \\text{RT} = \\text{reserve asset transactions} ] 558. This equation shows that the current account balance is necessarily equal (with sign reversed) to the net capital and financial account balance plus reserve asset transactions. This relationship shows that the net provision, as measured by the current account balance, of resources to or from the rest of the world must—by definition—be matched by a change in net claims on the rest of the world. For example, a current account surplus is reflected in an increase in net claims, which may be in the form of official or private claims, on nonresidents or in the acquisition of reserve assets on the part of the monetary authorities. Alternatively, a deficit implies that the net acquisition of resources from the rest of the world must be paid for by either liquidating foreign assets or increasing liabilities to nonresidents. Seen in this light, the balance of payments identity constitutes the budget constraint for the entire economy. 559. The previously described framework for analysis of the balance of payments is applicable, irrespective of the exchange rate regime adopted by a country. For example, if the exchange rate is pegged, then transactions in reserve assets will be determined by the net demand or supply of foreign exchange at that exchange rate (i.e., ( \\text{RT} = \\text{CAB} - \\text{NKA} )). At the other extreme, if the exchange rate arrangement involves a pure float so that no exchange market intervention takes place, then ( \\text{CAB} = \\text{NKA} ). In the intermediate case of a managed float, purchases and sales of reserve assets are typically undertaken to achieve a desired exchange rate path for the domestic currency in terms of one or more foreign currencies. (This section does not cover the advantages and disadvantages of particular exchange rate arrangements and policies. However, the exchange rate is an important instrument of balance of payments adjustment, and a subsequent section includes information on this topic.) The Capital and Financial Account and Balance of Payments Financing 560. The capital and financial account measures net foreign investment or net lending/net borrowing vis-à-vis the rest of the world. This account is one channel through which a country invests its net wealth; the other is primarily tangible domestic capital. The wealth accumulation aspect of the capital and financial account can be seen more clearly by recalling that the current account is equal to the difference between total domestic saving and investment. Hence equation (7) can be rewritten as: [ \\text{S–I} = \\text{NKA} + \\text{RT} ] Thus, to the extent that domestic saving is not matched by an increase in domestic capital accumulation, there will be an increase in private or official assets held in the rest of the world. 561. Equation (8) describes flows of resources and capital over time. The summation, over an extended period of time, of a country’s saving provides a picture of the stock of its total wealth. As defined in Chapter 3, a nation’s stock of assets consists of nonfinancial and financial assets. As the financial assets and liabilities of domestic sectors cancel each other, a country’s balance sheet consists of its stock of domestic nonfinancial assets plus its net international investment position (the stock of external financial assets minus the stock of external liabilities). 562. Concepts and measurement issues related to a country’s international investment position are discussed in Chapter 23. As noted there, the net international investment position of a country at the end of a specific period reflects not only financial flows, which are given by the right-hand side of equation (8), but also valuation changes and other adjustments during the period, all of which affect the current value of a country’s total (private and official) claims on nonresidents and its total liabilities to nonresidents. (Valuation and other adjustments are omitted as the primary focus of this discussion of the balance of payments is on links between stocks of claims and liabilities vis-à-vis nonresidents, changes in these stocks, and the current account.) 563. There is another connection between the financial account and the current account. Financial flows generate changes in foreign claims and liabilities. In nearly all cases, these financial stocks earn a rate of return (interest, dividends, or profits) that appears in the current account as investment income. This link between the accounts is particularly relevant in the case of a country running a current account deficit because there is an important dynamic relationship between an existing deficit and the future current account position. A deficit in the current account must be financed by some combination of an increase in liabilities to nonresidents and a reduction in claims on nonresidents so that the net result is a decline in net foreign assets. As a consequence, there will be a reduction in net investment income (unless rates of return adjust in an offsetting manner), and this reduction will increase the current account deficit. This interaction between the current account and the financial account can lead to a destabilizing situation in which the current account position progressively worsens unless changes in economic policies or adjustments in certain variables (e.g., exchange rates) are made to arrest the deterioration. 564. In analyzing the balance of payments and, in particular, the sustainability of any specific current account situation, it is important to consider the determinants of financial flows. These relate mainly to factors affecting the rate of return and risk on foreign and domestic assets. Such factors include interest rates, the profitability of direct and other investments, expected changes in exchange rates, and tax considerations. These factors are embodied in the expected real (i.e., adjusted for exchange rates and inflation) after-tax rate of return on the stock of foreign assets held by residents and on the stock of claims held by nonresidents. Residents and nonresidents are subject to different legal and tax considerations, which affect the rates of return on asset holdings. However, both are similarly affected by economic conditions external to the countries in which they are resident. Moreover, these external conditions are exogenous to an individual country. Therefore (for the purposes of this discussion), it seems reasonable to assume that these conditions are constant and to focus on the domestic economic situation affecting rates of return on investments in the relevant country. 565. In addition, domestic and nonresident investors appear to be influenced largely by the same set of factors affecting rates of return on domestic investments. In other words, irrespective of whether the investor’s residence is in the home country or abroad, the decision of whether to invest in the home country or another country will be influenced—for the most part—by the same set of considerations relating to expected returns on domestic assets. Changes (such as interest rates, rate of profit, inflation, and the exchange rate) in domestic variables are therefore likely to have similar effects on residents deciding to invest at home or abroad and on nonresidents choosing to invest in their home countries rather than in other, worldwide investment opportunities. Consequently, when one views the net financial account, one may plausibly assume that the stock of claims on nonresidents and the stock of liabilities to nonresidents are influenced by the same array of considerations.19 566. On the basis of this background, it is possible to examine a key aspect of balance of payments analysis (namely, the financing of a current account deficit by means of net financial inflows and reserve assets) and some of the economic policy issues involved.20 For such an analysis, it would be helpful to use equation (7), the balance of payments identity, and to assume that initially $S = I$ (i.e., that the current account is zero and that net capital and financial account and reserve asset account transactions are also zero). From this initial situation, it is instructive to trace the effects, ______________________________________________________________________ 19This perspective includes the assumption that there are no controls on international capital flows. As such controls are not typically applied in the same manner to transactions involving residents and to those undertaken by nonresidents, the presence of such controls implies that the same factors are likely to affect residents and nonresidents in different ways. 20Balance of payments presentations sometimes show an overall balance, which has been variously defined according to the perspectives of the analyst. This measure involves distinguishing transactions recorded above the line from those recorded below the line. This procedure is linked to the double-entry system of recording balance of payments entries because the two groups must be numerically equal with opposite signs. Drawing the line involves making certain analytical distinctions. In many instances, the overall balance is equal, with the exclusion of transactions in reserve assets and exceptional financing, to the sum of current and capital and financial account transactions. According to this definition of the overall balance, below-the-line transactions are considered to be accommodating or financing the net result of above-the-line transactions, which are considered autonomous. In other balance of payments presentations, the overall balance is equal, with the exclusion of transactions (including those in reserve assets) of the domestic banking sector, to the sum of current and capital and financial account transactions. In such a presentation, the below-the-line transactions correspond to the net foreign assets of the banking system (including the central bank). This presentation may be helpful in analyzing the impact of such transactions on the creation of domestic liquidity. on the current account and the financial account, of an autonomous increase, which is generated by a rise in the productivity of capital, in domestic investment. If this additional investment is not matched by a corresponding rise in domestic saving, interest rates will tend to rise as long as the monetary authorities do not peg the rates. The excess of investment over domestic saving will be reflected in a current account deficit, which may be financed by a net financial inflow induced by the rise (in comparison to interest rates abroad) in domestic interest rates. 567. Whether there is spontaneous financial account financing of a current account deficit depends on a number of considerations. First, the financial inflow may be directly related to increased domestic capital spending in the form of foreign direct investment, loans obtained from foreign banks, or bonds issued in international capital markets. The foreign financing can be for the purchase of foreign goods and services required for an investment project and for the purchase of domestic inputs. Alternatively, additional investment may be financed domestically by means of bank loans or issues of equities and bonds. In this case, there is no direct link between increased domestic expenditures and foreign financing. However, the tendency for domestic interest rates to rise (in comparison with rates abroad) because of the increased investment will provide an incentive for funds to flow into the country. Whether or not funds do so depends largely on how investors view the economic prospects of the country. The prevalence of stable economic and political conditions—particularly if it is not likely that the higher interest rate will be offset by a continuing depreciation of the exchange rate of the country—will increase the spontaneous movement of funds into the country. 568. The financial inflow associated with the excess of investment over saving involves a reduction in the net foreign asset position of the country and the reduction, in turn, will change the net investment income flow of the country. The key analytical issue is whether the country will be able to service the change in the net foreign investment position without undertaking significant modifications in economic policies or without incurring undesirable changes in interest rates or exchange rates. Servicing is likely to occur without changes if the investment makes a significant contribution to the productivity of the economy. Such a contribution can be manifested in two ways: first, the firm or government enterprise undertaking the investment must be sufficiently profitable to pay the rate of return that will attract the funds to finance the investment; second, the additional investment must enhance the debt-servicing capacity of the economy. As long as funds imported from abroad are invested productively in the domestic economy, external financing for a current account deficit is likely to be forthcoming for a considerable period of time. In this situation, the capital-importing country’s current account deficit manifests an efficient allocation of resources. 569. Alternatively, it is useful to consider a case in which investment is unchanged but domestic saving declines—either because of an increase in government spending not matched by a rise in tax and other revenue or because of an increase in private consumption not matched by an offsetting change in government saving. In this situation, domestic interest rates would also tend to rise. However, unlike the previous case, the shift to a current account deficit is not paralleled by an increase in productivity in the economy. Under these conditions, there may not be a spontaneous inflow of funds if investors view the deterioration in the current account as reflecting inappropriate and unsustainable government policies. For example, the decline in domestic saving may reflect an enlarged public sector deficit that is not associated with increased investment. Alternatively, the rise in absorption may be due to higher private spending generated by an expansionary monetary policy. Under these circumstances, investors may not wish to increase their net claims on the country. 570. In the absence of a spontaneous financial inflow, some combination of the following will be necessary: policy actions to attract private funds, the use of reserve assets for balance of payments financing, and/or the implementation of balance of payments adjustment measures. From the balance of payments identity (equation (7), it can be seen that, if the current account shifts into deficit, financing must take place either by drawing down the country’s international reserve assets or by increasing incentives for attracting private funds. The latter can be achieved by enhancing the domestic economic environment for long-term investment. The adoption of monetary and fiscal policies that support stable economic conditions and encourage direct and other investment would tend to induce financial inflows on a sustained basis. Funds may also be induced to flow in from abroad—and to provide balance of payments financing—by the raising of domestic interest rates. Such a policy may well be appropriate if the current account deficit is caused by aggregate demand pressures; a restrictive monetary policy would have the effect of dampening excess demand and providing short-term financing. However, such financing may not be dependable from a long-term perspective as, for example, changes in foreign monetary conditions may make investment of liquid assets in the domestic economy appear unattractive. Therefore, it is necessary to look at the underlying causes of a current account deficit requiring fundamental balance of payments adjustment to such an extent that the deficit cannot be financed by financial inflows on a sustained basis. 571. The appropriateness of using reserve assets to finance a gap between domestic expenditure and income, rather than undertaking adjustment measures to reduce or eliminate this gap, depends on the extent to which the gap is temporary or reversible. As a country’s stock of owned reserve assets (as well as the resources it can borrow to supplement its reserve assets) are limited, the use of reserve assets to finance a current account deficit is confined within these limits. However, by mitigating the necessity for balance of payments adjustment, official financing can perform a useful buffer function. For example, temporary shocks, such as poor harvests or other temporary supply disruptions, to domestic output do not necessarily require comparable changes in the domestic absorption of goods and services. Thus the financing, through the use of reserve assets, of a temporary excess of consumption and investment over national income can provide a desirable smoothing of the path of expenditures by residents. The reserve assets can also be used to finance seasonal swings in foreign payments and receipts. While the financing of temporary shocks is appropriate, recourse—although it can make the adjustment path smoother and more gradual—to owned or borrowed reserve assets does not obviate the necessity for adjustment if deterioration in the current account persists. 572. There are limits on the extent to which private funds and official resources can finance a current account deficit. The willingness of the private sector to invest in the country may be directly influenced by ongoing changes in reserve assets. If the existing stock of reserve assets is relatively low in comparison with the current account deficit and the monetary authorities are expected to exhaust the country’s reserve assets within the investment horizon of the investors, then the probability of a depreciation of the exchange rate or the introduction of other policy measures adversely affecting the rate of return expected by investors would tend to increase significantly. Under these circumstances, any private funds from abroad that are financing all or part of a current account deficit could quickly switch from a net inflow to a net outflow. As can be seen from equation (8), unless adjustment measures are implemented to reverse both the current account deficit and the financial account outflow, reserve assets would be required to finance both an excess of domestic investment over saving and a net increase in claims on nonresidents. Such a situation would probably result in a loss of confidence in the currency, exacerbation of the financial outflow, and a rapid exhaustion of reserve assets. Balance of Payments Adjustment 573. There are many situations in which it may not be feasible to rely on private and official resources to finance a current account deficit on a sustained basis. For balance of payments analysis, it is therefore important to consider the possible introduction of adjustment measures to achieve a viable external payments position (i.e., conditions under which a deficit on goods and services can be financed by private and official transfers, private capital inflows, and some recourse to reserve assets). The subsequent discussion examines briefly the roles of exchange rate changes, fiscal measures, and monetary policy in achieving balance of payments adjustment. 574. In this analysis, it is useful to rewrite equation (8) as: [ S-I = CAB = TB + SIB + TRANB = NKA + RT ] when [ TB = \\text{trade balance} ] [ SIB = \\text{service and income balance} ] [ TRANB = \\text{current transfer balance} ] The magnitude of the necessary adjustment in the balance of payments depends, to some extent, on the nature of the components of the current account balance. For example, a country may have been running a persistent trade deficit that was financed, in part, by borrowing from private and official sources. In this situation, the country is also likely to be running a deficit on the service and income balance that reflects the servicing of this debt. Part of the deficit arising from trade, service, and income transactions may, however, be offset by a surplus from current transfers, which could reflect both official and private transfers. If such inward transfers are expected to be of a long-term nature and can confidently be relied upon to finance all or part of the deficit in other components of the current account, then the extent of the necessary balance of payments adjustment may be rather small. However, even in the case of a small adjustment, it is nonetheless important to be fully cognizant of the fact that foreign debts must be paid in the future. Thus the amortization schedule of the country is an important factor for judging the sustainability of a particular balance of payments position. If large amortization payments are due in the near future and expected financial inflows are not sufficient to cover payments falling due, it may be necessary to undertake adjustment measures beforehand to avoid more drastic measures required for dealing with a subsequent balance of payments crisis. In the face of an unsustainable current account deficit, one adjustment measure that should be considered is a depreciation of the exchange rate of the domestic currency. Such a depreciation may be necessary to offset a domestic price rise (relative to prices abroad) that—by penalizing exports and encouraging imports—worsens the trade balance. To the extent that the depreciation raises the prices of traded goods (i.e., exports and imports) in comparison with the prices of non-traded goods and services, depreciation will promote the substitution of domestic products for imported goods and stimulate foreign demand for domestic output. However, as the depreciation will be accompanied by a rise in domestic prices in response to the increase in the cost of imported goods and services and the rise in demand for exports and domestically produced import substitutes, the improvement in international competitiveness generated by the exchange rate change will be partially or fully eroded. Such a development underscores the importance of supplementing the exchange rate adjustment with restrictive monetary and fiscal policies to facilitate the shift in resources signaled by the change (caused by the depreciation) in relative prices. Thus, an expenditure-switching policy in the form of exchange rate depreciation must generally be supported by expenditure-reducing measures; indeed, such measures are essential if there is no excess capacity in the economy. The need for such action can be seen from equation (9), which shows that any improvement in the current account must be matched by a corresponding positive change in the difference between domestic saving and investment. An exchange rate depreciation by itself may generate such a change in the desired direction. In particular, if there is no change in the stance of monetary policy, the increase in demand generated by the depreciation will raise the demand for money. With an unchanged money supply, the greater demand for money will tend to increase nominal and real domestic interest rates. As a result, interest-sensitive expenditures will be dampened, and there could be a positive impact on domestic saving. However, it is unlikely that this induced effect on the gap between savings and investment will itself be sufficient, particularly if the economy is at full employment, to achieve the desired improvement in the current account. Therefore, in all likelihood, it will be necessary to accompany the adjustment in the exchange rate with measures to reduce the level of domestic expenditure through tighter monetary and fiscal policies that release resources to expand output in the exporting and import-substitution industries. The discussion of equation (6) pointed to fiscal deficits as one potential cause of external imbalances. Changes in government spending and taxation may therefore be mandated to achieve the required reduction in the saving/investment gap—to the extent that an exchange rate depreciation does not induce a sufficient response in the difference between total domestic saving and investment. However, it is important that fiscal policy measures be designed to achieve the desired objective and not exacerbate the adjustment problem. For example, cuts in infrastructure investment may have the desired short-run balance of payments effect, but such cuts could have, particularly if the spending reductions are in such areas as transportation, a long-run adverse impact on the supply potential of the country and the generation and supply of energy designed to relieve bottlenecks. Moreover, tax measures that result in very high marginal tax rates or that are aimed particularly at capital income could have the undesired side effect of inducing offsetting reductions in private saving and reducing incentives to invest in the country. Such disincentive effects can be avoided by implementing fiscal action aimed at reducing or eliminating subsidies to inefficient government enterprises and the private sector and by cutting back on government activity that can be performed equally well, if not better, by the private sector. The stance of monetary policy plays an important role in balance of payments adjustment. The existing external imbalance may reflect an excess of domestic investment over saving (or what is the same thing—an excess of domestic spending over income) that results from an excessively expansionary monetary policy. It is, first of all, important to adjust the stance of monetary policy so that interest rates are generally positive in real terms and provide an incentive to savers and so that domestic economic conditions are sufficiently stable to encourage investment. From the perspective of aggregate supply and demand, it can be seen from equation (4) that monetary policy should ensure that the level of domestic expenditure is in line with the productive capacity of the economy. Thus, from the point of view of balance of payments analysis, the objective of monetary and fiscal policies is to limit domestic spending to what is available from domestic resources and foreign financing. 580. One important aspect of monetary policy in balance of payments adjustment is the link between reserve asset transactions and domestic monetary conditions. A decline in reserve assets may be associated with a current account deficit and/or a net financial outflow caused by an expansionary monetary policy. The reserve asset decline can lead to a reduction in the monetary base and therefore to a tightening in the stance of monetary policy. A more restrictive monetary policy tends to correct the payments imbalance through higher interest rates that dampen domestic demand and make domestic assets more attractive to investors. However, this built-in adjustment mechanism can be short-circuited if the monetary authorities offset the effect of the loss of reserve assets on the monetary base by increasing the domestic component of the base (e.g., through open market purchases of securities held by the banking system). Such offsetting action tends to prevent domestic interest rates from rising and thereby contributes to the persistence of the balance of payments deficit. 581. The foregoing discussion focuses entirely on an economy that faces an actual or incipient balance of payments problem in the form of a persistent current account deficit or financial outflow that may also be accompanied by a loss of reserve assets. This concentration on external deficits reflects the more prevalent tendency for domestic expenditure to exceed available income and the frequent necessity of formulating policies to deal with the financing or adjustment of a balance of payments deficit.21 The opposite situation (namely, a persistent current account surplus, inflow of capital, and substantial accumulation of reserve assets) occurs less often and generally does not pose as severe a problem for economic policy. 582. Nonetheless, an analysis of some aspects of a surplus balance of payments situation is useful. As can be seen from equation (7), the balance of payments identity, a surplus in the current account is reflected in an increase in net claims held by the private sector or government (NKA) on nonresidents and/or an increase in official reserve assets (RT). The change in the net foreign asset position may be due to a reduction in liabilities to nonresidents rather than to an increase in gross claims. Such a reduction may well be a desirable development if a previous large buildup of liabilities has imposed a severe debt service burden on the country. In this case, a current account surplus can be an appropriate step toward achieving a viable balance of payments position. 583. The case of an economy with no recent deficits of payments and an increase in its gross private claims on the rest of the world reflects an excess of aggregate domestic saving over domestic investment. If the government’s fiscal position is in deficit, private sector saving will exceed domestic investment. The allocation of part of domestic saving to foreign assets presumably reflects the fact that investors find the rate of return on these assets more attractive, at the margin, than investment opportunities in the domestic economy. The provision of resources to the rest of the world in the form of a buildup of net claims on nonresidents will, by and large, result in an efficient allocation of the domestic economy’s saving as long as the buildup of net claims reflects the operation of market forces rather than government policies designed directly or indirectly to increase such claims. 584. Thus, for analyzing the balance of payments of a country in persistent surplus, one key consideration is whether government policies distort saving/investment decisions and thereby bias the payments position of an economy toward a surplus. Such distortions can take many forms. First, there are measures aimed directly at influencing the current account. Examples are tariffs and quotas that limit imports, restrictions on payments abroad, and export subsidies and government procurement policies that give preference to domestic producers. Moreover, an exchange market intervention policy may be directed at deliberately undervaluing the country’s currency to achieve a current account surplus. Finally, there may be measures that limit foreign acquisition of domestic assets—a limitation that would tend to bias the financial account toward a net outflow and thereby shift the current account in the direction of a surplus. 585. These measures may, in fact, not be successful in achieving a larger current account surplus. Policy actions aimed at particular components of the balance of payments will, over time, lead to offsetting movements in other components in the absence of changes in the underlying determinants of saving and investment. In any event, if a large and persistent current account surplus appears to arise from such distortionary measures, the appropriate policy action is the reduction and eventual removal of these distortions. If a persistent surplus remains after such measures are eliminated, then the accumulation of net claims on the rest of the world would appear to manifest the saving and investment propensities of the economy. If, in this case, one were to identify the surplus as a problem, it would generally be necessary to establish that private saving or government saving was excessively high or that domestic investment was too low. It is considerably more difficult to arrive at such a conclusion than to identify the previously enumerated distortions that relate directly to international transactions. 586. A current account surplus, while reflecting entirely a response to market forces, may cause economic difficulties for a country. For example, a country with “Dutch disease” experiences either a natural resource discovery or a substantial improvement in the terms of trade for the natural resources sector. The expanding sector or terms of trade gains lead to an improvement in the current account and an appreciation of the exchange rate. This development tends to make other sectors of the economy contract and be less competitive internationally. If the newly discovered resources are expected to be depleted fairly rapidly and the gains in terms of trade to be transitory, it may be appropriate to protect the sectors adversely affected. One way to achieve this objective is through exchange market intervention to prevent or moderate the exchange rate appreciation. The accumulation of reserve assets tends to insulate the real economy from having to adjust to the short-run disturbance. 587. The general conclusion of such an analysis is that, when no government policy actions are aimed at achieving a surplus balance of payments position, it may be difficult to establish that an economy is investing too much of its saving abroad. However, it may be somewhat easier to reach a conclusion with respect to reserve assets. Rather than leading to a rise in net foreign assets held by the private sector, a current account surplus can be reflected in a buildup of foreign reserve assets. A buildup represents specific government policy action in the form of foreign exchange market intervention. Intervention, which involves the sale of domestic currency in exchange for foreign currency, has the tendency to keep the foreign exchange value of the domestic currency lower than it otherwise would be. The accumulation of reserve assets may therefore limit the extent to which the currency appreciates and thereby prevent the operation of the self-correcting mechanism that would tend to reduce the current account surplus. 588. Thus, one aspect of balance of payments analysis for a country with a persistent current account surplus involves an appraisal of the level of external reserve assets held by monetary authorities. The accumulation of such assets is excessive if the assets exceed, by a wide margin, the amount required to finance short-run balance of payments deficits. In such a situation, the country’s resources may well be better invested in domestic capital formation. If the private and government sectors are unlikely to increase domestic capital formation, cessation of reserve asset accumulation would lead to an increase in domestic absorption and/or to a rise in net foreign investment by domestic residents. In either case, allocation of the economy’s resources would tend to be more efficient as the allocation would be responding to market forces. 22Countries that are large exporters of nonrenewable resources, such as oil, may have limited domestic investment opportunities. In such cases, the buildup of foreign assets can be viewed not so much as an accumulation of reserve assets for balance-of-payments financing purposes but rather as a diversification of the country’s stock of wealth. Also, there may be a case for the accumulation of reserve assets in the instance of a country subject to Dutch disease if the effects are expected to be transitory. Index Numbers refer to paragraphs; ranges (e.g., 175–185) are inclusive. References followed by n indicate footnotes. Above-the-line entries, 452, 526, 566n Absorption or expenditure, domestic, 552, 553 Accounting accrual, 121, 396, 458 for exceptional financing, 454–459, 526–549 Accounting services, 264 Accounts receivable and payable, 413, 422 Accrual accounting, 121, 396, 458 Accumulation accounts, 45, 47 Acquisition or disposal of nonproduced, nonfinancial assets, 175, 312, 358 valuation and timing, 341, 342 Adjustment(s), 383, 573–588. See also Time of recording monetary policy in, 579, 580 in reserve assets, 436 seasonal, 433 ADRs. See American Depositary Receipts Advance repayment, 454, 544 Advertising services, 264 Affiliated enterprise(s), 93, 97–103, 119, 205, 316 Agents, 83 commissions, 255 fees, 228, 240 Agricultural services, 264 Aid, development, 432 Aid agencies, 59 Aircraft, 208, 217, 263 Airfield facilities, repairs of, 230 Airport fees, 300 Airport services, 240 Alimony, 303 Allocation. See Regional allocation American Depositary Receipts (ADRs), 388 Amortization, 458, 528, 575 cash settlements of, 530 Analysis, 550–588 general framework, 551–559 Animals for breeding, show, or racing, 209 Annual or regular contributions to international organizations, 298 Arbitrage, 323 Architectural services, 264 Arrears. See also Exceptional financing accumulation of, 453, 528–529 of interest and amortization, 458, 528 repayment of, 453, 530–531 Art exhibits, 209 Asset-backed securities, 390 Assets, 331, 413, 422. See also Acquisition or disposal of nonproduced, nonfinancial assets; Financial assets; International investment position; Reserve assets classification of, 464 committed, 433 external, 505 immovable, 316 intangible, 358 net recording of, 324 nonfinancial, 214 not considered reserves, 432 other than reserves, 32 stocks of, 35 regional allocation principles, 484 valuation of, 107–108 subsoil, 312, 358 transactions in, 317–320 borderline cases, 322–323 valuation changes in, 310 Associates, 362, 384 Auction sales, 262 Audiovisual services, 265 Auxiliary services, 240 Bad debts, 285. See also Write-offs Baggage fees, 232 Balance of payments, 139–181, 292. See also specific accounts conceptual framework, 12–33 definition of, 13 SNA rest of the world account and, 499–511 standard components, 143–145 structure, 139–142 uses of, 7–10 Balance of Payments Compilation Guide, 2, 481n Balance of payments identity, 557, 566 Balance of payments need, 451–453 borrowing for, 544 Balance sheets, 45, 54, 55, 377, 467, 561 Balancing item (label), 147 Bank deposits, 442 Bankers acceptances, 258, 391 Banking sector, 516 Banknotes, uncirculated, 420 Banks, 333, 372, 516 central, 442, 514 regional, 90 commercial, 516 savings, 516 Barter, 93 Below-the-line entries, 452, 454, 526, 566n Bilateral statements, 479 Black market rates, 137–138 BMD. See OECD Detailed Benchmark Definition of Foreign Direct Investment Bonds, 387, 389, 390, 442, 544. See also Debt securities convertible, 390, 390n depth discounted, 283, 390, 396 dual currency, 390 floating rate, 390 indexed, 390 with optional maturity dates, 390 zero coupon, 390, 396 Bond swaps. See Debt/bond swaps Bonus shares, 290 Book values, 99, 377, 467 Border workers, 67 Borrowing, 453 for balance of payments support, 544 Branches (direct investment), 362, 384 Brokerage fees, 258 Buffer stock, 441 Buildings. See Structures Building societies, 516 Bunker fuel. See Fuels Business services, 264 other, 166, 212, 230, 254, 261, 267 Business travel, 246–248 Business travelers, 246 CAB. See Current account balance Cable services. See Communications services Call option, 401 Cancellation of debt. See Debt forgiveness Capital direct investment, 368–374 equity, 369 Capital account, 4, 50, 172, 311–312, 507 components, 175 coverage, 309, 343 SNA, 47, 50, 510 Capital and financial account, 4, 50, 149, 150, 172–181, 343 coverage, 308–310 and financing, 560–572 structure and characteristics, 308–342 valuation and timing, 341–342 Capital gains and losses. See Holdings Capital subscriptions to international organizations, 422 Capital transfers, 28, 175, 294, 311, 344–345 characteristics, 295 classification, 311, 345, 346–357 distinction between current transfers and, 295–297, 344 general government, 347–350 net, 50 other sectors, 351–357 taxes on, 350, 357 valuation, 341 Cargo handling, 240 Carriers. See also Mobile equipment; Transportation equipment crews, 246 goods procured in ports by, 156, 195, 230 registration fees, 300 rentals (charters) of carriers without crew, 230 Cash items, 106 Cash settlements of interest and amortization, 530 Cash transfers, 297, 298 Catastrophes, 285 Center(s) of economic interest, 21–22, 39, 58, 62–64 guidelines, 63 international, 71 Central bank currency swaps, 405, 434 Central banks, 442, 514 regional, 90 Central Product Classification (CPC), 518 differences between balance of payments classification and, 508, 524 objectives, 521 scope, 522 structure and coding system, 523 Certificates of deposit, 390 negotiable, 391 short-term, 516 Change(s) of ownership, 112, 113, 114–118, 126, 203–210, 216, 316, 317. See also Time of recording collection convention for recording, 204 exceptions, 119–120, 205–207 temporary, 207, 208 Charters. See also Leases; Rentals time, 239 of transportation equipment without crew, 230, 263 c.i.f. valuation. See Valuation Circus equipment, 209 Civil servants, 70 Claims, 372, 424, 442. See also Financial account availability for use, 431 direct investment, 371 intercompany, 270 for non-life insurance, 304 reclassification of, 32 tradable, 483 Classification, 43–44, 506–511. See also Reclassification; specific items detailed, 151 differences between CPC and, 524–525 of income, 269–281 of international investment position, 464–466 of international transactions in services, 518–520 major, 149–150 CMOs. See Collateralized mortgage obligations Coin(s), 214, 215, 420 commemorative, 420 Collateralized mortgage obligations (CMOs), 390 Commemorative coins, 420 Commercial banks, 516 Commercial paper, 391 Commissions, 240, 255, 258, 262 Commitment charges, 258, 281 Commodities, 262, 392 Commodity gold, 157, 184, 195, 208, 215 classification, 438 definition, 202 Common stocks, 388. See also Securities; Shares Communications services, 160, 253 Compensation of employees, 5, 169, 190, 191, 270 classification, 272 coverage, 509 definition, 269 Compensation payments, 350, 357 Compensatory financing, 441. See also Exceptional financing Compilation guide, balance of payments, 2 Computer and information services, 164, 200, 212, 259 Confidentiality, 442 Consignment. See Goods Construction enterprises, 380 Construction services, 161, 200, 230, 254 Consular fees, 229 Consulates, 59 Contingency financing, 441 Contracts. See also Futures contracts; Transaction(s) transferable, 358. See also Leases Contributions. See also Transfers to international organizations, 298, 303 to social security, 304 Conversion, 128. See also Exchange rate(s) multiple official exchange rates and, 134–136 principles and practices, 132–133 procedures, 42, 503–505 Conversion rate, 503 Copyrights, 312, 358 Corporate bonds. See Bonds Corporate equity. See Equity Corporation(s) definition of, 74 nonfinancial, 517 public, 77 incorporated, 76 Correspondence courses, 244 Counterparts, 3, 304, 436 Courier services, 253 Coverage, 195 CPC. See Central Product Classification Credit(s), 16, 19. See also Accounting; Loans from IMF, 413, 415, 419 letters, 258 lines, 258 trade, 413, 414, 416 Credit tranches, 441 Credit unions or cooperatives, 516 Crews of carriers, 246 rentals of transportation equipment with, 239 of transportation equipment, 67 Cross-border investment in equity and debt securities, 330 Cross-currency warrant, 404 CTB. See Current transfer balance Cultural services. See Personal, cultural, and recreational services Currency, 413, 420, 442. See also Conversion domestic exchange rate depreciation, 576 sale of, for foreign currency, 587 reserve assets, 442 Currency swaps, 392, 405, 434, 470 Currency warrant, 404 Current account, 50, 149, 150, 152–171, 182–194 classification, 174, 183–191 connections between financial account and, 562–563 gross recording, 192–193 SNA, 45, 46 structure, 183 time of recording, 121, 194 valuation, 106, 194 Current account balance (CAB), 53, 182, 551, 552–555, 557, 558, 559, 574 Current account deficit, 553, 558, 563, 569 adjustment for, 573–588 financing, 566–568, 570–572, 588 Current account surplus, 558, 581, 582–585, 586, 587, 588 policy aimed to achieve, 584–585 reduction of, 587 Current transfer balance (CTB), 574 Current transfers, 28, 152, 171, 191 classification, 298–305, 345 definition and coverage, 291–294 distinction between capital transfers and, 295–297, 344 external account, 507, 509 valuation and timing, 306–307 Customs frontiers, 203, 219, 222, 224 Customs returns, 203, 215 Damages, 350 Data, uses of, 7–10 Death duties, 350, 357 Debentures, 389, 390. See also Debt securities Debit(s), 16, 19. See also Accounting Debt. See also Loans external, 474 forgiven, 534 gross external, 474n income on, 279, 280 negotiable, 389 Debt/bond swaps, 536–538 Debt cancellation. See Debt forgiveness Debt/equity swaps, 453, 456, 472, 539–543 valuation of, 543 Debt forgiveness, 348, 356, 453, 455, 532–534 Debtor/creditor principle, 482, 486n analytical implications, 493–494 Debtor/transactor principle, 485, 485n Debt refinancing, 457, 547 Debt reorganization, 453, 454, 456 Debt repayment, 316 Debt rescheduling, 453, 457, 545, 547 Debt restructuring, 546 Debt securities, 332, 387, 389, 394. See also Bonds cross-border investment in, 350 Deep discounted bonds, 283, 390, 396 Deficit. See also Current account deficit external, 581 Demonetization of gold, 3, 310, 436, 439 Depletion of natural resources, 285 Depository institutions, 372, 516 Deposits, 372, 413, 420, 421, 423, 516. See also Certificates of deposit bank, 442 reciprocal, 434 reserve assets, 442 savings, 421 temporary exchange of, 434 time, 421 transferable, 421 Depreciation, 576 calculation of, 286 Destroyed goods, 208, 209 Development aid, 432 Diamonds, 215 Diplomatic shipments, 209 Diplomats, 70 Direct insurance, 255. See also Insurance services Direct investment, 32, 176, 177, 330, 339, 359–384 capital, 368–374 classification, 329, 330, 465 concept and characteristics, 359–361 enterprises, 362–366, 378–383 income, 170, 276–279 measurement and recording of earnings, 285–289 net recording, 375 profitability of, 564 recording, 326 reinvested earnings, 31, 277, 278, 284, 288, 321, 369 supplementary information, 384 transactions involving third parties, 490 valuation of, 376–377, 467 Direct investors, 367, 384 Direct transit trade, 209 Discounts, 274, 283, 391, 396, 400 Display equipment, 209 Distributive services, 221, 222, 227. See also Shipping services Diversification, 588n Dividends, 274, 277. See also Bonus shares; Investment income liquidating, 290 stock, 290 time of recording of, 282, 284 Doctors’ fees, 244 Domestic absorption or expenditure, 552, 553 Domestic currency exchange rate depreciation, 576 sale of, 587 Domestic saving. See Gross saving Domestic sector, 333–335 Domestic securities, 485, 487 Double entry system, 16–20, 109, 113, 557 Dowries, 303 Dual currency bonds, 390 “Dutch disease,” 586, 588n Duties. See Customs returns; Death duties Earnings. See also Income; Investment income measurement and recording of direct investment, 285–289 operational, 285 reinvested, 31, 277, 278, 321, 369 recording of, 288 time of recording of, 284 Economic interest, center(s) of. See Center(s) of economic interest Economic territory, 21–22, 39, 58, 59–61 Economic transactions. See Transactions ECUs, 442, 442n Education services. See Personal, cultural, and recreational services Electricity, 215 Embassies, 59 Employees, 67, 269. See also Compensation of employees; Personnel government, 70, 215, 243, 246, 248 of international organizations, 67, 88, 246, 248 Engineering services, 264 Enterprise(s) affiliated, 93, 97–103, 119, 205, 316 attribution of production, 78–79 definition of, 74 direct investment, 362–366 government, 77 incorporated, 76 offshore, 79 operating mobile equipment, 80–82 owned by two or more governments, 89 private, 76 public, 76, 362 residence of, 73–83, 231 guideline for, 73 types of, 75–77 unincorporated, 76, 316 Enterprise surveys, 384 Equipment, 214, 349 display, 209 military, 349 gifts of, 298 mobile, 208, 209. See also Transportation equipment units operating, 80–82 stage and circus, 209 Equity cross-border investment in, 330 income on, 274, 277, 280 reverse investment in, 371 Equity capital, 369 Equity securities, 387, 388, 394, 442 Errors. See Net errors and omissions Eurocommercial paper, 399 Exceptional financing, 446, 451–453 accounting for, 454–459, 526–549 identification of, 453 Exchange rate(s), 132, 133, 559. See also Conversion appreciation, 586 black or parallel market, 137–138 changes, 466 depreciation, 576, 577, 578 expected changes in, 564 favorable, 543n floating, 559 market, 132, 133 multiple, 131 multiple official, 134–136, 138, 504 official, 137, 138 principal, 135 unitary, 135 Exchanges, 27 Excursionists, 243 Exhibits, 209 Expenditure(s) domestic, 552, 553 shipboard, 232 Exports of general merchandise, 199 of goods, 114, 508 exclusions, 209–210 inclusions, 208 government, 215 returned, 209 of services, 508 temporary, 209 Expropriation, 285, 310 Extended Fund facility, 441 External assets, stocks of, 505 conversion of, 133, 136 External debt gross, 474n relation of international investment position to, 474 External deficits, 581 External financing for current account deficit, 568 External liabilities, stocks of, 505 conversion of, 133, 136 External transactions account, 507, 509 Extraordinary income, 285 Fares, passenger, 232 f.a.s. valuation, 225 Fees, 300. See also specific types Financial account, 268, 313–339, 507. See also Capital and financial account borderline cases, 322–323 classification of components, 6, 174, 176–181, 308, 328–329 connections between current account and, 562–563 coverage, 309, 313–316, 446 net recording, 527 SNA, 47, 50, 52, 511 supplementary information, 446–460 time of recording, 121 Financial assets, 149 classification of, 316, 511 external, 133, 136 foreign, 313 Financial derivatives, 315, 387, 389, 392, 393, 442 valuation of, 469 Financial external assets, conversion of stocks of, 133, 136 Financial instruments. See specific instruments Financial intermediaries, non-depository, 517 Financial intermediation charge indirectly measured, 258n, 508, 509 Financial items. See also specific items valuation of, 106 Financial leases, 206, 239, 258, 267, 417 goods transferred under, 93, 119, 316 Financial liabilities, 149 conversion of stocks of external, 133, 136 Financial paper, 391 Financial services, 163, 258 Financial transactions, 52, 106, 123 analysis of, 556 regional allocation principles, 482–483 type of instrument, 332 Financing. See also Refinancing capital and financial account and, 560–572 compensatory, 441. See also Financing, exceptional contingency, 441 current account deficit, 566–568, 570–572, 588 exceptional, 446, 451–453 accounting for, 454–459, 526–549 identification of, 453 external, 568 foreign sources of, 460 official resources for, 572 private funds for, 572 reserve assets for, 571, 572 Fines, 300 Fiscal policy. See also Monetary policy objective of, 579 Fish, 208 Fishing licenses, 300 Fishing vessels, 209 Flags of convenience, ships flying, 81 Floating exchange rates, 559 Floating rate bonds, 390 f.o.b. valuation, 219, 222, 225, 228 Foreign currency, sale of domestic currency for, 587 Foreign exchange, 258, 330, 442. See also Exchange rate(s) Foreign exchange assets, 180, 424, 442. See also Reserve assets held by monetary authorities, 432, 433 liabilities, 313, 340 valuation of, 473 Foreign exchange holdings, availability for use, 431 Foreign exchange market intervention, 587 for exchange rate appreciation, 586 Foreign general government, 87 Foreign sector, 334 Foreign securities, 486, 487 Foreign sources of financing, 460 Forwarding. See Distributive services Forward rate agreements (FRAs), 408 Franchises, 312, 358 FRAs. See Forward rate agreements Freight insurance, 158, 162, 187, 230, 255, 256 Freight services, 187, 233–238. See also Transportation fuels, 201 Fuels, 156, 201 Fund (IMF). See International Monetary Fund Futures contracts, 392, 407 valuation of, 470 Gains and losses, holding, 285 Gas, 215 Gas drilling rigs, 208, 209 GDP. See Gross domestic product General government, 85–89, 333, 515 foreign, 87 General government transfers, 298, 299, 347–350 General merchandise, 153, 195, 199, 353. See also Goods definition of, 196 exports of, 199 General Resources Account (GRA), 441 Geographic territory, 21, 59 Gifts, 13, 215, 303 large, 357 of military equipment, 298 for relief efforts, 298, 303 Gift taxes, 350, 357 Global statement, 479, 492 GNDY. See Gross national disposable income Gold held as store of value, 184, 202, 438 industrial (other), 184, 202 monetary, 180, 214, 330, 424, 431 classification, 438 definition, 438, 438n regional allocation, 489 valuation, 444, 473 monetization/demonetization of, 3, 310, 436, 439 nonmonetary (commodity), 157, 184, 195, 208, 215 classification, 438 definition, 202 reclassification, 439 Gold swaps, 434 Goods, 127, 152, 153–157, 184, 185, 195–229. See also Change of ownership; specific types classified under other items, 211–214 on consignment, 127, 218 coverage and principles, 195 definitions, 196–202 exports, 114, 508 exclusions, 209–210 inclusions, 208 external account of, 507 general merchandise, 153, 195, 196, 199, 353 imports, 114, 508 exclusions, 209–210 inclusions, 208 lost or destroyed, 208, 209 for processing, 120, 154, 195, 196 exceptions, 199 procured in ports, 156, 195, 201, 230 repairs on, 155, 195, 200 salvaged, 208 services items, 212–213 smuggled, 215 special types, 215 time of recording adjustments for, 114–118, 204 transferred under financial leases, 93, 119, 316 time, 250–251 treated as financial items, 214 Government(s) employees, 70, 243, 246, 248 exports and imports, 215 general, 85–89, 298, 299, 333, 347–350, 515 payments for salaries, 298 personnel, 159, 215, 243 policy actions aimed at achieving surplus, 584–585 purchases abroad, 208 regular transfers by international organizations to, 298 Government agencies general, 85 unclassified, 86 Government-controlled savings banks, 516 Government enclaves, 70 Government enterprises, 77 unincorporated, 77 Government securities, 442 Government services, 159, 168, 212, 243, 266, 524 GRA. See General Resources Account Grants from Fund subsidy accounts, 453, 535 intergovernmental, 453, 535 investment, 349, 357 Gross domestic product (GDP), 48, 53 Gross external debt, definition of, 474n Gross national disposable income, 53, 552, 553 Gross recording, 271, 325, 511 current account, 192–193 Gross saving, 53, 566 Guide. See Balance of Payments Compilation Guide Harbor fees, 240 Harbors, repairs of, 230 Haulage, 240. See also Distributive services Health-related transactions. See Personal, cultural, and recreational services; Travel Hedging, 258, 393 Highway vehicles. See Mobile equipment Holdings foreign exchange, 431 gains and losses, 285 Households, 517 residence of, 66 IBRD obligations. See World Bank obligations Immigration offices, 59 Immovable assets, 316 Implicit taxes and subsidies. See Multiple official exchange rates Imports of goods, 114, 508 exclusions, 209–210 inclusions, 208 government, 215 returned, 209 of services, 508 temporary, 209 Imputed income, 274, 281 Imputed transactions, 31 Income, 152, 169–170, 190, 267–290. See also Compensation of employees; Earnings coverage, 267–268 on debt, 279, 280 definition and classification, 269–281 direct investment, 170, 276–279 distributed, 277 dividends, 274, 282, 284, 290 on equity, 274, 277, 280 external account for, 507, 509 extraordinary, 285 imputed, 274, 281 interest, 282 investment, 5, 170, 190, 267, 268, 316 classification, 275, 281 definition, 274 and international investment position, 475–476 time of recording, 282–284 types of, 274 primary, 507, 509 property, 274, 509 regional allocation principles, 481 taxes on, 122 workers’, 267 Income account, time of recording, 121 Indemnity payments, 299 Indexed bonds, 390 Index-linked securities, 397 Individuals residence of, 66–72 resident, 67, 69 with several international residences, 72 Industrial gold, 202 Information or immigration offices, 59 Information services, 164 Infrastructure investment, 578 Inheritances, 303 Inheritance taxes, 350, 357 Institutional units, resident, 58, 65 Instruction services. See Personal, cultural, and recreational services Insurance direct, 255 freight, 158, 162, 187, 230, 255, 256 life, 257 non-life, 257 premiums and claims for, 304 technical reserves, 257, 257n Insurance companies, 517 Insurance enterprises, 379 Insurance services, 158, 162, 187, 255, 256 international, 257 memorandum items, 257 Intangible assets, 358. See also Acquisition/disposal of non-produced, nonfinancial assets; Royalties Integrated economic accounts, 45–56 algebraic summary, 53 Intercompany claims and liabilities, 270 Intercompany transactions, 372 Interest, 316 arrears of, 458, 528 cash settlements of, 530 Interest charges, on late tax payments, 300 Interest income, time of recording, 282 Interest rates, 564 Interest rate swaps, 392, 405 Intergovernmental grants, 453, 535 Intermediary service fees, 258 International Financial Statistics, 442 International investment position, 55, 181, 461–477 adjustments, 383 classification, 464–466 concept and coverage, 461–463 conceptual framework, 12–33 investment income and, 475–477 net, 55, 462, 474, 562 rates of return and, 476–477 relation to external debt, 474 uses of data, 7–10 valuation of components, 467–473 International Monetary Fund (IMF) credit and loans from, 413, 415, 419 grants from subsidy accounts, 453, 535 International organization(s), 88 contributions to, 298, 303 employees or staff, 67, 246 nonmonetary, subscriptions to, 422, 432 payments for salaries, 298 residence, 497 International transactions in services classification scope, 518 structure and coding system, 519–520 Inventories, 214 Investment. See also Direct investment; Portfolio investment classification, 332, 412–413, 465 coverage, 411 cross-border, 330 definitions and recording, 414–423 domestic sectors, 333 in equity and debt securities, 330 functional types, 330 infrastructure, 578 long-term, 336–339 other, 176, 179, 274, 330, 411–423 profitability of, 564 reverse, 371 short-term, 336–339 types of, 332 Investment grants, 349, 357 Investment income, 5, 170, 190, 267, 268, 316 classification, 275, 281 definition, 274 and international investment position, 475–476 time of recording, 282–284 types of, 274 Investment trusts, 388 Issue price, 283 Issues, placements of, 258 Joint enterprises, 82 Joint military arrangements, 266 Labeling. See Processing Labor income. See Compensation of employees Land, 214, 358 ownership of, 316 Land transactions, 51, 312 for noncommercial purposes, 273 LCFARs. See Liabilities constituting foreign authorities’ reserves Leases, 312, 358 financial, 206, 239, 258, 267, 417 goods transferred under, 93, 119, 316 nonfinancial, 209 operational, 80, 209, 239, 263 resident/nonresident, 263 Legacies, 357 Legal services, 264 Letters of credit, 258 Liabilities, 372, 413, 423 assets and, 331 direct investment, 371 external, 505 financial, 149 financial external, 133, 136 foreign, 313 intercompany, 270 other, 413 reclassification of, 32 stocks of regional allocation principles, 484 valuation of, 107–108 Liabilities constituting foreign authorities’ reserves (LCFARs), 340, 446, 447n, 447–450 classification of, 448 identification of, 445, 450 License fees, 165, 260, 300 Licensing agreements. See Intangible assets; Royalties Life insurance, 257. See also Insurance services reserves, 388 Lighterage, 240. See also Distributive services Lines of credit, 258 Liquidating dividends, 290 Livestock, 215 Loading charges, 233 Loading services, 225 Loan drawings, 123 Loan repayments, 123 Loans, 413, 415, 423. See also Debt cancellation of, 472 classification of, 316 direct, long-term, 432 forgiveness of, 472 from IMF, 413, 415, 419 recording, 416 rescheduling, 472 valuation of, 471 Local governments. See General government Locally recruited staff, 67 Long-term investment, 336–339 Losses, 285 Lost or destroyed goods, 208, 209 Lotteries, 303 Machinery, 349 Mail, 160, 253 Maintenance, 201, 240 Managed floats, 559 Management consulting services, 264. See also Business services Marine insurance. See Insurance services Marine products, 208 Market exchange rate(s), 132, 133, 137–138, 503 Market price, 98, 99, 376, 377, 444, 467n, 501 concept, 91 definition, 92 equivalents, 95–96, 98, 102, 103 transactions and, 92 Market research services, 264 Market transaction, 92 Market valuation, 97, 220 Maturities, 337, 390, 391, 396 Medical patients, 71, 159, 243, 244 Membership dues, 298, 303 Merchandise. See General merchandise; Goods Merchanting, 213, 262 Midpoint spot rate, 503 Migrants, 272, 302 effects, 215 transfers, 352–355 Migration, 29–30 Military agencies and establishments, 85, 86, 87 bases, 59 personnel, 70, 159, 243 Military equipment, 349 gifts of, 298 Military shipments, 209 Mining, 264, 383 Mobile equipment, 80–82, 208, 209. See also Transportation equipment Monetary authorities, 333, 514 foreign assets held by, 432, 433 Monetary gold, 180, 214, 330, 424, 431 classification, 438 definition, 438, 438n regional allocation, 489 valuation, 444, 473 Monetary policy, 579, 580, 584–585 objective of, 579 Monetization/demonetization of gold, 3, 310, 436, 439 Money. See also Currency; Deposits paper and coin, 214, 215, 420 Money market funds, 389 Money market instruments, 387, 442 Money market securities, 391 Mortgages, 390, 415 Motor vehicles. See Mobile equipment Multilateral settlements, regional allocation, 491–492 Multiple exchange rate system, 131 Multiple official exchange rates, 134–136, 138, 504 Multi-year arrangements, 454 Mutual funds, 388 National accounts. See System of National Accounts National frontiers, 203 National wealth, 55 Natural resources depletion of, 285 exploration of, 264, 383 Navigational aid services, 240 Need, balance of payments. See Balance of payments Net capital transfers, 50 Net creditor (label), 474 Net debtor (label), 474 Net equity in life insurance reserves, 388 Net errors and omissions, 146–148 Net foreign investment, 53 Net international investment position, 55, 462, 474, 562 Net lending/net borrowing, 510 Net recording, 319–320, 324–327, 375, 511, 527 Net worth, 55, 462 New financial instruments, 177 New money facilities, 548–549 Newspapers, 212 NIFs. See Note issuance facilities Noncommercial transactions, 104–105 Nonfinancial assets, 214 Nonfinancial corporations, 517 Nonfinancial leases, 209 Nonmonetary gold. See Commodity gold Nonmonetary international organization(s), subscriptions to, 422, 432 Nonproduced, nonfinancial assets. See Acquisition or disposal of nonproduced, nonfinancial assets Nonprofit institutions (NPIs), 76 nonresident, 357 private, 517 residence of, 84 Nonprofit organizations, 86 Note issuance facilities (NIFs), notes issued under, 391, 399, 400 Notes, 387, 389, 390, 420, 442 issued under NIFs, 391, 399, 400 recording, 400 short-term, 391, 398, 399 NPIs. See Nonprofit institutions Obsolescence, 285 OECD Detailed Benchmark Definition of Foreign Direct Investment (BMD), 360, 363 Official exchange rates, 137, 138 multiple, 134–136, 138, 504 Official resources, for financing, 572 Official transactions, 266 Official travel, 246, 248 Offshore enterprise(s), 79, 381 Offshore installations, goods consumed in resident-owned, 208 Oil, 588n Oil drilling rigs, 208, 209. See also Mobile equipment Omissions. See Net errors and omissions On-site processing, 199, 264, 524 Operational earnings, 285 Operational leases, 80, 209, 239, 263 Option price, 401 Options, 258, 315, 389, 392, 401, 402 valuation, 470 Other business services, 166, 212, 230, 254, 261, 267 Other investments, 176, 179, 274, 330, 411–423. See also specific types of instruments recording, 414–423 Other services, 189, 252–266 Overall balance, 566n Ownership. See Change of ownership Packaging. See Processing Packing, 240 Paper, financial, 391 Paper money, 214, 215 Parallel market rates, 137–138 Parcel post, 215 Passenger fares, 232 Passenger services, 232 Passport fees, 300 Patents, 312, 358 Payments agreements balances, 432 Peacekeeping forces, transactions associated with, 266 Penalties on late tax payments, 300 Pension funds, 86, 388, 517 Pension payments, 299 Pension plans, 303 Periodicals, 212 Personal, cultural, and recreational services, 167, 244, 265 Personal effects, 232 Personal travel, 249 Personnel. See also Employees government, 159, 215, 243 military, 70, 159, 243 Pilotage, 240 Placements of issues, 258 Policy. See Monetary policy Portfolio investment, 6, 178, 330, 339, 385–410 benefits, 361 classification, 176, 332, 387–394, 465 coverage, 385–386 definitions, 387–394 domestic sectors, 333 income, 170, 280 recording, 395–408 valuation, 409–410, 468 Ports, goods procured in, 156, 195, 201, 230 Port services, 240 Position. See International investment position Postal and courier services, 160, 253 Post office savings banks, 516 Postpayments, 118 Precious metals and stones, 215 Preferred stock(s) or share(s), 388, 390 Premium price, 400 Premiums, for non-life insurance, 304 Prepayments, 118 Prices. See Market price; Transfer prices; Valuation Primary incomes, external account for, 507, 509 Principal rate, 135 Private corporations, 517 Private enterprise(s), 76 Private funds for financing, 572 Private nonprofit institutions, 517 Processing, 198, 199. See also Goods on-site, 199, 264, 524 Production, attribution of, 78–79 Professional services, 166, 264 Profitability, 564 Profits. See also Earnings; Reinvested earnings distributed, 277 Promissory notes. See Securities Property income, 274, 509 Public corporations, 77, 517 incorporated, 76 Public enterprise(s), 76, 362 Public relations services, 264 Purchase price, 402 Purchases abroad, 208 Put option, 401 Quasi-corporation(s), 74, 517 Railway facilities repairs, 230 Railway rolling stock, 208. See also Mobile equipment Rates of return factors affecting, 564 and international investment position, 476–477 Real estate investment. See also Direct investment private, non-business, 382 Real resources, 18 Reclassification, 32, 374 of gold, 439 Recording. See also Time of recording gross, 192–193, 271, 325, 511 net, 319–320, 324–327, 375 Recreational services. See Personal, cultural, and recreational services Redemptions, 258 Refinancing, 457, 545–547. See also Exceptional financing Refunds, tax, 299 Regional allocation, 485–492, 496–498 analytical implications, 493–495 multilateral settlements, 491–492 principles, 481n, 481–484 problems and limitations, 485–492 Regional central banks, 90 Regional statements, 478–498 Reinsurance, 255, 257 Reinsurance services, 162. See also Insurance services Reinvested earnings, 31, 277, 278, 321, 369 recording, 284, 288 Rentals. See also Leases of transportation equipment with crew, 239 of transportation equipment without crew, 230, 263 Repacking, 240 Repairs, 524 on goods, 155, 195, 200 of railway facilities, harbors, and airfield facilities, 230 of transportation equipment, 230 Repayment(s), 454 advance, 454, 544 of arrears, 453 debt, 316 loan, 123 Repos. See Repurchase agreements Repurchase agreements, 391, 415, 418 Rescheduling, 457, 545–547. See also Exceptional financing Research and development services, 264 Reserve assets, 32, 180, 181, 330, 339, 424–445 adjustments, 436 availability for use, 431 classification, 432–435, 437–443, 450, 465 concept and coverage, 424–425 effective control of, 428–430 for financing, 571, 572 identification, 426–435, 445, 450 interpretation of changes in, 445 liabilities. See Liabilities constituting foreign authorities' reserves other claims, 442 reclassifications, 310 second-line, 425 special cases, 432–435 valuation, 310, 436, 444, 473 Reserve position, 180, 330, 424, 431, 441 valuation of, 473 Reserve tranche purchases, 441 Residence, 21–22, 496 concept of, 57–58 considerations for, 565, 565n definition of, 58 of enterprises, 73–83, 231 of households and individuals, 66–72 of nonprofit institutions, 84 Resident individuals, 67, 69 Resident/nonresident leasing, 263 Resident/nonresident transactions, 312, 358 Resident units, 39, 57–90, 500 Residual items. See Net errors and omissions Rest of the world account, 36 and balance of payments accounts, 499–511 linkages, 506–511 Returned exports and imports, 209 Returns, trade, 215 Revaluation. See Reclassification Reverse investment, 371 Risk, factors affecting, 564 Royalties, 165, 260 Salaries, 298. See also Compensation of employees Salvaged goods, 208 Salvage operations, 240 Samples, 209 Saving, domestic. See Gross saving Savings and loan associations, 516 Savings banks, 516 Savings deposits, non-transferable, 421 Scholarships, 244 Scientific stations, 59 SDRs. See Special drawing rights Seasonal adjustments, 433 Seasonal workers, 67 Secondary instruments, 389, 392 Sectors, 333, 512–517 banking, 516 domestic, 333–335 foreign, 334 other, 351–357, 517 Securities, 214, 215, 268, 387. See also Bonds; Debt securities domestic, 485, 487 foreign, 486, 487 index-linked, 397 net recording of, 324 regional allocation of transactions, 485–488 reserve assets, 442 Seizures. See Expropriation Service charges, 258, 258n, 402, 410 indirectly measured financial intermediation, 508, 509 Services, 121, 152, 158–168, 185, 186, 252–266. See also specific types classification, 212–213, 252, 518–520 coverage, 252 definitions, 253–266 external account of, 507 international, 518–520 other, 189, 252–266 regional allocation principles, 481 time of recording, 502 Settlements, cash, 530 Shares, 388, 421. See also Equity securities preferred, 388, 390 Shipboard expenditures, 232 Shipments, 158, 187, 224, 226 military and diplomatic, 209 unrecorded, 215 Shipping services, 224 Ships, 208, 217, 262 flying flags of convenience, 81 Short-term investment, 336–339 Silver bullion, 215 Sinking funds, 314 Smuggled goods, 215 SNA. See System of National Accounts Social benefits, 299 Social security, 86, 304 Souvenirs, 251 Special drawing rights (SDRs), 180, 330, 424, 431, 440 allocation/cancellation of, 3, 310, 436 regional allocation of, 489 valuation of, 102, 473 Special purpose entities (SPEs), 79, 365, 372 transactions through, 373 SPEs. See Special purpose entities Staff. See also Employees; Personnel of international organizations, 67 locally recruited, 67 Stage and circus equipment, 209 Standard components, 143–145 State government. See General government Statistical discrepancy (label), 147 Stock(s), 388. See also Equity securities of assets and liabilities, 35, 505 regional allocation principles, 484 valuation of, 444 conversion of, 133, 136 of goods abroad, 207, 213 preferred, 388, 390 valuation of, 107–108, 376–377 Stock dividends, 274, 290 Stock warrants. See Warrants Storage, 201, 240 Strike price, 401 Structures, 214 ownership of, 316 Students, 71, 159, 244 Subscriptions to international organizations, 432 capital, 422 Subsidiaries, 362, 384 Subsidies, 134, 453 Subsoil assets, 312, 358 Supplementary information, 384, 446–460 Supporting services, 240 Support remittances, 303 Surplus. See Current account surplus Swaps, 258, 405, 434 currency, 392, 405, 434, 470 debt/bond, 536–538 debt/equity, 456, 539–543 gold, 434 interest rate, 392, 405 recording, 406 System of National Accounts (SNA), 4, 34–56 accumulation accounts, 45, 47 balance sheet accounts, 45, 54, 55 capital account, 47, 50, 52, 511 comparison with balance of payments, 38–44 current (transactions) accounts, 45, 46 financial account, 47, 50, 52, 511 financial intermediation charge indirectly measured, 258n, 508, 509 integrated economic accounts, 45–56 rest of the world account, 36 and balance of payments accounts, 499–511 System of National Accounts 1993 (SNA), 5, 23, 24, 360, 362 T-accounts, 45 Tax(es), 300, 304 analysis of higher taxes, 555 on capital transfers, 350, 357 considerations, 564 gift, 350, 357 on income, 122 inheritance, 350, 357 refunds, 299 side effects of, 578 Tax payments, 93 fines, penalties, or interest charges on late payments, 300 Teachers’ fees, 244 Technical services, 166, 264 Telecommunications, 160, 253 Temporary exports and imports, 209 Territory economic, 21–22, 39, 59–61 enclaves, 59, 60, 61 geographic, 21, 59 Theatrical equipment, 209 Time charters, 239 Time deposits, 421 Time of recording, 41, 109–127, 502. See also Change of ownership adjustments to goods, 114–118, 204, 216–218 other, 124–127 to other transactions, 121–123 to transportation services, 233–238 capital and financial account, 341–342 current account, 194 of current transfers, 307 of investment income, 282–284 principle of, 24, 109–113 Tourism, definition of, 241n Tourists, 243 Towing, 201, 239, 240 Trade. See also Goods; Services direct transit, 209 Trade credits, 413, 414, 416 Trademarks, 312, 358 Trade-related services, 262. See also Merchanting Trade returns, 215 TRANB. See Current transfer balance Transaction(s), 3, 13, 318. See also specific types classification, 43 definition, 13 imputed, 31 and market price, 92 types, 25–31 valuation, 91–106 Transactor principle, 482 analytical implications, 493–494 Transferable contracts, 358. See also Leases Transfer prices, 97–103, 99 Transfers, 13, 18, 28, 150, 171. See also Capital transfers; Current transfers regional allocation principles, 481 unrequited. See Grants Transit trade, direct, 209 Transportation, 156, 187, 227, 230–240 conventions for recording, 233–238 definition and coverage, 230–231 supporting and auxiliary services, 240 Transportation equipment, 209, 349. See also Mobile equipment maintenance and cleaning of, 240 rentals with crew, 239 without crew, 230, 263 repairs of, 230 Transportation fuels, 156, 201 Transportation services, 158, 159, 200, 224 Travel, 159, 188, 192, 212, 241–251, 524 business, 246–248 definition of, 241n, 242–244 goods and services covered, 250–251 nature of, 241 official, 246, 248 personal, 249 types of, 245–249 Traveler(s), 67, 159, 241 business, 246 definition of, 241n, 243 same-day, 243 Treasury bills, 391 Trusts, investment, 388 Underwritings, 258 Undistributed profits. See Reinvested earnings Unitary rate, 135 Unit of account, 128, 129–131 Valuation, 40, 501 in absence of market price, 93–94 capital and financial account, 341–342 current account, 194 of current transfers, 306 of debt/equity swaps, 543 of debt forgiven, 534 of direct investment, 376–377, 467 of financial derivatives, 469 of financial items, 106 of goods, 219–229 of international investment position components, 467–473 market, 97, 220 point of, 221–229 of portfolio investment, 409–410, 468 principles of, 23–24 of reserve assets, 444 of SDR, 102 of stocks, 107–108 of transactions, 91–106 Valuation changes, 33, 466 in assets, 310 of portfolio investment, 409 in reserves, 310 exclusion of, 436 Value date, 123, 342 Visitor(s), 67. See also Traveler(s) definition of, 241n Wages. See Compensation of employees; Salaries Warehousing, 240 Warrants, 392, 403 valuation, 470 Water, 215 Wealth, national, 55 Workers, 67. See also Employees; Migrants border, 67 income of, 267, 269 remittances by, 302 seasonal, 67 Working balances, 433 World Bank obligations, 432 World current account discrepancy, 581n Write-offs, 285, 310. 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a99caf7ac6e419c40c02f917c9aa75b117bb79eb	LONDON COUNCILS EUROPEAN SOCIAL FUND BOROUGH EMPLOYMENT PROGRAMME 2016-2018 Application Prospectus 9th December 2016 Deadline for applications: 12 noon, 23rd January 2017 www.londoncouncils.gov.uk # Contents 01. Introduction ........................................................................................................... 3\ The European Structural Investment Funds ................................................................. 3\ ESF Investment Priorities ............................................................................................ 4 02. Project Specifications ............................................................................................ 7\ Specification 1 - Haringey ............................................................................................ 7\ Specification 2 - Hounslow: Digital, Media, Tech and Creative Skills Project .......... 15\ Specification 3 - Merton ............................................................................................. 26\ Specification 4 Wandsworth – Older Workers Employment Network ....................... 32 03. Participant Target Groups ..................................................................................... 35\ Core Project Requirements ......................................................................................... 36 04. Project activities, outputs and results .................................................................. 38\ Outputs and Results for payment ............................................................................... 39 05. Added value .......................................................................................................... 42 06. Partnership working .............................................................................................. 44 07. Submitting an application ..................................................................................... 45 08. Horizontal Principles (Formerly Cross Cutting Themes) .................................... 57 09. Monitoring and reporting on your project ............................................................ 61 10. Financial information .......................................................................................... 62 11. Publicity arrangements ....................................................................................... 63 12. Appeals ............................................................................................................... 66 13. Payment arrangements ....................................................................................... 67 14. Contacts .............................................................................................................. 68 15. ESF Programme Guidance Documents ............................................................... 70 Annex A .......................................................................................................................... 71 1. Introduction Welcome to the prospectus for the London Councils European Social Fund (ESF) Borough Programme 2016-2018. London Councils’ ESF Borough programme is part of the European Structural and Investment funds (ESIF) Growth strategy¹ for England in 2014-2020. The European Structural Investment Funds The European Structural and Investment Funds (ESIFs) are the European Union's main funding programmes for supporting growth and jobs across EU member states. They form a small but important part of the UK Government’s overall growth activity. In England, for 2014 to 2020 the programmes consist of the European Regional Development Fund (ERDF), European Social Fund (ESF) and part of the European Agricultural Fund for Rural Development (EAFRD). These have been brought together into a single Growth programme with individual operational programmes aligned to maximise support for jobs and growth. The Growth Programme is delivered across England’s 39 Local Enterprise Partnership (LEP) areas, each of which has an ESIF Strategy to support local delivery. The £6 billion funds within the Growth Programme have been notionally distributed to LEP areas. ERDF can fund activity such as support to SMEs, ICT, Low Carbon and research and innovation. ESF supports employment, skills and social inclusion. The London 2014-2020 ESIF Strategy² sets out the key areas for ESF investment in London and aligns to the London Enterprise Panel’s (LEP’s) three skills and employment themes: promoting sustainable employment and progression outcomes, ensuring individuals and employers are better informed to drive the skills and employment system and engaging with London’s businesses to help drive growth in the Capital. ESF in London is managed by the Greater London Authority’s (GLA) European Programmes Management Unit (EPMU) who has been designated by Government as an Intermediate Body for ESF and ERDF. The LEP, through the GLA, London Councils and other local partners, have developed a range of ESF provision to meet local needs. There are five ESF Co-Financing Organisations for 2014-20 in London. They are: - Greater London Authority - Skills Funding Agency - Department for Work and Pensions (DWP) - Big Lottery - National Offender Management Service (NOMS) ¹ https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/461596/ESF_Operational_Programme_2014_2020_V.01.pdf ² https://lep.london/publication/european-funding-strategy-2014-20 ESF Investment Priorities The 2014-2020 ESF Programme has two main Priority Axes, each with a number of Investment Priorities: Priority Axis 1 – Inclusive Labour Markets Priority 1.1 Access to Employment for Job-Seekers and Inactive People - Improving the employability and skills of the unemployed and economically inactive people Priority 1.2 Sustainable Integration of Young People - Employment and Skills activities targeted at young people who are not in education, employment or training (NEET) or at risk of becoming NEET Priority 1.3 Youth Employment Initiative - This will focus on helping young people, particularly those not in education, employment or training (NEET) to participate in the labour market and learning in areas eligible for the Youth Employment Initiative. Priority 1.4 Active Inclusion - To address the root causes of poverty which creates barriers to work so more people move closer or into employment Priority Axis 2 – Skills for Growth Priority 2.1 Enhancing Equal Access to Lifelong Learning Priority 2.2 Improving the Labour Market Relevance of Education and Training Systems For more details please see the 2014-20 Operational Programme at [https://www.gov.uk/government/publications/european-social-fund-operational-programme-2014-to-2020](https://www.gov.uk/government/publications/european-social-fund-operational-programme-2014-to-2020) The London Councils’ ESF Borough Employment Programme - Priority 1.1 – Access to Employment for Job-Seekers and Inactive People The London Councils ESF Borough Employment Programme 2016-18 will focus on delivering the strategic objectives of ESF Priority 1.1 – Access to employment for Job-Seekers and Inactive People. This Programme will specifically fund projects that will assist individuals who are disadvantaged to tackle their barriers to work and sustainable employment. Such activities should include help to identify the barriers individuals face in moving into work (for example; confidence, lack of recent work experience, basic skills, job seeking and job-related skills, or other material barriers like debt) and working with them to tackle these barriers. For this Programme, London Councils and the participating boroughs of, Haringey, Hounslow, Merton and Wandsworth welcome applications for grants from organisations and partnerships to deliver projects strategically aligned with ESF Priority 1.1 and can show links with other programmes supporting these Priorities. This is part of a wider London Councils ESF Programme. The projects (listed in Table 1 below) should be innovative and add value to the mainstream provision. The Programme will focus on people that are economically inactive and long term unemployed. In this way, the London Councils ESF Borough Employment Programme 2016-2018 can help the London boroughs contribute towards national indicator targets for employment and poverty by targeting workless people. This Prospectus sets out the borough specific projects as well as the criteria and conditions for potential providers applying for this grant funding. Projects will be funded between the dates specified on each individual specification. Please note that projects will start no earlier than 12 March 2017. Table 1. London Councils ESF Borough Employment Programme 2016-2018 Projects \| Borough(s)/Consortium \| Project Name \| Funding Value \| \|-----------------------\|--------------------------------------------------\|---------------\| \| Haringey \| Single Borough Employment Project \| £462,500 \| \| Hounslow \| Digital Media, Technical and Creative Skills \| £175,400 \| \| Merton \| Single Borough Employment Project \| £337,533 \| \| Wandsworth \| Older Workers Employment Network \| £138,750 \| \| Total \| \| £1,114,183\| - Please note: The value of each project may potentially increase if sufficient borough funding and ESF funding is available. PROJECT SPECIFICATIONS 2. Project Specifications Specification 1 - Haringey Introduction to the borough Haringey is one of London's 33 boroughs, located in the north of the capital and more than 11 square miles in area. The borough has levels of deprivation that are characteristic of many Inner London boroughs, illustrated by the fact that 19% of its lower layer super output areas (LSOAs) are amongst the 10% most deprived in England compared to 6% of LSOAs across London as a whole. This extends to labour market deprivation where Haringey has levels of employment that are generally lower than those in London and England and also disproportionate numbers of people claiming out of work benefits. This disproportionality also has a geographic dimension with 63% of people claiming out of work benefits living in the Tottenham parliamentary constituency. Haringey Council is committed to developing and growing the local economy, and in 2015 published an Economic Development and Growth Strategy that sets out some long-term aims to achieve the following by 2030: A Fully Employed Borough, by which we mean: - 75% of Haringey’s working age population is in work. - Residents’ full time earnings are in line with London averages for bottom quartile and median earners. - The proportion of working age residents qualified to NVQ Levels 3 and 4 is increased from 65% (2013 figures) to 70%. A More Dynamic Borough, by which we mean: - The number of jobs in Haringey has increased by 20,000 from the 2011 London Plan baseline position. - The profile of Haringey-based jobs changes so that retail and public sector employment are less dominant, and there is a better range of jobs, including a greater proportion of jobs in more highly-skilled sectors, such as sustainable technology, digital design and skilled/craft manufacturing. - The number of jobs per square metre of employment land has increased by 20%, reflecting a shift to more intensive and productive employment. The Council is also committed to regenerating Tottenham and has in place a number of ambitious plans aimed at creating more than 5,000 jobs and 10,000 new homes, as well as nearly 1 million square feet of new employment space by 2025. In March 2014, the Strategic Regeneration Framework (SRF) for Tottenham was published and set out seven key changes needed for Tottenham to achieve its potential: 3 Indices of Deprivation 2015: http://data.london.gov.uk/dataset/indices-of-deprivation-2015 4 Out of work benefits, August 2015: www.nomisweb.co.uk 5 The Economic Development & Growth Strategy can be accessed from: http://www.haringey.gov.uk/business/economic-regeneration/economic-regeneration-growth-strategy 6 The Strategic Regeneration Framework for Tottenham can be accessed from: http://www.haringey.gov.uk/regeneration/tottenham/tottenham-regeneration 1. World-class education and training – including new schools, better access to apprenticeships and more Tottenham young people attending university. 2. Improved access to jobs and business opportunities – attracting major investment and encouraging local business growth to boost employment. 3. A different kind of housing market – improving existing homes and building new, highquality homes to meet demand at a range of prices and tenures. 4. A fully connected community with even better transport links – continuing to improve rail, Tube and bus links, including making the case for Crossrail 2, as well as opening up Tottenham to more walking and cycling routes. 5. A strong and healthy community – improved healthcare facilities, reduced crime and strong social networks for young people. 6. Great places – putting Tottenham’s character and heritage centre-stage while creating better public spaces to meet, shop and have fun. 7. The right investment and quality development – building partnerships and securing money to achieve these priorities with a focus on high quality design. The Council and the Greater London Authority (GLA), through the Mayor’s Regeneration Fund for Tottenham, have been bringing forward investment to help local people into employment, in line with the ambitions set out in the Tottenham SRF, and the activities commissioned through this specification will be one of a series of projects in place to support the borough’s regeneration ambitions. In March 2015, (GLA funded) Haringey Employment Support Project (HESP) was launched, which aims to support unemployed and economically inactive people into sustained employment, and people in low-paid work to progress in work. HESP will be delivered until March 2017 so there will be some crossover with the project that is commissioned through this specification. As such, the delivery provider(s) for this project will need to work with the HESP provider to ensure that, for the crossover period, activities are complementary. The Council has also had a historic commitment to tacking worklessness in the borough and has in place an in-house employment service, the Haringey Employment and Skills Team (HEST). This project will be expected to work in partnership with HEST, where appropriate. In addition, this project will be expected to work in partnership with current and future providers delivering other employment projects in the borough, where appropriate. Strategy Below are links to information and a number of documents that set out the strategic approach to economic development across Haringey: Corporate Plan 2015-2018 http://www.haringey.gov.uk/local-democracy/policies-and-strategies/corporate-plan-2015-18 Early Help Strategy http://www.haringey.gov.uk/sites/haringeygovuk/files/early_help_strategy.pdf Economic Development and Growth Strategy http://www.haringey.gov.uk/business/economic-regeneration/economic-regeneration-growthstrategy Education Excellence Policy http://www.haringey.gov.uk/sites/haringeygovuk/files/education_excellence_policy.pdf 8 Population Haringey’s population, according to latest estimates by the Office for National Statistics (ONS), is 267,500(^7). The population in Haringey has grown by 28% over the past 20 years and the Greater London Authority (GLA) projects further growth to take the population to over 296,000 by 2041(^8). Some 71% of people living in Haringey are aged 16-64, which is higher than the English average of 63%. Haringey also has a relatively young population with 52% of people being aged 20-49 compared to 41% of people across England. Haringey is also home to a significant ethnic minority population(^9) with 65% of residents coming from such a background compared to 55% in London and 20% in England. The main ethnic minority groups are: - Other White – 23% - Black African – 9% - Black Caribbean – 7%(^10) Labour market Worklessness has historically been a significant issue in Haringey. In the year to September 2015, 71% of the population aged 16-64 in Haringey was in employment, lower than the London and England rates of 72% and 74% respectively(^11). The European Commission’s Europe 2020 initiative is aimed at achieving a 75% ‘full employment’ rate across the European Union by 2020(^12). If that is to be achieved in Haringey then an additional 8,100 residents will need to find employment. ______________________________________________________________________ (^7) 2014 mid-year population estimates: [https://www.nomisweb.co.uk/default.asp](https://www.nomisweb.co.uk/default.asp) (^8) GLA 2014 Round Demographic Projections: [https://files.datapress.com/london/dataset/2014-round-population-projections/borough_SHLAA_DCLG_long_term_2014md.xlsx](https://files.datapress.com/london/dataset/2014-round-population-projections/borough_SHLAA_DCLG_long_term_2014md.xlsx) (^9) Definition of ethnic minority is the non-White British population. (^10) 2011 Census: [https://www.nomisweb.co.uk/default.asp](https://www.nomisweb.co.uk/default.asp) (^11) Annual Population Survey: [www.nomisweb.co.uk](http://www.nomisweb.co.uk) (^12) Further information about the Europe 2020 initiative can be found at: [http://ec.europa.eu/europe2020/index_en.htm](http://ec.europa.eu/europe2020/index_en.htm) Some 7% of people aged 16-64 in Haringey meet the International Labour Organisation (ILO) definition of unemployment(^\\text{13}), higher than the London and England rates of 6% and 5% respectively. Haringey has a high number of people claiming out of work benefits(^\\text{14}) with 11% (20,000 people) of residents aged 16-64 claiming such a benefit, at August 2015, higher than the London and England rates, which both currently stand at 9%. The two biggest out of work benefits claimant groups are people claiming the Employment & Support Allowance (ESA)/Incapacity Benefit (IB) and Job Seekers Allowance (JSA), who together make up 85% of all people claiming out of work benefits. At August 2015, 7% (12,360 people) of the population aged 16-64 in Haringey was claiming ESA/IB, higher than the London and England rates of 5% and 6% respectively. At January 2016, 2% (4,577 people) of Haringey’s population aged 16-64 was claiming JSA, on par with the comparable rates across London and England(^\\text{15}). Youth unemployment is a national issue with significant economic and social costs. An unemployed young person is more likely to: - Be unemployed and welfare dependent in later life with the average young unemployed person spending an extra two months per year out of work by their late twenties. - Earn £1,800-£3,300 less per year by their early thirties. - Be affected by mental and physical issues. - Get involved in anti-social behaviour(^\\text{16}). In Haringey, 3% (660 people) of young people aged 18-24 claim JSA, higher than the respective London and England rates (both 2%)(^\\text{17}). At December 2015, 4% (241 people) of young people aged 16-19 in Haringey were classified as being not in education, employment or training (NEET)(^\\text{18}), higher than the London rate of 3% and on par with the England rate. The education, employment or training status of 19% (1,567 people) of young people aged 16-19 is unknown, higher than the London rate of 10% and the England rate of 8%(^\\text{19}). Haringey is committed to tackling child poverty and, as part of this, increasing parental employment. According to figures from Her Majesty’s Revenue and Customs (HMRC), at August 2011, 32% of children live in a low income family(^\\text{20}), compared to rates of 27% in London and 20% in England(^\\text{21}). ______________________________________________________________________ (^{13}) Somebody is defined as being ILO unemployed if: they have actively looked for work in the last four weeks and are available to start work in the next two weeks; or they are out of work but have found a job and are waiting to start it in the next two weeks. (^{14}) Out of work benefits include: Job Seekers Allowance, Employment & Support Allowance, Incapacity Benefit, Severe Disablement Allowance, Income Support and Pension Credit (where the claimant is under State Pension age). (^{15}) ONS monthly claimant count data: [www.nomisweb.co.uk](http://www.nomisweb.co.uk) (^{16}) Source: ACEVO Commission on Youth Unemployment, 2012: [http://www.bristol.ac.uk/cmpo/publications/other/youthunemployment.pdf](http://www.bristol.ac.uk/cmpo/publications/other/youthunemployment.pdf) (^{17}) See note 10. (^{18}) Adjusted NEET figures (^{19}) NEET figures taken from the North London Client Caseload Information System (^{20}) Definition of a low income family is one that is in receipt of Child Tax Credit where the reported income is less than 60% of the median income or in receipt of Income Support or (Income-Based) JSA (^{21}) HMRC child poverty data: [https://www.gov.uk/government/statistics/personal-tax-credits-children-in-low-income-families-local-measure](https://www.gov.uk/government/statistics/personal-tax-credits-children-in-low-income-families-local-measure) Over the period January to December 2014, there were 72,000 households with at least one person aged 16-64 across Haringey. Some 53% (44,000 households) of these households had at least one adult not in work, higher than the London and England rates of 49% and 45% respectively. These households were home to 34,000 children under 16, representing 59% of all children living in Haringey\\textsuperscript{22}. Low educational attainment and low skills levels is a major national problem and goes some way to explaining why productivity in the UK still lags behind other industrialised countries. In London, just under 50% of jobs are currently filled by workers with NVQ level 4 and above (degree level and above) qualifications. GLA Economics projections show that by 2036 the demand for ordinary and higher degrees will have increased by 800,000, meaning that 53% of jobs will require such a qualification level; over this same time period the proportion of jobs with no qualifications will have fallen to less than 5%\\textsuperscript{23}. Locally, low skills amongst residents increase the chances of them being uncompetitive in the labour market. It will be important for this project to contribute to increasing the skill levels of participants as part of a pre-work and in-work support package. Over the period January to December 2014, 46% of people aged 16-64 living in Haringey had a NVQ level 4 or above qualification, lower than the London rate (46%), but higher than the England (36%) rate. Conversely, some 19% of people aged 16-64 in Haringey had low (NVQ level 1 or below) or no qualifications. While this is lower than the England rate (21%), it is higher than the London rate of 16%\\textsuperscript{24}. Haringey is characterised by its large micro business population. Some 84% of businesses in the borough employ less than 5 people compared to 80% in London and 77% in England. At the other end of the spectrum, 0.3% businesses in Haringey employ 100 or more people compared to 1% in both London and England\\textsuperscript{25}. There are currently 61,300 jobs across Haringey with the top 5 employment sectors being: - Public admin, education and health – 26% - Retail – 20% - Financial and other business services – 18% - Accommodation and food services – 8% - Transport storage – 7%\\textsuperscript{26} However, supporting local people into employment should not be restricted to jobs located in Haringey. The 68,100 jobs in the borough represent only around 1% of the total number of jobs available in London; also, in terms of jobs density, there are only 45 jobs for every 100 people (45/100) aged 16-64 in Haringey, compared to ratios of 93/100 in London and 80/100 in England. Therefore this project will also aim to help residents to access jobs outside of Haringey as well as within the borough. \\textsuperscript{22} Workless households for regions across the UK, 2014: \\url{http://www.ons.gov.uk/ons/publications/re-reference-tables.html?edition=tcm%3A77-414274} \\textsuperscript{23} GLA Economics – London labour market projections: \\url{https://www.london.gov.uk/what-we-do/business-and-economy/business-and-economy-publications/london-labour-market-projections} \\textsuperscript{24} Source: \\url{https://www.nomisweb.co.uk/default.asp} \\textsuperscript{25} ONS UK Business: Activity, Size and Location, 2015: \\url{http://www.ons.gov.uk/ons/rel/bus-register/uk-business/2015/index.html} \\textsuperscript{26} Source: \\url{https://www.nomisweb.co.uk/default.asp} Project Specification The project will be expected to support a minimum of 115 people in Haringey to achieve 26 (out of 32) weeks sustained employment by December 2018. The project will be delivered through one provider (or one lead organisation, where the successful project is being delivered in partnership with other organisations). The project will be expected to effectively target and engage with people furthest from the labour market by offering personalised and tailored support to help them into employment and progress in work. A specific focus will be placed on the following target groups that have been identified as having the highest levels of labour market deprivation: \| Target Group \| Minimum Percentage of Participants \| \|--------------------------------------------------\|-----------------------------------\| \| Parents (including lone parents) \| At least 25% \| \| Women \| At least 50% \| \| Young people (aged 19-24 and under) \| At least 20% \| \| People with a health condition or disability \| At least 10% \| \| Ethnic minorities \| At least 50% \| In addition to these target groups all participants must be either long term unemployed or economically inactive. The project will aim to complement existing provision so in all cases participants cannot be already on a mainstream employment programme, such as the Work Programme. Effective engagement of participants will be seen as a key element of this ESF project. As a result, successful bidders will be expected to offer support from a range of public and community venues across Haringey, including (but not limited to): - Children’s centres - Community centres - Customer service centres - GP surgeries - Housing offices - Jobcentres - Libraries - Schools In addition, delivery partners will need to set out how they plan to effectively engage with employers to source appropriate employment opportunities for participants, and to help people in low paid employment to progress. The project will be expected to work closely with the existing and future employment initiatives in Haringey and establish partnership protocols, where appropriate, that could include engagement with participants and employers. Bidders will also have to demonstrate experience and a proven track record of working in areas with high levels of labour market deprivation such as Haringey. Geographical targeting This employment project will be a Haringey-wide service but the expectation is that the various activities employed to engage project participants will be targeted to ensure that a minimum of 80% of project participants will live in the following wards. This is because these ward share at least one Lower Super Output Area\\textsuperscript{27} (LSOA) with an out of work benefits claim rate that is higher than the current (February 2015) Haringey wide borough average of 11%: \| Bruce Grove \| St Ann’s \| \|-------------------\|-------------------\| \| Harringay \| Stroud Green \| \| Hornsey \| Tottenham Green \| \| Noel Park \| Tottenham Hale \| \| Northumberland Park \| West Green \| \| Seven Sisters \| White Hart Lane \| \| Woodside \| \| \\textsuperscript{27} The Indices of Multiple Deprivation (IMD) is a long standing method used by the government to measure relative deprivation, rather than absolute change, across small areas of England called Lower Super Output Areas (LSOAs). Deprivation in these terms is used to cover a wide range of issues (or “domains”): Income; Employment; Health and Disability; Education, Skills and Training; Housing and Services; Crime; Living Environment. This specification will not prescribe the specific activities, beyond those set out in the outputs and results payment schedule below that will lead to the minimum core targets being achieved. The expectation is that bidders will propose proven and innovative approaches to delivering the project successfully. However, bidders should consider including the following activities as part of their delivery models: - Accredited vocational training - Basic skills - Confidence building/mentoring - CV building and interview techniques - Debt/financial management support (including Better Off Calculations) - Employer engagement and job brokerage - English for Speakers of Other Languages (ESOL) - Non-accredited training - Self employment support - Work placements \| Outputs for payment \| % Conversion \| No. of Participants \| Unit Cost \| Total \| Delivery Timescales \| \|---------------------\|--------------\|---------------------\|-----------\|-------\|---------------------\| \| Number of Starts \| 91% \| 340 \| £ 450.00 \| £153,000 \| 30/06/2018 \| \| Submission of Project evaluation report \| 1 \| £ 5,000.00 \| £5,000 \| 31/01/2019 \| \| Results for payment \| \| \| \| \| \| \| Number of participants in employment within 4 weeks of leaving the project \| 49% \| 185 \| £ 900.00 \| £166,500 \| 30/06/2018 \| \| Number of participants who have sustained employment for 26 weeks (out of 32) \| 62% \| 115 \| £ 1,200.00 \| £138,000 \| 31/12/2018 \| \| Maximum funding available \| \| \| \| £462,500 \| \| Introduction – Hounslow Borough Hounslow Council commissioned the Hounslow Skills and Employment strategy in 2014 which set out its commitment to improving the skills and life chances of the borough’s residents. The strategy was developed in response to the shifting wider economic and political context which was part of national skills reform with a sharper focus on economically viable skills led by employers, and a welfare reform system which focused on a stronger emphasis on claimants seeking employment. It was produced in consultation with local employers, skills providers, residents, and other key partners such as Jobcentre Plus. The strategy sets out a new approach to working with employers in the borough, to improve residents’ skills and access to the labour market. It followed on from the publication of Hounslow’s Local Economic Assessment [2011], and updates to this which were produced in 2013 and presented to members of Hounslow’s Economic and Business Forum and Hounslow’s Skills, Training and Employment Partnership. The strategy sits within in the framework of the Council’s Economic Development Strategy [2013] and wider regeneration plans. The strategy has four key aims which are: 1. To support local employment growth and enterprise through improving access to skills and reducing mismatch between demand and supply 2. Improving all young people’s achievement and progression into employment 3. Improving pathways into work for the unemployed and progression in work for low paid residents 4. Improving access to information, advice and guidance and labour market information The Skills and Employment team in partnership with partners work to deliver against the aims and specific targets within the strategy. Hounslow Council is proactive in the local employment and skills agenda and has a number of projects which are helping to support Hounslow residents into employment and apprenticeship opportunities. The Skills and Employment team were successful in securing European Social Fund [ESF] funding for the Digital, Media, Tech and Creative Skills Project, Working People, Working Places and the expansion of the Skills Escalator programme. These innovative projects aim to help support the employment and skills agenda in the borough with a focus on supporting some of the most disadvantaged and vulnerable residents. These projects are leading the way nationally in terms of shaping the thinking about service re-design, new methods of engaging with residents and tackling recurring barriers to employment and skills progression. The project will run for two-years and will aim to ensure adults aged 25 and over who are either long term unemployed or economically inactive are able to move towards securing employment opportunities with local businesses in Hounslow’s Digital, Media, Tech and Creative sectors either through obtaining relevant training/qualifications or direct employment. A successful project would aim to deliver against the targets set out in the project specification which would result in building a 'local talent pipeline'. Demographic Data Hounslow has a total population of 265,600 [Nomis, 2014] Projections from the GLA indicate that as of 2015 just over half (51.6%) of Hounslow residents are from black and minority ethnic (BAME) backgrounds. The largest non-white ethnic group in Hounslow is Indian [52,300], followed by Other Asian [30,100] and Pakistani [15,200]. In addition to white British and Irish residents, Hounslow’s white population also includes a substantial number of residents from other European countries, particularly EU accession countries such as Poland and Romania. Total working age population is 180,400 [Nomis, 2004] The number of residents who are economically inactive are 40,600 [22.4%] [Jan – Dec2015] The number of JSA claimants in the borough is 2375 [March 2016] Indices of Multiple Deprivation [IMD] – Overall severe relative deprivation in Hounslow seems to have increased slightly since the IMD results were published back in 2010; the borough has 16 LSOAs in the most deprived 20 per cent nationally in the 2015 IMD (including two in the top 10 per cent), compared to 12 (of which one was in the top 10 per cent) in the 2010 IMD. Strategic Documents Hounslow Skills and Employment Strategy London Borough of Hounslow – Sectors Research Nesta - Tech Nation 2016: Transforming UK industries Sector information – Local and National Research A research report conducted by Regeneris called ‘Hounslow Sectors Research’ in 2015 has shown the strength of the Media and ICT and Digital sectors of Hounslow’s economy. These sectors are seen as high growth areas for the foreseeable future and we know from national, and local research reports and through discussions with local employers there are skills gaps within these sectors. The Regeneris research has shown - three quarters of these businesses reported they experienced no difficulties in recruiting appropriately skilled staff. However, skills challenges were reported in IT development / software skills which are found in roles across the ICT and Media sectors. The Regeneris research showed the relative strength of Hounslow’s Media and ICT/Digital Media in comparison to the other 33 London boroughs. In Hounslow, 13 per cent (18,800 jobs) of the total jobs in the Hounslow economy are based in the Media sector which is the highest proportion of all the London boroughs. This shows the relative strength of the Media sector in Hounslow’s economy. The London average for jobs in the Media sector is only 3 per cent. Similarly, 9 per cent (12,900) of the total number of jobs in the Hounslow economy are based in ICT/Digital sector, where Hounslow is 2nd only behind Islington on 10 per cent. The London average for the jobs in ICT/Digital Media is 4.9 per cent. The above tables and information have shown the relative strength of Hounslow’s Media and ICT/Digital Media sectors in comparison to the other London boroughs. Below there is a summary of the key points and figures from the key sectors summary which has been produced from the Regeneris report: Hounslow Media & Broadcasting Sector - 18,800 jobs (13 per cent of total) which increased 8,600 (+84 percent) since 2009 - 410 businesses (4 per cent of total) increased by (+19 per cent) since 2011 - 99 percent employ 0-4 people, but a small number of very large companies such as SKY employ the vast majority - This sector is mainly concentrated in the east of the borough, 50 per cent of businesses are located in Turnham Green and Chiswick - Sector trends – Export driven and domestic growth expected – UK entertainment and media market alone is forecast to reach £63bn by 2016 - Professions – STEAM subjects, Gaming, Mobile entertainment and media, Animation, e-commerce - Threats to the sector – Fragmented funding landscape, incompatibility of traditional financial products and infrastructure gaps - Local specialisms in Production and broadcasting – 78 per cent of the sector’s employment base across almost 300 businesses - Local specialisms in Wider Professional services related to media – 3,400 jobs in 160 businesses - Local specialism in TV Triangle & Enjoy-Work cluster – developing a media tech cluster in west London - Technology – The online presence of the media sector promotes a uniquely large freelance workforce who work from home, with specialist equipment and fibre optic broadband commonly seen as the only necessary tools to do business Hounslow’s ICT & Digital Media Sector - 12,900 jobs (9 per cent of total) increased + 4,300 (+50 per cent) since 2009 - 1,900 jobs businesses (16 per cent) and has increased 51 per cent since 2011 - Large proportion of micro-businesses – 94% employ 0-4 people compared to 81 % across the overall business base - Location – Relatively diffuse but with business concentrations in Hounslow Town centre (27%) and Turnham Green and Chiswick (20%) - Sector trends – Driven by both its own high value potential and its enabling role, helping to drive innovation and productivity in other sectors - Professions – Big data, new broadcasting technologies and delivery models, mobility and connectivity, need ‘work ready’ graduates, e-commerce - Threats to the sector – UK is experiencing an annual shortfall of 40,000 scientists, engineers and technicians, while international competition from US and Asia is also a major challenge to growth - Local specialisms in Development and Business activities – includes activities relating to computer consultancy and software development this sub-sector constitutes over half of Hounslow’s ICT & Digital sector employment (6,600) - Local specialisms in Wholesale of computers & software – 33 per cent of sector employment (4,300 jobs) UKCES – Sector Skills Insights: Digital and Creative The Digital sub sector generates value from the systems, services, software and communications backbone on which everyone depends, and covers telecommunications, computer programming and information service activities The Creative sub-sector generates value from creative content, both digital and traditional, from television to film to publishing, and also covers advertising, design, photography, performing arts and cultural heritage Synergy between the two sub sectors: “Digitisation is making creative firms more technology-intensive” (NESTA) Key messages – The sector contributes £92 billion to UK economy, and employs nearly two million people. The UK is ranked 6th in the world for its overall competitiveness in IT but has declined from 3rd. This drop is echoed in other areas of the sector. International competition in the creative sub sector is being driven by policies that are often more ambitious than those in the UK. The digital and creative sector is highly successful. It makes a significant contribution to the economy and enjoys world class status, which needs to be sustained. It is projected to grow and evolve rapidly over the next decade. Partly because of this success several challenges exist which threaten the sector’s performance: - The quantity of digital graduates - The quality of creative graduates - The gender balance and lack of financial investment in the workforce There are a number of examples which exist where these challenges are being tackled successfully through employer-led skills solutions. If the sector is to realise its potential this action must be scaled-up and employers must play a greater role in developing the skills they need. Digital and Creative sector – Key Skills Challenges Attracting talent is a key challenge – Applications to computing/IT degree courses have nearly halved in the last decade. The digital sub-sector employs three times more men than women. The creative sub-sector has an oversupply of graduates but they often lack specialist skills. Not enough employers invest in the workforce – Half of employers train their staff, but the proportion that train has fallen in recent years. Although much training is done informally, spend per employee in the sector is below average. Sector specific skills gap - Relatively few employers report staff that are not fully proficient in their jobs. But where they do exist, the most common skills gaps are among professional occupations in the digital sub-sector (27% compared to 9 per cent for the whole economy), and among sales and customer service occupations in the creative sub-sector (25% compared to 19% for the whole economy). Lack of technology skills - Where technology skills are lacking employers report it impacts on new product development (68% for digital employers, 51% for creative employers and 41% for the whole economy). Outsourcing work - It also impacts meeting business requirements, in terms of outsourcing work (39% of digital employers, 31% of creative employers and 26% for the whole economy). Business and Management skills - There is also a need to improve business and management skills, management, planning and organisational skills. These skills are those most commonly identified as the ones that need improving and these are in demand across the economy. However training levels are falling and international competition is rising. Creative and Digital Sector – Developing a skilled workforce [Retention] Training - Much of the training undertaken in the Digital and Creative sector is done informally, but more can be done to strength this. Training provision is fragmented and led by learner interest. Only 26% of digital and creative employers reported staff had been trained towards a nationally recognised qualification compared to 44% across all sectors. [Recruitment] Apprenticeships/internships - The sector could do more to grow the specific skills it needs through apprenticeships/internships and tackle some perennial problems: - Creative employers often find job-specific skills lacking among graduates - Entry routes to the creative sector are often characterised by knowing people in the industry and means the sector doesn’t always provide access to the best talent - Digital employers need to establish alternative entry channels such as Apprenticeships that create ‘home grown’ talent Digital sub-Sector – Background The digital sub-sector needs to recruit at least 30,000 people qualified at degree level or above each year and currently there are not enough appropriately skilled graduates. Employers need to think creatively about opening up alternative recruitment channels to include; graduates from non-IT courses who can be trained; experienced workers in other sectors who can be retrained and re-entrants to the labour market following career break, early retirement or unemployment. Women make up only a quarter of the workforce in the digital sub-sector and the proportion is falling. As a result, the digital and creative sector is missing out on a significant proportion of the talent pool. This issue is not only at entry level but also retaining women in the sector is just as much of a challenge. Creative sub-sector – Background The creative sector needs to recruit at least 50,000 people qualified at degree level or above each year. There is a good supply of graduates from 18,000 creative and media courses on offer at UK HE institutions. But too many courses are producing graduates without the specialist skills needed by employers. Engagement between HE and Creative Media industries is crucial, and there is scope for further engagement through: - The development of talent and high-level skills for the creative economy - Activities that enhance the employability and enterprise skills of students and graduates - Provision of tailored and high-quality continuing professional development (CPD) to the creative industries National Research – Digital Sector UKCES - Technology and Skills in the digital industries The Digital sector employs 3 per cent of the UK workforce and contributes nearly £69 billion Gross Value Added to the UK economy (7.4 per cent). Skills shortage vacancies equate to 17 per cent of all vacancies in the sector, and are experienced by 3,000 employers. Hard to fill and skill shortage vacancies are concentrated in Professional and Associate Professional and Technical occupations. The most common skills thought to be lacking are job specific, and advanced IT or software skills. This report is to provide new insights on the role of four emerging technologies which are: cyber security; mobile technologies; Green IT and Cloud Computing, in driving high level skills needs of the wider Digital sector. Cyber security Skills needs – These include a sound base of technical understanding, knowledge and competencies; understanding and awareness of security issues and industry standards; analytical skills, risk analysis and risk management. Communication skills, relationship management, and customer facing presentation skills are also seen critical to achieve active support for Cyber Security from other business leaders. Occupations – There are significant recruitment and skills issues including an inability to source appropriate information security professionals in particular higher level specialists such as Security Architects and Security Analysts. Mobile technologies Skills needs – Agile techniques, technical pre-sales, sales, marketing, account management support and an extensive understanding of customers’ industries are noted as key skills requirements alongside the need for a high degree of interaction between technical specialists, the user experience design team and the end client/customer. Occupations – Mobile technology skills are needed in many IT specialist job roles, whether in design and development, management or support. Highly skilled occupations in mobility include: IT Architects, Developers, User Experience Designers and Project Managers. Hard to find occupations were noted as IT Architects, Developers, User Experience Designers, Testers and Sales and Pre-sales staff. Green IT Skills needs – Key skills requirements are around energy management expertise, data collection and analytics and integration. It was noted that research and development and high level mathematics skills are not readily available, highlighting the need for STEM skills. As found in other technologies investigated for this project, IT skills need to be complemented with sector or domain specific skills (e.g. in construction and logistics). Business and commercial awareness, communication and presentation skills were found to be needed at a higher level to increase awareness of sustainability issues across the business as well as with customers. Occupations – IT architects and Solution Designers are key high level roles for Green IT. Staff working in this area tend to have extensive IT backgrounds, experience and capability before specialising in Green IT. Certifications are less widely used with solid technical background and experience being favoured, perhaps with a higher level degree. Cloud computing Skills needs – A wide range of technical skills are needed for Cloud Computing although security, networking, virtualisation skills and big data analytics are considered to be the key skills for Cloud. However, IT specialists need broader business skill-sets, especially risk management and business stakeholder management, to bridge the divide between IT and wider business operations. Occupations – Employers report that generally competition for higher level skills means that they find it difficult to recruit into cloud roles, relying on contractors/consultants while they redeploy and upskill their existing staff. Project Specification The project will aim to improve the employability and skills of long term unemployed and economically inactive Hounslow residents and aim to move them closer to securing opportunities within the local Digital, Media, Tech and Creative sectors. In particular it should focus on skills and roles that local employers identify as a priority, and where there is expected to be ongoing demand, to maximise chances of sustainable employment for participants. Currently, the employment and skills team provides support for residents to secure employment through a general job brokerage service. The aim of the project is to provide specialist job brokerage support to businesses and residents in the Digital, Media, Tech and Creative sector. There are a number of barriers and issues that are experienced by Hounslow residents: Hounslow has a significant demand for English for Speakers of Other Languages (ESOL) provision, with many residents not having English as a first language. In a number of cases migrants who move to the borough are actually highly-skilled from their home countries but because of the language barrier they find themselves in low-paid employment which raises questions about productivity. Hounslow experiences a substantial churn in the composition of its population due to migration changes, and this churn is particularly concentrated on the central part of the borough. Hounslow is also a very diverse borough in terms of its population and its geography - as the West of borough is in close proximity to Heathrow and the East of the borough bordering Acton and Hammersmith. A high number of high value and high paid jobs within the borough are actually carried out by people who live outside the borough and not Hounslow residents and in particular this is case for the Digital, Media, Tech and Creative sectors. The majority of Hounslow residents find themselves in low-paid employment within the borough. The Digital, Media, Tech and Creative Skills Project should engage fully with on-going and existing plans and strategies within the councils and with other key partners, and where possible work with the services delivered by the skills and employment team, and in particular those which are detailed below: Hounslow Job Brokerage Service - Borough wide job and skills brokerage, which works with local employers to ensure their vacancies can be filled by Hounslow residents. The service provides clients tailored one-to-one support on how to get closer to employment by providing information, advice and guidance [IAG] and where possible removing any barriers to work. The job brokerage service also has a Construction Skills and Employment Officer who specialises in working with employers in the construction, transport and logistics sector. This activity includes providing clients for job vacancies and apprenticeships making sure they have the correct accreditation to work within the sector. Careers Coach - This innovative service provides Hounslow residents with information, advice and guidance on employment, skills and training via a state-of-the-art converted truck, fully equipped with computer stations for residents to work on their CV or job application. The coach aims to provide IAG to residents and sign up clients for Job brokerage and Skills Escalator, and also will offer support to low-paid in work residents who do not qualify for our other projects by signing them up for our work clubs and referring them onto NCS if they require further support. Skills Escalator - The Skills Escalator project aims to help people with low incomes to get training and support to help them improve their skills, and increase their income either through increasing their hours in their current role or by supporting them to find higher-paying jobs. Project Requirements The Digital, Media, Tech and Creative Skills ESF project should focus on long term unemployed or economically inactive adults aged 25 and over with a particular focus on ESF target groups which are lone parents, women returners, ethnic minorities and people with disabilities. The successful provider will be expected to work with all of these target groups. The project must work to support a number of different activities to help support local Digital, Media, Tech and Creative sectors – these activities will focus on getting local residents interested in the sector and local opportunities; providing residents with the skills and qualifications linked to skills required by the sector and securing residents into direct employment with local Digital Media/Tech employers. The Mayor and the Local Employment Partnership (LEP) in November 2015 announced it was launching a £5m Digital Skills Programme, the programme activity will be focused on the 14-24 age group. This project should expect to engage with the LEP delivery partner in the local area to complement the LEP’s activity. Both programmes are supporting different target groups to engage in the same sector and there will be a number of benefits in working together as there might be opportunities for cross-referral and working together to raise awareness of the projects when engaging with both residents and employers. The Digital, Media, Tech and Creative Skills project provider should seek to coordinate employer contact with the LEP delivery partner to minimise duplication. The project will engage: - A number of key stakeholders to successfully deliver the stated outcomes, the expectations will be for the project to develop strong working relationships with key local providers like West Thames College and University of West London to identify appropriate training provision for clients enrolled onto the project. - Local businesses within the Digital, Media, Tech and Creative sectors to understand their skills requirements, current skills shortages and job opportunities. It should be remembered that different methods will be required to engage the large corporate employers and Small and Medium Enterprises (SMEs) in the sector. - Existing employment services which are being delivered by the Skills and Employment team at Hounslow Council to ensure that these services all link up and are coordinated. The project will need to design interactive and creative methods to engage unemployed Hounslow residents from across different parts of the borough to support creating local skilled residents who can work in the local Digital, Media, Tech and Creative sectors. Payments will be on a payment by results/outcome payment model, weighted towards sustained job outcomes as the key outcome-objective of the project. Therefore, funding is allocated against the following measures, and service providers are asked to bid and provide evidence against the numbers and quality of outcomes they propose to deliver against each of the outputs and results in the table below. ## Digital, Media, Tech and Creative Skills Project \| Geographical location \| Hounslow \| \|-----------------------\|----------\| \| Project Timescale \| Contract Period \| \| \| 01/09/2016 to 31/12/2018 \| \| Outputs for payment \| % Conversion \| No. of Participants \| Unit Cost \| Total \| Delivery Timescales \| \| Number of Participants \| 115 \| \| Participants receiving 6+ hours of support (IAG, job search, mentoring, training) \| 90% \| 104 \| £400 \| £49,600 \| 30/06/2018 \| \| Participants undertaking a work placement \| \| 18 \| £250 \| £4,500 \| 30/06/2018 \| \| Participants achieving vocational qualifications \| \| 7 \| £900 \| £6,300 \| 30/06/2018 \| \| Evaluation \| \| 1 \| £4,000 \| £4,000 \| \| Results for payment \| Total \| \| Participants in employment/apprenticeship within 4 weeks of leaving the project \| 50% \| 57 \| £1,000 \| £57,000 \| 30/06/2018 \| \| Participants who have sustained employment for 26 weeks (out of 32) \| 63% \| 36 \| £1,500 \| £54,000 \| 31/12/2018 \| \| Maximum funding available \| \| \| \| \| £175,400 \| Introduction to the borough Merton as a whole is a successful borough and compares well to other parts of London in terms of rates of employment and unemployment, skill levels and earnings. However, this overall picture masks a deep divide between the eastern and western halves of the borough. Residents in the west of the borough are more likely to be employed, more likely to have high levels of skills and they are likely to earn more. Residents in the east of the borough have fewer local jobs in the vicinity and do not benefit from the same quality of transport connections as residents in the west of the borough. Aside from the geographical differences, other entrenched problems are associated with the large numbers of residents in the borough who are long-term benefits claimants, including the 5,000+ residents who claim Employment Support Allowance (ESA) and incapacity benefit. Whilst the overall percentages who claim these benefits at borough level compares favourably with the London averages, the imbalance in the borough means that there are high concentrations of these residents in the east of the borough. For many of these people, getting back to work will pose a significant challenge. Merton also faces challenges in terms of apprenticeship numbers. As with London as a whole, apprenticeship starts and completions have fallen in Merton over the past few years, though the decline in completions has been more severe in Merton. More needs to be done to ensure that young people and employers see apprenticeships as a viable route into employment and for career progression. Another challenge includes the numbers of residents on low pay. Nearly a fifth of employed Merton residents are paid below the London Living Wage. Whilst this is a lower rate than London, it still represents a considerable barrier to residents achieving a better quality of life. Merton residents are on the doorstep of the country’s most dynamic employment market. However, many residents may continue to be locked out of this market, due to lack of relevant skills. New employment opportunities in London will demand higher skills. Whilst there will continue to be low skilled employment opportunities, there will be increasing competition for these jobs and therefore a commensurate downward pressure on wages for low skilled employment. The Economic Wellbeing Group (EWG) was set up in 2012 and looks at improving the economic wellbeing of residents. The EWG is dedicated to improving the employability and skills prospects for residents in the borough. This group comprises of job centre plus, the local FE College, training providers, registered providers and social landlords, Merton Chamber of Commerce, community organisations, representatives from the council and local voluntary sector partners. The EWGs first successful joint bid was the Demand Led pilot in 2012 from the London Learning Consortium. This programme looked at improving skills and encouraging a gateway to employment for long term unemployed residents who resided in the four most deprived areas in the borough. The ‘Take One’ programme led by Merton Chamber of Commerce was another EWG initiative which has led to 247 employers expressing an interest in taking on an apprentice with more than 100 apprenticeship starts. The EWG has recently won the Flexible Support Fund from the Department for Work and Pensions (DWP). This funding will be used to work with and address the barriers of 50 residents to enable them to move closer to sustainable employment. In 2012, the council commissioned Shared Intelligence to conduct an Employment and Skills strategy. From this strategy, the first economic and wellbeing action plan was produced. The action plan set targets and objectives for all EWG partners to work towards improving the skills and employability prospects for our residents. In 2014, the employment and skills action plan was refreshed with a new action plan being set in July 2015. This plan identified a number of target groups that required additional support. The groups identified were ex-offenders, lone parents, carers, long term unemployed, looked after children/ care leavers and the over 50s. In 2015, Merton commissioned an employability programme to deliver employability skills and training to the hardest to reach residents, targeting those residents identified from the employment and skills action plan refresh. These programmes have been split between three providers and finished in June 2016. In addition to the employability programmes, Merton commissioned the delivery of a basic IT skills programme to teach residents how to use a computer, the internet and provide an introduction to the Microsoft office package. This programme was due to finish in March 2016. We are looking for a bespoke approach from this ESF programme. Many of our residents have been through a number of training programmes previously; however they feel discouraged when there are no employment opportunities available at the end of the programme. Alongside the lack of employment opportunities, many residents feel as though they are forgotten once the programme has completed, therefore it is very important to ensure that mentoring, specialist advice, skills support and job coaching is included within this programme. In addition to coaching and mentoring, it is important that this programme provides sustainable job outcomes, and on-going support once an individual has gone into work to ensure they remain in employment. This programme will provide confidence, improve mental health, motivation, attitude to work and have a positive effect on those in workless households. This in turn will provide wider benefits to the community. Demographic Data - Merton has a total population of 203,500 - Total working age population: 137,500 (67.6%) - Percentage BAME: 37.1% (mixed, black, Asian, Chinese, other) Strategic documents Merton Employment and Skills action plan https://www.merton.gov.uk/merton_employment_and_skills_action_plan_2013-2014.pdf Economic Development Strategy http://www.merton.gov.uk/merton_s_economic_development_strategy_refresh_2012.pdf Economic Narrative http://www.merton.gov.uk/economic_narrative_for_merton_2012.pdf Background Merton is a relatively affluent borough located in South West London (SWL), with a population of 203,500. Merton currently has 1,997 people claiming job seekers allowance (JSA). There are currently 26,000 individuals who are economically inactive. This suggests that there are a large number of unemployed people who are not claiming JSA, either because they are ineligible, or because they do not want to due to tougher requirements on those claiming JSA. The broader measure of unemployment suggests that unemployment is rising, even though the JSA claimant count is falling and is now back to pre-recession levels. This suggests that there are a large number of unemployed people who are not claiming JSA, either because they are ineligible, or because they don’t want to due to tougher requirements on those claiming JSA. Economically inactive persons are currently not part of the labour force (in the sense that they are not employed or unemployed according to the definitions provided). Economic inactivity includes students, those with caring responsibilities and early retirees. There are currently 26,000 economically inactive people in Merton. Looking at the borough as a whole, Merton has a strong labour market. Its employment rate has been above the London and national averages for most of the past decade. During the economic downturn, the employment rate amongst working age residents fell more sharply than across London and England, but over recent years it has moved closer towards pre-recession levels. The employment rate gap between men and women in Merton is relatively high. This is partly a result of the area’s particularly high male employment rate. However, it also reflects the disproportionate impact of the recession on females in the labour market. Given that Merton has relatively few jobs per resident, it is not surprising that Merton is also a net exporter of labour, with an aggregate inflow to the sub-region of 38,400 workers and an aggregate outflow of 68,000 workers. In total there were 29,600 more out-commuters than in-commuters in 2011. At the same time, over four-fifths of Merton commuters worked outside of the borough. In total, over half of working residents were employed in other parts of London. The lack of transport routes in the east of the borough has an impact on those in the east not commuting outside of the borough compared to those in the west of the borough. Claimant rates are much higher in the east of the borough, particularly around Mitcham, than in the west of the borough. Of particular concern in London and Merton is youth unemployment, given the impact this has on long term employability. The recession has made finding work much harder for young people. The most recent count shows that nearly 400 young people in Merton were claiming JSA. The programme will target the individuals who are seen as the hardest to reach and engage with. ______________________________________________________________________ 28 Unemployed are persons usually without work, available for work and actively seeking work. Persons considered as registered unemployed according to national definitions are always included here even if they do not fulfil all three of these criteria. Employed persons are persons aged 15 and over who performed work for pay, profit or family gain or were not at work but had a job or business from which they were temporarily absent because of, for instance, illness, holidays, industrial dispute, and education or training. The Merton ESF programme will have a strong focus on supporting those in the East of the borough, particularly those from ethnic minorities. This builds on Merton’s employment and skills action plan which supports the hardest to reach residents into employment or a training opportunity. This programme will complement but not duplicate current local provision in the delivery of an employability programme to help the hardest to reach target groups into employment. In addition to providing support and basic skills to residents, the delivery partners will also be expected to provide work experience, sustainable job outcomes and apprenticeship placements. The EWG has a specific remit to work on creating employment opportunities and up skilling residents by providing joined up approaches and collectively bidding for funding with a focus on the east of the borough. The winning delivery partner will be expected to work closely with the EWG and provide regular updates at the meetings. Therefore this ESF project 1.1 should build on two areas of Merton’s existing Employment and Skills Action Plan. It should aim to complement, and develop best practice within the following areas: 1. Merton’s employability initiatives to assist the hardest to reach residents into work. This ESF project should demonstrate a close link with Merton’s existing initiatives by focusing on engaging and providing sustainable employment, apprenticeship or work experience for the long term unemployed, those who have been economically inactive, residents with a disability, and those who are 50 and over. 2. Skills and Training - focused on support to families, young people and residents requiring ESOL to increase their employability and accelerate their entry into work. The Project should therefore demonstrate that it can target those from black, Asian, and minority ethnic (BAME) backgrounds by linking with current borough funded initiatives. Project Specification The objective of this programme will be to move people towards employment by up skilling them and removing the barriers, which are standing between them and employment. It will enable: - Long term unemployed and economically inactive people to move closer to work through increased confidence, appropriate skills training and work experience opportunities. - People to start a job, with mentoring and other appropriate in work support to help them stay in work. The project will focus primarily but not exclusively on lone parents, carers, women returners and potential second earners who are economically inactive as well as those from BAME, and those with disabilities in the eastern side of the borough. As people below the age of 25 are disproportionately affected by worklessness, the project will also be expected to target this group. However, the majority of participants to this project should be above 25 years of age. The project should reflect these groups in its design. Whilst Merton is seen as an affluent London Borough there are pockets of deprivation within the borough. These areas of deprivation are mainly in the eastern wards of the borough. These wards have multiple deprivation having high scores on income deprivation, unemployment, and lack education attainment. The project has the opportunity over a relatively long delivery period to work intensively and consistently with participants to move them closer towards the labour market. The project should include elements of financial capability, which will include an understanding of benefits and how better to manage resources. Merton claimants transferred to universal credit in April 2016, so we would expect sessions on financial management/budgeting to be included within this programme. The project should also include confidence and motivational training as well as the more traditional job search skills such as interview practice, interview techniques and support to complete application forms. A key area will be to ensure realistic job goals that match local need is looked at and addressed. Mock interviews with employers will also be expected. The project should receive referrals from other delivery partners in the borough who can be accessed through the EWG, as well as through other local sub groups and internal council departments. The project will be evaluated at 2 milestones; Stage 1 one year into active delivery phase in December 2017 and will serve as a formal mid-point review. Stage 2, once the project has completed in December 2018. The Stage 1 evaluation can be completed in-house, but the final Stage 2 evaluation must be conducted externally and independently of the project team. Templates for the structures of the evaluations will be provided, and payments will only be released once the evaluations are approved by the programme management team at London Councils. \| Geographical Location \| Start \| End \| \|-----------------------\|-------\|-----\| \| Project Timescale \| \| \| \| Project Delivery \| 12/03/2017 \| 31/12/2018 \| \| Final Evaluation \| 31/01/2019 \| \| Outputs for payment \| % conversions \| No. of Participants \| Unit cost \| Total \| \|---------------------\|---------------\|---------------------\|-----------\|-------\| \| Number of starts \| \| 149 \| \| \| \| Number of participants receiving 6+ hours of support (IAG, job search, mentoring, training) \| 91% \| 135 \| £440 \| £59,400 \| \| Participants gaining basic skills \| 79% \| 118 \| £400 \| £47,200 \| \| Participants undertaking a work placement / volunteering \| 44% \| 65 \| £350 \| £22,750 \| \| Submission of final evaluation report \| 1 \| £4,283 \| £4,283 \| \| Results for payment \| Unit cost \| Total \| \|------------------------------------------------------------------------------------\|-----------\|----------\| \| Number of participants entering employment /apprenticeship within 4 weeks of leaving \| 45% \| £1,700 \| £113,900 \| \| Number of participants in sustained employment /apprenticeship for 26 weeks (6M) \| 60% \| £2,250 \| £90,000 \| \| Maximum funding available \| - \| £337,533 \| Specification 4 Wandsworth – Older Workers Employment Network Wandsworth’s demographic profile indicates that 85% of JSA claimants are over 25 with 1440 more JSA claimants over 45 years old. Approximately double the amount of claimants in the 18-24 years old age group. The Policy Exchange report ‘Too Much to Lose, Understanding and Supporting Britain’s Older Workers’ Author Matthew Tinsley (2012) outlines the negative economic impact of the number of older people unable to find work. The report highlights the tension between supporting older and younger people into work and specifically highlights the past poor performance of national organisations in impacting the numbers of older people out of work. It also outlines and recommends the inclusion of local employer engagement, voluntary sector organisations and more individually tailored advice in any future programmes. The Resolution Foundation research report, ‘Unfinished Business - Barriers and opportunities to employment for older workers’. Author Giselle Cory (August 2012) demonstrates the national picture for older people who are over represented in unemployment figures. But even this may be an underrepresentation of the true number of older people who are economically inactive and may be forced into early retirement through redundancy or ill health. Cory found that fewer than 40% of over 50s find work within a year. However older workers may have a greater need to return to work quickly because of mortgage responsibilities and dependent children. At the same time, age discrimination could significantly limit the opportunities that an older job seeker has. The imperative for older people to find work is driven by the need to earn a regular income but also to improve the health and well being both immediately and in later life. Part time work may also be suitable for some older people. Improved back to work support is identified as a necessity and is described as: - Targeted personal support to find work. - Identification of barriers to work including health issues and caring responsibilities. - Addressing self-confidence and the need to up-skill to meet the changing needs of business. - Volunteering opportunities and work trials may be useful in returning to the workplace. Cory concludes that older workers are crucial to maximise the UK’s economic capacity and hold vital experience and expertise. Failure to support and utilise older people in the economy may lead to the risk of poverty and declining living standards. This may in turn lead to a greater financial dependence on the state as well as a loss of business know how and talent. Project Specification In line with the Local Employment Partnerships (LEPs) strategic priorities Wandsworth’s project will aim to reduce unemployment within the borough by addressing the specific barriers to employment of the over 45s age group. Therefore, addressing the barriers to work for this age group can significantly impact on the overall unemployment figures for the borough. This programme proposes to set up the ‘Older Workers Employment Network’ - OWEN, a network for 110 long term unemployed or economically inactive over 45 year olds in Wandsworth. The aim of the programme will be to support OWEN participants to identify and address the barriers faced by older people who are looking for work and provide a platform for these individuals to explore and address their personal barriers to work. The programme will aim to help 58 people to find work with 36 of them sustaining employment for more than six months. Therefore the project provider will be required to set up the ‘Older Workers Employment Network’ - OWEN. They will work with employers and older people to identify employment opportunities and to address barriers to work including exploring and addressing age discrimination. One of the ways the successful provider will need to do this is by developing and producing a business case for employing older people through the course of the project. This will involve both employers and job seekers and will use the experiences gained over the life of the project. The successful provider will need to involve employers, voluntary sector organisations, local authority services and will be managed by a project coordinator who will provide advice, support and networking know how. The OWEN service provider will work closely with the council’s Work Match team to identify employers that are positive about recruiting older people, with the intention of building links which may help OWEN participants to access jobs. Work Match has established, and continues to establish, excellent relationships with businesses, and has directly engaged with over 300 businesses in the last 12 months. The council’s Work Match team has also secured a number of vacancies in the following sectors through Section 106 agreements for local people:- - Construction - Retail - Hospitality and Catering - Business Administration We are confident that many of these businesses will take an active interest in recruiting older workers and make a positive contribution to this initiative. Once created the Older Workers Employment Network (OWEN) should provide enhanced Information Advice and Guidance (IAG) for older workers in order to harness and focus the experience gained through individual and group work to aid return to employment. The successful provider should ensure that they identify barriers to work (faced by older people) and plan and deliver both individual and collective solutions to address these: the successful provider will engage with employers to further understand local business needs and negotiate work trials, build a business case for employing older people and create a peer to peer network of support, focused on finding and retaining employment. ______________________________________________________________________ 29 Under the 1990 Town and Planning Act, Section 106 (S106) Agreements are legal agreements between Local Authorities and developers; these are linked to planning permissions and can also be known as planning obligations. Section 106 agreements are drafted when it is considered that a development will have significant impacts on the local area that cannot be moderated by means of conditions attached to a planning decision. Employers should be recruited and engaged through the boroughs existing business organisations and through ‘Work Match’, Wandsworth’s in-house jobs brokerage. Introductions between employers and OWEN members will need to be made at ‘Meet the Employer ‘speed dating’ events. Employers will also need to be involved at project board level and will help to shape and evaluate the programme. The focus will be on assessing current skills against the needs of new and existing businesses and identifying training and development to fill the gap. The provider’s project will also focus on addressing the self-confidence of older people through peer to peer support and engagement in order to improve the outcomes of up skilling to meet changing business \| Specification – Required outputs, results and unit costs \| \|----------------------------------------------------------\| \| Wandsworth – OWEN Project \| \| Project Timescale \| \| Contract period \| \| Start 01/07/2016 \| \| End 30/09/2018 \| \| Final Evaluation \| \| 31/12/2018 \| \| Outputs for payment \| \| % Conversions \| \| No. of Participants \| \| Unit cost \| \| Total \| \| Number of starts \| \| 121 \| \| Number of participants receiving 6+ hours of support (IAG, job search, mentoring, training) \| \| 91% \| \| 110 \| \| £450 \| \| £49,500 \| \| Submission of final evaluation report \| \| 1 \| \| £3,250 \| \| £3,250 \| \| Results payment for payment \| \| Number \| \| Unit cost \| \| Total \| \| Number of participants in employment within 4 weeks of leaving the project \| \| 48% \| \| 58 \| \| £800 \| \| £46,400 \| \| Number of participants in sustained employment for 26 weeks (6M) \| \| 62% \| \| 36 \| \| £1,100 \| \| £39,600 \| \| Maximum funding available \| \| £138,750 \| 3. Participant Target Groups London Councils’ ESF Programme 2016-2018 will support the long-term unemployed and economically inactive individuals who are from the specific target groups outlined below. The Programme’s target groups and the relative percentage of starters for each target group are also listed (to the right): - Economically Inactive: 65% - Long-term unemployed: 35% ESF Target Groups - Women: 51% - Older People (50 years and over): 18% - Ethnic Minorities: 60% - Disabled (self-declared): 22% - Lone Parents: 16% Your project will be expected to recruit starters from these target groups, and should meet the percentages as shown in the tables above. Note: one individual may be in one or many of the target groups. Applicants will need to consider the appropriate level of childcare to be provided. London Councils expects all projects to provide childcare for participants as required in order to enable them to access this and other support provided on London Councils’ ESF programme. Therefore when designing your project and writing the application, you should give careful consideration to which target groups you will be supporting, how you will reach and assist them into employment. Where you do not have experience in reaching and working with certain groups, your application must show an agreed partnership with a delivery partner with the required experience and outreach. If a potential participant is not from any target group, you will still be expected to assist them either directly or through signposting. Where there are insufficient start volumes from the eligible target groups above and the Applicant can demonstrate to the satisfaction of London Councils that this is despite the Applicant’s concerted efforts, London Councils in agreement with the funding Borough may consider widening the eligibility criteria with respect to the employment status of participants. Payment may be withheld if the agreed starters target groups percentages are not met. There is provision in the ESF programme – outside the London Councils ESF programme – for individuals who fit within the NEET target group (people aged 16-18 who are not in employment, education or training). In practice, these individuals are not expected to participate on the London Councils ESF Borough Employment Programme 2016-18. Information about programmes for individuals who fit within the NEET target group can be found through the Skills Funding Agency website: [https://lep.london/content_page/skills-funding-agency](https://lep.london/content_page/skills-funding-agency) Core Project Requirements Eligibility of participants and definitions Economically inactive - "Inactive" are persons currently not part of the labour force (in the sense that they are not employed or unemployed according to the definitions provided). Long-term unemployed – Long-term unemployed persons are unemployed persons who are either: - Youth long-term unemployed (\<25 years of age) = more than 6 months continuous spell of unemployment; or - Adult long-term unemployed (25 years of age or more) = more than 12 months continuous spell of unemployment. The target groups for this prospectus are long-term unemployed and the economically inactive. See above for detail. Individuals who fit within the NEET target group (people aged 16-18 who are not in employment, education or training) are not eligible for the London Councils ESF Borough Employment Programme 2016-18. In effect, this means that all participants must be aged 19 or over. Participants must also meet the following criteria: - Live within the specified boroughs: - Or where participants are homeless their registered Jobseeker’s Allowance (JSA) office or temporary/ sheltered accommodation is within the specified borough. Participants who engage onto the project, but then ‘move out’ of the specified borough may continue to be supported through the programme. (Individuals who live outside the specified borough(s) should be referred to other appropriate support services.) - Have the right to work in the UK. - Participants should not be on another ESF funded employment programme where the claimable financial output/result is the same: - This includes ESF employment programmes delivered under the National Offender Management Service (NOMS), Department for Work and Pensions (DWP), Greater London Authority (GLA), London Councils and Skills Funding Agency. - Are not already mandated on to the Work Programme: - Or are about to be mandated onto the Work Programme or Jobcentre Plus (JCP) approved provision, and the JCP advisor has not approved enrolment onto this programme as an exclusive alternative to the Work Programme. To apply for this Funding, Applicants must be: - constituted: Organisations funded by London Councils must have a constitution or governing document that is signed and dated, and defines how the organisation will operate. A governing document can be a formal constitution, a memorandum or articles of association. - Public or Local authority bodies can apply for grants, however the body bidding must be separate and have appropriate ethical walls from the body awarding the funding.(^{30}) - able to deliver the work in all the boroughs listed in the project specification: - Financially solvent: Organisations funded by London Councils must not have liabilities that are more than their current assets. - Able to begin delivery of project activity from 12 March 2017: Unless otherwise stated in the application. ______________________________________________________________________ (^{30}) London Councils will ensure that the scoring process will be open, transparent and fair and that there is no conflict of interests when scoring and in assessment of applications. 4. Project activities, outputs and results London Councils ESF Borough Employment Programme 2016-2018 will support objectives under ESF Priority Axis 1– Inclusive Labour Markets delivering outputs and results for the Investment Priority 1.1. As a result the Programme aims to improve access to employment for individuals who are far from the labour market, and need assistance to overcome barriers to work. It will deliver four ESF and Borough jointly funded projects, which aim to: - improve the employability of the economically inactive and long term unemployed individuals so that they can compete effectively in the labour market - provide tailored support for those with particular labour market disadvantage(s) (as detailed in Participant Target Groups section) to improve participants’ job readiness and sustainability in employment - encourage inactive people to participate in the labour market and to improve their employability - achieve the basic skills needs of the programme’s participants so that they can effectively compete in the labour market. Within London, there are a number of programmes already providing support to the unemployed, economically inactive, and long term unemployed. In order to avoid duplication, London Councils and participating boroughs will fund projects that work with the specific target groups and geographical areas defined within the project specification (Section 2). It is recognised that not all participants will be able to move directly into employment at the end of the project. However, where employment (including self-employment) is a realistic target for individual participants, this is the preferred outcome and this is reflected in the targets agreed with successful applicants. Outputs and Results for payment All payments on the London Councils ESF Borough Programme 2016-18 will be made based on the delivery of pre-specified outputs and results. There are a number of standardised outputs and results for delivery across all specifications. These are explained below. However, it should be noted that some boroughs will also have specified outputs and results specific to their borough. For details of these and any unit costs associated with them, please consult each specification individually. Below are all of the specification outputs and result, with associated definitions and evidence requirements. Please note that all of the evidence requirements for output and result payments to be claimed, will also be included in a Project Handbook. Project Handbooks are provided to successful applicants, once the funding agreement with the applicant for delivery of the project is signed with London Councils. Standard Outputs Participants receiving six or more hours of one-to-one support There is no payment for enrolments. Instead, after an advance of 15% (of the total agreed budget) the first payment a project receives will be made against participants who receive a minimum of six hours of support (IAG, job search, mentoring and/or training). Providers therefore may enrol as many participants as they wish to or have capacity for, however they will only be paid up to the total amount allocated for each payable output. London Councils’ ESF Borough Employment Programme’s remit is to assist those furthest from the labour market and this means that for a successful intervention the majority of participants would need a minimum of six hours of support. Please note: - The six hours of support is a milestone which, when passed, allows the project to claim a payment. London Councils requires providers to respond appropriately to participants’ needs; those who need a longer intervention in order to secure success should be accommodated and supported effectively throughout. - The six hours of support milestone will not include the time taken to register the participant and complete the enrolment form. Time spent doing the induction, needs assessments, action plans and giving information, advice and guidance may be counted. Class work or other group sessions may not be counted if the milestone has been specified as one-to-one sessions only. - It is recognised that some participants who do not receive six hours of support may still benefit from the programme successfully. Therefore, an employment result may be claimed against any eligible participant, whether or not they have received six hours of support. Any participant for whom a result is claimed must have been enrolled and reported in accordance with London Councils ESF Programme procedures. - London Councils expects all projects to provide childcare for participants as required in order to enable them to access this and other support provided on London Councils’ ESF programme. Participant completing work placement/volunteering Initial results of the London Councils ESF Programme 2016-18 indicate that participants who undertake work placements are more likely to secure employment after leaving the programme than those who do not. London Councils wishes to increase the focus on work placements for the 2016-18 programme and has included work placements as an output for payment. Please note: - In order to be claimed as an output for payment, the participant must have completed the work placement. - Work placements are time-limited interventions, giving participants experience of real-life work situations in order to assist them in developing skills, understanding work environments and the expectations of employers. There should be a progression towards paid employment, but the participant should not receive financial compensation for their work (though they may gain financial support with out of pocket expenses e.g. travel, childcare etc.). They should include a structured on-placement training/work plan which takes into account both participant and employer needs and on-placement support to both employer and participant should be provided. Work placements must be for a fixed period of time totalling not less than 30 hours, over a period of time not exceeding twelve weeks. This can include volunteering as long as it meets the criteria outlined above. Participant gaining Basic Skills Basic skills gained upon leaving the operation and as a result of a participant taking part in ESF supported activity. The term 'basic skills' refers to one or more of the following: literacy (English); numeracy (maths) or ESOL (where English is not the participant’s ‘mother tongue’) (at entry level or above). Further information about Basic Skills is available in the MI Definitions document (p117): https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/506534/MI_definitions_Final_V1_20160210.pdf (page 117) Participant achieving vocational qualifications Actions to develop skills and promote participation in education/training are central elements of many ESF funded programmes and the monitoring process requires information about the starting position of participants and how this may be influenced through ESF support. Indicators therefore cover the level of educational attainment before support, whether or not any qualifications were gained through ESF support, and subsequent participation in education and training. Please note that we are using the ISCED levels and UK equivalent indicated in the Output and Result Indicator Definitions Guidance for the European Social Fund (pages 131-136). A link to the document is available here: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/506534/MI_definitions_Final_V1_20160210.pdf Participants attending skills events (3+ hours) As part of the participants 6+ hours of support, participants should be attending skills events. Events should enable engagement with large groups of clients at the same time to not only help to increase participants for the project but also raise awareness about the project to providers and employers. This should help to deliver IAG in a different way and act as a successful way of engaging participants and stakeholders. This could include holding an event on a particular technical skill/s need, which should be employer-led – so for example if many of the participants on the project are programmers or are interested in becoming programmers, the event could link up with local providers and employers to provide presentations and discuss pathways into the profession. For example, discussing soft skills, amending CVs accordingly, and focussing on future trends in the sector Immediate Results Participants in employment or apprenticeship, including self-employment within four weeks of leaving the Project A payment will be made for economically inactive or long term unemployed participants who gain employment within four weeks of leaving the project. ‘Leaving the project’ in this instance marks the date that the participant left the ESF project, after this time no further ‘hours of support’ can be recorded against a paid outcome. However contact and support to participants is expected to be maintained for as long as the participant feels it is necessary and to ensure that the progression is maintained. To claim this result, the employment must be for 8 or more hours each week, unless otherwise defined in the specifications. This may be working for an employer (where their National Insurance is paid directly from their wages) or in self-employment (where people generally pay their National Insurance themselves). Confirmation of self-employment is required. A letter evidencing registration with HMRC, bank statement of a trading business account or registration with Companies House must be provided. For more information on ESF evidence requirements please see: https://www.gov.uk/government/publications/european-structural-and-investment-funds-programme-guidance Longer-term Results Participant in sustained employment (including self-employment) for 26 out of 32 weeks A further payment will be made for those participants who sustain their employment for a minimum of six months. All sustained employment results must be achieved by the dates stated within each borough’s project specification. Employment does not necessarily need to be with the same employer for the whole period, but all employment must have clear evidence. It is possible that a participant can have breaks in 31 Employment outcomes can be claimed for participants that enter employment whilst receiving support from the project or within 4 weeks of their last intervention with the project. Leaving a project marks a stage in the participant’s progression and should not be a marker for the end of project support to the individual or employer. their employment. However for each sustained result a minimum of 26 weeks of 32 weeks is required and must be achieved by the dates stated within each project specification. Participant tracking and on-going support Successful projects will be expected to maintain support and track participants on the programme. Projects will need to explain within the grant document their methods and proposal for the support and tracking of participants and details of any in-work support or employer interventions they will deliver. Results can only be claimed once participants leave the project. Submission of a final evaluation You will be responsible for commissioning an independent, external evaluation of the impact of the project, at the end of the project. You will be required to support and contribute to this assessment. Applicants must provide for the cost of the evaluation within the budget submitted as part of the application. The final project payment will be contingent on submission of the evaluation. ‘Soft’ outcomes Recognising individuals’ personal achievements, or soft outcomes, is an important part of helping people towards finding suitable employment. These ‘soft outcomes’ include for example, helping people to acquire greater self-confidence in their potential or taking steps to overcome barriers to employment. You will be expected to measure the ‘distance travelled’ (progress/improvements made) by participants while on the project, based on prior assessment and recording of suitable steps-(work carried out by project to achieve participant improvements). This may take the form of progress reports or self-assessment questionnaires. As mentioned you will be expected to compile a final evaluation on your project at project close, which will include an assessment of soft outcomes for participants. You should therefore ensure that you collect information on soft outcomes for each participant throughout the lifetime of the project. 5. Added value London Councils and ESF wish to support projects that could not be delivered without its funding and which bring additional benefits to local provision and individuals. This is called ‘added value’. Your project may provide added value because it increases the number of people who receive the support they need to move towards work, or, because it allows you to do more for people than would otherwise be permitted by other funding streams. Alternatively, this funding may allow you to continue existing activity which would otherwise be cut back or it may allow you to develop new activities or to fill a gap in provision. Subject to the eligibility criteria in Section 3, organisations which receive a grant from any London Councils or ESF grants programme are welcome to apply for funding under this programme. However, your application should make very clear what additional activity, outputs or achievements you will deliver through this project. Organisations which have previously received a London Councils grant should note that, unlike other grants, the programme cannot fund general organisational costs, only those which relate solely to the cost of the ESF funded project. ESF Employment Support Programmes Where possible applicants are expected to work with other London ESF Programmes’ providers, some of which are managed by organisations such as: - Big Lottery - Skills Fund Agency - Department for Work & Pensions - Local Authorities - Greater London Authority Details of their provisions can be found at: https://lep.london/sites/default/files/20160523_Summary_of_ESF_Provision.pdf https://www.biglotteryfund.org.uk/global-content/programmes/england/building-better-opportunities/london You must ensure there is no duplication of participants or activities with the above ESF programmes in London. 6. Partnership working London Councils wishes to support effective partnership working in project delivery. In particular, we strongly advise delivery organisations to work with partners where complementary expertise is required to deliver a full package of support. For example, where specialist training outside of the provider’s core competencies is required, we would prefer that this provision be outsourced to an experienced specialist provider, rather than providers attempting to establish a new training resource. You are also expected to form partnerships with other deliverers in order to recruit people from all target groups. You will be scored accordingly. So please take time to secure agreements with other providers – failure to not detail how all target groups will be recruited and assisted will mean your application may fail. We expect that providers will have established, or be in the final stages of establishing, partnerships prior to submitting their application. All providers intending to work in formal partnership (i.e. where the Applicant, as lead partner, will be paying other partners) must submit partnership agreements with their application which formalise roles and responsibilities within the partnership. As a minimum, a partnership agreement should contain sections on: - who the partners are - roles and responsibilities of each partner - the timescale for delivery - equal opportunities (that the partner must ensure equality of opportunity in line with the lead partner’s equal opportunities policy and London Councils and ESF requirements) - the other cross-cutting themes: sustainable development and health - monitoring (including which information the partner is required to keep and how often they are expected to report to the lead partner) - Risks/ mitigation/ contingency plans/ non-delivery/ dispute resolution - Audit (that the project will be subject to audit) - Management of partnership (e.g. steering group, partnership meetings) - Due diligence check of partner organisations (including are they solvent, eligible for London Councils funding) - termination - finance and payments (including how much money will be paid to the partner organisation by the lead organisation, what the money will cover) - deadlines for reporting to the lead partner - It is the lead partner's responsibility to ensure it holds all records relating to any aspect of delivery of the project (including those of partners) until December 2026. This is in line with ESF rules on document retention in ESF Programme Guidance https://www.gov.uk/government/publications/european-structural-and-investment-funds-programme-guidance. - Publicity Branding and publicity requirements for the 2014 to 2020 European Regional Development Fund and European Social Fund This type of agreement ensures that project delivery by project partners takes place as discussed and ensures that each partner is clear about what it needs to achieve as part of the project. 7. Submitting an application Gateway questions All applicants are required to complete a short series of gateway questions in order to determine their eligibility for funding. See Annex A. These will appear as the first stage of the application process once you have created an account. See below for details. If an application does not satisfy these questions, it will be considered ineligible. In such cases, the application and its annexes will not be scored. Before you begin writing your application The funded projects within the London Councils’ ESF Borough Employment Programme support the strategic objectives and priorities outlined in the London 2014-2020 ESIF Strategy and the ESF European Operational Programme 2014-2020. As a result, there are certain conditions for this funding which are outlined in the previous and following sections. Please read this guidance carefully before completing the application and consult us (please see our contact details in Section 19) if anything is unclear. If your organisation has previously applied for funding from London Councils, you are welcome to reapply in this round. However, please note that some changes have been made to the application form and to the process itself, as well as to the way in which London Councils will fund projects under this Round. If you have any queries relating to the project specifications and how to apply, please contact one of the London Councils ESF officers. If you need further guidance or support in putting together your application, you may contact London Voluntary Service Council (LVSC). They are planning to run 1:1 surgeries and workshops. It may be necessary to make an appointment to speak to LVSC and applicants are treated on a first come first served basis. Applications for the London Councils ESF Borough Employment Programme 2016-2018 have to be submitted through an online application process: https://www.grantrequest.com/SID_668/Default.asp?SA=SNA&FID=35071 Deadline for all applications: 12 noon, 23rd January 2017 Applications submitted after the deadline will not be considered for any reason. Leave yourself enough time to complete, review and amend the information you provide, upload the required documents and submit your online form before the deadline. Deadline days are often busy and you may not be able to reach a member of London Councils staff if you have any technical queries with submitting the form. All applications must be submitted through the online form and the Annexes provided on the Programme’s website, which, together with the prospectus, can be downloaded from here: http://www.londoncouncils.gov.uk/services/grants/esf The application form includes guidance for each section you need to complete and Annexes you need to upload. Each scored sections will indicate the maximum available score. Please note that your application includes the completion of the Risk Register and Track Record. These are also scored as standalone sections. All other attachments are not scored separately; however, they will support some of the scored sections and will be considered during the assessment process. The person scoring your application can only assess the information stated in your application. You must assume that they know nothing about your organisation, or the needs of your community, so be clear about what activities you are going to do and for whom. There will be no cross references of answers and each answer should be completed fully, as responses for any one question cannot be secured from an answer included for any other question. Things to remember about your online form Once you have created a log-in to our form, you can save your on-line application at any point and come back to it later. Once you have saved your on-line application you can open and change the form from any computer. Help: If you need further assistance/information. • Firstly read this guidance section. • Secondly refer to the FAQs (these will be updated regularly) http://www.londoncouncils.gov.uk/services/grants/esf-programme/documents • Thirdly if you still have not been able to find an answer then please email us. Your question and our response will be posted on the FAQs page. Please send your questions before 16th January 2017 as we may be unable to answer questions after that date. Completing your online application form i. Step one: Create an account login and access the online form Click on the following link https://www.grantrequest.com/SID_668/Default.asp?SA=SNA&FID=35071 to create a login and access a new form, (or copy and paste into your internet address bar). Now you will see this screen, where you create your account and login. - Click on ‘New Applicant’ - You will be taken to a new page New Applicant? An account allows you to access your saved and submitted applications at any time. It also allows us to send you a submission confirmation e-mail and notify you if additional information is necessary to process your application. E-mail Confirm E-mail Password (minimum of 5 characters) Confirm Password Continue - Enter your email address. The email address must work as we will be using this to contact you about your application and you need it to access a form that you have already started. • Verify your email address (by typing it again) • Create a password. It must be at least five letters long - for example - ‘Lychee’. • Verify password (by typing it again) • Click on the button marked ‘continue’ and you will move straight into the online form. You must remember your email address and password as you will need it every time you log into your account. You can save and close your form, by clicking on ‘save and finish later’ now and at any time and return to the form by accessing your account. To return to your account (where you can access forms already started) click on: http://www.GrantRequest.com/SID_668 ii. Step two: Complete the online form This part of the guidance includes details on how to complete the online application form. 1. Technical help for using the online form The information below will take you through how to use the online form to answer the questions. For most of the form you are asked to simply type your answers into a box under the question. Sometimes you are required to tick a box, select from options or upload a document. The guidance on completing each section is included within the question, upload area or the set template. You will only be able to write in plain text within the answer boxes, therefore you will not be able to use formatting features (e.g. bolding, underlining, resizing and spacing). You can structure your text by adding line breaks and empty rows. Please bear in mind that scorers will have large amounts of information to process, and that it is in your interest to be as clear and concise as possible. Mandatory fields You must answer all questions marked with a purple diamond. If you do not answer these questions you will not be able to submit your application. Spell check Where you see a red tick you can click on it to perform a spell check. Word limit There is a word limit to some questions. Where this is the case the counter will show you how many words are left from the total allowed. Please note that row breaks will not count toward the word count. Attachments You will be required to upload a number of attachments to your application form. Before you can attach the documents online you need electronic versions of your documents saved onto your computer. Retain the original format and file extension for all the set templates. If you don’t have electronic copies of other documents to be uploaded (e.g. Constitution) then you can scan the paper copies and save them in a folder on your computer. The maximum size for all attachments combined is 50MB. Files with .exe .com .vbs or .bat will not upload. Uploading a document is similar to attaching a document to an email. - To do this click on the ‘browse’ button next to the attachment you wish to upload. - This will take you to documents on your pc/network. Search for the correct folder. - Select the correct document and click ‘open’. - Now click on the button ‘upload’. - If you do not click ‘upload’ your document will not be uploaded to the form. - If you have uploaded the wrong document simply click on ‘remove’. 2. How to save, print and return to your form Saving your work Once you are into the question part of the form you can save what you’ve done and come back to it at any point by pressing the ‘save and finish later’ button. We strongly advise you to save your form as you go along. If you have not saved and your computer crashes you will lose all your work. Once you have saved your work you will be taken to this screen (below). Simply click on your application and carry on working. To return to your form Click on the following link. https://www.GrantRequest.com/SID_668 Log into your account using the email and password you created at the log in stage. You will see the screen above. To go back to your un-submitted application make sure the drop down menu states ‘In Progress Applications’ click onto the link to go back to your form. If you have submitted your form you can still view it as a link under the ‘Submitted Applications’ in the drop down menu. To print Click Save and finish, come back to your form. Click on button ‘printer friendly version’ to print. Please note you always need to click ‘save’ before printing your application so that your most up to date version prints out. Do not send us your printed version; simply use it to check your work. London Councils can only accept online applications (unless in exceptional circumstances in which we ask that you please contact us in advance, and within deadline date. Additionally, if you are a disability led organisation and need additional time to complete the application process, London Councils need to be informed of this within deadline date. Where an extension is awarded, London Councils will do this in writing before the standard submittal deadline. 3. Completing the form – questions The online application form is divided into five main sections: 1. Introduction; 2. Your organisation; 3. Your project summary; 4. Your project delivery; 5. Declaration. 6. Introduction The form starts with introductory text covering the assessment of applications. Please read this carefully. The information below will give you guidance on the information required to answer each question. Documents you will need: - Most attachments are compulsory to complete the application. These are marked with the sign; ✶ - Some attachments only apply if your proposed project has delivery partners 2. Your organisation Give details of the lead organisation applying for the funding on this page of the application form. You will also need to upload: - a signed and dated copy of your constitution or memorandum and articles of association and - a copy of your public and employer’s liability insurance certificates on this page. 3. Your project summary Provide general information about your project on this page. This includes the: - project title; - specification you are applying for; - delivery start and end dates; - project summary; - delivery partner details (including attachments if applicable); - contact details for referee. 4. Declaration This is the final page of the form. You must select ‘yes’ from the drop down menu if you agree that: - You have read and understood the information contained in the London Councils Application Prospectus; o the proposed activity is within the objects of your organisation's constitution; o London Councils will share the application form and its contents with the participating boroughs and the City of London Corporation; o this application has the support of your organisation's governing committee/board of trustees/senior management; o all the information you have supplied is accurate; o the information you have supplied about the proposed service is a realistic indication of what your organisation could achieve. IMPORTANT: You must select ‘YES’ for your application to be assessed. Requirements We are not permitted to consider any additional information received after the application deadline so please make sure that you have included all the required information and attachments. If you are aware that submitting an application may give rise to a potential conflict of interest please inform the London Councils. A conflict of interest maybe where you are related to a member or staff officer of London Councils or you have privileged information about London Councils that places you at an unfair advantage over other applicants in the application process. London Councils is subject to the requirements of the Freedom of Information Act 2000. You should be aware that the information you submit may be subject to a request for information from the public and London Councils may be required to provide information to external parties. Data protection Part or all of the information you give us will be held on computer and used for statistical purposes. It will also be used for the administration of applications and awards. We may provide copies of the information in confidence to individuals or organisations that are helping us assess applications or monitor funding. We may also be required to provide information contained in your application if we receive freedom of information request. Finishing the form - Now you are at the end of the form you may: - You may wish to save and finish later. You may wish to print a copy to proof read it and save it. - When you are ready to submit – click on ‘review and submit’ - If you have left any mandatory fields blank, or submitted the wrong kind of information (for example text in a box that can only accept numbers) a list of errors will appear in red as below. The red warning sign and red text will then appear next to any field that you need to amend. - IMPORTANT: Once you have amended the fields, click on the button marked ‘update’ or the changes will not be saved. - Once you have amended the fields and clicked ‘update’ a final version will appear for you to review. - Once you are happy click on the button marked ‘submit’ - You will be taken to your account page, where you will see the following message. Important information You must click ‘submit’ to send each application. You will automatically be sent a confirmation email with a copy of your submitted form. If you do not receive a confirmation email, you have not submitted your online form correctly. Please check and submit again. Once submitted you cannot amend your form but you can view it through your account. 8. Horizontal Principles (Formerly Cross Cutting Themes) London Councils’ ESF Programme 2014–2020 will focus on the ESF Investment Priority 1: Inclusive labour Markets to Improving the employability and skills of the unemployed and economically inactive people. There are also two Horizontal Principles that must be addressed in each funded project: Sustainable Development and Equal Opportunities and Non-Discrimination. Sustainable development The Sustainable Development principle of social, economic and environmental organisational responsibilities builds on the approach adopted in the 2007-2013 ESF programme and lessons learned during that programme. These sustainable developments were defined as developments which provided: - skills that businesses demand and require – now and in the future (support for the economy by expanding the labour market); - opportunities to allow everyone to fulfil their potential (support for social justice); and - environmental protection and enhancement through the delivery of projects (support for the environment). The objectives for ESF Programme 2014-2020 will be pursued in line with the Sustainable Development principle, including the aim of preserving, protecting and improving the quality of the environment as well as the need to prepare for expected changes to the environment and climate. London Council’s ESF Borough Employment programme will also support the Social Responsibility aspect of the Principle by achieving progress that recognises the needs of everyone and assists participants towards social inclusion and independent living through employment. Therefore project providers must have sustainable development governance, policies and implementation plans that explain: a) their commitment to promoting sustainable development and complying with relevant EU and domestic environmental legislation; and b) how the commitment will be turned into action at project level. During the life time of each ESF Borough Employment project, London Councils and GLA will be assessing compliance to these policies and plans. Projects will be monitored and this will include basic checks such as ensuring that sustainable development policies and implementation plans are in place and that appropriate action is being taken to implement them. Therefore your application should demonstrate an understanding of the need for good environmental performance and management in keeping with the ethos and achievement of sustainable development in the UK. All projects will be required to consider impact in relation to; energy, water, waste, purchasing and transport. You should also demonstrate how you will integrate relevant aspects of sustainable development into courses you run and/or use the environment as a medium for training delivery. You are required to provide a copy of your sustainable development and/or environmental policy at the application stage. If your organisation doesn’t have a sustainable development policy, please include a statement with your application explaining that the organisation does not yet have a sustainable development policy. Any organisation selected for London Councils ESF Borough Employment Programme funding that does not yet have a sustainable development policy will be required to implement such a policy by the end of the first year of delivery. Equal opportunities and non-discrimination London Councils’ ESF Borough Employment Programme will also promote equal opportunities and non-discrimination. All delivery partners will be required to adhere to the principles and processes set out in EU and UK equality legislation. The principles promote equality into the preparation, implementation, monitoring and evaluation of ESF funded activity: - no exclusion on the grounds of protected characteristics; - projects are designed to meet the needs of all potential participants; - services are responsive to the needs of all communities and under-represented groups; - support is targeted towards under-represented communities where relevant; - responsiveness to, and inclusiveness of, under-represented groups in delivery and management. ESF’s 2014-20 programme builds on the lessons learned from the ESF 2007-13 programmes, including the findings of an evaluation of the mainstreaming of gender equality and equal opportunities within the ESF in England in 2010(^\\text{32}). The lessons learnt can be found in research published in 2011 that focussed on the engagement of women in ESF provision(^\\text{33}) and an evidence report published in August 2013 on helping disabled people. As a result there is good practice guidance in promoting gender equality. It includes a checklist that will be used to help inform core criteria for project selection along with other equality-related criteria. The principles of equal opportunities is embedded in London Councils’ project selection arrangements, grant performance management and monitoring. In support of the principles, the ESF Borough Employment programme will target groups such as the long term unemployed people, inactive people, lone parents, disabled people, people from ethnic minorities, and older people, and we have set output targets to ensure that we help appropriate numbers of these people. The strategy section makes clear that as the economy improves our focus will increasingly be on those who face multiple disadvantages. All ESF activities should be accessible to disabled people and responsive to their needs. The investment priorities on access to employment and active inclusion can support activities focused on improving the employability of disabled people and those with health conditions. Active inclusion will help those furthest from employment and who often experience other disadvantages. ______________________________________________________________________ (^{32}) Evaluation of Gender Equality & Equal Opportunities within the European Social Fund by Carol McNaughton Nicholls, Martin Mitchell, Ashley Brown, Nulifer Rahim, Emma Drever and Cheryl Lloyd (^{33}) Skills Funding Agency: Engaging unemployed women in ESF funded training: research by National Institute of Adult Continuing Education for the Skills Funding Agency. September 2011 People from ethnic minorities should be able to access ESF provision in all investment priorities. Interventions must be tailored to the needs of people from different ethnic minority groups in each locality, and where appropriate targeted on specific groups. There is a strong case for interventions targeted at groups with low employment and high inactivity rates in the access to employment and active inclusion investment priorities, e.g. women of Pakistani and Bangladeshi origin, especially in areas with high concentrations of people from ethnic minorities. Activities in the access to employment, active inclusion and access to lifelong learning investment priorities will respond to the needs of older people. Specific activities will be delivered to help improve the participation of older women, depending on local needs. Equality between men and women Although female participation in the English labour market has increased, there is still a gender gap in employment of 11.7% with a male employment rate of 81.6% and a female rate of 69.9% (for those aged 20-64). Part of the gap can be attributed to different levels of inactivity in the labour market (26.1% for women and 13.5% for men, aged 20-64 in England). Labour Force Survey (LFS) data show that, at a UK level, 25% of economically inactive women would be interested in working. The Officer for National Statistics (ONS) report ‘Women in the Labour Market’ (2013) explained that the low ranking for female employment rates in London and Birmingham was linked to the diverse ethnic population with some women not in work due to looking after families. Looking at the most recent city data, Birmingham has the lowest employment rate for women (55.9% for women aged 16-64). Help should be aimed at inactive women from ethnic minorities in England’s cities, including those with caring responsibilities (child or elder care) and who are multiply disadvantaged. The extension of the state pension age for women has increased the number of older women in the scope of unemployment. Since 2010 there are more older (over 50) women in work and more looking for work – employment is up 655,000 and unemployment up 14,000 (UK figures). Disadvantaged older women should be targeted for support if they wish to find work (or stay in work). Some women want to work longer hours. There are 4.8 million females in England who work part-time and 1.5 million males. The majority work part-time because they want to – figures are not available for England but at a UK level, only 743,000 out of 6.07 million women (12.2%) work part-time because they couldn't find a full-time job. London Council and ESF funding within this Borough Employment programme will be used to help address these issues. Activities for ESF support should include innovative outreach and holistic support with a vocational focus. Providers must consider activities and support for at least one of these groups: - Inactive women from ethnic minorities, including those with child or elder care responsibilities, and who are often multiply disadvantaged. Barriers include: childcare; lack of skills or work experience due to starting family at a young age; no opportunity to acquire skills before starting a family. - Lone parents. Barriers include: inflexible jobs/employers (poor work/life balance), concerns about possible financial instability and lack of skills/recent skills. Examples of activities to be supported include job search skills, vocational training, remedial training and basic skills support. • Disadvantaged older unemployed women. Barriers include age discrimination, low confidence and elder care responsibilities. Activities to be supported include job search training, skills refresher training and mentoring/confidence building. • Women who are inactive but who would be interested in working. Barriers include lack of motivation and confidence, lack of skills, outdated skills and difficulties in travelling to work. Activities to be supported include confidence building support, job-search training, job-specific training, work experience and mentoring support. • Women seeking career advancement and/or progressing from part-time to full-time work, or at least increasing their hours at work. Barriers include seasonal work, sectors with a high concentration of part-time work and age (younger people are more likely to be underemployed). Activities to be supported include upskilling/vocational qualifications and identifying progression routes. (Investment Priority 2.1) Project applicants submitting applications will be required to explain how they will actively promote gender equality through the design and delivery of their projects. For example, a grant application for in-work training should require the applicant organisation to explain how it will ensure that female employees will have access to support, including those who may be working part-time and/or have childcare needs. Providers targeting disadvantaged people and other groups are also required under the Equality Act 2010 to do so with a corresponding gender focus. This will include actively encouraging more women to take part in the programme, as well as making sure that the type and nature of support offered is appropriate and helps meet the needs of women, including disadvantaged women. Programme providers will be expected to consider the needs of women in a number of key areas of design and delivery of their services, for example by: • promoting gender equality throughout their recruitment process; • offering information, advice and guidance; • providing or procuring childcare support where this might be a barrier to participation; • ensuring that the structure and content of the activities delivered are suitable and appropriate for women and men; • ensuring that provision is accessible, flexible and gender-sensitive where necessary. London Councils will ensure that there is regular monitoring of the participation rates for women and men. Results data will also be monitored and reported to GLA’s European Performance Management Unit (EPMU). 9. Monitoring and reporting on your project London Councils has to report to the Managing Authority for ESF on the progress of the ESF programme each quarter as part of the procedure for claiming funds. These reports will include data on participants, on project activities and on total expenditure. Successful applicants will therefore be required to submit reports at the end of each quarter. These reports will enable London Councils to meet the ESF and its own reporting requirements but will also form the basis for monitoring your project progress and achievements. Organisations will be given full advice in the pre-agreement phase on the information that must be recorded and reported and the implications for project procedures and systems. Employability Performance Rating ESF funded projects in London are also required to implement the Employability Performance Rating system. The Performance Rating is a comprehensive tool to benchmark the achievements of employability delivered by service providers in London. The rating system awards a rating of between four and zero stars against three key areas: Grant Performance, Quality and Grant Compliance. \| Key Area (KPA) \| Weighting of the KPA \| Indicators \| Weighting of Indicator \| \|-------------------------\|----------------------\|-------------------------------------------------\|------------------------\| \| Grant Performance \| 60% \| • Delivery against grant targets \| 48% \| \| \| \| • Delivery against grant diversity targets \| 12% \| \| Quality \| 30% \| • Conversion Factor \| 12% \| \| \| \| • Self-assessment of quality \| 9% \| \| \| \| • Participant Satisfaction \| 9% \| \| Grant Compliance \| 10% \| • Grant compliance and provider pro-activity \| 10% \| The Performance Rating is collected from funded projects quarterly with results made public and published biannually on the London Datastore (http://data.london.gov.uk/dataset/lepr-esf-2014-20). More information regarding the Employability Performance Rating requirements will be provided during the grant agreement process and the reporting systems will be provided to you. However an overview of the requirements can be found here: http://data.london.gov.uk/dataset/lepr-esf-2014-20 10. Financial information London Councils ESF programmes pay providers on the basis of unit prices per output and result. In other words, your project will be paid for the delivery of certain pre-specified outputs and results. The budget available for each output and results is fixed and stated in the project specification along with the specification descriptions. Please note that London Councils expects that your intended project delivery activities are not dependent on other sources of funding. By planning your delivery on the basis of actual costs, your organisation should be able to compare the anticipated budget for delivering the specification with the funding available. Please note that unless otherwise stated in the specification, the funding and, where appropriate, the number of outputs/results represent the maximum funding available. Please also note that London Councils reserves the right, in agreement with the participating boroughs, to reduce or increase the value of the grant by up to 100% in line with performance. You will be required to submit a project budget as part of your application. Whilst you will be paid on the basis of grant agreement costs, London Councils’ assessors will be looking at your project budget to check that your application represents value for money, and that all costs included are ESF eligible. Assessors will also be checking to see that you have included enough staff in your budget to deliver the project. In addition, assessors will be checking that you have included adequate provision for participant support measures such as childcare and also for publicity. Your budget is part of your application for funding and will be scored as such. Staff costs In this section of the application form you should provide details of all the costs that relate to staffing your project. List the job title of the staff member involved and a short explanation of how the cost was calculated. If there are any other costs relating to staff (e.g. travel, subsistence etc.) you should include them in this section. You should give a brief explanation of how you calculated your costs, to enable assessors to clearly understand what is being applied for. For example - \| Item \| Calculation \| Amount \| \|-----------------------\|--------------------------------------------------\|---------\| \| Trainer \| 5hrs per month x 9 months x £16 per hr \| £720 \| \| Travel to outreach centre \| 1 person x £3 x 2 per wk x 34 weeks \| £204 \| Participant costs In this section of the application form you should provide details of all the costs relating to items that you will provide to participants. For example, childcare, out of pocket travel costs, allowances, refreshments, equipment that participants may need for training (e.g. protective clothing), and so on. All entries should be itemised and calculations shown to explain the costs. For example: \| Item \| Calculation \| Amount \| \|-----------------------\|--------------------------------------------------\|---------\| \| Childcare/carer allowance \| £50 per wk x 7 people x 34 weeks \| £11,900 \| \| Travel \| 10 people x £3 x 3 per wk x 34 weeks \| £3,060 \| London Councils expects all projects to provide child or dependent care for participants as required in order to enable them to access the programme. Other costs In this section of the application form you should provide details of any other costs of your project, which do not relate to staff or participants. This will include other direct and indirect costs of the project, for example, small items of equipment, exam fees, publicity materials, postage, photocopying etc. Indirect costs, which are shared organisational costs e.g. rent, utilities, that cannot be connected directly to project activity and which are difficult to attribute to the project may be claimed but must be apportioned appropriately. Indirect project costs cannot represent more than 15% of the proposed budget. Eligible items of expenditure Funding can cover all the running costs of your project as long as they are ESF eligible (please see ESF National Eligibility rules [https://www.gov.uk/government/publications/european-structural-and-investment-funds-programme-guidance](https://www.gov.uk/government/publications/european-structural-and-investment-funds-programme-guidance)) and you list them in your application. When budgeting, if some items are used for both this project and your other activities, you should apportion the cost as appropriate. This funding does not cover capital expenditure; it only covers the costs associated with setting up and running your project. However you are permitted to include the purchase of small items of equipment under the value of £1000 per item which are necessary for the delivery of your project. 11. Publicity arrangements ESF funding carries requirements to adhere to the ESF 2014-20 publicity guidance: - ensure that potential and actual participants, project partners, and employers, are aware of the source of support; - publicise project successes; and - participate as far as is practicable in London and national ESF publicity initiatives, including providing information for public directories of projects. For example, London Councils and ESF logos should be present on all information and forms given to participants and included in all project publicity produced. Further guidance on publicity will be given to successful applicants. All publicity materials developed to advertise or promote the project will need to be made available for inspection and approved prior to use. ______________________________________________________________________ 34 The purchase of a computer is understood to be a maximum of £999 for the complete computer. You cannot claim separately for each component part such as the monitor, keyboard etc. The computer is to be a complete set up. Assessment against criteria All applications submitted under this round will be carefully assessed against the criteria set out in this guidance and their fit with the stated objectives will be judged. The Project’s proposed outputs and value for money will also be assessed e.g. assessors will check your budget to see that you have given due consideration to staff numbers and participant costs and the track record of your organisation will be considered. Funds are limited and not all projects that apply will receive funding. It is therefore important that you demonstrate in your project application how your project meets the criteria laid out in this guidance. Your project must fit the specification outlined in Section 2. Once the assessor is satisfied that your project and organisation is eligible for support, the rest of your application will be scored by awarding points against each of the assessment questions in the Application form. Instructions on completing the application form are included with each question in the application, and should be read carefully before you complete your answer. Each application will be scored separately by two independent assessors. The application form sets out the points available for each part of each question. Applications will also be assessed against your project’s ability to promote equality and social inclusion as well as sustainable development (Questions C7a) and b) – Horizontal Principles in the Application form). Applicants will therefore be required to score at least 3 marks (out of a possible 6 marks) for Question C7a)-Equal Opportunities and non-discrimination. And score at least 1 mark (out of a possible 6 marks) for Question C7b)-Sustainable development. If you do not achieve at least the minimum marks above for the above questions your application will not proceed. Please also note that: London Councils reserves the right to interview applicants where clarification on any application is needed. References London Councils intends to reference delivery organisations through its network of Borough grants officers, to verify whether the organisation has experience of working within the Boroughs and with the particular participant group relevant to this application. If you do not consider that the relevant officer has sufficient knowledge of your organisation to provide this reference, please supply details of an alternative referee in the application form. The appraisal panels Following scoring, an appraisal panel will be convened to assess each project on the criteria outlined above. The panel will comprise senior representatives from London Councils’ Grants Team. Other participants may be invited to join the appraisal panel should the number of applications warrant this. The appraisal panel will consider each project in score order, taking into account the further factors of value for money and the project’s fit within the strategic framework set out under the plan. The appraisal panel will also work to ensure that projects funded under the programme collectively target the whole range of target groups, that there is a good mix of projects and that there is a fair spread of projects geographically across London. related to need. The panel will consider the geographic coverage of the provision, and coverage will/could be a deciding factor when funding is awarded. The recommendations from the appraisal panel will then be presented to an independent external panel which will include: - a representative from a suitable general voluntary sector umbrella organisation; - other Borough Employment organisations; and - representatives of the Intermediate Body for ESF in London (the GLA’s European Programmes Management Unit). The external panel will take a strategic view of the projects submitted, including their duration, previous experience of the project as well as extent to which they contribute to the Pan London funding. This process will ensure that the projects chosen meet these aims and objectives. It will also help to ensure that there is no duplication of activities. Following this panel meeting, results will be made available to applicants. All applicants will be provided with their scores, and unsuccessful projects will be given feedback about the reasons for the decision, if requested in writing. This feedback will include a summary of the assessors’ comments to help clarify the reasons for the decision. Unsuccessful applicants will be given the right of appeal on certain conditions. Please also note that: London Councils reserves the right to interview applicants where clarification on any application is needed. The Pre-agreement meeting The Pre-agreement meeting will take place between the provider, London Councils appointed ESF performance manager and possibly a representative from the borough providing match funding. The meeting aims to outline the London Councils’ project delivery process including: - Roles and responsibilities between London Councils and your project - Review working relationships with project partners (include SLAs) - Confirmation of the outputs and results your project will deliver - Agreement of the Project’s Delivery Schedule - Review Risk Register and intended actions to manage risks - Explain London Councils’ ESF monitoring and payment arrangements - Confirm evidence requirements for expenditure, outputs and results - Confirm evaluation requirements - Confirm publicity requirements - Confirm General Data Protection Regulation requirements At the meeting, a list of actions will be drawn up which must be completed before your organisation can be awarded its funding agreement. These will include but are not limited to: - Your signed project delivery schedule profile - Your bank details template completed and stamped - Your Borough Cashflow forecast - Clarification of any outstanding due diligence issues or issues identified in your application • A signed copy of the Service Level Agreement’s between you and your partners. 12. Appeals The selection process will be as open, objective and fair as possible but because the amount of funding available through London Councils ESF Programme is limited, only a small number of projects can be supported. Due to the limited funding available, it is likely that a number of good proposals will not be successful. Most disappointed applicants think that their application deserved a higher score. No new information can be considered, but clarification or further explanation of a score or answer will be considered. A complaint based on the fact that the project has been successful in the past will not be investigated further. If London Councils agrees to consider an appeal the application will be re-scored independently (by people not involved in the original scoring) and re-appraised. This could result in an increase, a decrease or no change in the original total score. If the appeal is successful, London Councils will seek to enter into funding agreement with the provider where possible. 13. Payment arrangements London Councils provides an advance payment to all funded organisations. Up to 15% of the agreed grant will be paid in advance to providers upon satisfactory completion of funding agreements with London Councils. Payments in the final quarters of delivery will be reduced to take into account the initial first advance payment. London Councils will then pay providers quarterly in arrears on the basis of project costs. Projects will be paid for the delivery of pre-specified outputs and results. These are described in Section 2 Project Specifications. Please note: London Councils is generally unable to recover any Value Added Tax charged. Therefore, the maximum sum stated in the project specifications listed above includes any VAT or other taxes charged. Under the provision of item 5A to group 6 of schedule 9 of the VAT Act 1994, the supply of education or vocational training funded by London Councils, and the supply by the person providing that education or training, of any goods or services essential to that provision, is an exempt supply for VAT purposes. In addition, the maximum sum stated in the project specification should include provision for direct costs to participants such as childcare, travel, subsistence, or participant incentives. 14. Contacts For queries regarding the application process please contact: Maxine Quintyne-Kolaru, London Councils ESF Priority Manager [email protected] 020 7934 9835 Karen Ferguson, London Councils ESF Borough Employment Programme Manager [email protected] 020 7934 9954 Simon Courage, London Councils Head of Community Services and Grants. [email protected] 020 7934 9901 Ann Britton, London Councils ESF Performance Manager [email protected] 020 7934 9952 http://www.londoncouncils.gov.uk/services/grants/esf-programme For other support, including a discussion of your project, please contact: Support for Bidders VCS Assist 2.0 is an EU part-funded project supporting voluntary and community sector organisations in London to successfully access the European Social Fund and deliver ESF projects. It succeeds the VCS Assist project which operated during the 2007-2013 ESF Round. VCS Assist 2.0 project partners, London Voluntary Service Council and the Evelyn Oldfield Unit, will deliver: - One to one surgeries for organisations intending to apply for or holding ESF funding, providing a range of support from application guidance, complying with ESF requirements and ESF project management - Workshops focusing on particular skills required for ESF and opportunities - Forum events, bringing together organisations interested in ESF from across London to share information and provide networking opportunities - Regular updates on ESF opportunities and progress, including through the vcsassist.org.uk website and monthly e-bulletins. Further queries about the VCS Assist 2.0 programme should be directed to: Steve White, Policy Officer – Employment and Skills\ [email protected]\ [email protected]\ 020 7832 5811 London Voluntary Service Council (LVSC)\ 2nd floor, 200a Pentonville Road\ London N1 9JP http://www.lvsc.org.uk/ 15. ESF Programme Guidance Documents This section provides the latest information and guidance documents to help you understand how to develop and deliver ESF compliant projects. All providers should acquaint themselves with these guidance documents. The latest version of the documents below can be found at the following site: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/470206/ESIF_Publicity_Requirements_v2_221015.pdf Background Information on European Social Funds ESF Operational Programme for England 2014 to 2020 The European Social Fund Operational Programme sets out the strategy and priorities for use of the Fund to support the Europe 2020 strategy for smart, sustainable and inclusive growth. ESIF Strategy This document outlines; London’s key areas for ESF (and ERDF) investment against its Jobs and Growth Plan priorities. Project Delivery Information Eligibility rules for the 2014 to 2020 European Social Fund European Social Fund programme guidance European Social Fund data evidence requirements - eligibility and results guidance Branding and publicity requirements for the 2014 to 2020 European Regional Development Fund and European Social Fund European Social Fund guidance on document retention Output and result indicator definitions guidance for the European Social Fund This prospectus invites applications for ESF grants. It is not a procurement tender, however, providers under the prospectus may procure services and will therefore have to follow ESF procurement guidance: Procurement law compliance guidance note Procurement aide memoire for applicants and grant recipients Annex A Gateway questions: 1. Does your organisation have a Constitution, Memorandum of Association or Articles of Association? 2. Are you organisationally a going concern? 3. Does your organisation have a copy of its most recent signed accounts (audited accounts where required)? 4. Does your organisation have an Equal Opportunities Policy? 5. Does your organisation have a Sustainable Development Policy? 6. Does your organisation have a Health & Safety Policy? 7. Do you commit to taking out the appropriate levels of insurance required to deliver the project? 8. Will you provide the specified services of the project to residents of the boroughs where you are applying to deliver a project in and detailed in the relevant specification/s? (Haringey, Hounslow, Merton and Wandsworth)? 9. Can you provide evidence that your organisation has policies in place that adhere to the data protection act? Failure to provide any of the documents or other evidence specified may result in your application being not pursued. Should your application be successful, the provision of and our approval of, your organisation’s child and adult safeguarding policies will also be a condition of grant funding.	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/1464-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 71, "total-input-tokens": 156962, "total-output-tokens": 34312, "total-fallback-pages": 1 }	{ "pdf_page_numbers": [ [ 0, 199, 1 ], [ 199, 3137, 2 ], [ 3137, 5605, 3 ], [ 5605, 8170, 4 ], [ 8170, 9743, 5 ], [ 9743, 9766, 6 ], [ 9766, 12587, 7 ], [ 12587, 15645, 8 ], [ 15645, 17815, 9 ], [ 17815, 21577, 10 ], [ 21577, 25076, 11 ], [ 25076, 27904, 12 ], [ 27904, 28989, 13 ], [ 28989, 30558, 14 ], [ 30558, 33480, 15 ], [ 33480, 35987, 16 ], [ 35987, 37172, 17 ], [ 37172, 39977, 18 ], [ 39977, 43074, 19 ], [ 43074, 45458, 20 ], [ 45458, 48660, 21 ], [ 48660, 51903, 22 ], [ 51903, 53110, 23 ], [ 53110, 56188, 24 ], [ 56188, 57244, 25 ], [ 57244, 60551, 26 ], [ 60551, 63493, 27 ], [ 63493, 66960, 28 ], [ 66960, 70222, 29 ], [ 70222, 72621, 30 ], [ 72621, 73196, 31 ], [ 73196, 76227, 32 ], [ 76227, 79461, 33 ], [ 79461, 82747, 34 ], [ 82747, 85341, 35 ], [ 85341, 87470, 36 ], [ 87470, 88503, 37 ], [ 88503, 90250, 38 ], [ 90250, 93250, 39 ], [ 93250, 96076, 40 ], [ 96076, 99183, 41 ], [ 99183, 102177, 42 ], [ 102177, 103016, 43 ], [ 103016, 106004, 44 ], [ 106004, 107779, 45 ], [ 107779, 109961, 46 ], [ 109961, 111303, 47 ], [ 111303, 113163, 48 ], [ 113163, 114903, 49 ], [ 114903, 116301, 50 ], [ 116301, 116793, 51 ], [ 116793, 117127, 52 ], [ 117127, 117660, 53 ], [ 117660, 120018, 54 ], [ 120018, 120487, 55 ], [ 120487, 120862, 56 ], [ 120862, 123683, 57 ], [ 123683, 127074, 58 ], [ 127074, 130625, 59 ], [ 130625, 133188, 60 ], [ 133188, 135858, 61 ], [ 135858, 139204, 62 ], [ 139204, 141876, 63 ], [ 141876, 145107, 64 ], [ 145107, 147828, 65 ], [ 147828, 148936, 66 ], [ 148936, 150225, 67 ], [ 150225, 151861, 68 ], [ 151861, 152171, 69 ], [ 152171, 153824, 70 ], [ 153824, 155034, 71 ] ] }
d945f19f7ac5c787e001937c1ca5d828efd50eca	Travel in London 10 supplementary information Borough Local Implementation Plan (LIP) performance indicators Monitoring of borough LIPs Under Section 145 of the GLA Act 1999, each London borough is required to produce a Local Implementation Plan (LIP) setting out how it intends to contribute towards the implementation of the Mayor’s Transport Strategy (MTS). As well as outlining the borough’s local transport objectives, a LIP should detail the specific interventions and schemes intended to contribute towards meeting the MTS goals, challenges and opportunities. A clear strategy for monitoring the performance should also be included. As part of the process of monitoring LIPs, progress will be tracked against six strategic performance indicators – on mode share, bus service reliability, road traffic casualties, CO₂ emissions and asset (highway) condition – all relate to key priorities within the MTS over which London boroughs have a degree of influence. This section sets out updated data for the LIP performance indicators for 2016 and 2016/17. List of tables Table 1 Londoners’ trips by borough of origin, trips per day and shares by main mode, average day (7-day week) 2014/15 to 2016/17. Three-year average data showing the mode share for London residents for trips originating in each borough, from TfL’s London Travel Demand Survey. Table 2 Bus service reliability indicator: mean excess waiting time by borough for all high-frequency routes, 2011/12 to 2016/17. Data from TfL London Buses, based on Quality of Service Indicators. Table 3 Road casualties, number of people killed or seriously injured in road traffic collisions by borough, 2012 to 2016. Table 4 Road casualties, number of people slightly injured in road traffic collisions by borough, 2012 to 2016. Data from TfL City Planning – Data & Spatial Analysis, using the STATS 19 form with a 2005-2009 baseline. Table 5 Locally generated CO₂ emissions by borough: principal sources and per capita emissions for resident population, 2013. Data from the London Atmospheric Emissions Inventory. Table 6 Highway Asset Condition – the percentage of the principal road network length which is in poor overall condition and requires maintenance based on Detailed Visual Inspection survey data, 2014/15, 2015/16 and 2016/17. Due to a change in methodology the figures in Table 6 are not consistent with figures published before 2011/12. Table 1 Londoners’ trips by borough of origin, trips per day and shares by main mode, average day (7-day week) 2014/15 to 2016/17. \| London borough \| Trips per day (000s) \| Rail \| Underground /DLR \| Bus/ tram \| Taxi/ other \| Car/ motorcycle \| Cycle \| Walk \| All modes \| \|--------------------------------\|----------------------\|------\|------------------\|-----------\|-------------\|-----------------\|-------\|------\|-----------\| \| Camden \| 733 \| 7% \| 19% \| 13% \| 2% \| 13% \| 4% \| 42% \| 100% \| \| City of London \| 282 \| 21% \| 28% \| 8% \| 4% \| 4% \| 4% \| 32% \| 100% \| \| Hackney \| 473 \| 6% \| 7% \| 19% \| 2% \| 16% \| 6% \| 44% \| 100% \| \| Hammersmith & Fulham \| 462 \| 4% \| 17% \| 14% \| 2% \| 19% \| 5% \| 41% \| 100% \| \| Haringey \| 494 \| 4% \| 9% \| 20% \| 1% \| 26% \| 3% \| 38% \| 100% \| \| Islington \| 560 \| 6% \| 14% \| 17% \| 2% \| 15% \| 5% \| 41% \| 100% \| \| Kensington & Chelsea \| 409 \| 4% \| 17% \| 14% \| 5% \| 19% \| 4% \| 37% \| 100% \| \| Lambeth \| 683 \| 7% \| 12% \| 21% \| 2% \| 21% \| 4% \| 35% \| 100% \| \| Lewisham \| 551 \| 9% \| 3% \| 18% \| 1% \| 33% \| 3% \| 33% \| 100% \| \| Newham \| 632 \| 3% \| 15% \| 18% \| 1% \| 26% \| 2% \| 35% \| 100% \| \| Southwark \| 703 \| 8% \| 9% \| 19% \| 1% \| 23% \| 3% \| 37% \| 100% \| \| Tower Hamlets \| 588 \| 6% \| 22% \| 11% \| 2% \| 17% \| 4% \| 38% \| 100% \| \| Wandsworth \| 642 \| 8% \| 7% \| 14% \| 1% \| 31% \| 4% \| 35% \| 100% \| \| Westminster \| 1,132 \| 8% \| 25% \| 14% \| 4% \| 9% \| 3% \| 37% \| 100% \| \| Inner London \| 8,343 \| 7% \| 15% \| 16% \| 2% \| 19% \| 4% \| 38% \| 100% \| \| Barking & Dagenham \| 257 \| 3% \| 9% \| 16% \| 1% \| 44% \| 2% \| 27% \| 100% \| \| Barnet \| 809 \| 2% \| 7% \| 13% \| 1% \| 46% \| 1% \| 31% \| 100% \| \| Bexley \| 428 \| 5% \| 0% \| 12% \| 1% \| 58% \| 1% \| 24% \| 100% \| \| Brent \| 532 \| 2% \| 10% \| 17% \| 1% \| 39% \| 3% \| 28% \| 100% \| \| Bromley \| 727 \| 7% \| 0% \| 10% \| 1% \| 56% \| 1% \| 25% \| 100% \| \| Croydon \| 755 \| 7% \| 0% \| 16% \| 1% \| 51% \| 1% \| 25% \| 100% \| \| Ealing \| 611 \| 2% \| 8% \| 18% \| 1% \| 37% \| 2% \| 32% \| 100% \| \| Enfield \| 617 \| 3% \| 4% \| 13% \| 1% \| 48% \| 2% \| 30% \| 100% \| \| Greenwich \| 542 \| 5% \| 6% \| 16% \| 1% \| 40% \| 2% \| 30% \| 100% \| \| Harrow \| 460 \| 1% \| 7% \| 10% \| 1% \| 50% \| 1% \| 30% \| 100% \| \| Havering \| 426 \| 5% \| 2% \| 14% \| 1% \| 54% \| 1% \| 24% \| 100% \| \| Hillingdon \| 614 \| 2% \| 6% \| 11% \| 3% \| 56% \| 1% \| 21% \| 100% \| \| Hounslow \| 461 \| 4% \| 6% \| 14% \| 1% \| 44% \| 3% \| 29% \| 100% \| \| Kingston upon Thames \| 379 \| 8% \| 1% \| 12% \| 1% \| 42% \| 4% \| 33% \| 100% \| \| Merton \| 429 \| 6% \| 6% \| 12% \| 1% \| 43% \| 3% \| 30% \| 100% \| \| Redbridge \| 440 \| 3% \| 9% \| 9% \| 1% \| 53% \| 1% \| 25% \| 100% \| \| Richmond upon Thames \| 456 \| 7% \| 3% \| 10% \| 1% \| 39% \| 7% \| 34% \| 100% \| \| Sutton \| 392 \| 6% \| 1% \| 10% \| 1% \| 54% \| 2% \| 26% \| 100% \| \| Waltham Forest \| 485 \| 2% \| 8% \| 13% \| 1% \| 39% \| 2% \| 34% \| 100% \| \| Outer London \| 9,821 \| 4% \| 5% \| 13% \| 1% \| 47% \| 2% \| 28% \| 100% \| \| Greater London \| 18,165 \| 5% \| 9% \| 14% \| 2% \| 34% \| 3% \| 33% \| 100% \| Note: Whilst these data are provided annually, based on moving 3-year samples, the data to be used for monitoring performance towards achievement of targets will be for discrete (non-overlapping) three year blocks, in order to reduce statistical sampling error. ### Borough Local Implementation Plan (LIP) performance indicators #### Table 2 Bus service reliability indicator: mean excess waiting time by borough for all high-frequency routes, 2011/12 to 2016/17. \| London borough \| 2011/2012 EWT \| 2012/2013 EWT \| 2013/2014 EWT \| 2014/15 EWT \| 2015/16 EWT \| 2016/17 EWT \| \|--------------------------------\|---------------\|---------------\|---------------\|-------------\|-------------\|-------------\| \| Barking & Dagenham \| 0.8 \| 0.8 \| 0.9 \| 1.1 \| 1.2 \| 1.1 \| \| Barnet \| 0.9 \| 1.0 \| 1.0 \| 1.0 \| 1.1 \| 1.0 \| \| Bexley \| 1.1 \| 0.9 \| 1.0 \| 1.1 \| 1.2 \| 1.1 \| \| Brent \| 1.0 \| 1.1 \| 1.0 \| 1.1 \| 1.2 \| 1.1 \| \| Bromley \| 0.9 \| 0.9 \| 1.1 \| 1.1 \| 1.1 \| 1.1 \| \| Camden \| 1.1 \| 1.1 \| 1.1 \| 1.1 \| 1.2 \| 1.1 \| \| City of London \| 1.2 \| 1.1 \| 1.1 \| 1.3 \| 1.4 \| 1.2 \| \| Croydon \| 0.8 \| 0.9 \| 1.0 \| 1.0 \| 1.0 \| 1.0 \| \| Ealing \| 0.9 \| 1.1 \| 1.0 \| 1.1 \| 1.1 \| 1.2 \| \| Enfield \| 0.9 \| 1.0 \| 1.1 \| 1.1 \| 1.1 \| 1.1 \| \| Greenwich \| 1.1 \| 1.0 \| 1.0 \| 1.2 \| 1.3 \| 1.2 \| \| Hackney \| 1.1 \| 1.1 \| 1.1 \| 1.2 \| 1.3 \| 1.1 \| \| Hammersmith & Fulham \| 1.1 \| 1.2 \| 1.1 \| 1.1 \| 1.1 \| 1.1 \| \| Haringey \| 1.0 \| 1.0 \| 1.1 \| 1.1 \| 1.1 \| 1.0 \| \| Harrow \| 0.8 \| 0.9 \| 0.9 \| 1.0 \| 1.2 \| 1.1 \| \| Havering \| 0.8 \| 0.8 \| 0.8 \| 0.9 \| 1.1 \| 1.1 \| \| Hillingdon \| 0.8 \| 1.0 \| 0.9 \| 1.0 \| 1.0 \| 1.1 \| \| Hounslow \| 1.0 \| 1.1 \| 0.9 \| 1.0 \| 1.0 \| 1.1 \| \| Islington \| 1.0 \| 1.1 \| 1.1 \| 1.2 \| 1.2 \| 1.1 \| \| Kensington & Chelsea \| 1.2 \| 1.2 \| 1.2 \| 1.1 \| 1.2 \| 1.2 \| \| Kingston upon Thames \| 1.0 \| 1.0 \| 1.0 \| 1.0 \| 1.0 \| 0.9 \| \| Lambeth \| 1.1 \| 1.1 \| 1.0 \| 1.2 \| 1.2 \| 1.1 \| \| Lewisham \| 1.1 \| 1.0 \| 1.1 \| 1.2 \| 1.3 \| 1.2 \| \| Merton \| 1.0 \| 1.0 \| 1.0 \| 1.1 \| 1.1 \| 1.0 \| \| Newham \| 1.1 \| 1.0 \| 1.0 \| 1.1 \| 1.3 \| 1.2 \| \| Redbridge \| 1.0 \| 1.0 \| 1.0 \| 1.2 \| 1.3 \| 1.1 \| \| Richmond upon Thames \| 1.1 \| 1.0 \| 0.9 \| 1.0 \| 1.0 \| 1.0 \| \| Southwark \| 1.1 \| 1.0 \| 1.1 \| 1.2 \| 1.3 \| 1.2 \| \| Sutton \| 0.9 \| 0.9 \| 1.0 \| 1.1 \| 1.1 \| 0.9 \| \| Tower Hamlets \| 1.1 \| 1.2 \| 1.1 \| 1.2 \| 1.4 \| 1.2 \| \| Waltham Forest \| 1.2 \| 1.2 \| 1.1 \| 1.2 \| 1.2 \| 1.1 \| \| Wandsworth \| 1.1 \| 1.1 \| 1.1 \| 1.1 \| 1.2 \| 1.1 \| \| Westminster \| 1.1 \| 1.1 \| 1.1 \| 1.2 \| 1.2 \| 1.2 \| \| Greater London \| 1.0 \| 1.0 \| 1.0 \| 1.1 \| 1.1 \| 1.1 \| Table 3 Road casualties, number of people killed or seriously injured in road traffic collisions by borough, 2012 to 2016. \| London borough \| 2005-2009 average \| 2012 \| 2013 \| 2014 \| 2015 \| 2016 \| 2015 to 2016 \| 2005-2009 average to 2016 \| \|---------------------------------\|-------------------\|------\|------\|------\|------\|------\|--------------\|---------------------------\| \| Barking & Dagenham \| 57 \| 47 \| 45 \| 40 \| 30 \| 43 \| 43% \| -25% \| \| Barnet \| 145 \| 112 \| 131 \| 98 \| 92 \| 74 \| -20% \| -49% \| \| Bexley \| 90 \| 55 \| 31 \| 24 \| 30 \| 51 \| 70% \| -43% \| \| Brent \| 105 \| 86 \| 84 \| 85 \| 81 \| 98 \| 21% \| -7% \| \| Bromley \| 141 \| 90 \| 70 \| 50 \| 77 \| 92 \| 19% \| -35% \| \| Camden \| 125 \| 114 \| 105 \| 70 \| 76 \| 91 \| 20% \| -27% \| \| City of London \| 50 \| 58 \| 60 \| 55 \| 43 \| 51 \| 19% \| 2% \| \| Croydon \| 141 \| 107 \| 71 \| 71 \| 65 \| 76 \| 17% \| -46% \| \| Ealing \| 130 \| 88 \| 81 \| 81 \| 63 \| 92 \| 46% \| -29% \| \| Enfield \| 108 \| 86 \| 72 \| 52 \| 70 \| 73 \| 4% \| -32% \| \| Greenwich \| 117 \| 73 \| 28 \| 40 \| 54 \| 48 \| -11% \| -59% \| \| Hackney \| 127 \| 147 \| 83 \| 60 \| 82 \| 98 \| 20% \| -23% \| \| Hammersmith & Fulham \| 109 \| 80 \| 53 \| 69 \| 62 \| 79 \| 27% \| -28% \| \| Haringey \| 93 \| 107 \| 106 \| 85 \| 62 \| 76 \| 23% \| -18% \| \| Harrow \| 58 \| 46 \| 38 \| 51 \| 46 \| 44 \| -4% \| -24% \| \| Havering \| 98 \| 78 \| 51 \| 46 \| 67 \| 80 \| 19% \| -18% \| \| Hillingdon \| 108 \| 83 \| 59 \| 84 \| 66 \| 71 \| 8% \| -34% \| \| Hounslow \| 114 \| 73 \| 64 \| 62 \| 67 \| 78 \| 16% \| -32% \| \| Islington \| 87 \| 122 \| 71 \| 93 \| 89 \| 81 \| -9% \| -7% \| \| Kensington & Chelsea \| 111 \| 94 \| 64 \| 69 \| 52 \| 69 \| 33% \| -38% \| \| Kingston upon Thames \| 61 \| 34 \| 37 \| 39 \| 29 \| 38 \| 31% \| -38% \| \| Lambeth \| 176 \| 151 \| 133 \| 98 \| 99 \| 122 \| 23% \| -31% \| \| Lewisham \| 125 \| 102 \| 64 \| 63 \| 53 \| 67 \| 26% \| -46% \| \| Merton \| 65 \| 65 \| 32 \| 50 \| 36 \| 44 \| 22% \| -32% \| \| Newham \| 88 \| 77 \| 57 \| 64 \| 72 \| 84 \| 17% \| -5% \| \| Redbridge \| 88 \| 93 \| 51 \| 48 \| 55 \| 71 \| 29% \| -19% \| \| Richmond upon Thames \| 74 \| 52 \| 48 \| 54 \| 38 \| 48 \| 26% \| -35% \| \| Southwark \| 140 \| 117 \| 87 \| 69 \| 89 \| 81 \| -9% \| -42% \| \| Sutton \| 70 \| 42 \| 31 \| 29 \| 22 \| 30 \| 36% \| -57% \| \| Tower Hamlets \| 127 \| 168 \| 87 \| 88 \| 68 \| 121 \| 78% \| -5% \| \| Waltham Forest \| 90 \| 69 \| 54 \| 61 \| 48 \| 60 \| 25% \| -33% \| \| Wandsworth \| 131 \| 109 \| 99 \| 81 \| 74 \| 98 \| 32% \| -25% \| \| Westminster \| 275 \| 193 \| 177 \| 138 \| 135 \| 172 \| 27% \| -37% \| \| Greater London \| 3,627 \| 3,018\| 2,324\| 2,167\| 2,092\| 2,501\| 20% \| -31% \| ### Borough Local Implementation Plan (LIP) performance indicators #### Table 4 Road casualties, number of people slightly injured in road traffic collisions by borough, 2012 to 2016. \| London borough \| 2005-2009 average \| 2012 \| 2013 \| 2014 \| 2015 \| 2016 \| 2015 to 2016 \| 2005-2009 average to 2016 \| \|---------------------------------\|-------------------\|------\|------\|------\|------\|------\|--------------\|--------------------------\| \| Barking & Dagenham \| 546 \| 529 \| 475 \| 609 \| 592 \| 629 \| 6% \| 15% \| \| Barnet \| 1199 \| 1150 \| 1097 \| 1178 \| 1228 \| 1165 \| -5% \| -3% \| \| Bexley \| 554 \| 476 \| 439 \| 532 \| 524 \| 520 \| -1% \| -6% \| \| Brent \| 813 \| 872 \| 873 \| 982 \| 1008 \| 1049 \| 4% \| 29% \| \| Bromley \| 788 \| 731 \| 718 \| 818 \| 866 \| 831 \| -4% \| 5% \| \| Camden \| 777 \| 726 \| 760 \| 967 \| 1010 \| 828 \| -18% \| 7% \| \| City of London \| 319 \| 365 \| 285 \| 335 \| 339 \| 354 \| 4% \| 11% \| \| Croydon \| 1067 \| 1033 \| 1021 \| 1043 \| 982 \| 1026 \| 4% \| -4% \| \| Ealing \| 1025 \| 1076 \| 1069 \| 1209 \| 1133 \| 1166 \| 3% \| 14% \| \| Enfield \| 925 \| 952 \| 940 \| 951 \| 981 \| 922 \| -6% \| 0% \| \| Greenwich \| 802 \| 698 \| 661 \| 730 \| 734 \| 719 \| -2% \| -10% \| \| Hackney \| 821 \| 842 \| 807 \| 960 \| 892 \| 918 \| 3% \| 12% \| \| Hammersmith & Fulham \| 636 \| 645 \| 625 \| 694 \| 628 \| 659 \| 5% \| 4% \| \| Haringey \| 737 \| 783 \| 812 \| 1015 \| 1030 \| 985 \| -4% \| 34% \| \| Harrow \| 476 \| 451 \| 404 \| 542 \| 502 \| 466 \| -7% \| -2% \| \| Havering \| 805 \| 685 \| 622 \| 727 \| 794 \| 783 \| -1% \| -3% \| \| Hillingdon \| 920 \| 972 \| 641 \| 860 \| 903 \| 742 \| -18% \| -19% \| \| Hounslow \| 844 \| 825 \| 839 \| 1001 \| 939 \| 979 \| 4% \| 16% \| \| Islington \| 655 \| 750 \| 789 \| 875 \| 885 \| 812 \| -8% \| 24% \| \| Kensington & Chelsea \| 707 \| 638 \| 661 \| 721 \| 656 \| 702 \| 7% \| -1% \| \| Kingston upon Thames \| 369 \| 388 \| 433 \| 435 \| 353 \| 313 \| -11% \| -15% \| \| Lambeth \| 1058 \| 1085 \| 1214 \| 1294 \| 1301 \| 1338 \| 3% \| 26% \| \| Lewisham \| 842 \| 896 \| 876 \| 976 \| 960 \| 983 \| 2% \| 17% \| \| Merton \| 456 \| 471 \| 481 \| 567 \| 565 \| 579 \| 2% \| 27% \| \| Newham \| 926 \| 847 \| 773 \| 901 \| 1060 \| 1033 \| -3% \| 12% \| \| Redbridge \| 778 \| 801 \| 747 \| 951 \| 904 \| 846 \| -6% \| 9% \| \| Richmond upon Thames \| 412 \| 421 \| 482 \| 555 \| 409 \| 455 \| 11% \| 10% \| \| Southwark \| 996 \| 936 \| 905 \| 1045 \| 929 \| 1068 \| 15% \| 7% \| \| Sutton \| 506 \| 449 \| 454 \| 391 \| 350 \| 396 \| 13% \| -22% \| \| Tower Hamlets \| 849 \| 1027 \| 933 \| 1133 \| 1179 \| 1151 \| -2% \| 36% \| \| Waltham Forest \| 775 \| 661 \| 580 \| 891 \| 757 \| 761 \| 1% \| -2% \| \| Wandsworth \| 793 \| 1013 \| 904 \| 1043 \| 1024 \| 987 \| -4% \| 24% \| \| Westminster \| 1420 \| 1568 \| 1555 \| 1687 \| 1673 \| 1604 \| -4% \| 13% \| \| Greater London \| 25,600 \| 25,762 \| 24,875 \| 28,618 \| 28,090 \| 27,769 \| -1% \| 8% \| Table 5 Locally generated CO\\textsubscript{2} emissions by borough: principal sources and per capita emissions for resident population, 2013. \| London borough \| Road transport (2013) \| Ground-based aviation (2013) \| Other transport (2013) \| Total ground-based transport (2013) \| Population ('000s) \| Ground-based transport tonnes per capita \| \|-------------------------\|-----------------------\|-----------------------------\|------------------------\|-------------------------------------\|-------------------\|------------------------------------------\| \| Barking & Dagenham \| 137 \| 0 \| 8 \| 145 \| 201 \| 0.7 \| \| Barnet \| 398 \| 0 \| 5 \| 403 \| 377 \| 1.1 \| \| Bexley \| 192 \| 8 \| 5 \| 205 \| 239 \| 0.9 \| \| Brent \| 212 \| 0 \| 8 \| 220 \| 326 \| 0.7 \| \| Bromley \| 258 \| 1 \| 1 \| 260 \| 321 \| 0.8 \| \| Camden \| 161 \| 0 \| 7 \| 168 \| 232 \| 0.7 \| \| City of London \| 54 \| 1 \| 2 \| 58 \| 8 \| 7.2 \| \| Croydon \| 242 \| 0 \| 1 \| 244 \| 378 \| 0.6 \| \| Ealing \| 289 \| 0 \| 13 \| 302 \| 350 \| 0.9 \| \| Enfield \| 370 \| 0 \| 1 \| 371 \| 328 \| 1.1 \| \| Greenwich \| 224 \| 6 \| 5 \| 235 \| 267 \| 0.9 \| \| Hackney \| 125 \| 0 \| 1 \| 126 \| 262 \| 0.5 \| \| Hammersmith & Fulham \| 116 \| 15 \| 3 \| 134 \| 182 \| 0.7 \| \| Haringey \| 139 \| 0 \| 2 \| 141 \| 267 \| 0.5 \| \| Harrow \| 142 \| 0 \| 3 \| 145 \| 250 \| 0.6 \| \| Havering \| 356 \| 3 \| 2 \| 361 \| 246 \| 1.5 \| \| Hillingdon \| 417 \| 717 \| 10 \| 1145 \| 294 \| 3.9 \| \| Hounslow \| 294 \| 104 \| 0 \| 398 \| 270 \| 1.5 \| \| Islington \| 103 \| 0 \| 2 \| 105 \| 221 \| 0.5 \| \| Kensington & Chelsea \| 122 \| 2 \| 2 \| 126 \| 156 \| 0.8 \| \| Kingston \| 162 \| 0 \| 1 \| 162 \| 169 \| 1 \| \| Lambeth \| 170 \| 0 \| 2 \| 172 \| 319 \| 0.5 \| \| Lewisham \| 158 \| 0 \| 1 \| 159 \| 291 \| 0.5 \| \| Merton \| 135 \| 0 \| 1 \| 136 \| 209 \| 0.6 \| \| Newham \| 186 \| 38 \| 4 \| 227 \| 332 \| 0.7 \| \| Redbridge \| 258 \| 1 \| 1 \| 259 \| 296 \| 0.9 \| \| Richmond \| 167 \| 44 \| 0 \| 211 \| 194 \| 1.1 \| \| Southwark \| 167 \| 1 \| 3 \| 171 \| 304 \| 0.6 \| \| Sutton \| 115 \| 0 \| 0 \| 115 \| 199 \| 0.6 \| \| Tower Hamlets \| 163 \| 12 \| 6 \| 181 \| 280 \| 0.6 \| \| Waltham Forest \| 181 \| 1 \| 2 \| 184 \| 273 \| 0.7 \| \| Wandsworth \| 175 \| 13 \| 1 \| 190 \| 316 \| 0.6 \| \| Westminster \| 264 \| 0 \| 4 \| 269 \| 230 \| 1.2 \| \| Greater London \| 6,652 \| 969 \| 107 \| 7,728 \| 8,587 \| 0.9 \| Table 6 Highway Asset Condition – the percentage of the principal road network length which is in poor overall condition and requires maintenance based on Detailed Visual Inspection survey data, 2014/15, 2015/16 and 2016/17. \| London borough \| 2014/15 \| 2015/16 \| 2016/17 \| \|---------------------------------\|---------\|---------\|---------\| \| Barking & Dagenham \| 7.3 \| 9.4 \| 2.7 \| \| Barnet \| 19.9 \| 24.9 \| 31.1 \| \| Bexley \| 2.5 \| 3.9 \| 4.5 \| \| Brent \| 16 \| 21.6 \| 17.1 \| \| Bromley \| 6.2 \| 7.2 \| 6.6 \| \| Camden \| 23.2 \| 5.7 \| 9.4 \| \| City of London \| 7.4 \| 4.7 \| 6.4 \| \| Croydon \| 33.4 \| 36.3 \| 13.2 \| \| Ealing \| 20.2 \| 20.4 \| 24.4 \| \| Enfield \| 16.5 \| 16.3 \| 18.4 \| \| Greenwich \| 15.7 \| 14.5 \| 10.1 \| \| Hackney \| 22.7 \| 15.9 \| 12.7 \| \| Hammersmith & Fulham \| 10.6 \| 9.5 \| 13.6 \| \| Haringey \| 10.2 \| 10.9 \| 19.0 \| \| Harrow \| 34.4 \| 30.7 \| 9.0 \| \| Havering \| 6.6 \| 10.4 \| 8.5 \| \| Hillingdon \| 14.8 \| 18.6 \| 11.8 \| \| Hounslow \| 11.5 \| 12.6 \| 2.8 \| \| Islington \| 15.3 \| 11.9 \| 13.3 \| \| Kensington & Chelsea \| 9.1 \| 6.1 \| 5.9 \| \| Kingston upon Thames \| 19 \| 17.8 \| 18.2 \| \| Lambeth \| 30.6 \| 31 \| 8.8 \| \| Lewisham \| 22.4 \| 25.7 \| 10.6 \| \| Merton \| 15.4 \| 15.9 \| 8.8 \| \| Newham \| 5.7 \| 12.1 \| 10.3 \| \| Redbridge \| 6.2 \| 7.5 \| 7.8 \| \| Richmond upon Thames \| 14.8 \| 16.6 \| 21.9 \| \| Southwark \| 26 \| 25.4 \| 7.9 \| \| Sutton \| 14.7 \| 16.2 \| 11.9 \| \| Tower Hamlets \| 12.8 \| 10.8 \| 8.7 \| \| Waltham Forest \| 25.5 \| 15.7 \| 17.7 \| \| Wandsworth \| 16.6 \| 13.8 \| 9.9 \| \| Westminster \| 23.3 \| 6.3 \| 8.6 \| \| Greater London \| 16 \| 15.3\| 12.6\| Note: Please note that these figures are not consistent with DVI surveys published before 2011/12.	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ 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88e20353024ee9ebef1d7e43072c5fdee0a8b830	Bus Passenger Satisfaction Survey Annual report for 2010/2011 and quarterly results for quarter 1 2011 Passenger Focus research In February 2010 Passenger Focus’s remit was extended to include bus, coach and tram passenger representation in England, outside London. This was in addition to the watchdog’s existing role of representing Britain’s rail passengers. Bus Passenger Satisfaction Survey The Bus Passenger Satisfaction Survey (BPSS) has been in existence since April 2000, following the announcement by Government at the bus summit in November 1999 that it would carry out regular surveys to monitor user perceptions of local bus services. In April 2010 Passenger Focus assumed responsibility from the Department for Transport for the survey. This is a survey to monitor and record passenger satisfaction with local bus services. Interviews are conducted with a minimum of 2,800 respondents per quarter (over 11,000 passengers per year) at bus stops and stations across England (excluding London). Passengers are asked to rate their satisfaction with several aspects of the journey they have just undertaken, including the bus stop environment and ‘on the bus’ factors, as well as giving a rating of their overall experience of using the bus. The BPSS questionnaire is four A4 pages in length and takes five minutes to complete. The results are representative of typical patterns of bus usage, by day of week and time of day. The survey provides a reliable measure of bus passenger satisfaction at a national and regional level. The BPSS sits within a suite of passenger research. The results are published widely and made accessible and useful to the bus industry. Methodology Passengers are approached by an interviewer at the point when they alight from the bus at bus stations/stops. A short screening questionnaire is administered to ensure they are eligible to participate in the survey, and if they are, the full questionnaire is administered face-to-face. The survey is conducted at 198 fixed sampling points (bus stations or stops) across England outside London. This report presents the annual results for 2010/11 compared with the previous year and also reports on changes in the most recent January – March quarter compared to the previous October – December quarter. The most recent quarter was conducted between 22 January and 18 February 2011. The key driver analysis showing the influence of different service aspects on overall satisfaction is appended to this report. A technical annex is available as a separate document. The table below shows the number of interviews achieved across 2010/11. Number of Interviews Achieved \| \| Interviews Achieved \| \|----------------------\|---------------------\| \| \| Apr-Jun \| Jul-Sep \| Oct-Dec \| Jan-Mar \| Total \| \| England (excluding London) \| 3048 \| 3208 \| 3087 \| 2990 \| 12333 \| \| Metropolitan \| 1372 \| 1455 \| 1426 \| 1417 \| 5670 \| \| Shires \| 1676 \| 1753 \| 1661 \| 1573 \| 6663 \| Executive Summary This report presents the results of the BPSS for 2010/11 as a whole, and for quarter 1 2011. The annual overall service satisfaction score (85 out of 100) was significantly lower than in 2009/10 (down two points). Looking at the levels of satisfaction for each individual aspect of the journey, scores have fallen across 16 out of the 21 journey aspects rated. The deterioration has been most evident on two aspects: - Exterior cleanliness of the bus (down two points, with a six point drop among passengers in the North West) - Information on the exterior of the bus (down two points overall, with the largest fall amongst passengers in the South West, the North West and Yorkshire & Humberside, and amongst 60+ year-old passengers) Across the year as a whole, passengers in the Shires were significantly more satisfied with bus services than those travelling in Metropolitan areas, particularly with the interior cleanliness of the bus and reliability of the bus. However, passengers in the Metropolitan areas were more satisfied with information at the bus stop. Satisfaction with this aspect is obviously driven by the facilities present at the boarding bus stop (lighting, route map, timetable, and availability of a mobile phone code to check the arrival of the next bus), and lower satisfaction in the Shires is due to there being a higher incidence of bus stops with none of these facilities. A common theme that has emerged in analysis of the annual results is a fall in satisfaction ratings among two passenger groups who historically have been the most satisfied with their bus journey: - North West passengers - all bar two of the 21 journey aspects rated were significantly lower in 2010/11 compared with the previous year - 60+ year olds - significantly less satisfied with 17 out of the 21 aspects of their journey in 2010/11 The graph below shows ratings on the key performance indicators across England (excluding London) for 2010/11 compared with the previous year. \Significant decrease year-on-year (YOY) \\Not asked in 2009/10 In the most recent quarter the score for overall satisfaction showed some signs of recovery, with a two point rise since the previous quarter to 83 out of 100. This was driven by a significant rise in the Shires, where the score rose by four points. However, the overall score remains one point lower than in the same quarter of the previous year. The scores for reliability also improved this quarter in both Metropolitan and Shire areas (to 67 out of 100 and 71 out of 100 respectively), giving an overall score of 69 out of 100, which is the same level as during the previous year. There was also a two point rise in satisfaction with safety, but the score (85 out of 100) remains below that of the same quarter last year. Three measures fell noticeably this quarter. Satisfaction with bus condition was rated at 81 out of 100, which is three points down on both the previous quarter and the same quarter last year. Satisfaction with value for money fell by two points to 72 out of 100, a score significantly lower than that at the same time last year. The fall in satisfaction was particularly marked in Metropolitan areas. Staff service/comfort also fell, to 86 out of 100, which is a decline of one point since the previous wave of research, and two points down on the same quarter last year. The graph below shows the key performance indicators across England (excluding London) for the wave conducted January – March 2011. The following sections of this report deal with each of the key performance indicators in detail. Overall Service “Thinking of the journey you have just made, starting at the bus stop, how satisfied are you with the overall service you received today?” Looking at the 2010/11 year as a whole, the overall service satisfaction score (85 out of 100) was significantly lower compared with the previous year. The drop in satisfaction was evident across both Metropolitan and Shires areas. Analysis by individual region reveals that passengers in East Anglia, South East, West Midlands and North West were significantly less satisfied compared with the previous year, whilst satisfaction improved significantly among passengers in the North East who were the most satisfied in 2010/11, together with those in East Midlands (both at 86 out of 100). The drop was also evident across all age groups except for 45-59 year olds. The fall was most significant among 16-24 year olds (78, down three points). ### Yearly - Overall Service \| \| 2009/10 \| 2010/11 \| Change from last year \| \|----------------------\|---------\|---------\|-----------------------\| \| Base size (unweighted) \| 12195 \| 12333 \| \| \| England (excl. London)\| 85 \| 83 \| -2\ \| \| Metropolitan \| 84 \| 83 \| -1\* \| \| Shires \| 85 \| 84 \| -1\* \| \significant decrease year-on-year (YOY) Whilst the overall trend was down year-on-year, the picture in the most recent quarter was more positive, with a two point increase in satisfaction back up to a score of 83 out of 100. Satisfaction in the Shires rebounded most notably, up four points to 85. ### Quarterly - Overall Service \| \| January - March \| Change from previous quarter \| Change from same quarter last year \| \|----------------------\|-----------------\|------------------------------\|-----------------------------------\| \| Base size (unweighted) \| 2990 \| \| \| \| England (excl. London)\| 83 \| +2\ \| -1 \| \| Metropolitan \| 82 \| 0 \| -1 \| \| Shires \| 85\\ \| +4\* \| 0 \| - significantly higher \\ significantly higher than Metropolitan areas Reliability We measure perceptions of the general reliability of the service as follows: “Thinking about this and recent journeys, how satisfied are you with the reliability of buses being on time?” Reliability, which is the second most important influence on overall satisfaction, continues to have the lowest score of any key performance indicator. There has been no change in reliability ratings year-on-year, although satisfaction fell among 16-24 year olds who have historically been the least satisfied with this aspect of service (64 out of 100). As last year, passengers in the Shires were significantly more satisfied with the reliability of buses compared with those in Metropolitan areas. ### Yearly - Reliability \| \| 2009/10 \| 2010/11 \| Change from last year \| \|----------------------\|---------\|---------\|-----------------------\| \| Base size (unweighted) \| 12195 \| 12333 \| \| \| England (excl. London)\| 71 \| 71 \| 0 \| \| Metropolitan \| 69 \| 68 \| 1 \| \| Shires \| 73 \| 73\\ \| 0 \| \\significantly higher than Metropolitan Reliability ratings in the most recent quarter were slightly improved from the previous quarter (due to an uplift in Metropolitan areas), although unchanged from the corresponding period in the previous year. ### Quarterly - Reliability \| \| January - March \| Change from previous quarter \| Change from same quarter last year \| \|----------------------\|-----------------\|------------------------------\|-----------------------------------\| \| Base size (unweighted) \| 2990 \| \| \| \| England (excl. London)\| 69 \| +1 \| 0 \| \| Metropolitan \| 67 \| +2\* \| 0 \| \| Shires \| 71\\ \| +1 \| 0 \| \significantly higher \\significantly higher than Metropolitan Value for money “How satisfied are you with the bus journey you made today in terms of value for money?” Value for money is the fourth most important influence on satisfaction with the overall service, but continues to be the second lowest scoring key performance indicator. Comparing results year-on-year, there was a marginal decline in perceptions of value for money, although not statistically significant. \| Yearly - Value for money \| 2009/10 \| 2010/11 \| Change from last year \| \|--------------------------\|---------\|---------\|----------------------\| \| Base size (unweighted) \| 12195 \| 12333 \| \| \| England (excl. London) \| 74 \| 73 \| -1 \| \| Metropolitan \| 74 \| 73 \| -1 \| \| Shires \| 73 \| 73 \| 0 \| Looking at results in the most recent quarter, there was a significant decline and ratings were at a lower level than in the corresponding period from the previous year. This deterioration was most evident among younger passengers (16-24 year olds, down four points to 69; and 25-44 year olds, down five points to 72) as well as those travelling in Metropolitan areas (down three points to 71). \| Quarterly - Value for money \| January - March \| Change from previous quarter \| Change from same quarter last year \| \|-----------------------------\|-----------------\|------------------------------\|-----------------------------------\| \| Base size (unweighted) \| 1753 \| \| \| \| England (excl. London) \| 72 \| -2 \| -2\ \| \| Metropolitan \| 71 \| -2 \| -3\* \| \| Shires \| 73 \| -1 \| -1 \| \significantly lower Please note – value for money ratings exclude concessionary passengers Bus stop information “How satisfied were you with the information supplied at the bus stop?” Satisfaction with Bus Stop Information, at 76 out of 100 for 2010/11 as a whole, has increased marginally compared with last year, but was still the third lowest key performance indicator. As to be expected, satisfaction with the information at bus stop varied according to the facilities provided – lighting, route map, timetable and whether there was a mobile phone code to check the arrival of the next bus. Satisfaction was lowest among passengers who boarded the bus at a stop with none of these facilities. There is a higher incidence of bus stops with no facilities in the Shires (17%) compared with the Metropolitan areas (12%), and as a result, passengers in the Metropolitan areas were significantly more satisfied with the information provided (four points higher). Satisfaction with the information at bus stop was highest among those who boarded the bus at a stop that had a route map (86 out of 100) followed by stops with lighting and those with a mobile code to check the time of the next bus (both at 83 out of 100). At an annual level, there was a significant increase in the West Midlands and Yorkshire & Humberside satisfaction ratings. However, in the North West, there was a two point drop compared with last year, although at 79 out of 100 the rating was still higher than the average England figure (76). \| Yearly - Bus stop information \| 2009/10 \| 2010/11 \| Change from last year \| \|-------------------------------\|---------\|---------\|----------------------\| \| Base size (unweighted)* \| 12195 \| 12333 \| \| \| England (Excl London) \| 75 \| 76 \| +1 \| \| Metropolitan \| 77 \| 78\\ \| +1\* \| \| Shires \| 74 \| 74 \| 0 \| \significantly higher \\significantly higher than Shires Satisfaction ratings in the most recent quarter were broadly in line with those reported previously, with no significant changes. \| Quarterly - Bus stop information \| January - March \| Change from previous quarter \| Change from same quarter last year \| \|----------------------------------\|-----------------\|------------------------------\|-----------------------------------\| \| Base size (unweighted)* \| 2990 \| \| \| \| England (Excl London) \| 75 \| -1 \| 0 \| \| Metropolitan \| 78\\ \| 0 \| +1 \| \| Shires \| 73 \| -1 \| 0 \| \\significantly higher than Shires The condition of the stop/shelter This is a composite measure based on an average of three scores (the individual scores for each aspect in 2010/11 are shown in brackets): “How satisfied are you with: - The freedom from litter (79) - The cleanliness & freedom from graffiti at the bus stop (81) - The state of repair at the bus stop” (81) The three aspects that make up this composite measure are the least important influences on satisfaction with overall service. Across England as a whole, satisfaction with the condition of the stop/shelter, rated at 80 out of 100, has dropped marginally compared to the previous year, although the decline is not significant. Although passengers in the North West rated the highest on all three aspects within the composite measure, they were significantly less satisfied with each compared to last year. \| Yearly - Stop/shelter condition \| 2009/10 \| 2010/11 \| Change from last year \| \|---------------------------------\|---------\|---------\|-----------------------\| \| Base size (unweighted) \| 12195 \| 12333 \| \| \| England (Excl London) \| 81 \| 80 \| -1 \| \| Metropolitan \| 80 \| 80 \| 0 \| \| Shires \| 81 \| 81 \| 0 \| There were no significant changes looking at results in the most recent quarter. - The freedom from litter (79) - The cleanliness & freedom from graffiti at the bus stop (81) - The state of repair at the bus stop (81) \| Quarterly - Stop/shelter condition \| January - March \| Change from previous quarter \| Change from same quarter last year \| \|------------------------------------\|-----------------\|------------------------------\|-----------------------------------\| \| Base size (unweighted) \| 2990 \| \| \| \| England (Excl London) \| 80 \| 0 \| -1 \| \| Metropolitan \| 80 \| 0 \| 0 \| \| Shires \| 80 \| 0 \| 0 \| Ability to get a seat “How satisfied are you with being able to get a seat?” (on the bus you have just got off) This question was introduced at the start of 2010/11 and has been consistently the highest rated key performance indicator. However, it is not among the more important influences on satisfaction with overall service. Passengers in the Shires were significantly more satisfied with the ability to get a seat than those in Metropolitan areas. Looking at results regionally, passengers in West Midlands were significantly less satisfied with their ability to get a seat (89 out of 100), whilst those in North West region were the most satisfied (94 out of 100). \| Yearly - Ability to get a seat \| 2010/11 \| \|-------------------------------\|---------\| \| Base size (unweighted) \| 12333 \| \| England (Excl London) \| 92 \| \| Metropolitan \| 91 \| \| Shires \| 93\\ \| \\significantly higher than Metropolitan Please note – this question was introduced in 2010/11, so there is no data for previous years Satisfaction with this aspect of the journey has remained unchanged in the most recent quarter. \| Quarterly - Ability to get a seat \| January - March \| Change from previous quarter \| Change from same quarter last year \| \|-----------------------------------\|-----------------\|------------------------------\|-----------------------------------\| \| Base size (unweighted) \| 2990 \| \| \| \| England (Excl London) \| 92 \| 0 \| N/A \| \| Metropolitan \| 92 \| +1 \| N/A \| \| Shires \| 92 \| 0 \| N/A \| Journey Speed This is a composite measure based on an average of two scores (2010/11 individual aspect scores shown in brackets): How satisfied are you with: - The length of time you waited for the bus you just got off (83) - The length of time your journey took? (89) The length of time waited for the bus is the most important influence on satisfaction with the overall service, whilst journey time is the fifth most important influence. In England as a whole, satisfaction with journey speed, although still fairly high at 86 out of 100, has dropped marginally compared with last year. There were no rating differences between the Metropolitan and Shire areas, although passengers in East Anglia and the West Midlands were the least satisfied with the journey speed (both at 83 out of 100). In contrast, satisfaction with journey speed was highest in the East Midlands, North East and North West (all at 88 out of 100). Younger passengers (16-24 year olds) tended to be less satisfied with journey speed which corresponds with a lower rating among those travelling to and from school/college (both customer groups rating 82 out of 100). It is worth noting that satisfaction level for time waited and journey time has dropped significantly year-on-year among two customer groups who were previously highly satisfied: those in the North West (down two points and three points on each aspect respectively) and among passengers aged 60+ (down one point on each aspect). \| Yearly - Journey speed \| 2009/10 \| 2010/11 \| Change from last year \| \|------------------------\|---------\|---------\|----------------------\| \| Base size (unweighted) \| 12195 \| 12333 \| \| \| England (excl. London) \| 87 \| 86 \| -1 \| \| Metropolitan \| 87 \| 86 \| -1 \| \| Shires \| 87 \| 86 \| -1 \| In the most recent quarter, satisfaction with journey speed remained largely unchanged. - The length of time you waited for the bus you just got off (82) - The length of time your journey took? (89) \| Quarterly - Journey speed \| January - March \| Change from previous quarter \| Change from same quarter last year \| \|---------------------------\|-----------------\|------------------------------\|-----------------------------------\| \| Base size (unweighted) \| 2990 \| \| \| \| England (excl. London) \| 85 \| 0 \| -1 \| \| Metropolitan \| 85 \| 0 \| -2 \| \| Shires \| 86 \| +2 \| -1 \| Bus condition This is a composite measured based on the average of six scores (2010/11 individual aspect scores shown in brackets): “How satisfied are you with: - Cleanliness and freedom from graffiti of the outside of the bus (85) - The state of repair of the outside of the bus (86) - The information provided on the outside of the bus (86) - The cleanliness and freedom from litter of the inside of the bus (82) - The state of repair of the inside of the bus (85) - The notices and information provided inside of the bus” (82) Across England as a whole, satisfaction with bus condition has dropped by one point year-on-year, to 84 out of 100. The deterioration was mainly due to changes in the North West. Although passengers in the North West were previously among the most satisfied with their bus journey, there have been significant drops on all six measures in this region in 2010/11: notably exterior cleanliness and interior information (both down four points), exterior condition and information and interior cleanliness (all down by three points). In addition, worse year-on-year ratings were evident among passengers aged 60+ years (who historically have been more satisfied with all aspects of their bus journey). There has been a two point drop in cleanliness and information – both exterior and interior – among these older bus passengers. \| Yearly - Bus condition \| 2009/10 \| 2010/11 \| Change from last year \| \|------------------------\|---------\|---------\|----------------------\| \| Base size (unweighted) \| 12195 \| 12333 \| \| \| England (Excl London) \| 85 \| 84 \| -1 \| \| Metropolitan \| 85 \| 83 \| -2 \| \| Shires \| 86 \| 85 \| -1 \| Looking at the most recent quarterly results, satisfaction with bus condition has fallen (not significantly) compared with the previous wave and the same period last year. The deterioration has been most evident in ratings of exterior cleanliness which, at 81 out of 100, is three points lower than in the same period last year and five points lower than last quarter. - Cleanliness and freedom from graffiti of the outside of the bus (81) - The state of repair of the outside of the bus (84) - The information provided on the outside of the bus (84) - The cleanliness and freedom from litter of the inside of the bus (81) - The state of repair of the inside of the bus (84) - The notices and information provided inside of the bus (80) \| Quarterly - Bus condition \| January - March \| Change from previous quarter \| Change from same quarter last year \| \|---------------------------\|-----------------\|------------------------------\|-----------------------------------\| \| Base size (unweighted)\| 2990 \| \| \| \| England (Excl London) \| 81 \| -3 \| -3 \| \| Metropolitan \| 81 \| -2 \| -3 \| \| Shires \| 82 \| -3 \| -3 \| Staff service/comfort This is a composite measure based on an average of four scores (2010/11 individual aspect scores shown in brackets): How satisfied are you with: - Your comfort inside the bus (84) - The ease of getting on and off the bus (90) - The driver/conductor’s behaviour and attitude towards you (90) - The smoothness and freedom from jolting during the journey” (83) Satisfaction with staff service/comfort has dropped marginally (by one point) compared with last year. This fall was evident across all four aspects that contribute to the composite. Two of the aspects within the staff service/comfort composite are important influences on satisfaction with overall service: ‘comfort inside the bus’ is the third most important and ‘driver behaviour/attitude’ the sixth most important aspect. Satisfaction with staff service/comfort continued to be slightly higher in the Shires than in Metropolitan areas in 2010/11. Passengers in the West Midlands were the least satisfied (84 out of 100), whilst those in East Midlands and North West were the most satisfied (both at 89 out of 100). However, in the North West region, satisfaction with all four service aspects within the composite deteriorated significantly, in particular comfort inside the bus and smoothness of ride which have both dropped four points compared with last year. Satisfaction with three of the four aspects has also dropped among 25-44 year olds: interior comfort, driver’s behaviour and smoothness of ride (all dropped by two points among this age group). \| Yearly - Staff Service/Comfort \| 2009/10 \| 2010/11 \| Change from last year \| \|--------------------------------\|---------\|---------\|----------------------\| \| Base size (unweighted) \| 12195 \| 12333 \| \| \| England (excl. London) \| 88 \| 87 \| -1 \| \| Metropolitan \| 87 \| 86 \| -1 \| \| Shires \| 88 \| 87 \| -1 \| Looking at the quarterly results, ratings have dropped slightly in the most recent quarter, and satisfaction with comfort and smoothness of ride have both dropped significantly compared with the same period last year. - Your comfort inside the bus (83) - The ease of getting on and off the bus (90) - The driver/conductor’s behaviour and attitude towards you (89) - The smoothness and freedom from jolting during the journey (82) \| Quarterly - Staff service/comfort \| January - March \| Change from previous quarter \| Change from same quarter last year \| \|-----------------------------------\|-----------------\|------------------------------\|-----------------------------------\| \| Base size (unweighted) \| 2990 \| \| \| \| England (excl. London) \| 86 \| -1 \| -2 \| \| Metropolitan \| 86 \| 0 \| -1 \| \| Shires \| 86 \| -1 \| -2 \| Safety This is a composite measure based on the average of two scores (2010/11 individual aspect scores shown in brackets): “How satisfied are you with: - Your feeling of personal safety at the bus stop (82) - Your feeling of personal safety during the journey” (91) Satisfaction with Safety, although still fairly high at 85 out of 100, fell by one point in 2010/11 compared with last year, and this decline is evident for both at bus stop and on-bus safety ratings. It is noteworthy that safety at bus stop, the seventh most important influence on overall satisfaction, is nine points lower than satisfaction with on-bus safety, the ninth most important influence. Passengers in the West Midlands region were the least satisfied with Safety in 2010/11 (82 out of 100), scoring only 78 out of 100 for safety at bus stop (and 88 for on-bus safety). Passengers in the North East and North West were the most satisfied with safety. However, while in the North East satisfaction with on-bus safety has increased by two points compared with last year (up to 92); satisfaction with both safety aspects has dropped significantly in North West (safety at bus stop at 83 is down three points and on-bus safety at 92 is down two points). \| Yearly - Safety \| 2009/10 \| 2010/11 \| Change from last year \| \|-----------------\|---------\|---------\|----------------------\| \| Base size (unweighted) \| 12195 \| 12333 \| \| \| England (Excl London) \| 86 \| 85 \| -1 \| \| Metropolitan \| 86 \| 85 \| -1 \| \| Shires \| 86 \| 86 \| 0 \| Looking at the most recent quarterly results, while satisfaction with safety has improved compared to the quarter, across England and in both Metropolitan and Shires, there has been a decline compared with the same quarter last year, especially in the Metropolitan areas (down two points). - Your feeling of personal safety at the bus stop (81) - Your feeling of personal safety during the journey (89) \| Quarterly - Safety \| January - March \| Change from previous quarter \| Change from same quarter last year \| \|--------------------\|----------------\|-----------------------------\|-----------------------------------\| \| Base size (unweighted) \| 2990 \| \| \| \| England (Excl London) \| 85 \| +1 \| -1 \| \| Metropolitan \| 84 \| +1 \| -2 \| \| Shires \| 85 \| +1 \| -1 \| APPENDIX A Key influencers of overall satisfaction Key influencers of overall satisfaction Using a data modelling technique, we have derived the importance of the various service areas to the passenger. The analysis involves looking at the satisfaction scores for each individual attribute that goes into the KPIs and seeing how they correspond with the passengers’ satisfaction with the overall service. We have used a technique called ridge regression analysis to assess this relationship. Thus we can calculate derived importance scores for each service feature; the higher the percentage the more important the area in driving satisfaction with the overall service. The graph below shows how important each aspect is in determining the overall satisfaction with the service. Priorities for improvement Looking at the importance and satisfaction with each of the individual service aspects, we can identify which aspects should be prioritised for improvement. The quadrant map below shows satisfaction ratings on the vertical axis and importance along the horizontal axis. Attention should be focussed on those aspects that are relatively important but where satisfaction is low (bottom right hand quadrant). The priority area for improvement is the reliability of buses, which is the lowest rated KPI, but the second most important influence on overall service. It is also important that performance on time waited for the bus is at least maintained at its current level, as this is the biggest single influence on overall satisfaction and is on the borderline of acceptable performance. Also important areas for improvement are value for money and safety at the bus stop. However, they have less influence on perceptions of the overall service, hence they are less of a priority than improving service reliability and time waited for the bus. However it is encouraging that there is relatively high satisfaction on journey time as this is the fifth most important influence on overall satisfaction, and is part of the journey speed KPI.	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/1467-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 26, "total-input-tokens": 41685, "total-output-tokens": 8507, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 104, 1 ], [ 104, 2561, 2 ], [ 2561, 3089, 3 ], [ 3089, 4955, 4 ], [ 4955, 5163, 5 ], [ 5163, 6699, 6 ], [ 6699, 9120, 7 ], [ 9120, 11285, 8 ], [ 11285, 13325, 9 ], [ 13325, 15274, 10 ], [ 15274, 16174, 11 ], [ 16174, 17504, 12 ], [ 17504, 18469, 13 ], [ 18469, 20383, 14 ], [ 20383, 22180, 15 ], [ 22180, 23077, 16 ], [ 23077, 24860, 17 ], [ 24860, 26314, 18 ], [ 26314, 28331, 19 ], [ 28331, 29518, 20 ], [ 29518, 31100, 21 ], [ 31100, 31857, 22 ], [ 31857, 31909, 23 ], [ 31909, 32640, 24 ], [ 32640, 33907, 25 ], [ 33907, 33907, 26 ] ] }
e42dede7cca800d7bf8ef46919571559661e22b4	Bus Passenger Satisfaction Survey Quarterly results Quarter 4 2010-2011 Passenger Focus research In February 2010 Passenger Focus’s remit was extended to include bus, coach and tram passenger representation in England, outside London. This is in addition to the watchdog’s existing role of representing Britain’s rail passengers. Bus Passenger Satisfaction Survey (BPSS) BPSS has been in existence since April 2000, following the announcement by the Government at the bus summit in November 1999 that it would carry out regular surveys to monitor user perceptions of local bus services. In April 2010 Passenger Focus assumed responsibility from the Department for Transport (DfT) for the Bus Passenger Satisfaction Survey (BPSS). This is an ongoing survey to monitor and record passenger satisfaction with local bus services. Interviews are conducted with a minimum of 2,800 respondents per quarter (over 11,000 passengers per year) at bus stops and stations across England (excluding London). Passengers are asked to rate their satisfaction with several aspects of the journey they have just undertaken, including the bus stop environment and ‘on the bus’ factors, as well as giving a rating of their overall experience of using the bus. The BPSS questionnaire is four A4 pages in length and takes 5-6 minutes to complete. The results are representative of typical patterns of bus usage, by day of week and time of day. The survey provides a reliable measure of bus passenger satisfaction at a national and regional level. The BPSS sits within a suite of passenger research. The results will be published widely and made accessible and useful to the bus industry. Please note, this is separate to the Bus Passenger Survey (also published by Passenger Focus) which was last published in July 2010. Methodology This report presents the key results from quarter 4 of the Bus Passenger Satisfaction Survey carried out by Passenger Focus. It was conducted between 30 October and 26 November 2010. Passengers are approached by an interviewer at the point where they alight from the bus at bus stations/stops. A short screening questionnaire is administered to ensure they are eligible to participate in the survey, and if they are the full questionnaire is administered face-to-face. The survey is conducted at 198 fixed sampling points (bus stations or stops) across England outside London. A technical annex is available as a separate document. Number of interviews achieved \| Total interviews achieved \| Quarter 4 \| \|--------------------------\|-----------\| \| England (excl. London) \| 3087 \| \| Metropolitan \| 1426 \| \| Shires \| 1661 \| Summary The graph below shows ratings on the key performance indicators (KPI) across England (excluding London) for quarter 4. The ability to get a seat is the highest rated KPI, and service reliability the lowest. Overall service has seen a significant fall compared to quarter 4 last year. The following sections of this report deal with each of the key performance indicators in detail. Overall service “Thinking of the journey you have just made, starting at the bus stop, how satisfied are you with the overall service you received today?” The average satisfaction score for overall service across England as a whole (81 out of 100) was significantly lower in quarter 4 compared with both the previous quarter and the same period last year. The drop in satisfaction is evident across both Metropolitan and Shire areas. Passengers in the West Midlands are the least satisfied (79 out of 100) while the highest score was among passengers in the South West and the East Midlands (both at 85). Those least satisfied tend to be younger passengers (under 24 year olds, score 76 out of 100) and those interviewed during the afternoon/evening peak (1600–1900) and after this peak period – scores in both time periods being 78 out of 100. As expected, older bus passengers (60+) are most satisfied with the overall service (87 out of 100), as nine out of 10 use a concessionary travel pass. \| Overall service \| Quarter 4 \| Change from previous quarter \| Change from last year \| \|-----------------\|-----------\|------------------------------\|-----------------------\| \| Base size (unweighted) \| 3087 \| \| \| \| England (excl. London) \| 81 \| -4\* \| -2\* \| \| Metropolitan \| 82 \| -3\* \| -1 \| \| Shires \| 81 \| -4\* \| -3\* \| \significant decrease The drop in the overall service rating is due to a marked deterioration in the perceived reliability of the service and the time taken to wait for the bus. These are two of the more important influences on overall satisfaction (see below), and therefore a decline in service performance on these measures impacts overall service perceptions. Key influencers of overall satisfaction We have used a data modelling technique to derive the importance of various service areas to passengers. The analysis involves looking at the satisfaction scores for each individual attribute that goes into each of the KPIs and seeing how they correspond with passengers’ satisfaction with service overall. We have used a technique called ridge regression analysis to assess this relationship. Thus we can calculate derived importance scores for each service feature; the higher the percentage the more important the area in driving satisfaction with the overall service. A more detailed explanation of how the ridge analysis was conducted can be found in a separate document. The graph below shows how important each aspect is in determining the overall satisfaction with the service. The length of time that passengers waited for a bus is the primary influencer of satisfaction, this is followed by reliability, suggesting passengers concerns primarily focus on their bus being at the time they expect. Reliability We measure perceptions of the general reliability of the service as follows: “Thinking about this and recent journeys, how satisfied are you with the reliability of buses being on time?” Once again, reliability has the lowest score of any of the KPIs, with an average satisfaction score of 68 out of 100 in quarter 4. Reliability is also the second highest influencer of overall satisfaction. Satisfaction with reliability has fallen significantly since last quarter. Passengers in the Metropolitan areas were significantly less satisfied with the reliability of the service than those in Shire areas, and the year-on-year drop in ratings is apparent only in the Metropolitan areas. Looking at the regions in more detail, passengers in the West Midlands are the least satisfied with this aspect of the service (62 out of 100), while reliability of buses is rated highest in the South West and the South East (73 and 72 respectively). Satisfaction with the reliability of buses is lower among younger passengers (under 45 year olds generally, and 16-24 year olds in particular) and those travelling to and from work/education. There is an overlap of course between the two groups, with seven in ten of those working aged under 45 years. Older passengers (60+) and those on shopping trips are the most satisfied with the reliability of buses (76 and 73 respectively), reflecting the more favourable disposition among these segments. Partly this reflects the “halo” effect of 60+ year olds not having to pay for their fare, and also a tendency generally in satisfaction surveys for older customers to rate higher. \| Reliability \| Quarter 4 \| Change from previous quarter \| Change from last year \| \|-------------\|-----------\|------------------------------\|-----------------------\| \| Base size (unweighted) \| 3087 \| \| \| \| England (excl. London) \| 68 \| -5\ \| -1 \| \| Metropolitan \| 65 \| -5\* \| -2\* \| \| Shires \| 70\\ \| -5\* \| 0 \| \significant decrease \\significantly higher than Metropolitan Value for money “How satisfied are you with the bus journey you made today in terms of value for money?” Value for money ratings have improved this quarter, despite the fall in service satisfaction reported above. The improvement is apparent in the Shire areas where satisfaction with the service had previously fallen most, but not in the Metropolitan areas. In the Shire areas, this improvement is most evident among those who paid a cash fare for their journey (70 out of 100, up nearly four points compared with the last quarter). However, value for money is still the second lowest KPI, and it has improved only marginally compared with the same quarter last year. Value for money is also an important driver of overall satisfaction, and is the fourth highest individual measure. Passengers in the East Midlands are the most satisfied with value for money (81 out of 100) while the least satisfied are passengers in West Midlands (71 out of 100). \| Value for money \| Quarter 4 \| Change from previous quarter \| Change from last year \| \|----------------\|-----------\|------------------------------\|-----------------------\| \| Base size (unweighted) \| 1726 \| \| \| \| England (excl. London) \| 74 \| +2\ \| +1 \| \| Metropolitan \| 73 \| -1 \| 0 \| \| Shires \| 74 \| +3\* \| +3\* \| \significant improvement Please note - value for money ratings exclude concessionary passengers. Bus stop information “How satisfied were you with the information supplied at the bus stop?” Satisfaction with bus stop information, at 76 out of 100, has remained unchanged and is the third lowest KPI. As found before, passengers in the Metropolitan areas are significantly more satisfied with the information provided at the bus stop than passengers in Shire areas, with a three point gap. Passengers in East Anglia and West Midlands tend to be the least satisfied with this aspect of their journey (71 and 72 respectively). In addition, passengers travelling to and from school/college are significantly less satisfied (71 out of 100), hence lower satisfaction is recorded for younger passengers, the 16-24 year olds (74 out of 100). \| Bus stop information \| Quarter 4 \| Change from previous quarter \| Change from last year \| \|----------------------\|-----------\|------------------------------\|-----------------------\| \| Base size (unweighted) \| 3087 \| \| \| \| England (excl. London) \| 76 \| 0 \| 0 \| \| Metropolitan \| 78\\* \| 0 \| +1 \| \| Shires \| 75 \| +1 \| 0 \| \\significantly higher than Shires The condition of the stop/shelter This is a composite measure based on an average of three scores (individual scores for quarter 4 shown in brackets): “How satisfied are you with: - The freedom from litter (79) - The cleanliness & freedom from graffiti at the bus stop (80) - The state of repair at the bus stop” (81) Across England as a whole, satisfaction with the condition of the stop/shelter rated at 80 out of 100 has deteriorated (not significantly) compared with the previous quarter, although there is little change year on year. The fall compared with last quarter is most apparent in Shire areas with the lowest satisfaction level achieved in the West Midlands (76 out of 100). In addition, passengers travelling during weekday evenings (19:00-21:00) are less satisfied with the condition of bus stops (76 out of 100). This is due to lower satisfaction with freedom from litter and cleanliness of the bus stop. \| Stop/shelter condition \| Quarter 4 \| Change from previous quarter \| Change from last year \| \|------------------------\|-----------\|------------------------------\|-----------------------\| \| Base size (unweighted) \| 3087 \| \| \| \| England (Excl London) \| 80 \| -2 \| -1 \| \| Metropolitan \| 80 \| -1 \| 0 \| \| Shires \| 80 \| -2 \| 0 \| Ability to get a seat “How satisfied are you with being able to get a seat?” (on the bus you have just got off) Although it has dropped significantly since the previous quarter, satisfaction with the ability to get a seat, at 92 out of 100, has remained at a high level and continues to be the highest rated KPI. There are no customer segments indicating significantly lower satisfaction, the lowest ratings being from passengers in West Midlands (89 out of 100), those travelling to and from school/college (89) and younger passengers aged 16-24 years (90). \| Ability to get a seat \| Quarter 4 \| Change from previous quarter \| Change from last year \| \|-----------------------\|-----------\|------------------------------\|-----------------------\| \| Base size (unweighted)\| 3087 \| \| \| \| England (excl. London)\| 92 \| -1\* \| N/A \| \| Metropolitan \| 91 \| -1 \| N/A \| \| Shires \| 92 \| -1 \| N/A \| \significant decrease Please note - ability to get a seat question was introduced in 2010/11 Journey speed This is a composite measure based on an average of two scores (individual scores for quarter 4 shown in brackets): “How satisfied are you with: - The length of time you waited for the bus you just got off (82) - The length of time your journey took?” (89) In England as a whole, satisfaction with journey speed, has remained fairly high at 85 out of 100. However, there has been a slight (insignificant) drop in score compared with the same quarter last year and the previous quarter. There are no major differences between the Metropolitan and Shire areas, however, passengers in the West Midlands are the least satisfied with the journey speed (82 out of 100). Younger passengers (16-24 year olds) tend to be less satisfied with the journey speed. Therefore passengers travelling to and from school/college are also less satisfied with journey speed (both at 80 out of 100). \| Journey speed \| Quarter 4 \| Change from previous quarter \| Change from last year \| \|---------------\|-----------\|------------------------------\|-----------------------\| \| Base size (unweighted) \| 3087 \| \| \| \| England (excl. London) \| 85 \| -2 \| -1 \| \| Metropolitan \| 85 \| -2 \| -1 \| \| Shires \| 84 \| -3 \| -1 \| Bus condition This is a composite measured based on the average of six scores (individual scores for quarter 4 shown in brackets): “How satisfied are you with: - Cleanliness and freedom from graffiti of the outside of the bus (86) - The state of repair of the outside of the bus, (87) - The information provided on the outside of the bus (86) - The cleanliness and freedom from litter of the inside of the bus (82) - The state of repair of the inside of the bus (85) - The notices and information provided inside of the bus” (82) Following the improvement in quarter 3, satisfaction with the bus condition has dropped compared with the previous quarter and the same quarter last year (84 out of 100), although the changes are not significant. Once again, satisfaction with the bus condition is higher in Shire areas than in Metropolitan areas. However, passengers in West Midlands and East Anglia are less satisfied with the condition of the bus (both at 81 out of 100). While less frequent bus users (use once a month or less) are more satisfied with the bus condition (87 out of 100), passengers travelling in the afternoon peak and evenings are less satisfied (81 out of 100) mainly due to lower satisfaction with the cleanliness of the exterior and interior of the bus. This probably reflects the impact of general ‘wear and tear’ as the day progresses. \| Bus condition \| Quarter 4 \| Change from previous quarter \| Change from last year \| \|---------------\|-----------\|------------------------------\|-----------------------\| \| Base size (unweighted) \| 3087 \| \| \| \| England (excl. London) \| 84 \| -2 \| -1 \| \| Metropolitan \| 83 \| -1 \| -2 \| \| Shires \| 85 \| -1 \| -1 \| Staff service/comfort This is a composite measure based on an average of four scores (individual scores for quarter 4 shown in brackets): How satisfied are you with:* - Your comfort inside the bus (83) - The ease of getting on and off the bus (90) - The driver/conductor’s behaviour and attitude towards you (90) - The smoothness and freedom from jolting during the journey (82) Satisfaction with staff service/comfort has not changed significantly compared with the previous quarter, and quarter 4 last year. Satisfaction with staff service/comfort continues to be slightly higher in the Shires than in Metropolitan areas – 87 compared with 86 out of 100. Passengers in the West Midlands are the least satisfied with staff service/comfort during their bus journey (82 out of 100). As with other aspects of the journey, those travelling to and from school/college and younger passengers are less satisfied with this aspect of their journey (83 and 84 respectively). \| Staff service/comfort \| Quarter 4 \| Change from previous quarter \| Change from last year \| \|-----------------------\|-----------\|------------------------------\|-----------------------\| \| Base size (unweighted)\| 3087 \| \| \| \| England (excl. London)\| 87 \| 0 \| -1 \| \| Metropolitan \| 86 \| 0 \| -2 \| \| Shires \| 87 \| 0 \| 0 \| Safety This is a composite measure based on the average of two scores (individual scores for quarter 4 shown in brackets): “How satisfied are you with: - Your feeling of personal safety at the bus stop (81) - Your feeling of personal safety during the journey” (91) Satisfaction with safety, remains fairly high at 84 out of 100, and has not fallen significantly. It is noteworthy though that satisfaction with on-bus safety is ten points higher than satisfaction with safety at the bus stop. Satisfaction with safety is marginally higher in the Shires. However, both have dropped marginally compared with the same quarter last year. Passengers in the South West are the most satisfied with their safety (89 out of 100), with passengers travelling during weekday evenings (1900-2100) being the least satisfied with their safety (79 out of 100). \| Safety \| Quarter 4 \| Change from previous quarter \| Change from last year \| \|--------\|-----------\|------------------------------\|-----------------------\| \| Base size (unweighted) \| 3087 \| \| \| \| England (excl. London) \| 84 \| -2 \| -1 \| \| Metropolitan \| 83 \| -3 \| -1 \| \| Shires \| 84 \| -2 \| -1 \| Priorities for improvement Looking at the importance and satisfaction with each of the individual service aspects, we can identify which aspects should be prioritised for improvement. The quadrant map below shows satisfaction ratings on the vertical axis and importance along the horizontal axis. Attention should be focussed on those aspects that are relatively important but where satisfaction is low (bottom right hand quadrant). The priority area for improvement is the reliability of buses, which is the lowest rated KPI, but the second most important influence on overall service. It is also important that performance on time waited for the bus is at least maintained at its current level, as this is the biggest single influence on overall satisfaction and is on the borderline of acceptable performance. Important areas for improvement are value for money and safety at the bus stop. However, they have less influence on perceptions of the overall service, hence they are less of a priority than improving service reliability and time waited for the bus. It is encouraging that there is relatively high satisfaction on journey time as this is the fifth most important influence on overall satisfaction, and is part of the journey speed KPI.	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/1468-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 17, "total-input-tokens": 27092, "total-output-tokens": 5148, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 72, 1 ], [ 72, 2451, 2 ], [ 2451, 2688, 3 ], [ 2688, 3080, 4 ], [ 3080, 4766, 5 ], [ 4766, 5815, 6 ], [ 5815, 7817, 7 ], [ 7817, 9186, 8 ], [ 9186, 10521, 9 ], [ 10521, 12013, 10 ], [ 12013, 13229, 11 ], [ 13229, 14435, 12 ], [ 14435, 16107, 13 ], [ 16107, 17646, 14 ], [ 17646, 18791, 15 ], [ 18791, 20046, 16 ], [ 20046, 20046, 17 ] ] }
f8f2b28c0e4eb26fb50db769fbe02ef1bf67d16e	These notes tell you more about the State Pension, and help you fill in your claim form. Remember The easy way to claim your State Pension is online or by phone - It’s really easy and secure to claim your State Pension online, with helpful tips each step of the way. The service is available 24 hours a day, 7 days a week, so you can claim at a time that’s best for you. Go to [www.gov.uk/claim-state-pension-online](http://www.gov.uk/claim-state-pension-online) - Or you can phone our claim line on 0800 731 7898. Lines are open from 8am to 6pm Monday to Friday, except public holidays. - If you have speech or hearing difficulties, you can contact us using a textphone on 0800 731 7339. - If English or Welsh is not your first language, you can ask for an interpreter. At the same time as claiming your State Pension you can: - apply for Pension Credit - claim Housing Benefit This only applies if you make your claim over the phone. Important This booklet gives general guidance only and should not be treated as a complete and authoritative statement of the law. Get a State Pension statement A State Pension statement can tell you how much you’re likely to get when you claim your State Pension. Just call 0345 300 0168 between 8am and 6pm, Monday to Friday (except public holidays). Your statement will be an estimate based on your existing National Insurance record and cannot give you a guaranteed forecast. Go to www.gov.uk/state-pension to find out more about State Pension statements. Calls will be charged at a local rate if you call from a BT land line. Charges for calls from mobile phones and cable networks may be different. If English is not your first language we can provide an interpreter for you. If you have speech or hearing difficulties, you can contact us using a textphone on 0800 731 7339. Or you can use the BT text-direct service by dialling 18001 followed by the textphone number. Section 1 – Frequently asked questions How will you work out my new State Pension? If you reach State Pension age on or after 6 April 2016 we will work out your State Pension using the new State Pension rules. The amount you will get will depend on your National Insurance record. You'll usually need between 10 and 35 qualifying years on your National Insurance record to get a State Pension. You don't have to have 10 qualifying years in a row, and if you've got 35 qualifying years you'll get the full rate of new State Pension. Not everyone will have 35 qualifying years, so not everyone will get the full rate. But everyone will start off with at least the same amount they would have got in the previous State Pension scheme. What is a qualifying year? We count a qualifying year to be a tax year (from 6 April one year to 5 April of the next) in which you: - paid enough National Insurance contributions for the year, or - were treated as having paid enough National Insurance contributions You may have got National Insurance credits during some years. These can count towards a qualifying year. You may have got National Insurance credits if you were unemployed, unable to work because of illness or claiming certain benefits (including Child Benefit for a child under 12) during your working life. How will you work out my new State Pension starting amount? We will work out a new State Pension starting amount if you paid into a State Pension scheme before 6 April 2016. The way we work out your starting amount will make sure you get as least as much as you would have done using the previous State Pension rules. Your new State Pension starting amount will be the higher of either: - what you would get under the previous State Pension rules, or - what you would get if the new State Pension had been in place at the start of your working life Both amounts will reflect any periods when you have been contracted-out of the Additional State Pension. We call this ‘Contracted-out deductions’. These deductions will apply if you paid any National Insurance contributions into a work’s (or personal) pension scheme between 6 April 1978 and 5 April 1997. We call these ‘contracted out’ contributions. These contributions count towards your work or personal pension scheme and not your Additional State Pension (more information on Additional State Pension is below). Your starting amount may be less than, more than or equal to the full rate of the new State Pension. Section 1 – Frequently asked questions continued What to do if... 1. your starting amount is more than the full rate of the new State Pension We call the difference between the full new State Pension and your starting amount your protected payment. We will pay you your protected payment on top of your new State Pension, so you will get the higher starting amount. You can't add additional qualifying years to your National Insurance record, because you've already reached the full new State Pension amount, but we will always pay you your protected payment on top of your new State Pension. 2. your starting amount is equal to the full new State Pension You will get the full new State Pension. You can't add additional qualifying years to your National Insurance record, because you've already reached the full new State Pension amount. 3. your starting amount is less than the full rate of the new State Pension You can increase your State Pension by adding additional qualifying years to your National Insurance record after 5 April 2016. You can do this until you reach the full rate of the new State Pension or you reach State Pension age, whichever happens first. If you don't increase your State Pension you will get the lower starting amount. Will I have to pay tax on my State Pension? You may have to pay tax on your State Pension. If you decide to put off claiming your State Pension after you reach State Pension age you may be able to get extra State Pension on top of your new State Pension. If you do this, you may have to pay tax on your extra State Pension as well. You can find out more about putting off claiming your State Pension on page 9. Extra State Pension will be taken into account for Pension Credit and Housing Benefit, just like other types of income. To find out more about tax and the State Pension visit www.gov.uk Do I have to pay National Insurance contributions once I have reached State Pension age? Once you have reached State Pension age you do not have to pay National Insurance (NI). If you intend to work after you reach State Pension age or if you put off claiming your State Pension, you should show your birth certificate or passport to your employer as proof of your age. HMRC no longer issue age exception certificates. Your employer should be aware of this. If your employer insists on having a certificate of age exception advise them to look on www.gov.uk/tax-national-insurance-after-state-pension-age which gives advice on the new process. If your employer needs to check when your State Pension age is reached they should use the State Pension age calculator which can be accessed on www.gov.uk/calculate-state-pension Section 1 – Frequently asked questions continued If there is sensitive information on either your birth certificate or passport that you don’t want your employer to see, please write to HMRC advising you are unable to use your birth certificate or passport as proof of age and HMRC will supply you with a letter as proof of age. If HMRC do not hold a verified date of birth you may have to give them evidence of your date of birth. You can write to them at: HM Revenue & Customs National Insurance Contributions and Employer Office Individuals Caseworker Benton Park View Longbenton Newcastle upon Tyne, NE98 1ZZ. More information can be found at www.gov.uk How can I trace a lost occupational or personal pension? If you have changed jobs a number of times during your working life, it is easy to lose contact with an old employer and their pension scheme. The Pension Tracing Service may be able to help you if you are not sure of all the details but you: - think you may have an old occupational or personal pension - think you may be a beneficiary of an old pension scheme, or - you are acting on behalf of someone else Tracing all your pension benefits now will help you make decisions in the future about saving for your retirement. It will also help make sure that you get all the pension benefits when you retire. You can trace a pension by: - calling us on 0345 600 2537. We will do the trace over the phone or send you an application form. Opening hours are Monday to Friday 8am to 6pm. - visiting www.gov.uk. Click on the Pension Tracing Service link and fill in our online form. - writing to: Handling Site A Wolverhampton WV98 1LU We will need to know at least the name of your previous employer or pension scheme. If you have speech or hearing difficulties you can contact us using a textphone on 0345 300 0169. Or you can use the BT text-direct service by dialling 18001 followed by the textphone number. When to claim If you want to claim your State Pension now, send your claim form to us. Benefit you can get because of this claim can be paid more quickly if you: - answer all the questions on this form that apply to you and your husband, wife or civil partner, if you have one - send us any documents we may have asked for. If you cannot do this, get in touch with us. But any benefit you can get as a result of this claim may be delayed, or lost altogether. It’s really easy and secure to claim your State Pension online, with helpful tips each step of the way. The service is available 24 hours a day, 7 days a week, so you can claim at a time that’s best for you. For more information, go to www.gov.uk/claim-state-pension-online You can get an electronic version of this booklet and a claim form from our website. For more information, go to www.gov.uk When to claim your State Pension Subject to time limits, you can claim your State Pension at any time from your State Pension age. What are my time limits? We can accept your claim if we receive it no more than 4 months before the date from when you want to get State Pension, or the date you reach State Pension age, whichever is the latest. You can’t backdate your State Pension claim more than 12 months before the date when we receive it. If you ask us to backdate your State Pension claim, we will work out how much State Pension you are due back to the date you tell us you want your claim to start from, and pay you this amount. This payment does not include any interest, and you will not earn extra State Pension for the period you backdate your claim for. Is women’s State Pension age increasing? From 6 April 2010 women’s State Pension age is gradually being increased so that by November 2018 it will be equal to men’s. From December 2018 the State Pension age for both men and women will start to increase to reach 66 by October 2020. To calculate the date of your State Pension age go to: www.gov.uk/calculate-state-pension Section 2 – Improving your State Pension without putting off your claim How can I increase the amount I get based on my National Insurance record? If you do not get the full rate of new State Pension you may be able to increase the amount you will get by paying extra National Insurance for past years. If there are gaps in your National Insurance record for one or more years between tax years 2006-07 to 2015-16, HMRC will allow you more time to pay voluntary Class 2 or Class 3 National Insurance contributions as follows: - Payment of voluntary Class 2 or 3 contributions between the tax years 2006-07 to 2009-10 (2010-11 for Class 2) can be made up until 5 April 2019. You will pay the contributions at the rate that applied in the 2012-13 tax year. - Payment of voluntary Class 2 or 3 contributions between the tax years 2010-11 (2011-12 for Class 2) to 2015-16 and payment is made to HMRC by 5 April 2019. You will pay the contributions at the rate applicable to the year or years you wish to pay for. You will have until 5 April 2023 to make payment for any year between 2006-07 and 2015-16. But if you make payment after 5 April 2019 you may have to pay at a higher rate. This is known as higher rate provision. If you want to know if you can increase your State Pension in this way, get in touch with us. You can ask us about this at any time, even if you do not wish to claim your State Pension yet. I am widowed. Can I increase the amount I get? You may be able to improve your State Pension based on your late spouse’s National Insurance contributions. But you will not be able to improve your State Pension if: - you were under State Pension age when your spouse died, and - you remarry or form a civil partnership before you reach State Pension age. If you were widowed on or after 9 April 2001 and get a bereavement benefit like Bereavement Allowance or Widowed Parent’s Allowance, you will stop getting that benefit when you reach State Pension age. You will then normally be entitled to State Pension instead. If you were widowed before 9 April 2001 and get a widow’s benefit like Widow’s Pension or Widowed Mother’s Allowance, you can: - claim State Pension from State Pension age - keep getting your Widow’s Pension until you reach age 65 - keep getting your Widowed Mother’s Allowance for as long as you are entitled to it, or - give up your Widow’s Benefit to earn extra State Pension You can ask for a State Pension statement before you decide what to do. It will tell you if you will get more money by claiming State Pension instead of your widow’s benefit. Section 2 – Improving your State Pension without putting off your claim continued I am a surviving civil partner. Can I increase the amount I get? You may be able to improve your State Pension based on your late civil partner’s National Insurance contributions. But you will not be able to improve your State Pension if: - you were under State Pension age when he or she died, and - you marry or form a civil partnership before you reach State Pension age. If you are entitled to Widowed Parent’s Allowance or Bereavement Allowance because of the death of your civil partner, you will stop getting those benefits when you reach State Pension age. You will then normally be entitled to State Pension instead. I look after children. Can I get more State Pension? You can’t get more State Pension because you care for children or qualifying young persons, but you can usually claim Child Tax Credit instead. You can find out more about Child Tax Credit and claim online at www.gov.uk You can call the Tax Credit Helpline on 0345 300 3900 (Textphone for people with hearing or speech difficulties: 0345 300 3909) between 8am and 8pm Monday to Friday and 8am and 4pm Saturday. The lines are closed Sundays, Christmas Day, Boxing Day and New Year’s Day. What happens if I work past State Pension age? If you work past State Pension age, you can increase your income when you retire. This is because you will have more time to earn and save for your future. You could decide to: - work fewer hours - job share - do a less demanding role, or - do seasonal work If you do any of these things you should check how it will affect any work pension schemes you pay into. Work pensions are sometimes called workplace or occupational pensions. If you work past State Pension age, you can claim a State Pension while you keep working. The money you earn and the hours you work won’t affect your State Pension amount, but you may have to pay tax on your State Pension as well as the money you earn from working. You can also put off claiming your State Pension to earn an extra amount of State Pension on top of your new State Pension amount. We call this “extra State Pension”. You may be able to keep working with the same employer while they pay you an occupational pension. Section 3 – Improving your State Pension by putting off your claim Can I put off claiming my State Pension? You can put off claiming your State Pension when you reach State Pension age. We call this “deferring” your State Pension. You don’t have to do anything to defer your claim – we will only start paying your State Pension after you have claimed it. You can get an extra amount of State Pension on top of your new State Pension when you do claim. We call the extra amount your “extra State Pension”. You normally need to defer your claim by at least 9 weeks to get extra State Pension. You can find out more about deferring your State Pension at www.gov.uk/deferring-state-pension What if I’m already getting State Pension? If you are already getting State Pension, you can stop being paid State Pension for a while to earn extra State Pension when you start being paid it again. You will need to stop being paid for at least 9 weeks to get extra State Pension when you start again. Call us on 0800 99 1234 to tell us to stop paying your State Pension. You’ll need to tell us what date you want to stop claiming from. This cannot be a date in the past or more than 4 weeks in the future. You can stop being paid your State Pension only once and you must normally live in Great Britain. You can put off claiming State Pension for as long as you like. What will I get? You can get extra State Pension if you put off claiming your State Pension for 9 weeks or more. When you do claim, you will get a higher weekly State Pension for the rest of your life. The amount of extra State Pension you can get works out at an extra 1 percent for every 9 weeks that you defer your claim. This works out to around 5.8 percent for a full year. When your State Pension increases every April, your extra State Pension will usually increase as well. The State Pension is not increased in all overseas countries. Section 3 – Improving your State Pension by putting off your claim continued Will putting off my claim affect the other benefits I get? If you put off claiming State Pension while getting other benefits or if another person had an increase in any of them for you, you won’t build up any extra State Pension for the days that you get the other benefit. These other benefits include: - Carer’s Allowance - Severe Disablement Allowance - Unemployability Supplement - Widow’s Pension - Widowed Mother’s Allowance - Incapacity Benefit - Pension Credit - Income Support - Employment and Support Allowance (income-related) - Jobseeker’s Allowance (income-based) - Universal Credit I’m in a couple. Will my partner’s benefits affect me if I put off my claim? If you are a member of a couple you won’t build up extra State Pension for the days that your partner gets one or more of the following benefits: - Pension Credit - Income Support - Employment and Support Allowance (income-related) - Jobseeker’s Allowance (income-based) - Universal Credit What do I have to do to put off my claim? You don’t have to do anything to put off claiming your State Pension – it will automatically defer until you claim it. If you are thinking about putting off your claim, it is important that you find out more about this option before you decide. This booklet can only give general information. There is more information on our website at www.gov.uk/deferring-state-pension You may also want to get independent financial advice. You may have to pay for this. If you decide to defer your State Pension and get other benefits, you must tell us. If you are currently putting off claiming your State Pension and you want to find out more about how this benefits you, please contact us on 0800 731 7898. Section 4 – Home Responsibilities Protection What is Home Responsibilities Protection? Home Responsibilities Protection was available for full tax years from 6 April 1978 to 5 April 2010. It: - applied to both men and women - could count towards what your husband, wife or civil partner gets from bereavement benefits - helped protect your basic State Pension position if you: - did not work or earn enough in a tax year to make the year count for State Pension purposes, and - were awarded Child Benefit (previously Family Allowance) for a child under 16; or - cared for a disabled person. - may have earned you extra pension from 6 April 2002 through State Second Pension Home Responsibilities Protection was replaced by weekly credits from 6 April 2010. If you reached State Pension age on or after 6 April 2010, complete years of Home Responsibilities Protection built up before then have been converted to qualifying years. This can be up to a maximum of 22 years. Applications for past periods of Home Responsibilities Protection may still be accepted by HMRC subject to certain time limits. Did you get Home Responsibilities Protection? Normally Home Responsibilities Protection was given automatically if you were getting Child Benefit but in some circumstances it has been missed from customer records. If you think it has been missed from your record, to enable us to assess whether you are to get Home Responsibilities Protection we need to know if you had Child Benefit for a child under 16 at any time since April 1978. Section 5 – Notes to help you fill in your BR1 claim form Part 1 – About you Use this part of the form to tell us your personal details. Part 2 – About your husband, wife or civil partner Answer all the questions on the form that apply to your husband, wife or civil partner, if you have one. If you converted or changed your civil partnership into a marriage, or married your civil partner, enter the date your marriage is treated as starting on. If you have told us that you are married or in a civil partnership you should send us your: - marriage certificate, or - civil partnership certificate If you have told us that you are divorced or your marriage has been annulled or your civil partnership has been dissolved you should send us your: - divorce certificate (decree absolute, decree of divorce, certificate of annulment), or - civil partnership dissolution certificate We need to see the original certificate or a certified copy of the original certificate. We will return this to you as soon as we can. Part 3 – When to claim your State Pension Can I delay claiming my State Pension? You might want to think about a more flexible approach to your retirement. If you want to, you can continue to work longer, or work part-time, whether or not you have claimed your State Pension. If you put off claiming your State Pension until a time that suits you, you can get extra State Pension. You can find more information about this on page 9. Part 4 – How will I be paid? Please read these notes before you complete Part 4 of the claim form. Will you normally pay my money into my account? Yes, your money will be paid into your bank or building society account. Many banks and building societies will let you collect your money at a post office. We will tell you when the first payment will be made and how much it will be. We will tell you if the amount we pay into the account is going to change. Section 5 – Notes to help you fill in your BR1 claim form continued How can I find out much you have paid into my account? You can check your payments on your bank or building society statements. The statements may show your National Insurance (NI) number next to any payments we have made. If you think a payment is wrong, call us straight away. You can get in touch with us using the phone number on any letter we send you about your pension. What happens if you pay me too much money? We have the right to take back any money we pay that you should not have received. For example, you may give us some information which means you are to get less money. Sometimes we may not be able to change the amount we have already paid you. This means we will have paid you money that you are not supposed to get. We will contact you before we take back any money. About the account you want to use - You can use a bank or building society account in your name, or a joint account - You can use someone else’s account if: - the terms and conditions of their account allow this, and - they agree to let you use their account, and - you are sure they will use your money in the way you tell them - You can use a Credit Union account. You must tell us the Credit Union’s account details. Your Credit Union will be able to help you with this. - If you are an appointee or legal representative acting on behalf of the customer, the account should be in your name only It is very important you fill in ALL the boxes in the claim form correctly, including the building society roll or reference number, if you have one. If you tell us the wrong account details your payment may be delayed or you may lose money. You can find the account details on your chequebook or bank statements. If you do not know the account details, ask the bank or building society. What to do now - Tell us about the account you want to use in Part 4 of the claim form. By giving us your account details you: - agree that we will pay you into an account, and - understand what we have told you in the section above - If you are going to open an account, please tell us your account details as soon as you get them - If you do not have an account, please contact us and we will give you more information Fill in the rest of the claim form. You do not have to wait until you have opened an account or contacted us. Section 5 – Notes to help you fill in your BR1 claim form continued Part 5 – About any time you lived or worked abroad We need to know about any time you have lived or worked outside the United Kingdom (UK). This is because if you have paid into the social security system in another country, it may count towards your State Pension. The United Kingdom is England, Scotland, Wales and Northern Ireland. Please tell us about any time that you lived or worked in: - a country outside the UK - the Channel Islands, or - Republic of Ireland Do not tell us about any time that you were overseas with HM Forces. Part 6 – About your National Insurance (NI) contributions Use this part of the form to tell us if you have been working prior to reaching State Pension age and give us details of your employment. Part 7 – About time in hospital We need to know if you have been in hospital since you reached State Pension age or the date you want to start receiving your State Pension from. For more information on how periods in hospital affect your benefit, contact us. Part 8 – About other benefits or payments you could get We need to know if you or your husband, wife or civil partner are receiving or waiting to hear about any of the following benefits: - Attendance Allowance - bereavement benefits - Carer’s Allowance - Child Benefit - Disability Living Allowance - Employment and Support Allowance - Graduated Retirement Benefit - Guardian’s Allowance - Incapacity Benefit - Income Support - Industrial Death Benefit - Jobseeker’s Allowance - Pension Credit - Personal Independence Payment - Reduced Earnings Allowance - Severe Disablement Allowance - State Pension - Temporary Allowance For Widows - Unemployability Supplement paid because of - a war disability due to service with HM Forces, or - an industrial accident or disease - Universal Credit - War Widow’s or Widower’s Pension - Widow’s Benefit - Working Tax Credit. Section 5 – Notes to help you fill in your BR1 claim form continued Part 9 – Other information Use this part of the claim form to tell us any other information about your circumstances. Part 10 – Pension Credit You may be able to get Pension Credit. Pension Credit is an income-related benefit for people who: - have reached the qualifying age, and - live in England, Scotland or Wales “Income-related” means that we look at income you have coming into your household. You won’t be able to get Pension Credit if your household income is over a certain amount. You won’t have to pay Income Tax on any Pension Credit you get. The Pension Credit qualifying age is gradually going up. It will reach 65 by November 2018 and will then go up further to 66 by December 2020. To find out when you can get Pension Credit visit www.gov.uk/pension-credit-calculator If you have a partner you can get Pension Credit even if only one of you has reached the qualifying age. The person who has reached the qualifying age must be the one who applies. There are two parts to Pension Credit – the Guarantee Credit and the Savings Credit The Guarantee Credit works by topping up your weekly income to a guaranteed minimum level. The Savings Credit is an extra payment for people who saved some money towards their retirement, e.g. savings or a second pension, but the money is still below a certain level. For more information call the freephone number 0800 99 1234. Changes to Pension Credit from 6 April 2016 The Savings Credit part of Pension Credit will no longer be available for people reaching State Pension age on or after 6 April 2016. You may still get Savings Credit if you’re part of a couple and one of you has reached State Pension age before 6 April 2016, but only if one of you: - was already getting it immediately before 6 April 2016, and - has been getting it at all times since 6 April 2016 We cannot pay Pension Credit instead of the State Pension you have chosen to put off. To apply for Pension Credit you can call us on 0800 99 1234. If you have speech or hearing difficulties you can contact us using a textphone on 0800 169 0133. If you want to know more about Pension Credit, ask when you contact us about your State Pension. Or visit www.gov.uk/pension-credit. When you call us we will ask you about your circumstances. For example, we may ask you about any income, savings and investments you and your partner have. If you apply for Pension Credit, we can also help you apply for Housing Benefit at the same time. Section 5 – Notes to help you fill in your BR1 claim form continued Part 11 – Declaration It is important that you sign and date the claim form. If you do not, we will send it back to you. Don’t forget to send us any documents we have asked to see. We will treat them as being valuable and will return them to you as soon as we can. What do I need to do once I have filled in my claim form? 1. Check that you have answered all the questions that apply to you on your claim form. 2. Check that you are sending us any documents we may have asked for. These could be your: - marriage certificate - civil partnership certificate - certificate of annulment - certificate of civil partnership dissolution - decree absolute - decree of divorce 3. Check that you have signed the form in Part 11. 4. Send your claim form and any documents to us. If there is no reply envelope, please phone on 0800 731 7898. People with speech or hearing problems using a textphone can dial 0800 731 7339. What happens next? We will write to tell you how much State Pension you can get and on what date we will pay you from. If you can’t get State Pension we will tell you why. How do we collect and use your information? When we collect information about you we may use it for any of our purposes. These include dealing with: - social security benefits and allowances - child support - employment and training - financial planning for retirement - occupational and personal pension schemes We may get information about you from others for any of our purposes if the law allows us to do so. We may also share information with certain other organisations if the law allows us to. To find out more about how we use information, visit our website www.gov.uk or any of our offices. Section 6 - More information Useful contacts We can give you advice about Attendance Allowance, Carer’s Allowance, Winter Fuel Payments, Housing Benefit and Funeral Payment. To find out more about the State Pension rates visit www.gov.uk/new-state-pension or call us on 0800 731 7898 Disability Benefits You can find claim forms, guidance and other information at www.gov.uk Carer’s Allowance Unit Phone 0345 608 4321 (Textphone 0345 604 5312) For advice and information for people who look after someone who is disabled. AGE UK Phone: 0800 169 2081 (free) (Textphone: 0800 269 626) An advice line providing information for older people with problems such as benefits and pensions. Winter Fuel Payment Centre (EEA residents only) Phone +44 (0)191 218 7777 Winter Fuel Payment advice for people living outside the UK but within the European Economic Area or in Switzerland. Action on Hearing Loss Phone 0808 808 0123 (Textphone 0808 808 9000) Website: www.actionhearingloss.org.uk For information and resources for deaf and hard of hearing people, their families and friends. Citizens Advice Website: www.citizensadvice.org.uk For basic advice, including advice on pensions. You can find the number of your local bureau in the phone book. Your claim form Remember The easy way to claim your State Pension is online or by phone - Visit www.gov.uk/state-pension - Phone The Pension Service claim line on 0800 731 7898. Lines are open from 8am to 6pm Monday to Friday, except public holidays. Calls from a BT landline will be free. Other service providers and mobile networks may charge. - If you have speech or hearing difficulties, you can contact us using a textphone on 0800 731 7339. - If English or Welsh is not your first language, you can ask for an interpreter. At the same time you can - apply for Pension Credit - claim Housing Benefit. Please read the Notes booklet before you fill in this form. The Notes will help you fill in the form. Make sure you - answer all the questions on the form that apply to you and your husband, wife or civil partner - read, sign and date the Declaration at Part 11 - send the form back to us with any documents we may ask to see. Part 1: About you Please fill in this form with BLACK INK and in CAPITALS Please tell us your National Insurance (NI) number You can find your NI number on your NI number card, letters from social security or payslips. If you do not know your NI number, have you ever had one or used one at any time? \| Letters \| Numbers \| Letter \| \|---------\|---------\|--------\| \| \| \| \| No [ ] Yes [ ] Title Mr/Mrs/Miss/Ms/Dr/Rev Surname or family name Other names, in full All other surnames or family names you have been known by or are using now Include maiden name, all former married names and all changes of family name. Your permanent address Daytime phone number if you have one What is this number? Please tick. Home [ ] Work [ ] Mobile [ ] Textphone [ ] Date of birth / / / ### Part 1: About you Are you able to speak to us in English? \| No \| Yes \| \|----\|-----\| If you answered No, please tell us the language you would like us to use when we speak to you. If you live in Wales, do you want to speak to us in Welsh? \| No \| Yes \| \|----\|-----\| Tick here to show if you want us to contact you about this claim in one of these ways. - Braille - Large Print - Audio - Sign Language - Induction Loop - Textphone If you live in Wales, do you want to speak to us in Welsh? \| No \| Yes \| \|----\|-----\| Part 2: About your husband, wife or civil partner What is your current marital or civil partnership status? - Single - Married or civil partner - Divorced or civil partnership dissolved - Marriage or civil partnership annulled - Separated - Widowed or surviving civil partner Tell us about your husband, wife or civil partner - Their surname or family name - Their other names - Their National Insurance (NI) number - Their address, if different from yours - Their date of birth Letters \| Numbers \| Letter ---\|---\|--- Postcode Date of marriage or civil partnership formation. If you converted or changed your civil partnership into a marriage, or married your civil partner, enter the date your marriage is treated as starting on. The date they died, if you are widowed or a surviving civil partner Date of divorce, annulment or civil partnership dissolution Please send us your marriage or civil partnership certificate, certificate of annulment, certificate of civil partnership dissolution or decree absolute. In Scotland this is called a decree of divorce. It must be the original or a certified copy of the original. We will send it back to you as soon as we can. Are you sending your marriage or civil partnership certificate with this form? No ☐ Yes ☐ Are you sending your decree absolute, decree of divorce, certificate of annulment or civil partnership dissolution with this form? No ☐ Yes ☐ Part 3: When to claim your State Pension Please read Part 3 of your Notes booklet to help you fill in this part. What date do you want to claim your State Pension from? Do you intend to work for an employer after you have reached State Pension age? No ☐ Yes ☐ Any money you earn will not affect your State Pension. Once you have reached State Pension age you do not have to pay National Insurance (NI) contributions. If you intend to work after you reach State Pension age you will need to show your birth certificate or passport to your employer as proof of your age. You can find more information at www.gov.uk Have you already put off getting your State Pension? No ☐ Yes ☐ For official use only Husband’s or civil partner’s status before marriage or civil partnership Wife’s or civil partner’s status before marriage or civil partnership Surname Other surnames, eg maiden name Nature of evidence Verified by Certified by Returned by ### Part 4: How we pay you Please read Part 4 of your Notes booklet to help you fill in this part. ### About the account you want to use \| Name of the account holder \| \| \|----------------------------\|---\| \| Please write the name of the account holder exactly as it is shown on the chequebook or statement. \| \| \| Full name of bank or building society \| \| \|--------------------------------------\|---\| \| \| \| \| Sort code \| \| \|-----------\|---\| \| Please tell us all 6 numbers, for example 12-34-56. \| \| \| Account number \| \| \|----------------\|---\| \| Most account numbers are 8 numbers long. If your account number has fewer than 10 numbers, please fill in the numbers from the left. \| \| \| Building society roll or reference number \| \| \|-------------------------------------------\|---\| \| If you are using a building society account you may need to tell us a roll or reference number. This may be made up of letters and numbers, and may be up to 18 characters long. If you are not sure if the account has a roll or reference number, ask the building society. \| \| \| You may get other benefits and entitlements we do not pay into an account. If you want us to pay them into the account above, please tick the box. We normally pay your benefit every 4 weeks. \| \| \|---\|---\| If you are only getting a small State Pension, the arrangements may be different. Please contact us for more information using our phone number shown on the front of this form. ### Part 5: About any time you lived or worked outside the United Kingdom \| Have you ever lived or worked outside the United Kingdom? \| \|----------------------------------------------------------\| \| No ☐ Go to Part 6. \| \| Yes ☐ Tell us about this below. \| #### Country 1 - Name of the country you lived or worked in. - Dates you lived or worked there. - From: / / / - To: / / / - Did you pay into the social security scheme of the country? - Don’t know ☐ - No ☐ - Yes ☐ What was your social security number? - What is your nationality? #### Country 2 - Name of the country you lived or worked in. - Dates you lived or worked there. - From: / / / - To: / / / - Did you pay into the social security scheme of the country? - Don’t know ☐ - No ☐ - Yes ☐ What was your social security number? ______________________________________________________________________ If you have lived or worked in more than 2 countries, tell us about them in Part 9. ### Part 6: About your National Insurance (NI) contributions If you are a married woman or a widow - have you been self-employed at any time since 6 April 1978? - No [ ] - Yes [ ] - have you been paying reduced rate NI contributions? - No [ ] - Yes [ ] Have you worked at all in the last two years before reaching State Pension age? - No [ ] Go to Part 7. - Yes [ ] Did you pay NI contributions during this employment? - No [ ] Go to Part 7. - Yes [ ] Tell us about any employers you have had in this period. #### Employer 1 Employer's name and address. If you know the wages are dealt with at a different address, please give us that address, including the postcode. \| Payroll, staff or other reference number. \| \|------------------------------------------\| \| If you do not know it, tell us the job or department. \| Date you started work for this employer \| / / \| Date you stopped work for this employer \| / / \| If you have stopped working for them. #### Employer 2 Employer's name and address. If you know the wages are dealt with at a different address, please give us that address, including the postcode. \| Payroll, staff or other reference number. \| \|------------------------------------------\| \| If you do not know it, tell us the job or department. \| Date you started work for this employer \| / / \| Date you stopped work for this employer \| / / \| If you have stopped working for them. If you have had more than 2 employers, tell us about them in Part 9. Part 7: About time in hospital Have you been in hospital since you reached State Pension age, or the date you want to start receiving your State Pension from? No ☐ Go to Part 8. Yes ☐ Tell us about this below. Name of hospital Address and postcode of hospital Hospital phone number Ward name or number Date you went into hospital Date you came out of hospital Part 8: About other benefits Please read Part 8 of your Notes booklet to help you fill in this part. Have you, your husband, wife or civil partner ever claimed any of these benefits in England, Scotland, Wales, Northern Ireland or the Isle of Man? Please tick to tell us which benefits were claimed and who claimed the benefit. \| Benefit \| You \| Your husband, wife or civil partner \| \|--------------------------------\|-----\|-------------------------------------\| \| State Pension \| ☐ \| ☐ \| \| Graduated Retirement Benefit \| ☐ \| ☐ \| \| Widow's Benefit \| ☐ \| ☐ \| \| Bereavement benefits \| ☐ \| ☐ \| ### Part 8: About other benefits continued \| Question \| Yes \| No \| Action \| \|--------------------------------------------------------------------------\|-----\|----\|---------------------------------------------\| \| Are you or your husband, wife or civil partner getting or waiting to hear about any benefits? \| \| \| Go to Part 9. \| \| Benefit 1 \| \| \| \| \| Name of the benefit \| \| \| \| \| Who is getting or waiting to hear about this? \| \| \| \| \| You \| \| \| \| \| Your husband, wife or civil partner \| \| \| \| \| Reference number. \| \| \| \| \| This is on letters about the benefit. \| \| \| \| \| Benefit 2 \| \| \| \| \| Name of the benefit \| \| \| \| \| Who is getting or waiting to hear about this? \| \| \| \| \| You \| \| \| \| \| Your husband, wife or civil partner \| \| \| \| \| Reference number. \| \| \| \| \| This is on letters about the benefit. \| \| \| \| \| If you or your husband, wife or civil partner get more than 2 benefits, tell us about them in Part 9. \| \| \| \| \| Is anyone getting an increase of their social security benefit for you? \| \| \| \| \| No \| \| \| \| \| Yes \| \| \| Which benefit are they getting increased? \| \| Have you received Child Benefit at any time since 1978? \| \| \| \| \| No \| \| \| \| \| Yes \| \| \| \| Part 9: Other information Use this space to tell us anything else you think we might need to know. You can continue on a separate piece of paper if you need to. If you continue on a separate piece of paper, make sure you • write your full name, address and NI number on it • sign and date it. Part 10: Pension Credit Have you applied for Pension Credit? When you claim your State Pension, why not ask about Pension Credit too? Pension Credit is an income related benefit for those who have reached the minimum qualifying age and live in Great Britain. You might still get Pension Credit if you own your own home or live with your family. Call Freephone today 0800 99 1234. Or we could give you a call and answer any of your questions and complete your application over the phone. We also offer a face-to-face home visit service for people who may need more help. Tick this box if you would like us to contact you about Pension Credit. Part 11: Declaration I declare that I have read the Notes and I understand them. I declare that the information I have given on this form is correct and complete. I understand that if I give information that is not correct, my benefit may be stopped and you may take legal or other action against me. I understand I must tell you straight away by phone or in writing of any changes that may affect my claim. If I do not tell you straight away, you may take legal or other action against me. This is my claim for State Pension. \| Signature \| Date \| \|-----------\|------\| \| \| \| We treat these documents as valuable, and will send them back to you as soon as possible: - marriage certificate - civil partnership certificate - certificate of annulment - certificate of civil partnership dissolution - decree absolute - decree of divorce. For office use only If you are applying for State Pension, you only need to fill in the boxes below if we ask you to. I have read back to the customer the entries I made on this form based on the information they gave me. The customer agreed they were correct. 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633d06f7795a42ef5516a2db1650356f4885b196	Freedom of Information Act 2000 Request Information regarding the number of individuals from the Black and Ethnic Minorities that were charged for an offence from periods: 2016-2017, 2017-2018 and 2018-Present Request 1. The number of individuals from the Black and Ethnic Minority that were charged for an offence from periods: 2016-2017, 2017-2018 and 2018-Present 2. The number of individuals that are Non-Black and Ethnic Minority that were charged for an offence from periods: 2015-2016, 2016-2017, 2017-2018 and 2018-Present Response In response to questions one and two, please see the attached table which provides the information you have requested for financial years 2015/16 and 2016/17. This data should be read in conjunction with the caveats appended to the table. In relation to financial year 2017/18, this data is available on our CPS website. Please see the link below for access to that data: https://www.cps.gov.uk/underlying-data/cps-decision-making-and-defendant-characteristics In response to data for financial year 2018/19, due to be published in accordance with CPS policy and is exempt from disclosure under section 22 of the Freedom of Information Act - Information intended for future publication. Please see the attached section 17 notice for an explanation of this exemption. Information Management Unit 020 3357 0899 [email protected]	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/0365-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 1, "total-input-tokens": 1773, "total-output-tokens": 429, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 1373, 1 ] ] }
100c84de8629abb0df4291e3ebed409d21eca8e8	Section 17 Notice under the Freedom of Information Act 2000 WITHHOLDING INFORMATION Section 22(1) states that information intended for future publication is exempt information if: (a) the information is held by the public authority with a view to its publication, by the authority or any other person, at some future date (whether determined or not), (b) the information was already held with a view to such publication at the time when the request for information was made, and (c) it is reasonable in all the circumstances that the information should be withheld from disclosure until the date of publication Section 22 is a qualified exemption which means that the decision to disclose the requested material is subject to a public interest test. The Crown Prosecution Service (CPS) acknowledges that there is a public interest in demonstrating the transparency of the prosecution process and the performance of the organisation. Data relating to non-conviction outcomes due to ‘disclosure issues with CPS or police’ from November 2018 is due to be published. The time required before the data is published allows for the review and validation of the figures to be included. To release this data ahead of schedule could compromise the accuracy and completeness of the data and supporting information. On balance, I do not consider that it would be in the public interest to disclose the information requested ahead of schedule.	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/0366-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 1, "total-input-tokens": 1600, "total-output-tokens": 328, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 1438, 1 ] ] }
3a9d3eef2286ee1d0bf22708a68508b28deb3122	Freedom of Information Act 2000 Request Non-disclosure issues in 2017 and 2018 that caused cases to be dropped Request 1. How many prosecution cases were dropped due to non-disclosure issues in 2017 and 2018? 2. How many cases did the CCRC refer to the Appeal Court in 2017 and 2018? 3. How many applications were made to the CCRC in 2017 and 2018 for appeals? Response The Crown Prosecution Service (CPS) holds data which shows the numbers of prosecutions that have been stopped due to an issue with disclosure. Data for financial year 2017 up to October 2018 is held within the table attached 'Disclosure issues with CPS or Police.' This is the reason used when we are unable to meet our disclosure obligations or have failed to do so. The data only includes cases where the CPS or police have not met their disclosure obligations or were unable to do so. This metric takes a narrow definition of disclosure, and requires disclosure to have failed to occur and this being reason why the case being stopped. Data for November and December 2018 is due to be published in accordance with CPS policy and is exempt from disclosure under section 22 of the Freedom of Information Act - Information intended for future publication. Please see the attached section 17 notice for an explanation of this exemption. We have interpreted CCRC to be the Criminal Cases Review Commission. The CPS is unable to provide responses to Questions two and three of your request. The CCRC website may provide you with more information. You may wish to make a request for information via the link and/or postal address as below: https://ccrc.gov.uk/	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/0367-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 2, "total-input-tokens": 2965, "total-output-tokens": 456, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 1637, 1 ], [ 1637, 1637, 2 ] ] }
6f1399c36b042091d3519c6efb8fc450df99cdf7	Freedom of Information Act 2000 Request The offences that can be prosecuted in relation to the carrying of an offensive weapons; and statistics regarding youths Request 1. Please disclose the offences which can be prosecuted in relation to the carrying of offensive weapons; 2. Please disclose the number of youths prosecuted in 2016, 2017 and 2018 where the principle offence was one of those identified in the first part of this request; 3. Please provide a breakdown showing the CPS area which prosecuted the offences and a breakdown showing the type of offence; 4. Please disclose the ages of those prosecuted. Response The Crown Prosecution Service (CPS) publishes legal guidance relating to violent crime on its website titled ‘Offensive Weapons, Knives, Bladed and Pointed Articles’ wherein reference is made to the circumstances described in Question one of your request. As the information is readily available on our website we are not obliged to respond to Question one under section 22 of the FOI Act (Information available by other means). Please see the attached section 17 notice which explains this exemption in detail. For ease of reference, please click on the link below which will take you to this guidance: https://www.cps.gov.uk/legal-guidance/offensive-weapons-knives-bladed-and-pointed-articles The CPS does not hold records relating to ‘offensive weapons’ as a principle offence category. A central record of the number of youths (defendants aged under 17), prosecuted with offences involving ‘offensive weapons’ is therefore not held. To firstly ascertain the number of youths prosecuted during the years specified with offences involving ‘offensive weapons’ and to further ascertain the CPS Area involved and age of the youth, a manual search of all cases in which a youth was prosecuted would be required. As an indication of the work this would involve prosecutions were completed against a total of 30,239 youth defendants in 2018 alone. Section 12(1) of the FOI Act means public authorities are not obliged to comply with a request for information if it estimates the cost of complying would exceed the appropriate limit. The appropriate limit for central government it is set at £600. This represents the estimated cost of one person spending 3.5 working days determining whether the department holds the information, and locating, retrieving and extracting the information. We believe that the cost of reviewing cases relating to in excess of 30,239 defendants would exceed the appropriate limit. Consequently, we are not obliged to comply with parts two to four of your request. Under Section 16 of the FOI Act we have an obligation to advise what, if any information may assist you with your request. Data held by the Ministry of Justice (MoJ) may be able to assist you as data is held relating to the relevant Police Force and can also be filtered in relation to a defendant’s age. The MoJ’s Criminal Justice Statistics can be accessed via the following link: https://www.gov.uk/government/statistics/criminal-justice-system-statistics-quarterly-december-2017 Information Management Unit 020 3357 0899 [email protected]	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/0369-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 2, "total-input-tokens": 3372, "total-output-tokens": 767, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 1572, 1 ], [ 1572, 3169, 2 ] ] }
191ba70bea4f5f9e1588cebd5b50ecc993bc8c45	Disclosure ref: 3 Sent: 22\\textsuperscript{nd} January 2019 Freedom of Information Act 2000 Request Request for all internal reports/memos/papers on the progress of the Randox retesting issue Request If you are unable to go through all the records, please could you instead send me all internal reports/memos/papers on the progress of the Randox retesting issue? Response In response to the above, the police have been organising the retesting of Randox cases samples and therefore any requests on this should be addressed to them. Their details are below: https://foi.directory/police-forces/ Information Management Unit 020 3357 0899 [email protected]	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/0370-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 1, "total-input-tokens": 1442, "total-output-tokens": 212, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 658, 1 ] ] }
cd28cf80330e7de49312e1d0545fb64536daa742	Freedom of Information Act 2000 Request The amount of money your department spent on the services of external law firms and barristers for the year ending March 31st 2019 Request I would like to know the amount of money your department spent on the services of external law firms and barristers for the year ending March 31st 2019. Please exclude legal services provided by the Government Legal Department. However, please include legal services that the Government Legal Department has outsourced to a third party. You can approximate spending levels, i.e. if you are not able to provide the exact figures, please give us your best estimate. Please note that the figure we have requested should exclude spending by your department on the GLD (Government Legal Department) and its predecessor the TSoL (Treasury Solicitor’s Department). Response The CPS confirms that we hold information regarding your request, the total amount of money the CPS has spent for the financial year 1 April 2018 to 31 March 2019 is £102,872,518.71. Information Management Unit 020 3357 0899 [email protected]	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/0371-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 1, "total-input-tokens": 1615, "total-output-tokens": 309, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 1094, 1 ] ] }
270ba4e01eed91f71059076781d11d46236164e4	Freedom of Information Act 2000 Request Cases dealt with that involve section 45 under the Modern Slavery Act Request 1. Since it came into force on the 31st of July 2015, how many cases have been referred to the CPS in which a potential section 45 defence under the Modern Slavery Act was identified or mentioned by any party involved? What are the total figures for 2015, 2016, 2017, 2018 and the current year? Of these, how many concerned an individual under the age of 18, and how many concerned an adult? 2. Since the Modern Slavery Act came into force on the 31st of July 2015, how many cases referred to the CPS concerning a potential victim of human trafficking coerced into committing a crime have not been brought before a court (or charges pressed)? What are the total figures for 2015, 2016, 2017, 2018 and the current year? Of these, how many concerned an individual under the age of 18, and how many concerned an adult? 3. Since the Modern Slavery Act came into force on the 31st of July 2015, how many cases referred to the CPS concerning a potential victim of human trafficking coerced into committing a crime have been brought before a court (or charges pressed)? What are the total figures for 2015, 2016, 2017, 2018 and the current year? Of these, how many concerned an individual under the age of 18, and how many concerned an adult? 4. Do you have any statistics regarding how many cases referred to the CPS before the effective date of the Modern Slavery Act concerned a potential victim of human trafficking coerced into committing a crime? Of these, how many were brought before a court (or charges pressed), and how many were not? Do you have a breakdown by year? Do you have a breakdown by age, in the manner discussed in my other requests? 5. Since the Modern Slavery Act came into force, in how many instances relating to potential victims of human trafficking forced to commit crimes have prosecutors exercised their discretion not to prosecute a case that is not in the public interest? Do you have a yearly breakdown? Do you have a breakdown for under- and over-18s? Response The Crown Prosecution Service (CPS) does not maintain any records of offences or cases where a potential section 45 defence was identified or raised. Therefore we are also unable to provide data for those under 18 and adults. The CPS does not maintain any records of cases concerning a potential victim of human trafficking who was coerced into committing a criminal offence which were not prosecuted. The CPS does not maintain any records of charges or prosecution for offences or cases concerning a potential victim of human trafficking who was coerced into committing a criminal offence. Prior to the introduction of the Modern Slavery Act, prosecutors were able to exercise their public interest discretion not to prosecute a victim of trafficking who was forced to commit a criminal offence. However, the CPS does not maintain any records of cases where this has been applied. The CPS does not maintain any records of cases where prosecutors have exercised their discretion under public interest to not prosecute a potential victim of human trafficking who was coerced into committing a criminal offence. Under section 16 of the FOI Act we have an obligation to advise what, if any, information may assist you with your request; you may find it helpful to refer to our annual Violence against Women and Girls’ Report (VAWG) and our Modern Slavery Report where some information about the age of defendants is available. Please see links below: VAWG: https://www.cps.gov.uk/violence-against-women-and-girls-data Modern Slavery Report: https://www.cps.gov.uk/legal-guidance/human-trafficking-smuggling-and-slavery Information Management Unit 020 3357 0899 [email protected]	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/0372-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 2, "total-input-tokens": 3635, "total-output-tokens": 959, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 2105, 1 ], [ 2105, 3797, 2 ] ] }
f4e2e0726d3cf99eb73a6eab7f73faed41e976cc	Freedom of Information Act 2000 Request Information regarding the CPS’ CCTV maintenance and support contract Request The information I require is to do with the organisation’s CCTV maintenance and support contract. Please can you send me the information stated below: 1. Supplier of the contract for CCTV maintenance and support 2. How much the Organisation spend annually with the supplier? (if multiple suppliers please list the annual spend for each) 3. What is the renewal date of this contract? 4. What is the duration of the contract? 5. What is the review date of this contract? If possible the likely outcome of this review 6. The primary brand of the CCTV equipment. I don’t require the model just the brand. If there is various brands could you please list? 7. What is the total number of cameras in use/under this contract? 8. The description of the services provided under this contract. Please state if this contract includes more than just CCTV services. 9. Contact details of the employee responsible for the contract between the supplier and the organisation. Can you please provide me with their full contact details If there is no CCTV maintenance contract in place 1. What is the brand of CCTV cameras in use? if there is variety could you please send me a list? I do not need the serial number or model just the brand. 2. How much is the average annual spend on the in-house maintenance? 3. How many cameras are in use? 4. Is there a plan to review this at any point, if so what would the date be? 5. Who is in charge of overseeing the in-house maintenance? If there is no maintenance contract or in-house maintenance in place, is there an ad-hoc agreement? If yes, 1. Who is the supplier? Is this varies could you please list? 2. What is the brand of CCTV cameras in use? If there is variety could you please send me a list? I do not need the serial number or model just the brand. 3. How many cameras are in use? 4. How much is the average annual spends on the ad-hoc agreement? 5. What is the date it is to be reviewed? Response The Crown Prosecution Service (CPS) can confirm that the department holds some of the information you requested. Facilities management services, including CCTV maintenance and support, in 36 buildings (18 in the north of the country and 18 in the south) managed by the CPS are outsourced under facilities management contracts let by the Ministry of Justice. The facilities management model comprises: - The provision of Hard FM Services split into two regions, North and South; - The provision of Soft FM Services split into two regions, North and South; - The provision of an independent FM Helpdesk and Assurance Integrator service to act as the central performance and information hub for the FM model. CCTV maintenance and support services form part of the Hard Services Contracts. Information about the contract values, renewal dates, duration, review dates, description of services and contact details for the contracts is reasonably accessible to you by other means and is therefore exempt under s.21 of the FOIA. Please find attached Section 17 refusal notice. Details of the contracts can be found on contract finder and are available via the following links: https://www.contractsfinder.service.gov.uk/Notice/61c096f1-0f76-4f0b-8659-8305e0b0e89f https://www.contractsfinder.service.gov.uk/Notice/bde092a5-ab33-449e-9bbb-6d59688d7fd8 The primary brand of the CCTV equipment and the total number of cameras in use under these contracts is not held. Information Management Unit 020 3357 0899 [email protected]	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/0374-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 2, "total-input-tokens": 3745, "total-output-tokens": 924, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 1758, 1 ], [ 1758, 3585, 2 ] ] }
f2e23009bd3eec9a9b08f0ad13f6a58442daa28c	Freedom of Information Act 2000 Request Questions in regards to criminal records Request Q1. When the CPS are arranging a prosecution case how do they check if the defendant has a previous criminal record, who is responsible for maintaining and updating the criminal record database, where is the data stored, is it a police maintained database, is there a charge for accessing the database, is the stored data supplied in an encrypted form, and who has authorised access to search the records? - The police submit the CPS with a case at the start of a prosecution and this includes a print out from the Police National Database that details any convictions. Q2. What is the official name for the database of offender’s prosecution records? - The Police National Computer. Q3. Regarding historic criminal records for an individual, how long is the data kept on file, what is the deletion policy, and does the data include convictions in Scotland or whilst abroad? - The policy for retention of data and what data to store on the PNC? Q4. How does the CPS send documents to any alleged offender of \`no fixed address and who refuses to engage with the legal system by refusing to seek the representation of a solicitor? Response The police submit a case to the Crown Prosecution Service (CPS) at the start of a prosecution and this includes a print out from the Police National Computer (PNC) that details any known convictions. The management of the PNC is operated by the police the CPS has no independent access to the PNC. The official name for the database of offender’s prosecution records is known as the Police National Computer (PNC). The policy for retention of data and what data is stored on the PNC is managed by the police. The policy varies between police forces, some operate self-service on the defendant. This is a case where the defendant is known to the police. If the CPS is unable to serve case material on the defendant electronically or where the defendant has no fixed address, the case papers are printed out at the first hearing in the magistrates' courts and handed to the defendant on the day of the hearing. Under section 16 of the FOI Act there is a duty to provide advice and assistance; you may find it helpful and worthwhile to refer to the Police for questions one to three as the maybe able to assist you further. Please see link below: https://foi.directory/police-forces/ Information Management Unit 020 3357 0899 [email protected]	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/0375-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 2, "total-input-tokens": 3072, "total-output-tokens": 605, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 1746, 1 ], [ 1746, 2477, 2 ] ] }
db94bb3b8fdaa25e654794a72faac75102bef71d	Freedom of Information Act 2000 Request Brief summary of the cases conducted by the Counter-Terrorism Division since 2006 Request The Counter-Terrorism Division of the Crown Prosecution Service (CPS) successful prosecutions since end 2006 has been removed and updated to include only successful prosecutions since 2016. I would like to request the list and brief summary of cases which have been conducted since 2006. Response The Crown Prosecution Service (CPS) has interpreted that your request refers to information that no longer appears on the CPS website. Due to the age of the cases referred to in your request, the Crown Prosecution Service (CPS) has deleted the information from its website in line with its current web publishing policy. For your information our Retention Schedule can be accessed via the following link: https://www.cps.gov.uk/publication/cps-records-management-manual-incorporating-cps-retention-schedule The list and brief summary of cases conducted since 2006 as described can now be located on archived versions of the CPS website held on the UK Government Web Archive. For this reason, the information requested is withheld under section 21 of the FOI Act – information accessible by other means. Please see the attached Section 17 Refusal Notice for an explanation of this exemption. For assistance, the information requested can be accessed via the following links: https://webarchive.nationalarchives.gov.uk/\*/http://www.cps.gov.uk/ https://webarchive.nationalarchives.gov.uk/20180702132916/https://www.cps.gov.uk/counter-terrorism-division-crown-prosecution-service-cps-successful-prosecutions-end-2006	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/0377-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 2, "total-input-tokens": 2881, "total-output-tokens": 458, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 1652, 1 ], [ 1652, 1652, 2 ] ] }
0c0f656cc7e9f5d87806e314ff44d9e7763bfac5	\| Time \| Session \| \|--------------\|-------------------------------------------------------------------------\| \| 10:00 – 10.15\| Arrival and coffee \| \| 10.15 – 10.30\| Introductory Remarks \| \| \| Marcia Jackson, The National Archives \| \| 10.30 – 11.15\| Local Land Charges Register - the data challenge \| \| \| Graham Mead, HM Land Registry \| \| 11.15 – 12.00\| Orphan Works Update \| \| \| Sue Williams, Intellectual Property Office \| \| 12:00 – 12.30\| PSI Update and Exceptions to Marginal Costing \| \| \| Jo Ellis and Howard Davies, The National Archives \| \| 12:30 - 13:30\| Lunch \| \| 13:30 – 14:00\| The Environment Agency move towards Open Data – a different perspective \| \| \| Michael Rose, Environment Agency \| \| 14:00 - 14:30\| Creating an IP Hub \| \| \| Vera Owen, TSol \| \| 14:30 – 15.15\| Open Data Developments at Ordnance Survey \| \| \| John Carpenter, Ordnance Survey \|	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/3641-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 1, "total-input-tokens": 2047, "total-output-tokens": 348, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 1633, 1 ] ] }
2510971bfa3857b5635346c49f62cc78ce416a75	\| Time \| Session \| \|--------------\|-------------------------------------------------------------------------\| \| 10.15-10.45 \| Arrival and Coffee \| \| 10.45-11.00 \| Introductory Remarks and News From TNA \| \| \| Malcolm Todd \| \| 11.00-11.45 \| Environment Agency Licensing Review \| \| \| Will Lidbetter \| \| 11.45-12.30 \| Review of Information Fair Trader Scheme \| \| \| John Williams and Howard Davies \| \| 12.30-13.30 \| Lunch \| \| 13.30-14.00 \| Ordnance Survey Developer Licence \| \| \| Andrea Buckle and Tony Jardine \| \| 14.00-14.30 \| Coal Authority Information Strategy \| \| \| Eric Woss \| \| 14.30-14.45 \| AOB and Closing Remarks \| \| \| Malcolm Todd \|	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/3642-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 1, "total-input-tokens": 1858, "total-output-tokens": 287, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 1457, 1 ] ] }
efedd2c37ac77c047e07627b9df9e521eb3d0484	GENERAL AUTHORITY TO THE OFFICE OF RAIL REGULATION 1. The Secretary of State, in exercise of the power conferred on him by section 8 of the Railways Act 1993 (the Act), hereby gives to the Office of Rail Regulation (ORR) the following general authority, which replaces the general authority given on 31 March 1994. 2. Subject to the following provisions of this authority the ORR is authorised to grant a licence to any person whom it is satisfied demonstrates: a) good repute; b) financial fitness; c) professional competence; and d) appropriate insurance cover for civil liabilities consistent with the criteria ORR applies in respect of qualifications for a European licence, as described in Schedule 2 of the Railways (Licensing of Railway Undertakings) Regulations 2005. 3. The ORR is authorised to grant a licence on such terms and conditions as the ORR considers appropriate, but, except with the consent of the Secretary of State, a licence may not contain any condition which relates to the level of any fares charged for travel by means of railway passenger services. 4. The ORR shall seek the Secretary of State’s agreement to any material changes it proposes to make to its template licences, and in particular, but not limited to, the standard licence conditions relating to: (i) Participation in approved schemes for through ticketing and network benefits; (ii) Membership of the Rail Delivery Group (RDG) and compliance with the RDG Articles; (iii) Cooperation with Network Rail and passenger train and station operators so as to secure the provision of appropriate, accurate and timely information for passengers; (iv) Policy statements for meeting the needs of disabled passengers which take into account the Secretary of State’s Code of Practice published pursuant to section 71B of the Act; (v) The publication of and compliance with procedures for handling complaints; and (vi) Liaison with Passenger Focus and London TravelWatch. 5. This General Authority will be reviewed within 5 years of the date on which it is issued. Paul Collins (Deputy Director, Rail Strategy) Signed by authority of the Secretary of State for Transport 20 May 2014	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/3643-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 1, "total-input-tokens": 1823, "total-output-tokens": 523, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 2199, 1 ] ] }
87f86d09388ce71ef8f4c52d3542ad5a2124daa6	Licensing guidance on how to apply for operator licences and licence exemptions October 2019 ## Contents 1. Introduction 3 2. The licensing system 4 3. Making an application 8 4. Authorisation Criteria 12 5. Conditions 16 6. Third party liability insurance 22 7. Change of control 26 8. Compliance 29 9. ORR’s licence exemption policy 32 Annex A: Statutory Notice template 35 Annex B: Director’s statement 36 Annex C: Insurance checklist 37 1. Introduction This document is to help guide those applying for railway licences and licence exemptions. It does not commit the Office of Rail and Road (ORR) in any individual case to making a particular decision; this is a general overview and is not intended to cover every circumstance as we will need to consider each application on its own merits. If anything is not clear, please let us know by contacting [email protected]. Purpose of the document This guidance is for operators and prospective operators of trains, stations, networks and light maintenance depots (LMDs). It will help you submit a full application for a licence or licence exemption, with supporting evidence. Where you do not follow our procedures, give us all the information we need, or allow sufficient time, we might not be able to license you before your planned start date. We only cover licensing matters in this guidance. You will also normally need to consider other issues such as health and safety obligations and access agreements before starting your operations. See our guidance “Starting mainline rail operations: a guide to the regulatory framework”(^1). We encourage anyone who needs a licence or licence exemption to discuss their proposals with us at an early stage. Which chapters apply to you? If you are applying for a licence, read chapters 2-8 of this guidance. If you are just applying for a Statement of National Regulatory Provisions (SNRP) then read chapters 2, 3, 5, 6 and 7. If you are just applying for a licence exemption, read chapters 2, 3 and 9. If you already have a licence or SNRP, you need to read chapters 5 to 8. (^1) [http://orr.gov.uk/\_\_data/assets/pdf_file/0015/4434/starting-mainline-operations.pdf](http://orr.gov.uk/__data/assets/pdf_file/0015/4434/starting-mainline-operations.pdf) 2. The licensing system It is an offence to operate railway assets without an appropriate licence or licence exemption. Once received, the holder must continue to comply with the terms and conditions applied. Licences help ensure operators are fit and proper to run a railway - applicants must satisfy requirements as to good repute, professional safety competence, financial fitness and insurance cover for civil liabilities. Through licensing we promote effective and efficient working relationships between industry parties and we can hold individual operators to account in the public interest. European licences The Railway (Licensing of Railway Undertakings) Regulations 2005 require most people who want to operate passenger trains or freight trains in Great Britain to hold an appropriate European licence. We can issue these licences following a statutory consultation process and in principle they are valid in any EEA state. We grant two types of European licence: - European passenger licence: Authorises a railway company to run passenger trains. This type of licence is typically held by passenger train operators who run on the mainline. - European freight licence: Authorises a railway company to run freight trains. This type of licence is typically held by freight train operators who run on the mainline. Statement of National Regulatory Provisions (SNRP) A European licence holder operating in Great Britain must also have and comply with a Statement of National Regulatory Provisions (SNRP) that we issue. We use the conditions in a SNRP to bring consistency with operators granted a Railways Act licence and to promote effective and efficient working relationships between industry parties. For example, conditions can bind operators into common arrangements and standards for ticketing, complaints handling, disability policies and passenger information that we can enforce. Railways Act 1993 – licences Section 6 of the Railways Act 1993 makes it an offence to act as the operator of a railway asset without holding a Railways Act licence or licence exemption. These licences cover some operations not covered by the 2005 Regulations. This applies to all railway asset operators regardless of the scale of operations and includes operators of privately owned freight terminals and other minor networks. Railway assets are trains, networks, stations and light maintenance depots. An operator is “the person having management of that railway asset for the time being”. Railways Act licences are issued on the same criteria as European licences. However, the conditions are in the licence itself rather than in a separate SNRP. Types of licences There are five different Railways Act licences, one for each category of railway asset: - Network licence: Authorises a person to be the operator of a network, and trains being used on a network for any purpose comprised in the operation of the network. - Passenger train licence: Authorises a person to be the operator of a train being used on a network for the purpose of carrying passengers by railway. - Non-passenger train licence: Authorises a person to be the operator of other trains being used on a network. This is the type of licence held by some rail maintenance and renewal companies. - Station licence: Authorises a person to operate one or more specified stations. - Light maintenance depot licence: Authorises a person to operate one or more specified light maintenance depots. Definition of an operator The operator of a railway asset is the body with the management of that railway asset for the time being. Normally there will only be one operator of a railway asset due to the practical implications of compliance with licence conditions, and to avoid ambiguity or uncertainty. Identifying the operator is usually straightforward. For example, the operator of a train gives the train driver management instructions (other than signalling instructions). The operator of a station manages the provision of facilities and services at that station to passengers and train operators. This would normally include station staff management and providing customer information. The operator of an LMD manages the provision of light maintenance services at that depot. For example, controlling depot staff and the movement of trains within the depot. The operator of a network is normally in control of the provision of network facilities, such as signalling. Who can be an operator? The operator can be an individual, company or some other form of organisation such as a registered charity. For licensing purposes, it must be a legally distinct entity. So, a division or individual within a company cannot be the operator. Licences or licence exemptions cannot normally be held at a group level for other companies or subsidiaries in that group. The operator can be different to the owner. Network policy Most of the Great Britain’s mainline network is operated by Network Rail under a licence enforced by ORR. Most smaller and non-mainline networks are exempted by legislation or will qualify for an ORR exemption (see Chapter 9). Some other networks will need to be licensed by ORR. We look at each case on its merits. If the network is of strategic, national or regional importance a licence will normally be needed. The benefits from having a national rail network may need to be secured by licensing. Licences provide a framework for a common set of industry rules and standards, and protect the public. The licence conditions will depend on the interests being protected but will normally include at least those in ORR’s basic model network licence on our website. A licence may not be necessary, in exceptional cases, where there are other means of securing the public interest. Licence exemptions Licence exemptions allow the operation of railway assets without the need for a licence. Licence exemptions are more straightforward than licences and usually have fewer conditions. Often they have no conditions. We will therefore consider applications for licence exemptions from prospective operators where membership of industry arrangements is not necessary. We consider each case on its merits but, as a starting point, if you do not need a mainline safety certificate or authorisation under ROGS you are likely to qualify for a licence exemption. Our licence exemptions policy is explained in 2 Link to model licences: http://orr.gov.uk/what-and-how-we-regulate/licensing/licensing-railway-operators/model-licences-and-statements-of-national-regulatory-provisions-snrps 3 The Railways and Other Guided Transport Systems (Safety) Regulations 2006 (ROGS) http://orr.gov.uk/what-and-how-we-regulate/health-and-safety/regulation-and-certification/rogs more detail in chapter 9. The government exempted various classes of assets by statutory instrument in 1994. Scope and duration Only ORR issues European licences in Great Britain. European licences are valid anywhere in the EEA. Licences, licence exemptions and SNRPs usually do not have a built-in expiry date and remain valid until revoked by ORR. Station and LMD licences authorise the operation of facilities in Great Britain. Normally, facilities covered are listed in an attached schedule. The schedule can be added to or have facilities removed. Network licences normally allow the operation of any network of a type listed in the licence and its schedule. Network Rail has its own licence which has more conditions than the standard licence. Train operator licences issued under the Act normally authorise the operation of trains anywhere in Great Britain. We do not grant these if it would be more appropriate to issue a European licence. Operators of mainline stations, network and trains should all expect to be licensed. This is because it is usually appropriate for them to belong to the standard industry arrangements and comply with ORR’s licence conditions. Planned and uncompleted facilities The licensing system does not apply to railway assets that are under construction but we can still start processing your application. Make sure you allow sufficient time to submit your application to us before you plan to start operating any railway assets. Model licences and exemptions We have published model licences and exemptions on our website[^4]. We update these models as necessary. The licences and SNRPs we actually issue may be different in some cases. 3. Making an application Introduction This chapter explains how to apply for a licence or licence exemption and the procedures we follow when assessing your application. Our aim is to ensure that we consider applications in a timely way consistent with our statutory duties and other obligations. The form and content of applications General We have separate application forms for licences and licence exemptions. These specify the minimum information needed to start processing your application. You can email your completed application to us; they don’t have to be posted. We will normally acknowledge your application within two working days of receipt with the name of the person assigned to your case. If we need more or clarified information to progress the application, we will let you know within one month. Be aware that it is an offence to make a statement to ORR that you know to be false, or to recklessly make any statement that is false. Applying for a licence and/or SNRP Application forms for Railways Act licences, European licences and SNRPs are on our website. As your application progresses we will ask you for more information about how you will comply with impending licence and SNRP conditions. The application fee of £250 must accompany every application for a Railways Act licence or European licence. You may apply for more than one type of licence using a single application form. Only one fee of £250 applies per application form. There is no fee for SNRP-only applications, where you already have a European licence or equivalent authorisation issued by another European regulator. http://www.rail-reg.gov.uk/server/show/nav.197 Operators based outside of Great Britain applying for just a SNRP may need to adapt the form for their circumstances. If so, speak to us first. We need English translations of any foreign language documents given to us. This includes a translated copy of your European licence. Your nominated contact should also be in a position to speak to us and industry bodies on the full range of licensing and operational issues. Please also see chapter 6 as you will also need third party liability insurance. Licence exemptions You should check that you are not already exempt from the licensing system, for example because all your operations are covered under the Railways (Class and Miscellaneous Exemptions) Order 1994 (CMEO)(^6). If you are not already exempt, you should fill in the licence exemption application form. The form includes explanatory notes. Please contact us with any questions before you submit your completed form. There is no fee for processing licence exemption forms. Please include maps or plans of your proposed operations if possible. Informal discussions We welcome early and informal dialogue before an application is made. We can explain our requirements, help identify other regulatory issues and discuss timescales. Although we can give early informal guidance, our opinion may change once we have considered a formal application. But, guidance at an early stage can be valuable, saving you time and expense. Consultations We will consult certain bodies before deciding whether to grant you a licence or licence exemption. We will normally inform the Department for Transport (DfT) of any applications that we receive. Before we grant a European licence, Railways Act licence or a licence exemption, we will publish a notice saying that we propose to do so and giving our reasons. We must allow 28 days for representations or objections to be made. Occasionally a longer consultation ______________________________________________________________________ (^6) Link to the CMEO [http://www.legislation.gov.uk/uksi/1994/606/contents/made](http://www.legislation.gov.uk/uksi/1994/606/contents/made) period may be appropriate. The notice will include your details such as company name, company number, address, and company officer names.(^7) The notice will be published on our website. Copies will also be sent to you and interested parties, normally selected from the following list: - DfT - Network Rail Infrastructure Ltd (Network Rail) - the Railway Safety and Standards Board (RSSB) - the British Transport Police Authority (BTPA) - the Rail Delivery Group (RDG) - Transport Focus - London TravelWatch - Transport Scotland - the Welsh Government - relevant local representative bodies. There should be as short a time as possible between the end of the consultation period and the grant of any licence. Where more than nine months have passed between the consultation and the grant of the licence, we will normally repeat the consultation. We do not consult on SNRP applications because the operator should have already passed the ‘fit and proper’ test in the EU licensing process. Timescales We need sufficient time to reach an informed decision on every application. If your application is not complete and you need to do further work, you should also allow time for that. For example, we will need to consider your third party liability insurance arrangements before issuing you with a licence or SNRP. You should normally allow at least 12 weeks between making a licence application and when you want to start operations. Allow at least eight weeks for a licence exemption or SNRP-only application. You should also factor in the time needed to obtain any necessary safety approvals or other permissions. You should allow longer if you think your application is complex, raises new issues, or is likely to result in concerns from other parties. In any event, we will aim to make a decision about whether to grant an authorisation within one (^7) See template statutory notice at Annex A. month of receipt of all the information we need. However, please do not apply too early, or speculatively, as we may ask you to reapply at a later date. Timescales can be discussed with us beforehand. We cannot grant interim or temporary licences to cover operations during the application process. You must not start operations until any necessary licence or licence exemption has been granted. Confidentiality and the Freedom of Information Act ORR is committed to openness and transparency, but we appreciate that during an application we may receive information that is commercially sensitive. You should ask us to treat sensitive information as “confidential”. Please indicate clearly where this is the case. The Railways Act limits the information we may disclose but we may release information under certain defined circumstances. Also the Freedom of Information Act 2000 (FOIA) gives any person the right to request information from us. There are certain exemptions from the FOIA relevant to information held by us through the exercise of our licensing duties. Where information obtained by us in the course of a licence application falls within the prohibition on disclosure in of the Railways Act, it would be exempt from disclosure under the FOIA. If we receive an FOIA information request covered by the prohibition on disclosure in the Act, we will consider whether it is appropriate to seek your consent to disclose that information. We must have your permission before disclosing it. We must however publish certain high level information about applicants and proposed operations on our website during the statutory consultation stage. We also send a redacted copy of the licence application form to DfT. ______________________________________________________________________ 8 The FOIA says that where the disclosure of information is “prohibited by another enactment” it is exempt information for the purposes of the FOIA. 4. Authorisation Criteria Introduction In deciding whether to grant a licence we have to be satisfied that you are ‘fit and proper’. If you want a licence you must be of good repute, financially fit, professionally competent and adequately insured. All licence applicants must meet these criteria at the application stage to get a licence. European licence holders must also be able to demonstrate compliance on an ongoing basis. If you are only applying for a SNRP or a licence exemption, you do not need to read the rest of this chapter. Good repute We will only grant you a licence if you are of good repute. You should provide us with details of any: - bankruptcy orders (in the UK or elsewhere) which have been made against any company officers - current or pending legal proceedings against company officers or major shareholders - prosecutions or enforcement orders made by ORR, environmental agencies, or local authorities, and - any breaches of customs law. We may also undertake our own enquiries with other bodies or agencies or ask you for further information. A declaration under this section does not necessarily mean that we won’t grant you a licence. Financial fitness You will meet the required standard of financial fitness when you can show that you can meet your likely obligations, established under realistic assumptions, for the next 12 months. For undertakings with annual revenues of less than €5 million from rail transport activities, we may consider the requirement regarding its ability to meet actual and potential obligations for a period of 12 months from the start of operations as fulfilled(^9), if the undertaking can demonstrate that its net capital is at least €100,000. If you are submitting a business plan, forecast, profit and loss statements, cash flows and balance sheets, please ensure you disclose the following: - available funds (including bank balance, pledged overdraft provisions and loans) - funds and assets available as security - working capital - relevant capital costs - charges on assets - taxes and social security contributions If it is not possible to supply this information, you should contact ORR at an early stage. We do not grant licences where an applicant has substantial arrears of taxes or social security payments. In considering the financial fitness information you provide, ORR is not providing any form of assurance which third parties may rely on, for any purpose. The chart overleaf is to help you decide what information you need to send to us: ______________________________________________________________________ (^9) In accordance with Article 20(1) of Directive 2012/34/EU [http://eur-lex.europa.eu/legal-content/EN/ALL/?uri=OJ:L:2012:343:TOC](http://eur-lex.europa.eu/legal-content/EN/ALL/?uri=OJ:L:2012:343:TOC) Is your application in connection with franchised operations or a concession awarded by a public body? Yes You do not need to supply any further information at this stage, we will contact the awarding authority. We reserve the right to ask you for further information. No Do you have audited accounts confirming your going concern status? Yes Send us a copy of these accounts. No Is your turnover under €5m, and do you have net assets exceeding €100,000? Yes Under EU Regulation\* we deem small companies financially fit provided their net assets exceed €100,000. Please provide this information detailing your turnover and net assets. No Do you have a parent company or other third party providing full funding support for at least 12 months? Yes Please provide: - a copy of your business plan, covering at least the first 12 months of operations. Include a profit and loss account, cash flow statement and a balance sheet. - details of ‘off balance sheet’, contingent liabilities and charges. - the most recent audited accounts of the provider of financial support. - documentation showing the full financial support. No Please provide: - a copy of your business plan covering at least the first 12 months of operations. Include a profit and loss account, a cash flow statement and a balance sheet. - details of ‘off balance sheet’, contingent liabilities and charges. - an overview of the sources of funds available covering at least the first 12 months of operations and related supporting documentation. * Under the Commission Implementing Regulation (EU) 2015/171 Professional competence We will consider that you are professionally competent if we are satisfied that you meet all the necessary requirements of health and safety law. We do not normally impose any additional requirements as licensing conditions. We will liaise with our health and safety inspectors as necessary. We have published separate guidance on health and safety regulation on our website. Third party liability insurance You need to have adequate third party liability insurance, or equivalent arrangements, covering your liabilities in the event of accidents to passengers, luggage, freight, mail and third parties. Insurance is only considered adequate if it has been approved by ORR. Therefore, you will meet this criterion if you comply with the condition for having third party liability insurance as explained in chapters 5 and 6. ## 5. Conditions Conditions normally included in licences and SNRPs: \| Standard condition \| Passenger licence / SNRP \| Non-passenger licence \| Freight SNRP \| Station licence \| Light Maintenance Depot licence \| Network licence \| \|-------------------------------------\|--------------------------\|-----------------------\|-------------\|----------------\|---------------------------------\|-----------------\| \| 1 Insurance against Third Party Liability \| ✓ \| ✓ \| ✓ \| ✓ \| ✓ \| ✓ \| \| 2 Claims Allocation and Handling \| ✓ \| ✓ \| ✓ \| ✓ \| ✓ \| ✓ \| \| 3 Through Tickets and Network Benefits \| ✓ \| \| \| ✓ \| ✓ \| ✓ \| \| 4 Information for Passengers \| ✓ \| \| \| ✓ \| ✓ \| ✓ \| \| 5 Accessible Travel Policy \| ✓ \| \| \| ✓ \| \| \| \| 6 Complaints Handling \| ✓ \| \| \| ✓ \| \| \| \| 7 Liaison with the PC and LTUC \| ✓ \| \| \| ✓ \| \| \| \| 8 RSSB Membership \| ✓ \| ✓ \| ✓ \| ✓ \| \| \| \| 9 Safety and standards \| ✓ \| ✓ \| ✓ \| ✓ \| ✓ \| \| \| 10 Environmental Matters \| ✓ \| ✓ \| ✓ \| ✓ \| ✓ \| \| \| 11 Payment of Fees \| ✓ \| ✓ \| ✓ \| ✓ \| ✓ \| \| \| 12 Change of Control \| ✓ \| ✓ \| ✓ \| ✓ \| ✓ \| \| \| 13 Non-Discrimination \| \| \| \| ✓ \| ✓ \| \| \| 14 Emergency Access \| \| \| \| ✓ \| ✓ \| \| \| 15 Co-operation with TfL \| \| \| \| ✓ \| \| \| \| 16 Changes to the Schedule \| \| \| \| ✓ \| \| \| \| 27 \Station asset information \| \| \| \| ✓ \| \| \| \| 28 Rail Delivery Group \| ✓ \| ✓ \| \| \| \| \| - only for station operators with stewardship responsibilities Conditions 17-26 are not standard conditions and only apply to certain operators Conditions 17-26 are not standard conditions and only apply to certain operators Conditions Licences help ensure operators are fit and proper to run a railway - applicants must satisfy requirements as to good repute, professional safety competence, financial fitness and insurance cover for civil liabilities. Through licensing we promote effective and efficient working relationships between industry parties and we can hold individual operators to account in the public interest. Insurance against third party liability All operators are required to hold and maintain third party liability insurance on terms approved by ORR. See chapter 6. Claims allocation and handling All operators must join and comply with approved industry arrangements governing the allocation of liabilities amongst operators and the handling of claims. The only approved arrangements are those in the Claims Allocation and Handling Agreement (CAHA). You should sign up to CAHA before your licence or SNRP comes into effect. Through-tickets and network benefits Most passenger train operators are required to join and comply with industry arrangements approved by the Secretary of State about the sale and validity of through tickets and the operation of a national telephone enquiry service. The Association of Train Operating Companies (ATOC) manages approved schemes that deal with these and other matters. These arrangements are the Ticketing and Settlement Agreement and the National Rail Enquiry Scheme. Membership of these schemes will normally meet our requirements. This condition is not imposed on passenger train operators who only offer charter services. Information for passengers Passenger train operators are required to provide appropriate, accurate and timely information to enable railway passengers and prospective passengers to plan and make their journeys with a reasonable degree of assurance, including when there is disruption. They must also cooperate with other train operators and Network Rail to enable Network Rail to carry out appropriate planning of train services and to establish or change appropriate timetables to enable it to satisfy its timetabling obligations. Station operators should cooperate with train operators so far as is reasonably necessary to enable them to meet their obligations to provide information to passengers. Passenger train and station operators should also develop, publish and follow a code of practice(^{10}). Provision of services for passengers with disabilities* Passenger train and station operators are normally required to produce an Accessible Travel Policy (ATP). The requirements are set out in guidance. Please contact ORR for further information(^{11}). Complaints procedure Passenger train and station operators must establish a complaints handling procedure (CHP) and become members of the Relevant ADR Scheme(^{12}). Please contact ORR for further guidance(^{13}). Liaison with the PC and LTUC Passenger train and station operators must engage in reasonable liaison with the Passengers’ Council (PC) and the London Transport Users Committee (LTUC). They are also known as Transport Focus and London TravelWatch respectively. This includes attending meetings and providing information reasonably required. RSSB membership Licensed train operators should become members of the Railways Safety and Standards Board (RSSB). They should complete the formal and legal documentation associated with membership within three months of the licence coming into force. You should comply with the associated obligations of membership from the date your licence comes into force. A turnover threshold applies and smaller operators may not need to join RSSB straightaway. See the RSSB constitution agreement(^{14}). ______________________________________________________________________ (^{10}) See the ORR website and [http://www.rail-reg.gov.uk/upload/pdf/passenger-information-regulatory-statement.pdf](http://www.rail-reg.gov.uk/upload/pdf/passenger-information-regulatory-statement.pdf) (^{11}) Email: [email protected] (^{12}) “Relevant ADR Scheme” means - the alternative dispute resolution scheme (or alternative dispute resolution scheme) procured by Rail Delivery Group (the Rail Ombudsman) (^{13}) Email: [email protected] (^{14}) Included on this page [http://www.rssb.co.uk/pages/about-rssb/join-rssb-next-steps.aspx](http://www.rssb.co.uk/pages/about-rssb/join-rssb-next-steps.aspx) The RSSB’s principal objective is to lead and facilitate the rail industry’s work to achieve continuous improvement in railway health and safety performance. This requires the involvement of as wide a range of industry parties as possible and, in particular, all those that operate trains on Network Rail’s network. Railway Group Standards Operators are required to comply with the Railway Group Standards (RGS) or applicable Rail Industry Standards that apply to their operations. The RGS are set by the RSSB. Environmental matters All operators are required to produce an environmental policy within six months of their licence or SNRP coming into effect. There is separate ORR guidance to help(^\\text{15}) and you should take it into account when preparing your policy. You should send us a copy of the policy, with details of your supporting objectives and management arrangements, both when they are first developed and when any material changes are made. We will review your policies to check that they conform with our guidance. This is to ensure that they comply with our requirements for policies to be established. However, we do not assess and approve the policies themselves. Payment of fees This condition gives us the option to recover our costs from operators (and in some situations costs incurred by the Competition and Markets Authority). However, we currently recover most of the costs of economic regulation through Network Rail. Change of control All licence holders must tell us about any changes of control. Please see chapter 7 for details. Non-discrimination All station, LMD and network licences include a condition that the holder should not unduly discriminate between individual parties or groups as part of its licensed activities. In most cases where a licence holder complies with relevant legislation concerning access rights (^{15}) [http://www.rail-reg.gov.uk/upload/pdf/348.pdf](http://www.rail-reg.gov.uk/upload/pdf/348.pdf) and competition law, they will not breach this condition. However, this condition is retained for exceptional cases related to our duties under section 4 of the Act. Emergency access Station, network and LMD operators should give access to any other person where necessary or expedient to alleviate the effect of an emergency, so far as they are legally and practically able. Co-operation with Transport for London Station operators must co-operate with Transport for London for the purpose of ensuring the efficient operation of railway services and the provision of railway facilities; and co-ordinating, where possible, anticipated investment projects. Changes to the schedule This condition provides a mechanism for station, LMD and some network operators to change the licence schedules listing the assets that they are authorised to operate, as needed. Station asset information Station licence holders shall provide to ORR such information as ORR may reasonably require about the station assets, including their condition, capability and capacity. This condition is only for station operators with stewardship responsibilities given to them under a franchise or concession. Rail Delivery Group All licensed passenger and freight operators using Network Rail’s network must become Licensed Members of the Rail Delivery Group (RDG). You must comply with the associated obligations of membership. These obligations are set out in the RDG articles of association. A turnover threshold for membership applies which, if met, requires licence holders to ensure that an executive director or senior executive of their group should be nominated as director and alternate to sit on the RDG leadership group. The purpose of RDG is to be the leadership body for Great Britain’s rail industry, and to develop, promote and establish policies, strategies and plans aimed at reducing industry costs and improving value for money for passengers and taxpayers. To achieve this RDG requires the engagement and support of key industry parties. Further information about membership can be obtained from RDG at [email protected] or from its website\\textsuperscript{16}. \\textsuperscript{16} See the RDG website at http://www.raildeliverygroup.com/ 6. Third party liability insurance Introduction All licensed operators and some licence exemption holders, are required to maintain third party liability insurance (TPLI) on terms approved by ORR. We do not require any other type of insurance. We must approve your TPLI arrangements before we will grant you a licence or SNRP (or in some cases a licence exemption). Scope of policies In addition to other insurance required by law, if you are covered by this obligation, you must effect and maintain insurance in respect of third party risks which cover you, your employees, and any other person expressly required to be included as an insured, in respect of any legal liability which may be incurred in respect of death or bodily injury to any person and loss or damage to property arising from licensed activities. Your arrangements should also fulfil the relevant requirements of the Passenger Rights and Obligations Regulations17, and those under the Commission Implementing Regulation (EU) 2015/171. The general approval Once we have given you a licence, our TPLI general approval will then apply to you. Not meeting the terms of the general approval could result in enforcement action. To demonstrate adequate TPLI, your policies must meet the requirements of the general approval. In summary, these are: - Provide cover of no less than £155m in respect of all liabilities. - Ensure that any exclusion of damage to property in the care, custody and control of the operator shall not apply to accompanied personal luggage. - Include as an insured any other party to the extent that such party is required to be insured or indemnified in any underlying contract or agreement with the operator. - Provide cover for any difference between its contractors or sub-contractors third party liability cover and our required level of cover. - Ensure cover is on an ‘occurrence’18 basis. 17 Regulation (EC) No 1371/2007 and The Rail Passengers’ Rights and Obligations 2010, No.1504 http://www.legislation.gov.uk/uksi/2010/1504/pdfs/uksi_20101504_en.pdf. 18 See Annex B. • Ensure cover is on a 'costs exclusive' basis. • Ensure that where an aggregate limit of indemnity applies, the limit will be reinstated at least once if the limit is exhausted. Other points to consider are: • You must have a reasonable expectation of meeting your self-insurance liabilities. • Insurance must be taken out with regulated insurers of good repute. • Insurance cover must apply at all times that operations are undertaken. • Insurance policies may contain clauses concerning rights to cancel or change terms. But each policy must require at least 30 days’ notice to be given to ORR by the insurer of any lapse, cancellation or material change to the policy. The obligation to have cover in place whenever operations are undertaken means insurance policies should not contain clauses allowing the insurer to avoid its obligations retrospectively for any reason, including non-payment of premium. If insurers could avoid their obligations retrospectively this would not provide the required level of third party protection. Policies must remain valid during the 30 days’ notice period, but the cancellation or changes can take effect after that. Self-insurance We must approve any element of self-insurance proposed as part of your TPLI cover before we will grant a licence or SNRP. Self-insurance means your financial capabilities to meet any liability to a third party for which you don’t have insurance cover. This includes any excess or deductible in policies. You must be able to demonstrate that the level of self-insurance is appropriate and you have the ability to meet any consequent obligations. Factors to include are: • A quantification of the potential third party liability risk. • An aggregate cap on self-insured liabilities; you should provide a statement of the amount provided for in the cap, evidence that the cap is in place from the date of commencement, and details of any types of losses which might not be covered by the cap. • Confirmation of your ability to meet your potential self-insured liabilities, in the form of either: (i) a statement signed by a company director certifying that s/he has considered the potential liabilities and costs in the light of the company’s business plan, and confirming that s/he has a reasonable expectation of meeting such liabilities for 12 months from the date of the certificate; or (ii) where you believe such a statement to be inappropriate, other evidence of sufficient provisions as agreed with us. ORR does not set a limit but self-insurance layers significantly above normal market levels may be questioned. We reserve the right to question any levels of self-insurance and to ask you to change the amounts associated with your insurance programme if we believe that they are excessive. Self-insurance layers should be reasonable, realistic and not excessive. Broker letters We expect all operators with a TPLI obligation to arrange for us to receive confirmation that adequate insurance is in place which complies with the general approval. You must also make sure that we are notified if you change your TPLI arrangements. Do not just wait for the renewal dates to tell us. We have designed a template broker’s letter that can be used by your brokers to make sure that all the relevant information we need is provided every time that TPLI cover is renewed or altered. Some brokers may prefer to send confirmations on their own letter headed paper. The broker should include the names of the operators covered by its letter with their company numbers. Each broker’s letter should clearly state the period the TPLI cover is effective. If you are part of an insurance facility, the broker should include a reference to this. Network Rail contractors entirely covered by Network Rail’s TPLI which do not need separate insurance, may rely on the letter provided by Network Rail to us. Broker letters are available to anyone who requests a copy and we may place them on our website. New applicants Applicants must provide us with certificates of insurance. Certificates must be binding, irrespective of a change in circumstances prior to inception or renewal of the insurance. Each certificate must: - identify each insurer and the proportion of cover each has taken - indicate the period of the policy - summarise the scope of the policy and each of its exclusions - state the governing law under which the policy is to be interpreted (for example, English law). As with current operators, your broker should complete a letter confirming compliance with ORR’s general approval, as described above. Your broker should also complete the checklist at Annex B. You should send the letter and checklist as part of your application to the person handling your case. If the insurance programme you are joining has already been approved by ORR then you should still send us a copy of the amended certificate showing your company’s name. This might occur, for example, where a group already has several insured licence holders and new companies are added to the group’s policy. Variations If you want to request approval for a type or level of cover different from that set out in the general approval you should, at an early stage, submit a fully argued case for our consideration. A request for a variation can be made at the same time as a licence application. All requests for a variation from the general approval must be made in writing. You can discuss this with us before you apply. Variation requests: - should normally be made on the basis of a risk assessment - could extend our normal licence application timescales - may be made public and consulted on. Major variations, including all variations to the £155 million minimum level of cover, should be supported by a full risk assessment provided by independent consultants - usually with railway engineering experience. A request for a variation should also include information and description about the: - nature, size, scale and scope of operations - physical and operational controls - condition, upkeep and maintenance of the track, stations, infrastructure - plans and potential for change - interaction with other networks, operators and other third parties - risks, the likelihood of them happening and the consequences. We do not normally grant variations to the following parts of the general approval: sections 3e, 3h, 3j, 3k and any part of section 4 or 5. We may grant variations to the amount of TPLI cover required at 3a, 3d, 3f, 3g, and 3i. Variation requests will be reviewed by our external insurance advisers for robustness. A request for a variation may be posted on our website for consultation. Any variations we grant will be posted on our public register and on our third party liability insurance webpage where appropriate. 7. Change of control Introduction You should tell us about any changes of control to your company. This chapter covers the procedures to follow. What is a change of control? Licences and SNRPs set out when a change of control must be notified to us. Briefly, where a person’s shareholding, or direct or indirect voting rights, of a licence holder increases to 30% or more of the total, this will normally be a change of control. Refer to your licence for the full definition. Impact of a change of control A change of control of a company that already holds a licence does not mean a new licence has to be issued. This is because the legal identity of the authorised company is the same, even if the owners have changed. However the changes may have an effect on the operator’s ability to properly discharge its obligations. So the type of information required when there is a change of control is similar to that requested of new applicants. It is possible that the change of control could affect an operator’s ongoing suitability to be authorised. So the licence holder should notify us as soon as practicable after any change of control. There is no fee. We do not normally issue comfort letters before a change of control. However, if you wish to discuss a potential or forthcoming change of control please do ask us for a meeting. Any discussions will be in confidence. This guidance only relates to licensing matters and there may be other considerations, for example under health and safety legislation or merger law. It does not cover franchising or other authorities’ procedures. Operators should also refer to the DfT, Transport Scotland and/or other bodies as appropriate. Notifying ORR Following a change of control, the licence holder must notify us in writing as soon as practicable that a change of control has taken place. We recommend you use the form on our website(^\\text{19}). Completing the form Complete a form for each new controller you have. The document is in both Microsoft Word and the Open Document format, so you can edit with any word processor. If you consider it useful, include an explanatory covering letter. In sections 1 and 2 please enter details about the licence holder and the new controller. If the new controller is a subsidiary of another company, or if the licence holder is now part of a wider company group, please enclose an organisation chart showing the new structure. In sections 3, 4 and 5 please explain any effects on the licence holder’s ability to meet its financial fitness, insurance or safety competence obligations. You may state ‘no change’ if that is the case. Attach the details referred to in section 6 as necessary. You do not need to tell us about minor legal proceedings clearly unrelated to your fitness to hold a licence. An appropriately authorised representative must sign the form. Send us the form electronically or by post to the address given. We will acknowledge receipt. ORR assessment We will assess any notified change of control in the light of all the information available. We will write to you if we need more information. Our assessment may take up to four weeks but will usually be quicker where there are no changes in circumstances. If we decide not to approve a change of control we will tell you and then consider any representations. SNRP-only holders If you have a European licence granted by a regulator in another EEA state and only have a Great Britain SNRP issued by ORR you will still need to tell us about any changes of control. But please make your status clear in the form. You can miss out sections 3, 5 and (^{19}) [http://www.rail-reg.gov.uk/server/show/nav.197](http://www.rail-reg.gov.uk/server/show/nav.197) 6. But let us know in an accompanying note if (and if so how) compliance with any of your SNRP conditions is affected. Confidentiality We respect that notifications may contain commercially sensitive information. Please clearly indicate where any information is supplied in confidence. We do not normally discuss these cases with third parties. But note we may check what you tell us with other public bodies if appropriate. See the section in chapter 3 on confidentiality. Other parties If you are aware of a change of control of another operator then please feel free to let us know, especially if you have any concerns about it. 8. Compliance Introduction You must comply with any conditions associated with your licence, licence exemption or SNRP at all times. This chapter sets out how we monitor compliance. European licence holders must also, at all times, satisfy the four authorisation criteria (see chapter 4). These are: insurance, financial fitness, good repute and professional competence. If we have serious doubts about whether you comply with any of these criteria, we may make further enquiries. If your European licence was granted by a body other than ORR, we will notify them. Conditions You must comply with all the licence, licence exemption and SNRP conditions relevant to you at all times. Failure to do so may result in enforcement action. If we have concerns that you are not complying with your obligations we may investigate. Conditions relevant to most licensed operators, as examples, will include membership of CAHA, membership of approved through-ticketing arrangements and maintaining TPLI. You must also act within the scope of your licence or licence exemption. It is an offence to conduct railway operations without authorisation. You may be prosecuted if you do. Third party liability insurance We may on occasion undertake checks on individual operators or a sample of operators to make sure TPLI cover is adequate, even where broker letters have been supplied. You should maintain records about how your insurance arrangements meet the terms of the general approval. You should therefore keep copies of all TPLI policy documents and certificates. You should request these from your brokers if they are not sent to you automatically. We may ask you at any time for copies of this documentation. You should supply it without delay. Reasons for ORR inspection could include: - a risk-based assessment by us of which operators to audit - random selection • a trigger event, such as a cancellation notice being issued or other concerns such as financial fitness • complaints, press reports, information received (from brokers and others). You must not operate railway assets unless you have appropriate insurance approved by ORR. If you wish to maintain a licence or SNRP while not operating for a short period and without full TPLI then you should apply to us in advance for a variation (see chapter 6). Financial fitness European licence holders are considered to meet the required standard of financial fitness if they can demonstrate that they can meet actual and potential obligations, established under realistic assumptions, for a period of twelve months. Under no circumstances however does ORR provide any form of assurance which third parties may rely on for any purpose. You should keep records that demonstrate your ongoing financial fitness. You should also make timely and appropriate returns to Companies House, or other regulatory bodies as required. We will not normally investigate the financial fitness of train operators franchised by, or under contract to, public authorities. This is because those authorities already closely monitor these operators. We expect them to tell us if they have concerns. We will look to suspend or revoke a European licence if we are satisfied that you no longer meet the necessary standard of financial fitness. We shall revoke a European licence, in certain circumstances, if proceedings have been commenced to wind the company up; or if an application has been made for a railway administration order on the grounds that the operator cannot pay its debts. We may grant a temporary licence in some cases. Professional competence You will normally be considered to be professionally competent if we are satisfied that you have a management organisation possessing the knowledge or experience necessary to exercise safe and reliable operations. If we find evidence that you do not have all the relevant safety authorisations, or are otherwise not complying with health and safety law, we may investigate whether you should continue to hold a European licence. This would be in addition to any other ORR action taken under health and safety legislation. Good repute We expect European licence holders to continue to be of good repute. We will investigate any concerns or complaints, on their own merits and in context of the legislation. Enforcement ORR is responsible for the enforcement of licensing conditions and investigating compliance with authorisation criteria. The purpose of licence enforcement is to ensure delivery and secure compliance with public interest obligations. Our policy and procedures on enforcement are set out in our statement ‘Economic enforcement policy and penalties statement20. The statement explains that we choose between different enforcement mechanisms where more than one applies. It also sets our principles and the way in which penalties are calculated. If you do not comply with your licensing obligations we will consider enforcement action. This may ultimately result in the suspension or revocation of your authorisation. 20 http://orr.gov.uk/\_\_data/assets/pdf_file/0018/4716/economic-enforcement-statement.pdf 9. ORR’s licence exemption policy Introduction Operators of stations and trains on the mainline network should normally expect to be licensed. It is usually appropriate for them to belong to the standard industry arrangements and comply with ORR’s licence conditions. Licence exemptions excuse named operators from the requirement to hold a licence. A licence exemption is normally appropriate where we consider, in the light of our duties, that we do not need to make an operator participate in the standard industry arrangements. As a helpful starting point and guide, if you do not need a safety certificate or authorisation for the mainline railway under ROGS you are likely to qualify for a licence exemption. But we consider each case on its merits, and there will be exceptions. You do not need an exemption if your operations are completely covered by an existing exemption as explained in this chapter. ORR can only grant licence exemptions to individual applicants. But the Secretary of State can grant licence exemptions covering a particular class or description of assets, as well as granting exemptions to individual bodies. Secretary of State exemptions The Railways (Class and Miscellaneous Exemptions) Order 1994 (CMEO) The Secretary of State has made an order which exempts various classes of assets. As a first step please check if the CMEO(^\\text{21}) covers all of your intended operations. If it does, you do not need to apply to ORR for a licence exemption. Among other things, the CMEO reflects the intention at privatisation for regulation to focus on the railway previously run by the British Railways Board (BRB). The CMEO exempts from the licensing requirements many networks, stations or LMDs that: - were capable of operation immediately before 1 April 1994, but were not then operated by BRB, London Regional Transport, or their subsidiaries, - are situated on the premises of an industrial or power generation undertaking, or forming part of a mine or quarry, or used solely in connection with building works, (^{21}) Link to the CMEO [http://www.legislation.gov.uk/uksi/1994/606/contents/made](http://www.legislation.gov.uk/uksi/1994/606/contents/made) • are situated on premises used as a museum or other place of public recreation and which are neither connected to any other network nor used in connection with other rail passenger services, and that • are named specifically in the CMEO. For example, the Old Dalby test track in Leicestershire and freight terminals and LMDs listed in Schedules 1 and 2 of the CMEO. The CMEO also exempts passenger and non-passenger train operations, but only in relation to specified networks and LMDs, and on networks within a harbour area. The CMEO exempts networks, LMDs and stations where none of the associated track is capable of supporting standard gauge (1435mm) trains. If you only operate tramways, guided buses and other light rail systems that are not standard gauge, then you do not need to apply for a licence exemption. We recommend you look at the CMEO in the light of this guidance. For example, it is important to distinguish between the ‘owner’ and the ‘operator’ of an asset. It is the operator of an asset who applies for the licence or exemption, not the owner. This is important when interpreting article 4(a) which exempts the operator (but not the owner) of facilities that were in operation immediately prior to 1 April 1994. So while someone other than BRB may have owned a network in a port at that date, agreements were often in place that handed the operation of those networks to the BRB. Such networks are not automatically licence exempt under CMEO article 4(a). The CMEO does not define ‘industrial undertaking’ for the purposes of article 4(o). But the drafting suggests that an industrial undertaking does not include a power generation facility, a harbour or a railway facility under construction, and that an industrial undertaking is not the same as a transport undertaking. We also consider a freight terminal is not an industrial undertaking, as specific terminals are exempted elsewhere in the CMEO. So, for example, a network exempted by CMEO 4(o) must be located within a factory and not just adjacent or connected to it. Extending operations exempt under the CMEO Where an extension is proposed to operations covered by the CMEO, you will need to make sure that the new operations are covered by an appropriate licence or licence exemption. Other exemptions The Secretary of State has granted specific licence exemptions to other operators, including Heathrow Express and Transport for London's subsidiaries. Transport and Works Act Orders Orders under the Transport and Works Act 1992 and Transport and Works (Scotland) Act 2007 cannot authorise the operation of railway assets for the purposes of ORR’s licensing system. So you may still need to apply to ORR for a licence or licence exemption. Common exemption scenarios Networks An operator of a minor network that is a spur off the mainline or functionally separate to the mainline might qualify for a licence exemption. This would include operators of sidings, rail freight terminals and ports. Similarly, heritage, preserved and tourist railways that are physically or operationally separate from the mainline are likely to qualify for a licence exemption. Maintenance trains Much of the track equipment operated by maintenance and renewal contractors are trains for licensing purposes. So operators of this equipment need to be licensed or exempted. Where maintenance or renewal activities are confined within engineering possessions, operators can apply for a licence exemption. If maintenance activities occur outside a possession or you move equipment using the national network, you will need a licence. Stations We would usually consider exemption appropriate for stations where they are used as part of a licence exempt network. Light maintenance depots Most LMD operations will qualify for a licence exemption. In a very limited number of complex cases a licence may be appropriate. Annex A: Statutory Notice template Insert ORR Logo Notice of proposal to grant [a] licence[s] [The Railways Act 1993 (the Act)] [and] [the Railway (Licensing of Railway Undertakings) Regulations 2005 (the Regulations)] [delete as appropriate] Application by: [Company name] (the applicant) Company Registration Number: [Company number] Registered Address: [Company address] Company Officers: [Insert name of company officers] The Office of Rail and Road gives notice in accordance with [regulation 6(9) of the Regulations and/or section 8(4) of the Act] that it proposes to grant the applicant [a] [Enter licences on which we are consulting]. The [licence/s] will authorise the applicant to [description of operations], subject to all legal requirements being fulfilled by the applicant. We propose to grant the [licence/s] on the grounds that the applicant has shown itself to be a fit and proper person. Please send any comments on this proposal by [date] to: [Enter your name] Office of Rail and Road 25 Cabot Square London E14 4QZ [[email protected]] Date of Publication: [Date] Office of Rail and Road Annex B: Director’s statement Senior Manager, Licensing Office of Rail and Road 25 Cabot Square London E14 4QZ [date] Third party liability insurance Director’s statement – insurance arrangements I have considered [name of licence/exemption holder]’s potential self-insured liabilities; which are [£value] for each and every claim, with an aggregate cap at [£value] per annum [add details of any other criteria] and the overall likely insurance costs in light of the company’s business plan. Having undertaken this review I confirm that we have a reasonable expectation of meeting such insurance liabilities for 12 months, from [date] to [date], in respect of all operations under our [show all types of licence/exemptions held]. We will of course continue to act prudently to limit all such potential risks. Yours sincerely [Name] [Managing Director/Company Secretary] Annex C: Insurance checklist When submitting documentation on third party liability insurance arrangements for the Office of Rail and Road (ORR)'s approval, a copy of the following check list should be provided, with each box ticked to confirm that the required documents and information have been provided and the final confirmation signed and dated: - Certificates of insurance signed by the licence holder/applicant's Broker or Lead Insurer in respect of each of the relevant policies. - Each certificate must specify the governing law under which the policy is to be interpreted. - Each certificate must identify all of the Insurers and their proportions. - Each certificate must specify the inception date of cover and the expiry date. - Each certificate must specify the Limit of Indemnity provided and whether it is per occurrence or in the aggregate for the policy or other period. If any limit is in the aggregate for the policy or other period, the certificate must state the provisions for reinstatement. If an additional premium is required, the licence holder must confirm by separate letter its intention to pay such additional premiums when due so as to maintain the minimum limit required by ORR. Each certificate in respect of any excess layer must state the attachment point. - Each certificate must summarise the scope of the policy (including geographical scope and types of services) and each of its exclusions. - Each certificate must confirm that cover is on a ‘costs exclusive’ basis. - Each certificate must confirm that the policyholder provides cover on an ‘occurrence’ basis. - Each certificate must confirm that the policy described provides specifically that 30 days’ notice will be given to ORR by the insurer of any lapse or cancellation of or material change policy. - Each certificate must confirm that the policy covers: ______________________________________________________________________ 22 i.e the policy covers claims that arise from events during the period covered by the policy, irrespective of when they are filed. ☐ the licence holder; ☐ its employees; and ☐ any other person expressly required to be included as an insured. ☐ An explanation as to what steps the licence holder has taken to satisfy itself on the selection of insurers duly authorised and of good repute. ☐ If self-insurance by excess or other means is proposed, provide evidence of the ability of the licence holder to meet its obligations. ☐ Confirm date by which full copies of all policies will be lodged with ORR (if previously unseen by ORR). ☐ Confirmation that any exclusion of damage to property in the care, custody and control of the licence holder shall not apply to accompanied personal luggage. ☐ If ORR’s requirements have not been met an explanation must be provided as to why ORR should approve the alternative proposed. ☐ Directors’ Statements for self-insurance. ☐ Each certificate must confirm that the policy described does not contain a territorial exclusion which means that any provision in any policy is not in accordance with the law of any of the countries in which the licence holder operates or proposes to operate and does not exclude liabilities under the provisions of COTIF and other relevant international law. ☐ The operator shall include as an insured any other party, to the extent that that party is required to be insured or indemnified in any underlying contract or agreement with the operator. ☐ The operator will provide cover for any difference between its contractors’ or sub-contractors’ cover and that required by this general approval. ☐ Supply evidence that insurance cover will apply at all times that operations are undertaken. 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458a8de99de55724037169e125d56ed3a1cd4c1e	Model Licences and SNRPs: 2006 Modification Scheme 1. Railways Act 1993 Model Licences (as of 18 January 2006, with minor amendments of 30 March 2007) (a) Passenger Licence (b) Non-passenger licence (c) Station licence (d) Light Maintenance Depot licence (e) Network licence 2. European Licences under the Railway (Licensing of Railway Undertakings) Regulations 2005 (as of 18 January 2006 with minor amendments of 30 March 2007) (a) European passenger licence (b) European freight licence 3. Statements of National Regulatory Provisions under the Railway (Licensing of Railway Undertakings) Regulations 2005 (as of 18 January 2006 with minor amendments of 30 March 2007) (a) Passenger SNRP (b) Freight SNRP Passenger Train Licence granted to [ ] # Table of contents \| Part I - Scope \| PAGE \| \|----------------\|------\| \| Part II - Interpretation \| 2 \| \| Part III - Conditions \| 4 \| \| Condition 1: Insurance Against Third Party Liability \| 4 \| \| Condition 2: Claims Allocation and Handling \| 5 \| \| Condition 3: Through Tickets and Network Benefits \| 6 \| \| Condition 4: Timetabling \| 7 \| \| Condition 5: Provision of Services for Disabled People \| 9 \| \| Condition 6: Complaints Procedure \| 11 \| \| Condition 7: Liaison with the RPC and LTUC \| 12 \| \| Condition 8: RSSB Membership \| 14 \| \| Condition 9: Railway Group Standards \| 15 \| \| Condition 10: Environmental Matters \| 16 \| \| Condition 11: Payment of Fees \| 17 \| \| Condition 12: Change of Control \| 18 \| \| Part IV - Revocation \| 19 \| Part I - Scope 1. The Office of Rail Regulation ("ORR"), in exercise of the powers conferred by section 8 of the Railways Act 1993 (as amended) ("the Act"), hereby grants to [name of licensee], company registration number [number] ("the licence holder") a licence authorising the licence holder: (a) to be the operator of trains being used on a network for the purpose of carrying passengers by railway; (b) to be the operator of trains being used on a network for a purpose preparatory or incidental to, or consequential on, using a train as mentioned in (a) above; and (c) to be the operator of trains being used on a network for the purpose of assisting other operators of railway assets subject to the Conditions set out in Part III. 2. This licence shall come into force on [date] and shall continue in force unless and until revoked in accordance with Part IV or the Act. [Date] Signed by authority of the Office of Rail Regulation Part II - Interpretation 1. In this licence: “comply” is to be interpreted in accordance with ORR’s most recently published licensing guidance. “control” (a) A person is taken to have control of the licence holder if he exercises, or is able to exercise or is entitled to acquire, direct or indirect control over the licence holder’s affairs, and in particular if he possesses or is entitled to acquire: (i) 30% or more of any share capital or issued share capital of the licence holder or of the voting power in the licence holder; or (ii) such part of any issued share capital of the licence holder as would, if the whole of the income of the licence holder were in fact distributed among the participators (without regard to any rights which he or any other person has as a loan creditor), entitle him to receive 30% or more of the amount so distributed; or (iii) such rights as would, in the event of the winding-up of the licence holder or in any other circumstances, entitle him to receive 30% or more of the assets of the licence holder which would then be available for distribution among the participators. (b) Subsections (4) to (6) of section 416 of the Income and Corporation Taxes Act 1988, and the legislative provisions referred to in those subsections, apply to the interpretation of paragraph (a) in the same way that they apply to the interpretation of subsection (2) of section 416 of that Act. "licensed activities" means things authorised to be done by the licence holder in its capacity as operator of trains pursuant to this licence. “LTUC” means the London Transport Users Committee and any successor to LTUC which performs the same functions. “the RPC” means the Rail Passengers Council and any successor or delegated body which performs the functions of the RPC. “RSSB” means Rail Safety and Standards Board Limited (a company limited by guarantee and registered in England and Wales under number 04655675), and its successors and assigns. 2. Any reference in this licence to a numbered paragraph is a reference to the paragraph bearing that number in the Condition in which the reference occurs. 3. In interpreting this licence, headings shall be disregarded. 4. Where in this licence the licence holder is required to comply with any obligation within a specified time limit, that obligation shall be deemed to continue after that time limit if the licence holder fails to comply with that obligation within that time limit. 5. Where in this licence there is a provision for ORR or the Secretary of State to give consent, such consent may be given subject to conditions. 6. The Interpretation Act 1978 shall apply to this licence as if it were an Act. 7. The provisions of section 149 of the Act shall apply for the purposes of the service of any document pursuant to this licence. 8. Unless the context otherwise requires, terms and expressions defined in the Act and the Railways Act 2005 shall have the same meanings in this licence. Part III - Conditions Condition 1: Insurance Against Third Party Liability 1. The licence holder shall, in respect of licensed activities, maintain insurance (including self-insurance) against third party liabilities on terms approved by ORR (including, but without limitation, with respect to the type, cover and level of insurance and identity of insurer), with any such modification as may be required pursuant to paragraph 3. 2. The licence holder shall, except where ORR may otherwise consent, ensure that every insurance policy maintained pursuant to paragraph 1 shall require 30 days' notice to be given to ORR by the insurer or insurance broker of any lapse or cancellation of or material change to the policy. 3. Where ORR notifies the licence holder that ORR reasonably requires any modification of the insurance approved by ORR pursuant to paragraph 1, the licence holder shall, no later than 60 days (or such longer period as ORR may approve) from the date of the notice, procure that such modification is made. 4. In this Condition: "self-insurance" means the licence holder's financial capacity to meet any liability to a third party in respect of which the licence holder does not otherwise have insurance. Condition 2: Claims Allocation and Handling 1. The licence holder shall, except in so far as ORR may otherwise consent, at all times be a party to and comply with such agreements or arrangements (as amended from time to time) relating to: (a) the handling of claims against operators of railway assets; and (b) the allocation of liabilities among operators of railway assets as may have been approved by ORR. 2. Except with the consent of ORR, the licence holder shall not, in relation to any of the agreements or arrangements described in paragraph 1 (the "relevant claims handling arrangements"), enter into any agreement or arrangement with any other party to the relevant claims handling arrangements: (a) under which the licence holder agrees not to exercise any rights which it may have under any of the relevant claims handling arrangements; or (b) varying the relevant claims handling arrangements other than as provided for under the terms of the relevant claims handling arrangements. Condition 3: Through Tickets and Network Benefits 3. The licence holder shall, except in so far as the Secretary of State may otherwise consent, be a party to and comply with such arrangements (as amended from time to time) relating to: (a) stations at which, and the journeys in respect of which, through tickets, and tickets from any station specified in or under such arrangements to any other such station, shall be sold and honoured; (b) operation of a telephone enquiry bureau relating to railway passenger services; (c) settlement of amounts due to or from the licence holder in respect of tickets within sub-paragraph (a); and (d) conditions of carriage in respect of through tickets as shall have been approved by the Secretary of State. Condition 4: Timetabling 1. The licence holder shall provide Network Rail with such information about licensed activities as may be reasonably necessary for Network Rail to fulfil any obligation on it under the Timetable Condition. 2. The licence holder shall, in relation to the Timetable Condition: (a) participate constructively in any consultation carried out by Network Rail; (b) notify ORR of any material non-compliance by Network Rail with its contractual or licence obligations in relation to the procedures referred to in paragraph 2 of the Timetable Condition which the licence holder considers is wilful or persistent; and (c) use reasonable endeavours to resolve promptly any disputes arising under such procedures so as to prevent or minimise the risk of delay in providing access to the information in accordance with paragraph 2 of the Timetable Condition. 3. The licence holder shall as soon as reasonably practicable and in any case not more than three weeks after receiving access to information under paragraph 2(b) of the Timetable Condition: (a) provide to the persons referred to in sub-paragraphs (i) and (ii) of paragraph 1 of the Timetable Condition; (b) provide to the persons referred to in paragraph 2 of Condition 3 of the network licence of Network Rail; and (c) provide reasonable access to all timetable information providers on request appropriate information to enable each on request to provide passengers or prospective passengers affected by such changes to the national timetable with all relevant information to plan their journeys including, so far as reasonably practicable, the fare or fares and any restrictions applicable to each service affected. 4. In this Condition: “Network Rail” means Network Rail Infrastructure Limited (a company limited by guarantee and registered in England and Wales under number 02904587), and its successors and assigns; “Timetable Condition” means Condition 9 (Timetabling) of the network licence of Network Rail (other than paragraph 4 of that Condition); and “timetable information providers” means travel agents and other persons (including its own employees) or organisations to whom the licence holder normally provides information in respect of the national timetable (in either case a significant part of whose business is to communicate it to users and potential users of that information). Condition 5: Provision of Services for Disabled People 1. The licence holder shall by the date on which this licence comes into force establish and thereafter comply with: (a) a statement of policy; and (b) a detailed body of arrangements, procedures, services and other benefits to be implemented or provided by the licence holder designed to protect the interests of people who are disabled in their use of trains of which the licence holder is the operator pursuant to this licence and to facilitate such use (together “the Disabled People’s Protection Policy”). 2. In establishing the Disabled People’s Protection Policy and in making any alteration to it, the licence holder shall have due regard to the code of practice published by the Secretary of State pursuant to section 71B of the Act. 3. The licence holder shall not establish, or make any material alteration to, the Disabled People’s Protection Policy unless and until: (a) the RPC has been consulted; and (b) the licence holder has submitted the Disabled People’s Protection Policy, or (as the case may be) the proposed alteration, to the Secretary of State and the Secretary of State has approved it. 4. Where the Secretary of State requires the licence holder to carry out a review of the Disabled People’s Protection Policy or any part of it or the manner in which it has been implemented, with a view to determining whether any alteration should be made to it, the licence holder shall promptly carry out a review and shall submit a written report to the Secretary of State setting out the results or conclusions. 5. The licence holder shall: (a) send a copy of the Disabled People’s Protection Policy and of any alteration to it (approved under sub-paragraph 3b) to the Secretary of State and the RPC; (b) in a place of reasonable prominence at each station at which trains of which the licence holder is the operator pursuant to this licence are scheduled to call, display or procure the display of a notice giving the address from which a current copy of the statement may be obtained; and (c) give or send free of charge a current copy of the statement to any person who requests it. 06. Nothing in this Condition shall oblige the licence holder to undertake any action that entails excessive cost taking into account all the circumstances, including the nature and scale of licensed activities. Condition 6: Complaints Procedure 07. The licence holder shall comply with a procedure ("Complaints Procedure") approved by the Secretary of State as at the date on which this licence came into force for handling complaints relating to licensed activities from its customers and potential customers. 08. Subject to paragraph 6, the licence holder shall not make any material alteration to the Complaints Procedure unless and until: (a) the RPC and, where appropriate, LTUC has been consulted; and (b) the licence holder has submitted the proposed alteration to the Secretary of State and the Secretary of State has approved it. 09. The licence holder shall send a copy of the Complaints Procedure and of any material alteration to it (in each case following approval by the Secretary of State where required under paragraph 1 and paragraph 2(b)) to the Secretary of State and the RPC and, where appropriate, LTUC. 10. Where the Secretary of State requires the licence holder to carry out a review of the Complaints Procedure or any part of it, or the manner in which it has been operated, with a view to determining whether any alterations should be made to it, the licence holder shall promptly carry out a review and shall submit a written report to the Secretary of State setting out the results or conclusions. 11. The licence holder shall make such alterations to the Complaints Procedure, or the manner in which it is operated, as the Secretary of State may reasonably require after the Secretary of State has received a report under paragraph 4 and consulted the licence holder. 12. Paragraph 2 does not apply to any alteration made pursuant to paragraph 5. Condition 7: Liaison with the RPC and LTUC 13. Whenever reasonably requested to do so by the RPC and LTUC (as relevant) the licence holder shall meet with the RPC and LTUC (as relevant) to discuss and review such matters as the RPC and LTUC (as relevant) may wish to consider in connection with its functions under Part I of the Act. The licence holder shall not under this Condition be obliged to attend more than two meetings with the RPC and LTUC (as relevant) in any calendar year. 14. The licence holder shall provide the RPC and LTUC (as relevant) with such information as satisfies all the following conditions: (a) the RPC and LTUC (as relevant) reasonably requests the information for the proper performance of its functions under Part I of the Act; (b) no undue burden is imposed on the licence holder in procuring or furnishing the information; and (c) the information would normally be available to the licence holder, unless the RPC and LTUC (as relevant) considers the information essential to enable it to exercise its functions under Part I of the Act. 15. In every calendar year in which the licence holder meets with the RPC and, where appropriate, LTUC pursuant to paragraph 1, the licence holder shall be represented by one or more senior executives of the licence holder in at least one meeting with the RPC and LTUC (separately or jointly). 16. Where the licence holder also holds another licence each number specified as a maximum or minimum in this Condition shall apply jointly to meetings under this Condition and to meetings under any corresponding condition in that other licence. 17. Where: (a) the licence holder and the RPC or LTUC, or both disagree as to the reasonableness of a request made to the licence holder by the RPC or LTUC, or both under paragraph 1 or paragraph 2; (b) either party refers the dispute to the Secretary of State; and (c) the Secretary of State determines that the request is reasonable the licence holder shall promptly thereafter comply with the request. Condition 8: RSSB Membership 18. If the licence holder’s annual turnover has never exceeded £1 million and the licence holder is not a franchise operator, paragraph 2 shall not have effect until the licence holder’s annual turnover exceeds £1 million for the first time. The licence holder shall provide ORR with such information in respect of its annual turnover as ORR may from time to time require. 19. With effect from the date of the coming into force of this licence, the licence holder shall: (a) become and thereafter remain a member of RSSB; (b) comply with its obligations under the Constitution Agreement and the articles of association of RSSB; (c) exercise its rights under the Constitution Agreement and the articles of association of RSSB so as to ensure that RSSB shall act in accordance with the Constitution Agreement; and (d) comply with the Railway Group Standards Code prepared by RSSB. 20. When a licence holder first becomes subject to the obligations in paragraph 2 his rights, obligations and liabilities associated with such membership shall commence on the same day, and the licence holder shall complete the formal and legal documentation associated with such membership within three months of that date. 21. In this condition: “franchise operator” includes an operator of last resort, under section 30 of the Act. Condition 9: Railway Group Standards 22. The licence holder shall comply with the Railway Group Standards applicable to its licensed activities. 23. In this Condition: "Railway Group Standards" means standards authorised pursuant to the Railway Group Standards Code prepared by RSSB. Condition 10: Environmental Matters 01. The licence holder shall establish a written policy designed to protect the environment from the effect of licensed activities, together with operational objectives and management arrangements (together “the environmental arrangements”). 02. The environmental arrangements shall: (a) take due account of any relevant guidance issued by ORR; (b) be effective within six months beginning with the day on which this licence comes into force; and (c) be reviewed by the licence holder periodically, and otherwise as appropriate. 03. Nothing contained in paragraph 1 shall oblige the licence holder to undertake any action that entails excessive cost taking into account all the circumstances, including the nature and scale of operations of the type carried out by the licence holder. 04. The licence holder shall, upon establishment and any material modification of the environmental arrangements, promptly send ORR a current copy of the policy together with a summary of the operational objectives and management arrangements. 05. The licence holder shall act with regard to the policy and operational objectives and use its reasonable endeavours to operate the management arrangements effectively. Condition 11: Payment of Fees 06. In respect of the year beginning on 1 April [current financial year] and in each subsequent year, the licence holder shall render to ORR a payment which is the aggregate of the following amounts: (a) the annual fee applicable to this licence as determined by ORR; and (b) an amount which shall represent a fair proportion as determined by ORR of the amount estimated by ORR (in consultation with the Competition Commission) as having been incurred in the calendar year immediately preceding the 1 April in question by the Competition Commission in connection with references made to it under section 13 of the Act with respect to this licence or any class of licence of which ORR determines that this licence forms part. 07. The payment shall be rendered by the licence holder within such time as ORR may require, being not less than 30 days beginning with the day on which ORR gives notice to the licence holder of its amount. Condition 12: Change of Control 08. The licence holder shall, if any person obtains control of the licence holder, notify ORR as soon as practicable thereafter. Part IV - Revocation 09. ORR may (after having consulted the appropriate franchising authority where the licence holder is a franchise operator) revoke this licence at any time with the agreement of the licence holder. 10. ORR may (after having consulted the appropriate franchising authority where the licence holder is a franchise operator) revoke this licence by not less than three months notice to the licence holder: (a) if a final order has been made, or a provisional order has been confirmed under section 55 of the Act, in respect of any contravention or apprehended contravention by the licence holder of any Condition, and the licence holder does not comply with the order within a period of three months beginning with the day on which ORR gives notice to the licence holder stating that this licence will be revoked pursuant to this term if the licence holder does not so comply; provided that ORR shall not give any such notice before the expiration of the period within which an application could be made under section 57 of the Act in relation to the order in question or before any proceedings relating to any such application are finally determined; (b) if the licence holder has not commenced carrying on licensed activities within one year beginning with the day on which this licence comes into force or if the licence holder ceases to carry on licensed activities for a continuous period of at least one year; (c) if the licence holder is convicted of an offence under section 146 of the Act in making its application for this licence; or (d) if a person obtains control of the licence holder and: (i) ORR has not approved such obtaining of control; (ii) within one month of that obtaining of control coming to the notice of ORR, ORR serves notice on the licence holder stating that ORR proposes to revoke this licence in pursuance of this paragraph unless the person who has obtained control of the licence holder ceases to have control of the licence holder within the period of three months beginning with the day of service of the notice; and (iii) that cessation of control does not take place within that period. 3. ORR may (after having consulted the appropriate franchising authority where the licence holder is a franchise operator) revoke this licence by not less than 10 years notice, such notice not to be given earlier than 25 years after the date this licence takes effect. Non-Passenger Train Licence granted to [ ] # Table of contents \| Part I - Scope \| PAGE \| \|----------------\|------\| \| Part II - Interpretation \| 2 \| \| Part III - Conditions \| 4 \| \| Condition 1: Insurance Against Third Party Liability \| 4 \| \| Condition 2: Claims Allocation and Handling \| 5 \| \| Condition 8: RSSB Membership \| 6 \| \| Condition 9: Railway Group Standards \| 7 \| \| Condition 10: Environmental Matters \| 8 \| \| Condition 11: Payment of Fees \| 9 \| \| Condition 12: Change of Control \| 10 \| \| Part IV - Revocation \| 11 \| Note: Conditions 3 – 7 are not used in this licence. Part I - Scope 1. The Office of Rail Regulation ("ORR"), in exercise of the powers conferred by section 8 of the Railways Act 1993 (as amended) ("the Act"), hereby grants to [name of licensee], company registration number [number] ("the licence holder") a licence authorising the licence holder: (a) to be the operator of trains being used on a network otherwise than for the purpose of carrying passengers by railway; (b) to be the operator of trains being used on a network for a purpose preparatory or incidental to, or consequential on, using a train as mentioned in (a) above; and (c) to be the operator of trains being used on a network for the purpose of assisting other operators of railway assets subject to the Conditions set out in Part III. 2. This licence shall come into force on [date] and shall continue in force unless and until revoked in accordance with Part IV. [Date] Signed by authority of the Office of Rail Regulation Part II - Interpretation 1. In this licence: “comply” is to be interpreted in accordance with ORR’s most recently published licensing guidance. “control” (a) A person is taken to have control of the licence holder if he exercises, or is able to exercise or is entitled to acquire, direct or indirect control over the licence holder’s affairs, and in particular if he possesses or is entitled to acquire: (i) 30% or more of any share capital or issued share capital of the licence holder or of the voting power in the licence holder; or (ii) such part of any issued share capital of the licence holder as would, if the whole of the income of the licence holder were in fact distributed among the participators (without regard to any rights which he or any other person has as a loan creditor), entitle him to receive 30% or more of the amount so distributed; or (iii) such rights as would, in the event of the winding-up of the licence holder or in any other circumstances, entitle him to receive 30% or more of the assets of the licence holder which would then be available for distribution among the participators. (b) Subsections (4) to (6) of section 416 of the Income and Corporation Taxes Act 1988, and the legislative provisions referred to in those subsections, apply to the interpretation of paragraph (a) in the same way that they apply to the interpretation of subsection (2) of section 416 of that Act. "licensed activities" means things authorised to be done by the licence holder in its capacity as operator of trains pursuant to this licence. "RSSB" means Rail Safety and Standards Board Limited (a company limited by guarantee and registered in England and Wales under number 04655675), and its successors and assigns. 2. Any reference in this licence to a numbered paragraph is a reference to the paragraph bearing that number in the Condition in which the reference occurs. 3. In interpreting this licence, headings shall be disregarded. 4. Where in this licence the licence holder is required to comply with any obligation within a specified time limit, that obligation shall be deemed to continue after that time limit if the licence holder fails to comply with that obligation within that time limit. 5. Where in this licence there is a provision for ORR or the Secretary of State to give consent, such consent may be given subject to conditions. 6. The Interpretation Act 1978 shall apply to this licence as if it were an Act. 7. The provisions of section 149 of the Act shall apply for the purposes of the service of any document pursuant to this licence. 8. Unless the context otherwise requires, terms and expressions defined in the Act and the Railways Act 2005 shall have the same meanings in this licence. Part III - Conditions Condition 1: Insurance Against Third Party Liability 1. The licence holder shall, in respect of licensed activities, maintain insurance (including self-insurance) against third party liabilities on terms approved by ORR (including, but without limitation, with respect to the type, cover and level of insurance and identity of insurer), with any such modification as may be required pursuant to paragraph 3. 2. The licence holder shall, except where ORR may otherwise consent, ensure that every insurance policy maintained pursuant to paragraph 1 shall require 30 days' notice to be given to ORR by the insurer or insurance broker of any lapse or cancellation of or material change to the policy. 3. Where ORR notifies the licence holder that ORR reasonably requires any modification of the insurance approved by ORR pursuant to paragraph 1, the licence holder shall, no later than 60 days (or such longer period as ORR may approve) from the date of the notice, procure that such modification is made. 4. In this Condition: "self-insurance" means the licence holder's financial capacity to meet any liability to a third party in respect of which the licence holder does not otherwise have insurance. Condition 2: Claims Allocation and Handling 1. The licence holder shall, except in so far as ORR may otherwise consent, at all times be a party to and comply with such agreements or arrangements (as amended from time to time) relating to: (a) the handling of claims against operators of railway assets; and (b) the allocation of liabilities among operators of railway assets as may have been approved by ORR. 2. Except with the consent of ORR, the licence holder shall not, in relation to any of the agreements or arrangements described in paragraph 1 (the "relevant claims handling arrangements"), enter into any agreement or arrangement with any other party to the relevant claims handling arrangements: (a) under which the licence holder agrees not to exercise any rights which it may have under any of the relevant claims handling arrangements; or (b) varying the relevant claims handling arrangements other than as provided for under the terms of the relevant claims handling arrangements. Condition 8: RSSB Membership 1. If the licence holder’s annual turnover has never exceeded £1 million and the licence holder is not a franchise operator, paragraph 2 shall not have effect until the licence holder’s annual turnover exceeds £1 million for the first time. The licence holder shall provide ORR with such information in respect of its annual turnover as ORR may from time to time require. 2. With effect from the date of the coming into force of this licence, the licence holder shall: (a) become and thereafter remain a member of RSSB; (b) comply with its obligations under the Constitution Agreement and the articles of association of RSSB; (c) exercise its rights under the Constitution Agreement and the articles of association of RSSB so as to ensure that RSSB shall act in accordance with the Constitution Agreement; and (d) comply with the Railway Group Standards Code prepared by RSSB. 3. When a licence holder first becomes subject to the obligations in paragraph 2 his rights, obligations and liabilities associated with such membership shall commence on the same day, and the licence holder shall complete the formal and legal documentation associated with such membership within three months of that date. 4. In this condition: “franchise operator” includes an operator of last resort, under section 30 of the Act. Condition 9: Railway Group Standards 5. The licence holder shall comply with the Railway Group Standards applicable to its licensed activities. 6. In this Condition: "Railway Group Standards" means standards authorised pursuant to the Railway Group Standards Code prepared by RSSB. Condition 10: Environmental Matters 01. The licence holder shall establish a written policy designed to protect the environment from the effect of licensed activities, together with operational objectives and management arrangements (together “the environmental arrangements”). 02. The environmental arrangements shall: (a) take due account of any relevant guidance issued by ORR; (b) be effective within six months beginning with the day on which this licence comes into force; and (c) be reviewed by the licence holder periodically, and otherwise as appropriate. 03. Nothing contained in paragraph 1 shall oblige the licence holder to undertake any action that entails excessive cost taking into account all the circumstances, including the nature and scale of operations of the type carried out by the licence holder. 04. The licence holder shall, upon establishment and any material modification of the environmental arrangements, promptly send ORR a current copy of the policy together with a summary of the operational objectives and management arrangements. 05. The licence holder shall act with regard to the policy and operational objectives and use its reasonable endeavours to operate the management arrangements effectively. Condition 11: Payment of Fees 06. In respect of the year beginning on 1 April [current financial year] and in each subsequent year, the licence holder shall render to ORR a payment which is the aggregate of the following amounts: (a) the annual fee applicable to this licence, as determined by ORR; and (b) an amount which shall represent a fair proportion as determined by ORR of the amount estimated by ORR (in consultation with the Competition Commission) as having been incurred in the calendar year immediately preceding the 1 April in question by the Competition Commission in connection with references made to it under section 13 of the Act with respect to this licence or any class of licence of which ORR determines that this licence forms part. 07. The payment shall be rendered by the licence holder within such time as ORR may require, being not less than 30 days beginning with the day on which ORR gives notice to the licence holder of its amount. Condition 12: Change of Control 08. The licence holder shall, if any person obtains control of the licence holder, notify ORR as soon as practicable thereafter. Part IV - Revocation 09. ORR may (after having consulted the appropriate franchising authority where the licence holder is a franchise operator) revoke this licence at any time if agreed in writing by the licence holder. 10. ORR may (after having consulted the appropriate franchising authority where the licence holder is a franchise operator) revoke this licence by not less than three months notice to the licence holder: (a) if a final order has been made, or a provisional order has been confirmed under section 55 of the Act, in respect of any contravention or apprehended contravention by the licence holder of any Condition, and the licence holder does not comply with the order within a period of three months beginning with the day on which ORR gives notice to the licence holder stating that this licence will be revoked pursuant to this term if the licence holder does not so comply; provided that ORR shall not give any such notice before the expiration of the period within which an application could be made under section 57 of the Act in relation to the order in question or before any proceedings relating to any such application are finally determined; (b) if the licence holder has not commenced carrying on licensed activities within one year beginning with the day on which this licence comes into force or if the licence holder ceases to carry on licensed activities for a continuous period of at least one year; (c) if the licence holder is convicted of an offence under section 146 of the Act in making its application for this licence; or (d) if a person obtains control of the licence holder and: (i) ORR has not approved such obtaining of control; (ii) within one month of that obtaining of control coming to the notice of ORR, ORR serves notice on the licence holder stating that ORR proposes to revoke this licence in pursuance of this paragraph unless the person who has obtained control of the licence holder ceases to have control of the licence holder within the period of three months beginning with the day of service of the notice; and (iii) that cessation of control does not take place within that period. 3. ORR may (after having consulted the appropriate franchising authority where the licence holder is a franchise operator) revoke this licence by not less than 10 years notice, such notice not to be given earlier than 25 years after the date this licence takes effect. Station Licence granted to [ ] # Table of contents \| Part I - Scope \| PAGE \| \|----------------\|------\| \| Part II - Interpretation \| 2 \| \| Part III - Conditions \| 4 \| \| Condition 1: Insurance against Third Party Liability \| 4 \| \| Condition 2: Claims Allocation and Handling \| 5 \| \| Condition 5: Provision of Services for Disabled People \| 6 \| \| Condition 6: Complaints Procedure \| 8 \| \| Condition 7: Liaison with the RPC and LTUC \| 9 \| \| Condition 9: Railway Group Standards \| 11 \| \| Condition 10: Environmental Matters \| 12 \| \| Condition 11: Payment of Fees \| 13 \| \| Condition 12: Change of Control \| 14 \| \| Condition 13: Non-Discrimination \| 15 \| \| Condition 14: Emergency Access \| 16 \| \| Condition 15: Co-operation with Transport for London \| 17 \| \| Condition 16: Changes to the Schedule \| 18 \| \| Part IV - Revocation \| 19 \| \| Schedule - List of Stations \| 21 \| Note: Conditions 3, 4, and 8 are not used in this licence. Part I - Scope 1. The Office of Rail Regulation ("ORR"), in exercise of the powers conferred by section 8 of the Railways Act 1993 (as amended) ("the Act"), hereby grants to [name of licensee], company registration number [number] ("the licence holder") a licence authorising the licence holder: (a) to be the operator of the stations listed in the Schedule subject to the Conditions set out in Part III. 2. This licence shall come into force on [date] and shall continue in force unless and until revoked in accordance with Part IV. [Date] Signed by authority of the Office of Rail Regulation Part II - Interpretation 1. In this licence: “comply” is to be interpreted in accordance with ORR’s most recently published licensing guidance. "control" (a) A person is taken to have control of the licence holder if he exercises, or is able to exercise or is entitled to acquire, direct or indirect control over the licence holder’s affairs, and in particular if he possesses or is entitled to acquire: (i) 30% or more of any share capital or issued share capital of the licence holder or of the voting power in the licence holder; or (ii) such part of any issued share capital of the licence holder as would, if the whole of the income of the licence holder were in fact distributed among the participators (without regard to any rights which he or any other person has as a loan creditor), entitle him to receive 30% or more of the amount so distributed; or (iii) such rights as would, in the event of the winding-up of the licence holder or in any other circumstances, entitle him to receive 30% or more of the assets of the licence holder which would then be available for distribution among the participators. (b) Subsections (4) to (6) of section 416 of the Income and Corporation Taxes Act 1988, and the legislative provisions referred to in those subsections, apply to the interpretation of paragraph (a) in the same way that they apply to the interpretation of subsection (2) of section 416 of that Act; "licensed activities" means things authorised to be done by the licence holder in its capacity as operator of stations pursuant to this licence; and “LTUC” means the London Transport Users Committee and any successor to LTUC which performs the same functions. “the RPC” means the Rail Passengers Council and any successor or delegated body which performs the functions of the RPC. “RSSB” means Rail Safety and Standards Board Limited (a company limited by guarantee and registered in England and Wales under number 04655675), and its successors and assigns. "station" includes light maintenance depot insofar as any station is also a light maintenance depot. 2. Any reference in this licence to a numbered paragraph is a reference to the paragraph bearing that number in the Condition in which the reference occurs. 3. In interpreting this licence, headings shall be disregarded. 4. Where in this licence the licence holder is required to comply with any obligation within a specified time limit, that obligation shall be deemed to continue after that time limit if the licence holder fails to comply with that obligation within that time limit. 5. Where in this licence there is a provision for ORR or the Secretary of State to give consent, such consent may be given subject to conditions. 6. The Interpretation Act 1978 shall apply to this licence as if it were an Act. 7. The provisions of section 149 of the Act shall apply for the purposes of the service of any document pursuant to this licence. 8. Unless the context otherwise requires, terms and expressions defined in the Act and the Railways Act 2005 shall have the same meanings in this licence. Part III - Conditions Condition 1: Insurance against Third Party Liability 1. The licence holder shall, in respect of licensed activities, maintain insurance (including self-insurance) against third party liabilities on terms approved by ORR (including, but without limitation, with respect to the type, cover and level of insurance and identity of insurer), with any such modification as may be required pursuant to paragraph 3. 2. The licence holder shall, except where ORR may otherwise consent, ensure that every insurance policy maintained pursuant to paragraph 1 shall require 30 days' notice to be given to ORR by the insurer or insurance broker of any lapse or cancellation of or material change to the policy. 3. Where ORR notifies the licence holder that ORR reasonably requires any modification of the insurance approved by ORR pursuant to paragraph 1, the licence holder shall, no later than 60 days (or such longer period as ORR may approve) from the date of the notice, procure that such modification is made. 4. In this Condition: "self insurance" means the licence holder's financial capacity to meet any liability to a third party in respect of which the licence holder does not otherwise have insurance. Condition 2: Claims Allocation and Handling 1. The licence holder shall, except in so far as ORR may otherwise consent, at all times be a party to and comply with such agreements or arrangements (as amended from time to time) relating to: (a) the handling of claims against operators of railway assets; and (b) the allocation of liabilities among operators of railway assets as may have been approved by ORR. 2. Except with the consent of ORR, the licence holder shall not, in relation to any of the agreements or arrangements described in paragraph 1 (the "relevant claims handling arrangements"), enter into any agreement or arrangement with any other party to the relevant claims handling arrangements: (a) under which the licence holder agrees not to exercise any rights which it may have under any of the relevant claims handling arrangements; or (b) varying the relevant claims handling arrangements other than as provided for under the terms of the relevant claims handling arrangements. Condition 5: Provision of Services for Disabled People 3. The licence holder shall by the date on which this licence comes into force establish and thereafter comply with: (a) a statement of policy; and (b) a detailed body of arrangements, procedures, services and other benefits to be implemented or provided by the licence holder designed to protect the interests of people who are disabled in their use of stations of which the licence holder is the operator pursuant to this licence and to facilitate such use (together "the Disabled People's Protection Policy"). 4. In establishing the Disabled People's Protection Policy and in making any alteration to it, the licence holder shall have due regard to the code of practice published by the Secretary of State pursuant to section 71B of the Act. 5. The licence holder shall not establish, or make any material alteration to, the Disabled People’s Protection Policy unless and until: (a) the RPC has been consulted; and (b) the licence holder has submitted the Disabled People's Protection Policy, or (as the case may be) the proposed alteration, to the Secretary of State and the Secretary of State has approved it. 6. Where the Secretary of State requires the licence holder to carry out a review of the Disabled People's Protection Policy or any part of it or the manner in which it has been implemented, with a view to determining whether any alteration should be made to it, the licence holder shall promptly carry out a review and shall submit a written report to the Secretary of State setting out the results or conclusions. 7. The licence holder shall: (a) send a copy of the Disabled People’s Protection Policy and of any alteration to it (approved under sub-paragraph 3b) to the Secretary of State and the RPC; (b) in a place of reasonable prominence at each station of which the licence holder is the operator pursuant to this licence, display a notice giving the address from which a current copy of the statement may be obtained; and (c) give or send free of charge a current copy of the statement to any person who requests it. 06. Nothing in this Condition shall oblige the licence holder to undertake any action that entails excessive cost taking into account all the circumstances, including the nature and scale of licensed activities. Condition 6: Complaints Procedure 07. The licence holder shall comply with a procedure ("Complaints Procedure") approved by the Secretary of State as at the date on which this licence came into force for handling complaints relating to licensed activities from its customers and potential customers. 08. Subject to paragraph 6, the licence holder shall not make any material alteration to the Complaints Procedure unless and until: (a) the RPC and, where appropriate, LTUC has been consulted; and (b) the licence holder has submitted the proposed alteration to the Secretary of State and the Secretary of State has approved it. 09. The licence holder shall send a copy of the Complaints Procedure and of any material alteration to it (in each case following approval by the Secretary of State where required under paragraph 1 and sub-paragraph 2(b)) to the Secretary of State and the RPC and, where appropriate, LTUC. 10. Where the Secretary of State requires the licence holder to carry out a review of the Complaints Procedure or any part of it, or manner in which it has been operated, with a view to determining whether any alterations should be made to it, the licence holder shall promptly carry out a review and shall submit a written report to the Secretary of State setting out the results or conclusions. 11. The licence holder shall make such alterations to the Complaints Procedure, or the manner in which it is operated, as the Secretary of State may reasonably require after the Secretary of State has received a report under paragraph 4 and consulted the licence holder. 12. Paragraph 2 does not apply to any alteration made pursuant to paragraph 5. Condition 7: Liaison with the RPC and LTUC 13. Whenever reasonably requested to do so by the RPC and LTUC (as relevant) the licence holder shall meet with the RPC and LTUC (as relevant) to discuss and review such matters as the RPC and LTUC (as relevant) may wish to consider in connection with its functions under Part I of the Act. The licence holder shall not under this Condition be obliged to attend more than two meetings with the RPC and LTUC (as relevant) in any calendar year. 14. The licence holder shall provide the RPC and LTUC (as relevant) with such information as satisfies all the following conditions: (a) the RPC and LTUC (as relevant) reasonably requests the information for the proper performance of its functions under Part I of the Act; (b) no undue burden is imposed on the licence holder in procuring or furnishing the information; and (c) the information would normally be available to the licence holder, unless the RPC and LTUC (as relevant) considers the information essential to enable it to exercise its functions under Part I of the Act. 15. In every calendar year in which the licence holder meets with the RPC and, where appropriate, LTUC pursuant to paragraph 1, the licence holder shall be represented by one or more senior executives of the licence holder in at least one meeting with the RPC and LTUC (separately or jointly). 16. Where the licence holder holds another licence each number specified as a maximum or minimum in this Condition shall apply jointly to meetings under this Condition and to meetings under any corresponding condition in that other licence. 17. Where: (a) the licence holder and the RPC or LTUC, or both disagree as to the reasonableness of a request made to the licence holder by the RPC or LTUC, or both under paragraph 1 or paragraph 2; (b) either party refers the dispute to the Secretary of State; and (c) the Secretary of State determines that the request is reasonable the licence holder shall promptly thereafter comply with the request. Condition 9: Railway Group Standards 18. The licence holder shall comply with the Railway Group Standards applicable to its licensed activities. 19. In this Condition: "Railway Group Standards" means standards authorised pursuant to the Railway Group Standards Code prepared by RSSB. Condition 10: Environmental Matters 01. The licence holder shall establish a written policy designed to protect the environment from the effect of licensed activities, together with operational objectives and management arrangements (together “the environmental arrangements”). 02. The environmental arrangements shall: (a) take due account of any relevant guidance issued by ORR; (b) be effective within six months beginning with the day on which this licence comes into force; and (c) be reviewed by the licence holder periodically, and otherwise as appropriate. 03. Nothing contained in paragraph 1 shall oblige the licence holder to undertake any action that entails excessive cost taking into account all the circumstances, including the nature and scale of operations of the type carried out by the licence holder. 04. The licence holder shall, upon establishment and any material modification of the environmental arrangements, promptly send ORR a current copy of the policy together with a summary of the operational objectives and management arrangements. 05. The licence holder shall act with regard to the policy and operational objectives and use its reasonable endeavours to operate the management arrangements effectively. Condition 11: Payment of Fees 06. In respect of the year beginning on 1 April [current financial year] and in each subsequent year, the licence holder shall render to ORR a payment which is the aggregate of the following amounts: (a) the annual fee applicable to this licence, as determined by ORR; and (b) an amount which shall represent a fair proportion as determined by ORR of the amount estimated by ORR (in consultation with the Competition Commission) as having been incurred in the calendar year immediately preceding the 1 April in question by the Competition Commission in connection with references made to it under section 13 of the Act with respect to this licence or any class of licence of which ORR determines that this licence forms part. 07. The payment shall be rendered by the licence holder within such time as ORR may require, being not less than 30 days beginning with the day on which ORR gives notice to the licence holder of its amount. Condition 12: Change of Control 08. The licence holder shall, if any person obtains control of the licence holder, notify ORR as soon as practicable thereafter. Condition 13: Non-Discrimination 09. Except in so far as ORR may otherwise consent, the licence holder shall not in its licensed activities, or in carrying out any other function contemplated by this licence, unduly discriminate between particular persons or between any classes or descriptions of person. Condition 14: Emergency Access 10. During any emergency affecting the railway, the licence holder shall, to the extent that it is legally entitled to do so, grant to any person requesting it such permission to use any station of which the licence holder is the operator pursuant to this licence as is necessary or expedient to alleviate the effects of the emergency. Condition 15: Co-operation with Transport for London 11. The licence holder shall co-operate with Transport for London ("TfL") for the purpose of: (a) ensuring the efficient operation of railway services and the provision of railway facilities; and (b) co-ordinating, where possible, anticipated investment projects to the extent that such matters affect or may affect both the licence holder's and TfL's provision of railway services. Condition 16: Changes to the Schedule 12. If the licence holder serves notice on ORR requesting that it be authorised to operate an additional station, that station shall be deemed to be added to the Schedule on the date ORR receives the notice. 13. If, within 30 days of receiving the notice referred to in paragraph 1, ORR serves notice on the licence holder that it objects to such authorisation, that station shall be deemed to be removed from the Schedule on the date the licence holder receives the notice. 14. If the licence holder ceases to be the operator of any station listed in the Schedule, the licence holder shall, within 30 days, serve notice on ORR of such cessation. That station shall be deemed to be removed from the Schedule on the date ORR receives the notice. Part IV - Revocation 15. ORR may (after having consulted the appropriate franchising authority where the licence holder is a franchise operator) revoke this licence at any time if agreed in writing by the licence holder. 16. ORR may (after having consulted the appropriate franchising authority where the licence holder is a franchise operator) revoke this licence by not less than three months notice to the licence holder: (a) if a final order has been made, or a provisional order has been confirmed under section 55 of the Act, in respect of any contravention or apprehended contravention by the licence holder of any Condition, and the licence holder does not comply with the order within a period of three months beginning with the day on which ORR gives notice to the licence holder stating that this licence will be revoked pursuant to this term if the licence holder does not so comply; provided that ORR shall not give any such notice before the expiration of the period within which an application could be made under section 57 of the Act in relation to the order in question or before any proceedings relating to any such application are finally determined; (b) if the licence holder has not commenced carrying on licensed activities within one year beginning with the day on which this licence comes into force or if the licence holder ceases to carry on licensed activities for a continuous period of at least one year; (c) if the licence holder is convicted of an offence under section 146 of the Act in making its application for this licence; or (d) if a person obtains control of the licence holder and: (i) ORR has not approved such obtaining of control; (ii) within one month of that obtaining of control coming to the notice of ORR, ORR serves notice on the licence holder stating that ORR proposes to revoke this licence in pursuance of this paragraph unless the person who has obtained control of the licence holder ceases to have control of the licence holder within the period of three months beginning with the day of service of the notice; and (iii) that cessation of control does not take place within that period. 3. ORR may (after having consulted the appropriate franchising authority where the licence holder is a franchise operator) revoke this licence by not less than 10 years notice, such notice not to be given earlier than 25 years after the date this licence takes effect. Schedule - List of Stations [Stations to be listed individually] Light Maintenance Depot Licence granted to [ ] # Table of contents \| Part I - Scope \| PAGE \| \|----------------\|------\| \| Part II - Interpretation \| 2 \| \| Part III - Conditions \| 4 \| \| Condition 1: Insurance against Third Party Liability \| 4 \| \| Condition 2: Claims Allocation and Handling \| 5 \| \| Condition 9: Railway Group Standards \| 6 \| \| Condition 10: Environmental Matters \| 7 \| \| Condition 11: Payment of Fees \| 8 \| \| Condition 12: Change of Control \| 9 \| \| Condition 13: Non-Discrimination \| 10 \| \| Condition 14: Emergency Access \| 11 \| \| Condition 16: Changes to the Schedule \| 12 \| \| Part IV - Revocation \| 13 \| \| Schedule - List of Light Maintenance Depots \| 15 \| Note: Conditions 3 – 8 and 15 are not used in this licence. Part I - Scope 1. The Office of Rail Regulation ("ORR"), in exercise of the powers conferred by section 8 of the Railways Act 1993 (as amended) ("the Act"), hereby grants to [name of licensee], company registration number [number] ("the licence holder"), a licence authorising the licence holder: (a) to be the operator of the light maintenance depots listed in the Schedule; and (b) to be the operator of any train being used on a network for a purpose preparatory or incidental to, or consequential on, the provision of light maintenance services at any light maintenance depot listed in the Schedule subject to the Conditions set out in Part III. 2. This licence shall come into force on [date] and shall continue in force unless and until revoked in accordance with Part IV or the Act. [Date] Signed by authority of the Office of Rail Regulation Part II - Interpretation 1. In this licence: “comply” is to be interpreted in accordance with ORR’s most recently published licensing guidance. “control” (a) A person is taken to have control of the licence holder if he exercises, or is able to exercise or is entitled to acquire, direct or indirect control over the licence holder’s affairs, and in particular if he possesses or is entitled to acquire: (i) 30% or more of any share capital or issued share capital of the licence holder or of the voting power in the licence holder; or (ii) such part of any issued share capital of the licence holder as would, if the whole of the income of the licence holder were in fact distributed among the participators (without regard to any rights which he or any other person has as a loan creditor), entitle him to receive 30% or more of the amount so distributed; or (iii) such rights as would, in the event of the winding-up of the licence holder or in any other circumstances, entitle him to receive 30% or more of the assets of the licence holder which would then be available for distribution among the participators. (b) Subsections (4) to (6) of section 416 of the Income and Corporation Taxes Act 1988, and the legislative provisions referred to in those subsections, apply to the interpretation of paragraph (a) in the same way that they apply to the interpretation of subsection (2) of section 416 of that Act. "licensed activities" means things authorised to be done by the licence holder in its capacity as operator of light maintenance depots or trains pursuant to this licence. "light maintenance depot" includes network insofar as any light maintenance depot is also a network. “RSSB” means Rail Safety and Standards Board Limited (a company limited by guarantee and registered in England and Wales under number 04655675), and its successors and assigns. 2. Any reference in this licence to a numbered paragraph is a reference to the paragraph bearing that number in the Condition in which the reference occurs. 3. In interpreting this licence, headings shall be disregarded. 4. Where in this licence the licence holder is required to comply with any obligation within a specified time limit, that obligation shall be deemed to continue after that time limit if the licence holder fails to comply with that obligation within that time limit. 5. Where in this licence there is a provision for ORR or the Secretary of State to give consent, such consent may be given subject to conditions. 6. The Interpretation Act 1978 shall apply to this licence as if it were an Act. 7. The provisions of section 149 of the Act shall apply for the purposes of the service of any document pursuant to this licence. 8. Unless the context otherwise requires, terms and expressions defined in the Act and the Railways Act 2005 shall have the same meaning in this licence. Part III - Conditions Condition 1: Insurance against Third Party Liability 1. The licence holder shall, in respect of licensed activities, maintain insurance (including self-insurance) against third party liabilities on terms approved by ORR (including, but without limitation, with respect to the type, cover and level of insurance and identity of insurer), with any such modification as may be required pursuant to paragraph 3. 2. The licence holder shall, except where ORR may otherwise consent, ensure that every insurance policy maintained pursuant to paragraph 1 shall require 30 days’ notice to be given to ORR by the insurer or insurance broker of any lapse or cancellation of or material change to the policy. 3. Where ORR notifies the licence holder that ORR reasonably requires any modification of the insurance approved by ORR pursuant to paragraph 1, the licence holder shall, no later than 60 days (or such longer period as ORR may approve) from the date of the notice, procure that such modification is made. 4. In this Condition: "self-insurance" means the licence holder's financial capacity to meet any liability to a third party in respect of which the licence holder does not otherwise have insurance. Condition 2: Claims Allocation and Handling 1. The licence holder shall, except in so far as ORR may otherwise consent, at all times be a party to and comply with such agreements or arrangements (as amended from time to time) relating to: (a) the handling of claims against operators of railway assets; and (b) the allocation of liabilities among operators of railway assets as may have been approved by ORR. 2. Except with the consent of ORR, the licence holder shall not, in relation to any of the agreements or arrangements described in paragraph 1 (the "relevant claims handling arrangements"), enter into any agreement or arrangement with any other party to the relevant claims handling arrangement: (a) under which the licence holder agrees not to exercise any rights which it may have under any of the relevant claims handling arrangements; or (b) varying the relevant claims handling arrangements other than as provided for under the terms of the relevant claims handling arrangements. Condition 9: Railway Group Standards 3. The licence holder shall comply with the Railway Group Standards applicable to its licensed activities. 4. In this Condition: "Railway Group Standards" means standards authorised pursuant to the Railway Group Standards Code prepared by RSSB. Condition 10: Environmental Matters 01. The licence holder shall establish a written policy designed to protect the environment from the effect of licensed activities, together with operational objectives and management arrangements (together “the environmental arrangements”). 02. The environmental arrangements shall: (a) take due account of any relevant guidance issued by ORR; (b) be effective within six months beginning with the day on which this licence comes into force; and (c) be reviewed by the licence holder periodically, and otherwise as appropriate. 03. Nothing contained in paragraph 1 shall oblige the licence holder to undertake any action that entails excessive cost taking into account all the circumstances, including the nature and scale of operations of the type carried out by the licence holder. 04. The licence holder shall, upon establishment and any material modification of the environmental arrangements, promptly send ORR a current copy of the policy together with a summary of the operational objectives and management arrangements. 05. The licence holder shall act with regard to the policy and operational objectives and use its reasonable endeavours to operate the management arrangements effectively. Condition 11: Payment of Fees 06. In respect of the year beginning on 1 April [current financial year] and in each subsequent year, the licence holder shall render to ORR a payment which is the aggregate of the following amounts: (a) the annual fee applicable to this licence as determined by ORR; and (b) an amount which shall represent a fair proportion as determined by ORR of the amount estimated by ORR (in consultation with the Competition Commission) as having been incurred in the calendar year immediately preceding the 1 April in question by the Competition Commission in connection with references made to it under section 13 of the Act with respect to this licence or any class of licence of which ORR determines that this licence forms part. 07. The payment shall be rendered by the licence holder within such time as ORR may require, being not less than 30 days beginning with the day on which ORR gives notice to the licence holder of its amount. Condition 12: Change of Control 08. The licence holder shall, if any person obtains control of the licence holder, notify ORR as soon as practicable thereafter. Condition 13: Non-Discrimination 09. Except in so far as ORR may otherwise consent, the licence holder shall not in its licensed activities, or in carrying out any other function contemplated by this licence, unduly discriminate between particular persons or between any classes or descriptions of person. Condition 14: Emergency Access 10. During any emergency affecting the railway, the licence holder shall, to the extent that it is legally entitled to do so, grant to any person requesting it such permission to use any light maintenance depot of which the licence holder is the operator pursuant to this licence as is necessary or expedient to alleviate the effects of the emergency. Condition 16: Changes to the Schedule 11. If the licence holder serves notice on ORR requesting that it be authorised to operate an additional light maintenance depot, that light maintenance depot shall be deemed to be added to the Schedule on the date ORR receives the notice. 12. If, within 30 days of receiving the notice referred to in paragraph 1, ORR serves notice on the licence holder that it objects to such authorisation, that light maintenance depot shall be deemed to be removed from the Schedule on the date the licence holder receives the notice. 13. If the licence holder ceases to be the operator of any light maintenance depot listed in the Schedule, the licence holder shall, within 30 days, serve notice on ORR of such cessation. That light maintenance depot shall be deemed to be removed from the Schedule on the date ORR receives the notice. Part IV - Revocation 14. ORR may (after having consulted the appropriate franchising authority where the licence holder is a franchise operator) revoke this licence at any time with the agreement of the licence holder. 15. ORR may (after having consulted the appropriate franchising authority where the licence holder is a franchise operator) revoke this licence by not less than three months notice to the licence holder: (a) if a final order has been made, or a provisional order has been confirmed under section 55 of the Act, in respect of any contravention or apprehended contravention by the licence holder of any Condition, and the licence holder does not comply with the order within a period of three months beginning with the day on which ORR gives notice to the licence holder stating that this licence will be revoked pursuant to this term if the licence holder does not so comply; provided that ORR shall not give any such notice before the expiration of the period within which an application could be made under section 57 of the Act in relation to the order in question or before any proceedings relating to any such application are finally determined; (b) if the licence holder has not commenced carrying on licensed activities within one year beginning with the day on which this licence comes into force or if the licence holder ceases to carry on licensed activities for a continuous period of at least one year; (c) if the licence holder is convicted of an offence under section 146 of the Act in making its application for this licence; or (d) if a person obtains control of the licence holder and: (i) ORR has not approved such obtaining of control; (ii) within one month of that obtaining of control coming to the notice of ORR, ORR serves notice on the licence holder stating that ORR proposes to revoke this licence in pursuance of this paragraph unless the person who has obtained control of the licence holder ceases to have control of the licence holder within the period of three months beginning with the day of service of the notice; and (iii) that cessation of control does not take place within that period. 3. ORR may (after having consulted the relevant franchising authority where the licence holder is a franchise operator) revoke this licence by not less than 10 years notice, such notice not to be given earlier than 25 years after the date this licence takes effect. Schedule - List of Light Maintenance Depots [Depots to be listed individually] Network Licence granted to [ ] # Table of contents \| Part I - Scope \| PAGE \| \|----------------\|------\| \| Part II - Interpretation \| 2 \| \| Part III - Conditions \| 4 \| \| Condition 1: Insurance Against Third Party Liability \| 4 \| \| Condition 2: Claims Allocation and Handling \| 5 \| \| Condition 9: Railway Group Standards \| 6 \| \| Condition 10: Environmental Matters \| 7 \| \| Condition 11: Payment of Fees \| 8 \| \| Condition 12: Change of Control \| 9 \| \| Condition 13: Non-Discrimination \| 10 \| \| Condition 14: Emergency Access \| 11 \| \| Part IV - Revocation \| 12 \| \| Schedule - List of Networks \| 14 \| Note: Conditions 3 – 8 are not used in this licence. Part I - Scope 1. The Office of Rail Regulation ("ORR"), in exercise of the powers conferred by section 8 of the Railways Act 1993 (as amended) ("the Act"), hereby grants to [name of licensee], company registration number [number], a licence authorising the licence holder: (a) to be the operator of a network of the kinds specified in the Schedule; (b) to be the operator of a train being used on any such network for any purpose comprised in the operation of that network; and (c) to be the operator of a train being used on any such network for a purpose preparatory or incidental to, or consequential on, using a train as mentioned in paragraph (b) above subject to the Conditions set out in Part III. 2. This licence shall come into force on [date] and shall continue in force unless and until revoked in accordance with Part IV. [Date] Signed by authority of the Office of Rail Regulation Part II - Interpretation 1. In this licence: “comply” is to be interpreted in accordance with ORR’s most recently published licensing guidance. "control" (a) A person is taken to have control of the licence holder if he exercises, or is able to exercise or is entitled to acquire, direct or indirect control over the licence holder’s affairs, and in particular if he possesses or is entitled to acquire: (i) 30% or more of any share capital or issued share capital of the licence holder or of the voting power in the licence holder; or (ii) such part of any issued share capital of the licence holder as would, if the whole of the income of the licence holder were in fact distributed among the participators (without regard to any rights which he or any other person has as a loan creditor), entitle him to receive 30% or more of the amount so distributed; or (iii) such rights as would, in the event of the winding-up of the licence holder or in any other circumstances, entitle him to receive 30% or more of the assets of the licence holder which would then be available for distribution among the participators. (b) Subsections (4) to (6) of section 416 of the Income and Corporation Taxes Act 1988, and the legislative provisions referred to in those subsections, apply to the interpretation of paragraph (a) in the same way that they apply to the interpretation of subsection (2) of section 416 of that Act. "licensed activities" means things authorised to be done by the licence holder in its capacity as operator of a network or trains pursuant to this licence; and “RSSB” means Rail Safety and Standards Board Limited (a company limited by guarantee and registered in England and Wales under number 04655675), and its successors and assigns. 2. Any reference in this licence to a numbered paragraph is a reference to the paragraph bearing that number in the Condition in which the reference occurs. 3. In interpreting this licence, headings shall be disregarded. 4. Where in this licence the licence holder is required to comply with any obligation within a specified time limit, that obligation shall be deemed to continue after that time limit if the licence holder fails to comply with that obligation within that time limit. 5. Where in this licence there is a provision for ORR or the Secretary of State to give consent, such consent may be given subject to conditions. 6. The Interpretation Act 1978 shall apply to this licence as if it were an Act. 7. The provisions of section 149 of the Act shall apply for the purposes of the service of any document pursuant to this licence. 8. Unless the context otherwise requires, terms and expressions defined in the Act and the Railways Act 2005 shall, have the same meanings in this licence. Part III - Conditions Condition 1: Insurance Against Third Party Liability 1. The licence holder shall, in respect of licensed activities, maintain insurance (including self-insurance) against third party liabilities on terms approved by ORR (including, but without limitation, with respect to the type, cover, level and identity of insurer), with any such modification as may be required pursuant to paragraph 3. 2. The licence holder shall, except where ORR may otherwise consent, ensure that every insurance policy maintained pursuant to paragraph 1 shall require 30 days' notice to be given to ORR by the insurer or insurance broker of any lapse or cancellation of or material change to the policy. 3. Where ORR notifies the licence holder that ORR reasonably requires any modification of the insurance approved by ORR pursuant to paragraph 1 the licence holder shall, no later than 60 days (or such longer period as ORR may approve) from the date of the notice, procure that such modification is made. 4. In this Condition: "self-insurance" means the licence holder's financial capacity to meet any liability to a third party in respect of which the licence holder does not otherwise have insurance. Condition 2: Claims Allocation and Handling 1. The licence holder shall, except in so far as ORR may otherwise consent, at all times be a party to and comply with such agreements or arrangements (as amended from time to time) relating to: (a) the handling of claims against operators of railway assets; and (b) the allocation of liabilities among operators of railway assets as may have been approved by ORR. 2. Except with the consent of ORR, the licence holder shall not, in relation to any of the agreements or arrangements described in paragraph 1 (the "relevant claims handling arrangements"), enter into any agreement or arrangement with any other party to the relevant claims handling arrangements: (a) under which the licence holder agrees not to exercise any rights which it may have under any of the relevant claims handling arrangements; or (b) varying the relevant claims handling arrangements other than as provided for under the terms of the relevant claims handling arrangements. Condition 9: Railway Group Standards 3. The licence holder shall comply with the Railway Group Standards applicable to its licensed activities. 4. In this Condition: "Railway Group Standards" means standards authorised pursuant to the Railway Group Standards Code prepared by RSSB. Condition 10: Environmental Matters 01. The licence holder shall establish a written policy designed to protect the environment from the effect of licensed activities, together with operational objectives and management arrangements (together “the environmental arrangements”). 02. The environmental arrangements shall: (a) take due account of any relevant guidance issued by ORR; (b) be effective within six months beginning with the day on which this licence comes into force; and (c) be reviewed by the licence holder periodically, and otherwise as appropriate. 03. Nothing contained in paragraph 1 shall oblige the licence holder to undertake any action that entails excessive cost taking into account all the circumstances, including the nature and scale of operations of the type carried out by the licence holder. 04. The licence holder shall, upon establishment and any material modification of the environmental arrangements, promptly send ORR a copy of the policy together with a summary of the operational objectives and management arrangements. 05. The licence holder shall act with regard to the policy and operational objectives and use its reasonable endeavours to operate the management arrangements effectively. Condition 11: Payment of Fees 06. In respect of the year beginning on 1 April [current financial year] and in each subsequent year, the licence holder shall render to ORR a payment which is the aggregate of the following amounts: (a) the annual fee applicable to this licence, as determined by ORR; and (b) an amount which shall represent a fair proportion as determined by ORR of the amount estimated by ORR (in consultation with the Competition Commission) as having been incurred in the calendar year immediately preceding the 1 April in question by the Competition Commission in connection with references made to it under section 13 of the Act with respect to this licence or any class of licence of which ORR determines that this licence forms part. 07. The payment shall be rendered by the licence holder within such time as ORR may require, being not less than 30 days beginning with the day on which ORR gives notice to the licence holder of its amount. Condition 12: Change of Control 08. The licence holder shall, if any person obtains control of the licence holder, notify ORR as soon as practicable thereafter. Condition 13: Non-Discrimination 09. Except in so far as ORR may otherwise consent, the licence holder shall not in its licensed activities, or in carrying out any other function contemplated by this licence, unduly discriminate between particular persons or between any classes or descriptions of person. Condition 14: Emergency Access 10. During any emergency affecting the railway, the licence holder shall, to the extent that it is legally entitled to do so, grant to any person requesting it such permission to use any network of which the licence holder is the operator pursuant to this licence as is necessary or expedient to alleviate the effects of the emergency. Part IV - Revocation 11. ORR may (after having consulted the appropriate franchising authority where the licence holder is a franchise operator) revoke this licence at any time if agreed in writing by the licence holder. 12. ORR may (after having consulted the appropriate franchising authority where the licence holder is a franchise operator) revoke this licence by not less than three months notice to the licence holder: (a) if a final order has been made, or a provisional order has been confirmed under section 55 of the Act, in respect of any contravention or apprehended contravention by the licence holder of any Condition, and the licence holder does not comply with the order within a period of three months beginning with the day on which ORR gives notice to the licence holder stating that this licence will be revoked pursuant to this term if the licence holder does not so comply; provided that ORR shall not give any such notice before the expiration of the period within which an application could be made under section 57 of the Act in relation to the order in question or before any proceedings relating to any such application are finally determined; or (b) if the licence holder has not commenced carrying on licensed activities within one year beginning with the day on which this licence comes into force or if the licence holder ceases to carry on licensed activities for a continuous period of at least one year; or (c) if the licence holder is convicted of an offence under section 146 of the Act in making its application for this licence; or (d) if any person obtains control of the licence holder and: (i) ORR has not approved that obtaining of control; (ii) within one month of that obtaining of control coming to the notice of ORR, ORR serves notice on the licence holder stating that ORR proposes to revoke this licence in pursuance of this paragraph unless the person who has obtained control of the licence holder ceases to have control of the licence holder within the period of three months beginning with the day of service of the notice; and (iii) that cessation of control does not take place within that period. 3. ORR may (after having consulted the appropriate franchising authority where the licence holder is a franchise operator) revoke this licence by not less than 10 years notice, such notice not to be given earlier than 25 years after the date this licence takes effect. Schedule - List of Networks 4. Networks comprising marshalling yards, holding sidings and recess sidings; 5. Every network comprised in a railway goods terminal; 6. Every network which connects a light maintenance depot or track within a light maintenance depot to any part of a network operated by a person other than the licence holder; 7. Every network which connects a network operated by another person to a network operated by that person or by a third person; 8. Every network which is situated within a harbour or harbour area; and 9. Every network which connects a network situated on premises used for the purposes of: (a) an industrial undertaking (other than an undertaking consisting in the operation of a light maintenance depot); (b) an undertaking engaged in the generation of electrical energy, including a nuclear installation; or (c) a mine or quarry for the purposes of the Mines and Quarries Act 1954 to any part of a network operated by another person; in each case which: (i) is in existence on the date upon which this licence came into force; or (ii) is specified by the licence holder in a notice given to ORR and in respect of which ORR does not give to the licence holder, within a period of 30 days beginning with the day on which the licence holder gives that notice, a notice objecting to the licence holder’s being so authorised; and (iii) is not specified in Schedule 1 to the Railways (Class and Miscellaneous Exemptions) Order 1994 or in respect of which the licence holder is not otherwise exempt from the requirement to be authorised by licence to operate under any exemption under section 7 of the Railways Act 1993. In this Schedule: "harbour" and "harbour area" have the same meaning as in the Dangerous Substances in Harbour Areas Regulations 1987; "mine" and "quarry" have the same meaning as in the Mines and Quarries Act 1954; and "nuclear installation" has the meaning ascribed to it in the Nuclear Installations Act 1965. European Passenger Licence granted to [ ] Reference Number: # Table of contents \| Part I - Scope \| PAGE \| \|----------------\|------\| \| Part II - Interpretation \| 2 \| \| Part III - Revocation \| 4 \| Part I - Scope 1. The Office of Rail Regulation ("ORR"), in exercise of the powers conferred by regulation 6 of the Railway (Licensing of Railway Undertakings) Regulations 2005 ("the Regulations"), hereby grants to [name of licensee], company registration number [registration number], ("the licence holder") a licence authorising the licence holder: (a) to be the operator of trains being used on a network for the purpose of carrying passengers by railway; (b) to be the operator of trains being used on a network for a purpose preparatory to or incidental to or consequential on using a train as mentioned in (a) above; and (c) to be the operator of trains being used on a network for the purpose of assisting other operators of railway assets. 2. This licence shall come into force on [date] and shall continue in force unless and until revoked or suspended in accordance with the provisions of Part III or the Regulations. [Date] Signed by authority of the Office of Rail Regulation Part II - Interpretation 1. In this licence: “control” (a) A person is taken to have control of the licence holder if he exercises, or is able to exercise or is entitled to acquire, direct or indirect control over the licence holder’s affairs, and in particular if he possesses or is entitled to acquire: (i) 30% or more of any share capital or issued share capital of the licence holder or of the voting power in the licence holder; or (ii) such part of any issued share capital of the licence holder as would, if the whole of the income of the licence holder were in fact distributed among the participators (without regard to any rights which he or any other person has as a loan creditor), entitle him to receive 30% or more of the amount so distributed; or (iii) such rights as would, in the event of the winding-up of the licence holder or in any other circumstances, entitle him to receive 30% or more of the assets of the licence holder which would then be available for distribution among the participators. (b) Subsections (4) to (6) of section 416 of the Income and Corporation Taxes Act 1988, and the legislative provisions referred to in those subsections, apply to the interpretation of paragraph (a) in the same way that they apply to the interpretation of subsection (2) of section 416 of that Act. “licensed activities” means things authorised to be done by the licence holder in its capacity as operator of trains pursuant to this licence. 2. In interpreting this licence, headings shall be disregarded. 3. The Interpretation Act 1978 shall apply to this licence as if it were an Act. 4. The provisions of section 149 of the Railways Act 1993 (as amended) (“the Act”) shall apply for the purposes of the service of any document pursuant to this licence. 5. Unless the context otherwise requires, terms and expressions defined in the Act, the Railways Act 2005 or the Regulations shall have the same meanings in this licence. Part III - Revocation 6. ORR may (after having consulted the appropriate franchising authority where the licence holder is a franchise operator) revoke this licence at any time if agreed in writing with the licence holder. 7. ORR may (after having consulted the appropriate franchising authority where the licence holder is a franchise operator), revoke this licence by not less than three months notice to the licence holder: (a) if the licence holder has not commenced carrying on licensed activities within six months beginning with the day on which this licence comes into force or if the licence holder ceases to carry on licensed activities for a continuous period of at least six months; (b) if the licence holder is convicted of an offence under section 146 of the Act or regulation 15 of the Regulations in making its application for this licence; or (c) If a person obtains control of the licence holder and: (i) ORR has not approved such obtaining of control; (ii) within one month of that obtaining of control coming to the notice of ORR, ORR serves notice on the licence holder stating that ORR proposes to revoke this licence in pursuance of this paragraph unless the person who has obtained control of the licence holder ceases to have control of the licence holder within the period of three months beginning with the day of service of the notice; and (iii) that cessation of control does not take place within that period. European Freight Licence granted to [ ] Reference Number: # Table of contents \| Part I - Scope \| PAGE \| \|----------------\|------\| \| \| 1 \| \| Part II - Interpretation \| 2 \| \| Part III - Revocation \| 4 \| Part I - Scope 1. The Office of Rail Regulation ("ORR"), in exercise of the powers conferred by regulation 6 of the Railway (Licensing of Railway Undertakings) Regulations 2005 ("the Regulations"), hereby grants to [name of licensee], company registration number [registration number], ("the licence holder") a licence authorising the licence holder: (a) to be the operator of trains being used on a network for the purpose of carrying goods by railway; (b) to be the operator of trains being used on a network for a purpose preparatory to or incidental to or consequential on using a train as mentioned in (a) above; and (c) to be the operator of trains being used on a network for the purpose of assisting other operators of railway assets. 2. This licence shall come into force on [date] and shall continue in force unless and until revoked or suspended in accordance with the provisions of Part III or the Regulations. [Date] Signed by authority of the Office of Rail Regulation Part II - Interpretation 1. In this licence: “control” (a) A person is taken to have control of the licence holder if he exercises, or is able to exercise or is entitled to acquire, direct or indirect control over the licence holder’s affairs, and in particular if he possesses or is entitled to acquire: (i) 30% or more of any share capital or issued share capital of the licence holder or of the voting power in the licence holder; or (ii) such part of any issued share capital of the licence holder as would, if the whole of the income of the licence holder were in fact distributed among the participators (without regard to any rights which he or any other person has as a loan creditor), entitle him to receive 30% or more of the amount so distributed; or (iii) such rights as would, in the event of the winding-up of the licence holder or in any other circumstances, entitle him to receive 30% or more of the assets of the licence holder which would then be available for distribution among the participators. (b) Subsections (4) to (6) of section 416 of the Income and Corporation Taxes Act 1988, and the legislative provisions referred to in those subsections, apply to the interpretation of paragraph (a) in the same way that they apply to the interpretation of subsection (2) of section 416 of that Act. “licensed activities” means things authorised to be done by the licence holder in its capacity as operator of trains pursuant to this licence. 2. In interpreting this licence, headings shall be disregarded. 3. The Interpretation Act 1978 shall apply to this licence as if it were an Act. 4. The provisions of section 149 of the Railways Act 1993 (as amended) (“the Act”) shall apply for the purposes of the service of any document pursuant to this licence. 5. Unless the context otherwise requires, terms and expressions defined in the Act, the Railways Act 2005, or the Regulations shall have the same meanings in this licence. Part III - Revocation 6. ORR may (after having consulted the appropriate franchising authority where the licence holder is a franchise operator) revoke this licence at any time if agreed in writing with the licence holder. 7. ORR may (after having consulted the appropriate franchising authority where the licence holder is a franchise operator), revoke this licence by not less than three months notice to the licence holder: (a) if the licence holder has not commenced carrying on licensed activities within six months beginning with the day on which this licence comes into force or if the licence holder ceases to carry on licensed activities for a continuous period of at least six months; (b) if the licence holder is convicted of an offence under section 146 of the Act or regulation 15 of the Regulations in making its application for this licence; or (c) If a person obtains control of the licence holder and: (i) ORR has not approved such obtaining of control; (ii) within one month of that obtaining of control coming to the notice of ORR, ORR serves notice on the licence holder stating that ORR proposes to revoke this licence in pursuance of this paragraph unless the person who has obtained control of the licence holder ceases to have control of the licence holder within the period of three months beginning with the day of service of the notice; and (iii) that cessation of control does not take place within that period. Statement of National Regulatory Provisions (SNRP): Passenger granted to [ ] # Table of contents \| Part I - Scope \| PAGE \| \|----------------\|------\| \| Part II - Interpretation \| 2 \| \| Part III - Conditions \| 4 \| \| Condition 1: Insurance Against Third Party Liability \| 4 \| \| Condition 2: Claims Allocation and Handling \| 5 \| \| Condition 3: Through Tickets and Network Benefits \| 6 \| \| Condition 4: Timetabling \| 7 \| \| Condition 5: Provision of Services for Disabled People \| 9 \| \| Condition 6: Complaints Procedure \| 11 \| \| Condition 7: Liaison with the RPC and LTUC \| 12 \| \| Condition 8: RSSB Membership \| 14 \| \| Condition 9: Railway Group Standards \| 15 \| \| Condition 10: Environmental Matters \| 16 \| \| Condition 11: Payment of Fees \| 17 \| \| Condition 12: Change of Control \| 18 \| \| Part IV - Revocation \| 19 \| Part I - Scope 1. The Office of Rail Regulation ("ORR"), in exercise of the powers conferred by regulation 10 of the Railway (Licensing of Railway Undertakings) Regulations 2005 ("the Regulations"), hereby grants to [name of SNRP holder], company registration number [number], ("the SNRP holder") an SNRP including the Conditions set out in Part III. 2. This SNRP shall come into force on [date] and shall continue in force unless and until revoked in accordance with Part IV. [Date] Signed by authority of the Office of Rail Regulation Part II - Interpretation 1. In this SNRP: “comply” is to be interpreted in accordance with ORR’s most recently published licensing guidance. “control” (a) A person is taken to have control of the SNRP holder if he exercises, or is able to exercise or is entitled to acquire, direct or indirect control over the SNRP holder’s affairs, and in particular if he possesses or is entitled to acquire: (i) 30% or more of any share capital or issued share capital of the SNRP holder or of the voting power in the SNRP holder; or (ii) such part of any issued share capital of the SNRP holder as would, if the whole of the income of the SNRP holder were in fact distributed among the participators (without regard to any rights which he or any other person has as a loan creditor), entitle him to receive 30% or more of the amount so distributed; or (iii) such rights as would, in the event of the winding-up of the SNRP holder or in any other circumstances, entitle him to receive 30% or more of the assets of the SNRP holder which would then be available for distribution among the participators. (b) Subsections (4) to (6) of section 416 of the Income and Corporation Taxes Act 1988, and the legislative provisions referred to in those subsections, apply to the interpretation of paragraph (a) in the same way that they apply to the interpretation of subsection (2) of section 416 of that Act. "licensed activities" means things authorised to be done by the SNRP holder in its capacity as operator of trains pursuant to its European licence. “LTUC” means the London Transport Users Committee and any successor to LTUC which performs the same functions. “the RPC” means the Rail Passengers Council and any successor or delegated body which performs the functions of the RPC. “RSSB” means Rail Safety and Standards Board Limited (a company limited by guarantee and registered in England and Wales under number 04655675), and its successors and assigns. 2. Any reference in this SNRP to a numbered paragraph is a reference to the paragraph bearing that number in the Condition in which the reference occurs. 3. In interpreting this SNRP, headings shall be disregarded. 4. Where in this SNRP the SNRP holder is required to comply with any obligation within a specified time limit, that obligation shall be deemed to continue after that time limit if the SNRP holder fails to comply with that obligation within that time limit. 5. Where in this SNRP there is a provision for ORR or the Secretary of State to give consent, such consent may be given subject to conditions. 6. The Interpretation Act 1978 shall apply to this SNRP as if it were an Act. 7. The provisions of section 149 of the Railways Act 1993 (as amended) (“the Act”) shall apply for the purposes of the service of any document pursuant to this SNRP. 8. Unless the context otherwise requires, terms and expressions defined in the Act, the Railways Act 2005, or the Regulations shall have the same meanings in this SNRP. Part III - Conditions Condition 1: Insurance Against Third Party Liability 1. The licence holder shall, in respect of licensed activities, maintain insurance (including self-insurance) against third party liabilities on terms approved by ORR (including, but without limitation, with respect to the type, cover and level of insurance and identity of insurer), with any such modification as may be required pursuant to paragraph 3. 2. The licence holder shall, except where ORR may otherwise consent, ensure that every insurance policy maintained pursuant to paragraph 1 shall require 30 days' notice to be given to ORR by the insurer or insurance broker of any lapse or cancellation of or material change to the policy. 3. Where ORR notifies the licence holder that ORR reasonably requires any modification of the insurance approved by ORR pursuant to paragraph 1, the licence holder shall, no later than 60 days (or such longer period as ORR may approve) from the date of the notice, procure that such modification is made. 4. In this Condition: "self-insurance" means the licence holder's financial capacity to meet any liability to a third party in respect of which the licence holder does not otherwise have insurance. Condition 2: Claims Allocation and Handling 1. The SNRP holder shall, except in so far as ORR may otherwise consent, at all times be a party to and comply with such agreements or arrangements (as amended from time to time) relating to: (a) the handling of claims against operators of railway assets; and (b) the allocation of liabilities among operators of railway assets as may have been approved by ORR. 2. Except with the consent of ORR, the SNRP holder shall not, in relation to any of the agreements or arrangements described in paragraph 1 (the "relevant claims handling arrangements"), enter into any agreement or arrangement with any other party to the relevant claims handling arrangements: (a) under which the SNRP holder agrees not to exercise any rights which it may have under any of the relevant claims handling arrangements; or (b) varying the relevant claims handling arrangements other than as provided for under the terms of the relevant claims handling arrangements. Condition 3: Through Tickets and Network Benefits 3. The SNRP holder shall, except in so far as the Secretary of State may otherwise consent, be a party to and comply with such arrangements (as amended from time to time) relating to: (a) stations at which, and the journeys in respect of which, through tickets, and tickets from any station specified in or under such arrangements to any other such station, shall be sold and honoured; (b) operation of a telephone enquiry bureau relating to railway passenger services; (c) settlement of amounts due to or from the SNRP holder in respect of tickets within sub-paragraph (a); and (d) conditions of carriage in respect of through tickets, as shall have been approved by the Secretary of State. Condition 4: Timetabling 1. The SNRP holder shall provide Network Rail with such information about licensed activities as may be reasonably necessary for Network Rail to fulfil any obligation on it under the Timetable Condition. 2. The SNRP holder shall, in relation to the Timetable Condition: (a) participate constructively in any consultation carried out by Network Rail; (b) notify ORR of any material non-compliance by Network Rail with its contractual or licence obligations in relation to the procedures referred to in paragraph 2 of the Timetable Condition which the SNRP holder considers is wilful or persistent; and (c) use reasonable endeavours to resolve promptly any disputes arising under such procedures so as to prevent or minimise the risk of delay in providing access to the information in accordance with paragraph 2 of the Timetable Condition. 3. The SNRP holder shall as soon as reasonably practicable and in any case not more than three weeks after receiving access to information under paragraph 2(b) of the Timetable Condition: (a) provide to the persons referred to in sub-paragraphs (i) and (ii) of paragraph 1 of the Timetable Condition (b) provide to the persons referred to in paragraph 2 of Condition 3 of the network licence of Network Rail; and (c) provide reasonable access to all timetable information providers on request, appropriate information to enable each on request to provide passengers or prospective passengers affected by such changes to the national timetable with all relevant information to plan their journeys including, so far as reasonably practicable, the fare or fares and any restrictions applicable to each service affected. 4. In this Condition: "Network Rail" means Network Rail Infrastructure Limited (a company limited by guarantee and registered in England and Wales under number 02904587), and its successors and assigns; "Timetable Condition" means Condition 9 (Timetabling) of the network licence of Network Rail (other than paragraph 4 of that Condition); and "timetable information providers" means travel agents and other persons (including its own employees) or organisations to whom the SNRP holder normally provides information in respect of the national timetable (in either case a significant part of whose business is to communicate it to users and potential users of that information) Condition 5: Provision of Services for Disabled People 1. The SNRP holder shall by the date on which this SNRP comes into force establish and thereafter comply with: (a) a statement of policy; and (b) a detailed body of arrangements, procedures, services and other benefits to be implemented or provided by the SNRP holder designed to protect the interests of people who are disabled in their use of trains of which the SNRP holder is the operator pursuant to this SNRP and to facilitate such use (together “the Disabled People’s Protection Policy”). 2. In establishing the Disabled People’s Protection Policy and in making any alteration to it, the SNRP holder shall have due regard to the code of practice published by the Secretary of State pursuant to section 71B of the Act. 3. The SNRP holder shall not establish, or make any material alteration to, the Disabled People’s Protection Policy unless and until: (a) the RPC has been consulted; and (b) the SNRP holder has submitted the Disabled People’s Protection Policy, or (as the case may be) the proposed alteration, to the Secretary of State and the Secretary of State has approved it. 4. Where the Secretary of State requires the SNRP holder to carry out a review of the Disabled People’s Protection Policy or any part of it or the manner in which it has been implemented, with a view to determining whether any alteration should be made to it, the SNRP holder shall promptly carry out a review and shall submit a written report to the Secretary of State setting out the results or conclusions. 5. The SNRP holder shall: (a) send a copy of the Disabled People’s Protection Policy and of any alteration to it (approved under sub-paragraph 3b) to the Secretary of State and the RPC; (b) in a place of reasonable prominence at each station at which trains of which the SNRP holder is the operator pursuant to its European licence are scheduled to call, display or procure the display of a notice giving the address from which a current copy of the statement may be obtained; and (c) give or send free of charge a current copy of the statement to any person who requests it. 06. Nothing in this Condition shall oblige the SNRP holder to undertake any action that entails excessive cost taking into account all the circumstances, including the nature and scale of licensed activities. Condition 6: Complaints Procedure 07. The SNRP holder shall comply with a procedure ("Complaints Procedure") approved by the Secretary of State as at the date on which this SNRP came into force for handling complaints relating to licensed activities from its customers and potential customers. 08. Subject to paragraph 6, the SNRP holder shall not make any material alteration to the Complaints Procedure unless and until: (a) the RPC and, where appropriate, LTUC has been consulted; and (b) the SNRP holder has submitted the proposed alteration to the Secretary of State and the Secretary of State has approved it. 09. The SNRP holder shall send a copy of the Complaints Procedure and of any material alteration to it (in each case following approval by the Secretary of State where required under paragraph 1 and paragraph 2 (b)) to the Secretary of State and the RPC and, where appropriate, LTUC. 10. Where the Secretary of State requires the SNRP holder to carry out a review of the Complaints Procedure or any part of it or the manner in which it has been operated, with a view to determining whether any alterations should be made to it, the SNRP holder shall promptly carry out a review and shall submit a written report to the Secretary of State setting out the results or conclusions. 11. The SNRP holder shall make such alterations to the Complaints Procedure, or the manner in which it is operated, as the Secretary of State may reasonably require after the Secretary of State has received a report under paragraph 4 and consulted the SNRP holder. 12. Paragraph 2 does not apply to any alteration made pursuant to paragraph 5. Condition 7: Liaison with the RPC and LTUC 13. Whenever reasonably requested to do so by the RPC and LTUC (as relevant), the SNRP holder shall meet with the RPC or LTUC to discuss and review such matters as the RPC and LTUC (as relevant) may wish to consider in connection with its functions under Part I of the Act. The SNRP holder shall not under this Condition be obliged to attend more than two meetings with RPC and LTUC (as relevant) in any calendar year. 14. The SNRP holder shall provide the RPC and LTUC (as relevant) with such information as satisfies all the following conditions: (a) the RPC and LTUC (as relevant) reasonably requests the information for the proper performance of its functions under Part I of the Act; (b) no undue burden is imposed on the SNRP holder in procuring or furnishing the information; and (c) the information would normally be available to the SNRP holder, unless the RPC and LTUC (as relevant) considers the information essential to enable it to exercise its functions under Part I of the Act. 15. In every calendar year in which the SNRP holder meets with the RPC and, where appropriate, LTUC pursuant to paragraph 1, the SNRP holder shall be represented by one or more senior executives of the SNRP holder in at least one meeting with the RPC and LTUC (separately or jointly). 16. Where the SNRP holder also holds another SNRP, each number specified as a maximum or minimum in this Condition shall apply jointly to meetings under this Condition and to meetings under any corresponding condition in that other SNRP. 17. Where: (a) the SNRP holder and the RPC or LTUC, or both disagree as to the reasonableness of a request made to the SNRP holder by the RPC or LTUC, or both under paragraph 1 or paragraph 2; (b) either party refers the dispute to the Secretary of State; and (c) the Secretary of State determines that the request is reasonable, the SNRP holder shall promptly thereafter comply with the request. Condition 8: RSSB Membership 18. If the SNRP holder’s annual turnover has never exceeded £1 million and the SNRP holder is not a franchise operator, paragraph 2 shall not have effect until the SNRP holder’s annual turnover exceeds £1 million for the first time. The SNRP holder shall provide ORR with such information in respect of its annual turnover as ORR may from time to time require. 19. With effect from the date of the coming into force of this SNRP, the SNRP holder shall: (a) become and thereafter remain a member of RSSB; (b) comply with its obligations under the Constitution Agreement and the articles of association of RSSB; (c) exercise its rights under the Constitution Agreement and the articles of association of RSSB so as to ensure that RSSB shall act in accordance with the Constitution Agreement; and (d) comply with the Railway Group Standards Code prepared by RSSB. 20. When an SNRP holder first becomes subject to the obligations in paragraph 2 his rights, obligations and liabilities associated with such membership shall commence on the same day, and the SNRP holder shall complete the formal and legal documentation associated with such membership within three months of that date. 21. In this condition: “franchise operator” includes an operator of last resort, under section 30 of the Act. Condition 9: Railway Group Standards 22. The SNRP holder shall comply with the Railway Group Standards applicable to its licensed activities. 23. In this Condition: "Railway Group Standards" means standards authorised pursuant to the Railway Group Standards Code prepared by RSSB. Condition 10: Environmental Matters 01. The SNRP holder shall establish a written policy designed to protect the environment from the effect of licensed activities, together with operational objectives and management arrangements (together “the environmental arrangements”). 02. The environmental arrangements shall: (a) take due account of any relevant guidance issued by ORR; (b) be effective within six months beginning with the day on which this SNRP comes into force; and (c) be reviewed by the SNRP holder periodically, and otherwise as appropriate. 03. Nothing contained in paragraph 1 shall oblige the SNRP holder to undertake any action that entails excessive cost taking into account all the circumstances, including the nature and scale of operations of the type carried out by the SNRP holder. 04. The SNRP holder shall, upon establishment and any material modification of the environmental arrangements, promptly send ORR a current copy of the policy together with a summary of the operational objectives and management arrangements. 05. The SNRP holder shall act with regard to the policy and operational objectives and use its reasonable endeavours to operate the management arrangements effectively. Condition 11: Payment of Fees 06. In respect of the year beginning on 1 April [current financial year] and in each subsequent year, the SNRP holder shall render to ORR a payment which is the aggregate of the following amounts: (a) the annual fee applicable to this SNRP as determined by ORR; and (b) an amount which shall represent a fair proportion as determined by ORR of the amount estimated by ORR (in consultation with the Competition Commission) as having been incurred in the calendar year immediately preceding the 1 April in question by the Competition Commission in connection with references made to it under section 13 of the Act with respect to this SNRP or any class of SNRP of which ORR determines that this SNRP forms part, 07. The payment shall be rendered by the SNRP holder within such time as ORR may require, being not less than 30 days beginning with the day on which ORR gives notice to the SNRP holder of its amount. Condition 12: Change of Control 08. The SNRP holder shall, if any person obtains control of the SNRP holder, notify ORR as soon as practicable thereafter. Part IV - Revocation 09. ORR may (after having consulted the appropriate franchising authority where the SNRP holder is a franchise operator) revoke this SNRP at any time if agreed in writing by the SNRP holder. 10. ORR may (after having consulted the appropriate franchising authority where the SNRP holder is a franchise operator) revoke this SNRP by not less than three months notice to the SNRP holder: (a) if a final order has been made, or a provisional order has been confirmed under section 55 of the Act, in respect of any contravention or apprehended contravention by the SNRP holder of any Condition, and the SNRP holder does not comply with the order within a period of three months beginning with the day on which ORR gives notice to the SNRP holder stating that this SNRP will be revoked pursuant to this term if the SNRP holder does not so comply; provided that ORR shall not give any such notice before the expiration of the period within which an application could be made under section 57 of the Act in relation to the order in question or before any proceedings relating to any such application are finally determined; (b) if the SNRP holder has not commenced carrying on licensed activities within six months beginning with the day on which this SNRP comes into force or if the SNRP holder ceases to carry on licensed activities for a continuous period of at least six months; (c) if the SNRP holder is convicted of an offence under section 146 of the Act or regulation 15 of the Regulations in making its application for this SNRP; or (d) if a person obtains control of the SNRP holder and: (i) ORR has not approved such obtaining of control; (ii) within one month of that obtaining of control coming to the notice of ORR, ORR serves notice on the SNRP holder stating that ORR proposes to revoke this SNRP in pursuance of this paragraph unless the person who has obtained control of the SNRP holder ceases to have control of the SNRP holder within the period of three months beginning with the day of service of the notice; and (iii) that cessation of control does not take place within that period. Statement of National Regulatory Provisions (SNRP): Freight granted to [ ] # Table of contents \| Part I - Scope \| ................................................................. \| 1 \| \| Part II - Interpretation \| ........................................................................ \| 2 \| \| Part III - Conditions \| ........................................................................ \| 4 \| \| Condition 1: Insurance Against Third Party Liability \| ........................................ \| 4 \| \| Condition 2: Claims Allocation and Handling \| ........................................ \| 5 \| \| Condition 8: RSSB Membership \| ........................................................................ \| 6 \| \| Condition 9: Railway Group Standards \| ........................................................................ \| 7 \| \| Condition 10: Environmental Matters \| ........................................................................ \| 8 \| \| Condition 11: Payment of Fees \| ........................................................................ \| 9 \| \| Condition 12: Change of Control \| ........................................................................ \| 10 \| \| Part IV - Revocation \| ........................................................................ \| 11 \| Note: Conditions 3 – 7 are not used in this licence. Part I - Scope 1. The Office of Rail Regulation ("ORR"), in exercise of the powers conferred by regulation 10 of the Railway (Licensing of Railway Undertakings) Regulations 2005 ("the Regulations"), hereby grants to [name of SNRP holder], company registration number [number], ("the SNRP holder") an SNRP including the Conditions set out in Part III. 2. This SNRP shall come into force on [date] and shall continue in force unless and until revoked in accordance with Part IV. [Date] Signed by authority of the Office of Rail Regulation Part II - Interpretation 1. In this SNRP: “comply” is to be interpreted in accordance with ORR’s most recently published licensing guidance. "control" (a) A person is taken to have control of the SNRP holder if he exercises, or is able to exercise or is entitled to acquire, direct or indirect control over the SNRP holder’s affairs, and in particular if he possesses or is entitled to acquire: (i) 30% or more of any share capital or issued share capital of the SNRP holder or of the voting power in the SNRP holder; or (ii) such part of any issued share capital of the SNRP holder as would, if the whole of the income of the SNRP holder were in fact distributed among the participators (without regard to any rights which he or any other person has as a loan creditor), entitle him to receive 30% or more of the amount so distributed; or (iii) such rights as would, in the event of the winding-up of the SNRP holder or in any other circumstances, entitle him to receive 30% or more of the assets of the SNRP holder which would then be available for distribution among the participators. (b) Subsections (4) to (6) of section 416 of the Income and Corporation Taxes Act 1988, and the legislative provisions referred to in those subsections, apply to the interpretation of paragraph (a) in the same way that they apply to the interpretation of subsection (2) of section 416 of that Act. "licensed activities" means things authorised to be done by the SNRP holder in its capacity as operator of trains pursuant to its European licence. “RSSB” means Rail Safety and Standards Board Limited (a company limited by guarantee and registered in England and Wales under number 04655675), and its successors and assigns. 2. Any reference in this SNRP to a numbered paragraph is a reference to the paragraph bearing that number in the Condition in which the reference occurs. 3. In interpreting this SNRP, headings shall be disregarded. 4. Where in this SNRP the SNRP holder is required to comply with any obligation within a specified time limit, that obligation shall be deemed to continue after that time limit if the SNRP holder fails to comply with that obligation within that time limit. 5. Where in this SNRP there is a provision for ORR or the Secretary of State to give consent, such consent may be given subject to conditions. 6. The Interpretation Act 1978 shall apply to this SNRP as if it were an Act. 7. The provisions of section 149 of the Railways Act 1993 (as amended) (“the Act”) shall apply for the purposes of the service of any document pursuant to this SNRP. 8. Unless the context otherwise requires, terms and expressions defined in the Act, the Railways Act 2005, or the Regulations shall have the same meanings in this SNRP. Part III - Conditions Condition 1: Insurance Against Third Party Liability 1. The SNRP holder shall, in respect of licensed activities, maintain insurance (including self-insurance) against third party liabilities on terms approved by ORR (including, but without limitation, with respect to the type, cover and level of insurance and identity of insurer), with any such modification as may be required pursuant to paragraph 3. 2. The SNRP holder shall, except where ORR may otherwise consent, ensure that every insurance policy maintained pursuant to paragraph 1 shall require 30 days’ notice to be given to ORR by the insurer or insurance broker of any lapse or cancellation of or material change to the policy. 3. Where ORR notifies the SNRP holder that ORR reasonably requires any modification of the insurance approved by ORR pursuant to paragraph 1, the SNRP holder shall, no later than 60 days (or such longer period as ORR may approve) from the date of the notice, procure that such modification is made. 4. In this Condition: "self-insurance" means the SNRP holder's financial capacity to meet any liability to a third party in respect of which the SNRP holder does not otherwise have insurance. Condition 2: Claims Allocation and Handling 1. The SNRP holder shall, except in so far as ORR may otherwise consent, at all times be a party to and comply with such agreements or arrangements (as amended from time to time) relating to: (a) the handling of claims against operators of railway assets; and (b) the allocation of liabilities among operators of railway assets as may have been approved by ORR. 2. Except with the consent of ORR, the SNRP holder shall not, in relation to any of the agreements or arrangements described in paragraph 1 (the "relevant claims handling arrangements"), enter into any agreement or arrangement with any other party to the relevant claims handling arrangements: (a) under which the SNRP holder agrees not to exercise any rights which it may have under any of the relevant claims handling arrangements; or (b) varying the relevant claims handling arrangements other than as provided for under the terms of the relevant claims handling arrangements. Condition 8: RSSB Membership 1. If the SNRP holder’s annual turnover has never exceeded £1 million and the SNRP holder is not a franchise operator, paragraph 2 shall not have effect until the SNRP holder’s annual turnover exceeds £1 million for the first time. The SNRP holder shall provide ORR with such information in respect of its annual turnover as ORR may from time to time require. 2. With effect from the date of the coming into force of this SNRP, the SNRP holder shall: (a) become and thereafter remain a member of RSSB; (b) comply with its obligations under the Constitution Agreement and the articles of association of RSSB; (c) exercise its rights under the Constitution Agreement and the articles of association of RSSB so as to ensure that RSSB shall act in accordance with the Constitution Agreement; and (d) comply with the Railway Group Standards Code prepared by RSSB. 3. When an SNRP holder first becomes subject to the obligations in paragraph 2 his rights, obligations and liabilities associated with such membership shall commence on the same day, and the SNRP holder shall complete the formal and legal documentation associated with such membership within three months of that date. 4. In this condition: “franchise operator” includes an operator of last resort, under section 30 of the Act. Condition 9: Railway Group Standards 5. The SNRP holder shall comply with the Railway Group Standards applicable to its licensed activities. 6. In this Condition: "Railway Group Standards" means standards authorised pursuant to the Railway Group Standards Code prepared by RSSB. Condition 10: Environmental Matters 01. The SNRP holder shall establish a written policy designed to protect the environment from the effect of licensed activities, together with operational objectives and management arrangements (together “the environmental arrangements”). 02. The environmental arrangements shall: (a) take due account of any relevant guidance issued by ORR; (b) be effective within six months beginning with the day on which this SNRP comes into force; and (c) be reviewed by the SNRP holder periodically, and otherwise as appropriate. 03. Nothing contained in paragraph 1 shall oblige the SNRP holder to undertake any action that entails excessive cost taking into account all the circumstances, including the nature and scale of operations of the type carried out by the SNRP holder. 04. The SNRP holder shall, upon establishment and any material modification of the environmental arrangements, promptly send ORR a current copy of the policy together with a summary of the operational objectives and management arrangements. 05. The SNRP holder shall act with regard to the policy and operational objectives and use its reasonable endeavours to operate the management arrangements effectively. Condition 11: Payment of Fees 06. In respect of the year beginning on 1 April [current financial year] and in each subsequent year, the SNRP holder shall render to ORR a payment which is the aggregate of the following amounts: (a) the annual fee applicable to this SNRP, as determined by ORR; and (b) an amount which shall represent a fair proportion as determined by ORR of the amount estimated by ORR (in consultation with the Competition Commission) as having been incurred in the calendar year immediately preceding the 1 April in question by the Competition Commission in connection with references made to it under section 13 of the Act with respect to this SNRP or any class of SNRP of which ORR determines that this SNRP forms part, 07. The payment shall be rendered by the SNRP holder within such time as ORR may require, being not less than 30 days beginning with the day on which ORR gives notice to the SNRP holder of its amount. Condition 12: Change of Control 08. The SNRP holder shall, if any person obtains control of the SNRP holder, notify ORR as soon as practicable thereafter. Part IV - Revocation 09. ORR may (after having consulted the appropriate franchising authority where the SNRP holder is a franchise operator) revoke this SNRP at any time if agreed in writing by the SNRP holder. 10. ORR may (after having consulted the appropriate franchising authority where the SNRP holder is a franchise operator) revoke this SNRP by not less than three months notice to the SNRP holder: (a) if a final order has been made, or a provisional order has been confirmed under section 55 of the Act, in respect of any contravention or apprehended contravention by the SNRP holder of any Condition, and the SNRP holder does not comply with the order within a period of three months beginning with the day on which ORR gives notice to the SNRP holder stating that this SNRP will be revoked pursuant to this term if the SNRP holder does not so comply; provided that ORR shall not give any such notice before the expiration of the period within which an application could be made under section 57 of the Act in relation to the order in question or before any proceedings relating to any such application are finally determined; (b) if the SNRP holder has not commenced carrying on licensed activities within six months beginning with the day on which this SNRP comes into force or if the SNRP holder ceases to carry on licensed activities for a continuous period of at least six months; (c) if the SNRP holder is convicted of an offence under section 146 of the Act or regulation 15 of the Regulations in making its application for this SNRP; or (d) if a person obtains control of the SNRP holder and: (i) ORR has not approved such obtaining of control; (ii) within one month of that obtaining of control coming to the notice of ORR, ORR serves notice on the SNRP holder stating that ORR proposes to revoke this SNRP in pursuance of this paragraph unless the person who has obtained control of the SNRP holder ceases to have control of the SNRP holder within the period of three months beginning with the day of service of the notice; and (iii) that cessation of control does not take place within that period.	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/3645-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 142, "total-input-tokens": 199830, "total-output-tokens": 33063, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 738, 1 ], [ 738, 779, 2 ], [ 779, 1516, 3 ], [ 1516, 2461, 4 ], [ 2461, 3882, 5 ], [ 3882, 5443, 6 ], [ 5443, 6671, 7 ], [ 6671, 7692, 8 ], [ 7692, 8457, 9 ], [ 8457, 10200, 10 ], [ 10200, 10885, 11 ], [ 10885, 12683, 12 ], [ 12683, 13281, 13 ], [ 13281, 14954, 14 ], [ 14954, 16849, 15 ], [ 16849, 16988, 16 ], [ 16988, 18351, 17 ], [ 18351, 18636, 18 ], [ 18636, 19894, 19 ], [ 19894, 20864, 20 ], [ 20864, 21025, 21 ], [ 21025, 22978, 22 ], [ 22978, 23468, 23 ], [ 23468, 23513, 24 ], [ 23513, 24051, 25 ], [ 24051, 25000, 26 ], [ 25000, 26421, 27 ], [ 26421, 27748, 28 ], [ 27748, 28976, 29 ], [ 28976, 29991, 30 ], [ 29991, 31354, 31 ], [ 31354, 31639, 32 ], [ 31639, 32897, 33 ], [ 32897, 33868, 34 ], [ 33868, 34029, 35 ], [ 34029, 35984, 36 ], [ 35984, 36474, 37 ], [ 36474, 36507, 38 ], [ 36507, 37403, 39 ], [ 37403, 38002, 40 ], [ 38002, 39423, 41 ], [ 39423, 41092, 42 ], [ 41092, 42320, 43 ], [ 42320, 43341, 44 ], [ 43341, 45141, 45 ], [ 45141, 45675, 46 ], [ 45675, 47348, 47 ], [ 47348, 49238, 48 ], [ 49238, 49377, 49 ], [ 49377, 49662, 50 ], [ 49662, 50920, 51 ], [ 50920, 51891, 52 ], [ 51891, 52052, 53 ], [ 52052, 52358, 54 ], [ 52358, 52725, 55 ], [ 52725, 53169, 56 ], [ 53169, 53952, 57 ], [ 53952, 55907, 58 ], [ 55907, 56397, 59 ], [ 56397, 56463, 60 ], [ 56463, 56512, 61 ], [ 56512, 57201, 62 ], [ 57201, 58057, 63 ], [ 58057, 59478, 64 ], [ 59478, 60934, 65 ], [ 60934, 62162, 66 ], [ 62162, 63182, 67 ], [ 63182, 63467, 68 ], [ 63467, 64713, 69 ], [ 64713, 65683, 70 ], [ 65683, 65844, 71 ], [ 65844, 66150, 72 ], [ 66150, 66533, 73 ], [ 66533, 67396, 74 ], [ 67396, 69349, 75 ], [ 69349, 69836, 76 ], [ 69836, 69916, 77 ], [ 69916, 69949, 78 ], [ 69949, 70568, 79 ], [ 70568, 71479, 80 ], [ 71479, 72900, 81 ], [ 72900, 74245, 82 ], [ 74245, 75456, 83 ], [ 75456, 76481, 84 ], [ 76481, 76766, 85 ], [ 76766, 78004, 86 ], [ 78004, 78975, 87 ], [ 78975, 79136, 88 ], [ 79136, 79442, 89 ], [ 79442, 79809, 90 ], [ 79809, 81772, 91 ], [ 81772, 82262, 92 ], [ 82262, 83797, 93 ], [ 83797, 84253, 94 ], [ 84253, 84316, 95 ], [ 84316, 84452, 96 ], [ 84452, 85446, 97 ], [ 85446, 86767, 98 ], [ 86767, 87399, 99 ], [ 87399, 88874, 100 ], [ 88874, 88935, 101 ], [ 88935, 89097, 102 ], [ 89097, 90086, 103 ], [ 90086, 91407, 104 ], [ 91407, 92040, 105 ], [ 92040, 93515, 106 ], [ 93515, 93594, 107 ], [ 93594, 94331, 108 ], [ 94331, 94871, 109 ], [ 94871, 96265, 110 ], [ 96265, 97860, 111 ], [ 97860, 99088, 112 ], [ 99088, 100100, 113 ], [ 100100, 100860, 114 ], [ 100860, 102563, 115 ], [ 102563, 103244, 116 ], [ 103244, 105009, 117 ], [ 105009, 105609, 118 ], [ 105609, 107261, 119 ], [ 107261, 109100, 120 ], [ 109100, 109237, 121 ], [ 109237, 110577, 122 ], [ 110577, 110859, 123 ], [ 110859, 112084, 124 ], [ 112084, 113033, 125 ], [ 113033, 113188, 126 ], [ 113188, 115066, 127 ], [ 115066, 115340, 128 ], [ 115340, 115417, 129 ], [ 115417, 116680, 130 ], [ 116680, 117220, 131 ], [ 117220, 118632, 132 ], [ 118632, 119993, 133 ], [ 119993, 121203, 134 ], [ 121203, 122209, 135 ], [ 122209, 123549, 136 ], [ 123549, 123831, 137 ], [ 123831, 125056, 138 ], [ 125056, 126006, 139 ], [ 126006, 126161, 140 ], [ 126161, 128039, 141 ], [ 128039, 128312, 142 ] ] }
113136842deeafc7664df2676def48b0e1d7df46	Notice under section 12(2) of the Railways Act 1993 (as amended) ("the Act") and regulation 13(2) of the Railway (Licensing of Railway Undertakings) Regulations 2005 ("the Regulations") 1. Recipients of this notice have been granted licences to operate trains, stations, networks and/or light maintenance depots under section 8 of the Act, subject to conditions contained in each licence. Pursuant to Schedule 4 of the Regulations, some recipients also hold European licences together with statements of national regulatory provisions ("SNRPs"), which are subject to conditions contained in each SNRP. 2. The Office of Rail Regulation ("ORR") hereby gives notice, pursuant to section 12(2) of the Act and regulation 13(2) of the Regulations, of its proposal to modify licences and SNRPs as set out in Schedules 1 and 2 to this notice. 3. Under ORR's proposed modifications, the licences and SNRPs listed in Schedule 1 to this notice will be modified in the manner set out in that Schedule. In summary, the proposed modifications will replace the text of existing licences and SNRPs with that of the new model licences and the new model SNRPs (respectively). The new model licences and the new model SNRPs are available on the ORR website at: http://www.rail-reg.gov.uk/server/show/nav.00100b001007. 4. The licences and SNRPs listed in Schedule 2 contain special or bespoke conditions. ORR proposes that these licences and SNRPs shall be modified, where appropriate, by replacing their text with that of the new model licences and the new model SNRPs (respectively), subject to the specific modifications set out in that Schedule. The specific modifications are designed to preserve the bespoke aspects of these licences and SNRPs. 5. The reasons for the proposed modifications and the effects that they would have are explained in the document Licensing Review: Conclusions, ORR, January 2006, available at: http://www.rail-reg.gov.uk/upload/pdf/271.pdf. In summary the modifications aim to simplify existing licences and SNRPs, while taking account of the Railways Act 2005 and recent changes to the European licensing regime. 6. Any representations or objections to the proposed modifications should be made in writing before 5.00 pm on 2 March 2006. Please address these to: Julia Christie Executive, Licensing Office of Rail Regulation 1 Waterhouse Square 138-142 Holborn London EC1N 2TQ Please copy responses by email to: [email protected]. 7. Respondents should indicate clearly if they wish all or part of their response to remain confidential to ORR. Otherwise, it is expected that they will be placed in the ORR library and on the ORR website, and may be quoted from by ORR. Where a representation or objection is made in confidence, it should be accompanied by a summary statement excluding the confidential information. This statement may be published, placed in the ORR library and on the ORR website and quoted from by ORR. ORR may also publish respondents' names in future documents or on its website, unless a respondent indicates that it wishes its name to be withheld. 8. Following the close of the consultation period on 2 March 2006, the ORR will consider any representations and objections which are duly made and not withdrawn. Subject to the consideration of any representations and objections, and to receipt of the necessary consent of licence and SNRP holders, ORR will proceed with the modifications. 9. Copies of this notice will be published on the ORR website (www.rail-reg.gov.uk) and will be placed in the ORR library. Sarah Straight Director, Rail Markets, Passengers and Freight Dated 2 February 2006 Office of Rail Regulation	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/3646-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 1, "total-input-tokens": 2297, "total-output-tokens": 910, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 3685, 1 ] ] }
f76a30ff68e64a7531bb901edf3593da7fa66559	Schedule 1 to the ORR notice of proposed modifications to licences/SNRPS dated 2 February 2006 The ORR is proposing to make the following modifications to the licences and SNRPs set out in column [1-4] below: 1. The text of the licences and SNRPs set out in column [4] below, held by the companies set out in columns [1] and [2] below, will be replaced by the text of the model licences and model SNRPs referred to in column [5] below. The model licences and model SNRPs mentioned in column [5] were published on the ORR website at http://www.rail-reg.gov.uk/server/show/nav.00100b001007 on 18 January 2006. 2. The company name (Column [1]) and company number (Column [2]) of the licence holder/SNRP holder will be inserted into the appropriate place in Part I - Scope of the new model licence/SNRP. 3. Where the licence was originally granted by the Secretary of State and it has not been transposed to an SNRP, references to the “Office of Rail Regulation” in Part I - Scope will be replaced with “the Secretary of State” and the first reference to “ORR” in Part II - Interpretation will be replaced with “the Office of Rail Regulation (“ORR”)”. In addition, for licences in which the Secretary of State currently retains revocation powers, references to “ORR” in Part IV - Revocation shall be replaced with references to “the Secretary of State”, references to “the appropriate franchising authority” shall be replaced with references to “ORR” and the phrase "where the licence holder is a franchise operator" shall be removed, wherever appropriate. Licences granted by the Secretary of State are identified with the symbol § in Column [3]. 4. The dates on which the original licence was granted and came into force shall be inserted into Part I – Scope of the new model licence/SNRP where appropriate. 5. The details of any Station or Light Maintenance Depot (LMD) operated that are included in a licence listed in column [4] shall be inserted into the Schedule of the new model licence listed in column [5], including any additions or deletions previously made in accordance with the licence. ## Schedule 1 \| Licence Holder \| Company number \| Date granted \| Type of licence/SNRP \| New model licence/SNRP \| \|-----------------------------------------------------\|----------------\|--------------\|----------------------\|------------------------\| \| Advenza Freight Limited \| 04156372 \| 20.10.2004 \| Non-passenger licence \| Model non-passenger licence \| \| \| \| 20.10.2004 \| Freight SNRP \| Model freight SNRP \| \| Alstom Transport Service Limited \| 02849471 \| 17.10.2000 \| LMD licence \| Model LMD licence \| \| (previously Alstom Train Services Limited) \| \| \| \| \| \| Amec Spie Rail (UK) Limited \| 02995525 \| 08.12.1995 \| Non-passenger licence \| Model non-passenger licence \| \| (previously Amec Rail Limited, then South West Infrastructure Maintenance Company Limited) \| \| \| \| \| \| \| \| 08.12 1995 \| Network licence \| Model network licence \| \| Amey Rail Limited \| 02995531 \| 08.12 1995 \| Non-passenger licence \| Model non-passenger licence \| \| (previously Western IMC Limited) \| \| 08.12 1995 \| Network licence \| Model network licence \| \| [1] Licence Holder \| [2] Company number \| [3] Date granted \| [4] Type of licence/SNRP \| [5] New model licence/SNRP \| \|----------------------------------------------------------------------------------\|--------------------\|------------------\|-----------------------------------\|--------------------------------------------\| \| Arriva Trains Wales/Trenau Arriva Cymru Limited \| 04337645 \| 03.12.2003 \| Passenger SNRP \| Model passenger SNRP \| \| \| \| 03.12.2003 \| LMD licence \| Model LMD licence \| \| \| \| 03.12.2003 \| Non-passenger licence \| Model non-passenger licence \| \| \| \| 03.12.2003 \| Freight SNRP \| Model freight SNRP \| \| \| \| 03.12.2003 \| Station licence \| Model station licence \| \| Balfour Beatty Rail Infrastructure Services Limited \| 00772439 \| 28.06.2000 \| Network licence \| Model network licence \| \| (previously Balfour Beatty Rail Maintenance Limited) \| \| \| \| \| \| Balfour Beatty Rail Plant Limited \| 01982627 \| 28.06.2000 \| Non-passenger licence \| Model non-passenger licence \| \| \| \| 28.06.2000 \| Network licence \| Model network licence \| \| Bombardier Transportation UK Limited \| 02235994 \| 13.09 1996 \| LMD licence \| Model LMD licence \| \| (previously ABB Daimler-Benz Transportation (Customer Support) Limited, then ABB \| \| \| \| \| \| Licence Holder \| Company number \| Date granted \| Type of licence/SNRP \| New model licence/SNRP \| \|-------------------------------------------------------------------------------\|----------------\|--------------\|------------------------------\|------------------------\| \| Daimler-Benz Transportation (UK) Limited, then DaimlerChrysler Rail Systems (UK) Limited \| \| \| \| \| \| c2c Rail Limited (previously LTS Rail Limited) \| 02938993 \| 14.12.1994 \| Passenger SNRP \| Model passenger SNRP \| \| \| \| 14.12.1994 \| LMD licence \| Model LMD licence \| \| \| \| 14.12.1994 \| Station licence \| Model station licence \| \| Carillion Construction Limited \| 00594581 \| 07.03.2005 \| Non-passenger licence \| Model non-passenger licence \| \| \| \| 07.03.2005 \| Network licence \| Model network licence \| \| Central Trains Limited \| 03007938 \| 10.11.1995 \| Passenger SNRP \| Model passenger SNRP \| \| \| \| 10.11.1995 \| LMD licence \| Model LMD licence \| \| \| \| 10.11.1995 \| Non-passenger licence \| Model non-passenger licence \| \| \| \| 10.11.1995 \| Freight SNRP \| Model freight SNRP \| \| \| \| 10.11.1995 \| Station licence \| Model station licence \| \| Licence Holder \| Company number \| Date granted \| Type of licence/SNRP \| New model licence/SNRP \| \|----------------------------------------\|----------------\|--------------\|----------------------------\|------------------------\| \| Chiltern Railway Company Limited \| 03007939 \| 28.04.2005 \| Passenger SNRP \| Model passenger SNRP \| \| \| \| 28.04.2005 \| LMD licence \| Model LMD licence \| \| \| \| 16.08.2005 \| Non-passenger licence \| Model non-passenger licence \| \| \| \| 16.08.2005 \| Freight SNRP \| Model freight SNRP \| \| \| \| 28.04.2005 \| Station licence \| Model station licence \| \| CrossCountry Trains Limited \| 03007937 \| 10.11.1995 \| Passenger SNRP \| Model passenger SNRP \| \| \| \| 10.11.1995 \| Non-passenger licence \| Model non-passenger licence \| \| \| \| 10.11.1995 \| Freight SNRP \| Model freight SNRP \| \| Licence Holder \| Company number \| Date granted \| Type of licence/SNRP \| New model licence/SNRP \| \|----------------\|----------------\|--------------\|----------------------\|-----------------------\| \| Direct Rail Services Limited \| 03020822 \| 12.09.1998 \| LMD \| Model LMD licence \| \| \| \| 14.09.1998 \| Non-passenger licence \| Model non-passenger licence \| \| \| \| 01.12.2000 \| Network \| Model network licence \| \| \| \| 14.09.1998 \| Freight SNRP \| Model freight SNRP \| \| Fastline Limited (previously Western Track Renewal Company Limited, then Jarvis Fastline Limited) \| 02995468 \| 12.10.1995 \| Non-passenger licence \| Model non-passenger licence \| \| \| \| 12.10.1995 \| Network licence \| Model network licence \| \| First Engineering Limited (previously Scotland Infrastructure Maintenance Company Limited) \| 02999826 \| 10.11.1995 \| Non-passenger licence \| Model non-passenger licence \| \| \| \| 10.11.1995 \| Network licence \| Model network licence \| \| Licence Holder \| Company number \| Date granted \| Type of licence/SNRP \| New model licence/SNRP \| \|----------------------------------------------------\|----------------\|--------------\|----------------------\|------------------------\| \| First Great Western Link Limited \| 04804687 \| 26.03.2004 \| Passenger SNRP \| Model passenger SNRP \| \| (previously First Thames Trains Limited) \| \| 26.03.2004 \| LMD licence \| Model LMD licence \| \| \| \| 26.03.2004 \| Non-passenger licence\| Model non-passenger licence \| \| \| \| 26.03.2004 \| Freight SNRP \| Model freight SNRP \| \| \| \| 26.03.2004 \| Station licence \| Model station licence \| \| First ScotRail Limited \| SC185018 \| 11.10.2004 \| Passenger SNRP \| Model passenger SNRP \| \| \| \| 11.10.2004 \| LMD licence \| Model LMD licence \| \| \| \| 11.10.2004 \| Non-passenger licence\| Model non-passenger licence \| \| \| \| 11.10.2004 \| Freight SNRP \| Model freight SNRP \| \| \| \| 11.10.2004 \| Station licence \| Model station licence \| \| First/Keolis Transpennine Limited \| 04113923 \| 28.01.2004 \| Passenger SNRP \| Model passenger SNRP \| \| Licence Holder \| Company number \| Date granted \| Type of licence/SNRP \| New model licence/SNRP \| \|----------------\|----------------\|--------------\|----------------------\|-----------------------\| \| Freightliner Limited (previously Freightliner (1995) Limited, Freightliners Limited) \| 03118392 \| 28.01.2004 \| Non-passenger licence \| Model non-passenger licence \| \| \| \| 28.01.2004 \| Freight SNRP \| Model freight SNRP \| \| \| \| 28.01.2004 \| Station licence \| Model station licence \| \| Freightliner Heavy Haul Limited \| 03831229 \| 09.11.1995 \| Non-passenger licence \| Model non-passenger licence \| \| \| \| 09.11.1995 \| Freight SNRP \| Model freight SNRP \| \| \| \| 14.02.2003 \| Non-passenger licence \| Model non-passenger licence \| \| \| \| 14.02.2003 \| Freight SNRP \| Model freight SNRP \| \| \| \| 14.02.2003 \| Network licence \| Model network licence \| \| Gatwick Express Limited \| 02912338§ \| 31.03.1994 \| Passenger SNRP \| Model passenger SNRP \| \| \| \| 31.03.1994 \| LMD licence \| Model LMD licence \| \| [1] Licence Holder \| [2] Company number \| [3] Date granted \| [4] Type of licence/SNRP \| [5] New model licence/SNRP \| \|--------------------------------------------------------\|--------------------\|------------------\|----------------------------------\|---------------------------\| \| GB Railfreight Limited \| 03707899 \| 04.07.2000 \| Non-passenger licence \| Model non-passenger licence \| \| \| \| 04.07.2000 \| Freight SNRP \| Model freight SNRP \| \| GrantRail Limited \| 03184313 \| 18.01.2001 \| Non-passenger licence \| Model non-passenger licence \| \| Great Central Railway (Nottingham) Limited \| 04277779 \| 15.03.2001 \| Network licence \| Model network licence \| \| Great North Eastern Railway Limited (previously Intercity East Coast Limited) \| 02938984 \| 31.03.1995 \| Passenger SNRP \| Model passenger SNRP \| \| \| \| 31.03.1995 \| LMD licence \| Model LMD licence \| \| \| \| 31.03.1995 \| Non-passenger licence \| Model non-passenger licence \| \| \| \| 31.03.1995 \| Freight SNRP \| Model freight SNRP \| \| \| \| 31.03.1995 \| Station licence \| Model station licence \| \| Licence Holder \| Company number \| Date granted \| Type of licence/SNRP \| New model licence/SNRP \| \|----------------------------------------------------\|----------------\|--------------\|----------------------\|------------------------\| \| Great Western Trains Company Limited \| 02938992 \| 14.12.1994 \| Passenger SNRP \| Model passenger SNRP \| \| \| \| 14.12.1994 \| LMD licence \| Model LMD licence \| \| \| \| 14.12.1994 \| Non-passenger licence\| Model non-passenger licence \| \| \| \| 14.12.1994 \| Freight SNRP \| Model freight SNRP \| \| \| \| 14.12.1994 \| Station licence \| Model station licence \| \| Harsco Track Technologies Limited \| 00977100 \| 13.02.2004 \| Non-passenger licence\| Model non-passenger licence \| \| Hull Trains Limited \| 03715410 \| 14.09.2000 \| Passenger SNRP \| Model passenger SNRP \| \| Jarvis Rail Limited (previously Northern Infrastructure Maintenance Company Limited) \| 02995419 \| 02.02.1996 \| Non-passenger licence\| Model non-passenger licence \| \| \| \| 02.02.1996 \| Network licence \| Model network licence \| \| Licence Holder \| Company number \| Date granted \| Type of licence/SNRP \| New model licence/SNRP \| \|----------------------------------------------------\|----------------\|--------------\|----------------------\|------------------------\| \| London & North Western Railway Company Limited \| 02880012 \| 05.03.1999 \| LMD licence \| Model LMD licence \| \| London Eastern Railway Limited \| 04955356 \| 26.03.2004 \| Passenger SNRP \| Model passenger SNRP \| \| \| \| 26.03.2004 \| LMD licence \| Model LMD licence \| \| \| \| 26.03.2004 \| Non-passenger licence\| Model non-passenger licence \| \| \| \| 26.03.2004 \| Freight SNRP \| Model freight SNRP \| \| \| \| 26.03.2004 \| Station licence \| Model station licence \| \| Maintrain Limited \| 02918124 \| 31.12.1998 \| LMD licence \| Model LMD licence \| \| Licence Holder \| Company number \| Date granted \| Type of licence/SNRP \| New model licence/SNRP \| \|-------------------------------------------------------------------------------\|----------------\|--------------\|----------------------\|------------------------\| \| Midland Main Line Limited \| 03007934 \| 31.03.1995 \| Passenger SNRP \| Model passenger SNRP \| \| \| \| 31.03.1995 \| Non-passenger licence\| Model non-passenger licence \| \| \| \| 31.03.1995 \| Freight SNRP \| Model freight SNRP \| \| \| \| 31.03.1995 \| Station licence \| Model station licence \| \| New Southern Railway Limited (previously Network Southcentral, then South Central Limited, then Connex South Central Limited) \| 03010919 \| 31.03.1995 \| Passenger SNRP \| Model passenger SNRP \| \| \| \| 31.03.1995 \| LMD licence \| Model LMD licence \| \| \| \| 31.03.1995 \| Station licence \| Model station licence \| \| Northern Rail Limited \| 04619954 \| 26.11.2004 \| Passenger SNRP \| Model passenger SNRP \| \| \| \| 26.11.2004 \| LMD licence \| Model LMD licence \| \| \| \| 26.11.2004 \| Non-passenger licence\| Model non-passenger licence \| \| \| \| 26.11.2004 \| Freight SNRP \| Model freight SNRP \| \| [1] Licence Holder \| [2] Company number \| [3] Date granted \| [4] Type of licence/SNRP \| [5] New model licence/SNRP \| \|--------------------------------------------------------\|--------------------\|------------------\|--------------------------\|---------------------------\| \| Pre Metro Operations Limited \| 03867712 \| 03.04.2004 \| Passenger licence \| Model passenger licence \| \| \| \| 03.04.2004 \| LMD licence \| Model LMD licence \| \| Pro-Rail Limited \| 01314819 \| 18.01.2001 \| LMD licence \| Model LMD licence \| \| Seco-Rail Limited \| 02805908 \| 27.01.2005 \| Non-passenger licence \| Model non-passenger licence \| \| Serco Railtest Limited (previously Railtest Limited) \| 03114741 \| 01.02.2005 \| Non-passenger licence \| Model non-passenger licence \| \| \| \| 01.02.2005 \| Network licence \| Model network licence \| \| Siemens Plc \| 00727817 \| 05.03.2003 \| LMD licence \| Model LMD licence \| \| Silverlink Train Services Limited (previously North London Railways Limited) \| 03007935 \| 10.11.1995 \| Passenger SNRP \| Model passenger SNRP \| \| \| \| 10.11.1995 \| LMD licence \| Model LMD licence \| \| \| \| 10.11.1995 \| Station licence \| Model station licence \| \| South West Trains Limited \| 02938995 \| 31.03.2005 \| Passenger SNRP \| Model passenger SNRP \| \| \| \| 31.03.2005 \| LMD licence \| Model LMD licence \| \| Licence Holder \| Company number \| Date granted \| Type of licence/SNRP \| New model licence/SNRP \| \|----------------------------------------\|----------------\|--------------\|----------------------\|------------------------\| \| Thameslink Rail Limited \| 03013232 \| 31.03.2005 \| Non-passenger licence \| Model non-passenger licence \| \| \| \| 31.03.2005 \| Freight SNRP \| Model freight SNRP \| \| \| \| 31.03.2005 \| Station licence \| Model station licence \| \| Tyne and Wear Passenger Transport \| Public body \| 10.11.1995 \| Passenger SNRP \| Model passenger SNRP \| \| Executive \| \| 10.11.1995 \| LMD licence \| Model LMD licence \| \| \| \| 10.11.1995 \| Station licence \| Model station licence \| \| \| \| 15.03.2002 \| Passenger licence \| Model passenger licence \| \| Licence Holder \| Company number \| Date granted \| Type of licence/SNRP \| New model licence/SNRP \| \|--------------------------------------------------------------------------------\|----------------\|--------------\|----------------------\|------------------------\| \| Wales & West Passenger Trains Limited (previously South Wales & West Railway Limited) \| 03011029 \| 21.07.1995 \| Passenger SNRP \| Model passenger SNRP \| \| \| \| 21.07.1995 \| LMD licence \| Model LMD licence \| \| \| \| 21.07.1995 \| Non-passenger licence\| Model non-passenger licence \| \| \| \| 21.07.1995 \| Freight SNRP \| Model freight SNRP \| \| \| \| 21.07.1995 \| Station licence \| Model station licence \| \| Wensleydale Railway PLC \| 04093919 \| 23.04.2003 \| Passenger licence \| Model passenger Licence \| \| \| \| 23.04.2003 \| LMD licence \| Model LMD licence \| \| \| \| 23.04.2003 \| Non-passenger licence\| Model non-passenger licence \| \| West Anglia Great Northern Railway Limited \| 03007944 \| 8.12.1995 \| Passenger SNRP \| Model passenger SNRP \| \| \| \| 8.12.1995 \| LMD licence \| Model LMD licence \| \| \| \| 8.12.1995 \| Non-passenger licence\| Model non-passenger licence \| \| [1] Licence Holder \| [2] Company number \| [3] Date granted \| [4] Type of licence/SNRP \| [5] New model licence/SNRP \| \|--------------------------------------------------------\|--------------------\|------------------\|--------------------------\|---------------------------\| \| \| \| \| \| \| \| \| \| 8.12.1995 \| Freight SNRP \| Model freight SNRP \| \| \| \| 8.12.1995 \| Station licence \| Model station licence \| \| West Coast Railway Company Limited \| 03066109 \| 11.05.2005 \| Non-passenger licence \| Model non-passenger licence \| \| \| \| 11.05.2005 \| Freight SNRP \| Model freight SNRP \| \| West Coast Traincare Limited \| 03602374 \| 19.02.1999 \| LMD licence \| Model LMD licence \| \| West Coast Trains Limited (previously Intercity West Coast Limited) \| 03007940 \| 28.04.1995 \| Passenger SNRP \| Model passenger SNRP \| \| \| \| 28.04.1995 \| LMD licence \| Model LMD licence \| \| \| \| 28.04.1995 \| Non-passenger licence \| Model non-passenger licence \| \| \| \| 28.04.1995 \| Freight SNRP \| Model freight SNRP \| \| \| \| 28.04.1995 \| Station licence \| Model station licence \|	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/3647-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 16, "total-input-tokens": 26562, "total-output-tokens": 6725, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 2104, 1 ], [ 2104, 3604, 2 ], [ 3604, 6281, 3 ], [ 6281, 8521, 4 ], [ 8521, 9822, 5 ], [ 9822, 10758, 6 ], [ 10758, 12524, 7 ], [ 12524, 13508, 8 ], [ 13508, 15329, 9 ], [ 15329, 16866, 10 ], [ 16866, 18093, 11 ], [ 18093, 20258, 12 ], [ 20258, 22426, 13 ], [ 22426, 23541, 14 ], [ 23541, 25695, 15 ], [ 25695, 27715, 16 ] ] }
b9807536430f6d3536a74e23c7fcbc4e3db9b6b7	Schedule 2 to the ORR notice of proposed modifications to licences/SNRPS dated 2 February 2006 ORR is proposing to make the following modifications to the licences and SNRPs set out in column [1-4] below: 1. The text of the licences and SNRPs set out in column [4] below, held by the companies set out in columns [1] and [2] below, will be replaced by the text of the model licences and model SNRPs referred to in column [5] below. The model licences and model SNRPs mentioned in column [5] were published on the ORR website at http://www.rail-reg.gov.uk/server/show/nav.00100b001007 on 18 January 2006. 2. The company name (column [1]) and company number (column [2]) of the licence holder/SNRP holder will be inserted into the appropriate place in Part I - Scope of the new model licence/SNRP. 3. Where the licence was originally granted by the Secretary of State and it has not been transposed to an SNRP, references to the “Office of Rail Regulation” in Part I - Scope will be replaced with “the Secretary of State” and the first reference to “ORR” in Part II - Interpretation will be replaced with “the Office of Rail Regulation (“ORR”)”. In addition, for licences in which the Secretary of State currently retains revocation powers, references to “ORR” in Part IV - Revocation shall be replaced with references to “the Secretary of State”, references to “the appropriate franchising authority” shall be replaced with references to “ORR” and the phrase “where the licence holder is a franchise operator” shall be removed, wherever appropriate. Licences granted by the Secretary of State are identified with the symbol § in column [3]. 4. The dates on which the original licence was granted and came into force shall be inserted into Part I – Scope of the new model licence/SNRP where appropriate. 5. The details of any Station or Light Maintenance Depot (LMD) operated that are included in a licence listed in column [4] shall be inserted into the Schedule of the new model licence listed in column [5], including any additions or deletions previously made in accordance with the licence. 6. The further specific modifications listed in column [6] shall also be applied. In column [6], a reference to an “old” condition is a reference to a condition in the licence/SNRP listed in column [4]. \| Licence Holder \| Company number \| Date Granted \| Type of Licence \| New model licence \| Further specific changes \| \|--------------------------------\|----------------\|--------------\|-----------------\|-------------------\|----------------------------------------------------------------------------------------------------------------------------------------------------------\| \| Direct Rail Services Limited \| 03020822 \| 09.10.1997 \| Passenger SNRP (Charter) \| Model passenger SNRP \| Omit model Condition 3: Through Tickets and Network Benefits. Replace model Condition 4: Timetabling with old condition 12: Timetabling. In this Condition replace “Railtrack PLC” with “Network Rail”. Omit model Condition 7: Liaison with the RPC and LTUC. Insert old Condition 10: Restrictions on Certain Activities by the Licence Holder as Condition 17: Restrictions on Activities. In this Condition replace “regulator” with “ORR” and “tram” with "train". Condition 10 was inserted into the original licence on 9 October 1997. \| \| Licence Holder \| Company number \| Date Granted \| Type of Licence \| New model licence \| Further specific changes \| \|----------------\|----------------\|--------------\|-----------------\|-------------------\|-------------------------\| \| English Welsh & Scottish Railway Limited (previously Transrail Freight Limited) \| 02938988 \| 31.03.1995 \| Non-passenger licence \| Model non-passenger licence \| Insert old Condition 11: Information on Rolling stock and Prices as Condition 19\ Insert old Condition 12: Transactions entered into by the licence holder or a relevant business with or for the benefit of associated companies or other businesses or activities of the licence holder as Condition 20: Transactions. \| \| Freight SNRP \| \| \| Model freight SNRP \| \| Insert old Condition 11: Information on Rolling stock and Prices as Condition 19\ Insert old Condition 12: Transactions entered into by the licence holder or a relevant business with or for the benefit of associated companies or other businesses or activities of the licence holder as Condition 20: Transactions \| \| Licence Holder \| Company number \| Date Granted \| Type of Licence \| New model licence \| Further specific changes \| \|----------------\|----------------\|--------------\|-----------------\|-------------------\|-------------------------\| \| \| \| 31.03.1995 \| Network licence \| Model network licence \| Insert old Condition 11: Information on Rolling stock and Prices as Condition 19. Insert old Condition 12: Transactions entered into by the licence holder or a relevant business with or for the benefit of associated companies or other businesses or activities of the licence holder as Condition 20: Transactions \| \| [1] Licence Holder \| [2] Company number \| [3] Date Granted \| [4] Type of Licence \| [5] New model licence \| [6] Further specific changes \| \|--------------------\|---------------------\|------------------\|---------------------\|-----------------------\|-----------------------------\| \| EUROSTAR (UK) Limited (previously European Passenger Services Limited) \| 02462001 \| 24.09.1998 (amended 28.11.2005) \| Passenger SNRP \| Model passenger SNRP \| Omit model Condition 3: Through Tickets and Network Benefits.\ Omit model Condition 4: Timetabling.\ Replace model Condition 5: Provision of Services for Disabled People, with old Condition 3: Provision of Services for Disabled People.\ Replace model Condition 6: Complaints Procedure, with old Condition 4: Complaints Handling Procedure.\ Omit model Condition 8: RSSB Membership.\ Omit model Condition 9: Railway Group Standards. \| \| Licence Holder \| Company number \| Date Granted \| Type of Licence \| New model licence \| Further specific changes \| \|----------------\|----------------\|--------------\|-----------------\|-------------------\|--------------------------\| \| \| \| 31.03.1994 § \| LMD licence \| Model LMD licence \| Replace model Condition 12: Change of Control with old Condition 10: Change of Control.\ Omit model Condition 13: Non-Discrimination\ Insert at end of model paragraph 2 in Part 1 – Scope: “…or until 29 July 2052, whichever is the sooner.”\ Omit paragraph 3 from model licence Part IV - Revocation \| \| \| \| 31.03.1994 § \| Station licence \| Model station licence \| Replace model Condition 12: Change of Control with old Condition 12: Change of Control.\ Omit model Condition 13: Non-Discrimination.\ Omit model Condition 15: Co-operation with Transport for London.\ Insert at end of model paragraph 2 in Part 1 – Scope: “…or until 29 July 2052, whichever is the sooner.”\ Omit paragraph 3 from model licence Part IV - Revocation \| \| [1] Licence Holder \| [2] Company number \| [3] Date Granted \| [4] Type of Licence \| [5] New model licence \| [6] Further specific changes \| \|--------------------\|---------------------\|------------------\|---------------------\|-----------------------\|-----------------------------\| \| EWSI Limited (previously Railfreight Distribution Limited) \| 03232475 \| 27.08.1999 (amended 28.11.2005) \| Freight SNRP \| Model freight SNRP \| Insert old Condition 11: Information on Rolling stock and Prices as Condition 19: Information on Rolling stock and Prices. Insert old Condition 12: Transactions as Condition 20: Transactions \| \| \| \| 11.10.1996 \| Non-passenger licence \| Model non-passenger licence \| Insert old Condition 12: Information on Rolling stock and Prices as new Condition 19: Information on Rolling stock and Prices. Insert old Condition 13: Transactions entered into by the licence holder or a relevant business with or for the benefit of associated companies or other businesses or activities of the licence holder as Condition 20: Transactions. \| \| Licence Holder \| Company number \| Date Granted \| Type of Licence \| New model licence \| Further specific changes \| \|----------------\|----------------\|--------------\|-----------------\|-------------------\|--------------------------\| \| \| \| 11.10.1996 \| Freight SNRP \| Model freight SNRP\| Insert old Condition 12: Information on Rolling stock and Prices as new Condition 19: Information on Rolling stock and Prices. Insert old Condition 13: Transactions entered into by the licence holder or a relevant business with or for the benefit of associated companies or other businesses or activities of the licence holder as Condition 20: Transactions. \| \| \| \| 11.10.1996 \| Network licence \| Model network licence \| Insert old Condition 11: Information on Rolling stock and Prices as new Condition 19: Information on Rolling stock and Prices. Insert old Condition 12: Transactions entered into by the licence holder or a relevant business with or for the benefit of associated companies or other businesses or activities of the licence holder as Condition 20: Transactions. \| \| Licence Holder \| Company number \| Date Granted \| Type of Licence \| New model licence \| Further specific changes \| \|----------------\|----------------\|--------------\|-----------------\|-------------------\|--------------------------\| \| FM Rail Limited (previously Merlin Rail) \| 03268963 \| 08.07.2002 \| Passenger SNRP (Charter) \| Model passenger SNRP \| Omit model Condition 3: Through Tickets and Network Benefits. Omit model Condition 4: Timetabling. Omit model Condition 7: Liaison with the RPC and LTUC. Insert old Condition 9: Restrictions on Certain Activities by the Licence Holder as Condition 17: Restrictions on Activities. In this Condition replace “regulator” with “ORR”. \| \| Glasgow Prestwick Airport Limited (previously PIK Limited, Prestwick International Airport Limited and Glasgow Prestwick International Airport Limited) \| SC135362 \| 02.09.1994 \| Station licence \| Model station licence \| Omit model Condition 15: Co-operation with Transport for London. \| \| Heathrow Express Operating Company Limited \| 03145133 \| 15.07.1997 § \| Passenger licence \| Model passenger licence \| Omit model Condition 3: Through Tickets and Network Benefits. Omit model Condition 7: Liaison with the RPC \| \| [1] Licence Holder \| [2] Company number \| [3] Date Granted \| [4] Type of Licence \| [5] New model licence \| [6] Further specific changes \| \|--------------------\|---------------------\|------------------\|---------------------\|-----------------------\|-----------------------------\| \| \| \| \| \| \| and LTUC. \| \| \| \| \| \| \| Insert old Condition 14: Assignment as \| \| \| \| \| \| \| Condition 18: Assignment \| \| \| \| \| \| \| Replace model Condition 12: Change of \| \| \| \| \| \| \| Control with old Condition 15: Change of \| \| \| \| \| \| \| Control. \| \| \| \| \| \| \| Insert old Condition 16: Non-stop Services as \| \| \| \| \| \| \| Condition 21: Non-stop Services \| \| Licence Holder \| Company number \| Date Granted \| Type of Licence \| New model licence \| Further specific changes \| \|------------------------\|----------------\|--------------\|-----------------\|-------------------\|----------------------------------------------------------------------------------------------------------------------------------------------------------\| \| Island Line Limited \| 03007942 \| 08.12.1995 \| Passenger Licence \| Model passenger licence \| Replace model Condition 4: Timetabling with old Condition 11: Timetabling. In that Condition replace “Railtrack PLC” with “Network Rail”. Omit model Condition 8: RSSB Membership. Omit model Condition 9: Railway Group Standards. \| \| \| \| 08.12.1995 \| LMD Licence \| Model LMD licence \| Omit model Condition 9: Railway Group Standards. Omit paragraph 3 from model licence Part IV - Revocation \| \| \| \| 08.12.1995 \| Network licence \| Model network licence \| Omit model Condition 9: Railway Group Standards. Insert old Condition 7: Planned Modifications to the Network as Condition 22: Planned Modifications to the Network. Replace all text in the model Schedule with: “1. Any network on the Isle of Wight” \| \| Licence Holder \| Company number \| Date Granted \| Type of Licence \| New model licence \| Further specific changes \| \|--------------------------------------\|----------------\|--------------\|-----------------\|-------------------\|------------------------------------------------------------------------------------------\| \| Merseyrail Electrics 2002 Limited \| 04356933 \| 08.12.1995 \| Station Licence \| Model station licence \| Omit model Condition 9: Railway Group Standards. Omit paragraph 3 from model licence Part IV - Revocation \| \| \| \| 17.07.2003 \| Passenger Licence \| Model passenger licence \| Insert old Condition 18: Assignment as Condition 18: Assignment. In that Condition insert the following text into Paragraph 4 “…[awarded by] Merseyside Passenger Transport Executive or [the assignee]…” \| \| \| \| 17.07.2003 \| LMD Licence \| Model LMD licence \| Insert old Condition 14: Assignment as Condition 18 Assignment. In that Condition insert the following text into Paragraph 4 “…[awarded by] Merseyside Passenger Transport Executive or [the assignee]…” \| \| \| \| 17.07.2003 \| Non-passenger licence \| Model non-passenger licence \| Insert old Condition 12: Assignment as new Condition 18: Assignment. In that Condition insert the following text into Paragraph 4 “…[awarded by] Merseyside Passenger Transport Executive or [the assignee]…” \| \| Licence Holder \| Company number \| Date Granted \| Type of Licence \| New model licence \| Further specific changes \| \|----------------\|----------------\|--------------\|-----------------\|-------------------\|--------------------------\| \| \| \| 17.07.2003 \| Station licence \| Model station licence \| Insert old Condition 19: Assignment as Condition 18: Assignment. In that Condition insert the following text into Paragraph 4 “…[awarded by] Merseyside Passenger Transport Executive or [the assignee]…” Insert old Condition 6: Display of information and signing as Condition 24: Display of information and Signing. In that Condition replace “approved by the Secretary of State” with “required by the Secretary of State”. \| \| \| \| 23.12.2005 \| Liverpool South Parkway Station Licence \| Model station licence \| Insert old Condition 18: Assignment as Condition 18: Assignment. Insert old Condition 5: Display of information and signing as Condition 24: Display of information and Signing \| \| Licence Holder \| Company number \| Date Granted \| Type of Licence \| New model licence \| Further specific changes \| \|--------------------------------\|----------------\|--------------\|-----------------\|-------------------\|------------------------------------------------------------------------------------------\| \| Rail Express Systems Limited \| 02938991 \| 31.03.1995 \| Passenger SNRP (Charter) \| Model passenger SNRP \| Omit model Condition 3: Through Tickets and network Benefits. \| \| \| \| \| \| \| Omit model Condition 4: Timetabling. \| \| \| \| \| \| \| Omit model Condition 6: Complaints Procedure. \| \| \| \| \| \| \| Omit model Condition 7: Liaison with the RPC and LTUC. \| \| \| \| \| \| \| Insert old Condition 9: Restrictions on Certain Activities by the Licence Holder as Condition 17: Restrictions on Activities. In that Condition replace “regulator” with “ORR”. \| \| \| \| \| \| \| Insert old Condition 13: Information on Rolling Stock and Prices as Condition 19: Information on Rolling Stock and Prices. \| \| \| \| \| \| \| Insert old Condition 14: Transactions entered into by the licence holder or a relevant business with or for the benefit of associated companies or other businesses or activities of the licence holder as Condition 20: Transactions. \| \| [1] Licence Holder \| [2] Company number \| [3] Date Granted \| [4] Type of Licence \| [5] New model licence \| [6] Further specific changes \| \|--------------------\|---------------------\|------------------\|---------------------\|-----------------------\|-----------------------------\| \| \| \| 31.03.1995 \| Non-passenger licence \| Model non-passenger licence \| Insert old Condition 12: Information on Rolling Stock and Prices as new Condition 19: Information on Rolling Stock and Prices. Insert old Condition 13: Transactions entered into by the licence holder or a relevant business with or for the benefit of associated companies or other businesses or activities of the licence holder as Condition 20: Transactions. \| \| \| \| 31.03.1995 \| Freight SNRP \| Model freight SNRP \| Insert old Condition 12: Information on Rolling stock and Prices as new Condition 19: Information on Rolling Stock and Prices. Insert old Condition 13: Transactions entered into by the licence holder or a relevant business with or for the benefit of associated companies or other businesses or activities of the licence holder as Condition 20: Transactions. \| \| Licence Holder \| Company number \| Date Granted \| Type of Licence \| New model licence \| Further specific changes \| \|----------------\|----------------\|--------------\|-----------------\|-------------------\|--------------------------\| \| Siemens Plc \| 00727817 \| 30.11.2005 \| LMD Licence \| Model LMD licence \| Insert old Condition 13: Assignment as Condition 18: Assignment. \| \| Tube Lines Limited (previously Infraco JNP Limited) \| 03923425 \| 10.09.2002 \| Non-passenger licence \| Model non-passenger licence \| Omit model Condition 8: RSSB Membership. \| \| Tyne and Wear Passenger Transport Executive \| Public body \| 26.03.2002 \| Station licence \| Model station licence \| Omit model Condition 15: Co-operation with Transport for London. \| \| Licence Holder \| Company number \| Date Granted \| Type of Licence \| New model licence \| Further specific changes \| \|----------------------------------------\|----------------\|--------------\|-----------------\|-------------------\|----------------------------------------------------------------------------------------------------------------------------------------------------------\| \| Wensleydale Railway Plc \| 04093919 \| 23.04.2003 \| Network licence \| Model network licence \| Insert old Condition 5: Stewardship of the Licence Holder's Network as Condition 23: Stewardship. Insert old Condition 11: Restriction on Use of Certain Information as Condition 26: Restriction on Use of Certain Information. \| \| \| \| 23.04.2003 \| Station licence \| Model station licence \| Omit model Condition 15: Co-operation with Transport for London. \| \| West Coast Railway Company Limited \| 03066109 \| 17.06.1998 \| Passenger SNRP (Charter) \| Model passenger SNRP \| Omit model Condition 3: Through Tickets and Network Benefits. Replace model Condition 4: Timetabling with old Condition 13: Timetabling. In that Condition replace “Railtrack PLC” with “Network Rail”. Insert old Condition 11: Restrictions on Certain Activities by the Licence Holder as Condition 17: Restrictions on Activities. In that Condition replace “regulator” with “ORR” and “tram” with “train”. \|	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/3648-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 18, "total-input-tokens": 29483, "total-output-tokens": 5221, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 2304, 1 ], [ 2304, 3471, 2 ], [ 3471, 4539, 3 ], [ 4539, 5177, 4 ], [ 5177, 6055, 5 ], [ 6055, 7141, 6 ], [ 7141, 8191, 7 ], [ 8191, 9325, 8 ], [ 9325, 10529, 9 ], [ 10529, 11984, 10 ], [ 11984, 13445, 11 ], [ 13445, 15047, 12 ], [ 15047, 16089, 13 ], [ 16089, 18140, 14 ], [ 18140, 19370, 15 ], [ 19370, 20119, 16 ], [ 20119, 21858, 17 ], [ 21858, 21858, 18 ] ] }
f59b5e858db88d8a4c6983ee085aea8e7db677e2	\| Regiment \| Names \| Acts of Courage for which recommended \| \|------------------\|--------------------------------------------\|---------------------------------------\| \| Royal Engineers \| Lieutenant (now Captain) and Brevet Major J. R. M. Chard \| For their gallant conduct at the defence of Rorke's Drift, on the occasion of the attack by the Zulus, as recorded against their names, viz.: — \| \| 2nd Battalion 24th Regiment \| Lieutenant (now Captain and Brevet Major) G. Bromhead \| \| \| 2nd Battalion 24th Regiment \| Private John Williams \| Private John Williams was posted with Private Joseph Williams, and Private William Harrigan, 1st Battalion 24th Regiment, in a distant room of the hospital, which they held for more than an hour, so long as they had a round of ammunition left; as communication was for the time cut off, the Zulus were enabled to advance and burst open the door; they dragged out Private Joseph Williams and two of the patients, and assailed them. Whilst the Zulus were occupied with the slaughter of these men a bull took place, during which Private John Williams, who, with two patients, were the only men now left alive in this ward, succeeded in knocking a hole in the partition, and in taking the two patients into the next ward, where he found Private Hook. \| \| 2nd Battalion 24th Regiment \| Private Henry Hook \| These two men together, one man working whilst the other fought and held the enemy at bay with his bayonet, broke through three more partitions, and were thus enabled to bring eight patients through a small window into the inner line of defence. \| \| 2nd Battalion 24th Regiment \| Private William Jones and Private Robert Jones \| In another ward, facing the hill, Private William Jones and Private Robert Jones defended the post to the last, until six out of the seven patients it contained had been removed. The seventh, Sergeant Maxwell, 2nd Battalion 24th Regiment, was delirious from fever. Although they had previously dressed him, they were unable to induce him to move. When Private Robert Jones returned to endeavour to carry him away, he found him being stabbed by the Zulus as he lay on his bed. \| \| 2nd Battalion 24th Regiment \| Corporal William Allen and Private Frederick Hitchcock \| It was chiefly due to the courageous conduct of these men that communication with the hospital was kept up at all. Holding together at all costs a most dangerous post, raked in reverse by the enemy's fire from the hill, they were both severely wounded, but, their determined conduct enabled the patients to be withdrawn from the hospital, and when incapacitated by their wounds from fighting, they continued, as soon as their wounds had been dressed, to serve out ammunition to their comrades during the night. \| MEMORANDUM. Lieutenant McVille, of the 1st Battalion 24th Foot, on account of the gallant efforts made by him to save the Queen's Colour of his Regiment after the disaster at Isandlwana, and also Lieutenant Coghill, 1st Battalion 24th Foot, on account of his heroic conduct in endeavouring to save his brother officer's life, would have been recommended to Her Majesty for the Victoria Cross had they survived.	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/3649-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 2, "total-input-tokens": 2141, "total-output-tokens": 775, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 0, 1 ], [ 0, 3212, 2 ] ] }
8491c3f9886a0fdc33e29f8df855ea42f7e671df	UK Life Sciences Strength & Opportunity 2017 Headlines 5,649 Businesses Industry Characteristics Biopharmaceuticals - 49% industry employment - 68% industry turnover Medical Technology - 51% industry employment - 32% industry turnover What is the Life Sciences Industry? Businesses involved in developing and/or producing their own pharmaceutical or medtech products, including digital health, for human health purposes. Includes supply chain and specialist service sector. Distribution of Employment Across UK Year-On-Year Growth - 2016 to 2017 Overall the life science industry increased employment by 5,700, turnover by £5.9bn and created 446 new businesses Service and Supply Chain An essential cluster of specialist suppliers supports the Life Science Industry in the UK. Does not include non-life science businesses. For More Information https://www.gov.uk/government/collections/bioscience-and-health-technology-database-annual-reports	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/3650-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 1, "total-input-tokens": 2718, "total-output-tokens": 264, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 954, 1 ] ] }
cf67dbee7440bddcb4b5b07efd360515dd332f91	UK Life Sciences Bioscience and Health technology Sector Statistics 2018 Headlines 5,870 Businesses Industry Characteristics Biopharmaceuticals 49% industry employment 68% industry turnover Medical Technology 51% industry employment 32% industry turnover What is the Life Sciences Industry? Businesses involved in developing and/or producing their own pharmaceutical or medtech products, including digital health, for human health purposes. Includes supply chain and specialist service sector. Distribution of Employment Across UK have operations in the UK. Together these businesses employ 25% of industry total and account for 38% of turnover Industry Employment 77% Large Companies 23% SMEs Industry Turnover 90% Large Companies 10% SMEs Largest Segments by Employment 1. Small Molecules 2. Digital Health 3. In vitro diagnostics Top 3 segments account for 28% of all employment in the Core life science industry Largest Segments by Turnover 1. Small Molecules 2. In vitro diagnostics 3. Therapeutic Proteins Top 3 segments account for 43% of all turnover in the Core life science industry Year-On-Year Growth - 2009 to 2018 +8% Employment Overall the life science industry increased employment by 17,400 +2.8% Turnover and turnover by £2.0bn Service and Supply Chain An essential cluster of specialist suppliers supports the Life Science Industry in the UK. Does not include non-life science businesses. 2,580 businesses 87,500 employees £21.7bn turnover 35% of industry employment 29% of industry turnover For More Information https://www.gov.uk/government/collections/bioscience-and-health-technology-database-annual-reports	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/3651-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 1, "total-input-tokens": 3350, "total-output-tokens": 473, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 1658, 1 ] ] }
577429ad81d1daf84d42bf286d1919f41a6b10e6	Links between access and re-use Explaining the interface between access to and re-use of public sector information, and providing simple wording about re-use for responses to access requests Version control: V1 – July 2015 The National Archives © Crown copyright 2015 You may use this information (excluding logos) free of charge in any format or medium, under the terms of the Open Government Licence. You can view the OGL or email enquiries to [email protected] This publication is available for download at nationalarchives.gov.uk Contents The distinction between access and re-use ................................................................. 3 Permission to re-use information .................................................................................. 3 Access and re-use requests .......................................................................................... 4 Access and re-use complaints and appeals .................................................................. 4 Scope of re-use ............................................................................................................. 4 Copyright notices ......................................................................................................... 5 Contact details ............................................................................................................. 6 The distinction between access and re-use Access to most public sector information is provided for by the Freedom of Information Acts¹ and by the Environmental Information Regulations². Access to personal information is provided under the Data Protection Act, although the information may belong to the public sector body holding it, rather than the subject. Providing information under access legislation does not mean that the recipient has an automatic right to re-use it (for example to publish it or adapt it in some way). If information supplied in response to an access request, and it is protected by copyright or other restrictions, then permission to re-use it will be required. The Re-use of Public Sector Information Regulations 2015 (the 2015 Regulations) provide a framework for obtaining permission to re-use, but not to access, information. The 2015 Regulations do not apply unless the information has already been provided to a requester, or the information is otherwise accessible to the applicant (for example if it is already published online). Permission to re-use information A public sector body can usually provide information received from another source in response to an access request, but it may not be able to give permission to re-use that information. Permission must be given by the copyright owner of the information, who may not necessarily be the body holding the information (e.g., in a register or an archive). The 2015 Regulations do not apply to information where copyright is owned by a third party. If you want to re-use information held by a public sector body but where the copyright is owned by someone else, you must request permission from the copyright owner. If you re-use without permission, you will infringe the owner’s copyright. Most material created by central government departments enjoys Crown copyright status, but is licenced under the Open Government Licence (the OGL) and so is automatically available for re-use where it is accessible. The National Archives is responsible for Crown copyright and our website gives details on dealing with Crown copyright material. Non-Crown public sector bodies may use other types of licences, for example the Non-commercial Government Licence, and licensing information should be available on the body’s website. Resources from The National Archives About PSI (public sector information) Copyright and re-use Licensing for re-use UK Government Licensing Framework Resources for organisations from the Information Commissioner’s Office Guide to Freedom of Information Guide to the Environmental Information Regulations ¹ Freedom of Information Act 2000 and Freedom of Information (Scotland) 2002 ² Environmental Information Regulations 2004 and Environmental Information (Scotland) Regulations 2004 Access and re-use requests Access requests should be made according to the requirements of the relevant access legislation. The public sector body may assume that re-use of the information is not intended unless the applicant specifies otherwise. Re-use requests for information that has not already been provided or is not otherwise already accessible should be handled as access requests. The public sector body must meet the requirements of access legislation, including response times. Only when the information is provided will it become eligible for re-use. At that point the re-use element of the request will become a valid re-use request. Re-use requests for information that has already been provided or is otherwise already accessible should be made according to the 2015 Regulations. Access and re-use complaints and appeals Complaints about access or about the handling of access requests should be made first to the public sector body so it can try to resolve the complaint itself. If the complaint cannot be resolved, the requester can take it to the Information Commissioner’s Office (ICO). The ICO will issue a decision notice if it believes the public sector body did not fulfil its responsibilities under access legislation in the correct manner. Complaints about re-use under the 2015 Regulations should be made first to the public sector body so it can try to resolve the complaint itself. If the complaint cannot be resolved by the public sector body, the re-user may take their complaint to the ICO. The ICO will notify the Scottish Information Commissioner (SIC) if the complaint relates to a Scottish public sector body and the ICO and the SIC may share relevant information. The ICO will make a binding decision or a recommendation (based on the nature of the complaint). Details of rights of further appeal will be given by the Information Commissioner when it issues its decisions or recommendations. Resources Information Commissioner’s Office Scottish Information Commissioner – for Scottish Public Authorities The National Archives – Complaints about re-use Scope of re-use Most public sector bodies are within the scope of the 2015 Regulations, which also bring the cultural sector (libraries, including university libraries, museums and archives) into scope. However, not all public sector bodies that are subject to access legislation are required to permit re-use of their information. In particular, the cultural sector may decline requests for re-use (although they may be challenged). Examples of public sector bodies are: agencies, government departments, local government, and devolved institutions. Copyright notices When supplying information in response to an access request, public sector bodies should make it clear if there are any limitations on re-use. Sample wording – giving limited permission to re-use Most of the information that we provide in response to Freedom of Information Act 2000 [or other access legislation as appropriate] requests will be subject to copyright protection. In most cases the copyright will be owned by [insert name of public sector organisation]. The copyright in other information may be owned by another person or organisation, and this will be indicated on the information itself. You are free to use any information supplied for your own non-commercial research or private study purposes. The information may also be used for any other purpose allowed by a limitation or exception in copyright law, such as news reporting. However, any other type of re-use, for example by publishing the information in analogue or digital form, including on the internet, will require the permission of the copyright owner. For information where the copyright is owned by the [insert name of public sector organisation] details of the conditions on re-use can be found on our website at [insert link]. For information where the copyright is owned by another person or organisation you must apply to the copyright owner to obtain their permission. Sample wording – open licence Using information under this licence Use of copyright and database right material expressly made available under this licence (the 'Information') indicates your acceptance of the terms and conditions below. The Licensor grants you a worldwide, royalty-free, perpetual, non-exclusive licence to use the Information subject to the conditions below. This licence does not affect your freedom under fair dealing or fair use or any other copyright or database right exceptions and limitations. You are free to: - copy, publish, distribute and transmit the Information - adapt the Information - exploit the Information commercially and non-commercially for example, by combining it with other Information, or by including it in your own product or application Contact details Information Commissioner’s Office Wycliffe House Water Lane Wilmslow Cheshire SK9 5AF Tel: 0303 123 1113 or 01625 545745 www.ico.gov.uk/ Office of the Scottish Information Commissioner Kinburn Castle Doubledykes Road St Andrews Fife KY16 9DS Tel: 01334 464610 Email: [email protected] www.itspublicknowledge.info The National Archives Bessant Drive Kew Richmond Surrey TW9 4DU Tel: 020 8876 3444 Email: [email protected] www.nationalarchives.gov.uk/	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/3652-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 6, "total-input-tokens": 13878, "total-output-tokens": 2069, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 554, 1 ], [ 554, 1404, 2 ], [ 1404, 4212, 3 ], [ 4212, 6866, 4 ], [ 6866, 9037, 5 ], [ 9037, 9531, 6 ] ] }
d4be87626c7b879efee628d930ca4dc3008f3618	# LIN HOMER - MEETINGS WITH EXTERNAL ORGANISATIONS 1 April 2014 – 30 June 2014 \| Month of Meeting \| Name of External Organisation \| Purpose of Meeting \| \|------------------\|-------------------------------\|--------------------\| \| April \| Alzheimer’s Society \| To discuss how HMRC can support the work of the Alzheimer's Society. \| \| April \| DragonGate LTD \| To discuss the work they were doing with Local Authorities and in particular Cardiff City Council. \| \| May \| AOL \| Meeting to discuss HMRC relationship with a third party. \| \| May \| Behavioural Insights \| To discuss the work they are doing with HMRC and ways to collaborate in the future. \| \| May \| BBC Children in Need \| To discuss the annual campaign. \| \| May \| Alzheimer’s Society \| To discuss how Dementia training can support HMRC’s organisational objective’s \| \| May \| ICAEW \| Council meeting – Lin speaking for 1 Hour. \| \| June \| Alzheimer’s Society \| Introduction meeting. \| Does not normally include meetings with Government bodies such as other Government Departments and Agencies, non-departmental public bodies, Government reviews, and representatives of Parliament, devolved or foreign governments. Visits, attendance at seminars, conferences, receptions, media, interviews etc would not normally be classed as meetings. EDWARD TROUP – MEETINGS WITH EXTERNAL ORGANISATIONS 1 April 2014 – 30 June 2014 \| Permanent Secretary \| \|---------------------\| \| Month of Meeting \| Name of External Organisation \| Purpose of Meeting \| \| April \| Oxford University Centre for Business Taxation \| Advisory Board meeting. \| Does not normally include meetings with Government bodies such as other Government Departments and Agencies, non-departmental public bodies, Government reviews, and representatives of Parliament, devolved or foreign governments. Visits, attendance at seminars, conferences, receptions, media, interviews etc would not normally be classed as meetings.	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/3653-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 2, "total-input-tokens": 3128, "total-output-tokens": 514, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 1506, 1 ], [ 1506, 2163, 2 ] ] }
f3f21fc559f76f315cacb771754f83cc401ffdd2	Pre-release Access to Official Statistics: Timber Price Indices Last updated: November 2020 Next update due: May 2021 Introduction Our arrangements for pre-release access to Official Statistics are described in a Pre-Release Access Statement¹. This document supplements the statement by giving the names and/or job titles of all those persons to whom pre-release access has been granted to Timber Price Indices, as follows: - Part 1 provides a list of those receiving pre-release access to the Official Statistics in their final form for briefing purposes. As this is a release covering Great Britain, the pre-release access period is limited to 24 hours. - Part 2 provides a list of those receiving pre-release access for quality assurance purposes. The justification for giving advance access to each listed recipient will be available on request. Sheila Ward Forest Research ¹ https://www.forestresearch.gov.uk/tools-and-resources/statistics/about-our-statistics/code-of-practice/pre-release-access-to-official-statistics/ Part 1: Pre-release access to final form (24 hours) Department for Environment, Food and Rural Affairs: - Tim Brooks, Head of Trees, Woodlands & Forestry Policy - Alasdair Bray, Policy Adviser - Jessica Jacques, Senior Strategic Communications Officer - Phoebe Brown, Communications Officer, Press Office Forestry Commission: - Ian Gambles, Director - Richard Greenhous, Director of Forest Services - Ian Tubby, Principal Adviser, Business and Markets, Forest Services Forestry England: - James Simpson, Director of Operations – Forestry and Land Management - Stuart Burgess, Senior Press Officer - Wally North, Forestry and Timber Sales Manager Scottish Government: - Cabinet Secretary for Environment, Climate Change & Land Reform - Cabinet Secretary for the Rural Economy - Minister for Rural Affairs and Natural Environment - Bridget Campbell, Director, Environment and Forestry - Kate Higgins, Special Adviser Scottish Forestry: - Dave Signorini, Chief Executive - Alan Hampson, Head of Policy - Jason Hubert, Head of Business Development - Jonathan Taylor, Head of Secretariat - Brendan Callaghan, Head of Operational Delivery - John Dougan, Head of Operational Development - Helen Sellars, Head of Sustainable Forestry Management - John Cummings, Secretariat Officer - Steve Williams, Press officer Forestry and Land Scotland: - Simon Hodgson, Chief Executive - Trefor Owen, Director Land Management - Michael Hymers, Head of Corporate Support - Paul Munro, Media Officer Welsh Government: - PS First Minister - PS Minister for the Environment, Energy and Rural Affairs - PS Minister for Finance and Trefnydd - PS Minister for Environment - PS Permanent Secretary - Daniel Butler, Special Adviser - Tim Render, Director, Land, Nature and Forestry Division - Ceri Witchard, Deputy Director Land, Nature and Forestry Division - Elizabeth Lyon, Head of Forestry Resources Policy Branch • Jon Travis, Head of Forestry Reform • Heledd Owen, Head of Communications and Marketing, Natural Resources Dept • Simon Jenkins, Head of News Forest Research: • James Pendlebury, Chief Executive • Clare Parker, Head of Communications Part 2: Pre-release access for quality assurance Forestry Commission: - Ian Tubby, Principal Adviser, Business and Markets, Forest Services Forestry England: - Wally North, Forestry and Timber Sales Manager Forestry and Land Scotland: - Mick Bottomley, Head of Marketing and Sales Forest Research: - James Pendlebury, Chief Executive - Chris Quine, Chief Scientist - Nicol Sinclair, Head of Inventory, Forecasting & Operational Support	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/4707-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 5, "total-input-tokens": 8207, "total-output-tokens": 992, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 1034, 1 ], [ 1034, 1957, 2 ], [ 1957, 2937, 3 ], [ 2937, 3174, 4 ], [ 3174, 3613, 5 ] ] }
5c41057ac0762d33ca23ce5c92133b14993bfa31	Pre-Release Access to Official Statistics: UK Wood Production and Trade (provisional figures) Introduction The Forestry Commission’s arrangements for pre-release access to Official Statistics are described in a Pre-Release Access Statement¹. This document supplements the statement by giving the names and/or job titles of all those persons to whom pre-release access has been granted to UK Wood Production and Trade (provisional figures). The report covers 2 forms of pre-release access: - Part 1 provides a list of those receiving pre-release access to the Official Statistics in their final form for briefing purposes. As this is a release covering the UK, the pre-release access period is limited to 24 hours. - Part 2 provides a list of those receiving pre-release access for quality assurance purposes. The justification for giving advance access to each listed recipient will be available on request. Sheila Ward Forestry Commission Lead Official for Statistics Updated May 2020 ¹ https://www.forestresearch.gov.uk/tools-and-resources/statistics/about-our-statistics/code-of-practice/pre-release-access-to-official-statistics/ Part 1: Pre-release access to final form (24 hours) (last updated May 2020) Department for Environment, Food and Rural Affairs: - Stephen Penlington, Head of Trees, Woodlands & Forestry Policy - Dan Oldham, Policy Adviser - Jessica Jacques, Senior Strategic Communications Officer - Phoebe Brown, Communications Officer, Press Office Forestry Commission: - Ian Gambles, Director - Richard Greenhous, Director of Forest Services - Ian Tubby, Principal Adviser, Business and Markets, Forest Services Forestry England: - James Simpson, Forest Management Director - Stuart Burgess, Senior Press Officer - Wally North, Forestry and Timber Sales Manager Scottish Government: - Cabinet Secretary for Environment, Climate Change & Land Reform - Cabinet Secretary for the Rural Economy - Minister for Rural Affairs and Natural Environment - Bridget Campbell, Director, Environment and Forestry - Kate Higgins, Special Adviser Scottish Forestry: - Dave Signorini, Chief Executive - Alan Hampson, Head of Policy - Jason Hubert, Head of Business Development - Jonathan Taylor, Head of Secretariat - Brendan Callaghan, Head of Operational Delivery - John Dougan, Head of Operational Development - Helen Sellars, Head of Sustainable Forestry Management - John Cummings, Secretariat Officer - Paul Munro, Media Officer - Steve Williams, Press officer Forestry and Land Scotland: - Simon Hodgson, Chief Executive - Trefor Owen, Director Land Management - Michael Hymers, Head of Corporate Support Welsh Government: - PS First Minister - PS Cabinet Secretary for Environment, Energy and Rural Affairs - PS Minister for Environment - PS Cabinet Secretary for Finance - PS Permanent Secretary - Peter Greening, Cabinet Secretary - Alex Rawlin, Special Adviser - Tim Render, Director, Land, Nature and Forestry Division - Ceri Witchard, Deputy Director Land, Nature and Forestry Division - Elizabeth Lyon, Head of Forestry Resources Policy Branch - Scott Dewis, Forest Resources Knowledge Data and Statistics Manager - Glyn Jones, Chief Statistician - Heledd Owen, Head of Communications and Marketing, Natural Resources Dept - Sue Leake, LGC and Natural Resources Statistics Collection - Simon Jenkins, Head of News - Matt Greenough, Special Adviser for Strategic Communications Natural Resources Wales: - Ruth Jenkins, Head of Natural Resource Management Policy - Richard Cardwell, Senior Statistician - Michelle van Velzen, Sustainable Land Management Team Leader - Neil Stoddart, Sales and Marketing Manager Forest Research: - James Pendlebury, Chief Executive - Clare Parker, Head of Communications Part 2: Pre-release access for quality assurance (last updated April 2020) Expert Group on Timber & Trade Statistics: - Nicol Sinclair, Forest Research (Chair) - Nick Boulton, Timber Trade Federation - Alan Christison, Tilhill Forestry - Neil Cowan, James Jones & Sons Ltd - Michael Fairgrieve, DAERA Forest Service - Peter van-Velzen, Natural Resources Wales - Jason Hubert, Scottish Forestry - David Leslie, James Jones & Sons Ltd - Nigel Manley, Balcas Timber Ltd - Wally North, Forestry England - Richard Palmer, AW Jenkinson Forest Products - Mike Yerbury, Egger UK - Stephen Stanley, Scottish Woodlands - Andy Leitch, Confederation of Forest Industries - David Symons, Euroforest Ltd - Sheila Ward, Forest Research - George Webb, Norbord Europe Ltd - Ian Tubby, Principal Adviser, Business and Markets, Forest Services Forest Research: - James Pendlebury, Chief Executive - Chris Quine, Chief Scientist	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/4708-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 4, "total-input-tokens": 9561, "total-output-tokens": 1196, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 1141, 1 ], [ 1141, 2482, 2 ], [ 2482, 3733, 3 ], [ 3733, 4643, 4 ] ] }
db4d1d4b8f777c3bc22f47b93ac6ad0d8e5c7191	1.0 Purpose of Report 1.1 To consider an application for a new premises licence submitted by Showtime Events Group Ltd for Party in the Park on Abington Park, Northampton. 2.0 Summary 2.1 An application was submitted on behalf of the proposed licence holder by its Director Mr David Bailey. The application was received by Northampton Borough Council on 31st May 2020. Following police representation, a remote hearing took place before an Alcohol and Gambling licensing sub-committee on 14th July 2020, when it was decided to adjourn the matter until today to allow the police and the applicant more time to discuss and agree upon a set of proposed conditions and for the applicant to submit further details on any of the conditions upon which agreement could not be reached. 2.2 Northamptonshire Police have now submitted a final list of conditions which they would wish to see imposed on this premises licence, which you can see full detail of at Appendix E. It has not been possible at this time for complete agreement by the applicant to be reached on all 35 proposed conditions, with regards to which he will make representations to the sub-committee. 3.0 Application Details 3.1 The application was submitted for the purposes of holding weekend music and entertainment events for up to 4,999 people on Abington Park and permission for the following activities was requested: a) Sale of Alcohol for consumption on & off the premises Friday – Saturday 12.00 - 22.30 Sunday 12.00 - 21.30 b) Live Music Friday - Saturday 12.00.- 22.30 Sunday 12.00 – 21.30 c) Recorded Music Friday - Saturday 12.00.- 22.30 Sunday 12.00 – 21.30 d) Performance of Dance Friday - Saturday 12.00.- 22.30 Sunday 12.00 – 21.30 e) Provision of Anything of a Similar Description to Live Music, Recorded Music or Performances of Dance Friday - Saturday 12.00.- 22.30 Sunday 12.00 – 21.30 f) Opening Hours Friday – Saturday 12.00 – 23.00 Sunday 12.00 – 22.00 The proposed Designated Premises Supervisor is Mr David Bailey, the holder of a personal licence issued by Northampton Borough Council. 4.0 Consultations/Representations 4.1 When a request for a new premises licence or club premises certificate is received, the applicant must display a notice at or near the premises and serve a copy of the application upon the responsible authorities. For electronic applications, it is a requirement of the local authority to serve a copy of the application upon the other responsible authorities. 4.2 This gives responsible authorities and interested parties the opportunity to make representations in relation to the application for a period of 28 calendar days. The last date for making representations was 28th June 2020. 4.3 The obligatory notice was displayed on the premises as verified by licensing officers and notice was also published in the Northampton Chronicle and Echo as required. 4.4 Northamptonshire Police considered the application and PC Sandy Tracey, Licensing Officer with the Police, made a representation on the grounds of the licensing objectives of preventing crime and disorder and preventing public nuisance. There were no other representations from any responsible authority or any member of the public. 5.0 Attendance 5.1 The local authority is required to send a notice of hearing to all interested parties and request confirmation of attendance. A notice of hearing was sent to the following persons on 30th June 2020: Applicant – Mr David Bailey – Showtime Events Group Ltd Mr Roger Buckley – Event Safety Officer 6.0 Plan of Premises Layout & Location Please see premises Plan and Location map attached. 7.0 Options 7.1 If representations are received, then at the end of the consultation period the licensing authority must hold a hearing to consider them. It must take such steps as it considers appropriate for the promotion of the licensing objectives, which are: - the prevention of crime and disorder; - public safety; - the prevention of public nuisance; and, - the protection of children from harm. The steps the Sub-Committee can take once it has considered representations and any evidence submitted by the applicant and the responsible authority are to: a) grant the licence subject to – i) the conditions mentioned in subsection (2)(a) of the Act modified to such extent as the authority considers appropriate for the promotion of the licensing objectives, and ii) any condition which must under section 19, 20 or 21 be included in the licence; b) grant the license but exclude from its scope any licensable activity to which the application relates; c) grant the license but refuse to specify a particular person in the licence as the designated premises supervisor or d) reject the licence application. 8.0 Policy Considerations 8.1 Any decision made must have taken into account the Council’s Statement of Licensing Policy and the statutory guidance issued under section 182 of the Licensing Act 2003. 9.0 Legal guidance for determination of the application 9.1 Each application must be considered on its own merits and any conditions attached to licences and certificates must be tailored to the individual style and characteristics of the premises and events concerned. This is essential to avoid the imposition of disproportionate and overly burdensome conditions on premises where there is no need for such conditions. Standardised conditions should be avoided and indeed, may be unlawful where they cannot be shown to be necessary for the promotion of the licensing objectives in any individual case. 9.2 Any party at the hearing aggrieved by the decision of the sub-committee may appeal to the Magistrates’ Court within 21 days of the date of the decision being supplied to them in writing. \| Appendix No \| Title \| \|-------------\|------------------------------------------------------------\| \| A. \| Application for new premises licence – Pages 5 to 17 \| \| B. \| Plan and location – Page 18 \| \| C. \| Blue Notice – Page 19 \| \| D. \| Police Representation Email – Page 20 \| \| E. \| Proposed police conditions – Final Version – Pages 21 to 25\| \| Report Author \| Martin O’Connell \| \|---------------\|-------------------------------------------------------\| \| \| Senior Licensing Enforcement Officer \| ## Appendix A - Application ### Section 1 of 19 You can save the form at any time and resume it later. You do not need to be logged in when you resume. \| System reference \| Not Currently In Use \| \|------------------\|----------------------\| \| Your reference \| Party In The Park - Abington \| This is the unique reference for this application generated by the system. You can put what you want here to help you track applications if you make lots of them. It is passed to the authority. Are you an agent acting on behalf of the applicant? - [ ] Yes - [x] No Put "no" if you are applying on your own behalf or on behalf of a business you own or work for. ### Applicant Details \| * First name \| David \| \|--------------\|-------\| \| * Family name \| Salley \| - required information Are you: * Applying as a business or organisation, including as a sole trader * Applying as an individual Applicant Business Is your business registered in the UK with Companies House? - Yes - No \| Registration number \| 09945120 \| \|---------------------\|----------\| \| Business name \| SHOW TIME EVENTS GROUP LIMITED \| \| VAT number \| N/A \| \| Legal status \| Private Limited Company \| A sole trader is a business owned by one person without any special legal structure. Applying as an individual means you are applying so you can be employed, or for some other personal reason, such as following a hobby. Note: completing the Applicant Business section is optional in this form. Continued from previous page... Your position in the business: Director Section 2 of 19 PREMISES DETAILS I/we, as named in section 1, apply for a premises licence under section 17 of the Licensing Act 2003 for the premises described in section 2 below (the premises) and I/we are making this application to you as the relevant licensing authority in accordance with section 12 of the Licensing Act 2003. Premises Address Are you able to provide a postal address, OS map reference or description of the premises? - Address - OS map reference - Description Postal Address Of Premises \| Building number or name \| Abington Park \| \|-------------------------\|--------------\| \| Street \| Park Avenue \| \| District \| \| \| City or town \| Northampton \| \| County or administrative area \| \| \| Postcode \| NN1 5LW \| \| Country \| United Kingdom \| Further Details APPLICATION DETAILS In what capacity are you applying for the premises licence? ☐ An individual or individuals ☒ A limited company ☐ A partnership ☐ An unincorporated association ☐ A recognised club ☐ A charity ☐ The proprietor of an educational establishment ☐ A health service body ☐ A person who is registered under part 2 of the Care Standards Act 2000 (c14) in respect of an independent hospital in Wales ☐ A person who is registered under Chapter 2 of Part 1 of the Health and Social Care Act 2008 in respect of the carrying on of a regulated activity (within the meaning of that Part) in an independent hospital in England ☐ The chief officer of police of a police force in England and Wales ☐ Other (for example a statutory corporation) Confirm The Following ☒ I am carrying on or proposing to carry on a business which involves the use of the premises for licensable activities ☐ I am making the application pursuant to a statutory function ☐ I am making the application pursuant to a function discharged by virtue of Her Majesty's prerogative Section 4 of 19 NON INDIVIDUAL APPLICANTS Provide name and registered address of applicant in full. Where appropriate give any registered number. In the case of a partnership or other joint venture (other than a body corporate), give the name and address of each party concerned. Non individual Applicant's Name Name Show Time Events Ltd Details Registered number (where applicable) 09945120 Description of applicant (for example partnership, company, unincorporated association etc) ### Section 5 of 19 OPERATING SCHEDULE When do you want the premises licence to start? \| dd \| mm \| yyyy \| \|----\|----\|------\| If you wish the licence to be valid only for a limited period, when do you want it to end? \| dd \| mm \| yyyy \| \|----\|----\|------\| Provide a general description of the premises. For example, the type of premises, its general situation and layout and any other information which could be relevant to the licensing objectives. Where your application includes off-supplies of alcohol and you intend to provide a place for consumption of these off-supplies you must include a description of where the place will be and its proximity to the premises. The event will be fenced and we wish to have all the area within the fencing as place for consumption. If 5,000 or more people are expected to attend the premises at any one time, state the number expected to attend. \| 9999 \| ______________________________________________________________________ Continued from previous page... ### Section 6 of 19 PROVISION OF PLAYS Will you be providing plays? - [ ] Yes - [x] No ### Section 7 of 19 PROVISION OF FILMS Will you be providing films? - [ ] Yes - [x] No ### Section 8 of 19 PROVISION OF INDOOR SPORTING EVENTS Will you be providing indoor sporting events? - [ ] Yes - [x] No ### Section 9 of 19 PROVISION OF BOXING OR WRESTLING ENTERTAINMENTS Will you be providing boxing or wrestling entertainments? - [ ] Yes - [x] No Section 10 of 19 PROVISION OF LIVE MUSIC Will you be providing live music? - [ ] Yes - [ ] No Standard Days And Timings \| Day \| Start \| End \| \|-----------\|-------\|-----\| \| MONDAY \| \| \| \| \| \| \| \| TUESDAY \| \| \| \| \| \| \| \| WEDNESDAY \| \| \| \| \| \| \| \| THURSDAY \| \| \| \| \| \| \| Give timings in 24 hour clock (e.g., 16:00) and only give details for the days of the week when you intend the premises to be used for the activity. ______________________________________________________________________ Continued from previous page... \| Day \| Start \| End \| \|-----------\|-------\|-----\| \| FRIDAY \| 12:00 \| 20:30 \| \| \| \| \| \| SATURDAY \| 12:00 \| 22:30 \| \| \| \| \| \| SUNDAY \| 12:00 \| 21:30 \| \| \| \| \| Live bands and singers with amplified music NB: Applicant made an error in the form as timings for live music should read as 12.00 – 22.30hrs, not 20.30hrs as reads above. ### Provision of Recorded Music Will you be providing recorded music? - [ ] Yes - [x] No #### Standard Days And Timings \| Day \| Start \| End \| \|-----------\|-------\|-------\| \| Monday \| \| \| \| Tuesday \| \| \| \| Wednesday \| \| \| \| Thursday \| \| \| \| Friday \| \| \| \| Saturday \| \| \| \| Sunday \| \| \| Give timings in 24 hour clock (e.g., 16:00) and only give details for the days of the week when you intend the premises to be used for the activity. Will the playing of recorded music take place indoors or outdoors or both? - [ ] Indoors - [x] Outdoors - [ ] Both Where taking place in a building or other structure tick as appropriate. Indoors may include a tent. NB: Applicant made an error in the form as timings for live music should read as 12.00 – 22.30hrs, not 20.30hrs as reads above. \| Section 12 of 19 \| \|------------------\| \| PROVISION OF PERFORMANCES OF DANCE \| \| Will you be providing performances of dance? \| \| ☐ Yes ☐ No \| Standard Days And Timings \| Day \| Start \| End \| \|-----------\|-------\|-----\| \| MONDAY \| \| \| \| TUESDAY \| \| \| \| WEDNESDAY \| \| \| \| THURSDAY \| \| \| \| FRIDAY \| 12:00 \| 22:30 \| \| SATURDAY \| 12:00 \| 22:30 \| \| SUNDAY \| 12:00 \| 21:30 \| Give timings in 24 hour clock (e.g., 16:00) and only give details for the day of the week when you intend the premises to be used for the activity. Continued from previous page... Will the performance of dance take place indoors or outdoors or both? ☐ Indoors ☐ Outdoors ☐ Both Where taking place in a building or other structure tick as appropriate. Indoors may include a tent. State type of activity to be authorised, if not already stated, and give relevant further details, for example (but not exclusively) whether or not music will be amplified or unamplified. PROVISION OF ANYTHING OF A SIMILAR DESCRIPTION TO LIVE MUSIC, RECORDED MUSIC OR PERFORMANCES OF DANCE Will you be providing anything similar to live music, recorded music or performances of dance? - [ ] Yes - [x] No Standard Days And Timings \| Day \| Start \| End \| \|-----------\|-------\|-----\| \| MONDAY \| \| \| \| \| \| \| \| TUESDAY \| \| \| \| \| \| \| \| WEDNESDAY \| \| \| \| \| \| \| Give timings in 24 hour clock, (e.g., 16:00) and only give details for the days of the week when you intend the premises to be used for the activity. ______________________________________________________________________ Continued from previous page... \| Day \| Start \| End \| \|-----------\|-------\|-----\| \| THURSDAY \| \| \| \| \| \| \| \| FRIDAY \| 12:00 \| 22:30 \| \| \| \| \| \| SATURDAY \| 12:00 \| 22:30 \| \| \| \| \| \| SUNDAY \| 12:00 \| 21:30 \| \| \| \| \| Will this entertainment take place indoors or outdoors or both?\ ☐ Indoors ☐ Outdoors ☐ Both State type of activity to be authorised, if not already stated, and give relevant further details, for example (but not exclusively) whether or not music will be amplified or unamplified. ______________________________________________________________________ Section 14 of 19 LATE NIGHT REFRESHMENT Will you be providing late night refreshment?\ ☐ Yes ☐ No ______________________________________________________________________ Section 15 of 19 SUPPLY OF ALCOHOL Will you be selling or supplying alcohol?\ ☐ Yes ☐ No Standard Days And Timings \| Day \| Start \| End \| \|-----------\|-------\|-------\| \| MONDAY \| \| \| \| \| \| \| \| TUESDAY \| \| \| \| \| \| \| \| WEDNESDAY \| \| \| \| \| \| \| \| THURSDAY \| \| \| \| \| \| \| \| FRIDAY \| 12:00 \| 22:30 \| \| \| \| \| \| SATURDAY \| 12:00 \| 22:30 \| \| \| \| \| \| SUNDAY \| 12:00 \| 21:30 \| \| \| \| \| Give timings in 24 hour clock, (e.g., 16:00) and only give details for the days of the week when you intend the premises to be used for the activity. Continued from previous page... Will the sale of alcohol be for consumption: ☐ On the premises ☐ Off the premises ☑ Both If the sale of alcohol is for consumption on the premises select on, if the sale of alcohol is for consumption away from the premises select off. If the sale of alcohol is for consumption on the premises and away from the premises select both. State any seasonal variations: State the name and details of the individual whom you wish to specify on the licence as premises supervisor: Name First name: David Family name: Bailey Enter the contact's address: Personal Licence number (if known): PA2813 Issuing licensing authority (if known): Northampton ### Standard Days And Timings \| Day \| Start \| End \| \|-----------\|-------\|-------\| \| MONDAY\| \| \| \| \| \| \| \| TUESDAY\| \| \| \| \| \| \| \| WEDNESDAY\| \| \| \| \| \| \| \| THURSDAY\| \| \| \| \| \| \| \| FRIDAY\| 12:00 \| 23:00 \| \| \| \| \| Give timings in 24 hour clock (e.g., 16:00) and only give details for the days of the week when you intend the premises to be used for the activity. ______________________________________________________________________ Continued from previous page... \| Day \| Start \| End \| \|-----------\|-------\|-------\| \| SATURDAY\| 12:00 \| 23:00 \| \| \| \| \| \| SUNDAY\| 12:00 \| 22:00 \| \| \| \| \| Section 18 of 19 LICENSING OBJECTIVES Describe the steps you intend to take to promote the four licensing objectives: a) General – all four licensing objectives (b,c,d,e) List here steps you will take to promote all four licensing objectives together. All drinks that are purchased for consumption on the premises will be served in plastic or polycarbonate containers. Where alcohol is sold for consumption off the premises, they must be placed in a carrier bag prior to being handed over to the customer, informing them that this alcohol is cannot consumed in the licensable area. b) The prevention of crime and disorder All people entering the licensable area shall be ID checked and in accordance with challenge 21, they. Any person under the age of 18 will be refused service. Any person found to be buying or giving alcohol to a underage person will be asked to leave the event. Roaming response teams will be deployed to check on the perimeter fencing. All public must come in a designated entrance where bag searches will be in operation. c) Public safety All staff will have colored high viz vests, (Blue SIA) (Yellow Stewards) (Orange Supervisors & Managers) (Purple Event Manager) Safety office will be on the event and myself David Bailey having completed my level 4 safety officer course will also be on Continued from previous page... Site at all times. First aid will be supplied by a professional medical company d) The prevention of public nuisance Have a zero tolerance to any anti social behavior, with perimeter checks. The stage will be angled a cross field as not to impacted on the property around the event. Between the hours of 12.00-18.00 the music levels shall not exceed L_Aeq,1min\<55DB. Between 18.00-22.30 shall not exceed L_Aeq,1min\<45DB. Music on the stage will be stopped at 22.30 on the Friday & Saturday, Sunday 21.30. The Funfair music will be turned down at the same time. Conformity checks of music noise leaves shall be retained 3 months after the event, and upon requested be made available to the local authority for inspection. e) The protection of children from harm Lost children unit manned by trained staff will be located at the event control and clearly signed. Both bars will run a challenge 21 policy and will have on site refresher training before the event opens. Appendix B - Plan of licenced area layout Appendix C - Blue Notice Show Time Events Group Ltd Premises Licence for Party in the Park Abington Park Park Avenue Northampton NN1 5LW If granted the application will allow the following licensable activities to take place: Sale of alcohol: ON AND OFF THE PREMISES Provision of regulated entertainment: LIVE MUSIC, RECORDED MUSIC, PERFORMANCE OF DANCE. A copy of the application is kept by the Licensing Authority at the address below and can be viewed Monday to Friday 9.00am to 5.00pm, except Bank Holidays, or online at: www.northampton.gov.uk Licensing Department Northampton Borough Council The Guildhall St Giles Square Northampton NN1 1DE Tel: 01604 838546 Fax: 01604 838723 Email: [email protected] Representations may be made for 28 consecutive days from the date of this notice. The last date for representations being 29/06/2020 It is an offence knowingly or recklessly to make a false statement in connection with an application the maximum fine for which a person is liable on summary conviction for making a false statement is a Level 5 fine on the standard scale. THIS NOTICE BEING DATED 01/06/2020 Appendix D - Police Representation Email Dear Sir or Madam, I act on behalf of the Chief Officer of Police, Mr Adderley, he has delegated responsibility and has authorised me to act on his behalf with regard to representations made by Northamptonshire Police to Licensing Authorities across the county of Northamptonshire. I am placing a holding objection to the above application due to there being insufficient detail in the application to fully support the Licensing Objectives; This application gives us concern regarding the Reduction of Crime & Disorder and Public Nuisance objectives. I will be in touch with the applicant to work out a potential way forward with this application. Kind regards, Sandy TRACEY Police Constable 0010 Sandy TRACEY Northamptonshire Police Alcohol Licensing Constable Wellingborough Police Station Midland Road, Wellingborough. NN8 1HF. Telephone 101 Ext. 346307 Appendix E – Proposed Police Conditions – Final Version 1. A fully working and maintained Body Worn Video system capable of recording and storing images must be installed on the premises. The system must record at all times whilst the premises are open to the public and images must be stored for a minimum of 28 days with date & time stamping. As a minimum this must cover all entry and exit points, both sides of all areas where the sale/supply of alcohol takes place. 2. There will be a minimum of 20 Body Worn Video sets in use at this event each day. Rationale - This will be an event that will attract up to 5000 people. We have made enquiries with companies that hire Body worn video kits out for events. The approximate cost of hiring a kit with the required attachments is approximately £25-£30 per week. Therefore if you were to hire 20 kits this would be at a cost of approximately £550-£600. The reason we wish you to use 20 kits is because this would be a ratio of 1 kit per 250 guests. It is our job to ensure the Prevention of Crime and Disorder, to keep the public safe and to prevent harm to children during an event such as this. We feel the use of 20 kits per 250 attendees is a fair and proportionate request. I have the details of 2 local security companies who are willing to hire kits out for your event. They have both priced hire of each kit and all the required attachments as between £25-£30 for 4 weeks hire. If you want their details please let me know. 3. A person conversant with the retrieval and down loading the Body Worn Video footage must be present on the premises at all times whilst they are open. This staff member will be available to assist officers to view incidents as soon as practicable after they occur in order to conduct an initial investigation and in line with current Data Protection Legislation. 4. Each concession/marquee selling alcohol at this event shall have a personal licence holder on the premises whilst the event is open to the public. Rationale - This event will attract a number of people of all ages. A person who holds a Personal Licence has undertaken training specific to the responsible sale of alcohol. As I have said, it is our job to ensure the safety of adults and children attending this event. To request that each stand that sells alcohol has a Personal Licence holder present at each outlet is fair and proportionate in relation to an event type such as this. 05. When alcohol is sold at the event the following conditions shall apply to all bars, both for the public and in hospitality areas: a) Bars will be closed at least 30 minutes before the event finish time. b) Bars will not be permitted to run price promotions, happy hours or other promotions designed to encourage excessive drinking. 06. Northamptonshire Police will be given a minimum of 3 months’ notice prior to any event. 07. Drinks shall not be sold or served in glass vessels or containers or served in any measure greater than a pint. 08. Substantial food and non-intoxicating beverages, including free drinking water, shall be available throughout the permitted hours in all parts of the premises where alcohol is sold or supplied for consumption on the premises. 09. A Challenge 21 proof of age scheme shall be operated at the premises. 10. All training records shall be made available to Police, officers of the licensing authority and Trading Standards upon request. 11. Ticket holders attending this event shall not bring any alcohol in or out of the Licensable Area. Note for clarity - Stall holders or anyone involved in the organisation of an event are not defined as members of the public for this condition. I have re-worded for clarity. 11. The number of locations where alcohol is sold at the event shall not exceed those indicated on the event plan. 12. At all locations where alcohol is sold, the name and contact telephone number of the Designated Premises Supervisor shall be displayed in a prominent position on the premises, so that is it clearly visible. The named Personal Licence Holder for that location will also be displayed with their contact telephone number. 13. An advertised ‘hotline’ telephone number to the Licensee shall be available to local residents. 14. All staff engaged outside the entrance to the premises, or supervising or controlling queues, shall wear high visibility jackets or vests. Explanation note - I have removed the word yellow as requested. 15. The licence holder shall ensure that any queue to enter the premises which forms outside the premises is orderly and supervised by door staff so as to ensure that there is no public nuisance or obstruction to the public highway and that the queue area is covered by the venue’s BWV system. 16. Patrons shall be encouraged not to congregate outside the premises after the event has finished. 17. Promotional literature and tickets will contain information regarding public transport options and public conveniences and shall request persons to leave the area quietly. 18. The premises will have a documented searching policy. This document will be retained upon the premises and made available to an officer from a responsible authority for inspection upon reasonable request. Searches will be carried out where deemed appropriate by SIA licenced door staff. All searches will be monitored by the venue’s CCTV system. 19. The premises will have a documented drugs policy. This document will be retained upon the premises and made available to an officer from a responsible authority for inspection upon reasonable request. 20. An incident log shall be kept at the premises and made available on request to an authorised officer of the Council or the Police. It must be completed within 24 hours of the incident and will record the following: (a) All crimes reported to the venue (b) All ejections of patrons (c) Any complaints received concerning crime and disorder (d) Any incidents of disorder (e) all seizures of drugs or offensive weapons (f) any faults in the CCTV system, searching equipment or scanning equipment (g) Any refusal of the sale of alcohol (h) Any visit by a relevant authority or emergency service 21. In the event that a serious and/or sexual assault is committed on the premises (or appears to have been committed) the management will immediately ensure that: (a) The police (and, where appropriate, the East Midlands Ambulance Service) are called without delay; (b) All measures that are reasonably practicable are taken to apprehend any suspects pending the arrival of the police; (c) The crime scene is preserved so as to enable a full forensic investigation to be carried out by the police; and (d) Such other measures are taken (as appropriate) to fully protect the safety of all persons present on the premises. 22. Northamptonshire Police Control Room must be provided with the particulars of the nominated safety co-ordinator and the Licensee. 23. Unless otherwise agreed, no later than 28 days prior to the event an Event Management Plan must be presented to a member of Northamptonshire Police Licensing Team for their comment and advice. The Event Management Plan shall include, as a minimum: a) Emergency and Evacuation procedures; b) Crowd management and stewarding arrangements; c) A detailed plan showing site layout and emergency egress points; d) A detailed plan of parking arrangements for each event. 24. The premises will have a recordable means of monitoring and controlling its capacity. 25. There shall be adequate means of control to ensure that only permitted numbers of persons gain access to the event site. 26. There shall be a minimum of 50 stewards (1:100) and 25 (1:200) Security Industry Authority licenced Staff employed each day both within and outside the licensed area at all times during the event. In addition, there shall be 6 x Pit team and 4 x Chapter 8, 1 x Security Manager. 2 x level 3 event mangers 1 x level 4 safety officer with CP badge. Rationale - Northamptonshire please have a responsibility to uphold the Licensing Objectives, we have a duty of care to Northamptonshire residents in keeping them safe. We feel that having a ratio as requested of stewards and Security Industry Authority licenced staff is proportionate and reasonable. As an example we ask for a minimum of 1:100 SIA for a nightclub, most nightclubs employ far more. As this event is a music event that runs to within the hours of darkness we have estimated that 1:200 SIA is a fair and proportionate request and we respectfully request that the Licensing Committee would support this. 27. A communication system must be provided to ensure the effective operation of the site under both normal and emergency evacuation conditions. The Licensee must provide an adequate incident control centre and a rendezvous point for the Police and other emergency services. 28. Adequate rigid barriers or fences designed to adequately resist right-angle and parallel loads commensurate with probable crowd pressure must be provided around any stage and other location where it is necessary to limit crowd pressure in the interests of safety. 29. In case of evacuation, details of all marquees, tented structures and temporary structures should be provided including emergency exits and signage. 30. Emergency exits and entrances to the event area must be kept clear at all times and must be provided with clearly visible signage. 31. Adequate drinking water points in suitable locations must be provided and maintained. 32. Adequate parking shall be provided within the confines of Abington Park for persons attending events. Rationale - We will be happy to remove this condition once we have been made aware of an adequate parking plan. In our opinion to state that the town centre car parks can be used would cause public nuisance to residents living around the event site. If this were the case we would expect significant congestion, unlawful and disrespectful parking and a strain on police resources as a result. We understand that consent to park within the confines of the park had been authorised by NBC but have since been withdrawn. Please can you provide us with the new arrangements? 33. There shall be a welfare point (or equivalent area) for the reporting and management of lost children. The welfare point will be staffed by trained (and appropriately certified by the Disclosure and Barring Service) members of staff who will be in radio contact with the safety co-ordinator. 34. Sufficient numbers of stewards/marshals shall be employed as required by the size of the event to ensure that patrons leave the premises safely.	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/4709-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 25, "total-input-tokens": 33811, "total-output-tokens": 9198, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 1642, 1 ], [ 1642, 3544, 2 ], [ 3544, 5260, 3 ], [ 5260, 6528, 4 ], [ 6528, 7314, 5 ], [ 7314, 8104, 6 ], [ 8104, 8987, 7 ], [ 8987, 10543, 8 ], [ 10543, 11986, 9 ], [ 11986, 12871, 10 ], [ 12871, 13765, 11 ], [ 13765, 14902, 12 ], [ 14902, 15860, 13 ], [ 15860, 17033, 14 ], [ 17033, 17715, 15 ], [ 17715, 18487, 16 ], [ 18487, 20822, 17 ], [ 20822, 20864, 18 ], [ 20864, 22001, 19 ], [ 22001, 22908, 20 ], [ 22908, 25486, 21 ], [ 25486, 27656, 22 ], [ 27656, 30128, 23 ], [ 30128, 32368, 24 ], [ 32368, 33583, 25 ] ] }
696398d279bd1aa2eea58f106c9f24fd4ef7f7b5	Preparing records for transfer to The National Archives Last updated: January 2017 © Crown copyright 2015 You may re-use this information (excluding logos) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence, visit nationalarchives.gov.uk/doc/open-government-licence Where we have identified any third-party copyright information, you need to obtain permission from the copyright holder(s) concerned. This publication is available for download at nationalarchives.gov.uk. Introduction .......................................................................................................................... 5 About this Guidance ............................................................................................................. 5 The responsibilities of government departments ................................................................. 5 The National Archives’ responsibilities ............................................................................. 6 Why the physical preparation of records is important ......................................................... 6 To prolong the life of the records ......................................................................................... 6 To enable the records to be located and tracked ................................................................. 7 To enable researchers to use the records without causing damage .................................... 7 To safeguard records not yet available to the public ......................................................... 7 Handling records with care ................................................................................................. 8 Items which need to be removed from records .................................................................. 8 Metal .................................................................................................................................. 8 Checklist of most common metal objects that should be removed from files: ............... 9 Removing staples .................................................................................................................. 9 Rubber and plastic .............................................................................................................. 9 Checklist of most common rubber and plastic items that should be removed from files: ................................................................................................................................. 9 Sticky notes (Post-it® notes) .............................................................................................. 10 Glassine paper .................................................................................................................... 11 Polyester enclosures and acid-free envelopes .................................................................. 11 Checklist for using polyester enclosures: ......................................................................... 12 Checklist for using acid-free envelopes: ........................................................................... 12 Damaged and loose pages ................................................................................................. 12 Papers stuck with adhesive tape (Sellotape®) .................................................................. 13 Glued items ......................................................................................................................... 14 Newspapers and newspaper cuttings .............................................................................. 14 Booklets .............................................................................................................................. 14 Maps and plans within the body of a file ............................................................................ 14 Photographs and negatives within the body of a file ....................................................... 15 Other preparation requirements ....................................................................................... 16 Writing The National Archives’ reference (the TNA reference) on the front cover ....... 16 Tips for writing references: ............................................................................................... 16 Tagging ............................................................................................................................... 16 Checklist for tagging: ......................................................................................................... 17 Thermal paper .................................................................................................................... 18 Tips for dealing with thermal paper: ................................................................. 18 Original envelopes within files ................................................................. 20 Badly damaged and fragile file covers ...................................................... 20 Stickers and labels on file covers .............................................................. 20 Splitting thick files .................................................................................. 21 Checklist for thick and split files: .......................................................... 21 Tying up files ............................................................................................ 22 Seals within the body of a file .................................................................. 22 Floppy disks, CDs, microfiche in files ...................................................... 23 Microform outside of files ....................................................................... 23 Unusual collections of papers .................................................................. 23 Loose bundles of papers ....................................................................... 23 Ring-binders ......................................................................................... 23 Volumes ............................................................................................... 23 Maps and plans ....................................................................................... 24 Treatment of individual maps and plans .............................................. 24 Folded maps and plans ....................................................................... 24 Flat maps and plans ............................................................................ 25 Rolled maps and plans ....................................................................... 25 Photographs and similar material ............................................................ 25 Individual photographs ....................................................................... 25 Other photographic material .............................................................. 25 Video and audio ....................................................................................... 26 Objects, artefacts and seals ..................................................................... 26 Boxing and Box Labelling ....................................................................... 26 Packing boxes ..................................................................................... 26 Box size ............................................................................................ 26 Fullness when packing ..................................................................... 26 Packing bound volumes ................................................................... 27 Packing uneven records ................................................................... 27 Tying boxes ..................................................................................... 27 Boxes containing dummy cards ...................................................... 27 Labelling boxes ....................................................................................... 27 TNA reference labels for boxes .......................................................... 27 Closure labels for boxes ..................................................................... 28 Boxes for records being stored off-site ................................................................. 29 Box specification ........................................................................................................ 29 Construction ............................................................................................................. 29 Context of use .......................................................................................................... 30 Grades of box board ............................................................................................... 30 Types of box board ................................................................................................. 31 Access Issues ............................................................................................................. 31 Background to access issues relating to physical preparation ................................. 31 Dummy cards ............................................................................................................. 32 Reasons to use dummy cards .................................................................................. 32 Filling in dummy cards ............................................................................................ 32 Use of dummy cards to replace whole pieces ......................................................... 34 Use of dummy cards to replace whole parts of records (extracts) ......................... 35 Redactions .................................................................................................................. 36 What are redactions? ............................................................................................... 36 Making redactions .................................................................................................. 36 Making redactions within bound volumes .............................................................. 38 Stamps used on redacted pages ................................................................................. 39 Preparation of closed records for transfer ............................................................... 39 Piece and item closure labels and closed item warning tape .................................. 39 Calculating the relevant dates for CLOSED UNTIL labels .................................... 40 Boxes for transferring closed records .................................................................... 40 NATO papers and Cabinet Office papers ................................................................. 41 Previously retained and previously missing pieces .................................................. 41 Documentation .......................................................................................................... 41 The e-Transfer form (AA2) .................................................................................... 41 Series Level Time Plan (SLTP) .............................................................................. 42 Transfer Delivery form ............................................................................................ 42 The National Archives’ cataloguing template ......................................................... 43 Suppliers of materials ............................................................................................... 43 Suppliers of boxes and archival materials ............................................................. 43 Glossary ....................................................................................................................... 45 Introduction About this Guidance This Guidance is for records management staff from all government departments and agencies transferring records to The National Archives. This Guidance will not cover every situation that may occur while preparing records. Special guidance may be required for unusual or specialist issues. Consult your Transfer Adviser if you are unsure about any matter relating to preparation. The National Archives also offers a File preparation e-learning course online. There is separate guidance relating to the preparation and transfer of digital records and for records being transferred to places of deposit other than The National Archives. For more information on these processes contact your Information Management Consultant for further information. This Guidance may change over time, to ensure you are using the most up-to-date guidance – visit The National Archives’ website and check with your Transfer Adviser. The responsibilities of government departments Departmental Records Officers (DROs) and records management staff are responsible for ensuring that records are prepared to The National Archives’ standards prior to transfer. Departmental staff should: - handle records with care during the preparation process, and all preparation and documentation work should be done clearly and accurately - consult with their Transfer Adviser as early as possible if they are concerned about any aspect of the transfer process or they think that some records may need specialist conservation or repair work - report any evidence of mould, asbestos, chemical and hazardous substances, insects, rodents or any other environmental damage to their Transfer Adviser as early as possible, as the records may require urgent specialist treatment and this could have serious implications for the transfer process - have approval for any closure or retention of records, and must complete all necessary documentation fully and accurately, before the transfer of records can take place The National Archives’ responsibilities - Transfer Advisers are responsible for ensuring that all necessary physical preparation work has been carried out by government departments before a transfer is made to The National Archives. - The Transfer Team is responsible for providing training in the preparation of records to staff in other government departments. This may be in the form of training courses, individual coaching or bespoke guidance. Transfer Advisers also have access to colleagues in the Collection Care Department who are trained conservators and specialists in record preservation. They can advise Transfer Advisers on any unusual or difficult conservation problems. - Collection Care is also responsible for dealing with specialist conservation issues which cannot be reasonably undertaken by government departments. Such issues should be noted on the e-Transfer (AA2) form so that they are highlighted for Collection Care to examine after the transfer of the records. The National Archives can supply the following material to government departments: - box reference labels (departmental lettercode, series number and piece and item numbers) - closure labels (‘Closed until’ and ‘Closed until various dates up to’) - dummy cards for whole pieces and extracts - yellow and black warning tape for closed extracts - warning stickers for distressing photographs Contact your Transfer Adviser if you require any of these items. Why the physical preparation of records is important To prolong the life of the records Records transferred to The National Archives have been identified as being of high value and worthy of permanent preservation. The primary aim of careful physical preparation is to ensure that the records remain intact and usable for as long as possible. Simple preparation measures that can help prolong the life of the records include: Preparing records for transfer to The National Archives - the securing of loose material so nothing is lost (e.g. by tagging) - the protection of the record (e.g. by correctly sized covers and boxes) - the removal of certain potentially harmful materials from the record (e.g. metals and plastics) - the isolation of certain vulnerable materials (e.g. photographs). To enable the records to be located and tracked In order to ensure that records do not get lost, there must be a means of easily identifying them so that they can be located and their movements tracked. This is why records transferred to The National Archives are given unique alphanumeric references (TNA references), which are applied to their covers and the boxes containing them. To enable researchers to use the records without causing damage Records transferred by government departments are intended to be used by the general public. On average the public view more than half a million records each year at The National Archives. Therefore, it is important to prepare records so that the public will find them easy to handle and read, and which minimizes the risk of any accidental damage. For example, records should be split if they are very thick and unwieldy; tags should be long enough to enable files to be opened easily at any point; and all pages and enclosures should be prepared so that the public can view them without causing damage. To safeguard records not yet available to the public Some information found in records is too sensitive to be seen by the public. Such material is retained by government departments or closed to the public when it is transferred to The National Archives. Various measures are employed in order to ensure that such material is safeguarded from access by the public, while allowing for it to be reunited with the open records when the sensitivity no longer exists. These measures include the use of dummy cards, redaction techniques, warning tape and closure labels. All materials used for the preparation of records (boxes, folders, labels etc.) must be approved by The National Archives. Consult with your Transfer Adviser before using or ordering any materials for the first time to ensure they meet The National Archives’ standards. A list of potential suppliers of approved materials can be found at the end of this Guidance. The photograph below shows some examples of approved materials. Handling records with care Records should be handled with care during the physical preparation process to avoid damage. Keep documents in a clean, controlled environment and ensure that records are kept away from any substances and materials which might harm them. Keep your hands clean and dry when handling records. This is important because skin naturally secretes oils that attract dust and other particles, and this dirt and oil can stain documents. There is no need to wear gloves with most types of records. However, photographic prints, negatives and glass plates are more easily damaged by these oils in our skin. Therefore when handling these types of materials, wear cotton or nitrile gloves (you could also wear powder-free latex or vinyl gloves) and hold the materials at the edges in order to reduce fingerprint marks and other surface damage. Support heavy awkward documents at all times to avoid damage such as rips, tears, folds and creases. This is particularly important when protecting and maintaining the spines of books and volumes. Use reading aids such as book wedges and weights. Items which need to be removed from records Metal Ideally, remove all metal objects (except those of historical value) from records prior to their transfer to The National Archives. This is because metal corrodes and can damage records over time. Preparing records for transfer to The National Archives Once records are transferred to The National Archives they are kept in environmentally controlled conditions; this considerably reduces the risk of corrosion. Therefore, The National Archives does not now require that metal staples are removed unless they prevent papers from being turned and opened easily. However, if time and resources allow, removing metal staples helps with the long term preservation of the document. Checklist of most common metal objects that should be removed from files: - paperclips and bulldog clips - staples which prevent a user from opening pages and viewing information (usually, any staple not fixed in the top left corner) - pins and sharp objects (which are a health and safety hazard) - metal-ended tags – replace these with plastic-ended tags Removing staples Use an artist’s palette knife when removing staples, as staple removers may damage or tear pages. The staple should always be removed from behind, as seen below. Correct method for removing staples Rubber and plastic Remove all plastic and rubber objects from files as these materials can deteriorate rapidly, causing damage to paper and other materials that come in contact with them. Checklist of most common rubber and plastic items that should be removed from files: - comb bindings - plastic wallets - plastic covers - rubber bands Polyester enclosures and nylon-ended treasury tags are the only plastic material that should normally be present in a file. This is because both polyester and nylon are more stable than other plastics and degrade at a much slower rate. Consult your Transfer Adviser if a plastic cover or wallet contains information not written elsewhere as it may be advisable to place it in an acid-free envelope. Examples of plastic covers and bindings that should be removed Sticky notes (Post-it® notes) Discard any sticky notes which are blank, have been added during the review and transfer process, or contain only unimportant administrative or 'housekeeping' information (e.g. 'Put this on file', 'Copy this'). Keep sticky notes containing information of value – remove these from the document, place them in polyester enclosures and replace them in their original position in the file. Preparing records for transfer to The National Archives Glassine paper Photographs in glassine paper need to be placed in polyester enclosures and the glassine paper should be discarded. Glassine paper was traditionally used to store photographs and negatives; however, it becomes brittle and discolours over time which can cause damage to any photographic material it holds. Below is an example of a traditional glassine enclosure – the type which needs to be replaced. Polyester enclosures and acid-free envelopes Place loose, fragile or unstable objects, such as badly damaged pages, photographs, loose booklets, newspapers or large maps into polyester enclosures or acid-free envelopes. Documents placed in polyester enclosures should be fully visible on both sides so that there is no need to remove the document to view it completely. This is because frequently removing a document from a polyester enclosure can cause damage. Examples of documents suitable for polyester enclosures are: a single torn page, a single photograph, a newspaper cutting or a sticky note (Post-it® note). Consult your Transfer Adviser if you are unsure about whether an item is suitable for a polyester enclosure. Checklist for using polyester enclosures: - place only one page or photograph in each polyester enclosure. This ensures the item is visible on both sides, and researchers will not need to remove it to view it completely - use a polyester enclosure of an appropriate size – one that is neither too small nor too large for its contents - replace the document in the polyester enclosure in its original position in the file it belongs to (its ‘parent piece’) - the file’s tag should normally run through both the polyester enclosure and the document inside it, securing the document in place, unless tagging the document would obscure text. Photographs should not be tagged under any circumstances, endorse (reference on the back) any document not secured by a tag with the TNA reference of the parent piece, in case it comes loose. Write the endorsement lightly but legibly in HB pencil - do not write on the polyester enclosure Place larger, bulkier documents which need to be removed from the file in order to examine them (such as booklets, folded maps, newspapers, etc.) into acid-free envelopes. Consult your Transfer Adviser if you are unsure whether an item should be placed into an acid-free envelope. Checklist for using acid-free envelopes: - endorse the document lightly and legibly in HB pencil with the TNA reference of its parent piece - place the document in an acid-free envelope of an appropriate size - mark the envelope in HB pencil on its front with a brief note of the contents (e.g. ‘1 newspaper enclosed’, ‘2 maps enclosed’) - tag the acid-free envelope in the original place of the document within the file, in such a way that the contents can be easily removed for examination and then replaced. The size of the envelope, the way it is tagged, and the envelope’s flap should not make the contents difficult to extract - run the tag only through the envelope and not its contents Damaged and loose pages Endorse badly torn pages with their reference and insert them into polyester enclosures in order to prevent further damage. Do not try to repair them with adhesive or ‘archival’ tape. You do not need to take any action if pages have minor tears. Loose pages can often be tagged in place in their file, without being put into polyester enclosures. Ensure the new tag hole does not damage any text but secures the pages. The tag holes should be about 2cm from the edge of the page, so that the page will not tear loose easily. Do not use self-adhesive tag hole reinforcers. Put pages with badly torn corners and unusable tag holes into polyester enclosures and replace them in the file. Do not attempt to punch new tag holes or repair pages. Example of a loose, torn page in a polyester enclosure An acid-free envelope tagged correctly, with easily removable contents Papers stuck with adhesive tape (Sellotape®) Endorse and place pages with degrading adhesive tape stuck to them in polyester enclosures and note the issue on the e-Transfer (AA2) form so that it can be examined by Collection Care. Adhesive tape (commonly known as Sellotape®) can quickly degrade, with the plastic part of the tape becoming discoloured and separating from the adhesive, leaving the sticky adhesive on the document. This in turn can cause damage to other documents within a file. Leave the removal of adhesive tape to Collection Care. Glued items Glue can be unstable and often does not hold in the long term. Therefore, where glued items such as newspaper cuttings, photographs, etc. are coming unstuck, put the items and their backing pages into polyester enclosures. This may not be possible when the glued objects are on the cover, where they are in bound volumes, or where there is a large quantity of glued material. In such cases the issue should be noted on the e-Transfer (AA2) form for the attention of Collection Care. Newspapers and newspaper cuttings Endorse newspapers and newspaper cuttings in HB pencil with the TNA reference of the parent piece they belong to, and place into polyester enclosures or acid-free envelopes. Mark the acid-free envelope in HB pencil with a brief note of its contents (e.g. ‘4 newspaper cuttings enclosed’). If possible, insert a black and white photocopy of the newspaper or cutting in front of the enclosure or envelope. This minimizes the handling of newspaper materials which are often fragile and likely to deteriorate over time. Booklets Endorse loose, untagged booklets in HB pencil with the TNA reference of their parent piece and insert into acid-free envelopes. Mark the acid-free envelope in HB pencil with a brief note of its contents (e.g. ‘one booklet enclosed’). Leave booklets that are already tagged into the file as they are, providing they are secure and can be read without removing the tag. Maps and plans within the body of a file Tag small, flat or folded maps and plans into their original position within the file. The tagging must allow them to be unfolded and viewed by researchers without difficulty or removal of the tag. If a small map is fragile or torn, put it in a polyester enclosure. Endorse larger folded maps and plans with their TNA reference in HB pencil and place in to an acid-free envelope. Mark the cover of the envelope in HB pencil with a brief note of the contents (e.g. ‘2 maps enclosed’) and then tag the envelope in place in the file. Ensure it is possible to remove the contents without difficulty. If it is necessary to use more than one envelope, number the maps/plans on the back. The front of the envelope should reflect the contents, e.g. ‘Contains plans 1-5’, ‘Contains plans 6-8’. Photographs and negatives within the body of a file Endorse all photographs and place them in polyester enclosures; then tag the enclosures in the place where the photograph originally sat in the file. Only one photograph should be placed into each polyester enclosure so that researchers can see the back as well as the front, without removing the photograph. Do not punch new tag holes in photographs. Polyester enclosures are the only suitable material for storing photographs. They are used as they enable viewing and handling of the photograph without having to remove it from the enclosure; this limits the damage to the sensitive surface of the photograph. Endorse negatives and photographic slides and place into acid-free envelopes that have passed the ISO18916:2007 Photographic Activity Test (PAT) for enclosure materials. Interleave individual negatives with silversafe paper. Tag the acid-free envelope into the file where the negatives or slides originally sat. Do not undertake repair work on photographs or negatives. Instead, note the need for repair on the e-Transfer (AA2) form for the attention of Collection Care. If a file contains a photograph of a distressing nature it is important that you attach a warning sticker to the front of the file. The National Archives supplies these stickers and they are available from your Transfer Adviser. Other preparation requirements Writing The National Archives’ reference (the TNA reference) on the front cover Write The National Archives’ reference (in practice known as the ‘TNA reference’) on a blank space on the cover, ensuring you do not obscure any text. Ideally you should write it near the centre of the cover if there is a blank space available. Do not write the reference on top of labels stuck to the front cover, as these may become loose over time. If there is no space for the reference to be written clearly on the original file cover, put the file into a 4-flap folder and write the reference on the front cover of the 4-flap folder. The correct format for a TNA reference is: departmental code (in upper case), then a space, then series number, then a slash (/), then the piece number, for example: HO 405/1784 Write the reference on the cover in characters about 2cm in height, horizontally, and in a single line. Letters and numbers should be clearly legible and unambiguous. Tips for writing references: - 1s and slashes should be clearly differentiated (the latter should be slightly sloping and longer) - write numbers plainly – avoid crossed 7s and 0s as they may appear to be crossed out numbers - be careful with 1s as they can resemble other numbers. For example 1s should not resemble 2s Write the TNA reference in chinagraph pencil. Chinagraph pencil can be hard to correct if you make a mistake so if you have any doubt about piece numbers, write them in ordinary pencil first and check them with your Transfer Adviser. When they are confirmed write over them with chinagraph pencil. If you do make any mistakes in chinagraph pencil, correct them as clearly and neatly as possible. Tagging A good standard of tagging is important for the preservation of a file. Pages can easily become separated and lost if they have not been tagged in. Tags must be loose enough to enable the file to be fully opened at any point but not so loose that the file becomes unwieldy. Tags which are too tight restrict access to the information within the file, which leads to researchers forcing pages open and accidentally damaging the file and potentially creating loose pages. Checklist for tagging: - do not use self-adhesive tag hole reinforcers - if it is necessary to punch new tag holes, they should normally be about 2cm from the edge of the page. They should not damage text or cause pages to protrude from the file folded pages should be tagged in a way that allows them to be easily unfolded - documents which cannot be satisfactorily tagged should be put in polyester enclosures or acid-free envelopes - usually a single treasury tag should be used for each file - the tag should be tagged through the back cover and through the contents but not through the front cover. If a file is put into a 4-flap folder, the tag should go through the back covers of the file and 4-flap folder, but not through the front covers of either. - multiple interlinking tags should not be used - do not loop tags around the spine of the file - ensure tags are long enough for the file to be opened at any point in its contents, with both sides lying flat on a surface and absolutely no strain placed on the tag holes. They should allow each page to be turned easily and viewed without restriction - if you are unsure about the length then choose a tag that is slightly too long rather than one that is too short The following are recommended tag lengths for tagging files when files are tagged through the back cover and through the contents but not through the front cover. The contents of the file should be measured at its thickest point. This may be at the tag hole, but could be elsewhere if the file has a bulky object in it, such as an envelope. If it is not clear which tag length to use, use the longer of the two. \| File thickness at thickest point \| Recommended length of tag \| \|----------------------------------\|---------------------------\| \| 0.1 – 0.9cm \| 5cm \| \| 1.0 – 1.9cm \| 7cm \| \| 2.0 – 2.9cm \| 10cm \| \| 3.0 – 3.9cm \| 12.5cm \| \| 4.0 – 4.9cm \| Splitting the file is recommended; where this is not possible use 15cm tags \| \| Greater than 4.9cm \| Split the file \| If the contents make the file unwieldy or unstable then it may be advisable to tag through the front cover as well as the back cover and contents to give more stability to the file. In such cases longer tags will be required than when tags only run through the back. Thermal paper Copies produced through thermal processes (including some but not all fax papers) are often unstable as the text can fade and disappear. There is currently no method of preventing this potential fading as it is due to the chemical makeup of thermal paper. Consequently, specific measures are required for preserving the information found on thermal paper. Thermal paper must be photocopied and the photocopy tagged in front of the original document in the correct place in the file. Do not discard the thermal paper – keep it as it proves the authenticity of the copy. Tips for dealing with thermal paper: - thermal paper can be identified by its shiny, smooth surface which often shows grey/silver marks where the paper has been abraded or creased - shiny, smooth fax copies with a cactus logo on the back do not need to be photocopied as this indicates an electrostatic process known as Electrofax which is much more stable and doesn’t fade - it is sometimes hard to identify thermal paper, so if there is any doubt whether pages are thermal or not, photocopy them as a precautionary measure Preparing records for transfer to The National Archives Three Thermal Paper Identification Factors - Fax paper - Possibly thermal paper - Is the text side shiny? - Shiny paper with grey/silver scratches should be copied - Are there grey/silver scratches on the paper? Examples of thermal paper Example of Electrofax paper with cactus marking Original envelopes within files Some files have original envelopes containing enclosures. In these cases: - ensure the envelope is securely tagged and will not become loose - remove the contents from the envelope and tag it in front of the envelope - if the contents requires it, use polyester enclosures or acid-free envelopes to protect the contents, as you would with other documents Badly damaged and fragile file covers Place files and reports with badly damaged or fragile covers in new 4-flap folders. Never throw the original cover away as it usually contains valuable information. It is only necessary to tag the file through the back of the 4-flap folder. Write the TNA reference on the front cover of the 4-flap folder in chinagraph pencil. You do not need to write the file title, former reference or any other information that appears on the original file cover on the new cover. Stickers and labels on file covers Do not put stickers with barcodes and references on the front covers of files. It is important that stickers do not hide important text on the cover, especially the original title and former reference of the file, which cataloguers, Transfer Advisers and researchers all need to be able to see. It is better for these stickers to be attached to the outside of the back covers. For closed files, attach a small green CLOSED UNTIL label to the front cover. Ensure this label does not obscure the text. For files containing distressing photographs, attach warning sticker to the front cover. Again ensure that these stickers do not obscure text. Ask your Transfer Adviser if you need warning stickers as these are provided The National Archives. Splitting thick files Split (divide) a file into parts if it too thick and unwieldy. Splitting the file makes it more manageable and reduces the risk of it being damaged by researchers because it is heavy and difficult to handle. In most cases it is only necessary to split a file when it is 4-5cm (1.5-2 inches) thick or thicker. If it is between 2.5 and 4cm thick, usually a longer tag is all that is required. When considering whether a file needs to be split, take into account the final thickness of the file. Bear in mind that if the file needs polyester enclosures and acid-free envelopes then these will add to the file's final thickness. Occasionally, a file under 4-5cm will need to be split, usually because of the condition of the contents. Your Transfer Adviser will advise you if this is necessary. Files are known as 'pieces' and the parts a split file is divided into are known as 'items' for the purposes of storage and cataloguing. Checklist for thick and split files: - split files which are extremely thick into two or more parts (items) as necessary - split files at a sensible point, e.g. between two documents rather than in the middle of a document - items should normally be of a fairly equal thickness - the first part (or front of the file) becomes item 1, the second item 2 and so on - the first part of a split file will be housed in the original file cover. The other items (made by splitting the file) will need to be tagged into new 4-flap folders. Tag only papers taken out of the original file into the new 4-flap folders - write the relevant TNA item reference on each item. This consists of the TNA reference, followed by a slash and then the item number. For example, a whole file might be ABC 1/23, but if it is split into items, the items will be ABC 1/23/1, ABC 1/23/2, ABC 1/23/3, etc. Do not write ‘Part 1’, ‘Part 2’, ‘End’ or ‘Item’ on the file cover ✓ splitting a file will affect the item number which needs to be used for any closed extracts removed from the file, the closed extract will always come after the split items (e.g. if a file has been split in two because of thickness, the closed extract will need to become item 3 instead of item 1). If there is a discrepancy with the item number shown on the Freedom of Information (FOI) Schedule, consult with your Transfer Adviser, so that the item number of the schedule can be amended Example of a file correctly split and referenced Tying up files In most cases tying up files with cotton or linen tape is unnecessary. The tape will cut into the file cover over time, damaging the file, rather than protecting it. A file should only be tied with cotton tape if it is abnormally bulky or uneven. Seals within the body of a file Normally seals within the body of a file should be left as they are and not put into polyester enclosures. The best protection for seals within the body of a file is the paper surrounding it which is more forgiving than a polyester enclosure. Therefore placing seals into polyester enclosures increases the risk of damage to the seal rather than decreases it. Putting them in polyester enclosures increases the risk of damage rather than decreases it. Ask your Transfer Adviser in cases of large embossed seals, pendant seals or seals outside files. Floppy disks, CDs, microfiche in files Inform your Transfer Adviser immediately if a file contains digital or microform materials, such as CDs, floppy disks, magnetic tape, microfiche, microfilm, etc. Ensure you tell them about the type of material, its contents and its likely informational value. Records contained on digital storage formats that are selected for permanent preservation will need to be transferred to The National Archives via a different process to the one used for paper records. Contact your Information Management Consultant for advice on this process. Microform outside of files Microform is a term used to describe microfiche and microfilm materials. Consult your Information Management Consultant or Transfer Adviser if you have any microform. Unusual collections of papers Loose bundles of papers Hole-punch and tag loose bundles of papers into 4-flap folders in order to secure them. Punch the holes in the top left hand corner 2cm from either edge ensuring that the holes don’t obliterate any text or information. The folder should be an appropriate size to hold the papers and other preparation work should be undertaken as normal. Consult your Transfer Adviser if punching holes and tagging might damage the papers, or seems in any way impractical or inadvisable. Ring-binders Ring-binders are usually made of plastic and metal, both of which will degrade and damage the contents of the binders. They are also usually bulky and wasteful of valuable storage space. Place the contents of ring-binders in 4-flap folders, prepared, tagged and referenced in the normal way. If possible tag through the original binder holes using two nylon-ended treasury tags; this is to avoid the need to punch new holes. Discard the ring-binder but preserve any significant writing on the binder that is not written elsewhere. Ideally this should be preserved and tagged on top of the contents. Consult your Transfer Adviser if you are unsure how to do this. Volumes Write The TNA reference in chinagraph pencil directly onto volume covers if possible. If the cover is dark, use white chinagraph pencil. However, if the cover is uneven or otherwise unsuitable and this is not possible, write the reference in chinagraph pencil on the inside of the volume’s front cover (or on the page opposite if there is no writing on that page). Place bound volumes in poor condition in 4-flap folders prior to boxing. If there are loose pages in a volume: - leave the pages in their original place - endorse them with their TNA reference in HB pencil - do not tag them in - number all the loose pages in the volume in the top right hand corner in HB pencil in case pages fall out, get mixed up or become lost - place any fragile pages in polyester enclosures - tie the volume containing the loose pages with cotton tape and place in an individual box; if this is not possible, it should be placed in a 4-flap folder Remember to support volumes and other books at all times to avoid damaging their spines. Maps and plans Treatment of individual maps and plans This section deals with maps and plans which do not form part of files, reports or volumes, but which are separate, individual entities. Transfer maps and plans, reports or volumes that do not form part of files in the format in which they have previously been stored: - folded maps and plans should be transferred folded, not rolled or flattened - maps and plans which have been stored flat should be transferred flat, not folded or rolled - rolled maps and plans should be transferred rolled, not folded or flattened Do not attempt to repair torn maps. Note the need for repair on the e-Transfer (AA2) form for the attention of Collection Care. Folded maps and plans Place folded maps and plans in 4-flap folders and write the TNA reference in chinagraph pencil on the cover. Write the reference in HB pencil twice on the back of each map or plan in opposite corners. Preparing records for transfer to The National Archives Flat maps and plans Insert flat maps and plans (which are often large) into map folders. Speak to your Transfer Adviser for advice on the size, construction and materials of the folders. Often several maps can be put in the same folder. The exact number will depend on the map size, thickness and material. The contents shouldn’t be thicker than the spine of the map folder. Write the TNA reference in chinagraph pencil on the cover of the folder. If the folder contains several maps, the range of references written should be reflect this (e.g. ABC 7/20 – ABC 7/30). Write the reference twice on the back of each map or plan in HB pencil on opposite corners. Rolled maps and plans Write The National Archives’ reference (TNA reference) twice in HB pencil in opposite corners on the reverse of a rolled map or plan. Then roll the map onto the outside of an archival tube and secure it there with broad linen tape and tie with an easily released bow. Ensure that the tube is longer than the map so the map edges are not damaged and that the tube diameter is wide enough that the map is not rolled too tightly. Then insert the tube into a cotton or linen bag and write the reference on the top and bottom of the bag in chinagraph pencil. A label bearing The TNA reference should also be fixed at the opening of the bag. Example of a map rolled onto the outside of an archival tube, secured with linen tape and placed into cotton or linen bag Photographs and similar material Individual photographs Endorse individual photographs that are not included as part of a file in HB pencil with their TNA reference and place them into polyester enclosures and then into 4-flap folders. Other photographic material Consult your Transfer Adviser about glass plates, photograph albums, x-rays, etc. as these require special attention and preparation advice. Preparing records for transfer to The National Archives Video and audio Consult your Information Management Consultant about analogue film and video material as these are archived by the British Film Institute (BFI) Archive, not The National Archives. Similarly, analogue sound recordings are archived by the British Library Sound Archive, not The National Archives. Do not approach the BFI or British Library directly. Objects, artefacts and seals Artefacts, large seals and other 3D objects require expert preparation advice on a case-by-case basis so for any of these items please consult your Transfer Adviser. Boxing and Box Labelling Packing boxes Box size All boxes should meet The National Archives’ standards and be the correct size to fit the records. They should allow for the records to be packed and extracted easily. Always check the exact size of the records you wish to transfer before ordering boxes. Allow a finger width on either side of the length and width of the records to allow the documents to be removed safely. Records will become damaged if an incorrect box size is used. If a box is too large for the records they hold it will result in the records being bent and distorted and if boxes are too small for the records they hold it will result in the records being crushed, folded and frayed around the edges. Carefully consider internal measurements when ordering boxes as suppliers often quote external rather than internal dimensions. These can differ by up to 5mm; if in doubt check with your supplier. Note that suppliers can make boxes to order. Fullness when packing Boxes should be overfilled by approximately 1cm so that the files are very slightly compressed when the lid is on (as shown in the picture below). This will prevent documents from moving around inside the box when in transit. Bubble wrap or corrugated cardboard should not be used as permanent fillers in boxes. Boxes should always be the appropriate size. However, corrugated cardboard or bubble wrap can be used in situations where boxes can’t be filled to the appropriate level and there’s a danger of documents moving around in transit. Record the use of all cardboard or bubble wrap on the e-Transfer (AA2) form so the material can be removed on arrival at The National Archives. Preparing records for transfer to The National Archives Example of a box filled to the correct level Packing bound volumes Pack volumes so that the spine rests on what will become the bottom of the box when it is placed on a shelf. This prevents the pages from pulling against the spine and damaging it. Packing uneven records Pack records that have an uneven thickness (e.g. files that are thicker in the corner where they are tagged) alternatively top to bottom and bottom to top, so the stacking of the files remains even and level throughout. Tying boxes Secure all boxes with cotton or linen tape. The tape should be long enough to be tied around the box lengthways, allowing for a looped handle to be tied at the front and a bow or shoelace knot to be tied at the back. As a rule of thumb, each standard box requires tape four times the length of the box to create the tie. To tie up a box: fold the length of cotton tape in half and make a looped handle at the closed end, before wrapping the tape around the box and tying a shoelace knot at the open end. Consult your Transfer Adviser if you are unsure how to do this. Boxes containing dummy cards When a whole piece is closed, retained, missing, or is ‘Number not used’, a dummy card must be put in the box where the piece would be if it was a normal open piece. Ensure that adequate space is left in the box for the piece to be placed in the box once it becomes open and available to the public, without the box becoming overfull. Labelling boxes TNA reference labels for boxes You should get all of the box labels you require from The National Archives through your Transfer Adviser. Labels showing departmental lettercodes and series numbers should be white with red text. Labels showing piece/item numbers should be white with black text. Attach labels to the smallest side (area) of the box lid when placed vertically on a shelf with the lid opening from left to right. Labels should be stuck on the left hand side without covering old labels or staples. Department codes should be stuck at the top left hand side with series numbers directly underneath. Piece numbers should be stuck on the bottom left hand side. They should indicate the first piece in the box and the last piece in the box, not every single piece (e.g. 1 and 5, not 1, 2, 3, 4, 5). If a box contains only one piece, only one piece number is required (e.g. ‘10’ not 10-10). If a piece has been split into separate items which are divided between two boxes, both piece and item labels must be stuck onto the boxes. However, if all the items are in the same box, a piece number label is all that is required. Ensure that you print out whole numbers on a single label (e.g. ‘200’ should be printed onto a single label, and not 2, 0 and 0 stuck together). Closure labels for boxes Normally, closed pieces and items should be transferred to The National Archives in separate boxes or bags from open records. This is a security measure and helps to avoid open and closed records becoming mixed up in transit. Once at The National Archives, the closed records are removed and stored in a separate, more secure location. However, occasionally closed pieces may be transferred in the same boxes as open records (rather than in separate boxes or bags). This usually occurs when there are numerous closed pieces or when the whole transfer consists of closed pieces. This type of transfer needs to be agreed in advance with The National Archives so please consult your Transfer Adviser. Most boxes do not require closure labels: - boxes containing only open pieces do not require closure labels - boxes containing a mixture of open pieces and dummies do not require closure labels - boxes and bags for transferring closed pieces and items separately from open pieces do not require closure labels In the exceptional cases when closed pieces are transferred in the same boxes as open records, green closure labels are required for the boxes, as a security measure. If a box contains only closed pieces and the closed pieces all have the same opening date, a CLOSED UNTIL label needs to be attached to the box and filled in with the opening year in chinagraph pencil. If a box contains a mixture of closed pieces and open pieces, or closed pieces with different opening dates, a CLOSED UNTIL VARIOUS DATES UP TO label needs to be attached to the box and filled in with the latest opening year in chinagraph pencil. If closed pieces are transferred in the same boxes as open records, dummies are not required for the closed pieces. Boxes for records being stored off-site Some records are stored in additional National Archives' storage facilities in Cheshire. If it is known that the records you are preparing are going to be stored at the off-site storage facility then different boxing and labelling requirements may apply. Please consult your Transfer Adviser if you know that the boxes you are preparing are going to be stored at the off-site storage facility. Box specification All new types of packing must be approved by The National Archives before they are used. Construction - boxes must consist of both a case and a lid. Case and lid must be cut from one piece of board or formed from the same piece of board, e.g. clamshell box. The depth of the lid must be the same as the depth of the case of the box - the most important criteria of a box sent to The National Archives is strength. All boxes must withstand a standard industry edge-crush-test (ECT) at a minimum of 5 kN/m Context of use - It is important to know what types of material will be stored in the boxes, if the records are large or heavy, or of high archival value. Different grades and types of box board might be required depending on the context of use. Grades of box board There are three grades of board suitable for use at The National Archives. This table will help you determine the grade of board required for your transfer: \| Board Grade \| Board Specification \| When to use it \| \|-------------\|---------------------\|----------------\| \| Grade 1 Permanent \| ✓ 100% chemical pulp\ ✓ pH 7.5 – 10\ ✓ kappa number should not exceed 5, or else less than 1% lignin content\ ✓ alkaline reserve between 2%-10%\ ✓ neutral internal sizing (EVA or AKD)\ ✓ no optical brighteners\ ✓ no plasticisers\ ✓ no metal particles, waxes, residual bleach, or other components that could lead to degradation when in immediate contact with the board \| Required for boxing materials of high archival or intrinsic value\ Also recommended, but not required, for boxing standard archival records \| \| Grade 2 Durable \| ✓ 100% chemical pulp\ ✓ May be laminated\ ✓ pH 6.5 – 10 \| For boxing standard archival records \| \| Grade 3 Photo \| ✓ 100% chemical pulp\ ✓ pH 6.5 – 7.5\ ✓ kappa number should not exceed 5, or else less than 1% lignin content\ ✓ may contain fillers as long as pH is as specified\ ✓ less than 0.0008% reducible sulphur\ ✓ neutral pH EVA polymer adhesive where laminated\ ✓ no optical brighteners\ ✓ no plasticisers\ ✓ no metal particles, waxes, residual bleach, or other components that could lead to degradation when in immediate contact with the board\ ✓ pass the Photographic Activity Test (PAT) \| Recommended for boxing photographs, negatives and other photographic material \| Types of box board - all grades of board are available as two types of board. Please consult the table below to determine the best type of board for your transfer: \| Type of board \| Cross section of board \| Benefits of use \| When to use it \| \|-----------------\|-------------------------\|------------------------------------------------------\|-----------------------------------------------------\| \| Full board \| \| ✓ most durable board type \| For most transfers full board is preferred \| \| \| \| ✓ brass wire stitching increases durability \| \| \| Corrugated board\| \| ✓ rigid in larger sizes \| If boxes are to be stacked in storage \| \| \| \| ✓ good for stacking \| If records are larger and/or heavier than normal \| - both full board and corrugated board are available to be delivered flat packed from your supplier. If quantities above 60 standard boxes are required it might be cheaper to order boxes flat packed and assemble them on site - speak to your Transfer Adviser if you require further assistance with box requirements Access Issues Background to access issues relating to physical preparation There are a number of reasons why records might not be available to the public when they are transferred to The National Archives: - the records may be closed under the Freedom of Information Act 2000 - they may be retained by the transferring department under section 3(4) of the Public Records Act 1958 - they may be temporarily retained by the transferring department - they may be missing at transfer - they may be ‘Number not used’ Closure under the Freedom of Information Act and retention under section 3(4) must be approved by the Secretary of State before the closure and retention is valid. Approval is not always granted to government departments applying for permission to close or retain. Sometimes applications are rejected. Therefore it is best not to carry out closure and retention work on records (such as completing dummy cards or making redactions) until the Secretary of State has given approval. Dummy cards Reasons to use dummy cards Insert The National Archives' dummy card in place of whole records (pieces) which are removed or absent from boxes, because they are closed, retained, missing or 'Number not used'. Dummy cards also need to be inserted and tagged in place of whole pages or documents (extracts) removed from pieces, because they are closed or retained. Dummy cards are not used for redactions. Dummy cards show researchers that something has been removed, and give a general indication of why the record is not present. They also enable the original record to be inserted in the right place when it is no longer sensitive or has been found. Dummy cards are available through your Transfer Adviser. Filling in dummy cards Complete dummy cards clearly and accurately. It is important there are no mistakes or corrections. If you do make a mistake when filling out a dummy card, replace it with a fresh one. Complete dummy cards in pen and ensure that any pencil markings have been completely rubbed out. The following information should be included on a dummy card: - TNA reference - in the case of extracts, some brief text identifying what the extract is (e.g. ‘folio 28’, ‘letter dated 12/11/1984’) - the FOI exemption number(s) (if applicable) - the date and signature of the individual completing the dummy card opposite the appropriate box, indicating if the record is closed, retained under section 3(4) temporarily retained, missing at transfer or 'Number not used' There are instructions on filling in such information on the back of the dummy card. Do not write any information describing the reason for closure or retention on the dummy card. Example of a Dummy card completed for closure Use of dummy cards to replace whole pieces When a whole piece is not open and available to the public a dummy card must be put in its place in the box where the piece would be if it were open. Retained pieces are held by the government department, not transferred. Closed pieces are transferred to The National Archives in separate boxes or bags. Ensure that adequate space is left for the piece to be placed back in the box once it becomes open and available to the public, without the box becoming overfull. Use of dummy cards to replace whole parts of records (extracts) When a document (a page or consecutive sequence of pages, or a whole photograph, or some other whole part of a file) is removed from a piece because the document is closed or retained, a dummy card should be inserted and tagged in its place. If various documents are removed from different (non-consecutive) places in a piece, then separate dummy cards will need to be inserted in each place. The dummy card should be completed in a similar way to a ‘whole piece’ dummy card, except that an item number may need to be added after the piece number (if extracts are closed and have an item number). Also, extract details need to be added in the ‘Extract/Item details’ box. The extract details should try to identify the extract in a relatively simple way e.g. ‘Folio 28’, ‘2 photograph albums’. If a whole document is removed from a volume, a dummy card should be inserted in its place, but not tagged or bound in. The volume should be tied with cotton tape or placed in a 4-flap folder. Redactions What are redactions? Sometimes pages inside pieces are partially closed or retained (e.g. only a paragraph, a few lines, or a name may be withheld from the public, rather than the whole page). This is called redaction. Making redactions Take the following steps when redacting information from an original document: - remove the original documents containing sensitive information from the piece and insert temporary place holders to mark their positions - make a photocopy of the original documents - place the original documents in a 4-flap folder - black out or blank out the sensitive wording on the photocopies - re-photocopy the photocopies you have just blanked out. This is done to safeguard against the possibility of the sensitive information remaining decipherable, as sometimes blanked-out words can still be read if held against the light. These second photocopies are the redacted copies that will be used as replacements in the file - either shred the first photocopies or place them alongside the original documents in the 4-flap folder • stamp each redacted replacement with an appropriate stamp, depending on whether information is closed under an FOI exemption or retained under section 3(4) of the Public Records Act 1958. Place the redacted copies back in the parent piece at the positions marked by the place holders. Remove the place holders from the piece • carefully safeguard the original documents. They will either remain with the transferring department or be sent to The National Archives as closed items Example of a document with closed information redacted and stamped Visit our website for further guidance and information on redactions: nationalarchives.gov.uk/documents/information-management/redaction_toolkit.pdf Making redactions within bound volumes Steps for redacting pages within bound volumes: 1. Carefully remove the original page from the bound volume. Only remove one page at a time. Ideally, use a scalpel to cut the page in a straight line as close to the text as sensibly possible. If the text runs close to the spine there needs to be a minimum of 12mm from the centre of the volume to the cut. If this isn’t possible because the text doesn’t allow for 12mm then speak to your Transfer Adviser. When using a scalpel ensure that you protect the pages under the one you are removing. 2. Redact the sensitive information using the normal redaction process described on page 35. 3. Endorse the original and redacted copy with a TNA reference in HB pencil and insert the copy into the bound volume in its proper place. Place the original page in a 4-flap folder 4. Number all pages in the volume in the top right hand corner in HB pencil in case pages fall out, get mixed up or become lost 5. The volume containing the loose pages should be tied with cotton tape and placed in an individual box; if this is not possible, it should be placed in a 4-flap folder Stamps used on redacted pages The stamps used for redacted pages must indicate that the page is a copy (of the original, unredacted page) and that it has been either closed under a particular exemption (section) of the Freedom of Information Act or retained under section 3(4) of the Public Records Act 1958. In other word the stamps must contain the following information: ``` THIS IS A COPY. ORIGINAL CLOSED UNDER THE FREEDOM OF INFORMATION ACT 2000 EXEMPTION .... [exemption number/numbers to be inserted] ``` ``` THIS IS A COPY. ORIGINAL RETAINED UNDER SECTION 3(4) OF THE PUBLIC RECORDS ACT 1958 ``` If government departments currently use different stamps, The National Archives will need to assess if these are acceptable to use. Preparation of closed records for transfer Piece and item closure labels and closed item warning tape Prepare closed records to the same standard as other records being transferred to The National Archives. In addition, stick CLOSED UNTIL labels to their covers. Complete the labels using chinagraph pencil with the year when the piece will be open and ensure that the labels don’t obscure any text on the cover. If a piece has been split into items because of thickness, all the items should have CLOSED UNTIL labels on them. Closed extracts and redactions should be put into separate 4-flap folders. Each of these folders is an 'item', and should have a TNA reference with an item number written on it, matching the FOI schedule. Sometimes (for example when extracts are closed for different periods) there will need to be more than one closed item folder. Again the item references should match the FOI schedule. Preparing records for transfer to The National Archives The closed item folders should also have CLOSED UNTIL labels and black and yellow warning tape stuck to them. (Black and yellow warning tape should never be applied to whole pieces.) ![Example of a correctly prepared closed item](image) Calculating the relevant dates for CLOSED UNTIL labels The closure periods of pieces and items must be approved by the Secretary of State before they are valid. The closure period often ranges between 40 and 100 years, and is applied from the end year of the file. The year which should be written on the CLOSED UNTIL label is the year that the file will become open, not the last year when it is closed. For example if a file is dated 1983-1987 and is closed for 50 years, it will still be closed in 2037 and will become open in 2038. Therefore 2038 should be written on the CLOSED UNTIL label. Another way of calculating the record opening year is to add the end year of the file and the closure period together and then add 1 (1987 + 50 + 1 = 2038). Boxes for transferring closed records Normally, closed pieces and items should be transferred to The National Archives in their own separate boxes or bags, not put into the boxes containing the open records. This is a security measure, so that open and closed material does not get mixed up and closed material shown to the public by mistake. The closed material will not stay in these separate boxes or bags after transfer to The National Archives. It will be taken out and transferred to secure storage. Therefore the boxes for transferring closed material can be old, not of archival standard, and merely need to have details of the contents written on the front, rather than using labels. In exceptional circumstances, closed pieces may be transferred in the same boxes as open records. These boxes require The National Archives’ reference labels and closure labels. NATO papers and Cabinet Office papers Departments should remove any NATO papers from their records. This is because they are not public records, even when they are kept in UK government files. NATO retains ownership of its papers, as agreed with its member states. Therefore, all copies of NATO papers should be removed and destroyed. Copies of Cabinet and Cabinet Ministerial and Official Committee documents in the files of other government departments should be removed and destroyed. If they are an integral part of the file, any release needs to be cleared by the Cabinet Office. Cabinet and Cabinet committee documents are released in Cabinet Office’s own records, once cleared for sensitivity, and will be available at The National Archives. In such cases, specially prepared dummy cards are used to replace the papers removed and destroyed. Consult your Transfer Adviser if you are in any doubt. Scanned versions of minutes and memoranda of the Cabinet are available online in The National Archives’ catalogue, Discovery, in series CAB 128 and 129 respectively. It is therefore possible to check whether Cabinet Office have cleared specific Cabinet papers for release by searching for them on Discovery. Previously retained and previously missing pieces Any previously retained or previously missing pieces or items which are being transferred to The National Archives should be prepared to the same standards as any other records, and should be accompanied by an e-Transfer (AA2) form like any other transfer of records. It is important they do not bypass the physical preparation process. Documentation The e-Transfer form (AA2) Records being transferred to The National Archives must be documented by an e-Transfer form (also known as an AA2). The e-Transfer (AA2) form is available to download at: nationalarchives.gov.uk/documents/information-management/cat_aa2.rtf One e-Transfer (AA2) form is used per series. Once completed, the form should be sent to your Transfer Adviser as an email attachment. It is extremely important that the e-Transfer (AA2) form is completed fully and accurately because: - it details exactly what material is being transferred and what is not Preparing records for transfer to The National Archives - it contains information that appears on The National Archives’ catalogue, Discovery (e.g. whether the series is accruing or not, whether descriptions are open or not) - it alerts The National Archives’ Accessions Team and Collection Care staff to the state of the records and informs them of whether there are particular physical preparation issues which still need to be resolved or any hazardous substances present Any records which are closed under the Freedom of Information Act, retained, missing, or ‘Number not used’ need to be documented on the e-Transfer (AA2) form. Any records containing special or non-standard objects e.g. maps, photographs or newspapers also need to be recorded on the form, so they can be examined. Any records which are in need of inspection and treatment by Collection Care also need to be recorded, with further information if it is useful. This includes records which are severely damaged, deteriorating materials or difficult conservation issues, beyond the scope of the preparation work expected of a transferring department. Series Level Time Plan (SLTP) The Series Level Time Plan is the timetable for your department to transfer records to The National Archives. Ensure that you speak to your Transfer Adviser if there is a considerable amount of conservation work needed in a transfer or if the transfer contains unusual formats or materials. This is because the time it takes to complete this work could have an impact on the Series Level Time Plan and this in turn could affect the timeline for transferring and releasing records to the public. Consult your Transfer Adviser if you need more information about the Series Level Time Plan. Transfer Delivery form In order to arrange the transfer of a series of records which have been examined and approved by your Transfer Adviser, it is necessary to complete a Transfer Delivery form. The completed form acts as a summary of the records to be transferred to The National Archives. A Transfer Delivery form must be completed and emailed to your Transfer Adviser before a transfer can be made. The Transfer Delivery form can be downloaded from The National Archives’ website: [nationalarchives.gov.uk/documents/information-management/transfer-to-tna-delivery-form-2010.doc](nationalarchives.gov.uk/documents/information-management/transfer-to-tna-delivery-form-2010.doc) Once your Transfer Adviser is satisfied that the form has been completed properly, a member of the Accessions Team will contact the relevant person named on the form to make arrangements for transfer. After the accessioning process is completed, documents will become available to readers. Consult your Transfer Adviser if you are unsure about any aspect of the e-Transfer (AA2) and Transfer Delivery forms or the SLTP. The National Archives’ cataloguing template It is helpful, but not required, for government departments to add information to the ‘Comments field’ of The National Archives’ cataloguing template for documents that are in poor condition and may require the attention of Collection Care. Examples of comments might be ‘Damaged pages’, ‘Glued pages’, ‘Sticky tape on the cover’ or that a record is ‘Extremely fragile’. Although this information will need to be transferred to the e-Transfer (AA2) form later in the transfer process, it is helpful to add it at this stage as this can assist the Transfer Advisers to check the physical preparation of the records more quickly therefore speeding up the transfer process. If this type of information is added, The National Archives will normally remove it from the cataloguing template before the data is loaded onto The National Archives catalogue, Discovery. Suppliers of materials All packing materials (boxes, map or banner bags) must be approved by The National Archives. The National Archives must approve all new types of packing materials before they can be used. Consult with your Transfer Adviser to check that the correct materials are being used. The National Archives does not operate an Approved Suppliers system but we are aware that the suppliers listed below are able to provide some, or all, of the required types of boxes and other archival materials. This list is not exhaustive and there are likely to be other suppliers who would be able to meet The National Archives’ standard specification for materials. Suppliers of boxes and archival materials Conservation by Design, Timecare Works, 5 Singer Way, Woburn Road Industrial Estate, Kempston, Bedford MK42 7AW Email: [email protected] Website: [http://www.conservation-by-design.co.uk](http://www.conservation-by-design.co.uk) Conservation Resources Ltd., Unit 15 Blacklands Way, Abingdon-on-Thames, Oxon OX14 1DY Email: [email protected]. Website: [http://www.conservation-resources.co.uk](http://www.conservation-resources.co.uk) Preparing records for transfer to The National Archives Edward Adcock, Packaging and Display Section, Bodleian Library, 35 Nuffield Way, Abingdon, Oxon OX14 1RL Email: [email protected] Website: http://www.bodleian.ox.ac.uk/using/pads G Ryder & Co Ltd., Denbigh Road, Bletchley, Milton Keynes MK1 1DG Email: [email protected] Website: www.ryderbox.co.uk Jansen-Wijsmuller & Beuns B.V., Postbus 166, 1530 AD Wormer, Netherlands Email: n/a Website: http://www.jwb-ceka.nl/contact.php Klug-Conservation, Furzey Leaze, Beech Grove, Fulbrook OX18 4DD Email: [email protected] Website: www.klug-conservation.com Preservation Equipment Ltd., Vinces Road, Diss, Norfolk IP22 4HQ Email: [email protected] Website: http://www.preservationequipment.com/Contact-Us Schempp, Solitudeallee 101, 70806 Kornwestheim, Germany Email: [email protected] Website: www.schempp.de Secol, 15 Howlett Way, Thetford, Norfolk IP24 1HZ Email: [email protected] Website: www.secol.co.uk T.G. Nuttall Packaging Ltd., Mellors Road, Trafford Park, Manchester M17 1PB Email: [email protected] Website: http://www.nuttall-packaging.co.uk Suppliers for other archival materials Please confirm the suitability of materials with The National Archives before purchasing. Evans Textile Ltd., Helmet Street, Manchester M1 2NT Email: [email protected] Website: http://www.evans-textiles.com Products: 20mm linen packing tape (http://www.evans-textiles.com/wp-content/uploads/2011/09/Section-13.pdf, product code 76382) Glossary Accessions Team: Staff at The National Archives responsible for arranging the accessioning of records into The National Archives' collection once the records have been approved for transfer by our Transfer Advisers. Chinagraph pencil: A waxy pencil originally used to write on china, glass or other hard surfaces, but ideal for writing references on file covers since it is fairly permanent and does not smudge easily. Available through listed suppliers. Collection Care: A department at The National Archives consisting of trained conservators and specialists in the physical preservation and repair of records. They can offer expert advice and help with difficult conservation problems. e-Transfer form: A form fully documenting the transfer of records within a series to The National Archives (formerly and still popularly known as the AA2 form). Endorsed: Usually used to mean written on the back (referring to the writing of the TNA reference on the back of loose documents within files in HB pencil). Endorsed can sometimes be used to just mean written on. Extract: A whole document within a piece which is retained or closed and not available to the public (e.g. a whole page, a number of consecutive pages or a photograph). Note, however, that sometimes both ‘whole’ extracts and redactions are referred to as ‘extracts’. Freedom of Information (FOI) Schedule: A document detailing records whose closure under the Freedom of Information Act has been approved by the Secretary of State. Glassine paper: A glossy, transparent, moisture-proof paper used traditionally to store photographs and photographic negatives. Glassine paper should be replaced by polyester enclosures. Information Management Consultant (IMC): A member of The National Archives' staff responsible for supervising and liaising with government departments, especially in the areas of records and information management, review and selection of records, and access issues. Each government department, organisation or body should know who their Information Management Consultant is and be in regular contact with them. Item: A part of a piece created during the transfer process – either one part of a file that has been split because of thickness, or closed extracts or redactions removed from the piece. Retention Instrument (RI): A document detailing records whose retention under the Public Records Act has been approved by the Secretary of State. Retentions approved before December 2015 were via an Instrument signed by the Lord Chancellor (known as LCIs). Parent piece: The piece which a document or item belongs to (e.g. 'Endorse the loose document with the corresponding reference of its parent piece'). Piece: A separate, individual record. For example, a file, a volume, a rolled map. Polyester enclosure: A chemically stable transparent plastic pocket used for the storage of photographs, torn pages, etc. Redaction: A part of a document within a piece which is retained or closed and not available to the public (e.g. a few words or a paragraph on a page). Series: A distinct, usually sequential, collection of records, normally created by a branch of a government department to deal with a particular area of work (e.g. a series of reports, a registered file series). Usually a corresponding series is created on The National Archives catalogue, Discovery, to hold the records of the departmental series selected for permanent preservation. Series Level Time Plan (SLTP): SLTP is the timetable used by government departments to proactively manage the efficient transfer of records to The National Archives. Use of the SLTP gives departments greater control of their transfers while allowing The National Archives a better oversight of the process. Silversafe: A material that has been developed for photographic conservation; an ideal interleaving paper for the storage of photographic material such as negatives. The National Archives reference (TNA reference): The alphanumerical reference code applied to pieces and items transferred to The National Archives, consisting of a department lettercode, a series number, a piece number and (if applicable) an item number, written in a prescribed way (e.g. CAB 130/45/1). Transfer Adviser: A member of The National Archives' staff who is responsible for advising government departments on matters relating to cataloguing, physical preparation and transfer of records, and for checking work in these areas meets The National Archives' standards.	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/4711-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 46, "total-input-tokens": 112776, "total-output-tokens": 17957, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 534, 1 ], [ 534, 4792, 2 ], [ 4792, 8340, 3 ], [ 8340, 12029, 4 ], [ 12029, 14044, 5 ], [ 14044, 15923, 6 ], [ 15923, 18340, 7 ], [ 18340, 19699, 8 ], [ 19699, 21099, 9 ], [ 21099, 21987, 10 ], [ 21987, 23190, 11 ], [ 23190, 25699, 12 ], [ 25699, 26552, 13 ], [ 26552, 28812, 14 ], [ 28812, 30180, 15 ], [ 30180, 32382, 16 ], [ 32382, 34861, 17 ], [ 34861, 35973, 18 ], [ 35973, 36319, 19 ], [ 36319, 38000, 20 ], [ 38000, 39809, 21 ], [ 39809, 41292, 22 ], [ 41292, 43466, 23 ], [ 43466, 45244, 24 ], [ 45244, 47156, 25 ], [ 47156, 49453, 26 ], [ 49453, 51396, 27 ], [ 51396, 53911, 28 ], [ 53911, 54990, 29 ], [ 54990, 56791, 30 ], [ 56791, 59197, 31 ], [ 59197, 60877, 32 ], [ 60877, 60923, 33 ], [ 60923, 61434, 34 ], [ 61434, 62488, 35 ], [ 62488, 63555, 36 ], [ 63555, 64105, 37 ], [ 64105, 65416, 38 ], [ 65416, 67079, 39 ], [ 67079, 69013, 40 ], [ 69013, 71213, 41 ], [ 71213, 73943, 42 ], [ 73943, 76157, 43 ], [ 76157, 77704, 44 ], [ 77704, 80261, 45 ], [ 80261, 82247, 46 ] ] }
e81fffe61ad6cdb70147163052660051cf18a71d	Mogden Sewage Treatment Works Thames Water October 2013 Introduction • Presentation will focus upon • Background • Odour reduction investment & results • Mogden STW quality improvements • Operational activities • Future work Mogden background - One of the largest sewage works in the UK - Built between 1931 and 1935 - Serves 1.9m people - Covers an area of 55 hectares - Over half of the works is powered by renewable energy generated on site - Significant investment in the last 10 years Historic odour complaints Odour reduction investment Significant investment undertaken between 2005 and 2010 What was involved? - Odour covers, control and abatement to: - East inlet screen house and west inlet area covered and odour controlled - Covering of SSTs & conversion to PSTs - Covering of 2 first fill storm tanks - Installation OCUs on east and west side Odour reduction results 2008 independent odour assessment was carried out to review the success of the odour abatement investment: Assessment concluded that odour has reduced from the STW: - by 82% compared to 2005 - by 90% compared to 2003. Annual odour assessment carried out each year during the autumn. 2013 odour assessment currently underway. Results known by November. Mogden STW Upgrade: 2010 to 2013 - Completed in April 2013 - Extended treatment capacity by 50 per cent - Odour abatement of new inlet work and primary tanks - Covering of the existing rectangular west side primary tanks - Significant reduction in use of storm tanks and discharges to the Thames - Communications reaching 10,000 residents - Project value £140m Mogden STW upgrade 2010 - 2013 Mogden. Use of storm tanks graph. Jan to June 2013 Operational activities • Odour monitors • Joint TW/LBH site inspections • Dedicated phone line • Residents meetings • Webpage Future • Complete western embankment landscaping • Continue reviewing odour emissions and abatement • Working with the community • Appraising ways to capture more renewable energy • ‘Bin it don’t block it’ campaign • Continue support for Sustainable Urban Drainage Schemes Questions ? How Mogden Works	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/4712-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 13, "total-input-tokens": 15034, "total-output-tokens": 1000, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 57, 1 ], [ 57, 237, 2 ], [ 237, 503, 3 ], [ 503, 529, 4 ], [ 529, 880, 5 ], [ 880, 1261, 6 ], [ 1261, 1623, 7 ], [ 1623, 1654, 8 ], [ 1654, 1706, 9 ], [ 1706, 1833, 10 ], [ 1833, 2107, 11 ], [ 2107, 2119, 12 ], [ 2119, 2135, 13 ] ] }
b87115a63afbdf8738a345467361d582978cbce1	SECRETS OF A GREAT PRESENTATION It is said that the brain is a remarkable thing: that it starts thinking complex intelligent thoughts from the moment you are born….to the moment you step up on stage to give a presentation. This doesn’t have to be true! Being an effective speaker is within the reach of all of us if you remember some basic ground rules. HOW YOU LOOK AND FEEL • Dress appropriately for the day of your speech. • Make sure your clothing is comfortable and that you can move about freely. • Smile! This will show your enthusiasm towards your subject. • Use gestures and utilize the space around you. Gestures should complement your words, don't just stand still and read from your notes. • Vary your vocal pace and tone. However fascinating your content, if your voice is monotonous and your delivery is stiff, you will lose the audience’s attention. ORGANISING CONTENT • Use quotations, facts, and statistics. These can be used to both compliment and reinforce your ideas. • Make use of metaphors. Metaphors can enhance the meaning of your message in a way that direct language cannot. • Tell a story. Everyone loves a story. This will make your presentation more memorable and less dull. • Have a strong start and finish. Audiences tend to remember what you begin your presentation with and what you finish on. If they remember anything from the middle this is a sign that you are being an effective presenter! • Use humour. But carefully: think about your audience. STRUCTURE YOUR PRESENTATION • Organise your ideas logically. This will allow your audience to absorb information more easily and to follow your train of thought. Make sure you bridge your ideas to make the presentation flow. • Pace yourself. Make sure that the majority of the time is given to the most important things you have to say in your presentation. Don’t get caught out by being given a ‘two minute warning’ when you’re still busy with your introduction. • Stick to what you know. Don’t talk about anything you’re unfamiliar with and can’t provide evidence for. Be disciplined about keeping to topics that you have the confidence and track record to deliver well. • Use visual aids to compliment your message. Visual aids should aid the message: make sure they are not distracting and do not shift focus from what you are saying. • Connect with your audience. Make eye contact. Interact with them by asking questions, seek volunteers, and maintain a conversational style. Holding a Question and Answer session at the end is very helpful to both answer the audience’s questions, and to let you know how you can improve next time. • Display confidence and poise. You may feel very nervous, but if you can display confidence, the audience will be confident in what you have to say. PRACTICE, PRACTICE, PRACTICE • Hone your speech by editing difficult words. Make sure it flows nicely. Time yourself to make sure you can stick to the slot you are given. • Practice in front of other people. Choose those who you know will be positively critical in their feedback: you need to know how to improve and will not do so if people are too polite to tell you the truth. • Listen to and critically analyse other speakers. What do they do well? What are their weaknesses? Use this analysis to improve your own performance. WANT TO KNOW MORE? http://sixminutes.dlugan.com/25-skills-every-public-speaker-should-have/ http://sixminutes.dlugan.com/story-factor-book-review-annette-simmons/ http://sixminutes.dlugan.com/metaphor-speech-examples/ DEVELOPING EFFECTIVE MESSAGES Much economic and social research is carried out with the intention of helping policymakers to develop better policies for better development. Sadly, very little of that research achieves its objective. One reason why research is not acted upon is that it is poorly communicated and does not reach its intended target audience. When communicating your research you need to respond to the following questions 1. Who do you want to reach? –> determine your target audience 2. Why do you want to reach them? –> determine your objective 3. How do you reach them? –> determine your communication channel 4. What are your main messages? In order to win, it is critical to define the terms of the battle Generally speaking, the goal of any research is to have an impact. You might want to communicate your findings to policymakers to influence their decisions, or to donors to secure funding for your research. To have impact, it must be tailored and communicated to the right people using the right communication tool. Research communications can take different forms; you may communicate your research through a policy brief, a press release, at a press conference, in a TV interview, or even through a social media tool. One step is common in all of the above: translating your findings and recommendations into key messages that can travel to reach your target audience. Messaging is about… What do you want to say, How you want to say it and Whom you want to say it to? To inform and influence your messages: • should be designed with audiences in mind and tailored to fit their needs, beliefs, expectations, actions and behaviors • should be memorable, engaging and limited in number • may need to answer the question ‘why should I care?’ Message Pyramid 1. Primary message (your soundbite): a statement of 1 or 2 sentences formulating what you would like to convey to your audience → be clear and concise, you will become compelling. This statement can be used in the elevator pitch 2. Main messages : 3-5 direct messages, each message should no longer be more than 35 words 3. Supporting points : these can be included in a press release or explained in a press conference How to make your message effective? There are different methods to develop effective key messages, one of which is the ‘A.I.D.A rule’.¹ This suggests that the message should: - A Attract the attention of the audience - I Raise the interest in the message or evidence - D Encourage a desire to act or to know more - A Prompt action and present a solution The message should therefore be visible, simple, clear, concise, relevant, credible and actionable. The message should not only provide the analysis and the cause of the problem, but also touch upon the importance of the change before it leads to the solution you are proposing. The solution is usually presented in the form of actions you ask others to take to bring about the change (key recommendations). As an alternative to the Message Pyramid, you may need to consider the following classification when developing your messages: 1. Key findings: the discovery of your research 2. Policy implications: what your findings have of relevance to the audience/policymakers 3. Key recommendations: what you think should happen to bring about the change \| POLICY IMPLICATIONS \| KEY RECOMMENDATIONS \| \|---------------------\|----------------------\| \| • What policy changes or actions do the results point to? \| • What does the researcher think should happen? \| \| • Supported by evidence \| • Supported by evidence \| \| • Must be actionable \| • Must be actionable \| \| • Less direct than recommendations \| • Describe clearly what should happen next \| \| • Useful when advice not requested or not welcome \| • State as precise steps \| Remember! - Many policymakers believe that research findings are too complicated and too academic to understand. Your challenge is to find a clear and concise way to convey your findings. Therefore, before you take your research to target audience, make sure you are able to explain your ideas in a way that your grandma could understand them → Your messages should pass the ‘Grandma Test’! - Never think that your messages are too complicated to be explained to or understood by your audience → All great ideas are simple at heart² ¹ Communicating Research: A beginner’s guide for researchers in Vietnam, Ajoy Datta and Arnaldo Pellini, August 2011 ² Communicating Food Policy Research : A Guidebook, Grebmer, K.V., Babu, S., Rhoe, V. & Rubinstein, M., IFPRI, March 2005 MAKING POWERFUL POWERPOINTS "Less is more on a slide show. Too much information on a single slide becomes unreadable, especially when it is projected on a big screen for a large audience." Delhi-based Ajay Jain, CEO, TCP Media Too many people use their PowerPoint slides as a script. They turn their backs to their audience, and read lots of words on the screen as if reading a book. Don’t be tempted to do this! A good PowerPoint presentation uses few words, presents powerful images, and supports what the speaker wants to say. A great presentation understands what the audience wants to know, and delivers it to them in an entertaining and to-the-point way. A great presenter understands that the audience will believe you if you say you are going to speak for 30 minutes – so don’t go on for an hour! CONTENT • Pick the key ideas and stories from your research and draft your presentation around them. • Use a font that is easy to read such as: Arial or Helvetica (Times New Roman and Palatino are harder to read quickly) • Use a large font size (18-24pt) in order to make your points readable. (To test the font, stand six feet back from the monitor and see if you can read the slide.) • Present your content in the form of four to five bulleted points per slide. • Use short sentences: keep the bullet points to approximately six words per line. • Try to restrict it to six lines in a slide. • To highlight certain important information, present that text in a larger font size. • Do not make it too animated; too many fancy transitions will take attention from what you are saying. IMPORTANT THINGS ABOUT DESIGN • Use a visually interesting but simple and clean Master Slide so that there is some consistency to the presentation • Keep the design uncluttered, leaving empty space around the text and graphics. • Check all of the graphics and layouts of your PowerPoint on the machines you will be using before the presentation itself to ensure there are no technical glitches. • Check that you’ve not included more information than you need – avoid clutter! USING AUDIO VISUALS • A selection of engaging images, video or audio that supports your research can make listening to your presentation a more enjoyable, and memorable, experience for your audience. But make sure that they add value, adding to the information you are communicating, rather than being just for decoration. Visual imagery It is important to break up the text within a PowerPoint by including interesting, but relevant, illustrations and photographs. Think about using: • A map or illustration of the region where your work is being done • Images of the people involved in your research • Illustrated graphs and charts of statistics included in your presentation (but keep these simple and easy to follow) Video Dynamic content, such as a brief video that illustrates an important point, is a great way to engage your audience, make sure its directly related to your content. • If you have any talking heads of surrounding your research then these can be embedded into a PowerPoint slideshow. Audio Using audio that helps convey your message can also help you keep your slides clean and approachable. Adding recorded narration to slides when sending your presentation to others to view on their own. If you have any recordings of interviews or statements by people involved in your research these can be added over still images. WANT TO KNOW MORE? http://www.43folders.com/2007/08/23/better-presentations http://presentationsoft.about.com/od/firststeps/p/lose_audience.htm PRESENTING COMPLEX DATA VISUALLY: USING WEB-BASED TOOLS TO MAKE YOUR STATISTICS TRAVEL Data and statistics are a powerful way to communicate development research. Including data and statistics within research findings can enhance their impact, however, large tables or spreadsheets of numbers take time to decipher and sometimes the true meaning behind the data itself can be misinterpreted. One option to prevent your data being misread is to present the figures visually in the form of charts, graphs or even infographics. This will provide clarification and emphasis to your main points, appeal to a number of learning styles and add impact and interest to your research findings. There are now a plethora of online tools with which you can visualise data findings in an interesting, accurate and arresting way. Here are some of the best: - StatPlanet: this browser-based interactive data visualization and mapping application allows you to create a wide range of visualizations, from simple Flash maps to more advanced infographics. http://www.sacmeq.org/statplanet/ - Xtimeline: allows you to create your own timelines of data. http://www.xtimeline.com/index.aspx - Gap Minder: this site created by Hans Rosling allows you to upload data and create an interactive motion charts and graphs. http://www.gapminder.org/upload-data/ - Many Eyes: created by IBM Research allows you to upload data in a range of very versatile formats. http://www-958.ibm.com/software/data/cognos/manyeyes/ • Creately: this is easy to use Online Diagramming software - purpose built for team collaboration. http://creately.com/ • Google Chart Tools: this application lets you include constantly changing research data sourced online. Google has also released Fusion Tables where you can share, discuss and track your charts and graphs with specific people online. http://code.google.com/apis/chart/ • Hohli: this online chart maker is simple to use and allows you to create a range of colourful pie, line, scatter, radar and bar charts. http://charts.hohli.com/ • Tagcloud: allows you to upload texts and highlight the most common concepts. The clouds can be exported as images and inserted in a website or power point presentation. http://tagcrowd.com/ • Wordle: similar to tagcloud, this application lets you create images out of key phrases and words relevant to your research, great for using in PowerPoint presentations. http://www.wordle.net/ • Tableau: a free Windows-only software for creating colourful data visualisations. http://www.tableausoftware.com/public/ To see how other researchers are presenting work in new innovative and visual ways see: • Information is Beautiful: David McCandless, an “independent data journalist and information designer interested in how designed information can help us understand the world.” http://www.informationisbeautiful.net/ • Flowing Data: This blog explores how “designers, statisticians and computer scientists are using data to understand ourselves better.” http://flowingdata.com/ • Afrographique: Ivan Colic’s “small contribution to assist the changing perception of Africa and it’s people...This blog aims to collect as much data as possible with the aim of presenting the information in an exciting and digestible format to all.” http://afrographique.tumblr.com/ MAKING FULL USE OF THE POWER OF SOCIAL MEDIA IN YOUR RESEARCH Increasingly, social media is the way the world is networking and communicating in order to share information and knowledge. Social media fosters transparency, dialogue and engagement. For researchers, social media can be a powerful ally that helps you to ‘work smarter’, and to make your research outputs travel further and faster in order to become useful in development. MANAGING INFORMATION WITH SOCIAL MEDIA Browsing and searching for information on the web is time consuming; on the other hand we often have to deal with information overload. One basic, fundamental tool is your best ally: RSS feeds. With RSS feeds, you don’t need to look for information, because information comes to you. Efficiency and efficacy in managing information is not an accident, it is guaranteed! COMMUNICATING RESEARCH USING BLOGS No researcher can afford to be ‘invisible’ in the modern information landscape. But this doesn’t mean that you have to ‘retrain’ to become a communication professional: it does mean that you should learn how to use the simple and smart techniques which are freely available to make you and your work more visible. Blogs present an easy solution for setting up a personal/research group/research project website. Blogs help to spread research work around. They help researchers to create a community of readers that bring new ideas and perspectives that can support your research project, across its different phases. Moreover, by blogging, researchers learn and practice communicating in different ways to different audiences beyond the academic community, in order to reach ‘the ordinary man in the street’. 1 http://www.edwardrcarr.com/opentheechochamber/2012/01/05/is-blogging-an-extreme-sport-for-academics/ CONNECTING AND NETWORKING ONLINE WITH MICRO-BLOGS Twitter is a form of free micro-blogging which allows users to send and receive short public messages called tweets. Tweets are limited to no more than 140 characters. By following other people and sources you are able to build up an instant, personalized newsfeed that meets your full range of interests, both academic and personal. With Twitter, you can notify others about new publications and new developments on research projects, as well as share relevant government policy changes, reports, articles, etc. Furthermore, Twitter is a great ally in reaching out to external audiences, and making links with practitioners in business, government, and public policy.² THERE IS MUCH MORE THAT SOCIAL MEDIA CAN DO FOR YOU! This is probably the basic functions that social media media can help you with, but to fully exploit this, there is one thing you have to do: Think digital, be digital. Social media in research is not about adding an extra amount of work to what you are doing already. Instead, it is about changing the way and underpinning what you are doing already with social, digital tools.³ ² Mollett, Amy and Moran, Danielle and Dunleavy, Patrick (2011) Using Twitter in university research, teaching and impact activities. Impact of social sciences: maximizing the impact of academic research, LSE Public Policy Group, London School of Economics and Political Science., London, UK. ³ Peña-López, I. (2011). e-Research: social media for social sciences. Research seminar at the Open University of Catalonia. January 12, 2012. Barcelona: ICTlogy. EFFECTIVE WRITING FOR THE WEB Writing for an online audience requires very different kinds of writing skills to those you have acquired for writing for print. You will know as an internet user yourself, that you don’t read everything on screen so much as scan the article until you find something that catches your eye. To be an effective writer for the web, you therefore need to do things slightly differently. KNOW YOUR AUDIENCE Before picking up your pen (or more probably, turning on your computer), you need to think carefully about who will be reading what you write. If your website or blog has a very specific audience, industry-related terminology and jargon may be appropriate. But if you are writing for a more general audience, be sure to avoid words or phrases that they may not understand. USE HEADINGS AND SUB-HEADINGS You can break up your text and make it much easier to scan by using headings and sub-headings. This will help the reader to find the parts of the article that they are most interested in. Headings introduce useful white space which acts like fresh air around dense text. This makes it easier and less intimidating for readers to follow your thoughts. They introduce a logic to your writing, and make content more easily digestible. USE LISTS Both bulleted lists and numerical lists will increase the readability of your article by making it easier to scan and keeping the content organized. USE SHORT PARAGRAPHS Short paragraphs help readers find what they are looking for. They look less daunting on screen and are more likely to be read. Long paragraphs stretched across narrow columns look never-ending. USE BOLD TEXT FOR EMPHASIS Regardless of what you’re writing about, your article will contain some phrases that are more important than others. Bold text allows you to control what is emphasized. Typically headings and sub-headings are bold, but bold text can also be used within paragraphs to make important information stand out. INCLUDE LINKS IN THE ARTICLE Be generous with the number of links you make to other articles. However comprehensive your written piece, you will not be able to cover every aspect of your topic. Using ‘hyperlinks’ that direct readers to other parts of your website, or to other internet locations, is a useful service for your readers. And if you’re useful, you’ll be remembered, and people will come back to your site. USE A BLOG TO ALLOW FEEDBACK Blogs provide readers with the ability to ask questions and to comment on what is being said. This helps to ‘bond’ author and reader and to generate a dialogue around the your topics of interest. Blogging also allows you to write in an informal way about your area of expertise, in a way that communicates with people who are not specialists. PAY ATTENTION TO TEXT AND BACKGROUND COLOR Websites give you the opportunity to use every color imaginable; however, drastic colors and color combinations should be avoided. Generally a white or very light-colored background with dark text is easiest for reading from a screen. Dark backgrounds with white text can also work. WANT TO KNOW MORE? http://www.dailyblogtips.com/43-web-design-mistakes-you-should-avoid/ http://www.studygs.net/writingcontent.htm http://www.associatedcontent.com/article/114980/six_tips_for_writing_effective_web.html?cat=35 TEMPLATE FOR LEAVE-BEHIND HANDOUTS AWARDS AND MEDALS PARTICIPANTS • Images to be set across the top of the handout (in the header) so that it is uniquely ‘yours’ – this could be something from your presentation. Ideally this will be colourful, fit with information in presentation and fit a rectangular shape. • Include a logo of your university so that you can use this when you get home • Information to include: Title of Project/Research Paper Name of Participant Institution/Organisation you are working for Subheading 1: Introduce a brief abstract/executive summary of your project Small abstract of project (200 words approx) Subheading 2: Methodology and/or Terminology If your research contains some complicated methodology and terminology then use this section to explain it in as brief and clear way as possible. Unpack key terms of calculations. Other relevant information to support your presentation – if there is information that you do not have time to include but is important for your proposal/project. Subheading 3: Key Findings of your research This section should include the discovery/results of your research. Subheading 4: Policy Implications This section should describe clearly what you think should happen next. You can present your recommendations as precise steps/actions you think others should take. Subheading 5: Where to find more information Include any web references where people can see the full research paper, or if you haven’t published anything yet, include links to your institution (preferably where you have a research profile). - Font type: Arial - Font Sizes: - Title (14pt, Bold, Underlined) - Subheadings (12pt, Bold, Underlined) - Document Text (12pt)	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/4714-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 14, "total-input-tokens": 29495, "total-output-tokens": 5661, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 1496, 1 ], [ 1496, 3585, 2 ], [ 3585, 5801, 3 ], [ 5801, 8190, 4 ], [ 8190, 9938, 5 ], [ 9938, 11764, 6 ], [ 11764, 13284, 7 ], [ 13284, 15166, 8 ], [ 15166, 16964, 9 ], [ 16964, 18577, 10 ], [ 18577, 20445, 11 ], [ 20445, 21905, 12 ], [ 21905, 23049, 13 ], [ 23049, 23632, 14 ] ] }
f5fbe341167edb5c1304d014149fa1d96811bc60	Preservation Policy Contents 1 Introduction ...................................................................................................................................................... 3 2 Security of the collection ............................................................................................................................. 3 3 Collection storage .......................................................................................................................................... 4 4 Collection production and access ............................................................................................................. 4 5 Collection management ............................................................................................................................... 5 6 Emergency planning ...................................................................................................................................... 6 7 Appendix – Relevant standards and frameworks ................................................................................ 6 Policy owner: Collection Care Published: June 2018 Reviewed: June 2018 This policy was agreed with the Trade Union Side on 16th May 2018. It will be reviewed at the request of either party. 1 Introduction 1.1 This policy sets out the principles according to which The National Archives (TNA) will preserve and care for its archival collections. 1.2 Under the Public Records Act of 1958, TNA is the custodian of the public record; with a mandate to preserve the government records transferred to it, ensure their authenticity and to provide public access. 1.3 Both physical and digital collections are preserved at TNA. The purpose is to preserve these collections for posterity, to retain authenticity and value, to facilitate access, and to protect TNA’s current and future collections from risks such as, but not limited to, deterioration, damage, loss, corruption or obsolescence. 1.4 TNA assesses and manages risks to both the physical and digital collection as part of its risk management strategy and has carried out a preservation risk assessment exercise for the physical collection which is updated regularly to inform investment in mitigation strategies. For the digital collection, TNA is developing a robust and quantitative approach to modelling digital preservation risk as part of TNA’s challenging Digital Strategy. 1.5 This preservation policy takes account of all current standards, frameworks and requirements for Archive Accreditation. Please see Appendix A for a current list. 1.6 TNA recognises that the preservation needs of the collection must be balanced with a number of other factors such as the organisation’s commitment to environmental sustainability (Environmental Policy), cost and the government’s targets for reductions in carbon emissions. 1.7 This policy will be reviewed at least every five years and approved by TNA’s Executive Team. Supporting policies and procedures will also be reviewed and updated on a regular basis. 2 Security of the collection 2.1 TNA controls access to the collections to safeguard them from deliberate damage, alteration and loss. 2.2 The physical collections are stored securely at both the Kew site and offsite at DeepStore, in Cheshire. Admittance to all areas where collections are stored is controlled by access pass and is restricted to staff who require access to carry out their role. Staff access rights are regularly reviewed and an audit trail of use of the collection and access to storage areas is maintained. All staff have been security cleared, and there is a security presence on the Kew site 24 hours a day. 2.3 Collections of extraordinary importance or value, selected in line with TNA’s internal Safe Room procedures, are provided with an additional level of security through storage in the Safe Room. As well as additional fire protection, collections in the Safe Room are subject to added access restrictions and tighter usage procedures than collections in TNA’s other storage areas. 2.4 The digital collections are preserved and managed in the Digital Records Infrastructure (DRI), TNA’s digital preservation system. Access is limited to staff who carry out preservation activities and the DRI controls access permissions according to roles. 3 Collection storage 3.1 All collections are stored in environments designed and controlled to mitigate the risk of loss, damage or deterioration. 3.2 TNA provides environmentally controlled and monitored (temperature and relative humidity) storage for its physical collection both at the Kew site and DeepStore. At Kew, most storage areas are controlled to a seasonally variable set point, with specialist areas controlled to year-round set points for the photographic store and cool storage. 3.3 Storage areas are cleaned on a regular basis. Lighting in storage areas is controlled and the vast majority of collection items are boxed or otherwise enclosed using appropriate materials and packaging. 3.4 The risk of damage to the collection from pests is managed by implementing and maintaining an integrated pest management (IPM) programme within collection storage areas, consultation areas and display areas and educating transfer staff who oversee new accessions on the signs of pest activity. 3.5 TNA’s Public Sector Film collection is stored in specialist storage conditions at the British Film Institute (BFI). Public access to and the preservation of this collection is managed in accordance with a Contractual Agreement between TNA and BFI. 3.6 Digital records are stored in the Dark Archive, a digital tape library. Three copies of each record are preserved with one copy sent to secure offsite storage, ensuring that the records can be recovered in the event of a disaster at TNA. 4 Collection production and access 4.1 TNA has a mandate to provide access to its archival collections whatever the format. 4.2 Public access to the physical collection is provided in TNA’s reading rooms at Kew. To be able to order and view physical collection items, a Reader’s Ticket is required. Training in appropriate handling is provided for staff and the public who access or use collection items. Records from the collection can be viewed by the public only in the Document Reading Room in sight of CCTV cameras and Reader Invigilators. Policies are in place to support the removal of those who intentionally contribute to their deterioration, damage or loss. In some cases copies are offered in place of the physical original. 4.3 TNA is empowered by section 2(4)(g) of the Public Records Act 1958 to loan collection items for public exhibition. Prospective borrowers must meet all of TNA’s Conditions for Loans, and all requests for loans and internal display are reviewed to ensure document safety, security and integrity at all times during transport and display. Where there is reason for concern, the use of facsimiles is encouraged and the request for loan might be declined. 4.4 Public access to digital records (including digitised physical records) is provided via Discovery, an online catalogue and presentation system. They are available either in their original, or, where possible, in a more accessible format. 5 Collection management 5.1 TNA carries out a range of interventions designed to ensure that the archival record is maintained, carrying out research and adopting international best practice where appropriate. 5.2 Priority for interventive conservation treatment is given for the following purposes and work is scheduled as part of a departmental business plan: - Display - Digitisation - Facilitation of access - Preventing potential loss - Improving knowledge of a collection item 5.3 All conservation treatments endeavour to balance minimum intervention with maximum retention of value and accessibility. TNA has an onsite Collections Care Department (CCD) and studios that provide preservation and conservation advice, guidance and treatments for TNA’s physical collection. CCD maintains a collections database in which staff document the conservation treatments carried out and whether a collection item is known to require conservation treatment before it can be accessed. 5.4 All interventive conservation treatments carried out on collection items are conducted by qualified conservators or trainees/technicians under the supervision of a qualified conservator in accordance with international best practice and the Institute of Conservation’s (ICON) Professional Standards and Code of Conduct. Conservators employed by TNA are encouraged and supported to apply for and maintain Professional Accreditation of Conservators-Restorers (PACR). 5.5 Volunteers make an important contribution to the preservation of the collection by carrying out preventive conservation tasks and surveys. Volunteer projects are approved by TNA’s User Participation Board and supervised by conservators or conservation technicians in accordance with TNA’s approach to user participation. 5.6 Research, scientific and technical examination, analysis and experimentation are used to maintain and improve the preservation and conservation treatment of the physical collection and enhance knowledge of the collection. 5.7 Preservation planning is a continual process carried out by the Digital Preservation Team. The team monitors changes that may impact on the sustainability of the digital records in their care. For example as file formats become obsolete records may be migrated to a different format to preserve their functionality while the original is also maintained. Regular fixity checks are carried out to ensure that the record’s integrity is maintained so that once preserved the record is never altered. 5.8 The Digital Preservation Team keep abreast of the latest developments in the field through membership of professional organisations as well as more widely through regular liaison with the international digital preservation community. Developments in user needs and expectations may also result in different approaches to our activities. 6 Emergency planning 6.1 TNA mitigates the risk of damage and loss as far as possible. In the event of a disaster, recovery plans are in place to ensure that emergencies can be managed appropriately and collections restored. 6.2 Storage facilities at the Kew site and DeepStore are equipped with fire detection systems. The Kew site was built with flood defences in mind and there is limited collection material stored in the basement or ground floors of the building. TNA updates and maintains a Collections Emergency Plan that would be enacted in the event of an emergency impacting the collection and that links with other organisational emergency plans including Business Continuity and Major Incident Management plans. TNA regularly runs training and practice scenarios to support these plans. 6.3 Regular back-ups of the digital records are created and a copy is sent offsite to secure storage to ensure that the digital collections can be fully recovered in the event of an emergency. 7 Appendix – Relevant standards and frameworks 7.1 The following is a list of current standards and frameworks to which TNA endeavours to align its preservation practices, procedures and guidance. This list will be reviewed and updated as necessary. • BS ISO 11799:2015 – Information and documentation – Document storage requirements for archive and library materials • ISO/TR 19814:2017 – Information and documentation – Collections management for archives and libraries • BS 4971:2017 – Conservation and care of archive and library collections • BSI PAS 198:2012 – Specification for managing environmental conditions for cultural collections • The Institute of Conservation’s Code of Conduct and Professional Standards • BS ISO 14721:2012 – Space data and information transfer systems. Open archival information system (OAIS). Reference model • BS EN 16893:2018 Conservation of Cultural Heritage – Specifications for location, construction and modification of buildings or rooms intended for the storage or use of heritage collections	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/4715-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 7, "total-input-tokens": 11914, "total-output-tokens": 2502, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 20, 1 ], [ 20, 1298, 2 ], [ 1298, 3873, 3 ], [ 3873, 6400, 4 ], [ 6400, 8744, 5 ], [ 8744, 11387, 6 ], [ 11387, 12173, 7 ] ] }
10ef71f1b13594a5060f9e2a6a20ef14b26c4b52	ARCHIVES RECEIVE ACCREDITATION AWARD A small Scottish local authority archive service, a higher education archive in Swansea, a large business archive in England and The National Archives have reached the new quality standard for archive services The UK Archive Service Accreditation Committee announced today that it has accredited four archive services across the UK. The newly Accredited Archive Services, which include the first ever accredited services in Scotland and Wales, showed they had reached national standards relating to the long-term collection, preservation and accessibility of the nation’s archive heritage. They were also recognised for their good performance in all aspects of governance, management and resourcing as well as the care of their unique collections and the service they offer to their entire range of users. Chair of the Archive Service Accreditation Committee, Bruce Jackson said: "These awards are a tangible recognition of the sector’s successes at preserving and making accessible the nation’s archive heritage. All of the services should be proud of themselves, and of the difference they have made to people, communities and businesses across England, Scotland and Wales." Archive Service Accreditation, the UK-wide standards scheme for the archives sector, was established in 2013 to celebrate and recognise good practice, identify agreed standards and also encourage and support development across archive services in the UK. The four accredited services are: - Falkirk Archives – the first accredited service in Scotland is a small local authority archive service documenting the rich variety of life in its local area. - Richard Burton Archives, University of Swansea – the first accredited service in Wales, is a small higher education archive with strong specialist collections including Welsh writers in English, business archives of the metal and engineering industries in Swansea and the papers of the renowned stage and screen actor Richard Burton. - Unilever Archives and Records Management – a major business archive documenting the work and development of a key international corporation. - The National Archives – participating in the UK archive standards scheme for the first time, it is the first national archive to achieve accredited status. Welcoming the award to The National Archives, Acting Chief Executive Clem Brohier said: "We see the Archive Service Accreditation programme as a key part of supporting the diversity and health of the UK archives sector. As sector leaders for England, it was important to us to participate fully in Accreditation from the outset. We are delighted that the Accreditation Committee has recognised our successful delivery at a national level." Ends For interview requests, contact The National Archives’ press office on 0208 392 5277 or e-mail [email protected] Notes to Editors Archive Service Accreditation has been developed in partnership with the archive sector and its stakeholders and is supported by a UK partnership of the Archives and Records Association (UK & Ireland), Archives and Records Council Wales, The Welsh Government through CyMAL: Museums Archives and Libraries Wales, National Records of Scotland, Public Record Office of Northern Ireland, Scottish Council on Archives, and The National Archives. The assessor body for Archive Service Accreditation for archives services in England is The National Archives. For more information see [http://www.nationalarchives.gov.uk/accreditation](http://www.nationalarchives.gov.uk/accreditation) The National Archives was assessed by representatives of two other national assessor bodies, the Scottish Council on Archives and Public Record Office of Northern Ireland as well as peer reviewers from the wider archive sector. All awards are agreed by a Panel drawn from representatives of the Archive Service Accreditation Committee. Archive Service Accreditation - Archive Service Accreditation is the UK standard for Archive Services. It defines good practice and identifies agreed standards, thereby encouraging and supporting development. - Archive Service Accreditation is managed by the Archive Service Accreditation Committee. The committee comprises nominated members from the UK partnership and experienced archive professionals of high regard with sector peers and who have been recruited through open competition. - It replaces The National Archives’ Standard for Record Repositories and its self-assessment programme for local authority archives in England and Wales. - Designed to dovetail with other closely related frameworks and standards already in use in the archive, museum and library sectors. Accredited archive services are: - Externally recognised for their good performance in all aspects of service delivery - Sustainable and robust, ensuring the long term acquisition, preservation and accessibility of our archive heritage - Clear about their mission, ensuring effective planning, decision making and optimal use of resources - Responsive to all their stakeholders and trusted in the management of their unique collections About The National Archives For the record, for good…The National Archives is a government department and an executive agency of the Ministry of Justice (MoJ). As the official archive of the UK government and England and Wales, The National Archives looks after and makes available to the public a collection of historical records dating back over 1,000 years, including records as diverse as Domesday Book and MI5 files. Our 21st-century role is to collect and secure the future of the record, both digital and physical, to preserve it for generations to come, and to make it as accessible as possible. The National Archives do this by devising technological solutions to ensure the long-term survival of public records and working to widen access to our collection. It also advises on information management across government, publishes all UK legislation, manages Crown copyright and leads the archive sector. Since 2011, The National Archives has had responsibility for leading in the development of the archive sector in England. www.nationalarchives.gov.uk www.legislation.gov.uk	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/4718-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 3, "total-input-tokens": 6105, "total-output-tokens": 1288, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 1752, 1 ], [ 1752, 3957, 2 ], [ 3957, 6266, 3 ] ] }
d6a3d988b69858131c8a153ade457e5510995584	Story of D-Day told through documents and Twitter 70 years on Seventy years ago, Allied servicemen and women were preparing for the much-awaited invasion of northern France. Years of meticulous planning had gone into Operation Overlord but the unpredictable weather in the English Channel delayed things for 24 hours with D-Day finally coming on 6 June, 1944. This week, the story of the momentous landings on the beaches of Normandy will be told through The National Archives’ @ukwarcabinet Twitter feed using official government and military documents from the time. From Thursday, June 5 until Sunday, June 8 army unit war diaries (including those from Canadian battalions), RAF squadron records, documents from the Admiralty, Government Cabinet Papers and messages sent to Prime Minister Winston Churchill - all held at The National Archives - will be used to describe events “as they happened.” Some tweets will also be illustrated with D-Day photographs from The National Archives' extensive image library and digital versions of the documents. The @ukwarcabinet feed has been telling the story of the Second World War on a day-by-day basis through War Cabinet Papers for the past five years. But tweets from Thursday 5 June until Sunday 8 June will see far more detail with extra documents giving an insight into decision making and actions of British and Commonwealth forces during the successful attempt to liberate Western Europe. Simon Demissie, Contemporary Records Specialist at The National Archives, said: “We will use war diaries and operations records to tweet details of everything from the parachute regiments landing overnight; then the ships sailing across in the morning; and what the infantry and special services were doing on the ground during 6 June, 1944. “We will also be tweeting Prime Minister Winston Churchill’s speech to the House of Commons alongside the action which was happening on the beaches at the same time. “We have photographs taken of the beaches from the air, images of men on the boats waiting to go ashore and maps which will also help to tell the story as it unfolds. “The war diary extracts give a real sense of what was going on as the Allies fought to secure the beaches and are written in really expressive language. We will also continue to tweet details from the War Cabinet minutes outlining what the key British decision makers were debating at the time." All information released in the tweets is available to see in files held by The National Archives. The files used include: • Army war diaries of the 1st Suffolk Regiment (WO 171/1381), 2nd Warwickshire Regiment (WO 171/1387), 2 Royal Ulster Rifles (WO 171/1384) and Queen’s Own Rifles of Canada (WO 179/2958) • Admiralty ship logs of HMS Belfast (ADM 53/118968), HMS Ramillies (ADM 53/120330) and HMS Warspite (ADM 53/120730) • RAF squadron operation books (AIR 27) • Cyphers to Churchill including reports of straw dummies being dropped as parachutists (HW 1/2890) and situation reports by the Sea Defence Commandant in Normandy (HW 1/2909 and HW 1/2913) • Conclusions of the War Cabinet (CAB 65) and memoranda circulated to its members (CAB 66) In addition, core records of the British Cabinet from 1915 to 1982 have been digitised and their full text is searchable online at nationalarchives.co.uk/cabinetpapers – End – For media enquiries please contact Andrew Harrison at The National Archives press office on 0208 392 5277 or email [email protected]. Notes to editors: Spokesperson available: Simon Demissie, Contemporary Records Specialist at The National Archives About The National Archives: For the record, for good…The National Archives is a government department and an executive agency of the Ministry of Justice (MoJ). As the official archive of the UK government and England and Wales, we look after and make available to the public a collection of historical records dating back over 1,000 years, including records as diverse as Domesday Book and MI5 files. www.nationalarchives.gov.uk www.legislation.gov.uk For the latest stories, follow the Press Office on Twitter @TNApressofficer	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/4719-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 2, "total-input-tokens": 4790, "total-output-tokens": 1064, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 2290, 1 ], [ 2290, 4150, 2 ] ] }
4f561a1249eeafca287900748dac8b6f89bed674	Why did people go to war in 1642? Case study 1: 1637-39 The Civil War broke out in 1642, but there were many years of tension leading up to this event. How does this selection of sources from 1637-39 help us to understand why people went to war? - Order by Charles on playing cards & dice, 1638 - Complaint about 'ship money', 1639 - Picture of a protest in Edinburgh, 1637 - Announcement from Charles to the Scots, 1639 - Letter from a man in the army against Scotland - A rude poem, May 1639 - Informers' report to Archbishop Laud, 1639 - Discussion on the situation with Parliament, 1639 http://www.nationalarchives.gov.uk/education/ Case study 1: 1637-39 – Source 1 A proclamation by Charles I on playing cards and dice, 1638 (Catalogue ref: SP 45/10/212) What is this source? This is a royal proclamation (announcement or order) from 1638. Charles was effectively taking control of the trade in playing cards and dice. The main purpose of a proclamation was to make people aware of a new law or rule. It would be read out in a public place, often the church on Sunday. What’s the background to this source? Parliaments often gave the king the right to control certain trades. This was usually to make sure that products in a particular trade were safe. Goods that were approved were given the seal of approval. Most trades accepted that they should pay a small fee to get the seal of approval. Parliament usually gave the king the right to control a trade for a certain number of years. However, the king always controlled some important trades (e.g. the salt trade). Charles took control of many trades during the 1630s. In many cases he sold the control of the trade to one merchant or company, giving them a monopoly (sole control of a trade). Not surprisingly, many other merchants who got left out were upset by Charles’s actions. It’s worth knowing that ... People accepted that kings would try to use regulations like this to raise money, but in the 1630s many people felt Charles was going too far. From 1629-40 he ruled without calling Parliament (the Personal Rule) and instead used measures like this to get the money he needed. For example, he banned the growing of tobacco except on royal plantations in 1638. He brought in strict laws in 1635 that made people pay fines for swearing and cursing. Many MPs were concerned that Charles was trying to find ways to raise money so that he could rule without ever calling Parliament. http://www.nationalarchives.gov.uk/education/ Your turn: What can we learn from this source? 1. How do we know that this is a genuine royal proclamation? 2. Study source 1a. The king claimed that this regulation was to protect the public from poor quality dice and cards. Do you think the public were really worried about poor quality dice or cards? 3. Study source 1b. What do makers or sellers of cards or dice now have to do? 4. Will it cost them money? 5. People today often complain about having to pay taxes on too many things. Do you think this proclamation would have led to complaints? 6. Does this source give us any clues about why the kingdom went to war in 1642? Source 1a By the King. A Proclamation touching the Manufactures of Playing-Cards, and Dice. He King most Excellent Majesty, for the better employment and relief of the Card-makers and Dice-makers of the Realm, having of late taken order to a constant weekly buying and taking off from them, of their Manufactures of Cards and Dice, whereby they may be enabled to live of their Trades: And for prevention of these common abuses which have been and are still practised, by the sale of false Cards and Dice, to the great deceit and damage of his Subjects; his Majesty, by his Letters Patent, under his Great Seal of England, bearing date the twelfth day of April, in the thirteenth year of his Reign, hath appointed an Officer for the Searching and Sealing of all such good and merchantable Cards and Dice, as now are or shall be hereafter either made within this Realm, or imported into the same from any foreign, or other parts, before the said Cards and Dice shall be vended or put to sale. Source 1b His Majesty therefore doth hereby declare his Royall will and pleasure to be, and doth straightly Charge and Command, That all person or persons whatsoever, all such Makers of Cards and Dice within the Realm, as Merchants or others, who shall import the same from Foreign or other parts, do from henceforth from time to time, bring the same Cards and Dice to his Majesties Officer, or his Deputies in London, and other remote places, to be there viewed, examined, and sealed, if they shall be found good and merchantable, paying to his Majesties said Officer, or his Deputies, upon the sealing thereof, such allowance and fee, as by his Majesties said Letters Patents is appointed in that behalf. Case study 1: 1637-39 – Source 2 A legal complaint made by Sir Richard Strode about ‘ship money’, August 1639 (Catalogue ref: SP 16/427/32) What is this source? This is part of a letter written by Sir Richard Strode. He claimed that ship money (a kind of tax) and other taxes which Charles I raised in the 1630s were illegal. The letter is one of several documents in the State Papers that complain about ship money. Richard Strode was certainly not alone in his complaint. About 30% of the ship money charged was unpaid by the people. What’s the background to this source? Charles I ruled from 1629-40 without calling Parliament. This period was known as the Personal Rule. Kings could not normally go this long without talking to Parliament. They usually ran short of money and new taxes had to be approved by Parliament. However, Charles hated working with MPs. He tried to get the money he needed by collecting taxes like ship money and tallage (a tax on landowners). Ship money was supposed to be paid by counties near the coast. It was supposed to be paid in times of emergency to raise money for the navy to protect the country. However, from 1635 Charles I started collecting ship money every year. He also started collecting it from all counties, not just coastal counties. It’s worth knowing that ... There was a lot of opposition to ship money and other taxes. Richard Strode was a long-term opponent of the tax. He appears in government records in 1631, 1635, 1637 and 1639 complaining about ship money. Opponents of Charles’s taxes had three main complaints: They did not like paying the taxes! They felt Charles was acting illegally by collecting taxes without the approval of Parliament. http://www.nationalarchives.gov.uk/education/ They objected to the punishments and fines that were used against Charles’s opponents. In most cases, opponents were punished without a trial. Your turn: What can we learn from this source? 1. What happened to Richard Strode’s cow? 2. Why was Strode upset about it? 3. What is his attitude to being forced to pay the king ‘ship money’? 4. Do you think Strode was more concerned about his cow or about the king ignoring Parliament and acting outside the law? 5. Does this source give us any clues about why the kingdom went to war in 1642? Source 2a http://www.nationalarchives.gov.uk/education/ Source 2b [Image of a handwritten document] http://www.nationalarchives.gov.uk/education/ Case study 1: 1637-39 – Source 3 An engraving of a protest in Edinburgh in 1637 (By permission of The British Library, E.365 (6)) What is this source? This picture describes events that happened in Edinburgh in 1637. It shows the reaction of Scottish Protestants when the head of the church in Scotland tried to use a new prayer book for church services. The picture appeared in a book called 'The sight of ye transactions of these latter years' by John Vicars. The book was a description of what was happening at the time. Today a TV documentary would probably do the job of a book like this. What’s the background to this source? Throughout the 1630s Charles and his Archbishop of Canterbury, William Laud, brought changes to the organisation of the church and also to the way people worshipped in church. The Scots did not like Laud’s new prayer book or his other ideas. They also disliked an Englishman making decisions about the church in Scotland. Religion was very important to everyone. In the 1500s England and Scotland had broken away from the Roman Catholic Church and become Protestant countries. In the 1600s there was still a lot of suspicion about Catholics trying to undermine the country. Some hard-line Protestants accused Charles and Laud of making the Church of England too much like the Catholic Church. Some of these hard-line Protestants, known as Puritans in England, had a lot of sympathy for the Scots. It’s worth knowing that ... In February 1638 Scottish rebels formed themselves into a National Assembly. They signed a Covenant (agreement) banning the new prayer book. The Covenanters (the rebels who supported the Covenant) then got rid of other changes brought in by Laud. In November they got rid of bishops altogether. Charles would not put up with this challenge to his authority. He took an army to Scotland to crush the rebels. Unfortunately, he could not beat them. His fight with the Scots dragged on until October 1640. Your turn: What can we learn from this source? 1. Describe the scene as though you were reporting it for a radio broadcast. 2. What is happening? 3. How would you describe the feelings of the crowd? 4. Do you think this was simply a small number of people causing the trouble? 5. Does this source give us any clues about why the kingdom went to war in 1642? Source 3 http://www.nationalarchives.gov.uk/education/ Case study 1: 1637-39 – Source 4 An announcement from Charles to the people of Scotland, May 1639 (Catalogue ref: SP 45/10/225) What is this source? This is an extract from a proclamation (announcement or order) made by Charles at Newcastle on 14 May 1639 telling people in Scotland what he wanted them to do. He was trying to end rebellion in Scotland. Charles was king of England and Scotland. He wanted the English and the Scots to obey the same laws and he wanted the English and Scottish churches to be run the same way. What’s the background to this source? Charles had been facing rebellion from his subjects in Scotland since 1637. The Scots refused to accept changes that Charles wanted to make to the church in Scotland. - Throughout the 1630s Charles and his Archbishop of Canterbury, William Laud, brought changes to the organisation of the church and also to the way people worshipped in church. Charles and Laud wanted to make the clergy, especially bishops, more important and powerful. Many Protestants in England and Scotland disliked these changes. - In 1637 Charles and Laud tried to force the Scots to accept a new prayer book. The Scots refused. (Religion was a very important issue to everyone in Scotland and England.) - In February 1638 the Scottish rebels formed themselves into a National Assembly. They signed a Covenant (agreement) banning the new prayer book. - The Covenanter (rebels who supported the Covenant) then went on to get rid of other changes brought in by Laud. In November they abolished bishops altogether. - Charles would not put up with this challenge to his authority. In November 1638 Charles raised an army and tried to crush the Scots, but he failed. http://www.nationalarchives.gov.uk/education/ It’s worth knowing that ... Charles raised an army to fight the Scots in 1638. By May 1639, when this proclamation was made, Charles did not have enough money to continue the fight. This meant he had to try and reach an agreement with the Scottish rebels. Although Charles threatened to invade Scotland, he did not have a good enough army to do this. He did not have enough money for a large, well-equipped army. To get the money he needed, he would have to ask his Parliament. However, Charles did not like working with Parliament. He ruled without it from 1629-40. By the time he did call Parliament in 1640, many MPs were anxious to tell the king why they were unhappy about many aspects of his rule. Plus his conflict with the Scots dragged on until October 1640. Your turn: What can we learn from this source? 1. What did the king offer the Scots? 2. What did the Scots have to promise in return? 3. How would you describe Charles’s attitude towards the Scots? 4. Does this source give us any clues about why the kingdom went to war in 1642? 5. Study the notes that support this source. 6. What problems caused the rebellion in Scotland? 7. What other problems did the Scottish rebellion cause for Charles? By the King. CHARLES by the grace of God, King of England, Scotland, France, and Ireland, Defender of the Faith, &c. To all Our loving Subjects Whom it shall or may concern; Greeting. Whereas We are thus farre advanced in Our Royall Person with Our Arme, and the attendance of Our Nobilitie and Gentry of this Kingdome, and intend to be shortly at Our good Towne of Barwicke, with purpose to give Our good people of Scotland all such satisfaction in Parliament, as one as the present disorders, and tumultuous proceedings of some there, are quieted; and will leave Us a faire way of comming like a gracious King to declare Our good meaning to them. But finding some cause of Impediment, and that this Nation both apprehend (that contrary to their professions) there is an intention to invade this Our Kingdome of England, We doe therefore to clear all doubts, that may breed scruples in the minds of Our good Subjects of either Kingdome, reiterate this Our just and reall protestation: That if all civil and temporall obedience be effectually and timely given and shewn unto Us, we doe not intend to invade them with any hostility. But if they shall without Our especiall Authoritie and Command raise any armed Troops, and draw them doyle within ten miles of Our Border of England, We shall then interpret that as an Invasion of Our said Kingdome of England, and in that case doe expressly command the Generall of Our Army, and Our Superiour Officers of the same, respectively to proceed against them as Rebels, and Invaders of this Our Kingdome of England, and to the utmost of their power to set upon them and destroy them, in which they shall doe a singular service, both to Our honour and safety. Given at Our Court at Newcastle the fourteenth day of May, in the fifteenth year of Our Reign. God save the King. Case study 1: 1637-39 – Source 5 Letter from a gentleman called Edward Norgate with Charles’s army against Scotland, 4 May 1639 (Catalogue ref: SP 16/420/45) What is this source? This is an extract from a letter by Edward Norgate to a friend back in London called Robert Read. Norgate was part of Charles’s army against Scotland when he wrote this letter. Norgate was also a close friend of Charles I. What’s the background to this source? In 1639 Charles was facing a major rebellion in Scotland. The rebels had signed a Covenant (an agreement) banning the new prayer book brought in by William Laud, Archbishop of Canterbury. Charles could not put up with this challenge to his authority and had tried to crush the rebellion in 1638, but had failed. Charles was obsessed by the idea of order and unity. He wanted England and Scotland to be ruled under the same laws. He wanted the English and Scottish churches to be organised the same way and worship the same way. The Scots were not pleased. In 1637 they rejected the new prayer book that Archbishop Laud and Charles wanted them to use. Rebel leaders formed a Scottish National Assembly and signed a Covenant banning Laud’s prayer book. Charles first tried to crush the Covenanters. However, by May 1639 he was trying to reach a deal with them. It’s worth knowing that ... Religion was very important to everyone in the 1600s. The church was a big employer. It was also the centre of social life. Above all, most people wanted to please God and go to Heaven, so they had strong views on how they should worship God. Both England and Scotland broke away from the Roman Catholic Church and became Protestant in the 1500s. Throughout Europe in the 1600 there were still bloody wars taking place between Catholics and Protestants. Religion was seen as something worth fighting for. There were also different types of Protestants. Many of the Covenanters were Presbyterians (who were similar to English Puritans). Your turn: What can we learn from this source? 1. What does this source tell us about the relationship between Charles and the Scots in 1639? 2. What did Norgate think of the Scots? 3. According to this letter, which side was being more reasonable? 4. Do you accept this viewpoint? 5. Does this source tell you whether the majority of people in England supported Charles against the Scots? 6. Does this source give us any clues about why the kingdom went to war in 1642? Source 5 The King hath been pleased to send a most gracious proclamation to the Parliament, containing an abolition of all such fines, damages, and the greatest delinquents to come in within 3 days, with other particulars, and to expect to get that done, it better than I. If there be found but one case of honesty, allegiance or religion in these 3 days, then I doubt not but more may hope one day to look how much again, and to receive God's blessing. If yet. These people remain obstinate, it overlie. Patience, Lest, and Bufurkis will in brief, For war was to good a Soveraigne cast away upon so ill subjects. Case study 1: 1637-39 – Source 6 A rude poem sent to Sir John Coke, 4 May 1639 (Catalogue ref: SP 16/420/48) What is this source? This report was sent to Sir John Coke in May 1639 by a local judge. Coke was Secretary of State to Charles I. Judges often sent reports to the king’s top officials. In the 1630s the reports were mainly concerned with discovering any evidence of opposition to the king. What’s the background to this source? In 1639 Charles I’s kingdoms were very tense. Charles was facing a major rebellion in Scotland. There was also tension in England. One of the biggest concerns was religion. The Archbishop of Canterbury, William Laud, was bringing in changes to the English church that some people were against. During the 1630s Charles and William Laud brought in new types of church services. Charles also gave greater power and wealth to the church. To some Protestants (especially hard-line Protestants, called Puritans), his actions seemed to be making the Church of England more like the Roman Catholic Church. They began to be against Charles. It’s worth knowing that ... Charles had no time for opponents of his policies. Charles ordered his officials to look out for people who might oppose him. The person being reported in this source was probably a Puritan who was against the changes that Charles and William Laud were bringing into the church. Your turn: What can we learn from this source? 1. What is the judge sending to Coke? 2. Do you think the alehouse keeper and his wife really found the poem in the road? 3. Try to guess - what does this poem mean when it talks about bishops? Which bishop might it be referring to? 4. What does this poem mean when it says: 'we are of great might, we mean to make you a bloody fight'? Who will fight whom? 5. Does this source give us any clues about why the kingdom went to war in 1642? Source 6a http://www.nationalarchives.gov.uk/education/ Source 6b Case study 1: 1637-39 – Source 7 Report to Archbishop Laud from informers, 31 May 1639 (Catalogue ref: SP 16/422/113) What is this source? This is a report to William Laud, Archbishop of Canterbury, from some of his informers. Laud had a network across the country that sent him regular reports about what people were saying. What’s the background to this source? Throughout the 1630s Charles I and William Laud tried to bring changes to the organisation of the church and to the way people worshipped in church. As a result, Laud made many enemies. Laud punished some of his critics harshly. For example, in 1637 William Prynne, Henry Burton and John Bastwick printed pamphlets attacking Laud. All three men were Puritans. They believed that Laud’s changes were making the Protestant Church of England too much like the Catholic Church of Rome. Laud had their ears cut off and their faces branded with a hot iron. It’s worth knowing that ... Laud and Charles tried to increase the power of the church in England and Scotland. They also wanted everyone to worship in the same way. Both of these things alarmed many Protestants, particularly the hard-line Protestants known as Puritans. On the other hand, many approved of Laud’s policies. They just disliked the way he clamped down on free speech and treated his critics badly. Both England and Scotland split from the Roman Catholic Church in the 1500s and became Protestant. In the 1600s the Protestants were still very suspicious of any changes to their church in case the Protestant Church became too much like the Catholic Church. Your turn: What can we learn from this source? 1. What did James Machison think of Archbishop Laud? 2. Is it possible to say whether many people felt the same way? 3. How do you think Machison would have felt if he had seen this report? 4. What does this source tell us about the attitude of the government towards the people at the time? 5. Does this source give us any clues about why the kingdom went to war in 1642? Source 7 Case study 1: 1637-39 – Source 8 Report of a discussion between Charles I and Sir Thomas Wilford on the situation with Parliament, 28 May 1639 (Catalogue ref: SP 16/422/65) What is this source? This report in the State Papers must have been written by a person at Charles’s court in Newcastle, probably a noble loyal to Charles. The State Papers (now in The National Archives) contain many reports of discussions between the king and his subjects. What’s the background to this source? In 1639 Charles I was in the north of England facing a major rebellion in Scotland. Wars were very expensive, so Charles was forced to call a Parliament in April 1640 to ask them for money. British monarchs called Parliament into session. Parliament could agree to taxes to pay for wars. In return, Parliament usually demanded some say in how the war was fought and often brought up other issues as well. However, Charles hated working with Parliament. From 1629-40 he ruled without calling it once. This period was known as the Personal Rule. It’s worth knowing that ... Although many MPs criticised Charles’s policies in the 1630s, many other MPs remained loyal to him. Some stayed neutral if they could, taking neither side (we do not really know exact numbers on each side). Charles didn’t like the criticism, so he ended the Parliament in 1640 after a few weeks. Many MPs, though unhappy about Charles’s policies, continued to support him. This was partly out of loyalty. It was partly because they disliked Charles’s main critics, the Puritans. It was partly because they believed in Divine Right – that the king was appointed by God. Your turn: What can we learn from this source? 1. Why do you think Sir Thomas Wilford brought men and horses to Charles I? 2. What was the attitude of Wilford towards Charles? 3. Was he afraid to criticise Charles? 4. What was his advice to Charles? 5. What was his attitude to the MPs who opposed Charles? 6. How useful is this source in telling us how much support Charles had? 7. Does this source give us any clues about why the kingdom went to war in 1642? Source 8	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/2874-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 23, "total-input-tokens": 34388, "total-output-tokens": 6509, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 641, 1 ], [ 641, 2504, 2 ], [ 2504, 3135, 3 ], [ 3135, 4129, 4 ], [ 4129, 4837, 5 ], [ 4837, 6594, 6 ], [ 6594, 7193, 7 ], [ 7193, 7285, 8 ], [ 7285, 9156, 9 ], [ 9156, 9668, 10 ], [ 9668, 11420, 11 ], [ 11420, 12636, 12 ], [ 12636, 14455, 13 ], [ 14455, 16166, 14 ], [ 16166, 16899, 15 ], [ 16899, 17518, 16 ], [ 17518, 18989, 17 ], [ 18989, 19450, 18 ], [ 19450, 19460, 19 ], [ 19460, 21053, 20 ], [ 21053, 21484, 21 ], [ 21484, 23118, 22 ], [ 23118, 23589, 23 ] ] }
516f92914b3fefa7950c5ea99ab878b2e667299e	Why did people go to war in 1642? Case study 1: 1637-39 – Source 4 An announcement from Charles to the people of Scotland, May 1639 (Catalogue ref: SP 45/10/225) What is this source? This is an extract from a proclamation (announcement or order) made by Charles at Newcastle on 14 May 1639 telling people in Scotland what he wanted them to do. He was trying to end rebellion in Scotland. Charles was king of England and Scotland. He wanted the English and the Scots to obey the same laws and he wanted the English and Scottish churches to be run the same way. What’s the background to this source? Charles had been facing rebellion from his subjects in Scotland since 1637. The Scots refused to accept changes that Charles wanted to make to the church in Scotland. - Throughout the 1630s Charles and his Archbishop of Canterbury, William Laud, brought changes to the organisation of the church and also to the way people worshipped in church. Charles and Laud wanted to make the clergy, especially bishops, more important and powerful. Many Protestants in England and Scotland disliked these changes. - In 1637 Charles and Laud tried to force the Scots to accept a new prayer book. The Scots refused. (Religion was a very important issue to everyone in Scotland and England.) - In February 1638 the Scottish rebels formed themselves into a National Assembly. They signed a Covenant (agreement) banning the new prayer book. - The Covenanters (rebels who supported the Covenant) then went on to get rid of other changes brought in by Laud. In November they abolished bishops altogether. http://www.nationalarchives.gov.uk/education/ Charles would not put up with this challenge to his authority. In November 1638 Charles raised an army and tried to crush the Scots, but he failed. It’s worth knowing that ... Charles raised an army to fight the Scots in 1638. By May 1639, when this proclamation was made, Charles did not have enough money to continue the fight. This meant he had to try and reach an agreement with the Scottish rebels. Although Charles threatened to invade Scotland, he did not have a good enough army to do this. He did not have enough money for a large, well-equipped army. To get the money he needed, he would have to ask his Parliament. However, Charles did not like working with Parliament. He ruled without it from 1629-40. By the time he did call Parliament in 1640, many MPs were anxious to tell the king why they were unhappy about many aspects of his rule. Plus his conflict with the Scots dragged on until October 1640. Your turn: What can we learn from this source? 1. What did the king offer the Scots? 2. What did the Scots have to promise in return? 3. How would you describe Charles’s attitude towards the Scots? 4. Does this source give us any clues about why the kingdom went to war in 1642? 5. Study the notes that support this source. 6. What problems caused the rebellion in Scotland? 7. What other problems did the Scottish rebellion cause for Charles? By the King. CHARLES by the grace of God, King of England, Scotland, France, and Ireland, Defender of the Faith, &c. To all our loving Subjects whom it shall or may concern; Greeting. Whereas we are thus farre advanced in our Royall Person with our Arme, and the attendance of our Nobilitie and Gentry of this Kingdome, and intend to be shortly at our good Towne of Barwicke, with purpose to give our good people of Scotland all such satisfaction in Parliament, as one as the present disorders, and tumultuous proceedings of some there, are quieted; and will leave us a faire way of comming like a gracious King to declare our good meaning to them. But finding some cause of Impediment, and that this Nation both apprehend (that contrary to their professions) there is an intention to invade this our Kingdome of England, we doe therefore to clear all doubts, that may breed scruples in the minds of our good Subjects of either Kingdome, reiterate this our just and reall protestation: That if all civil and temporall obedience be effectually and timely given and shewn unto us, we doe not intend to invade them with any hostility. But if they shall without our especiall Authoritie and Command raise any armed Troops, and draw them doyle within ten miles of our Border of England, we shall then interpret that as an Invasion of our said Kingdome of England, and in that case doe expressly command the Generall of our Army, and our Superiour Officers of the same, respectively to proceed against them as Rebels, and Invaders of this our Kingdome of England, and to the utmost of their power to set upon them and destroy them, in which they shall doe a singular service, both to our honour and safety. Given at our Court at Newcastle the fourteenth day of May, in the fifteenth year of our Reign. God save the King.	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/2875-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 3, "total-input-tokens": 4675, "total-output-tokens": 1241, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 1638, 1 ], [ 1638, 3003, 2 ], [ 3003, 4821, 3 ] ] }
2b1287f2ab3dca184df9ccd441380ea82c647cf2	Why did people want the king back in 1646? Activity Part 1 Historians have always been puzzled about why Charles had so much support in 1646. The best explanation they can come up with is that: - People wanted peace and stability. They felt you could not have that without a king. Living through civil war was worse than living under Charles I’s rule. - Rule by Parliament’s County Committees was worse than living under Charles I’s rule. - Many people were suspicious that some Parliament leaders had radical (extreme) and dangerous ideas. People thought that getting Charles back on the throne would stop these radical Parliament leaders. Work your way through the sources in the two case studies. Make a note of any sources that provide evidence to support the explanations that historians have come up with. This research table might help you. Open the table and print it out or save it to your computer. Research table Why did Charles have so much support in 1646? Work your way through the sources in the two case studies. Make a note of any sources that provide evidence to support the explanations that historians have come up with to answer this question. \| Factors which explain support for Charles I in 1646 \| Evidence which supports this explanation \| \|--------------------------------------------------\|------------------------------------------\| \| People wanted peace and stability. They felt you could not have that without a king. Living through civil war was worse than living under Charles I’s rule. \| \| \| Rule by Parliament’s County Committees was worse than living under Charles I’s rule. \| \| \| Many people were suspicious that some Parliament leaders had radical (extreme) and dangerous ideas. People thought that getting Charles back on the throne would stop these radical Parliament leaders. \| \| http://www.nationalarchives.gov.uk/education/ Part 2 You are a spy working for a foreign king! The year is 1646. This king is interested in what is happening in England and Scotland. He wants to know why people are now supporting Charles. Your challenge is to write a report for the foreign king. You are not rich or important, but you have a friend in the archives. This means you can look at important documents to get an idea of what people are thinking and writing. You need to provide evidence to back up your answers. (To get that evidence, look at the sources in the two case studies. It will help if you complete Part 1 of this activity first.)	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/2876-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 3, "total-input-tokens": 4515, "total-output-tokens": 636, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 1174, 1 ], [ 1174, 1878, 2 ], [ 1878, 2487, 3 ] ] }
eaf4ba448f343b3fc6bf4f13a46b748c2f020857	Why did people want the king back in 1646? Key people & events Outline of the war - For most of 1642 Royalists and Parliamentarians went round the country trying to get hold of soldiers, weapons and supplies. At a local level, fighting broke out from April. The first big battle was at Edgehill in October 1642. - For the first year of the war the Royalists had the upper hand, but then the Parliamentarians recovered. They joined forces with the Scots in September 1643. - The Royalists were defeated at the Battle of Marston Moor in July 1644. - Despite this, there was a stalemate from August 1644 to early 1645. Neither side could gain total victory. - By this time the majority of the population were fed up with war. They no longer cared about the cause each side was fighting for. - Divisions appeared within the Parliament forces. Some MPs started peace talks with the king, but by February 1645 this came to nothing. - Parliament then reorganised its forces into the well disciplined and well paid New Model Army. The New Model Army won the Battle of Naseby in June 1645. This broke the strength of the Royalists. - Charles finally surrendered to the Scottish armies in May 1646. The effects of war Historians think that about 180,000 people died from fighting, accidents and disease. That was about 3.6% of the population. (In World War 1 around 2.6% of the population died). The Civil War also saw terrible events. For example, in May 1644 Royalists massacred the Parliament forces in Bolton. This was provoked by the Parliament troops hanging several Royalist prisoners during the battle. As in most wars, civilians suffered a nightmare experience. Royalists and Parliamentarians were constantly trying to force men to serve in their armies. Both sides took horses, food and other supplies for their armies. Both sides forced people to provide free food and shelter to whichever troops turned up in their village or farm. In some areas people formed their own armies to keep the Royalists and Parliamentarians away from their homes. There was widespread fear that army discipline would collapse and law and order would break down. Support for Charles As the war went on Parliament gained the upper hand. One of the reasons for this was their effective use of the lands they controlled, especially London, with its large population and great wealth. Parliament appointed loyal men to be on County Committees. These men collected the taxes Parliament needed, rounded up horses and supplies for the army, and carried out any other commands Parliament sent out. The County Committees were often harsh and ruthless, but they were effective. This helps to explain why Parliament won the war. They were able to keep large armies supplied better than the Royalists. As Parliament forces took over more of the country, the rule of County Committees spread. Strangely, this factor eventually helped to increase support for Charles I. The County Committees were so good at collecting taxes that they made Charles’s rule appear to be less harsh! There were other concerns as well. Many of the men in County Committees were Puritans. They believed that churches and church services should be simple. In many areas they destroyed the decorations, statues and paintings in local churches. This sometimes upset local people. Another factor that concerned people was the growing power of the army. The army needed heavy taxes to pay for it. Some of the army commanders were also MPs and Puritans. As time went on the army became an important political force. Many people were suspicious of this. They believed that the army should not have political ideas. It should simply do what Parliament or the king told it to do. All of these factors helped to turn people towards Charles. It was not so much that they loved the king. Rather, it was that rule by the king was less unpleasant than rule by Parliament and the army. Find out more British Civil Wars, Commonwealth and Protectorate, 1638-60 http://www.british-civil-wars.co.uk/index.htm The Civil War in the west http://www.bbc.co.uk/history/war/englishcivilwar/west_01.shtml The English Civil War http://www.thevickerage.worldonline.co.uk/ecivil/	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/2877-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 2, "total-input-tokens": 3797, "total-output-tokens": 1009, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 2149, 1 ], [ 2149, 4207, 2 ] ] }
4654053a49acc01160210d5cbfbc10e61e79b52c	Why did Britain become a republic? Case study 2: New government Even today many people are not aware that Britain was ever a republic. After Charles I was put to death in 1649, a monarch no longer led the country. Instead people dreamed up ideas and made plans for a different form of government. Find out more from these documents about what happened next. Report on the arrest of Levellers, 1649 An account of the setting up of the Commonwealth Poem on the new situation in England, 1649 Portrait & symbols of Cromwell & the Commonwealth Cromwell at the Battle of Worcester, 1651 The setting up of the Instrument of Government http://www.nationalarchives.gov.uk/education/ Case study 2: New government - Source 1 A report on the arrest of some Levellers, 29 March 1649 (Catalogue ref: SP 25/62, pp.134-5) What is this source? This is a report from a committee of MPs to Parliament. It explains their actions against the leaders of the Levellers. One of the men they arrested was John Lilburne, a key figure in the Leveller movement. What’s the background to this source? Before the war of the 1640s it was difficult and dangerous to come up with new ideas and try to publish them. However, during the Civil War censorship was not strongly enforced. Many political groups emerged with new ideas at this time. One of the most radical (extreme) groups was the Levellers. From 1645 onwards Lilburne and other writers published pamphlets that set out a range of ideas. They organised petitions that gained thousands of signatures. The Levellers wanted the vote to be given to all men, not just rich gentlemen. As well as big political ideas, the Levellers also highlighted important everyday issues. They complained about high food prices that the poor could not afford. They complained about poor pay and late pay for the soldiers in the army. They gained a lot of support from the poor in the towns and among the ordinary soldiers of the New Model Army. Not surprisingly, their ideas were alarming to the nobles and gentry. Their support in the army also worried the army commanders. In May 1649 Levellers in the army led a mutiny, a rebellion against the army leaders at Burford in Oxfordshire. It’s worth knowing that ... This document was published soon after the king was executed in 1649, so England was a republic. Many radical thinkers like the Levellers hoped that the new England would be a better place. As this source shows, their hopes were not really fulfilled. http://www.nationalarchives.gov.uk/education/ A republic is a nation whose head of state is not a monarch. For example a country that is headed by a President might be called a republic. Your turn: What can we learn from this source? 1. Who are arrested? 2. Why were they arrested? 3. What does this tell you about society at the time? 4. What was the title of the book Lilburne was reading from? 5. Try and guess what kind of things the book was saying. Use the notes and the key people & events section to help you. (See key people & events) Source 1 That it be reported to the House, That in pursuance of their Order of the 24th of March instant — This Commissary hath caused several persons to be apprehended, viz. Lieutenant Colonel John Lilburne, Mr. William Walwyn, Mr. Richard Overton & — Mr. Thomas Pym. That the Commissary hath been informed by some witnesses, who were before the Commissary, that the said Colonel Lilburne did read the Books called England — now Chances discovered, on Sunday last at — Winchester House, before a great multitude of people, and persuaded Subscriptions to it, and endeavoured to answer objections made against it. And did there affirms that himself, and three others — Mr. Walwyn, Mr. Pym and Mr. Coffin would make good the matter of that Books, with their lives. Case study 2: New government - Source 2 An account of the setting up of the Commonwealth in 1649 (By permission of Taylor & Francis: Memoirs of the Life of Colonel Hutchinson, by his widow Lucy, published by George Routledge, 1906, pp. 272-3) What is this source? This comes from the Memoirs of the life of Colonel Hutchinson written by his wife. Her account was written in the 1660s. It describes his life and career. Her husband was a senior commander in the army and a trusted ally of Cromwell. He also signed Charles I’s death warrant. However, as time went on Colonel Hutchinson became concerned about Cromwell’s actions. What’s the background to this source? England in 1649 was a republic, a state that was not ruled by a monarch. The new state was known as the Commonwealth of England. When the Second Civil War ended in 1648, Charles I was put on trial and executed in January 1649. After this, MPs and the army had to decide on a new way for the country to be ruled. It’s worth knowing that ... There were huge challenges facing the new republic when it was formed in 1649. - There was a lot of sympathy for Charles I and his son (also called Charles). - There was rebellion in Ireland. - The Scots were unhappy about the execution of the king. - England’s enemies in Holland were threatening the country. Your turn: What can we learn from this source? http://www.nationalarchives.gov.uk/education/ 1. What kind of new government was formed after the death of the king? 2. How did the new government work? 3. How did people react to the new government? 4. Was the writer of this source in favour of the new government? 5. What were the achievements of the new government? 6. What was the writer’s view of Cromwell? Source 2 http://www.nationalarchives.gov.uk/education/ After the death of the king it was debated and resolved to change the form of government from monarchical into a commonwealth, and the house of lords was voted dangerous and useless thereunto, and dissolved. A council of state was to be annually chosen for the management of affairs, accountable to the parliament, out of which, consisting of forty councillors and a president, twenty were every year to go off by lot, and twenty new ones to be supplied. It is true, at that time every man almost was fancying a form of government, and angry, when this came forth, that his invention took not place; and among these John Lilburne, a turbulent, spirited man, that never was quiet in anything, published libels; and the levellers made a disturbance with a kind of insurrection which Cromwell soon appeased, they indeed being betrayed by their own leaders. But how the public business went on, how Cromwell finished the conquest of Ireland, how the angry presbyterians spit fire out of their pulpits, and endeavoured to blow up the people against the parliament, how they entered into a treasonable conspiracy with Scotland, who had now received and crowned the son of the late king, who led them in hither in a great army, which the Lord of hosts discomfited; how our public ministers were assassinated and murdered in Spain and Holland; and how the Dutch, in this unsettlement of affairs, hoped to gain by making war, wherein they were beaten and brought to sue for peace,—I shall leave to the stories that were then written; and only in general say that the hand of God was mightily seen in prospering and preserving the parliament till Cromwell’s ambition unhappily interrupted them. Case study 2: New government - Source 3 A poem from May 1649 commenting on the new situation in England (Catalogue ref: SP 9/246/21) What is this source? This comes from a pamphlet about the leading figures behind the trial and execution of Charles I. Those mentioned in the poem include Oliver Cromwell (Nol) and Colonel Pride, who led Pride’s Purge of Parliament (Pryde). What’s the background to this source? From 1646-9 support for Charles I increased across the country. It was not so much that Charles was loved. It was more that rule by Parliament’s County Committees and the New Model Army was even harsher than the king’s rule. Most people wanted stability, an end to war and an end to high taxes to pay for the army. As a result, most MPs tried to reach a settlement with Charles. This was unacceptable to some radical (extreme) MPs and to the army commanders. They put Charles on trial and he was executed. It’s worth knowing that ... The trial and execution of Charles in January 1649 were among the most effective things he ever did. He was seen as standing up to an unpopular minority. After his death many speeches, writings and drawings praised him. However, this did little good. His son, Charles, was not restored as king until 1660. Your turn: What can we learn from this source? 1. What words would you use to describe the attitude of this source towards those who killed the king? 2. According to this source, what did God think of democracy? http://www.nationalarchives.gov.uk/education/ 3. What did the writer of the poem hope that God would do? 4. What does this source tell you about attitudes to the army commanders? 5. Is it possible to tell from this source whether this view was widely held? Source 3 What yet more Fasts, by Rebels made? Oh! what saunter Devils Are these, who on our Lord have laid Their Murthers, Sins, and Evills. What do they think Democracy? Is by the Lord approv'd: No, no, they're finde by Monarchy, Brest long t'will be remov'd: Their Snivelling forth Rebellion in, The Pulpits doth but vex: Our God, and will but hasten him, T'enthroncyong CAROLVS Rex. Then Tom, and Nol, Ireton and Phill— The Dray-man Pryde shall drive Upon a Sledge up Houle-borne Hill, Till at Tyburne they arrive— Case study 2: New government - Source 4 Accounts of public money used in Ireland, with the portrait and symbols of Cromwell and the Commonwealth (Catalogue ref: SP 63/281) What is this source? This is an account from the 1650s setting out what public money had been spent in Ireland and how it was spent. By the time this source was produced Cromwell was Lord Protector, so it must be after 1653. What’s the background to this source? Through the 1640s Irish Catholics rebelled against English control of their country. As a result, Cromwell led his forces to Ireland and defeated the Irish. Cromwell’s main campaigns in Ireland took place in 1649. English control over Ireland became more secure than it had ever been. - English rulers had struggled to control Ireland for many years. - In the early 1600s James I got Protestant settlers to live in Ireland and help him control the Irish, who were Catholics. These settlers had good land and other privileges, and became leading families in Ireland. - The Catholic Irish resented this and in 1641 they rebelled. This rebellion was one of the key factors that triggered off the Civil War in 1642. - As the Civil War raged, the Irish Catholics tried to take control of all of Ireland. - After the king was executed in 1649, the new military government decided that Ireland was a threat. England’s Catholic enemies might be able to use Ireland as a base. So Cromwell led his forces to Ireland to get it back under English control. It’s worth knowing that ... Cromwell is still a hate figure in Ireland today because of the brutal effectiveness of his campaigns in Ireland. Of course, his victories in Ireland made him a hero in Protestant England. Cromwell’s campaigns in Ireland were savage, although many campaigns in Britain and Europe in the 17th century were equally savage. He destroyed the towns of Drogheda and Wexford and killed many of the soldiers and civilians who had been resisting him. He then drew up plans to take land away from Catholic rebels and give it to his soldiers. James I and Charles I had also done this in the past. Many of the Catholic Irish were forced on to poor lands in the west of Ireland. Your turn: What can we learn from this source? 1. This source gives an account of how public money was spent in Ireland. Do you think it might have had other purposes as well? What? 2. Why do you think the shields were shown down the side of this source? 3. Why was a portrait of Oliver Cromwell put on this document? 4. What impression does the images and the text give you of Oliver Cromwell? Case study 2: New government - Source 5 A picture showing Cromwell at the Battle of Worcester, 1651 (Cromwelliana: A chronological detail of events in which Oliver Cromwell was engaged from the year 1642 to his death 1658. Published by Machell Stace, Westminster, 1810) What is this source? This picture is an engraving showing Cromwell fighting at the Battle of Worcester in 1651. The engraving was made by carving the lines of the design onto a hard surface, covering the surface with ink and then printing the design onto paper. What’s the background to this source? This was a battle between Oliver Cromwell’s forces and the Scottish army led by the son of Charles I (also called Charles). - In the first Civil War Charles I faced several enemies - Parliament, the New Model Army and the Scots. However, these enemies were divided and Charles played them off against each other. - In 1648 Charles allied with the Scots against Parliament and the army in the second Civil War. He was defeated and executed in 1649. - England then became a republic, with no monarch. However, Scotland did not. The Scots declared Charles I’s son to be their new king, Charles II. - Charles II invaded England with a Scottish army. Royalist supporters in England joined him. It’s worth knowing that ... Cromwell defeated Charles II at the Battle of Worcester. This battle destroyed Royalist resistance to Cromwell. It also brought Scotland under English control. No monarch had ever achieved so much control over England, Scotland and Ireland as Cromwell. http://www.nationalarchives.gov.uk/education/ Your turn: What can we learn from this source? 1. Can this picture be described as propaganda? Explain your answer. 2. What does the picture say about Cromwell? 3. Do you think Cromwell actually fought in the battle? Test out your views by looking at a detailed account of the Battle at [http://www.british-civil-wars.co.uk/military/1651-worcester.htm](http://www.british-civil-wars.co.uk/military/1651-worcester.htm) Source 5 Case study 2: New government - Source 6 An account of the setting up of the Instrument of Government in 1653 (By permission of Oxford University Press: Firth (ed.), The Memoirs of Edmund Ludlow, Lieutenant-General of the Horse in the Army of the Commonwealth of England, 1625-1672, Vol. 1, Oxford, Clarendon Press, 1894, pp. 370-1) What is this source? This is an extract from the memoirs of Edmund Ludlow. Ludlow was an MP and commander of the Parliamentary armies in the Civil War. He was a hard-line opponent of Charles I and signed his death warrant. Ludlow later clashed with Cromwell when Cromwell closed Parliament in 1653 and became Lord Protector. His memoirs were first published in the 1690s when the monarchy had been restored. For these two reasons the book is very hostile towards Cromwell. What’s the background to this source? The Instrument of Government, dated 15 December 1653, was England's first written constitution. It recorded the basic rules for a new kind of government. It gave power to an elected Lord Protector, advised by a council. Oliver Cromwell became Lord Protector the next day. - By 1653 Cromwell and other army commanders were frustrated. They had a vision of a more religious, godly country. - Most MPs in the Rump Parliament did not share this vision. The MPs were afraid of extreme political and religious groups and tried to crush them. - Cromwell wanted a more tolerant approach to these groups, as long as they did not cause trouble. Although he has a reputation as a religious fanatic, Cromwell was surprisingly relaxed about other faiths and religious groups. - The Rump Parliament also tried to reduce the size and power of the army because the nobles and gentry were fed up with paying taxes to keep it. http://www.nationalarchives.gov.uk/education/ In 1653 Cromwell lost patience with the Rump and dismissed it. His supporters then made him Lord Protector. It’s worth knowing that ... Cromwell became Lord Protector for life. He ruled until his death in 1658. The office of Lord Protector had many of the powers of a king. However, it was not hereditary. So when Cromwell died, none of his children automatically became ruler. Your turn: What can we learn from this source? 1. What was the Instrument of Government? 2. According to this source, how was it put into place? 3. How can you tell the writer was not in favour of this measure? 4. What were the main terms of the Instrument of Government? 5. What do you notice about the members of Cromwell’s council? At the next meeting of officers it was not thought fit to consult with them at all; but they were openly told by Major-General Lambert, that the General would take care of managing the civil government; and then having required them to repair to their respective charges, where their troops and companies lay, that they might preserve the publick peace, he dismissed them. Thus was this important business that so highly concerned the nation, and in some measure all Europe, in a clandestine manner carried on and huddled up by two or three persons; for more they were not who were let into the secret of it, so that it may justly be called a work of darkness. This Instrument appointed the legislative power to be in the Representative of the people and the Protector; that a Parliament should be chosen every three years, which should sit five months, if they thought fit, without any interruption: that their first meeting should be on the thirteenth of September next ensuing: that the members of whom the Parliament was to consist, should be chosen by the people: that whatsoever they would have enacted, should be presented to the Protector for his consent; and that if he did not confirm it within twenty days after it was first tendred to him, it should have the force and obligation of a law; provided that it extended not to lessen the number or pay of the army, to punish any man on account of his conscience, or to make any alteration in the Instrument of Government; in all which a negative was reserved to the single person. It provided also that all writs should issue out in the Protector’s name: that most of the magistrates should be appointed, and all honours conferred by him: that he should have the power of the militia by sea and land: that in the intervals of Parliament the nation should be governed by the Protector and his council, who were not to exceed the number of one and twenty, nor to be under thirteen. The first persons nominated to be of his council were Major-General Lambert, Col. Desborough, Mr. Henry Lawrence, Sir Charles Wolseley, Col. William Sydenham, Mr. Francis Rouse, Philip Viscount Lisle, Col. Philip Jones, Col. Montague, Mr. Richard Major, Walter Strickland, Esq., Sir Gilbert Pickering, Major-General Skippon, and Sir Anthony Ashley Cooper, in all fourteen.	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/2878-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 18, "total-input-tokens": 26122, "total-output-tokens": 5149, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 679, 1 ], [ 679, 2531, 2 ], [ 2531, 3031, 3 ], [ 3031, 3801, 4 ], [ 3801, 5219, 5 ], [ 5219, 5592, 6 ], [ 5592, 7278, 7 ], [ 7278, 8798, 8 ], [ 8798, 9532, 9 ], [ 9532, 11016, 10 ], [ 11016, 12109, 11 ], [ 12109, 12109, 12 ], [ 12109, 13703, 13 ], [ 13703, 14122, 14 ], [ 14122, 14131, 15 ], [ 14131, 15935, 16 ], [ 15935, 16652, 17 ], [ 16652, 18963, 18 ] ] }
513364b2aec432f97dd7dc9f7f12fdc3fdb17b99	Why did Britain become a republic? Case study 2: New government Even today many people are not aware that Britain was ever a republic. After Charles I was put to death in 1649, a monarch no longer led the country. Instead people dreamed up ideas and made plans for a different form of government. Find out more from these documents about what happened next. Report on the arrest of Levellers, 1649 An account of the setting up of the Commonwealth Poem on the new situation in England, 1649 Portrait & symbols of Cromwell & the Commonwealth Cromwell at the Battle of Worcester, 1651 The setting up of the Instrument of Government http://www.nationalarchives.gov.uk/education/ Case study 2: New government - Source 1 A report on the arrest of some Levellers, 29 March 1649 (Catalogue ref: SP 25/62, pp.134-5) What is this source? This is a report from a committee of MPs to Parliament. It explains their actions against the leaders of the Levellers. One of the men they arrested was John Lilburne, a key figure in the Leveller movement. What’s the background to this source? Before the war of the 1640s it was difficult and dangerous to come up with new ideas and try to publish them. However, during the Civil War censorship was not strongly enforced. Many political groups emerged with new ideas at this time. One of the most radical (extreme) groups was the Levellers. From 1645 onwards Lilburne and other writers published pamphlets that set out a range of ideas. They organised petitions that gained thousands of signatures. The Levellers wanted the vote to be given to all men, not just rich gentlemen. As well as big political ideas, the Levellers also highlighted important everyday issues. They complained about high food prices that the poor could not afford. They complained about poor pay and late pay for the soldiers in the army. They gained a lot of support from the poor in the towns and among the ordinary soldiers of the New Model Army. Not surprisingly, their ideas were alarming to the nobles and gentry. Their support in the army also worried the army commanders. In May 1649 Levellers in the army led a mutiny, a rebellion against the army leaders at Burford in Oxfordshire. It’s worth knowing that ... This document was published soon after the king was executed in 1649, so England was a republic. Many radical thinkers like the Levellers hoped that the new England would be a better place. As this source shows, their hopes were not really fulfilled. A republic is a nation whose head of state is not a monarch. For example a country that is headed by a President might be called a republic. Your turn: What can we learn from this source? 1. Who are arrested? 2. Why were they arrested? 3. What does this tell you about society at the time? 4. What was the title of the book Lilburne was reading from? 5. Try and guess what kind of things the book was saying. Use the notes and the key people & events section to help you. (See key people & events) Source 1 That it be reported to the House, That in pursuance of their Order of the 24th of March instant — This Commissary hath caused several persons to be apprehended, viz. Lieutenant Colonel John Lilburne, Mr. William Walwyn, Mr. Richard Overton & — Mr. Thomas Pym. That the Commissary hath been informed by some witnesses, who were before the Commissary, that the said Colonel Lilburne did read the Book called England — now Chances discovered, on Sunday last at — Winchester House, before a great multitude of people, and persuaded Subscriptions to it, and endeavoured to answer objections made against it. And did there affirms that himself, and three others — Mr. Walwyn, Mr. Pym and Mr. Coffin would make good the matter of that Book, with their lives. Case study 2: New government - Source 2 An account of the setting up of the Commonwealth in 1649 (By permission of Taylor & Francis: Memoirs of the Life of Colonel Hutchinson, by his widow Lucy, published by George Routledge, 1906, pp. 272-3) What is this source? This comes from the Memoirs of the life of Colonel Hutchinson written by his wife. Her account was written in the 1660s. It describes his life and career. Her husband was a senior commander in the army and a trusted ally of Cromwell. He also signed Charles I’s death warrant. However, as time went on Colonel Hutchinson became concerned about Cromwell’s actions. What’s the background to this source? England in 1649 was a republic, a state that was not ruled by a monarch. The new state was known as the Commonwealth of England. When the Second Civil War ended in 1648, Charles I was put on trial and executed in January 1649. After this, MPs and the army had to decide on a new way for the country to be ruled. It’s worth knowing that ... There were huge challenges facing the new republic when it was formed in 1649. - There was a lot of sympathy for Charles I and his son (also called Charles). - There was rebellion in Ireland. - The Scots were unhappy about the execution of the king. - England’s enemies in Holland were threatening the country. Your turn: What can we learn from this source? http://www.nationalarchives.gov.uk/education/ 1. What kind of new government was formed after the death of the king? 2. How did the new government work? 3. How did people react to the new government? 4. Was the writer of this source in favour of the new government? 5. What were the achievements of the new government? 6. What was the writer’s view of Cromwell? Source 2 http://www.nationalarchives.gov.uk/education/ After the death of the king it was debated and resolved to change the form of government from monarchical into a commonwealth, and the house of lords was voted dangerous and useless thereunto, and dissolved. A council of state was to be annually chosen for the management of affairs, accountable to the parliament, out of which, consisting of forty councillors and a president, twenty were every year to go off by lot, and twenty new ones to be supplied. It is true, at that time every man almost was fancying a form of government, and angry, when this came forth, that his invention took not place; and among these John Lilburne, a turbulent, spirited man, that never was quiet in anything, published libels; and the levellers made a disturbance with a kind of insurrection which Cromwell soon appeased, they indeed being betrayed by their own leaders. But how the public business went on, how Cromwell finished the conquest of Ireland, how the angry presbyterians spit fire out of their pulpits, and endeavoured to blow up the people against the parliament, how they entered into a treasonable conspiracy with Scotland, who had now received and crowned the son of the late king, who led them in hither in a great army, which the Lord of hosts discomfited; how our public ministers were assassinated and murdered in Spain and Holland; and how the Dutch, in this unsettlement of affairs, hoped to gain by making war, wherein they were beaten and brought to sue for peace,—I shall leave to the stories that were then written; and only in general say that the hand of God was mightily seen in prospering and preserving the parliament till Cromwell’s ambition unhappily interrupted them. Case study 2: New government - Source 3 A poem from May 1649 commenting on the new situation in England (Catalogue ref: SP 9/246/21) What is this source? This comes from a pamphlet about the leading figures behind the trial and execution of Charles I. Those mentioned in the poem include Oliver Cromwell (Nol) and Colonel Pride, who led Pride’s Purge of Parliament (Pryde). What’s the background to this source? From 1646-9 support for Charles I increased across the country. It was not so much that Charles was loved. It was more that rule by Parliament’s County Committees and the New Model Army was even harsher than the king’s rule. Most people wanted stability, an end to war and an end to high taxes to pay for the army. As a result, most MPs tried to reach a settlement with Charles. This was unacceptable to some radical (extreme) MPs and to the army commanders. They put Charles on trial and he was executed. It’s worth knowing that ... The trial and execution of Charles in January 1649 were among the most effective things he ever did. He was seen as standing up to an unpopular minority. After his death many speeches, writings and drawings praised him. However, this did little good. His son, Charles, was not restored as king until 1660. Your turn: What can we learn from this source? 1. What words would you use to describe the attitude of this source towards those who killed the king? 2. According to this source, what did God think of democracy? http://www.nationalarchives.gov.uk/education/ 3. What did the writer of the poem hope that God would do? 4. What does this source tell you about attitudes to the army commanders? 5. Is it possible to tell from this source whether this view was widely held? Source 3 http://www.nationalarchives.gov.uk/education/ Case study 2: New government - Source 4 Accounts of public money used in Ireland, with the portrait and symbols of Cromwell and the Commonwealth (Catalogue ref: SP 63/281) What is this source? This is an account from the 1650s setting out what public money had been spent in Ireland and how it was spent. By the time this source was produced Cromwell was Lord Protector, so it must be after 1653. What’s the background to this source? Through the 1640s Irish Catholics rebelled against English control of their country. As a result, Cromwell led his forces to Ireland and defeated the Irish. Cromwell’s main campaigns in Ireland took place in 1649. English control over Ireland became more secure than it had ever been. - English rulers had struggled to control Ireland for many years. - In the early 1600s James I got Protestant settlers to live in Ireland and help him control the Irish, who were Catholics. These settlers had good land and other privileges, and became leading families in Ireland. - The Catholic Irish resented this and in 1641 they rebelled. This rebellion was one of the key factors that triggered off the Civil War in 1642. - As the Civil War raged, the Irish Catholics tried to take control of all of Ireland. - After the king was executed in 1649, the new military government decided that Ireland was a threat. England’s Catholic enemies might be able to use Ireland as a base. So Cromwell led his forces to Ireland to get it back under English control. It’s worth knowing that ... Cromwell is still a hate figure in Ireland today because of the brutal effectiveness of his campaigns in Ireland. Of course, his victories in Ireland made him a hero in Protestant England. Cromwell’s campaigns in Ireland were savage, although many campaigns in Britain and Europe in the 17th century were equally savage. He destroyed the towns of Drogheda and Wexford and killed many of the soldiers and civilians who had been resisting him. He then drew up plans to take land away from Catholic rebels and give it to his soldiers. James I and Charles I had also done this in the past. Many of the Catholic Irish were forced on to poor lands in the west of Ireland. Your turn: What can we learn from this source? 1. This source gives an account of how public money was spent in Ireland. Do you think it might have had other purposes as well? What? 2. Why do you think the shields were shown down the side of this source? 3. Why was a portrait of Oliver Cromwell put on this document? 4. What impression does the images and the text give you of Oliver Cromwell? Source 4 http://www.nationalarchives.gov.uk/education/ Case study 2: New government - Source 5 A picture showing Cromwell at the Battle of Worcester, 1651 (Cromwelliana: A chronological detail of events in which Oliver Cromwell was engaged from the year 1642 to his death 1658. Published by Machell Stace, Westminster, 1810) What is this source? This picture is an engraving showing Cromwell fighting at the Battle of Worcester in 1651. The engraving was made by carving the lines of the design onto a hard surface, covering the surface with ink and then printing the design onto paper. What’s the background to this source? This was a battle between Oliver Cromwell’s forces and the Scottish army led by the son of Charles I (also called Charles). - In the first Civil War Charles I faced several enemies - Parliament, the New Model Army and the Scots. However, these enemies were divided and Charles played them off against each other. - In 1648 Charles allied with the Scots against Parliament and the army in the second Civil War. He was defeated and executed in 1649. - England then became a republic, with no monarch. However, Scotland did not. The Scots declared Charles I’s son to be their new king, Charles II. - Charles II invaded England with a Scottish army. Royalist supporters in England joined him. It’s worth knowing that ... Cromwell defeated Charles II at the Battle of Worcester. This battle destroyed Royalist resistance to Cromwell. It also brought Scotland under English control. No monarch had ever achieved so much control over England, Scotland and Ireland as Cromwell. http://www.nationalarchives.gov.uk/education/ Your turn: What can we learn from this source? 1. Can this picture be described as propaganda? Explain your answer. 2. What does the picture say about Cromwell? 3. Do you think Cromwell actually fought in the battle? Test out your views by looking at a detailed account of the Battle at [http://www.british-civil-wars.co.uk/military/1651-worcester.htm](http://www.british-civil-wars.co.uk/military/1651-worcester.htm) Source 5 Case study 2: New government - Source 6 An account of the setting up of the Instrument of Government in 1653 (By permission of Oxford University Press: Firth (ed.), The Memoirs of Edmund Ludlow, Lieutenant-General of the Horse in the Army of the Commonwealth of England, 1625-1672, Vol. 1, Oxford, Clarendon Press, 1894, pp. 370-1) What is this source? This is an extract from the memoirs of Edmund Ludlow. Ludlow was an MP and commander of the Parliamentary armies in the Civil War. He was a hard-line opponent of Charles I and signed his death warrant. Ludlow later clashed with Cromwell when Cromwell closed Parliament in 1653 and became Lord Protector. His memoirs were first published in the 1690s when the monarchy had been restored. For these two reasons the book is very hostile towards Cromwell. What’s the background to this source? The Instrument of Government, dated 15 December 1653, was England's first written constitution. It recorded the basic rules for a new kind of government. It gave power to an elected Lord Protector, advised by a council. Oliver Cromwell became Lord Protector the next day. - By 1653 Cromwell and other army commanders were frustrated. They had a vision of a more religious, godly country. - Most MPs in the Rump Parliament did not share this vision. The MPs were afraid of extreme political and religious groups and tried to crush them. - Cromwell wanted a more tolerant approach to these groups, as long as they did not cause trouble. Although he has a reputation as a religious fanatic, Cromwell was surprisingly relaxed about other faiths and religious groups. - The Rump Parliament also tried to reduce the size and power of the army because the nobles and gentry were fed up with paying taxes to keep it. http://www.nationalarchives.gov.uk/education/ In 1653 Cromwell lost patience with the Rump and dismissed it. His supporters then made him Lord Protector. It’s worth knowing that ... Cromwell became Lord Protector for life. He ruled until his death in 1658. The office of Lord Protector had many of the powers of a king. However, it was not hereditary. So when Cromwell died, none of his children automatically became ruler. Your turn: What can we learn from this source? 1. What was the Instrument of Government? 2. According to this source, how was it put into place? 3. How can you tell the writer was not in favour of this measure? 4. What were the main terms of the Instrument of Government? 5. What do you notice about the members of Cromwell’s council? At the next meeting of officers it was not thought fit to consult with them at all; but they were openly told by Major-General Lambert, that the General would take care of managing the civil government; and then having required them to repair to their respective charges, where their troops and companies lay, that they might preserve the publick peace, he dismissed them. Thus was this important business that so highly concerned the nation, and in some measure all Europe, in a clandestine manner carried on and huddled up by two or three persons; for more they were not who were let into the secret of it, so that it may justly be called a work of darkness. This Instrument appointed the legislative power to be in the Representative of the people and the Protector; that a Parliament should be chosen every three years, which should sit five months, if they thought fit, without any interruption: that their first meeting should be on the thirteenth of September next ensuing: that the members of whom the Parliament was to consist, should be chosen by the people: that whatsoever they would have enacted, should be presented to the Protector for his consent; and that if he did not confirm it within twenty days after it was first tendred to him, it should have the force and obligation of a law; provided that it extended not to lessen the number or pay of the army, to punish any man on account of his conscience, or to make any alteration in the Instrument of Government; in all which a negative was reserved to the single person. It provided also that all writs should issue out in the Protector’s name: that most of the magistrates should be appointed, and all honours conferred by him: that he should have the power of the militia by sea and land: that in the intervals of Parliament the nation should be governed by the Protector and his council, who were not to exceed the number of one and twenty, nor to be under thirteen. The first persons nominated to be of his council were Major-General Lambert, Col. Desborough, Mr. Henry Lawrence, Sir Charles Wolseley, Col. William Sydenham, Mr. Francis Rouse, Philip Viscount Lisle, Col. Philip Jones, Col. Montague, Mr. Richard Major, Walter Strickland, Esq., Sir Gilbert Pickering, Major-General Skippon, and Sir Anthony Ashley Cooper, in all fourteen.	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/2879-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 18, "total-input-tokens": 26122, "total-output-tokens": 4995, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 679, 1 ], [ 679, 2484, 2 ], [ 2484, 2984, 3 ], [ 2984, 3752, 4 ], [ 3752, 5170, 5 ], [ 5170, 5543, 6 ], [ 5543, 7229, 7 ], [ 7229, 8749, 8 ], [ 8749, 9017, 9 ], [ 9017, 10501, 10 ], [ 10501, 11594, 11 ], [ 11594, 11650, 12 ], [ 11650, 13244, 13 ], [ 13244, 13663, 14 ], [ 13663, 13672, 15 ], [ 13672, 15476, 16 ], [ 15476, 16193, 17 ], [ 16193, 18504, 18 ] ] }
8874bd6ac097b0af2c249d933fb123abfc131689	Why did Britain become a republic? Case study 2: New government - Source 6 An account of the setting up of the Instrument of Government in 1653 (By permission of Oxford University Press: Firth (ed.), The Memoirs of Edmund Ludlow, Lieutenant-General of the Horse in the Army of the Commonwealth of England, 1625-1672, Vol. 1, Oxford, Clarendon Press, 1894, pp. 370-1) What is this source? This is an extract from the memoirs of Edmund Ludlow. Ludlow was an MP and commander of the Parliamentary armies in the Civil War. He was a hard-line opponent of Charles I and signed his death warrant. Ludlow later clashed with Cromwell when Cromwell closed Parliament in 1653 and became Lord Protector. His memoirs were first published in the 1690s when the monarchy had been restored. For these two reasons the book is very hostile towards Cromwell. What’s the background to this source? The Instrument of Government, dated 15 December 1653, was England's first written constitution. It recorded the basic rules for a new kind of government. It gave power to an elected Lord Protector, advised by a council. Oliver Cromwell became Lord Protector the next day. - By 1653 Cromwell and other army commanders were frustrated. They had a vision of a more religious, godly country. - Most MPs in the Rump Parliament did not share this vision. The MPs were afraid of extreme political and religious groups and tried to crush them. - Cromwell wanted a more tolerant approach to these groups, as long as they did not cause trouble. Although he has a reputation as a religious fanatic, Cromwell was surprisingly relaxed about other faiths and religious groups. http://www.nationalarchives.gov.uk/education/ • The Rump Parliament also tried to reduce the size and power of the army because the nobles and gentry were fed up with paying taxes to keep it. • In 1653 Cromwell lost patience with the Rump and dismissed it. His supporters then made him Lord Protector. It’s worth knowing that ... Cromwell became Lord Protector for life. He ruled until his death in 1658. The office of Lord Protector had many of the powers of a king. However, it was not hereditary. So when Cromwell died, none of his children automatically became ruler. Your turn: What can we learn from this source? 1. What was the Instrument of Government? 2. According to this source, how was it put into place? 3. How can you tell the writer was not in favour of this measure? 4. What were the main terms of the Instrument of Government? 5. What do you notice about the members of Cromwell’s council? At the next meeting of officers it was not thought fit to consult with them at all; but they were openly told by Major-General Lambert, that the General would take care of managing the civil government; and then having required them to repair to their respective charges, where their troops and companies lay, that they might preserve the publick peace, he dismissed them. Thus was this important business that so highly concerned the nation, and in some measure all Europe, in a clandestine manner carried on and huddled up by two or three persons; for more they were not who were let into the secret of it, so that it may justly be called a work of darkness. This Instrument appointed the legislative power to be in the Representative of the people and the Protector; that a Parliament should be chosen every three years, which should sit five months, if they thought fit, without any interruption: that their first meeting should be on the thirteenth of September next ensuing: that the members of whom the Parliament was to consist, should be chosen by the people: that whatsoever they would have enacted, should be presented to the Protector for his consent; and that if he did not confirm it within twenty days after it was first tendred to him, it should have the force and obligation of a law; provided that it extended not to lessen the number or pay of the army, to punish any man on account of his conscience, or to make any alteration in the Instrument of Government; in all which a negative was reserved to the single person. It provided also that all writs should issue out in the Protector’s name: that most of the magistrates should be appointed, and all honours conferred by him: that he should have the power of the militia by sea and land: that in the intervals of Parliament the nation should be governed by the Protector and his council, who were not to exceed the number of one and twenty, nor to be under thirteen. The first persons nominated to be of his council were Major-General Lambert, Col. Desborough, Mr. Henry Lawrence, Sir Charles Wolseley, Col. William Sydenham, Mr. Francis Rouse, Philip Viscount Lisle, Col. Philip Jones, Col. Montague, Mr. Richard Major, Walter Strickland, Esq., Sir Gilbert Pickering, Major-General Skippon, and Sir Anthony Ashley Cooper, in all fourteen.	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/2880-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 3, "total-input-tokens": 4454, "total-output-tokens": 1214, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 1694, 1 ], [ 1694, 2560, 2 ], [ 2560, 4871, 3 ] ] }
10469b1d500c7ba44c12935d2aec854de24e1e41	Why did Britain become a republic? Key people & events Charles and his enemies After Charles I surrendered in 1646 he was held prisoner. He was in no danger. None of his enemies wanted to harm him. None of them wanted to get rid of the monarchy. They all wanted to make some kind of agreement with him. However, they were deeply divided about what this agreement should be. The Scots The Scots were prepared to have Charles as king. They wanted Charles to leave the Scottish church alone and also create a new Church of England that was exactly like the Scottish Presbyterian Church. Moderate MPs Moderate MPs were the ones who did not hold extreme views, but were sort of middle-of-the-road in their ideas. Many MPs, probably the majority, were horrified by the damage and chaos caused by the Civil War. Some believed it was God’s punishment for opposing Charles. They were now prepared to give Charles virtually all the powers he had had before the Civil War. They did not trust the army leaders like Cromwell, many of whom were hard-line Puritans. Many moderate MPs wanted the church to stay as it was and not become more Puritan. They also wanted the army to disband because of the enormous cost of paying for it. England had never had a full time army before and people were not used to paying the heavy taxes needed to keep it. Moderates were also worried by the Levellers, and were more afraid of them than the monarchy. Radical MPs and the army Radicals MPs held more extreme views. They were not prepared to give the king everything he wanted. They were probably a minority, but the leaders of the New Model Army supported them. Some radical MPs were also senior army officers, such as Oliver Cromwell. Radicals wanted a settlement with the king that would put some limits on his power. They also wanted greater freedom for groups like the Puritans to be able to worship God in their own ways. However, the radicals shared the moderates’ worries about the Levellers. Levellers The Levellers were a small but noisy group calling for big changes in society. For example, they wanted the vote to be given to all men, not just rich gentlemen. They also wanted to put the king on trial for treason (betrayal of the country). They had a lot of support from ordinary soldiers in the army and some support in the towns. The Second Civil War Charles took advantage of divisions among his opponents. He knew that many people were concerned about the growing power of the army. He knew that support for him was increasing among ordinary people. They remembered the bad aspects of Charles’s reign, but they also felt that rule by Parliament and the army had turned out to be even worse. Charles kept talking to Parliament and the Scots throughout 1646 and 1647. Then in November 1647 he escaped from Hampton Court. He fled to the Isle of Wight and made an alliance with the Scots. In return, he agreed to the Scots’ demands about the English church. In the summer of 1648 the Scots invaded England and Royalists in southern England also attacked the army. The Second Civil War lasted until August 1648. Oliver Cromwell defeated the Scots at Preston. Sir Thomas Fairfax defeated the Royalists in the south. Military takeover The Second Civil War was every bit as vicious as the first. It made the radicals determined to put Charles on trial for treason. However, Parliament was still divided. Many moderate MPs felt that putting the king on trial was wrong and would offend God. They also worried that the army was getting too powerful. They were fed up with paying heavy taxes to keep the army supplied and paid. Taxes now were far higher than they had been under Charles I. In September they opened talks with Charles to try and reach a treaty. When the terms of this new treaty were announced many radical MPs and army leaders were disappointed. Charles refused to accept limits on the powers of bishops (some radicals wanted to get rid of bishops altogether). Parliament was to control the militia, the local armies, for ten years. This upset some radicals who believed that Charles should not control the militia at all. In November the army published a ‘Remonstrance’ calling for the king to be put on trial. The great majority of MPs were against this. In order to get their way, the army leaders took control. In December 1648 Colonel Pride led troops into Parliament and threw out all of the MPs who did not support putting the king on trial. This event was called Pride’s Purge. The trial and execution of Charles I The remaining MPs (known as the Rump Parliament) agreed to put Charles on trial. He behaved with great dignity during the trial, but was found guilty, condemned to death and executed on 30 January 1649. England was now a republic, a country without a monarch at its head. In theory, it was ruled by the remaining MPs in Parliament. However, the dominant force in the land was now the army, and the key figure in the army was Oliver Cromwell. The rise of Cromwell The life of Oliver Cromwell in the years 1642-53 is incredible. He rose from a minor country landowner to become more powerful than any Tudor or Stuart monarch had ever been. - 1640-2: Cromwell was elected MP for Cambridge. As a Puritan, he was a strong supporter of Pym and Hampden. - 1642-7: When Civil War broke out Cromwell recruited his own troop of cavalry and paid for them himself. He had no previous military experience. Despite this, he turned out to be a brilliant soldier and commander. - 1647-9: By 1647 Cromwell was one of the commanders of the New Model Army. He tried hard to reach a settlement with Charles I. According to Cromwell, Charles betrayed him and started the Second Civil War. During this war Cromwell took command of the New Model Army. After the war Cromwell reluctantly agreed with other army commanders that Charles should be tried and executed. Cromwell, the Levellers, Ireland and Scotland Cromwell became increasingly powerful after the death of Charles I. His military skill, his burning religious faith and the support of the army meant that by the early 1650s he was the most powerful person in Britain. - In May 1649 Cromwell and Sir Thomas Fairfax crushed the Levellers, who had mutinied (rebelled) in the army. - Cromwell then took the army to Ireland and ruthlessly crushed the Irish rebels. His Irish campaigns in 1649-50 were by far the most savage of his career, probably because his Irish enemies were Catholics. No English monarch had ever managed to control Ireland so completely. - In 1650 the Scots made Charles II (son of Charles I) their king. This threatened the republic. Cromwell took his army to Scotland, but Charles II responded by invading England. The two sides met in a great battle at Worcester in 1651. This campaign is sometimes known as the third civil war. - The Battle of Worcester brought Scotland under the control of England. No previous English ruler had achieved this level of control over Ireland and Scotland. Cromwell as Lord Protector Cromwell was not just a soldier. He was a politician and he had a vision to make Britain a better place, one that God, in his opinion, would be pleased with. To do this, he was prepared to use force if he had to, but he was also clever at working out compromises and deals. The Rump Parliament ruled England from 1649-53. The Rump MPs were afraid of radical political and religious groups and tried to crush them. Cromwell wanted a more tolerant approach to these groups, as long as they did not cause trouble. The Rump also tried to reduce the size and power of the army because it cost a lot in taxation to maintain. In 1653 Cromwell lost patience with the Rump and dismissed it. His supporters then made him Lord Protector. He ruled until his death in 1658. Find out more British Civil Wars, Commonwealth and Protectorate, 1638-60 http://www.british-civil-wars.co.uk/index.htm Charles I http://www.royal.gov.uk/output/Page76.asp Execution of Charles I http://www.bbc.co.uk/history/state/monarchs_leaders/charlesi_execution_01.shtml http://www.historylearningsite.co.uk/CharlesI_execution.htm Oliver Cromwell http://www.bbc.co.uk/history/state/monarchs_leaders/cromwell_01.shtml http://www.olivercromwell.org/ The curse of Cromwell http://www.irelandseye.com/aarticles/history/events/dates/cromwell.shtml	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/2881-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 5, "total-input-tokens": 8797, "total-output-tokens": 2097, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 1678, 1 ], [ 1678, 3765, 2 ], [ 3765, 5774, 3 ], [ 5774, 7792, 4 ], [ 7792, 8342, 5 ] ] }
b1a6abad3ab8ca792011812c6e475acf8f2cf9c9	Gambling behaviour in Great Britain in 2016 Evidence from England, Scotland and Wales Authors: Anne Conolly, Byron Davies, Elizabeth Fuller, Nikki Heinze, Heather Wardle Date: September 2018 Prepared for: Gambling Commission At NatCen Social Research we believe that social research has the power to make life better. By really understanding the complexity of people’s lives and what they think about the issues that affect them, we give the public a powerful and influential role in shaping decisions and services that can make a difference to everyone. And as an independent, not for profit organisation we’re able to put all our time and energy into delivering social research that works for society. Contents Executive summary ................................................................. 1 1 Introduction ............................................................................. 5 1.1 Background and aims .......................................................... 5 1.2 Overview of study design ...................................................... 5 1.2.1 Sources of data ............................................................ 5 1.2.2 Weighting .................................................................. 6 1.3 Caveats .............................................................................. 6 1.4 Report and table conventions .............................................. 8 2 Past year gambling participation ............................................. 11 2.1 Introduction ....................................................................... 11 2.2 Past year gambling participation by socio-demographic characteristics .... 11 2.2.1 Participation in gambling activities in the past 12 months, by sex .......... 11 2.2.2 Participation in gambling activities in the past 12 months, by age and sex ........................................................................................................... 14 2.2.3 Participation in gambling activities in the past 12 months, by ethnic group .............................................................................................................. 19 2.2.4 Participation in gambling activities in the past 12 months, by economic activity ........................................................................................................ 21 2.2.5 Participation in gambling activities in the past 12 months, by country and region ........................................................................................................ 23 2.2.6 Participation in gambling activities in the past 12 months, by mental health.............................................................................................................. 26 2.2.7 Participation in gambling activities in the past 12 months, by well-being ..... 29 2.2.8 Participation in gambling activities in the past 12 months, by weekly alcohol consumption ......................................................................................... 32 3 Frequency of gambling participation ........................................ 37 3.1 Introduction ....................................................................... 37 3.2 Frequency of gambling participation in past year gamblers ............... 37 3.2.1 Frequency of gambling participation in the past 12 months, by age and sex .............................................................................................................. 37 3.2.2 Frequency of gambling participation in the past 12 months, by ethnicity ..... 41 3.2.3 Frequency of gambling participation in the past 12 months, by economic activity ........................................................................................................ 42 3.2.4 Frequency of gambling participation in the past 12 months, by region and country ........................................................................................................ 43 3.2.5 Frequency of gambling participation in the past 12 months, by mental health ................................................................. 45 3.2.6 Frequency of gambling participation in the past 12 months, by well-being ................................................................. 45 3.2.7 Frequency of gambling participation in the past 12 months, by alcohol consumption ................................................................. 46 4 Prevalence and profile of low risk and moderate risk gamblers ........................................................................................................... 49 4.1 Introduction .................................................................................................................................................................................. 49 4.2 Prevalence of low risk and moderate risk gambling .................................................................................................................. 50 4.2.1 Low risk and moderate risk gambling prevalence by age and sex .................................................................................. 50 4.2.2 Number of low risk and moderate risk gamblers in the population .............................................................................. 53 4.2.3 Low risk and moderate risk gambling prevalence by activity .......................................................................................... 53 4.2.4 Low risk and moderate risk gambling prevalence by number of gambling activities .......................................................... 56 4.2.5 Low risk and moderate risk gambling prevalence by frequency of gambling participation .................................................. 57 4.3 Profile of low risk and moderate risk gamblers .......................................................................................................................... 59 4.3.1 Low risk and moderate risk gambling prevalence by socio-demographic characteristics .................................................. 59 4.3.2 Low risk and moderate risk gambling prevalence by health indicators ........................................................................ 61 5 Prevalence and profile of problem gamblers .................................................................................................................................. 64 5.1 Introduction .................................................................................................................................................................................. 64 5.2 Problem gambling screens .......................................................................................................................................................... 64 5.2.1 The DSM-IV ........................................................................................................................................................................ 64 5.2.2 The PGSI .............................................................................................................................................................................. 65 5.3 Problem gambling prevalence ...................................................................................................................................................... 65 5.3.1 Prevalence according to the DSM-IV .................................................................................................................................. 65 5.3.2 Prevalence according to the PGSI .................................................................................................................................. 67 5.3.3 Prevalence according to either screen .................................................................................................................................. 69 5.3.4 Number of problem gamblers in the population .................................................................................................................. 71 5.3.5 Problem gambling prevalence by activity .......................................................................................................................... 72 5.3.6 Problem gambling prevalence by number of activities ...................................................................................................... 74 5.3.7 Problem gambling prevalence by frequency of gambling participation ........................................................................ 76 5.4 Profile of problem gamblers .......................................................................................................................................................... 77 5.4.1 Problem gambling prevalence by socio-demographic characteristics .............................................................................. 77 5.4.2 Problem gambling prevalence by health indicators ........................................................................................................ 79 6 Themes and trends ............................................................................................................................................................................. 82 6.1 Key themes .................................................................................................................................................................................. 82 6.2 Trends in gambling behaviours .................................................................................................................................................. 83 Appendix A. Weighting ........................................................................................................................................................................ 86 Appendix B. Scoring the problem gambling screening instruments .................................................................................................. 87 Appendix C. Survey questions Tables Table 2:1 Participation in gambling activities in the past 12 months, by sex ............ 13 Table 2:2 Participation in gambling activities in the past 12 months, by age and sex.. 16 Table 2:3 Participation in gambling activities in the past 12 months, by ethnic group ........................................................................................................... 20 Table 2:4 Participation in gambling activities in the past 12 months, by economic activity ........................................................................................................ 22 Table 2:5 Participation in gambling activities in the past 12 months, by country .... 24 Table 2:6 Participation in gambling activities in the past 12 months, by English region ........................................................................................................... 25 Table 2:7 GHQ-12 scores .......................................................................................... 26 Table 2:8 Participation in gambling activities in the past 12 months, by mental ill health ........................................................................................................... 28 Table 2:9 WEMWBS scores ...................................................................................... 29 Table 2:10 Participation in gambling activities in the past 12 months, by WEMWBS (Warwick-Edinburgh Mental Well-being Score) ........................................ 31 Table 2:11 Weekly alcohol consumption .................................................................. 32 Table 2:12 Participation in gambling activities in the past 12 months, by weekly alcohol consumption .................................................................................. 34 Table 3:1 Frequency of gambling participation in the past 12 months, by age and sex ........................................................................................................... 39 Table 3:2 Frequency of gambling participation (excl. National Lottery draws) in the past 12 months, by age and sex ........................................................................ 40 Table 3:3 Frequency of gambling participation in the past 12 months, by ethnicity ..... 41 Table 3:4 Frequency of gambling participation in the past 12 months, by economic activity ........................................................................................................ 42 Table 3:5 Frequency of gambling participation in the past 12 months, by country ..... 43 Table 3:6 Frequency of gambling participation in the past 12 months, by English region ........................................................................................................... 44 Table 3:7 Frequency of gambling participation in the past 12 months, by mental ill health ........................................................................................................... 45 Table 3:8 Frequency of gambling participation in the past 12 months, by WEMWBS (Warwick-Edinburgh Mental Well-being Score) ................................. 46 Table 3:9 Frequency of gambling participation in the past 12 months, by weekly alcohol consumption .................................................................................. 47 Table 4:1 PGSI Status\\textsuperscript{a}, by age and sex\\textsuperscript{b} ......................................................................................................................... 51 Table 4:2 Number of low risk and moderate risk gamblers (according to PGSI)\\textsuperscript{a} .... 53 Table 4:3 Low risk and moderate risk gambling prevalence\\textsuperscript{a}, by activity\\textsuperscript{b} ................................................................. 55 Table 4:4 Low risk and moderate risk gambling prevalence\\textsuperscript{a}, by number of gambling activities\\textsuperscript{b} ........................................................................ 56 Table 4:5 Low risk and moderate risk gambling prevalence\\textsuperscript{a}, by frequency of gambling participation\\textsuperscript{b} ................................................................. 58 Table 4:6 Low risk and moderate risk gambling prevalence\\textsuperscript{a}, by socio-demographic characteristics\\textsuperscript{b} ........................................................................ 60 Table 4:7 Low risk and moderate risk gambling prevalence\\textsuperscript{a}, by health indicator\\textsuperscript{b} ...... 62 Table 5:1 Problem gambling prevalence according to DSM-IV, by age and sex Table 5:2 Problem gambling prevalence according to PGSI, by age and sex Table 5:3 Problem gambling prevalence according to either DSM-IV or PGSI, by age and sex Table 5:4 Number of problem gamblers according to DSM-IV, PGSI, or either Table 5:5 Problem gambling prevalence according to either DSM-IV or PGSI, by activity Table 5:6 Problem gambling prevalence according to either DSM-IV or PGSI, by number of gambling activities Table 5:7 Problem gambling prevalence according to either DSM-IV or PGSI, by frequency of gambling participation Table 5:8 Problem gambling prevalence according to either DSM-IV or PGSI, by socio-demographic characteristics Table 5:9 Problem gambling prevalence according to either DSM-IV or PGSI, by health indicator Table 6:1 Trends in past year gambling participation in England and Scotland Table 6:2 Trends in problem gambling in England and Scotland Table B:1 DSM-IV items Table B:2 PGSI items Table B:3 PGSI category Figures Figure 2:1 Gambling participation by age Figure 2:2 Gambling participation by weekly alcohol consumption Figure 3:1 Gambling at least once a week by age Figure 4:1 Low risk gambling prevalence (PGSI score of 1 to 2), by age and sex Figure 4:2 Moderate risk gambling prevalence (PGSI score of 3 to 7), by age and sex Figure 4:3 Low risk and moderate risk gambling prevalence, by number of gambling activities Figure 4:4 Low risk and moderate risk gambling prevalence, by frequency of gambling participation Figure 5:1 Problem gambling prevalence according to the DSM-IV, by age Figure 5:2 Problem gambling prevalence according to the PGSI, by age Figure 5:3 Problem gambling prevalence according to either the DSM-IV or PGSI, by age Figure 5:4 Problem gambling prevalence, by number of gambling activities Figure 5:5 Problem gambling prevalence, by frequency of gambling participation Executive summary This report provides information about gambling behaviour in Great Britain using data combined from the Health Survey for England (HSE) 2016, the Scottish Health Survey (SHeS) 2016 and the Wales Omnibus in 2016. The main aims and objectives of this report are: - to describe the prevalence of gambling participation, frequency of gambling participation, the prevalence of low risk, moderate risk and problem gambling; - to explore characteristics associated with gambling participation, frequent gambling, low risk, moderate risk and problem gambling. Participation in gambling activities - 57% of adults (16+) in Great Britain had gambled in the past year, with men (62%) being more likely than women (52%) to do so. - The most popular gambling activities were the National Lottery draws (41%), scratchcards (21%) and other lotteries (14%). - Excluding those who only played the National Lottery draws, around four in ten adults (42%) participated in other types of gambling activities; 46% of men and 38% of women. - For both men and women, overall participation was highest among the middle age groups and lowest among the youngest and oldest age groups. Excluding those who only played the National Lottery draws, gambling participation was highest among younger adults and lowest among those aged 65 and over. - The National Lottery draws were the most popular activity for all age categories apart from those aged 16-24 where the most popular gambling activity was scratchcards. - In 2016, 9% of adults in Great Britain participated in any online gambling with men more likely than women to have gambled online in the past year (15% and 4% respectively). - Participation in any online gambling decreased with age from 16% among 25-34 year olds to 2% among adults aged 75 and over. - Gambling participation rates varied by country; 66% of Scottish adults had gambled in the past year compared to 56% of English and 55% of Welsh adults. - Past year gambling rates were lower among adults with low well-being scores on the Warwick-Edinburgh Mental Well-being scale (WEMWBS) (52%, compared with 58% of other participants). - Gambling participation was related to alcohol consumption. Past year gambling rates were lowest among non-drinkers (36%), followed by those who drank up to 14 units of alcohol per week (59%) and were highest for those who drank more than 14 units per week (69%). - Trend data from England and Scotland showed a decline in overall gambling participation from 65% in 2012, 63% in 2015 to 57% in 2016. When excluding those who had gambled on National Lottery draws only, participation in gambling activities has remained largely stable (43% in 2012, 45% in 2015 and 42% in However, participation in any online gambling or betting increased from 7% in 2012 to 10% in 2015 and 2016. Frequency of gambling participation - Among those who gambled in the past year, four in ten (41%) gambled at least once a week, two in ten (22%) gambled less than weekly but at least once a month and four in ten (38%) gambled less than once a month. - One in eight (13%) of those who gambled in the past year reported gambling more than once a week. - Male gamblers were more likely to gamble more than once a week (17%) than female gamblers (9%). - While overall gambling participation was low among older adults, among those who gambled, doing so more than once a week was strongly associated with increasing age (8% of 16-24 year old gamblers compared to 18% of gamblers aged 75 or older). The same pattern was observed when excluding those who only played the National Lottery draws (7% of 16-24 year old gamblers compared to 20% of gamblers aged 75 or over). Low risk and moderate risk gambling - Low risk and moderate risk gambling was measured using the Problem Gambling Severity Index (PGSI). In addition to problem gamblers, it identifies people who fall below the threshold of problem gambling but may already be experiencing lower levels of harm. - Overall, 2.4% of adults were classified as low risk gamblers (a PGSI score of 1 or 2) and a further 1.1% as moderate risk gamblers (a PGSI score of 3 to 7). Among past year gamblers, 4.4% were classified as low risk gamblers and 2.0% as moderate risk gamblers. - Rates of low risk and moderate risk gambling were higher among men (3.9% were classified as low risk and 1.9% were classified as moderate risk gamblers) than women (1.1% were classified as low risk and 0.4% were classified as moderate risk gamblers). - Rates of low risk gambling were highest among those aged 16 to 24 (5.8%) and lowest among those aged 75 and over (0.4%). Rates of moderate risk gambling were highest among 25 to 34 year olds (2.1%) and 35 to 44 year olds (2.0%). The lowest prevalence of moderate risk gambling was found among those aged 65 and over (0.2%). - The proportions of low risk and moderate risk gamblers increased significantly with the number of gambling activities undertaken in the past 12 months. Rates were lowest for gamblers who had taken part in one type of activity (1% were classified as low risk gamblers and 0.1% as moderate risk gamblers) and highest for those who had participated in 7 or more different types of gambling activities (26.3% were classified as low risk gamblers and 19.9% as moderate risk gamblers). - People who gambled only once or twice in the past year were least likely to be categorised as low risk or moderate risk gamblers (0.7% and 0.1% respectively), while people who gambled two or more times a week were most likely to be classed as either low risk or moderate risk gamblers (9.4% and 8.4% respectively). • Low risk gambling rates were highest among the unemployed (6.6%) and lowest among retired people (0.7%). Moderate risk gambling rates were highest among those who were unemployed or in paid work (both 1.5%) or were otherwise inactive(^2) (1.4%) compared to 0.3% of retired people. • Prevalence of both low risk and moderate risk gambling were also significantly associated with increased weekly alcohol consumption. Low risk and moderate risk gambling were highest among people who drank at a level indicating increased risk (over 14 units per week) (4.9% and 1.8% respectively) and lowest among non-drinkers (1.0% and 0.6% respectively). • Rates of low risk gambling were higher among adults with less than optimal mental health (3.8%) or probable mental ill health (3.3%) than adults with no evidence of mental ill health (1.5%) according to the 12-item General Health Questionnaire (GHQ-12). Moderate risk gambling rates were highest among adults with probable mental ill health (1.8%) and lowest among those with no evidence of mental ill health (0.8%). Problem gambling • Problem gambling is gambling to a degree that compromises, disrupts or damages family, personal or recreational pursuits. Estimates of problem gambling are provided according to two different measurement instruments, the Diagnostic and Statistical Manual of Mental Disorders IV (DSM-IV) and the PGSI. • According to the DSM-IV, problem gambling prevalence among adults living in private households(^3) was 0.6%. Men were more likely than women to be classified as problem gamblers according to the DSM-IV (1.0% and 0.2% respectively). • According to the PGSI, problem gambling prevalence was 0.5%, with men again being more likely than women to be classified as problem gamblers (0.9% and 0.1% respectively). • Problem gambling prevalence measured by either the DSM-IV or the PGSI was 0.7%, with men being more likely than women to be classified as problem gamblers (1.2% and 0.2% respectively). • Among past year gamblers, 1.2% were categorised as problem gamblers according to either the DSM-IV or the PGSI. • For men, the highest proportion of problem gamblers according to either screen was found among those aged 25 to 34 (2.4%). There were no observations of problem gambling among men aged 75 and over, variation by age for women was not statistically significant. • The highest rates of problem gambling were among those who had played machines in bookmakers (13.7%), bet offline on events (other than horse or dog racing or other sports events) (13.1%), reported another gambling activity not covered by the survey questions (11.6%), bet offline on dog racing (9.5%), or gambled online on slots, casino or bingo games (9.2%). • Problem gambling was more prevalent among people who had participated in a number of gambling activities in the past year (prevalence was 13.2% for those who participated in seven or more activities compared to 0.3% for those who had taken part in just one gambling activity in the last year). • The proportion of problem gamblers was highest among those who gambled two or more times a week (4.5%) and lowest among those who gambled only once or twice a year (0.1%). • Problem gambling prevalence was higher among those with probable mental ill health, according to the GHQ-12. Those who scored 4 or more on the GHQ-12 (indicating probable mental ill health) were more likely to be problem gamblers (2.2%) than those with a GHQ-12 score of 0 (indicating no evidence of mental ill health) (0.2%). • Trend data from England and Scotland showed that problem gambling rates according to either screen have remained largely stable ranging from 0.6% in 2012, 0.8% in 2015 and 0.7% in 2016 among all adults. Notes and references 1 This category includes gamblers who participated in online gambling on slots, casino or bingo games, online betting with a bookmaker or online betting using a betting exchange. 2 The other economically inactive group includes people not otherwise classifiable, for example the long-term sick, carers and those looking after home or family. 3 Findings relate to adults aged 16 and over, who live in private households in Great Britain. Those living in institutions, such as prisons, care homes or student halls of residence, and the homeless, were outside the scope of the surveys. There is evidence to suggest that some of these sub-groups are more likely to be problem gamblers. As a result, it is possible that the problem gambling estimates presented in this report may underestimate the prevalence of problem gambling in Great Britain. 1 Introduction 1.1 Background and aims Great Britain has one of the most accessible gambling markets in the world. Traditionally, opportunities to gamble existed in a smaller number of environments including those dedicated primarily to gambling, such as, betting shops, casinos, bingo halls, and amusement arcades. However, with the spread of the internet most types of gambling are now accessible remotely. The range of activities that can be played online vary from playing roulette or slot machines at an online casino, to buying lottery tickets or betting on a horse race via a smart phone. In short, gambling is much more accessible now than it was ten or 20 years ago. With continuing changes in the way gambling is advertised, marketed and regulated, it is important to continue to understand how many people gamble, on what products, and the types of people that participate in the different gambling activities. Gambling is an activity that many people participate in without experiencing problems. However, some people experience difficulties with their gambling behaviour that can lead to a range of adverse consequences. It is therefore vitally important to monitor how many people experience problems and to assess who is most likely to do so, to plan and implement effective gambling policy, interventions and regulation. Following the publication of the report on Gambling behaviour in Great Britain in 2015, gambling continues to be a contested topic within the British political and public sphere. First and foremost, the 2015 report showed the enduring popularity of gambling among the British adult population where 63% of men and women had gambled in the past year. In many cases, this may have taken the form of buying a National Lottery ticket or a scratchcard at the newsagents or placing a bet on a horse at the races. Of greater concern was the finding that 0.8% of adults in Britain were found to be problem gamblers. This equates to approximately 430,000 adults for whom gambling constitutes a serious issue. People with gambling problems often experience a range of health issues, relationship breakdown and difficulties with debt. In more severe cases, gambling problems can lead to crime or thoughts of suicide. The purpose of this report is to provide updated estimates of gambling participation, problem gambling, low risk gambling and moderate risk gambling in England, Scotland and Wales, based on data collected in 2016. Where data is comparable for all three countries, estimates are provided for Great Britain as a whole. 1.2 Overview of study design 1.2.1 Sources of data Until 2010, information about gambling in Great Britain was collected through the bespoke British Gambling Prevalence Survey (BGPS) series. However, following a public consultation on the survey approach and wanting to get more regular large scale updates on problem gambling this survey was discontinued and questions about gambling participation and measures of problem gambling were, from 2012, included in the Health Survey for England (HSE) and the Scottish Health Survey (SHeS). could not be secured on the equivalent health survey for Wales (now part of the National Survey for Wales), so an alternative omnibus survey was used in Wales. In 2014, data from the 2012 HSE and SHeS were combined to produce nationally representative estimates of gambling participation and problem gambling for England and Scotland (see Wardle et al, 2014). In 2017, data from the 2015 HSE, SHeS and the 2015 Wales Omnibus survey were combined to produce a report on gambling behaviours in England, Scotland and Wales. As in 2017, the present report combines data collected as part of the 2016 HSE, SHeS and Wales Omnibus survey. HSE and SHeS are nationally representative surveys of people living in private households in Great Britain, which use similar sampling methods and the same approach to data collection, making these two surveys directly comparable. The same process used in 2014 and 2017 to combine the two surveys was followed for this report; see Wardle et al. (2014) for full details. Because no comparable estimates were available for Wales, in 2015 the Gambling Commission used the Beaufort Research’s omnibus survey to collect information about Welsh gambling behaviour. This was conducted with the express aim of providing the first insight about gambling behaviour in Wales since 2010 and, with some caveats, to combine data with that from England and Scotland to produce estimates of gambling behaviour for the whole of Great Britain. In 2016, data on gambling behaviour in Wales was once again provided by the Beaufort Research’s omnibus survey. Unlike the English and Scottish health surveys, the Welsh omnibus used different methods to collect survey data. Combining these data has to be undertaken with extreme care. In order to do so, a review of the methodology used by each study was carried out for the 2017 report to assess where differences might affect estimates (see Conolly et al., 2017). It was concluded that whilst the variation in methods were liable to produce differences for some estimates, comparison of the figures for England, Scotland and Wales showed that they were broadly similar. The review concluded that, when combined and weighted to reflect the size of the population in each country, these methodological differences were unlikely to affect the overall estimates observed. As in 2017, we therefore present information on gambling participation for England, Scotland and Wales combined where possible in the present report. However, we would caution against making cross national comparisons because of the underlying differences in how the data were collected. 1.2.2 Weighting Full details of the weighting strategies used for the HSE and SHeS individually can be found in their respective technical reports. However, in addition to producing a new combined dataset, a number of further weights were produced to: - scale the data so that it matched the population distribution of England, Scotland and Wales; - weight the data for non-response to both the gambling participation questions and the problem gambling screens. Further details are given in Appendix A. 1.3 Caveats As with any survey, there are a number of caveats which need to be considered when interpreting the estimates presented in this report: • Findings relate to adults aged 16 and over, who live in private households in Great Britain. Those living in institutions such as prisons, military bases, care homes or student halls of residence, and the homeless, were outside the scope of the surveys. There is evidence to suggest that some of these sub-groups are more likely to be problem gamblers. As a result, it is possible that the problem gambling estimates presented in this report may underestimate the prevalence of problem gambling in Great Britain. • The HSE and SHeS are cross-sectional surveys. Associations between gambling behaviour and other characteristics are highlighted but the direction of causality is, generally, not known. • Some people may give ‘socially desirable’ (and potentially dishonest) answers to a questionnaire and may underestimate the extent of their gambling behaviour. • There is an argument that very frequent gamblers are less likely to be at home and available for interview than other sub-groups and are therefore less likely to be included in the study. This therefore may lead to a potential underestimation of the prevalence of problem gambling in Great Britain. • No screen for problem gambling is perfect. The best performing screens should aim to minimise both ‘false positives’ and ‘false negatives’. A false positive is where someone without a gambling problem is classified as a problem gambler. A false negative is where a person with a gambling problem is classified as someone without a gambling problem. The number of false positives and false negatives is related to the thresholds used. The Diagnostic and Statistical Manual of Mental Disorders IV (DSM-IV) threshold used in this report is the same as in the BGPS series and in other international studies. The threshold used for the Problem Gambling Severity Index (PGSI) follows the recommendation of the screen’s developers and is the same as that used in the BGPS 2007 and 2010. • The PGSI has been validated on a Canadian population. It has not been validated in Britain. The DSM-IV criterion was developed as a diagnostic tool and has not been validated for use with the general population. • Estimates of problem gambling measured by either the DSM-IV or the PGSI should not be combined with PGSI low risk and moderate risk estimates to create an overall ‘risk’ figure. This is because these groups are not mutually exclusive (e.g. an individual could be classified as a problem gambler according to the DSM-IV and a moderate risk gambler according to PGSI and would therefore be counted twice in a combined ‘risk’ figure). • The findings presented in this report are descriptive and the analysis does not control for potentially confounding variables. The age profile of different analytical groups may vary (e.g. by economic activity status or by geographical region) and some of the differences in behaviour may be influenced by the differences in age profile. • Finally, a survey estimate is subject to sampling error and should be considered with reference to the confidence intervals (specifically presented for low risk gambling, moderate risk gambling and problem gambling estimates) as well as the survey design and sample size. Where possible, the survey methodology used attempted to overcome these limitations. For example, HSE and SHeS were health surveys, not gambling specific surveys; they used self-completion methods to encourage honest reporting of the gambling questions; the results were weighted to take into account non-response bias and careful consideration was given to the choice of gambling screen and appropriate thresholds for problem gambling. 1.4 Report and table conventions The following conventions are used in this report: - Unless otherwise stated, the tables are based on the responding sample for each individual question (i.e., item non-response is excluded). Therefore bases may differ slightly between tables. - The group to whom each table refers is shown below each table. - The data used in this report have been weighted. The weighting strategy is described in Appendix A. Both weighted and unweighted base sizes are shown at the foot of the table or, where base sizes for individual rows are provided, in the final two columns of the table. The weighted numbers reflect the relative size of each group of the population, not the number of interviews achieved, which is shown by the unweighted base. - The following conventions have been used in the tables: - No observations (zero values) - 0 Non-zero values of less than 0.5% and thus rounded to zero - [ ] An estimate presented in square brackets warns of small sample base sizes. If a group’s unweighted base is less than 30, data for that group are not shown. If the unweighted base is between 30-49, the estimate is presented in square brackets. - - Estimates not shown because base sizes are less than 30. - Because of rounding, row or column percentages may not exactly add to 100%. - A percentage may be presented in the text for a single category that aggregates two or more percentages shown in the table. Because of rounding, the aggregated estimate may differ by one percentage point from the sum of the percentages in the table. - Some questions were multi-coded (i.e., allowing the respondent to give more than one answer). The column percentages for these tables sum to more than 100%. - The term ‘significant’ refers to statistical significance (at the 95% level) and is not intended to imply substantive importance. - Where comparisons are made, only results that are significant at the 95% level are presented in the report commentary. - Using this method of statistical testing, differences which are significant at the 95% level indicate that there is sufficient evidence in the data to suggest that the differences in the sample reflect a true difference in the population. Notes and references 1 Conolly, A., Fuller, E., Jones, H., Maplethorpe, N., Sondaal, A. and Wardle, H. (2017) Gambling behaviour in Great Britain in 2015: evidence from England, Scotland and Wales London: National Centre for Social Research. 2 Gambling questions were included on HSE in 2012, 2015 and 2016. In Scotland, gambling questions have been included in every survey year since 2012. 3 Wardle H., Seabury C., Ahmed H., et al (2014). Gambling behaviour in England and Scotland. http://www.gamblingcommission.gov.uk/PDF/survey-data/Gambling-behaviour-in-England-Scotland-Full-report.pdf The findings of the methodological review are summarised in Appendix A in Conolly, A., Fuller, E., Jones, H., Maplethorpe, N., Sondaal, A. and Wardle, H. (2017) Gambling behaviour in Great Britain in 2015: evidence from England, Scotland and Wales London: National Centre for Social Research. May-Chahal, C., Wilson, A., Humphreys, L., Anderson, J. (2012) Promoting an Evidence-Informed Approach to Addressing Problem Gambling in UK Prison Populations. The Howard Journal, 51(4): 372–386. Analysis of the BGPS 2010 showed that those respondents for whom it took more effort to persuade to take part in the study (i.e., they required multiple calls to contact, were reissued or followed-up by the telephone unit) were more likely to be gamblers. It is worth noting that the significance test (a Wald test) does not establish whether there is a statistically significant difference between any particular pair of subgroups (e.g. the highest and lowest subgroups). Rather it seeks to establish whether the variation in the outcome between groups that is observed could have happened by chance or whether it is likely to reflect some 'real' differences in the population. The test calculates the statistical significance of parameters in a logistic regression model of problem gambling prevalence (for example) in order to establish whether age (for example) is significantly associated with gambling prevalence. Gambling participation in Great Britain - 57% had gambled in the past year - 42% had gambled in the past year (excluding National Lottery draws) - 9% had gambled online in the past year Participation in any gambling activity by sex - 62% of men - 52% of women Gambling participation by economic activity - Unemployed: More likely to have gambled on slot machines, machines in bookmakers and casino table games. - Employed: More likely to have participated in online betting with a bookmaker, offline betting on horse races and other sports events. The most popular gambling activities were: - National Lottery draws: 41% - Scratchcards: 21% - Other lotteries: 14% Most popular among: - 35-64 year olds: National Lottery draws - 25-34 year olds: Scratchcards - Over 55s: Other lotteries 2 Past year gambling participation 2.1 Introduction This chapter looks at levels of participation in gambling, and whether these vary by a range of characteristics. It covers overall participation in any form of gambling as well as participation in individual gambling activities. For all gambling activities, participation was defined as having 'spent money' on the activity over the past year. Participants were shown a list of gambling activities and were asked to think about any gambling they had done over the past 12 months. The activities included in the list were intended to cover all types of gambling available. However, to allow for the possibility that an activity was missed or that participants may have misunderstood an activity description, an option was provided for participants to mention another form of gambling. Gambling participation is examined by a range of socio-demographic characteristics including the age and sex of participants, their ethnic group, economic activity, English region and country. Levels of gambling participation are also compared by a range of health indicators including mental health, well-being and weekly alcohol consumption. 2.2 Past year gambling participation by socio-demographic characteristics 2.2.1 Participation in gambling activities in the past 12 months, by sex Overall participation by sex Overall, 57% of adults aged 16 and over in Great Britain had gambled in the past year. Men were more likely to have gambled (62%) than women (52%). The most popular gambling activity was the National Lottery draws with 41% of adults (46% of men and 37% of women) buying a ticket in the past year. Four in 10 adults (42%) had gambled on activities other than the National Lottery draws; 46% of men and 38% of women. Participation in individual gambling activities by sex Apart from National Lottery draws, the two most popular forms of gambling were scratchcards and other lotteries. Both activities had similar participation rates for men and women; 21% of men and 20% of women had bought scratchcards, and 14% of both, men and women, had participated in other lotteries. Apart from lotteries and scratchcards, the most popular activities were offline betting on horse racing (9% of adults), online betting with a bookmaker (8%) and slot machines (6%). Other activities had participation rates of 5% or less. Overall, men were more likely to participate in most forms of gambling than women. Offline bingo was the only activity where men were less likely to participate than women (3% and 7%, respectively). Men were significantly more likely than women to have used an online bookmaker (13% and 2%, respectively) and to have placed an offline bet on a horse (12% and 7%, respectively) in the past year. Slot machines were also more popular among men than women (8% and 4%, respectively). And men were also more likely to have bet on sports events offline than women, with 9% of men and 1% of women. Overall, around one in ten adults in Great Britain had gambled or bet online. Again, this was much more common among men (15%) than women (4%). \| Participation in gambling activities in the past 12 months \| Sex \| Total \| \|---------------------------------------------------------\|-----\|-------\| \| \| Men \| Women \| % \| \| Lotteries and related products \| \| \| \| \| National Lottery draws \| 46 \| 37 \| 41 \| \| Scratchcards \| 21 \| 20 \| 21 \| \| Other lotteries \| 14 \| 14 \| 14 \| \| Machines/games \| \| \| \| \| Football pools \| 5 \| 1 \| 3 \| \| Bingo (not online) \| 3 \| 7 \| 5 \| \| Slot machines \| 8 \| 4 \| 6 \| \| Machines in a bookmakers \| 5 \| 1 \| 3 \| \| Casino table games (not online) \| 5 \| 1 \| 3 \| \| Poker played in pubs or clubs \| 2 \| 0 \| 1 \| \| Online gambling on slots, casino or bingo games \| 4 \| 2 \| 3 \| \| Betting activities \| \| \| \| \| Online betting with a bookmaker \| 13 \| 2 \| 8 \| \| Betting exchange \| 2 \| 0 \| 1 \| \| Horse races (not online) \| 12 \| 7 \| 9 \| \| Dog races (not online) \| 3 \| 1 \| 2 \| \| Sports events (not online) \| 9 \| 1 \| 5 \| \| Other events (not online) \| 2 \| 0 \| 1 \| \| Spread betting \| 1 \| 0 \| 1 \| \| Private betting \| 6 \| 2 \| 4 \| \| Other gambling activity \| \| \| \| \| Any other gambling \| 2 \| 1 \| 1 \| \| Summaries \| \| \| \| \| Any gambling activity \| 62 \| 52 \| 57 \| \| Any gambling (excluding National Lottery draws only) \| 46 \| 38 \| 42 \| \| Any online gambling or betting \| 15 \| 4 \| 9 \| \| No gambling activity in last 12 months \| 38 \| 48 \| 43 \| \| Weighted base \| 7,204 \| 7,437 \| 14,641 \| \| Unweighted base \| 6,547 \| 8,218 \| 14,765 \| Base: Aged 16 and over, England, Scotland, and Wales \This category excludes gamblers who only participated in the National Lottery draws and not in any other gambling activities. \This category includes gamblers who participated in online gambling on slots, casino or bingo games, online betting with a bookmaker, or online betting using a betting exchange. \Bases for individual activities vary; those shown are for participation in any gambling activity. 2.2.2 Participation in gambling activities in the past 12 months, by age and sex Overall participation by age and sex Overall, the highest participation rates in any form of gambling activity were among adults aged between 25 and 64 (between 60% and 62%), while the lowest rates were found among the youngest and oldest age groups; 46% of 16 to 24 year olds and 47% of those aged 75 and over had gambled in the past year. As Figure 2:1 shows, when those who gambled on the National Lottery draws only were excluded, there was a different age pattern. Participation was highest among adults aged 25 to 34; just over half had gambled in the past year (51%). Participation declined thereafter with age and was lowest among adults aged 75 and over (32%). A similar pattern was seen for online gambling or betting, which was most popular among adults aged 25 to 34 (16%) and least popular among those aged 75 and over (2%). Figure 2:1 Gambling participation by age Base: Aged 16 and over, England, Scotland, and Wales - Any gambling - Any gambling (excl. National Lottery draws) - Any online gambling or betting \| Age Group \| Any Gambling \| Any Gambling (excl. National Lottery draws) \| Any Online Gambling or Betting \| \|-----------\|--------------\|---------------------------------------------\|-------------------------------\| \| 16-24 \| 46 \| 42 \| 14 \| \| 25-34 \| 60 \| 51 \| 16 \| \| 35-44 \| 82 \| 47 \| 12 \| \| 45-54 \| 61 \| 42 \| 8 \| \| 55-64 \| 62 \| 41 \| 6 \| \| 65-74 \| 56 \| 34 \| 3 \| \| 75+ \| 47 \| 32 \| 2 \| Across all age groups at least half of men had gambled on at least one activity in the past 12 months. Participation was highest among men aged 35 to 44, with over two thirds having gambled in the past year (69%). The lowest rates of participation were found among the youngest and oldest age groups; just over half of men aged 16 to 24 (52%) and 75 or over (51%). A similar pattern of participation was seen among women, with the highest rates of participation among those aged between 25 and 74 (between 51% and 60%). As with men, participation among women was lowest in the youngest and oldest age groups (39% and 43% respectively). Excluding those who only participated in the National Lottery draws, there was a slightly different pattern of participation by age for both men and women. Men and women aged between 25 and 64 were the most likely to have gambled in the past year, with those aged 25 to 34 being the most likely to have participated in gambling activities other than the National Lottery draws (58% and 44% respectively). Just under half of men (49%) aged between 16 and 24 had gambled on activities other than the National Lottery draws, compared to women of the same age (35%). The lowest levels of participation in gambling (excluding the National Lottery draws) were found among those aged 65 or older for men and women (Table 2:2). The pattern was similar for online gambling activities, although this was more marked among men, where the proportions who had gambled online declined from about a quarter of those aged between 16 and 35 to just 2% of those aged 75 and over. Participation in individual activities by age and sex Participation in individual gambling activities varied with age. Two distinct patterns of participation by age emerged for individual gambling activities. The first pattern was seen for the National Lottery draws and betting on horse races where participation was highest for the middle and older age groups, and lower for the youngest and oldest adults. Men and women had similar patterns of participation by age in these activities, although participation rates were higher for men than women in both. The other clearly observed pattern was for activities where participation rates declined with increasing age (e.g. scratchcards, playing on slot machines, machines in a bookmakers, private betting). Again, a similar pattern can be observed for men and women, although all these activities are more common for men than women. Overall, scratchcards were more popular with younger adults than older age groups. The highest participation rates were found among those aged 25 to 34, 33% of whom had bought scratchcards in the past 12 months. This was true for men and women, with around a third of women (32%) and men (34%) aged 25 to 34 having played scratchcards in the past year. For young adults aged between 16 and 24, scratchcards were the most popular of all the gambling activities (26% of this age group had bought a scratchcard in the past year). This is in contrast to all other age groups where the National Lottery draws were the most popular activity. Table 2:2 Participation in gambling activities in the past 12 months, by age and sex \| Participation in gambling activities in the past 12 months \| Age group \| 16-24 \| 25-34 \| 35-44 \| 45-54 \| 55-64 \| 65-74 \| 75+ \| \|----------------------------------------------------------\|-----------\|-------\|-------\|-------\|-------\|-------\|-------\|-----\| \| % \| % \| % \| % \| % \| % \| % \| % \| % \| Men* Lotteries and related products National Lottery draws 24 46 54 54 52 48 36 Scratch cards 27 34 29 18 12 9 7 Other lotteries 6 13 15 14 17 19 19 Machines/games Football pools 10 9 4 1 2 2 3 Bingo (not online) 2 6 3 2 2 4 5 Slot machines 13 15 11 5 4 2 2 Machines in a bookmakers 11 12 4 3 1 1 1 Casino table games (not online) 11 10 4 3 1 2 2 Poker played in pubs or clubs 4 2 2 1 1 1 0 Online gambling on slots, casino or bingo games 9 8 4 3 2 1 1 Betting activities Online betting with a bookmaker 21 23 14 11 8 4 2 Betting exchange 6 2 3 2 1 1 0 Horse races (not online) 9 13 13 13 13 11 9 Dog races (not online) 5 4 4 2 2 2 1 Sports events (not online) 15 14 10 8 7 3 1 Other events (not online) 4 3 3 3 1 1 0 Spread betting 3 1 2 1 0 0 0 Private betting 16 10 5 3 3 2 1 Other gambling activity Any other gambling 4 2 3 2 2 1 1 Summaries Any gambling activity 52 66 69 64 64 61 51 Any gambling (excluding National Lottery draws only)(^a) 49 58 52 43 42 36 35 Any online gambling or betting(^b) 23 25 17 12 9 4 2 No gambling activity in last 12 months 48 34 31 36 36 39 49 Weighted base 1,032 1,230 1,165 1,287 1,032 861 598 Unweighted base(^c) 658 847 916 1,107 1,136 1,123 760 Base: Aged 16 and over, England, Scotland, and Wales (^a)This category excludes gamblers who only participated in the National Lottery draws and not in any other gambling activities. (^b)This category includes gamblers who participated in online gambling on slots, casino or bingo games, online betting with a bookmaker, or online betting using a betting exchange. (^c)Bases for individual activities vary; those shown are for participation in any gambling activity. ### Table 2:2 continued \| Participation in gambling activities in the past 12 months \| Age group \| 16-24 \| 25-34 \| 35-44 \| 45-54 \| 55-64 \| 65-74 \| 75+ \| \|----------------------------------------------------------\|-----------\|-------\|-------\|-------\|-------\|-------\|-------\|-----\| \| Women \| \| % \| % \| % \| % \| % \| % \| % \| \| Lotteries and related products \| \| \| \| \| \| \| \| \| \| National Lottery draws \| \| 21 \| 37 \| 41 \| 44 \| 45 \| 37 \| 29 \| \| Scratch cards \| \| 25 \| 32 \| 25 \| 20 \| 16 \| 9 \| 8 \| \| Other lotteries \| \| 7 \| 9 \| 14 \| 17 \| 20 \| 17 \| 18 \| \| Machines/games \| \| \| \| \| \| \| \| \| \| Football pools \| \| 2 \| 2 \| 1 \| 0 \| 0 \| 1 \| 1 \| \| Bingo (not online) \| \| 8 \| 7 \| 7 \| 5 \| 7 \| 7 \| 9 \| \| Slot machines \| \| 6 \| 6 \| 6 \| 4 \| 3 \| 2 \| 2 \| \| Machines in a bookmakers \| \| 1 \| 2 \| 1 \| 1 \| 0 \| 0 \| 0 \| \| Casino table games (not online) \| \| 2 \| 3 \| 2 \| 1 \| 1 \| 1 \| \| \| Poker played in pubs or clubs \| \| 0 \| 0 \| 0 \| 0 \| 0 \| 0 \| 0 \| \| Online gambling on slots, casino or bingo games \| \| 3 \| 3 \| 2 \| 2 \| 2 \| 0 \| 1 \| \| Betting activities \| \| \| \| \| \| \| \| \| \| Online betting with a bookmaker \| \| 3 \| 4 \| 5 \| 2 \| 1 \| 1 \| 0 \| \| Betting exchange \| \| 0 \| 0 \| 0 \| 0 \| 0 \| 0 \| 0 \| \| Horse races (not online) \| \| 5 \| 8 \| 9 \| 9 \| 7 \| 5 \| 3 \| \| Dog races (not online) \| \| 1 \| 1 \| 3 \| 1 \| 1 \| 0 \| 1 \| \| Sports events (not online) \| \| 2 \| 3 \| 2 \| 2 \| 0 \| 0 \| 1 \| \| Other events (not online) \| \| 1 \| 0 \| 0 \| 0 \| 0 \| 0 \| 0 \| \| Spread betting \| \| 0 \| 0 \| 0 \| 0 \| 0 \| 0 \| 0 \| \| Private betting \| \| 2 \| 3 \| 2 \| 2 \| 1 \| 1 \| 1 \| \| Other gambling activity \| \| \| \| \| \| \| \| \| \| Any other gambling \| \| 0 \| 0 \| 1 \| 0 \| 1 \| 0 \| 1 \| \| Summaries \| \| \| \| \| \| \| \| \| \| Any gambling activity \| \| 39 \| 54 \| 55 \| 58 \| 60 \| 51 \| 43 \| \| Any gambling (excluding National Lottery draws only) \| \| 35 \| 44 \| 42 \| 40 \| 40 \| 31 \| 30 \| \| Any online gambling or betting \| \| 5 \| 7 \| 6 \| 4 \| 3 \| 1 \| 1 \| \| No gambling activity in last 12 months \| \| 61 \| 46 \| 45 \| 42 \| 40 \| 49 \| 57 \| Weighted base \| 981 \| 1,235 \| 1,175 \| 1,299 \| 1,055 \| 927 \| 764 \| Unweighted base \| 748 \| 1,304 \| 1,245 \| 1,452 \| 1,318 \| 1,244 \| 907 \| Base: Aged 16 and over, England, Scotland, and Wales \This category excludes gamblers who only participated in the National Lottery draws and not in any other gambling activities. \This category includes gamblers who participated in online gambling on slots, casino or bingo games, online betting with a bookmaker, or online betting using a betting exchange. \Bases for individual activities vary; those shown are for participation in any gambling activity. ### Table 2:2 continued \| Participation in gambling activities in the past 12 months \| Age group \| \|----------------------------------------------------------\|-----------\| \| \| 16-24 \| 25-34 \| 35-44 \| 45-54 \| 55-64 \| 65-74 \| 75+ \| \| \| % \| % \| % \| % \| % \| % \| % \| \| All adults* \| \| \| \| \| \| \| \| \| Lotteries and related products \| \| \| \| \| \| \| \| \| National Lottery draws \| 23 \| 41 \| 47 \| 49 \| 48 \| 43 \| 32 \| \| Scratch cards \| 26 \| 33 \| 27 \| 19 \| 14 \| 9 \| 8 \| \| Other lotteries \| 6 \| 11 \| 14 \| 16 \| 19 \| 18 \| 18 \| \| Machines/games \| \| \| \| \| \| \| \| \| Football pools \| 6 \| 5 \| 2 \| 1 \| 1 \| 1 \| 2 \| \| Bingo (not online) \| 5 \| 6 \| 5 \| 4 \| 5 \| 6 \| 7 \| \| Slot machines \| 10 \| 11 \| 8 \| 5 \| 4 \| 2 \| 2 \| \| Machines in a bookmakers \| 6 \| 7 \| 3 \| 2 \| 1 \| 0 \| 1 \| \| Casino table games (not online) \| 6 \| 6 \| 3 \| 2 \| 1 \| 1 \| 1 \| \| Poker played in pubs or clubs \| 2 \| 1 \| 1 \| 0 \| 0 \| 0 \| 0 \| \| Online gambling on slots, casino or bingo games \| 6 \| 6 \| 3 \| 2 \| 2 \| 0 \| 1 \| \| Betting activities \| \| \| \| \| \| \| \| \| Online betting with a bookmaker \| 12 \| 13 \| 9 \| 6 \| 5 \| 2 \| 1 \| \| Betting exchange \| 3 \| 1 \| 1 \| 1 \| 0 \| 0 \| 0 \| \| Horse races (not online) \| 7 \| 10 \| 11 \| 11 \| 10 \| 8 \| 6 \| \| Dog races (not online) \| 3 \| 2 \| 4 \| 2 \| 1 \| 1 \| 1 \| \| Sports events (not online) \| 9 \| 9 \| 6 \| 5 \| 4 \| 2 \| 1 \| \| Other events (not online) \| 2 \| 2 \| 1 \| 1 \| 1 \| 1 \| 0 \| \| Spread betting \| 1 \| 1 \| 1 \| 1 \| 0 \| 0 \| 0 \| \| Private betting \| 9 \| 7 \| 3 \| 3 \| 2 \| 2 \| 1 \| \| Other gambling activity \| \| \| \| \| \| \| \| \| Any other gambling \| 2 \| 1 \| 2 \| 1 \| 1 \| 1 \| 1 \| \| Summaries \| \| \| \| \| \| \| \| \| Any gambling activity \| 46 \| 60 \| 62 \| 61 \| 62 \| 56 \| 47 \| \| Any gambling (excluding National Lottery draws only) \| 42 \| 51 \| 47 \| 42 \| 41 \| 34 \| 32 \| \| Any online gambling or betting \| 14 \| 16 \| 12 \| 8 \| 6 \| 3 \| 2 \| \| No gambling activity in last 12 months \| 54 \| 40 \| 38 \| 39 \| 38 \| 44 \| 53 \| \| Weighted base \| 2,013 \| 2,465 \| 2,340 \| 2,586 \| 2,086 \| 1,787 \| 1,363 \| \| Unweighted base \| 1,406 \| 2,151 \| 2,161 \| 2,559 \| 2,454 \| 2,367 \| 1,667 \| Base: Aged 16 and over, England, Scotland, and Wales \This category excludes gamblers who only participated in the National Lottery draws and not in any other gambling activities. \This category includes gamblers who participated in online gambling on slots, casino or bingo games, online betting with a bookmaker, or online betting using a betting exchange. \Bases for individual activities vary; those shown are for participation in any gambling activity. 2.2.3 Participation in gambling activities in the past 12 months, by ethnic group Overall participation by ethnic group Data on ethnic background was not available for participants in Scotland. Therefore, Table 2.3 shows participation in gambling in the past 12 months by ethnic group among participants in England and Wales only. Gambling participation was highest among White adults; six in ten (59%) White adults had gambled in the past 12 months, compared with 46% of Black adults, 45% of adults in other minority ethnic groups and 32% of Asian adults. A similar pattern was evident among those who gambled on activities other than the National Lottery draws only. For online gambling the pattern was slightly different; similar proportions of adults in the White group and other minority ethnic groups had gambled online (both 10%), compared with 5% of Black adults and just 2% of Asian adults. Participation in individual activities by ethnic group The National Lottery draws were the most popular activity for all groups. White adults were most likely to have played in the past 12 months (43%), compared to just under a third of Black adults (32%), a fifth (21%) of Asian adults, and over a third (36%) of adults from ethnic backgrounds other than White, Black or Asian (and including those with mixed heritage). White adults were also more likely than those from other groups to have spent money on scratchcards, other lotteries, offline bingo, and on horse races. There was a slightly different pattern for online gambling where White adults had higher levels of participation than those from Asian and Black backgrounds, but levels of participation among those from other minority ethnic groups were similar to White participants. The same pattern was seen for betting online with a bookmaker, where participation rates were lower for Black and Asian adults than for White adults and those from other minority ethnic groups. No such differences between ethnic groups were apparent for other gambling activities such as football pools, slot machines, betting offline on sports events (other than horse or dog racing) or betting offline on other events, where differences between groups were not statistically significant. Despite lower overall gambling participation rates, adults from minority ethnic groups were similarly likely to gamble on slot machines, machines in a bookmakers or casino table games as White adults. Table 2:3 Participation in gambling activities in the past 12 months, by ethnic group \| Participation in gambling activities in the past 12 months \| Ethnic Group \| Other, including mixed \| \|----------------------------------------------------------\|--------------\|------------------------\| \| \| White % \| Asian % \| Black % \| % \| \| Lotteries and related products* \| \| \| \| \| \| National Lottery draws \| 43 \| 21 \| 32 \| 36 \| \| Scratchcards \| 21 \| 11 \| 17 \| 17 \| \| Other lotteries \| 15 \| 7 \| 11 \| 7 \| \| Machines/games \| \| \| \| \| \| Football pools \| 3 \| 1 \| 4 \| 4 \| \| Bingo (not online) \| 5 \| 2 \| 3 \| 1 \| \| Slot machines \| 6 \| 5 \| 5 \| 3 \| \| Machines in a bookmakers \| 3 \| 2 \| 5 \| 3 \| \| Casino table games (not online) \| 3 \| 2 \| 8 \| 4 \| \| Poker played in pubs or clubs \| 1 \| 1 \| 0 \| 1 \| \| Online gambling on slots, casino or bingo games \| 3 \| 1 \| 2 \| 2 \| \| Betting activities \| \| \| \| \| \| Online betting with a bookmaker \| 8 \| 2 \| 3 \| 9 \| \| Betting exchange \| 1 \| 0 \| 0 \| 2 \| \| Horse races (not online) \| 10 \| 1 \| 4 \| 4 \| \| Dog races (not online) \| 2 \| 0 \| 3 \| 1 \| \| Sports events (not online) \| 5 \| 2 \| 3 \| 7 \| \| Other events (not online) \| 1 \| 1 \| 1 \| 2 \| \| Spread betting \| 1 \| 0 \| 1 \| 0 \| \| Private betting \| 4 \| 2 \| 3 \| 7 \| \| Other gambling activity \| \| \| \| \| \| Any other gambling \| 1 \| 0 \| 2 \| 1 \| \| Summary \| \| \| \| \| \| Any gambling activity \| 59 \| 32 \| 46 \| 45 \| \| Any gambling (excluding National Lottery draws only)³ \| 44 \| 22 \| 30 \| 32 \| \| Any online gambling or betting² \| 10 \| 2 \| 5 \| 10 \| \| No gambling activity in last 12 months \| 41 \| 68 \| 54 \| 55 \| \| Weighted base \| 11,647 \| 944 \| 418 \| 355 \| \| Unweighted base² \| 9,999 \| 473 \| 192 \| 196 \| Base: Aged 16 and over, England and Wales ³This category excludes gamblers who only participated in the National Lottery draws and not in any other gambling activities. ²This category includes gamblers who participated in online gambling on slots, casino or bingo games, online betting with a bookmaker, or online betting using a betting exchange. ²Bases for individual activities vary; those shown are for participation in any gambling activity. 2.2.4 Participation in gambling activities in the past 12 months, by economic activity Overall participation by economic activity Table 2:4 shows past year gambling by the economic activity of the participants in England and Scotland. (These data were not available for participants in Wales.) Economic activity was split into five categories: those in paid work (including self-employment and in government training); those in full-time education; retired; unemployed; and inactive in some other way (for example, the long-term sick, carers and those looking after their home or family). Note that the age profiles of these groups differ – for example, adults in full-time education and those who have retired are concentrated in specific age groups – and some of the variation between groups may be influenced by this. It should also be noted that the sample only included adults living in private households meaning that people living in institutions, like students living in halls of residence, were excluded from the study. Adults in employment or training were most likely to have gambled in the past 12 months, with almost two thirds (63%) having spent money on any gambling activity. Over half of retirees (53%) and those who were unemployed (54%) had gambled in the past year, closely followed by adults who were otherwise economically inactive (49%). Those in full time education had the lowest levels of participation with around a third (32%) having gambled in the past 12 months. Excluding participation in National Lottery draws only, there was a different pattern of participation; in particular, unemployed adults had similar rates of gambling to those in employment or training (45% and 48% respectively). Those in employment were again the most likely group to gamble online, with 13% having done so in the past year. However, around one in ten (9%) full time students and those who were unemployed had gambled online in the past 12 months. Retirees were the least likely group to have gambled online, with 2% having done so. Participation in individual activities by economic activity The pattern of participation in individual activities also varied by economic activity. National Lottery draws continued to be the most popular gambling activity for nearly all economic activity groups aside from those in full time education who were more likely to have purchased scratchcards (15%, compared with 11% who participated in National Lottery draws). Those in employment or classed as unemployed were more likely than other groups to have participated in most gambling activities, for example, scratchcards, slot machines, horse racing, and other sports events. Notably, unemployed adults were more likely than any other group to play slot machines (11%, compared with 8% or less in other groups) or on casino table games (9%, compared with 4% or less in other groups). Generally, those in full time education had low rates of participation in most gambling activities. However, they had the highest participation rate for private betting at 8%. Other lotteries were most popular among retired people, with 19% participating in the past 12 months. Table 2:4 Participation in gambling activities in the past 12 months, by economic activity \| Participation in gambling activities in the past 12 months \| In paid work % \| In full-time education % \| Retired % \| Unemployed % \| Other inactive % \| \|----------------------------------------------------------\|----------------\|--------------------------\|-----------\|--------------\|-----------------\| \| Lotteries and related products \| \| \| \| \| \| \| National Lottery draws \| 48 \| 11 \| 38 \| 30 \| 33 \| \| Scratchcards \| 24 \| 15 \| 8 \| 31 \| 23 \| \| Other lotteries \| 15 \| 4 \| 19 \| 12 \| 10 \| \| Machines/games \| \| \| \| \| \| \| Football pools \| 3 \| 5 \| 2 \| 6 \| 1 \| \| Bingo (not online) \| 5 \| 4 \| 6 \| 5 \| 5 \| \| Slot machines \| 8 \| 7 \| 2 \| 11 \| 5 \| \| Machines in a bookmakers \| 4 \| 4 \| 0 \| 6 \| 2 \| \| Casino table games (not online) \| 4 \| 4 \| 1 \| 9 \| 1 \| \| Poker played in pubs or clubs \| 1 \| 1 \| 0 \| 2 \| 0 \| \| Online gambling on slots, casino or bingo games \| 4 \| 4 \| 1 \| 2 \| 3 \| \| Betting activities \| \| \| \| \| \| \| Online betting with a bookmaker \| 11 \| 7 \| 2 \| 8 \| 3 \| \| Betting exchange \| 1 \| 3 \| 0 \| 3 \| 1 \| \| Horse races (not online) \| 11 \| 2 \| 7 \| 9 \| 7 \| \| Dog races (not online) \| 3 \| 2 \| 1 \| 4 \| 1 \| \| Sports events (not online) \| 7 \| 5 \| 2 \| 6 \| 2 \| \| Other events (not online) \| 2 \| 1 \| 1 \| 1 \| 1 \| \| Spread betting \| 1 \| 0 \| 0 \| 1 \| 0 \| \| Private betting \| 5 \| 8 \| 1 \| 7 \| 2 \| \| Other gambling activity \| \| \| \| \| \| \| Any other gambling \| 1 \| 2 \| 1 \| 2 \| 1 \| \| Summaries \| \| \| \| \| \| \| Any gambling activity \| 63 \| 32 \| 53 \| 54 \| 49 \| \| Any gambling (excluding National Lottery draws only) \| 48 \| 28 \| 34 \| 45 \| 38 \| \| Any online gambling or betting \| 13 \| 9 \| 2 \| 9 \| 6 \| \| No gambling activity in past 12 months \| 37 \| 68 \| 47 \| 46 \| 51 \| Weighted base \| 6,071 \| 596 \| 2,305 \| 551 \| 1,161 \| Unweighted base \| 5,770 \| 445 \| 2,894 \| 392 \| 1,233 \| Base: Aged 16 and over, England and Scotland \This category excludes gamblers who only participated in the National Lottery draws and not in any other gambling activities. \This category includes gamblers who participated in online gambling on slots, casino or bingo games, online betting with a bookmaker, or online betting using a betting exchange. \Bases for individual activities vary; those shown are for participation in any gambling activity. 2.2.5 Participation in gambling activities in the past 12 months, by country and region Overall participation by country and region Tables 2:5 and 2:6 show past year gambling participation by country and English region. Note that estimates from Wales are not strictly comparable with those from England and Scotland due to differences in survey methodology (see Section 1.2 of this report). Adults in Scotland were most likely to have taken part in some form of gambling, with 66% of people in Scotland spending money on gambling activities in the past 12 months compared with 56% of adults in England and 55% of adults in Wales. Gambling on activities other than the National Lottery draws only remained more popular in Scotland than in England and Wales (49%, 42% and 40% respectively). The pattern held when looking at online gambling, with adults from Scotland being the most likely group to gamble online (12%) compared to 9% in England and 6% in Wales. The English region with the highest gambling participation rates was the North East (62%), followed by Yorkshire and Humber and East of England (61% and 60% respectively). London had the lowest participation levels, with 51% of Londoners taking part in gambling. Within the English regions, participation in activities other than the National Lottery draws was highest in the North East (48%) and lowest in London (36%). Participation in online gambling also differed by region, from 12% in the North East to 6% in the South West. Participation in individual activities by country and region Patterns of gambling participation by country and English region varied in different ways for individual activities, although for most activities prevalence was highest in Scotland and lower in England and Wales. Participation in the National Lottery draws was highest among adults in Scotland, with over half (51%) having played in the past year. Participants from Wales were most likely to have played scratchcards in the past year, with around a quarter (24%) having done so, closely followed by adults from Scotland (23%) and a fifth of adults from England (20%). Other lotteries were more popular in Scotland (18%), than in Wales (15%) and England (14%). Scottish adults were more likely than those elsewhere to have bet on horse racing, bet online with a bookmaker, played slot machines, bingo and gambled on sports events not online. The only exception was private betting, which was more common among adults from England (4%) than adults from Scotland and Wales (both 3%). Across the English regions, participation rates varied for some gambling activities. The National Lottery draws were most popular in the North East and East of England (45%) and least popular in the West Midlands and London (38% and 35% respectively). Online betting with a bookmaker was highest in the North East (10%) and lowest in the South West (4%). Although London had lower participation rates for most gambling activities, gambling online was not lower in London compared to other regions. For many activities, such as gambling using football pools, machines in bookmakers and betting on horse racing regional differences were not apparent. \| Participation in gambling activities in the past 12 months \| England % \| Scotland % \| Wales % \| \|----------------------------------------------------------\|-----------\|------------\|--------\| \| Lotteries and related products* \| \| \| \| \| National Lottery draws \| 40 \| 51 \| 41 \| \| Scratchcards \| 20 \| 23 \| 24 \| \| Other lotteries \| 14 \| 18 \| 15 \| \| Machines/games \| \| \| \| \| Football pools \| 3 \| 5 \| 2 \| \| Bingo (not online) \| 5 \| 7 \| 6 \| \| Slot machines \| 6 \| 8 \| 5 \| \| Machines in a bookmakers \| 3 \| 4 \| 2 \| \| Casino table games (not online) \| 3 \| 3 \| 2 \| \| Poker played in pubs or clubs \| 1 \| 1 \| 1 \| \| Online gambling on slots, casino or bingo games \| 3 \| 4 \| 2 \| \| Betting activities \| \| \| \| \| Online betting with a bookmaker \| 8 \| 10 \| 4 \| \| Betting exchange \| 1 \| 1 \| 1 \| \| Horse races (not online) \| 9 \| 11 \| 8 \| \| Dog races (not online) \| 2 \| 2 \| 1 \| \| Sports events (not online) \| 5 \| 7 \| 4 \| \| Other events (not online) \| 1 \| 2 \| 1 \| \| Spread betting \| 1 \| 1 \| 0 \| \| Private betting \| 4 \| 3 \| 3 \| \| Other gambling activity \| \| \| \| \| Any other gambling \| 1 \| 1 \| 1 \| \| Summaries \| \| \| \| \| Any gambling activity \| 56 \| 66 \| 55 \| \| Any gambling (excluding National Lottery draws only) \| 42 \| 49 \| 40 \| \| Any online gambling or betting \| 9 \| 12 \| 6 \| \| No gambling activity in past 12 months \| 44 \| 34 \| 45 \| \| Weighted base \| 12,640 \| 1,261 \| 740 \| \| Unweighted base \| 6,856 \| 3,886 \| 4,023 \| Base: Aged 16 and over, England, Scotland, and Wales \This category excludes gamblers who only participated in the National Lottery draws and not in any other gambling activities. \This category includes gamblers who participated in online gambling on slots, casino or bingo games, online betting with a bookmaker, or online betting using a betting exchange. \Bases for individual activities vary; those shown are for participation in any gambling activity. Table 2:6 Participation in gambling activities in the past 12 months, by English region \| Participation in gambling activities in the past 12 months \| North East \| North West \| Yorkshire and the Humber \| East Midlands \| West Midlands \| East of England \| London \| South East \| South West \| \|----------------------------------------------------------\|------------\|------------\|--------------------------\|--------------\|--------------\|----------------\|--------\|------------\|------------\| \| % \| % \| % \| % \| % \| % \| % \| % \| % \| % \| \| Lotteries and related products* \| \| \| \| \| \| \| \| \| \| \| National Lottery draws \| 45 \| 41 \| 42 \| 41 \| 38 \| 45 \| 35 \| 41 \| 41 \| \| Scratchcards \| 23 \| 20 \| 23 \| 21 \| 18 \| 23 \| 15 \| 20 \| 23 \| \| Other lotteries \| 14 \| 14 \| 17 \| 14 \| 14 \| 16 \| 8 \| 14 \| 16 \| \| Machines/games \| \| \| \| \| \| \| \| \| \| \| Football pools \| 3 \| 3 \| 2 \| 2 \| 2 \| 3 \| 3 \| 4 \| 1 \| \| Bingo (not online) \| 8 \| 6 \| 5 \| 5 \| 7 \| 4 \| 2 \| 5 \| 5 \| \| Slot machines \| 6 \| 6 \| 7 \| 5 \| 6 \| 9 \| 4 \| 7 \| 7 \| \| Machines in a bookmakers \| 3 \| 4 \| 4 \| 3 \| 3 \| 2 \| 2 \| 4 \| 2 \| \| Casino table games (not online) \| 3 \| 2 \| 5 \| 3 \| 3 \| 4 \| 4 \| 4 \| 2 \| \| Poker played in pubs or clubs \| 2 \| 1 \| 1 \| - \| 1 \| 1 \| 1 \| 1 \| 1 \| \| Online gambling on slots, casino or bingo games \| 4 \| 3 \| 4 \| 4 \| 4 \| 3 \| 2 \| 4 \| 2 \| \| Betting activities \| \| \| \| \| \| \| \| \| \| \| Online betting with a bookmaker \| 10 \| 9 \| 8 \| 7 \| 6 \| 7 \| 8 \| 9 \| 4 \| \| Betting exchange \| 1 \| 1 \| 2 \| 0 \| 0 \| 1 \| 2 \| 2 \| 1 \| \| Horse races (not online) \| 9 \| 10 \| 10 \| 9 \| 11 \| 8 \| 7 \| 10 \| 8 \| \| Dog races (not online) \| 2 \| 1 \| 2 \| 3 \| 3 \| 3 \| 3 \| 2 \| 0 \| \| Sports events (not online) \| 7 \| 7 \| 5 \| 5 \| 4 \| 5 \| 4 \| 6 \| 3 \| \| Other events (not online) \| 1 \| 2 \| 1 \| 1 \| 1 \| 1 \| 2 \| 1 \| 0 \| \| Spread betting \| 1 \| 0 \| 1 \| 0 \| 1 \| 1 \| 1 \| 1 \| - \| \| Private betting \| 5 \| 3 \| 4 \| 4 \| 4 \| 4 \| 6 \| 4 \| 4 \| \| Other gambling activity \| \| \| \| \| \| \| \| \| \| \| Any other gambling \| 2 \| 2 \| 1 \| 1 \| 1 \| 1 \| 1 \| 2 \| 1 \| \| Summaries \| \| \| \| \| \| \| \| \| \| \| Any gambling activity \| 62 \| 55 \| 61 \| 57 \| 54 \| 60 \| 51 \| 56 \| 57 \| \| Any gambling (excluding National Lottery draws only) \| 48 \| 41 \| 47 \| 42 \| 40 \| 43 \| 36 \| 42 \| 41 \| \| Any online gambling or betting \| 12 \| 11 \| 10 \| 8 \| 8 \| 8 \| 9 \| 11 \| 6 \| \| No gambling activity in past 12 months \| 38 \| 45 \| 39 \| 43 \| 46 \| 40 \| 49 \| 44 \| 43 \| \| Weighted base \| 624 \| 1,668 \| 1,237 \| 1,097 \| 1,324 \| 1,419 \| 1,886 \| 2,096 \| 1,290 \| \| Unweighted base \| 613 \| 969 \| 593 \| 620 \| 626 \| 815 \| 800 \| 1,076 \| 744 \| Base: Aged 16 and over, England. aThis category excludes gamblers who only participated in the National Lottery draws and not in any other gambling activities. bThis category includes gamblers who participated in online gambling on slots, casino or bingo games, online betting with a bookmaker, or online betting using a betting exchange. cBases for individual activities vary; those shown are for participation in any gambling activity. 2.2.6 Participation in gambling activities in the past 12 months, by mental health The 12-item General Health Questionnaire (GHQ-12) The GHQ-12 is a widely used and validated measure of mental health. It was originally intended for use in general practice settings as a screening instrument for general, non-psychotic psychiatric morbidity (probable mental ill health), and cannot be used to diagnose specific psychiatric problems. The GHQ-12 concentrates on the broader components of psychological ill health and consists of 12 items measuring characteristics such as general levels of happiness, depression, anxiety, sleep disturbance and self-confidence. Six questions are positively phrased – for example “Have you recently felt capable of making decisions about things?” Six questions are phrased negatively – for example “Have you recently felt you couldn’t overcome your difficulties?” Each of the 12 items is rated on a four-point response scale to indicate whether symptoms of mental ill health are ‘not at all present’, present ‘no more than usual’, present ‘rather more than usual’ or present ‘much more than usual’. There are alternative scoring approaches; here, each symptom was scored as either zero if ‘not at all present’ or present ‘no more than usual’, or one for symptoms that were present ‘rather more than usual’ or ‘much more than usual’. This produces scores on a range of 0 to 12. No formal threshold exists for identifying probable mental ill health, with optimal values likely to be specific to the population under study. However, in keeping with the categories reported in HSE and SHES, participants’ scores are grouped according to three categories: 0 (indicating no evidence of probable mental ill health), 1 to 3 (indicating less than optimal mental health), and 4 or more (indicating probable psychological disturbance or mental ill health). A valid GHQ-12 score was available for 10,873 participants from England and Scotland. The GHQ-12 did not form part of the Wales Omnibus and therefore no scores are available for Welsh participants. After applying weighting to account for population distribution and non-response, no evidence of mental ill health was found in 54% of English and Scottish adults aged 16 and over, 27% had less than optimal mental health and 18% demonstrated evidence of probable mental ill health. \| GHQ-12 score \| % \| \|--------------------------------------------------\|----\| \| Score 0: No evidence of mental ill health \| 54 \| \| Score 1-3: Less than optimal mental health \| 27 \| \| Score 4+: Probable mental ill health \| 18 \| \| Total \| 100 \| \| Unweighted Base \| 10,873 \| \| Weighted Base \| 10,949 \| Base: Aged 16 and over with a valid GHQ-12 score, England and Scotland Overall participation by mental health Table 2:8 shows the past year participation in gambling by mental health based on scores on the GHQ-12 in England and Scotland. Data were not available for Wales. The GHQ-12 questions refer to the past few weeks, and an individual’s feelings may have varied across the past 12 months. Overall, gambling in the past year was not associated with mental health. However, when excluding those who gambled on National Lottery draws only, adults with less than optimal mental health (a GHQ-12 score between 1 and 3) were more likely to have gambled in the past year (45%). In comparison, 42% of adults with no evidence of mental ill health (a GHQ-12 score of 0) and those with probable mental ill health (a GHQ-12 score of 4 or more) had gambled on something other than the National Lottery draws. Similarly, gambling online was more common among participants with less than optimal GHQ-12 scores (12% had done so), compared to those who had no evidence of mental ill health (9%) and those with probable mental ill health (8%). Participation in individual activities by mental ill health For the majority of individual gambling activities, there was no variation in participation according to mental ill health status. However, there were some exceptions to this. Participation in the National Lottery draws declined with poor mental health. It was highest among those with no indication of mental ill health (a GHQ12 score of 0) (43%), followed by those with less than optimal mental ill health (a GHQ12 score of 1 to 3) (40%) and those with probable mental ill health (a GHQ12 score of 4+) (39%). Conversely, scratchcards were less popular among those who had no evidence of mental ill health (a GHQ-12 score of 0) (19%), compared with adults with less than optimal ill health (a GHQ-12 score of 1 to 3) (22%) and those with probable mental ill health (a GHQ-12 score of 4+) (23%). Those who scored less than optimal mental ill health (a GHQ-12 score of 1-3) were most likely to have placed bets with an online bookmaker (10%). ### Table 2:8 Participation in gambling activities in the past 12 months, by mental ill health \| Participation in gambling activities in the past 12 months \| GHQ-12 score<sup>a</sup> \| Probable mental ill health<sup>d</sup> \| \|----------------------------------------------------------\|--------------------------\|--------------------------------------\| \| \| No evidence of mental ill health \| Less than optimal mental health \| \| \| % \| % \| \| Lotteries and related products \| \| \| \| National Lottery draws \| 43 \| 40 \| 39 \| \| Scratchcards \| 19 \| 22 \| 23 \| \| Other lotteries \| 15 \| 15 \| 13 \| \| Machines/games \| \| \| \| Football pools \| 3 \| 2 \| 3 \| \| Bingo (not online) \| 5 \| 6 \| 5 \| \| Slot machines \| 6 \| 6 \| 8 \| \| Machines in a bookmakers \| 3 \| 4 \| 4 \| \| Casino table games (not online) \| 3 \| 4 \| 3 \| \| Poker played in pubs or clubs \| 1 \| 1 \| 1 \| \| Online gambling on slots, casino or bingo games \| 3 \| 4 \| 4 \| \| Betting activities \| \| \| \| Online betting with a bookmaker \| 7 \| 10 \| 6 \| \| Betting exchange \| 1 \| 2 \| 1 \| \| Horse races (not online) \| 9 \| 10 \| 10 \| \| Dog races (not online) \| 2 \| 2 \| 2 \| \| Sports events (not online) \| 5 \| 6 \| 4 \| \| Other events (not online) \| 1 \| 2 \| 1 \| \| Spread betting \| 1 \| 1 \| 1 \| \| Private betting \| 4 \| 5 \| 4 \| \| Other gambling activity \| \| \| \| Any other gambling \| 1 \| 1 \| 2 \| \| Summaries \| \| \| \| Any gambling activity \| 57 \| 58 \| 55 \| \| Any gambling (excluding National Lottery draws only)<sup>b</sup> \| 42 \| 45 \| 42 \| \| Any online gambling or betting<sup>c</sup> \| 9 \| 12 \| 8 \| \| No gambling activity in past 12 months \| 43 \| 42 \| 45 \| \| Weighted base \| 5,658 \| 2,874 \| 1,903 \| \| Unweighted base<sup>d</sup> \| 5,984 \| 2,722 \| 1,808 \| Base: Aged 16 and over, England and Scotland <sup>a</sup>A GHQ-12 score of 0 is indicative of no evidence of probable mental ill health, a score of 1-3 is indicative of less than optimal mental health, a score of 4+ is indicative of probable mental ill health. <sup>b</sup>This category excludes gamblers who only participated in the National Lottery draws and not in any other gambling activities. <sup>c</sup>This category includes gamblers who participated in online gambling on slots, casino or bingo games, online betting with a bookmaker, or online betting using a betting exchange. <sup>d</sup>Bases for individual activities vary; those shown are for participation in any gambling activity. 2.2.7 Participation in gambling activities in the past 12 months, by well-being The Warwick-Edinburgh Mental Well-being scale (WEMWBS) The Warwick-Edinburgh Mental Well-Being Scale (WEMWBS) is a widely used and validated measure of subjective and psychological functioning. WEMWBS has 14 statements which cover psychological functioning, cognitive-evaluative dimensions and affective-emotional aspects of well-being. The statements are all expressed positively – for example, 'I've been feeling optimistic about the future'. For each statement participants are asked to select the response option that best describes their experience over the previous two weeks from a 5-point Likert scale. Response options included 'None of the time', 'Rarely', 'Some of the time', 'Often', or 'All of the time'. The scale is scored by summing responses to each item. The 14 questions are aggregated into an index, ranging from 14 (those who answer ‘None of the time’ on every statement) to 70 (those who answer ‘All of the time’ to all statements) which determines the extent of the participant’s well-being. For the purposes of the analysis, WEMWBS scores were aggregated into two groups, those in the lowest decile (tenth percentile), representing the 10% of the sample whose well-being was lowest, and the remaining participants with higher scores. A valid WEMWBS score was available for 10,855 participants from England and Scotland. The WEMWBS did not form part of the Wales Omnibus and therefore no scores are available for Welsh participants. After applying weighting to account for population distribution and non-response, 9% of English and Scottish adults aged 16 and over scored in the lowest tenth of well-being scores on the scale and 91% had other well-being scores.5 \| Table 2:9 WEMWBS scores \| \|-------------------------\| \| WEMWBS score \| % \| \| Lowest well-being scores\| 9 \| \| Other well-being scores \| 91 \| \| Total \| 100 \| \| Unweighted Base \| 10,855 \| \| Weighted Base \| 10,704 \| Base: Aged 16 and over with a valid WEMWBS score, England and Scotland Overall participation by well-being score Table 2:10 shows gambling participation in the past 12 months by WEMWBS score using data from England and Scotland. Data was not available for Wales. The WEMWBS questions refer to well-being in the past two weeks, and an individual’s well-being may have varied across the past 12 months. In addition, well-being varies across an individual’s lifespan and some of the variation in behaviour between the two groups may be influenced by differences in age profile. Gambling participation was lower among participants with the lowest well-being scores (52%, compared with 58% of other participants). A similar pattern was seen when those who gambled on the National Lottery draws only were excluded, with the lower participation rates among those with the lowest well-being scores (38%, compared with 43% of other participants). There was no difference between the two groups’ participation rates in online gambling. Participation in individual activities by well-being score Participation in the National Lottery draws was less popular among those with low well-being scores (37%, compared with other well-being scores, 42%). In contrast, the popularity of scratchcards did not vary according to well-being scores. In general, there were few differences in participation in individual gambling activities according to well-being scores. However, those with lowest levels of well-being were more likely than other participants to have played machines in bookmakers and to have gambled online on slots, casino or bingo games (5%, compared to 3% for both activities). Those with higher levels of well-being were more likely than those with low well-being scores to have participated in private betting (4% and 3%, respectively). Table 2:10 Participation in gambling activities in the past 12 months, by WEMWBS (Warwick-Edinburgh Mental Well-being Score) \| Participation in gambling activities in the past 12 months \| WEMWBS score<sup>a</sup> \| Other well-being score<sup>a</sup> \| \|----------------------------------------------------------\|--------------------------\|----------------------------------\| \| \| Low well-being score % \| Other well-being score % \| \| Lotteries and related products \| \| \| \| National Lottery draws \| 37 \| 42 \| \| Scratchcards \| 21 \| 21 \| \| Other lotteries \| 12 \| 15 \| \| Machines/games \| \| \| \| Football pools \| 2 \| 3 \| \| Bingo (not online) \| 5 \| 5 \| \| Slot machines \| 6 \| 6 \| \| Machines in a bookmakers \| 5 \| 3 \| \| Casino table games (not online) \| 2 \| 3 \| \| Poker played in pubs or clubs \| 1 \| 1 \| \| Online gambling on slots, casino or bingo games \| 5 \| 3 \| \| Betting activities \| \| \| \| Online betting with a bookmaker \| 6 \| 8 \| \| Betting exchange \| 1 \| 1 \| \| Horse races (not online) \| 8 \| 10 \| \| Dog races (not online) \| 2 \| 2 \| \| Sports events (not online) \| 5 \| 5 \| \| Other events (not online) \| 1 \| 1 \| \| Spread betting \| 1 \| 1 \| \| Private betting \| 3 \| 4 \| \| Other gambling activity \| \| \| \| Any other gambling \| 2 \| 1 \| \| Summaries \| \| \| \| Any gambling activity \| 52 \| 58 \| \| Any gambling (excluding National Lottery draws only)<sup>b</sup> \| 38 \| 43 \| \| Any online gambling or betting<sup>c</sup> \| 9 \| 10 \| \| No gambling activity in past 12 months \| 48 \| 42 \| \| Weighted base \| 973 \| 9,488 \| \| Unweighted base \| 1,001 \| 9,524 \| Base: Aged 16 and over, England and Scotland <sup>a</sup>A ‘Low well-being score’ denotes the lowest 10% of scores on the Warwick-Edinburgh Mental Well-being Scale (WEMWBS). A ‘Other well-being score’ denotes all other scores on WEMWBS. <sup>b</sup>This category excludes gamblers who only participated in the National Lottery draws and not in any other gambling activities. <sup>c</sup>This category includes gamblers who participated in online gambling on slots, casino or bingo games, online betting with a bookmaker, or online betting using a betting exchange. <sup>d</sup>Bases for individual activities vary; those shown are for participation in any gambling activity. 2.2.8 Participation in gambling activities in the past 12 months, by weekly alcohol consumption Weekly alcohol consumption HSE and SHeS both measured participants’ average weekly alcohol consumption. Adults from England and Scotland aged 16 and over who had drunk alcohol in the past 12 months were asked about the frequency of drinking different types of drinks and the amounts they had drunk on a typical day. From this, the average weekly consumption of units of alcohol was derived. The weekly categories are approximate only and do not take into account varying patterns of consumption, for example on different days of the week or at different times of year. By definition they cover a ‘typical day’ and therefore do not reflect occasions when consumption might be higher than usual (for instance holidays, or celebrations such as parties, weddings and Christmas). Alcohol consumption is reported in terms of units of alcohol; one unit of alcohol is 10ml by volume of pure alcohol. In line with low risk drinking guidelines published by the UK Chief Medical Officers in 2016, alcohol consumption was split into three categories, based upon the number of units people drink in a week; non-drinkers who do not drink at all, those who drank at a level indicating a low risk of harm (up to and including 14 units per week) and those who drank at a level indicating an increased risk (over 14 units per week). Data on weekly alcohol consumption was available for 12,085 participants from England and Scotland. The Wales Omnibus did not include questions on alcohol consumption and therefore no classifications into different drinking profiles based on weekly alcohol consumption were available for Welsh participants. After applying weighting to account for population distribution and non-response, 17% of adults aged 16 and over in England and Scotland were non-drinkers, 59% were categorised as low risk drinkers (who drank up to 14 units per week) and 24% were categorised as increased risk drinkers (who drank more than 14 units per week). \| Weekly alcohol consumption \| % \| \|----------------------------\|---\| \| Non-drinker (0 units per week) \| 17 \| \| Low risk (up to 14 units per week) \| 59 \| \| Increased risk (over 14 units per week) \| 24 \| \| Total \| 100 \| Unweighted Base 12,085 Weighted Base 10,738 Base: Aged 16 and over, England and Scotland Overall participation by weekly alcohol consumption Table 2:12 shows the rates of participation in gambling in the past year by alcohol consumption, for Scotland and England only. Data on alcohol consumption were not available for Wales. Gambling participation varied with usual weekly alcohol consumption. Figure 2:2 shows that gambling was most common among those who drank at a level indicating an increased risk of harm (69%), compared with those who drank at a level with low risk of harm (59%), and non-drinkers, who were much less likely to have gambled (36%). A similar pattern was seen when those who gambled on the National Lottery only were excluded (53%, 43% and 25% respectively), and the same was true for online gambling or betting (16%, 9% and 3%). Participation in individual activities by weekly alcohol consumption Alcohol consumption was associated with nearly all individual gambling activities; non-drinkers were least likely to participate, followed by those who drank at a level with a low risk of harm, with those drinking at a level with increased risk most likely to participate in gambling activities. The exceptions to this were offline bingo and other gambling activities where there was no association with drinking. The pattern was particularly evident for betting offline on horse races (16% of those who drank more than 14 units per week, compared with 8% of low risk drinkers and 4% of non-drinkers), online betting with a bookmaker (15%, 7% and 2% respectively), and offline betting on sports events (10%, 5% and 1%). ### Table 2:12 Participation in gambling activities in the past 12 months, by weekly alcohol consumption \| Participation in gambling activities in the past 12 months \| Weekly alcohol consumption \| \| \| \| \|----------------------------------------------------------\|----------------------------\|---\|---\|---\| \| \| Non-drinker (0 units per week) \| Low risk (up to 14 units per week) \| Increased risk (over 14 units per week) \| \| \| % \| % \| % \| \| Lotteries and related products \| \| \| \| \| National Lottery draws \| 26 \| 42 \| 52 \| \| Scratchcards \| 13 \| 21 \| 24 \| \| Other lotteries \| 9 \| 15 \| 18 \| \| Machines/games \| \| \| \| \| Football pools \| 2 \| 2 \| 5 \| \| Bingo (not online) \| 4 \| 6 \| 5 \| \| Slot machines \| 3 \| 6 \| 9 \| \| Machines in a bookmakers \| 1 \| 3 \| 5 \| \| Casino table games (not online) \| 1 \| 3 \| 6 \| \| Poker played in pubs or clubs \| 1 \| 1 \| 2 \| \| Online gambling on slots, casino or bingo games \| 2 \| 3 \| 5 \| \| Betting activities \| \| \| \| \| Online betting with a bookmaker \| 2 \| 7 \| 15 \| \| Betting exchange \| 0 \| 1 \| 2 \| \| Horse races (not online) \| 4 \| 8 \| 16 \| \| Dog races (not online) \| 0 \| 2 \| 4 \| \| Sports events (not online) \| 1 \| 5 \| 10 \| \| Other events (not online) \| 0 \| 1 \| 3 \| \| Spread betting \| 0 \| 0 \| 1 \| \| Private betting \| 1 \| 4 \| 7 \| \| Other gambling activity \| \| \| \| \| Any other gambling \| 1 \| 1 \| 2 \| \| Summaries \| \| \| \| \| Any gambling activity \| 36 \| 59 \| 69 \| \| Any gambling (excluding National Lottery draws only)³ \| 25 \| 43 \| 53 \| \| Any online gambling or betting⁵ \| 3 \| 9 \| 16 \| \| No gambling activity in past 12 months \| 64 \| 41 \| 31 \| \| Weighted base \| 1,834 \| 6,124 \| 2,530 \| \| Unweighted base \| 1,792 \| 6,256 \| 2,543 \| Base: Aged 16 and over, England and Scotland ³This category excludes gamblers who only participated in the National Lottery draws and not in any other gambling activities. ⁵This category includes gamblers who participated in online gambling on slots, casino or bingo games, online betting with a bookmaker, or online betting using a betting exchange. ⁶Bases for individual activities vary; those shown are for participation in any gambling activity. Notes and references 1 The Scottish Government took the decision to remove data on ethnicity from the 2016 SHeS data due to disclosure risk. 2 The economic activity data collected as part of the Wales Omnibus were not directly comparable to the data on economic activity collected for HSE and SHeS. 3 The other economically inactive group includes people not otherwise classifiable, for example the long-term sick, carers and those looking after home or family. 4 Within England regions are defined as the former Government Office Regions. 5 WEMWBS scores were discrete values between 14 and 70. In the combined 2016 SHeS and HSE data, the lowest decile were individuals who scored lower than 39. The discrete nature of the data meant that 9% of the sample were in the bottom decile. 6 UK Chief Medical Officers. Low Risk Drinking Guidelines. Department of Health, London, 2016 https://www.gov.uk/government/publications/alcohol-consumption-advice-on-low-risk-drinking Frequency of gambling in Great Britain Among those who gambled in the past year - 41% At least once a week - 22% Less than weekly but at least once a month - 38% Less than once a month 13% of gamblers gambled more than once a week - 17% of men - 9% of women Gambling at least once a week by well-being score\* - 46% Low well-being score - 40% Other well-being score Gambling at least once a week by region - Scotland: 44% - North East: 53% - North West: 43% - Yorkshire and the Humber: 41% - East Midlands: 40% - East of England: 42% - London: 29% - Wales: 50% - West Midlands: 47% - South West: 37% - South East: 36% * According to WEMWBS 3 Frequency of gambling participation 3.1 Introduction This chapter looks at the frequency of gambling among people who do gamble, and whether these vary by a range of characteristics. The chapter covers overall frequency in any form of gambling, as well as individual gambling activities. Gambling frequency is compared by a range of socio-demographic characteristics including the age and sex of the participant, their ethnic group, economic activity, country and regions within England. Levels of gambling frequency are also compared by a range of health indicators such as mental health, well-being and weekly alcohol consumption. 3.2 Frequency of gambling participation in past year gamblers 3.2.1 Frequency of gambling participation in the past 12 months, by age and sex Table 3:1 shows the frequency of gambling participation among past year gamblers by age and sex of adults aged 16 and over in Great Britain. It includes all forms of gambling and is based on those who had gambled within the last 12 months. Overall, two in five gamblers did so at least once a week (41%), a further one in five gambled less than once a week but at least once a month (22%) and the remainder gambled less frequently (38%). Gambling at least once a week increased with age, both for men and women. Among 16 to 24 year olds who had gambled, 24% had done so at least once week. This increased steadily with age up to 59% among adults aged 75 or more (although this age group were relatively unlikely to have gambled at all). This contrasts with the pattern of participation across age groups, with the youngest and oldest groups having the lowest gambling participation rates (see section 2.2.2). Among those who do gamble, older gamblers are likely to gamble on a frequent basis whereas the younger group gamble less frequently. As shown in Table 3:2, gambling frequency also increased with age when excluding gamblers who had only participated in the National Lottery draws and no other gambling activities. Among 16 to 24 year olds 24% had gambled at least once a week compared to 59% of adults aged 75 and over. This suggests that gambling in older age groups is not restricted to playing the National Lottery draws. Moreover, the findings suggest that while fewer older adults gamble on activities excluding the National Lottery draws, those who do gamble are more committed gamblers. Men were more likely than women to have gambled in the past 12 months (see Section 2.2.2). Among those adults who had gambled, men were more likely than women to gamble at least weekly (45% men and 36% women), and men were roughly twice as likely as women to have gambled more than once a week (17% and 9%, respectively). Women were more likely than men to be infrequent gamblers; 43% of women gambled less often than monthly compared with 33% of men. Table 3:1 Frequency of gambling participation in the past 12 months, by age and sex \| Frequency of gambling participation \| 16-24 \| 25-34 \| 35-44 \| 45-54 \| 55-64 \| 65-74 \| 75+ \| Total \| \|-----------------------------------\|-------\|-------\|-------\|-------\|-------\|-------\|-----\|-------\| \| \| % \| % \| % \| % \| % \| % \| % \| % \| \| Men \| \| \| \| \| \| \| \| \| \| 2 or more times a week \| 11 \| 13 \| 12 \| 21 \| 21 \| 21 \| 21 \| 17 \| \| Once a week \| 21 \| 21 \| 26 \| 28 \| 31 \| 38 \| 41 \| 28 \| \| Less than once a week, more than once a month \| 14 \| 13 \| 12 \| 10 \| 9 \| 7 \| 6 \| 10 \| \| Once a month \| 18 \| 13 \| 13 \| 11 \| 10 \| 8 \| 8 \| 12 \| \| Every 2-3 months \| 17 \| 16 \| 14 \| 12 \| 10 \| 8 \| 9 \| 13 \| \| Once or twice a year \| 19 \| 25 \| 22 \| 18 \| 19 \| 19 \| 16 \| 20 \| \| Women \| \| \| \| \| \| \| \| \| \| 2 or more times a week \| 3 \| 6 \| 7 \| 9 \| 11 \| 13 \| 16 \| 9 \| \| Once a week \| 10 \| 14 \| 23 \| 28 \| 36 \| 41 \| 41 \| 27 \| \| Less than once a week, more than once a month \| 12 \| 12 \| 8 \| 12 \| 9 \| 6 \| 9 \| 10 \| \| Once a month \| 9 \| 15 \| 12 \| 12 \| 10 \| 11 \| 8 \| 11 \| \| Every 2-3 months \| 21 \| 19 \| 16 \| 14 \| 10 \| 9 \| 7 \| 14 \| \| Once or twice a year \| 46 \| 33 \| 34 \| 24 \| 23 \| 20 \| 19 \| 28 \| \| All adults \| \| \| \| \| \| \| \| \| \| 2 or more times a week \| 8 \| 10 \| 10 \| 15 \| 16 \| 17 \| 18 \| 13 \| \| Once a week \| 16 \| 18 \| 25 \| 28 \| 34 \| 39 \| 41 \| 27 \| \| Less than once a week, more than once a month \| 13 \| 13 \| 10 \| 11 \| 9 \| 6 \| 8 \| 10 \| \| Once a month \| 14 \| 14 \| 13 \| 12 \| 10 \| 10 \| 8 \| 12 \| \| Every 2-3 months \| 19 \| 18 \| 15 \| 13 \| 10 \| 8 \| 8 \| 13 \| \| Once or twice a year \| 30 \| 29 \| 27 \| 21 \| 21 \| 19 \| 18 \| 24 \| Weighted base \| \| \| \| \| \| \| \| \| \| \|----------\|-------\|-------\|-------\|-------\|-------\|-------\|-----\|-------\| \| Men \| 527 \| 794 \| 780 \| 792 \| 632 \| 501 \| 295 \| 4,321 \| \| Women\| 360 \| 657 \| 633 \| 728 \| 607 \| 447 \| 306 \| 3,737 \| \| All adults \| 887 \| 1,451 \| 1,413 \| 1,520 \| 1,239 \| 947 \| 600 \| 8,058 \| Unweighted base \| \| \| \| \| \| \| \| \| \| \|----------\|-------\|-------\|-------\|-------\|-------\|-------\|-----\|-------\| \| Men \| 341 \| 558 \| 614 \| 690 \| 687 \| 671 \| 370 \| 3,931 \| \| Women\| 313 \| 739 \| 700 \| 834 \| 758 \| 600 \| 358 \| 4,302 \| \| All adults \| 654 \| 1,297 \| 1,314 \| 1,524 \| 1,445 \| 1,271 \| 728 \| 8,233 \| Base: Past year gamblers aged 16 and over, England, Scotland, and Wales Table 3:2 Frequency of gambling participation (excl. National Lottery draws) in the past 12 months, by age and sex \| Frequency of gambling participation \| Age group \| Total \| \|-----------------------------------\|-----------\|-------\| \| \| 16-24 % \| 25-34 % \| 35-44 % \| 45-54 % \| 55-64 % \| 65-74 % \| 75+ % \| \| Men \| \| \| \| \| \| \| \| \| 2 or more times a week \| 10 \| 14 \| 14 \| 22 \| 23 \| 20 \| 23 \| 17 \| \| Once a week \| 21 \| 21 \| 23 \| 25 \| 27 \| 34 \| 35 \| 25 \| \| Less than once a week, more than once a month \| 14 \| 13 \| 13 \| 10 \| 9 \| 6 \| 4 \| 11 \| \| Once a month \| 19 \| 14 \| 13 \| 10 \| 12 \| 10 \| 11 \| 13 \| \| Every 2-3 months \| 16 \| 16 \| 14 \| 14 \| 8 \| 8 \| 9 \| 13 \| \| Once or twice a year \| 20 \| 23 \| 23 \| 18 \| 21 \| 22 \| 19 \| 21 \| \| Women \| \| \| \| \| \| \| \| \| \| 2 or more times a week \| 3 \| 5 \| 8 \| 12 \| 11 \| 13 \| 17 \| 9 \| \| Once a week \| 10 \| 13 \| 19 \| 25 \| 32 \| 39 \| 43 \| 24 \| \| Less than once a week, more than once a month \| 12 \| 12 \| 7 \| 11 \| 10 \| 6 \| 9 \| 10 \| \| Once a month \| 8 \| 14 \| 12 \| 13 \| 10 \| 13 \| 8 \| 12 \| \| Every 2-3 months \| 20 \| 21 \| 17 \| 13 \| 10 \| 7 \| 4 \| 15 \| \| Once or twice a year \| 46 \| 34 \| 37 \| 25 \| 27 \| 21 \| 20 \| 31 \| \| All adults \| \| \| \| \| \| \| \| \| \| 2 or more times a week \| 7 \| 10 \| 11 \| 17 \| 17 \| 17 \| 20 \| 13 \| \| Once a week \| 17 \| 18 \| 21 \| 25 \| 30 \| 36 \| 39 \| 24 \| \| Less than once a week, more than once a month \| 13 \| 12 \| 11 \| 11 \| 9 \| 6 \| 6 \| 10 \| \| Once a month \| 14 \| 14 \| 13 \| 11 \| 11 \| 11 \| 9 \| 12 \| \| Every 2-3 months \| 18 \| 18 \| 16 \| 14 \| 9 \| 8 \| 6 \| 14 \| \| Once or twice a year \| 30 \| 28 \| 29 \| 22 \| 24 \| 22 \| 20 \| 26 \| Weighted base \| \| Men \| Women \| All adults \| \|----------\|-----\|-------\|------------\| \| \| 501 \| 328 \| 829 \| \| \| 698 \| 543 \| 1,241 \| \| \| 596 \| 485 \| 1,081 \| \| \| 532 \| 514 \| 1,046 \| \| \| 417 \| 410 \| 826 \| \| \| 298 \| 271 \| 569 \| \| \| 201 \| 217 \| 418 \| \| \| 3,244 \| 2,767 \| 6,011 \| Unweighted base \| \| Men \| Women \| All adults \| \|----------\|-----\|-------\|------------\| \| \| 321 \| 291 \| 612 \| \| \| 492 \| 622 \| 1,114 \| \| \| 483 \| 550 \| 1,033 \| \| \| 477 \| 607 \| 1,084 \| \| \| 454 \| 492 \| 946 \| \| \| 400 \| 372 \| 772 \| \| \| 220 \| 243 \| 463 \| \| \| 2,847 \| 3,177 \| 6,024 \| Base: Past year gamblers aged 16 and over, England, Scotland, and Wales excluding those who participated in National Lottery draws only. 3.2.2 Frequency of gambling participation in the past 12 months, by ethnicity Table 3:3 shows the frequency of gambling participation in the past 12 months by ethnicity for England and Wales (ethnicity data was not available for Scotland). It includes all forms of gambling and is based on those who had gambled within the past 12 months. As described in section 2.2.3, gambling participation was highest among White adults. Among people who gamble, those from White backgrounds were also the most likely to gamble at least once a week (41%), compared to 37% of Black gamblers, 33% of gamblers from a mixed or other ethnic background and 28% of Asian gamblers. Gamblers from Asian backgrounds were more likely to gamble infrequently (i.e. less than once a month) (51%). This compares to 37% of White gamblers, 35% of gamblers from a mixed or other ethnic background and 29% of Black gamblers. \| Frequency of gambling participation \| Ethnic Group \| Other, including mixed \| \|------------------------------------\|--------------\|------------------------\| \| \| White % \| Asian % \| Black % \| % \| \| 2 or more times a week \| 13 \| 8 \| 22 \| 7 \| \| Once a week \| 28 \| 20 \| 15 \| 26 \| \| Less than once a week, more than once a month \| 10 \| 14 \| 15 \| 12 \| \| Once a month \| 12 \| 7 \| 19 \| 20 \| \| Every 2-3 months \| 13 \| 19 \| 10 \| 16 \| \| Once or twice a year \| 24 \| 32 \| 19 \| 18 \| \| Weighted base \| 6,679 \| 281 \| 182 \| 154 \| \| Unweighted base \| 5,634 \| 139 \| 72 \| 86 \| Base: Past year gamblers aged 16 and over, England and Wales 3.2.3 Frequency of gambling participation in the past 12 months, by economic activity Table 3:4 uses data from England and Scotland to look at the frequency of gambling participation in the past 12 month by economic activity. Comparable information was not available for participants in Wales. Following the patterns observed for age, those who were retired were more likely to gamble frequently and those in full time education were less likely to do so. Over half of retirees (55%) gambled at least once a week, followed by those classified as other inactive (39%) and the employed (38%). Among unemployed gamblers, 32% gambled at least once a week as did 18% of students who gambled. Section 2.2.4 showed that students were the group least likely to participate in gambling (32% had gambled in the past year), and additionally students were also unlikely to gamble frequently. Just 6% of student gamblers reported gambling more than once a week and a further 12% reported weekly gambling. \| Frequency of gambling participation \| In paid work \| In full-time education \| Retired \| Unemployed \| Other inactive \| \|------------------------------------\|-------------\|-----------------------\|---------\|------------\|---------------\| \| 2 or more times a week \| 12% \| 6% \| 16% \| 8% \| 15% \| \| Once a week \| 25% \| 12% \| 39% \| 24% \| 24% \| \| Less than once a week, more than once a month \| 10% \| 13% \| 7% \| 13% \| 11% \| \| Once a month \| 12% \| 9% \| 9% \| 16% \| 11% \| \| Every 2-3 months \| 14% \| 19% \| 9% \| 14% \| 14% \| \| Once or twice a year \| 25% \| 41% \| 20% \| 25% \| 24% \| \| Weighted base \| 3,711 \| 187 \| 1,145 \| 290 \| 553 \| \| Unweighted base \| 3,605 \| 173 \| 1,453 \| 211 \| 618 \| Base: Past year gamblers aged 16 and over, England and Scotland 3.2.4 Frequency of gambling participation in the past 12 months, by region and country Tables 3:5 and 3:6 show the frequency of gambling participation in the past 12 months by country and regions within England. Although gambling participation in the past 12 months was lowest in Wales (see Section 2.2.5), Welsh adults who did gamble were more likely to gamble at least once a week than their Scottish and English counterparts. Among those who had gambled in the past 12 months, 50% of Welsh adults had gambled at least once a week compared to 40% of English and 44% of Scottish gamblers. The frequency of gambling participation also varied regionally across England. Section 2.2.5 showed that gambling participation was highest in the North East and Table 3:6 shows that gamblers living in the North East were also the most likely to gamble frequently (53% of gamblers had gambled once a week or more). London had the lowest gambling participation rate (see Section 2.2.5) and those who did gamble were the least likely to do so frequently (29% had gambled once a week or more). \| Frequency of gambling participation \| Country \| England % \| Scotland % \| Wales % \| \|-----------------------------------\|---------\|-----------\|------------\|--------\| \| 2 or more times a week \| \| 13 \| 15 \| 20 \| \| Once a week \| \| 27 \| 29 \| 30 \| \| Less than once a week, more than once a month \| \| 10 \| 9 \| 12 \| \| Once a month \| \| 12 \| 10 \| 12 \| \| Every 2-3 months \| \| 14 \| 12 \| 10 \| \| Once or twice a year \| \| 25 \| 24 \| 16 \| \| Weighted base \| \| 6,899 \| 757 \| 402 \| \| Unweighted base \| \| 3,770 \| 2,294 \| 2,169 \| Base: Past year gamblers aged 16 and over, England, Scotland, and Wales Table 3:6 Frequency of gambling participation in the past 12 months, by English region \| Frequency of gambling participation \| North East \| North West \| Yorkshire and the Humber \| East Midlands \| West Midlands \| East of England \| London \| South East \| South West \| \|-----------------------------------\|------------\|------------\|--------------------------\|---------------\|---------------\|----------------\|--------\|------------\|------------\| \| 2 or more times a week \| 17% \| 12% \| 11% \| 11% \| 16% \| 14% \| 12% \| 12% \| 10% \| \| Once a week \| 37% \| 30% \| 31% \| 29% \| 31% \| 28% \| 17% \| 24% \| 27% \| \| Less than once a week, more than once a month \| 11% \| 12% \| 10% \| 10% \| 12% \| 11% \| 8% \| 9% \| 10% \| \| Once a month \| 9% \| 9% \| 12% \| 13% \| 9% \| 12% \| 16% \| 13% \| 11% \| \| Every 2-3 months \| 10% \| 12% \| 13% \| 16% \| 10% \| 11% \| 17% \| 15% \| 16% \| \| Once or twice a year \| 17% \| 25% \| 24% \| 21% \| 22% \| 24% \| 30% \| 27% \| 25% \| \| Weighted base \| 376 \| 872 \| 741 \| 614 \| 683 \| 827 \| 916 \| 1,154 \| 715 \| \| Unweighted base \| 377 \| 511 \| 347 \| 346 \| 330 \| 477 \| 379 \| 585 \| 418 \| Base: Past year gamblers aged 16 and over, England 3.2.5 Frequency of gambling participation in the past 12 months, by mental health Table 3:7 shows the frequency of gambling participation in the past 12 months, by mental ill health using data from England and Scotland. Comparable data for Wales was not available. Mental ill health is based on scores on the GHQ-12. See Section 2.2.6 for details of how scores are calculated and their definitions. There were no differences in gambling frequency according to GHQ-12 status. \| Frequency of gambling participation \| GHQ12 score<sup>a</sup> \| \|------------------------------------\|-------------------------\| \| \| No evidence of mental ill health \| Less than optimal mental health \| Probable mental ill health \| \| 2 or more times a week \| 13% \| 12% \| 13% \| \| Once a week \| 29% \| 25% \| 25% \| \| Less than once a week, more than once a month \| 10% \| 10% \| 8% \| \| Once a month \| 12% \| 13% \| 12% \| \| Every 2-3 months \| 13% \| 14% \| 17% \| \| Once or twice a year \| 23% \| 26% \| 25% \| \| Weighted base \| 3,138 \| 1,607 \| 1,018 \| \| Unweighted base \| 3,432 \| 1,541 \| 975 \| Base: Past year gamblers aged 16 and over, England and Scotland <sup>a</sup>A GHQ-12 score of 0 is indicative of no evidence of probable mental ill health, a score of 1-3 is indicative of less than optimal mental health, a score of 4+ is indicative of probable mental ill health. 3.2.6 Frequency of gambling participation in the past 12 months, by well-being Table 3:8 shows the frequency of gambling participation by WEMWBS scores of individuals who had gambled in the past 12 months from England and Scotland. The Warwick-Edinburgh Mental Well-Being Scale (WEMWBS) is a widely used and validated measure of subjective and psychological functioning. See Section 2.2.7 above for details of how scores are calculated and their definitions. For the purposes of the analysis, WEMWBS scores were aggregated into two groups, the 10% with the lowest scores and other participants with higher levels of well-being. Those with the lowest well-being scores had lower participation rates, but among those who did gamble, those with the lowest well-being scores were more likely to have gambled once a week or more (46%) than those with higher well-being scores (40%). The difference between the two scores is driven by a higher number of adults with low well-being scores gambling two or more times a week (17% compared to 12%) whereas the proportion gambling once per week was similar (28% and 27%). Among those who had gambled in the past 12 months, those with the lowest well-being scores were less likely to have gambled only once or twice in the year (22%), compared with those with higher scores (25%). Table 3:8 Frequency of gambling participation in the past 12 months, by WEMWBS (Warwick-Edinburgh Mental Well-being Score) \| Frequency of gambling participation \| WEMWBS score<sup>a</sup> \| \|------------------------------------\|--------------------------\| \| \| Low well-being score % \| Other well-being score % \| \| 2 or more times a week \| 17 \| 12 \| \| Once a week \| 28 \| 27 \| \| Less than once a week, more than once a month \| 8 \| 10 \| \| Once a month \| 12 \| 12 \| \| Every 2-3 months \| 12 \| 14 \| \| Once or twice a year \| 22 \| 25 \| \| Weighted base \| 491 \| 5,293 \| \| Unweighted base \| 518 \| 5,445 \| Base: Past year gamblers aged 16 and over, England and Scotland <sup>a</sup>A 'Low well-being score' denotes the lowest 10% of scores on the Warwick-Edinburgh Mental Well-being Scale (WEMWBS). A 'Other well-being score' denotes all other scores on WEMWBS. 3.2.7 Frequency of gambling participation in the past 12 months, by alcohol consumption Table 3:9 shows the frequency of gambling participation in the past 12 months, by alcohol consumption of participants from England and Scotland. Alcohol consumption is presented in three categories, based upon the amount people usually drink in a week; non-drinkers, those who drink at a level indicating a low risk of harm (up to and including 14 units per week) and those who drink at a level indicating increased risk of harm (over 14 units per week). Non-drinkers were least likely to have gambled in the past 12 months, but were more likely to gamble on a frequent basis, with just under half (46%) gambling at least once a week. Those drinking more than 14 units per week were the most likely group to gamble and did so at a similar frequency to non-drinkers (45% at least once a week). Participation rates for those who drank less than 14 units per week were similar to those who drank more than 14 units per week, but among those who gambled they were least likely to gamble at least once a week (37%). Just two out of five low risk drinkers gambled less than once a month (41%), compared to 35% of those drinking at a level indicating increased risk and 31% of non-drinkers. Table 3:9 Frequency of gambling participation in the past 12 months, by weekly alcohol consumption \| Frequency of gambling participation \| Weekly alcohol consumption \| \| \| \| \|------------------------------------\|----------------------------\|-------\|-------\|-------\| \| \| Non-drinker (0 units per week) \| % \| % \| % \| \| 2 or more times a week \| Low risk (up to 14 units per week) \| \| \| \| \| Once a week \| Increased risk (over 14 units per week) \| \| \| \| \| Less than once a week, more than once a month \| % \| % \| % \| \| Once a month \| 10 \| 13 \| 13 \| 10 \| \| Every 2-3 months \| 9 \| 14 \| 14 \| 10 \| \| Once or twice a year \| 22 \| 26 \| 26 \| 21 \| \| Weighted base \| 634 \| 3,470 \| 1,702 \| \| Unweighted base \| 709 \| 3,600 \| 1,685 \| Base: Past year gamblers aged 16 and over, England and Scotland Low risk and moderate risk gamblers in Great Britain According to the PGSI problem gambling screen - All adults: 2.4% classified as low risk gamblers, 1.1% classified as moderate risk gamblers - Past year gamblers: 4.4% classified as low risk gamblers, 2.0% classified as moderate risk gamblers Low risk and moderate risk gambling by sex (all adults) - Low risk - Men: 3.9% - Women: 1.1% - Moderate risk - Men: 1.9% - Women: 0.4% For all adults, low risk and moderate risk gambling were more common among: - Those participating in 7 or more gambling activities - Low risk: 26.3% - Moderate risk: 19.9% - Those who had gambled 2 or more times a week - Low risk: 9.4% - Moderate risk: 8.4% 4 Prevalence and profile of low risk and moderate risk gamblers 4.1 Introduction This chapter uses the Problem Gambling Severity Index (PGSI)(^1) to describe the proportion of adults who can be classified as low risk or moderate risk gamblers. These are individuals who show some signs of problematic gambling but remain below the threshold for ‘problem’ gambling. Even so, they may experience a range of negative outcomes. Particularly, the moderate risk group is at risk of developing problems in the future. Low risk and moderate risk gamblers are likely to make a greater contribution to overall levels of gambling-related harm across the whole population than problem gamblers because of the greater absolute number of people in these two risk groups. The PGSI was developed, tested and validated within a general population survey of over 3,000 Canadian residents.(^1) The instrument itself has been subject to critical evaluation and was revised in 2003.(^2) It consists of nine items ranging from ‘chasing losses’ to ‘gambling causing health problems’ to ‘feeling guilty about gambling’. Each item is assessed on a four-point scale: never, sometimes, most of the time, almost always. Responses to each item are given the following scores: never = 0; sometimes = 1; most of the time = 2; almost always = 3. When scores to each item are summed, a total score ranging from 0 to 27 is possible. The following thresholds are recommended by the PGSI developers and have been applied in this and previous reports.(^3) Participants who did not gamble in the past year are given a score of 0: \| PGSI Score \| Category \| \|------------\|------------------------\| \| 0 \| Non-problem gambler \| \| 1-2 \| Low risk gambler \| \| 3-7 \| Moderate risk gambler \| \| 8 or over \| Problem gambler \| In Chapter 5, which discusses problem gamblers, problem gamblers are also identified using the DSM-IV. The DSM-IV does not have recognised thresholds for low risk and moderate risk gambling and it is not used in this chapter. The focus of this chapter is to explore the prevalence and characteristics of low risk and moderate risk gamblers (as defined by the PGSI) living in Great Britain. Because of the generally low prevalence of low risk and moderate risk gambling, estimates in this chapter are shown to 1 decimal place. 4.2 Prevalence of low risk and moderate risk gambling 4.2.1 Low risk and moderate risk gambling prevalence by age and sex This section discusses the prevalence of low risk and moderate risk gambling among adults aged 16 and over living in Great Britain. Overall 2.4% of adults were categorised as low risk gamblers (a PGSI score of 1 or 2) and 1.1% were categorised as moderate risk gamblers (a PGSI score of 3 to 7). Rates of both low risk and moderate risk gambling were significantly higher among men (3.9% were classified as low risk and 1.9% were classified as moderate risk gamblers) than women (1.1% were classified as low risk and 0.4% were classified as moderate risk gamblers). Rates of low risk and moderate risk gambling were significantly higher in the younger age groups, despite their lower rates of gambling participation and gambling frequency outlined in the previous two chapters. Rates of low risk gambling were highest among those aged 16 to 24 (5.8%) and lowest among those aged 75 and over (0.4%). Rates of moderate risk gambling were highest among 25 to 34 year olds (2.1%) and 35 to 44 year olds (2.0%). The lowest prevalence of moderate risk gambling was among those aged 65 and over (0.2%). The proportions of men and women of different ages categorised as low risk gamblers (a PGSI score of 1 or 2) are shown in Table 4:1 and Figure 4:1. While there was a general decrease in the prevalence of low risk gambling among women in older age groups, this decrease was less marked than for men. Figure 4:2 shows the proportions of men and women of different ages who have been categorised as moderate risk gamblers (a PGSI score of 3 to 7). For men, the highest proportions of moderate risk gamblers were found among those aged 25 to 34 (3.6%) and 35 to 44 (3.1%) after which prevalence gradually decreased. For women, the highest proportion of moderate risk gamblers was found among those aged 35 to 44 (0.9%) and diminished with age. ### Table 4:1 PGSI Status(^a), by age and sex(^b) \| PGSI Status \| Age group \| Total \| \|----------------------\|-----------\|-------\| \| \| 16-24 \| 25-34 \| 35-44 \| 45-54 \| 55-64 \| 65-74 \| 75+ \| \| % \| % \| % \| % \| % \| % \| % \| % \| \| Men \| \| \| \| \| \| \| \| \| Non problem \| 86.8 \| 87.4 \| 94.2 \| 95.4 \| 96.0 \| 98.0 \| 99.1 \| 93.3 \| \| Low risk gambler \| 9.9 \| 6.9 \| 2.2 \| 2.5 \| 1.9 \| 1.5 \| 0.6 \| 3.9 \| \| Moderate risk gambler\| 2.4 \| 3.6 \| 3.1 \| 1.1 \| 1.2 \| 0.3 \| 0.3 \| 1.9 \| \| Problem gambler \| 0.9 \| 2.1 \| 0.5 \| 1.0 \| 0.9 \| 0.2 \| - \| 0.9 \| \| Women \| \| \| \| \| \| \| \| \| Non problem \| 98.0 \| 97.9 \| 98.0 \| 98.4 \| 98.7 \| 99.2 \| 99.6 \| 98.5 \| \| Low risk gambler \| 1.4 \| 1.6 \| 1.0 \| 1.1 \| 0.7 \| 0.2 \| 0.2 \| 1.1 \| \| Moderate risk gambler\| 0.5 \| 0.5 \| 0.9 \| 0.3 \| 0.1 \| 0.2 \| 0.2 \| 0.4 \| \| Problem gambler \| 0.2 \| 0.0 \| 0.0 \| 0.1 \| 0.1 \| - \| - \| 0.1 \| \| All adults \| \| \| \| \| \| \| \| \| Non problem \| 92.2 \| 92.7 \| 96.1 \| 96.9 \| 97.4 \| 98.6 \| 99.4 \| 95.9 \| \| Low risk gambler \| 5.8 \| 4.2 \| 1.6 \| 1.8 \| 1.5 \| 1.1 \| 0.4 \| 2.4 \| \| Moderate risk gambler\| 1.5 \| 2.1 \| 2.0 \| 0.7 \| 0.7 \| 0.2 \| 0.2 \| 1.1 \| \| Problem gambler \| 0.6 \| 1.0 \| 0.3 \| 0.6 \| 0.5 \| 0.1 \| - \| 0.5 \| Weighted base \| \| Men \| Women \| All adults \| \|----------\|-----------\|----------\|------------\| \| \| 1,007 \| 950 \| 1,957 \| \| \| 1,203 \| 1,212 \| 2,415 \| \| \| 1,126 \| 1,138 \| 2,264 \| \| \| 1,236 \| 1,274 \| 2,510 \| \| \| 996 \| 1,037 \| 2,034 \| \| \| 845 \| 908 \| 1,753 \| \| \| 584 \| 766 \| 1,350 \| \| \| 6,996 \| 7,287 \| 14,283 \| Unweighted base \| \| Men \| Women \| All adults \| \|----------\|-----------\|----------\|------------\| \| \| 651 \| 732 \| 1,383 \| \| \| 836 \| 1,280 \| 2,116 \| \| \| 898 \| 1,204 \| 2,102 \| \| \| 1,071 \| 1,396 \| 2,467 \| \| \| 1,074 \| 1,260 \| 2,334 \| \| \| 1,074 \| 1,189 \| 2,263 \| \| \| 740 \| 872 \| 1,612 \| \| \| 6,344 \| 7,933 \| 14,277 \| Base: Aged 16 and over with a valid PGSI score, England, Scotland, and Wales (^a) PGSI: Problem Gambling Severity Index. A score of 8 or more is indicative of problem gambling. A score of 3-7 is indicative of moderate risk gambling. A score of 1-2 is indicative of low risk gambling. A score of 0 denotes a non-problem gambler. (^b) Estimates are shown to one decimal place because of generally low moderate risk and low risk gambling prevalence rates. Figure 4:1 Low risk gambling prevalence (PGSI score of 1 to 2), by age and sex Base: Aged 16 and over with a valid PGSI score \| Age Group \| Men \| Women \| \|-----------\|-----\|-------\| \| 16-24 \| 9.9 \| 1.4 \| \| 25-34 \| 6.9 \| 1.6 \| \| 35-44 \| 2.2 \| 1.0 \| \| 45-54 \| 2.5 \| 1.1 \| \| 55-64 \| 1.9 \| 1.1 \| \| 65-74 \| 1.5 \| 0.7 \| \| 75+ \| 0.6 \| 0.2 \| Figure 4:2 Moderate risk gambling prevalence (PGSI score of 3 to 7), by age and sex Base: Aged 16 and over with a valid PGSI score \| Age Group \| Men \| Women \| \|-----------\|-----\|-------\| \| 16-24 \| 2.4 \| 0.5 \| \| 25-34 \| 3.6 \| 0.5 \| \| 35-44 \| 3.1 \| 0.9 \| \| 45-54 \| 1.1 \| 0.3 \| \| 55-64 \| 1.2 \| 0.1 \| \| 65-74 \| 0.3 \| 0.2 \| \| 75+ \| 0.3 \| 0.2 \| 4.2.2 Number of low risk and moderate risk gamblers in the population Table 4:2 presents the estimated number of low risk and moderate risk gamblers in the population. In 2016, there were approximately 1,190,000 low risk gamblers and 550,000 moderate risk gamblers in Great Britain.4 These figures are estimates and should be considered alongside the confidence intervals shown in Table 4:2. The confidence interval for the estimated number of low risk gamblers in the population is 2.0% to 3.0%, and the confidence interval for the estimated number of moderate risk gamblers in the population is 0.9% to 1.5%. In other words, we can be 95% confident that the true estimate of low risk gamblers in the population is somewhere between 980,000 and 1,450,000 and the true estimate of moderate risk gamblers is somewhere between 420,000 and 710,000. \| Low risk and moderate risk gamblers \| Number in population \| 95% confidence interval \| \|-------------------------------------\|----------------------\|-------------------------\| \| Low risk gambler \| 1,190,000 \| 980,000 - 1,450,000 \| \| Moderate risk gambler \| 550,000 \| 420,000 - 710,000 \| Base: Aged 16 and over with a valid PGSI score, England, Scotland and Wales 4PGSI: Problem Gambling Severity Index. A score of 8 or more is indicative of problem gambling. A score of 3-7 is indicative of moderate risk gambling. A score of 1-2 is indicative of low risk gambling. 4.2.3 Low risk and moderate risk gambling prevalence by activity Table 4:3 presents the prevalence of low risk and moderate risk gambling by gambling activity. When interpreting these findings it should be noted that those who gamble frequently tend to take part in a range of different activities. Such gamblers are therefore likely to be captured across a range of the activities below and these categories are not mutually exclusive. For both, low risk and moderate risk gambling, the lowest prevalence rates were found among those who participated in the National Lottery draws (4.3% and 1.8% respectively) or other lotteries (5.3% and 2.0%). Overall, 5.8% of the people who had participated in any gambling activity excluding the National Lottery draws in the past year were low risk gamblers and 2.7% were moderate risk gamblers. Prevalence for both risk groups were higher among people who had gambled or placed bets online, with 16.1% categorised as low risk and 8.4% categorised as moderate risk gamblers. High prevalence rates for both, low risk and moderate risk gambling, were found for a number of gambling activities including spread betting, machines in bookmakers, online gambling on slots, casino or bingo machines, and betting offline on events other than horse or dog races. The highest rates of low risk gambling were found among people who had participated in betting exchanges (28.5%), machines in a bookmakers (25.7%), spread betting (22.8%), online gambling on slots, casino or bingo games (21.9%), any other gambling (21.8%) and betting on any other events that are not online (21.7%). The highest rates of moderate risk gambling were found among people who had participated in spread betting (28.8%), poker in pubs or clubs (16.1%), betting on other events that are not online (15.0%), online gambling on slots, casino or bingo machines (13.7%) and machines in bookmakers (13.5%). Table 4.3: Low risk and moderate risk gambling prevalence, by activity \| Gambling activity \| PGSI risk category \| Low risk gamblers \| Moderate risk gamblers \| All risk gamblers \| Weighted base \| Unweighted base \| \|----------------------------------------\|--------------------\|-------------------\|------------------------\|-------------------\|---------------\|-----------------\| \| Lotteries and related products \| \| \| \| \| \| \| \| National Lottery draws \| % \| 4.3 \| 1.8 \| 6.1 \| 5,899 \| 6,215 \| \| Scratchcards \| % \| 6.7 \| 3.4 \| 10.1 \| 2,899 \| 3,009 \| \| Other lotteries \| % \| 5.3 \| 2.0 \| 7.3 \| 1,955 \| 2,161 \| \| Machines/games \| \| \| \| \| \| \| \| Football pools \| % \| 17.0 \| 9.0 \| 26.0 \| 389 \| 362 \| \| Bingo (not online) \| % \| 6.0 \| 4.4 \| 10.4 \| 734 \| 884 \| \| Slot machines \| % \| 12.6 \| 7.2 \| 19.8 \| 885 \| 794 \| \| Machines in a bookmakers \| % \| 25.7 \| 13.5 \| 39.2 \| 424 \| 328 \| \| Casino table games (not online) \| % \| 16.9 \| 8.1 \| 25.0 \| 454 \| 354 \| \| Poker played in pubs or clubs \| % \| 19.7 \| 16.1 \| 35.9 \| 126 \| 109 \| \| Online gambling on slots, casino or bingo games \| % \| 21.9 \| 13.7 \| 35.6 \| 449 \| 394 \| \| Betting activities \| \| \| \| \| \| \| \| Online betting with a bookmaker \| % \| 15.8 \| 8.4 \| 24.2 \| 1,076 \| 888 \| \| Betting exchange \| % \| 28.5 \| 12.7 \| 41.2 \| 162 \| 98 \| \| Horse races (not online) \| % \| 8.0 \| 6.1 \| 14.1 \| 1,338 \| 1,324 \| \| Dog races (not online) \| % \| 12.4 \| 13.0 \| 25.4 \| 295 \| 224 \| \| Sports events (not online) \| % \| 14.7 \| 10.2 \| 24.8 \| 744 \| 654 \| \| Other events (not online) \| % \| 21.7 \| 15.0 \| 36.7 \| 186 \| 184 \| \| Spread betting \| % \| 22.8 \| 28.8 \| 51.6 \| 80 \| 63 \| \| Private betting \| % \| 18.9 \| 6.5 \| 25.4 \| 572 \| 423 \| \| Other gambling activity \| \| \| \| \| \| \| \| Any other gambling \| % \| 21.8 \| 9.8 \| 31.7 \| 178 \| 151 \| \| Summaries \| \| \| \| \| \| \| \| Any gambling activity \| % \| 4.4 \| 2.0 \| 6.4 \| 7,945 \| 8,128 \| \| Any gambling (excluding National Lottery draws only) \| % \| 5.8 \| 2.7 \| 8.5 \| 5,944 \| 5,974 \| \| Any online gambling or betting \| % \| 16.1 \| 8.4 \| 24.4 \| 1,331 \| 1,117 \| Base: Aged 16 and over with a valid PGSI score, England, Scotland and Wales \PGSI: Problem Gambling Severity Index. A score of 8 or more is indicative of problem gambling. A score of 3-7 is indicative of moderate risk gambling. A score of 1-2 is indicative of low risk gambling. \Estimates are shown to one decimal place because of generally low moderate risk and low risk gambling prevalence rates. \The base size for each row in the table differs. The percentage figures show low risk and moderate risk gamblers among those who participate in a particular activity, or those who belong to a summary group. Individual survey participants may be included in multiple rows. \This category excludes gamblers who only participated in the National Lottery draws and not in any other gambling activities. \This category includes gamblers who participated in online gambling on slots, casino or bingo games, online betting with a bookmaker, or online betting using a betting exchange. 4.2.4 Low risk and moderate risk gambling prevalence by number of gambling activities The proportions of low risk and moderate risk gamblers increased significantly with the number of gambling activities undertaken in the past 12 months. Table 4:4 and Figure 4:3 show that the proportions of gamblers classified as low risk and moderate risk gamblers respectively were lowest among those who had taken part in just one type of gambling activity in the past year (1.0% and 0.1% respectively), and increased significantly for both risk types with the number of gambling activities undertaken in the past year. The proportion of low risk gamblers was higher among those who participated in four to six activities (12.4%) than among those who participated in two to three activities (3.1%). Similarly, the proportion of moderate risk gamblers was higher among those who participated in four to six activities (5.4%) than among those who participated in two to three activities (1.1%). The highest prevalence of low risk and moderate risk gamblers was found among those who had participated in seven or more activities (26.3% and 19.9% respectively). In other words, almost half of the people who had participated in seven or more gambling activities in the past year (46.2%) were classed as being low or moderate risk gamblers, including almost one in five (19.9%) who were moderate risk gamblers. \| Number of gambling activities \| PGSI risk category \| Weighted base \| Unweighted base \| \|------------------------------\|--------------------\|---------------\|----------------\| \| \| Low risk gamblers \| Moderate risk gamblers \| All risk gamblers \| \| \| 1 activity \| % \| 1.0 \| 0.1 \| 1.1 \| 3,231 \| 3,389 \| \| 2-3 activities \| % \| 3.1 \| 1.1 \| 4.3 \| 3,364 \| 3,475 \| \| 4-6 activities \| % \| 12.4 \| 5.4 \| 17.7 \| 1,025 \| 986 \| \| 7 or more activities \| % \| 26.3 \| 19.9 \| 46.2 \| 325 \| 278 \| Base: Aged 16 and over with a valid PGSI score, England, Scotland and Wales PGSI: Problem Gambling Severity Index. A score of 8 or more is indicative of problem gambling. A score of 3-7 is indicative of moderate risk gambling. A score of 1-2 is indicative of low risk gambling. Estimates are shown to one decimal place because of generally low moderate risk and low risk gambling prevalence rates. 4.2.5 Low risk and moderate risk gambling prevalence by frequency of gambling participation Low risk and moderate risk gambling prevalence was also significantly associated with how often gamblers participated in gambling activities in the past year. As can be seen in Table 4:5 and Figure 4:4, people who gambled only once or twice in the past year were least likely to be categorised as low risk or moderate risk gamblers (0.7% and 0.1% respectively), whilst people who gambled two or more times a week were most likely to be classed as either low risk or moderate risk gamblers (9.4% and 8.4% respectively). Both risk groups followed a similar trajectory with an overall decrease in the proportions of low risk and moderate risk gamblers as the frequency of gambling decreased. However, the proportion of low risk gamblers was slightly higher among those who gambled less than once a week but more than once a month in the past 12 months than among those who gambled once a week to (7.8% and 5.7% respectively). ### Table 4:5 Low risk and moderate risk gambling prevalence(^a), by frequency of gambling participation(^b) \| Frequency of gambling participation \| PGSI risk category \| \| \| \| \| \| \|-----------------------------------\|-------------------\|---\|---\|---\|---\|---\| \| \| Low risk \| Moderate risk \| All risk \| Weighted base \| Unweighted base \| \| \| gamblers \| gamblers \| gamblers \| \| \| \| 2 or more times a week \| % \| 9.4 \| 8.4 \| 17.8 \| 1,046 \| 1,273 \| \| Once a week \| % \| 5.7 \| 1.9 \| 7.5 \| 2,166 \| 2,394 \| \| Less than once a week, more than once a month \| % \| 7.8 \| 0.8 \| 8.6 \| 800 \| 825 \| \| Once a month \| % \| 3.5 \| 0.8 \| 4.3 \| 928 \| 904 \| \| Every 2-3 months \| % \| 1.9 \| 1.6 \| 3.5 \| 1,052 \| 932 \| \| Once or twice a year \| % \| 0.7 \| 0.1 \| 0.9 \| 1,881 \| 1,725 \| Base: Aged 16 and over with a valid PGSI score, England, Scotland and Wales (^a)PGSI: Problem Gambling Severity Index. A score of 8 or more is indicative of problem gambling. A score of 3-7 is indicative of moderate risk gambling. A score of 1-2 is indicative of low risk gambling. (^b)Estimates are shown to one decimal place because of generally low moderate risk and low risk gambling prevalence rates. ### Figure 4:4 Low risk and moderate risk gambling prevalence, by frequency of gambling participation Base: Aged 16 and over with a valid PGSI score - Low risk gamblers - Moderate risk gamblers 4.3 Profile of low risk and moderate risk gamblers This section discusses low risk and moderate risk gambling in the context of a range of socio-demographic characteristics and health indicators with the intention of deriving a profile of people who are likely to be categorised as low or moderate risk gamblers. 4.3.1 Low risk and moderate risk gambling prevalence by socio-demographic characteristics The prevalence of low risk and moderate risk gambling by ethnicity, economic activity, English region and country is shown in Table 4:6. There were no significant associations between the proportions of low risk and moderate risk gamblers and any socio-demographic characteristic with the exception of economic activity. Rates of low risk gambling were highest among unemployed adults (6.6%). The proportion of low risk gamblers was also higher among those in full-time education (3.9%) than among those who were in paid work (2.8%) or the other inactive group (1.3%). Retired people were least likely to be low risk gamblers (0.7%). The highest proportions of moderate risk gamblers were found among those who were unemployed or in paid work (both 1.5%) or were otherwise inactive (1.4%). Among retired people 0.3% were classified as moderate risk gamblers. There were no observations of moderate risk gambling among those in full-time education. No statistically significant differences were found for the proportions of low risk and moderate risk gamblers by ethnicity, region, or country. Table 4:6 Low risk and moderate risk gambling prevalence(^a), by socio-demographic characteristics(^b) \| Socio-demographic characteristics \| PGSI risk category \| Low risk gamblers \| Moderate risk gamblers \| All risk gamblers \| Weighted base \| Unweighted base \| \|-----------------------------------\|--------------------\|-------------------\|-----------------------\|------------------\|---------------\|----------------\| \| Ethnic group(^c)* \| \| \| \| \| \| \| \| White/White British \| % \| 2.5 \| 1.2 \| 3.7 \| 11,364 \| 9,835 \| \| Asian/Asian British \| % \| 1.2 \| 0.3 \| 1.5 \| 927 \| 462 \| \| Black/Black British \| % \| 2.5 \| 0.0 \| 2.5 \| 412 \| 187 \| \| Other, including mixed \| % \| 5.0 \| 1.8 \| 6.8 \| 350 \| 191 \| \| Economic activity(^d) \| \| \| \| \| \| \| \| In paid work \| % \| 2.8 \| 1.5 \| 4.3 \| 7,669 \| 5,519 \| \| In full-time education \| % \| 3.9 \| - \| 3.9 \| 763 \| 435 \| \| Retired \| % \| 0.7 \| 0.3 \| 1.1 \| 2,958 \| 2,731 \| \| Unemployed \| % \| 6.6 \| 1.5 \| 8.0 \| 706 \| 384 \| \| Other inactive \| % \| 1.3 \| 1.4 \| 2.7 \| 1,474 \| 1,183 \| \| English region \| \| \| \| \| \| \| \| North East \| % \| 2.6 \| 0.4 \| 3.0 \| 600 \| 598 \| \| North West \| % \| 2.5 \| 1.3 \| 3.8 \| 1,618 \| 936 \| \| Yorkshire and the Humber \| % \| 3.4 \| 0.8 \| 4.3 \| 1,216 \| 579 \| \| East Midlands \| % \| 1.4 \| 0.9 \| 2.3 \| 1,065 \| 609 \| \| West Midlands \| % \| 1.7 \| 1.7 \| 3.4 \| 1,290 \| 602 \| \| East of England \| % \| 2.4 \| 1.1 \| 3.5 \| 1,370 \| 797 \| \| London \| % \| 1.5 \| 1.2 \| 2.7 \| 1,928 \| 779 \| \| South East \| % \| 4.0 \| 1.2 \| 5.2 \| 2,019 \| 1,053 \| \| South West \| % \| 2.4 \| 1.0 \| 3.5 \| 1,257 \| 724 \| \| Country \| \| \| \| \| \| \| \| England \| % \| 2.5 \| 1.1 \| 3.6 \| 12,364 \| 6,677 \| \| Scotland \| % \| 2.3 \| 1.1 \| 3.4 \| 1,214 \| 3,583 \| \| Wales \| % \| 2.0 \| 1.0 \| 2.9 \| 705 \| 4,017 \| Base: Aged 16 and over with a valid PGSI score, England, Scotland and Wales (^a)PGSI: Problem Gambling Severity Index. A score of 8 or more is indicative of problem gambling. A score of 3-7 is indicative of moderate risk gambling. A score of 1-2 is indicative of low risk gambling. (^b)Estimates are shown to one decimal place because of generally low moderate risk and low risk gambling prevalence rates. (^c)Estimates by ethnic group are based on England and Wales (comparable information was not available for Scotland). (^d)Estimates by economic activity are based on England and Scotland (comparable information was not available for Wales). 4.3.2 Low risk and moderate risk gambling prevalence by health indicators Table 4:7 explores whether low risk and moderate risk gambling rates in England and Scotland vary by mental health (GHQ-12 score), well-being (WEMWBS score), and weekly alcohol consumption. No comparable data were available for Wales. The GHQ-12 is scored on a range from 0 to 12. The GHQ-12 scores have been demarcated into three categories; 0 (indicating no evidence of mental ill health), 1 to 3 (indicating less than optimal mental health) and 4+ (indicating probable psychological disturbance or mental ill health). WEMWBS scores were aggregated into two groups, those in the lowest 10% of scores and those with higher well-being scores. Alcohol consumption is split into three categories, based upon amount people drink; non-drinkers, drinking at a level indicating a low risk of harm (up to and including 14 units per week) and drinking at a level indicating increased risk of harm (over 14 units per week). A more detailed outline of these measures can be found in Chapter 2 of this report. Low risk and moderate risk gambling were significantly associated with mental health as measured by GHQ-12 and with weekly alcohol consumption but not with well-being as measured by WEMWBS. The proportion of low risk gamblers was lowest for those with no evidence of probable mental ill health (a GHQ-12 score of 0) and higher among those with less than optimal mental health (a GHQ-12 score of 1-3) and probable mental ill health (a GHQ-12 score of 4+) (3.8% and 3.3% respectively). The proportion of moderate risk gamblers was highest among those who scored 4 or more on the GHQ-12 indicating probable mental ill health (1.8%). Prevalence rates decreased for those with a GHQ-12 score between 1 and 3 indicating less than optimal mental health (1.4%) and was lowest for those with a score of 0 indicating no evidence of probable mental ill health (0.8%). The proportions of both low risk and moderate risk gamblers were associated with higher weekly alcohol consumption as measured in units of alcohol. The proportions of low risk and moderate risk gamblers were highest among people whose weekly alcohol consumption exceeded 14 units of alcohol (4.9% and 1.8% respectively). Prevalence decreased for both risk profiles among drinkers who consumed up to and including 14 units a week (1.9% and 1.0% respectively) and was lowest among non-drinkers (1.0% and 0.6% respectively). Table 4:7 Low risk and moderate risk gambling prevalence(^a), by health indicator(^b) \| Health indicators \| PGSI risk category \| Low risk gamblers \| Moderate risk gamblers \| All risk gamblers \| Weighted base \| Unweighted base \| \|------------------------------------\|--------------------\|-------------------\|------------------------\|-------------------\|---------------\|-----------------\| \| GHQ-12 score(^c) \| \| \| \| \| \| \| \| No evidence of mental ill health \| % \| 1.5 \| 0.8 \| 2.3 \| 5,430 \| 5,705 \| \| Less than optimal mental health \| % \| 3.8 \| 1.4 \| 5.3 \| 2,755 \| 2,601 \| \| Probable mental ill health \| % \| 3.3 \| 1.8 \| 5.1 \| 1,840 \| 1,742 \| \| WEMWBS score(^d) \| \| \| \| \| \| \| \| Low well-being score \| % \| 3.1 \| 2.0 \| 5.1 \| 938 \| 961 \| \| Other well-being score \| % \| 2.4 \| 1.1 \| 3.5 \| 9,113 \| 9,104 \| \| Weekly alcohol consumption \| \| \| \| \| \| \| \| Non-drinker (0 units per week) \| % \| 1.0 \| 0.6 \| 1.6 \| 1,782 \| 1,726 \| \| Low risk (up to 14 units per week) \| % \| 1.9 \| 1.0 \| 2.9 \| 5,863 \| 5,979 \| \| Increased risk (over 14 units per week) \| % \| 4.9 \| 1.8 \| 6.7 \| 2,420 \| 2,408 \| Base: Aged 16 and over with a valid PGSI score, England and Scotland (^a)PGSI: Problem Gambling Severity Index. A score of 8 or more is indicative of problem gambling. A score of 3-7 is indicative of moderate risk gambling. A score of 1-2 is indicative of low risk gambling. (^b)Estimates are shown to one decimal place because of generally low problem gambling prevalence rates. (^c)A GHQ-12 score of 0 is indicative of no evidence of probable mental ill health, a score of 1-3 is indicative of less than optimal mental health, a score of 4+ is indicative of probable mental ill health. (^d)A ‘Low well-being score’ denotes the lowest 10% of scores on the Warwick-Edinburgh Mental Well-being Scale (WEMWBS). An ‘Other well-being score’ denotes all other scores on WEMWBS. Notes and references 1 Ferris, J., Wynne, H. (2001). The Canadian Problem Gambling Index: Final report. Ottawa: Canadian Centre on Substance Abuse. 2 Wynne, H. (2003). Introducing the Canadian Problem Gambling Index. Wynne Resources: Canada. 3 Wardle, H., Moody, A., Spence, S., Orford, J., Volberg, R., Jotangia, D., Griffiths, M., Hussey, D., Dobbie, F. (2011). British Gambling Prevalence Survey 2010. London: National Centre for Social Research. 4 Population estimates in text are rounded to the nearest 10,000. 5 The in paid work group includes people who are in employment, self-employed or in government training. 6 The other economically inactive group includes people not otherwise classifiable, for example the long-term sick, carers and those looking after home or family. 7 Note that the sample only included adults living in private households meaning that people living in institutions, like students living in halls of residence, were excluded from the study. Problem gamblers in Great Britain According to either the DSM-IV or PGSI problem gambling screens Overall problem gambling - 0.7% of all adults - 1.2% of past year gamblers Problem gambling was more common among: - Men: 1.2% - Those who had gambled 2 or more times a week: 4.5% Problem gambling was more common among people who - Participated in multiple gambling activities: - 1 activity: 0.3% - 2-3 activities: 0.4% - 4-6 activities: 3.2% - 7+ activities: 13.2% - Had probable mental ill health: - No evidence of mental ill health: 0.2% - Less than optimal mental health: 0.6% - Probable mental ill health: 2.2% The highest rates of problem gambling were among those who had participated in: - Gambling on machines in bookmakers: 13.7% - Betting offline on events other than sports or horse or dog racing: 13.1% - Betting offline on dog racing: 9.5% - Online gambling on slots, casino or bingo games: 9.2% 5 Prevalence and profile of problem gamblers 5.1 Introduction This chapter presents information about the prevalence of problem gambling among adults aged 16 and over living in private households in Great Britain. It also examines how the proportion of problem gamblers varies according to a range of socio-demographic characteristics and health indicators. ‘Problem gambling’ is typically defined as gambling to a degree that compromises, disrupts or damages family, personal or recreational pursuits. There are a number of screening tools available to identify problem gambling. Previous gambling studies in Great Britain have screened for problem gambling using scales based on two different measures: the DSM-IV criteria and the Problem Gambling Severity Index (PGSI). Because the prevalence rates are very low, estimates of problem gambling are shown to one decimal place. 5.2 Problem gambling screens 5.2.1 The DSM-IV The DSM-IV screening instrument is based on criteria from the fourth edition of the Diagnostic and Statistical Manual of the American Psychiatric Association (DSM-IV). It was created as a clinical diagnostic tool, and was not intended for use as a screening instrument among the general population. An adapted version of the DSM-IV for use in a survey setting was developed for the BGPS series and was subject to a rigorous development and testing process, including cognitive testing and piloting. The DSM-IV contains ten diagnostic criteria ranging from ‘chasing losses’ to ‘committing a crime to fund gambling’. Each item is assessed on a four-point scale, ranging from ‘never’ to ‘very often’. The scoring of each of the DSM-IV items is described in Appendix B, including the threshold for a positive score, which varies across items. This report follows the scoring method used by the BGPS; each item is coded according to whether the respondent had a positive score, resulting in a total score between 0 and 10. Many surveys, when adapting the DSM-IV criteria into a screening instrument for use within a general population survey, have categorised problem gambling as those who meet at least three of the DSM-IV criteria. This approach was adopted for the BGPS series and is used here. 5.2.2 The PGSI As described in Chapter 4, the PGSI was designed for use among the general population rather than within a clinical context. It was developed, tested and validated within a general population survey of over 3,000 Canadian residents. The instrument itself has been subject to critical evaluation and was revised in 2003. The PGSI consists of nine items ranging from ‘chasing losses’ to ‘gambling causing health problems’ to ‘feeling guilty about gambling’. Each item is assessed on a four-point scale: never, sometimes, most of the time, almost always. Responses to each item are given the following scores: never = 0; sometimes = 1; most of the time = 2; almost always = 3. When scores to each item are summed, a total score ranging from 0 to 27 is possible. A PGSI score of 8 or more represents a problem gambler. This is the threshold recommended by the developers of the PGSI and the threshold used in this and previous reports. 5.3 Problem gambling prevalence 5.3.1 Prevalence according to the DSM-IV Table 5:1 shows the prevalence of problem gambling according to DSM-IV (a DSM-IV score of 3 or more) by age and sex. According to the DSM-IV, problem gambling prevalence among adults aged 16 and over was 0.6%. The confidence interval around this estimate is 0.4% to 0.8%, meaning that taking into account sampling error we can be 95% confident that the true estimate falls between these two values. Men were more likely than women to be classified as problem gamblers according to the DSM-IV (1.0% and 0.2% respectively). Mean DSM-IV scores followed a similar pattern, being higher among men (0.10) than women (0.02). Among men, the proportion of problem gamblers was highest among those aged 25 to 34 (2.2%), but was otherwise at similar levels across age groups, with no problem gamblers found among men aged 75 and over. Among women, variation by age was not statistically significant. Table 5:1 Problem gambling prevalence according to DSM-IV\\textsuperscript{a}, by age and sex\\textsuperscript{b} \| DSM-IV score \| 16-24 \| 25-34 \| 35-44 \| 45-54 \| 55-64 \| 65-74 \| 75+ \| Total \| \|--------------\|-------\|-------\|-------\|-------\|-------\|-------\|-----\|-------\| \| Men \| \| \| \| \| \| \| \| \| \| Non problem gambler \| 99.2 \| 97.8 \| 99.1 \| 98.9 \| 99.1 \| 99.3 \| 100.0 \| 99.0 \| \| Problem gambler \| 0.8 \| 2.2 \| 0.9 \| 1.1 \| 0.9 \| 0.7 \| - \| 1.0 \| \| Mean DSM-IV score \| 0.11 \| 0.15 \| 0.10 \| 0.10 \| 0.08 \| 0.04 \| 0.04 \| 0.10 \| \| Standard error of mean \| 0.03 \| 0.03 \| 0.03 \| 0.03 \| 0.02 \| 0.01 \| 0.01 \| 0.01 \| \| Women \| \| \| \| \| \| \| \| \| \| Non problem gambler \| 99.8 \| 99.8 \| 99.8 \| 99.8 \| 99.9 \| 100.0 \| 99.7 \| 99.8 \| \| Problem gambler \| 0.2 \| 0.2 \| 0.2 \| 0.2 \| 0.1 \| - \| 0.3 \| 0.2 \| \| Mean DSM-IV score \| 0.03 \| 0.03 \| 0.03 \| 0.03 \| 0.02 \| 0.01 \| 0.02 \| 0.02 \| \| Standard error of mean \| 0.01 \| 0.01 \| 0.01 \| 0.01 \| 0.01 \| 0.00 \| 0.01 \| 0.00 \| \| All adults \| \| \| \| \| \| \| \| \| \| Non problem gambler \| 99.5 \| 98.8 \| 99.4 \| 99.4 \| 99.5 \| 99.6 \| 99.9 \| 99.4 \| \| Problem gambler \| 0.5 \| 1.2 \| 0.6 \| 0.6 \| 0.5 \| 0.4 \| 0.1 \| 0.6 \| \| Mean DSM-IV score \| 0.07 \| 0.09 \| 0.07 \| 0.06 \| 0.05 \| 0.03 \| 0.03 \| 0.06 \| \| Standard error of mean \| 0.02 \| 0.02 \| 0.01 \| 0.01 \| 0.01 \| 0.01 \| 0.01 \| 0.01 \| Men - Weighted base: 1,009, 1,206, 1,128, 1,238, 998, 846, 585, 7,010 - Unweighted base: 652, 838, 898, 1,073, 1,077, 742, 6,358 Women - Weighted base: 952, 1,215, 1,140, 1,277, 1,039, 910, 768, 7,301 - Unweighted base: 732, 1,282, 1,206, 1,398, 1,262, 1,194, 874, 7,948 All adults - Weighted base: 1,961, 2,420, 2,268, 2,515, 2,038, 1,757, 1,352, 14,311 - Unweighted base: 1,384, 2,120, 2,104, 2,471, 2,340, 2,271, 1,616, 14,306 Base: Aged 16 and over with a valid DSM-IV score, England, Scotland, and Wales \\textsuperscript{a}DSM-IV: Diagnostic and Statistical Manual of Mental Disorders, fourth version (1994). A score of 3 or more is indicative of problem gambling. \\textsuperscript{b}Estimates of prevalence are shown to one decimal place because of generally low problem gambling prevalence rates. 5.3.2 Prevalence according to the PGSI According to the PGSI, problem gambling prevalence among adults was 0.5%. The confidence interval around the estimate for all adults is 0.3% to 0.7%, meaning we can be 95% confident that the true estimate falls between these two values. As with the DSM-IV, men were more likely than women to be classified as problem gamblers (0.9% and 0.1% respectively). Mean PGSI scores followed a similar pattern being higher among men (0.24) than women (0.04). There were no observations of problem gambling among those aged 75 and over. As shown in Figure 5:2, among men, the proportion of problem gamblers according to the PGSI was again highest among those aged 25 to 34 (2.1%). Among women, there was no significant variation by age. No men aged 75 and over or women aged 65 and over were categorised as problem gamblers according to the PGSI. Mean PGSI scores were highest among men in the youngest age groups and lower among older men. Once again there were too few observations to indicate whether there was any pattern of problem gambling prevalence by age for women. Table 5:2 Problem gambling prevalence according to PGSI\\textsuperscript{a}, by age and sex\\textsuperscript{b} \| PGSI scores \| Age group \| Total \| \|-------------\|-----------\|-------\| \| \| 16-24 \| 25-34 \| 35-44 \| 45-54 \| 55-64 \| 65-74 \| 75+ \| \| Men \| % \| % \| % \| % \| % \| % \| % \| \| Non problem gambler \| 86.8 \| 87.4 \| 94.2 \| 95.4 \| 96.0 \| 98.0 \| 99.1 \| 93.3 \| \| Low risk gambler \| 9.9 \| 6.9 \| 2.2 \| 2.5 \| 1.9 \| 1.5 \| 0.6 \| 3.9 \| \| Moderate risk gambler \| 2.4 \| 3.6 \| 3.1 \| 1.1 \| 1.2 \| 0.3 \| 0.3 \| 1.9 \| \| Problem gambler \| 0.9 \| 2.1 \| 0.5 \| 1.0 \| 0.9 \| 0.2 \| - \| 0.9 \| \| Mean PGSI score \| 0.35 \| 0.46 \| 0.24 \| 0.21 \| 0.18 \| 0.04 \| 0.02 \| 0.24 \| \| Standard error of mean \| 0.08 \| 0.10 \| 0.06 \| 0.05 \| 0.05 \| 0.02 \| 0.01 \| 0.03 \| \| Women \| % \| % \| % \| % \| % \| % \| % \| \| Non problem gambler \| 98.0 \| 97.9 \| 98.0 \| 98.4 \| 98.7 \| 99.2 \| 99.6 \| 98.5 \| \| Low risk gambler \| 1.4 \| 1.6 \| 1.0 \| 1.1 \| 1.1 \| 0.7 \| 0.2 \| 1.1 \| \| Moderate risk gambler \| 0.5 \| 0.5 \| 0.9 \| 0.3 \| 0.1 \| 0.2 \| 0.2 \| 0.4 \| \| Problem gambler \| 0.2 \| 0.0 \| 0.0 \| 0.1 \| 0.1 \| - \| - \| 0.1 \| \| Mean PGSI score \| 0.07 \| 0.05 \| 0.06 \| 0.04 \| 0.03 \| 0.01 \| 0.01 \| 0.04 \| \| Standard error of mean \| 0.03 \| 0.02 \| 0.02 \| 0.01 \| 0.01 \| 0.01 \| 0.01 \| 0.01 \| \| All adults \| % \| % \| % \| % \| % \| % \| % \| \| Non problem gambler \| 92.2 \| 92.7 \| 96.1 \| 96.9 \| 97.4 \| 98.6 \| 99.4 \| 95.9 \| \| Low risk gambler \| 5.8 \| 4.2 \| 1.6 \| 1.8 \| 1.5 \| 1.1 \| 0.4 \| 2.4 \| \| Moderate risk gambler \| 1.5 \| 2.1 \| 2.0 \| 0.7 \| 0.7 \| 0.2 \| 0.2 \| 1.1 \| \| Problem gambler \| 0.6 \| 1.0 \| 0.3 \| 0.6 \| 0.5 \| 0.1 \| - \| 0.5 \| \| Mean PGSI score \| 0.21 \| 0.25 \| 0.15 \| 0.12 \| 0.10 \| 0.03 \| 0.01 \| 0.14 \| \| Standard error of mean \| 0.04 \| 0.05 \| 0.03 \| 0.03 \| 0.03 \| 0.01 \| 0.01 \| 0.01 \| Men Weighted base \| 1,007 \| 1,203 \| 1,126 \| 1,236 \| 996 \| 845 \| 584 \| 6,996 \| Unweighted base \| 651 \| 836 \| 898 \| 1,071 \| 1,074 \| 1,074 \| 740 \| 6,344 \| Women Weighted base \| 950 \| 1,212 \| 1,138 \| 1,274 \| 1,037 \| 908 \| 766 \| 7,287 \| Unweighted base \| 732 \| 1,280 \| 1,204 \| 1,396 \| 1,260 \| 1,189 \| 872 \| 7,933 \| All adults Weighted base \| 1,957 \| 2,415 \| 2,264 \| 2,510 \| 2,034 \| 1,753 \| 1,350 \| 14,283 \| Unweighted base \| 1,383 \| 2,116 \| 2,102 \| 2,467 \| 2,334 \| 2,263 \| 1,612 \| 14,277 \| Base: Aged 16 and over with a valid PGSI score, England, Scotland, and Wales \\textsuperscript{a}PGSI: Problem Gambling Severity Index. A score of 8 or more is indicative of problem gambling. A score of 3-7 is indicative of moderate risk gambling. A score of 1-2 is indicative of low risk gambling. \\textsuperscript{b}Estimates of prevalence are shown to one decimal place because of generally low problem gambling prevalence rates. 5.3.3 Prevalence according to either screen As explained in the introduction to this chapter, many different ways to measure problem gambling in population based surveys exist. For this reason, surveys measuring gambling problems in Britain have tended to include two different instruments as each captures a slightly different range of people and problems. It is therefore possible to produce a problem gambling estimate based on whether participants were categorised as a problem gambler according to either the DSM-IV or the PGSI. The proportion of problem gamblers among adults as measured by either the DSM-IV or the PGSI was 0.7%. The confidence interval around the estimate for all adults is 0.5% to 0.9%, meaning we can be 95% confident that the true estimate falls between these two values. Men were more likely than women to be classified as a problem gambler by one or other measure (1.2% and 0.2% respectively). The age pattern according to the combined measure was similar to each scale separately; men aged between 25 and 34 had the highest rate, but variation by age for women was not statistically significant. Table 5:3 Problem gambling prevalence according to either DSM-IV(^a) or PGSI(^b), by age and sex(^c) \| Classification according to either DSM-IV or PGSI scores \| Age group \| Total \| \|----------------------------------------------------------\|-----------\|-------\| \| \| 16-24 \| 25-34 \| 35-44 \| 45-54 \| 55-64 \| 65-74 \| 75+ \| \| Men \| % \| % \| % \| % \| % \| % \| % \| \| Non problem gambler \| 99.0 \| 97.6 \| 99.0 \| 98.9 \| 98.7 \| 99.1 \| 100.0 \| \| Problem gambler \| 1.0 \| 2.4 \| 1.0 \| 1.1 \| 1.3 \| 0.9 \| - \| \| Women \| 99.8 \| 99.8 \| 99.8 \| 99.7 \| 99.9 \| 100.0 \| 99.7 \| \| Problem gambler \| 0.2 \| 0.2 \| 0.2 \| 0.3 \| 0.1 \| - \| 0.3 \| \| All adults \| 99.4 \| 98.7 \| 99.4 \| 99.3 \| 99.3 \| 99.6 \| 99.9 \| \| Problem gambler \| 0.6 \| 1.3 \| 0.6 \| 0.7 \| 0.7 \| 0.4 \| 0.1 \| Weighted base \| Men \| 1,010 \| 1,205 \| 1,127 \| 1,238 \| 998 \| 847 \| 586 \| 7,012 \| \|-----\|-------\|-------\|-------\|-------\|------\|------\|------\|-------\| \| Women \| 951 \| 1,214 \| 1,140 \| 1,277 \| 1,040 \| 910 \| 771 \| 7,302 \| \| All adults \| 1,961 \| 2,419 \| 2,267 \| 2,515 \| 2,038 \| 1,757 \| 1,357 \| 14,314 \| Unweighted base \| Men \| 652 \| 838 \| 898 \| 1,073 \| 1,078 \| 1,077 \| 743 \| 6,359 \| \|-----\|------\|------\|------\|-------\|-------\|-------\|------\|-------\| \| Women \| 732 \| 1,282 \| 1,206 \| 1,398 \| 1,262 \| 1,194 \| 875 \| 7,949 \| \| All adults \| 1,384 \| 2,120 \| 2,104 \| 2,471 \| 2,340 \| 2,271 \| 1,618 \| 14,308 \| Base: Aged 16 and over with a valid DSM-IV or PGSI score, England, Scotland, and Wales (^a)DSM-IV: Diagnostic and Statistical Manual of Mental Disorders, fourth version (1994). A score of 3 or more is indicative of problem gambling. (^b)PGSI: Problem Gambling Severity Index. A score of 8 or more is indicative of problem gambling. A score of 3-7 is indicative of moderate risk gambling. A score of 1-2 is indicative of low risk gambling. (^c)Estimates of prevalence are shown to one decimal place because of generally low problem gambling prevalence rates. 5.3.4 Number of problem gamblers in the population In 2016, the number of adult problem gamblers in Great Britain was approximately 290,000 according to the DSM-IV, 230,000 according to the PGSI and approximately 340,000 according to either screen. These figures are estimates and should be considered alongside their confidence intervals, as shown by Table 5:4. The confidence interval for the DSM-IV estimate was 0.4% to 0.8%, for the PGSI estimate 0.3% to 0.7% and for either screen 0.5% to 0.9%. In other words, we can be 95% confident that the true estimate of problem gamblers in the population is somewhere between 200,000 and 410,000 adults according to the DSM-IV, between 160,000 and 350,000 adults according to the PGSI, and between 250,000 and 460,000 adults according to either screen. \| Problem gambling measure \| Number in population \| 95% confidence interval \| \|--------------------------\|----------------------\|-------------------------\| \| DSM-IV \| 290,000 \| 200,000 - 410,000 \| \| PGSI \| 230,000 \| 160,000 - 350,000 \| \| Either DSM-IV or PGSI \| 340,000 \| 250,000 - 460,000 \| Base: Aged 16 and over with a valid DSM-IV or PGSI score, England, Scotland and Wales \DSM-IV: Diagnostic and Statistical Manual of Mental Disorders, fourth version (1994). A score of 3 or more is indicative of problem gambling. \PGSI: Problem Gambling Severity Index. A score of 8 or more is indicative of problem gambling. A score of 3-7 is indicative of moderate risk gambling. A score of 1-2 is indicative of low risk gambling. 5.3.5 Problem gambling prevalence by activity Table 5:5 presents the proportion of problem gamblers for individual gambling activity undertaken in the past year. Those who gamble frequently (at least once a month or more) tend to take part in a range of different activities, and the gambling activities shown are not mutually exclusive. The highest rates of problem gambling were among those who had played machines in bookmakers (13.7%), participated in betting offline on events other than sports or horse or dog racing (13.1%), reported another gambling activity not covered by the survey question (11.6%), betting offline on dog racing (9.5%) and online gambling on slots, casino or bingo games (9.2%). These were all low participation activities (see Table 2:1). As in 2015, the most popular gambling activities – the National Lottery draws, other lotteries and scratchcards – had the lowest proportion of problem gamblers of all activities: between 1.0% and 1.8%. However, due to their popularity, the actual number of problem gamblers among National Lottery and other lottery players is higher than for overall low participation activities such as playing machines in bookmakers or betting on sports events, although there is overlap between the two groups. Table 5:5 Problem gambling prevalence according to either DSM-IV(^a) or PGSI(^b), by activity(^c) \| Gambling activity \| Problem gambler \| According to either DSM-IV or PGSI \| Weighted base(^d) \| Unweighted base(^d) \| \|--------------------------------------------------------\|-----------------\|-----------------------------------\|----------------------\|-----------------------\| \| Lotteries and related products \| \| \| \| \| \| National Lottery draws \| % \| 1.0 \| 5,920 \| 6,236 \| \| Scratchcards \| % \| 1.8 \| 2,905 \| 3,017 \| \| Other lotteries \| % \| 1.5 \| 1,968 \| 2,172 \| \| Machines/games \| \| \| \| \| \| Football pools \| % \| 7.2 \| 388 \| 362 \| \| Bingo (not online) \| % \| 3.9 \| 734 \| 886 \| \| Slot machines \| % \| 6.4 \| 884 \| 795 \| \| Machines in a bookmakers \| % \| 13.7 \| 424 \| 329 \| \| Casino table games (not online) \| % \| 7.4 \| 454 \| 354 \| \| Poker played in pubs or clubs \| % \| 8.5 \| 125 \| 109 \| \| Online gambling on slots, casino or bingo games \| % \| 9.2 \| 449 \| 394 \| \| Betting Activities \| \| \| \| \| \| Online betting with a bookmaker \| % \| 2.5 \| 1,081 \| 890 \| \| Betting exchange \| % \| 5.4 \| 162 \| 98 \| \| Horse races (not online) \| % \| 3.3 \| 1,341 \| 1,327 \| \| Dog races (not online) \| % \| 9.5 \| 297 \| 225 \| \| Sports events (not online) \| % \| 5.1 \| 751 \| 657 \| \| Other events (not online) \| % \| 13.1 \| 188 \| 185 \| \| Spread betting \| % \| 8.0 \| 82 \| 64 \| \| Private betting \| % \| 2.5 \| 572 \| 423 \| \| Other gambling activity \| \| \| \| \| \| Any other gambling \| % \| 11.6 \| 180 \| 153 \| \| Summaries \| \| \| \| \| \| Any gambling activity \| % \| 1.2 \| 7,979 \| 8,159 \| \| Any gambling (excluding National Lottery draws only)(^e) \| % \| 1.6 \| 5,967 \| 5,995 \| \| Any online gambling or betting(^f) \| % \| 3.5 \| 1,335 \| 1,119 \| Base: Aged 16 and over with a valid DSM-IV or PGSI score, England, Scotland and Wales (^a)DSM-IV: Diagnostic and Statistical Manual of Mental Disorders, fourth version (1994). A score of 3 or more is indicative of problem gambling. (^b)PGSI: Problem Gambling Severity Index. A score of 8 or more is indicative of problem gambling. A score of 3-7 is indicative of moderate risk gambling. A score of 1-2 is indicative of low risk gambling. (^c)Estimates are shown to one decimal place because of generally low problem gambling prevalence rates. (^d)The base size for each row in the table differs. The percentage figures show problem gamblers among those who participated in a particular activity, or who belong to a summary group. Individual survey participants may be included in multiple rows. (^e)This category excludes gamblers who only participated in the National Lottery draws and not in any other gambling activities. (^f)This category includes gamblers who participated in online gambling on slots, casino or bingo games, online betting with a bookmaker, or online betting using a betting exchange. 5.3.6 Problem gambling prevalence by number of activities Table 5:6 and Figure 5:4 show the proportions of problem gamblers by the number of gambling activities undertaken in the past 12 months. The lowest proportion of problem gamblers was found among people who had taken part in just one type of gambling activity (0.3%), or two or three activities (0.4%) in the last year. The proportion increased to 3.2% of those who had taken part in four to six activities, and was highest among those who had participated in seven or more activities in the past year (13.2%). \| Number of gambling activities \| Problem gambler according to either DSM-IV or PGSI \| Weighted base \| Unweighted base \| \|-------------------------------\|-----------------------------------------------\|---------------\|-----------------\| \| 1 activity \| % \| 0.3 \| 3,250 \| 3,406 \| \| 2-3 activities \| % \| 0.4 \| 3,377 \| 3,487 \| \| 4-6 activities \| % \| 3.2 \| 1,025 \| 987 \| \| 7 or more activities \| % \| 13.2 \| 327 \| 279 \| Base: Past year gamblers aged 16 and over with a valid DSM-IV or PGSI score, England, Scotland and Wales aDSM-IV: Diagnostic and Statistical Manual of Mental Disorders, fourth version (1994). A score of 3 or more is indicative of problem gambling. bPGSI: Problem Gambling Severity Index. A score of 8 or more is indicative of problem gambling. A score of 3-7 is indicative of moderate risk gambling. A score of 1-2 is indicative of low risk gambling. cEstimates are shown to one decimal place because of generally low problem gambling prevalence rates. Figure 5:4 Problem gambling prevalence according to either the DSM-IV\\textsuperscript{a} or PGSI\\textsuperscript{b}, by number of gambling activities \\textit{Base: Aged 16 and over with a valid DSM-IV or PGSI score, England, Scotland and Wales} \\begin{figure} \\centering \\includegraphics[width=\\textwidth]{figure54.png} \\end{figure} \\textsuperscript{a}DSM-IV: Diagnostic and Statistical Manual of Mental Disorders, fourth version (1994). A score of 3 or more is indicative of problem gambling. \\textsuperscript{b}PGSI: Problem Gambling Severity Index. A score of 8 or more is indicative of problem gambling. A score of 3-7 is indicative of moderate risk gambling. A score of 1-2 is indicative of low risk gambling. 5.3.7 Problem gambling prevalence by frequency of gambling participation A significant difference in the proportion of problem gamblers was also found for the frequency of participation in gambling activities. Table 5:7 and Figure 5:5 show that the proportion of problem gamblers decreased overall as gambling frequency decreased, so that the prevalence of problem gambling was lowest for those who gambled only once or twice a year (0.1%) and highest among those who gambled two or more times a week (4.5%). Table 5:7 Problem gambling prevalence according to either DSM-IV(^a) or PGSI(^b), by frequency of gambling participation(^c) \| Frequency of gambling participation \| Problem gambler According to either DSM-IV or PGSI \| Weighted base \| Unweighted base \| \|-----------------------------------\|-----------------------------------------------\|---------------\|----------------\| \| 2 or more times a week \| % \| 4.5 \| 1,047 \| 1,274 \| \| Once a week \| % \| 1.1 \| 2,175 \| 2,402 \| \| Less than once a week, more than once a month \| % \| 0.8 \| 800 \| 826 \| \| Once a month \| % \| 1.1 \| 928 \| 906 \| \| Every 2-3 months \| % \| 0.6 \| 1,058 \| 935 \| \| Once or twice a year \| % \| 0.1 \| 1,896 \| 1,736 \| Base: Past year gamblers aged 16 and over with a valid DSM-IV or PGSI score, England, Scotland and Wales (^a)DSM-IV: Diagnostic and Statistical Manual of Mental Disorders, fourth version (1994). A score of 3 or more is indicative of problem gambling. (^b)PGSI: Problem Gambling Severity Index. A score of 8 or more is indicative of problem gambling. A score of 3-7 is indicative of moderate risk gambling. A score of 1-2 is indicative of low risk gambling. (^c)Estimates are shown to one decimal place because of generally low problem gambling prevalence rates. Figure 5:5 Problem gambling prevalence according to either the DSM-IV(^a) or PGSI(^b), by frequency of gambling participation Base: Aged 16 and over with a valid DSM-IV or PGSI score, England, Scotland and Wales (^a)DSM-IV: Diagnostic and Statistical Manual of Mental Disorders, fourth version (1994). A score of 3 or more is indicative of problem gambling. (^b)PGSI: Problem Gambling Severity Index. A score of 8 or more is indicative of problem gambling. A score of 3-7 is indicative of moderate risk gambling. A score of 1-2 is indicative of low risk gambling. 5.4 Profile of problem gamblers This section examines whether problem gambling prevalence varies by various socio-demographic characteristics including ethnicity, economic activity, English region and country, and health indicators including GHQ-12, WEMWBS, and weekly alcohol consumption. A detailed outline of the survey measures used to collect data, scoring and thresholds employed for GHQ-12, WEMWBS and weekly alcohol consumption is provided in Chapter 2 of this report. 5.4.1 Problem gambling prevalence by socio-demographic characteristics Problem gambling prevalence according to either the DSM-IV or PGSI did not vary significantly for any of the socio-demographic characteristics except for economic activity. For economic activity, no full-time students were classified as problem gamblers. Rates of problem gambling were otherwise lowest among retired people (0.2%). The rate increased to 0.7% for those in paid work and 1.4% for those who are economically inactive but not students, unemployed or retired (for example, the long-term sick, carers and those looking after home or family). The highest prevalence of problem gambling was found among those who were unemployed (1.9%). Whilst problem gambling did not vary significantly by ethnicity in 2016, this may be due to the low number of problem gamblers from ethnic minority groups observed in the survey samples. When combining data collected in 2012, 2015 and 2016, problem gambling is associated with ethnicity. Across all three survey years, the proportion of problem gamblers tends to be higher among people from Black ethnic groups and among other minority groups (not covered by White, Black or Asian) than among those from Asian and White backgrounds. Table 5:8 Problem gambling prevalence according to either DSM-IV\\textsuperscript{a} or PGSI\\textsuperscript{b}, by socio-demographic characteristics\\textsuperscript{c} \| Socio-demographic characteristics \| Problem gambler According to either DSM-IV or PGSI \| Weighted base \| Unweighted base \| \|-----------------------------------\|---------------------------------------------------\|---------------\|-----------------\| \| Ethnic group\\textsuperscript{d} \| \| \| \| \| White \| % \| 0.6 \| 11,390 \| 9,850 \| \| Asian \| % \| 0.4 \| 926 \| 462 \| \| Black \| % \| 2.8 \| 415 \| 188 \| \| Other, including mixed \| % \| 1.2 \| 349 \| 191 \| \| Economic activity\\textsuperscript{e} \| \| \| \| \| In paid work \| % \| 0.7 \| 7,680 \| 5,527 \| \| In full-time education \| % \| - \| 763 \| 435 \| \| Retired \| % \| 0.2 \| 2,972 \| 2,747 \| \| Unemployed \| % \| 1.9 \| 707 \| 386 \| \| Other inactive \| % \| 1.4 \| 1,477 \| 1,188 \| \| English region \| \| \| \| \| North East \| % \| 1.1 \| 600 \| 598 \| \| North West \| % \| 0.5 \| 1,621 \| 937 \| \| Yorkshire and the Humber \| % \| 0.8 \| 1,220 \| 583 \| \| East Midlands \| % \| 0.7 \| 1,067 \| 610 \| \| West Midlands \| % \| 1.1 \| 1,294 \| 605 \| \| East of England \| % \| 0.6 \| 1,374 \| 798 \| \| London \| % \| 0.9 \| 1,933 \| 783 \| \| South East \| % \| 0.3 \| 2,022 \| 1,054 \| \| South West \| % \| 0.2 \| 1,260 \| 725 \| \| Country \| \| \| \| \| England \| % \| 0.7 \| 12,391 \| 6,693 \| \| Scotland \| % \| 0.9 \| 1,217 \| 3,598 \| \| Wales \| % \| 0.8 \| 706 \| 4,017 \| Base: Aged 16 and over with a valid DSM-IV or PGSI score, England, Scotland and Wales \\textsuperscript{a}DSM-IV: Diagnostic and Statistical Manual of Mental Disorders, fourth version (1994). A score of 3 or more is indicative of problem gambling. \\textsuperscript{b}PGSI: Problem Gambling Severity Index. A score of 8 or more is indicative of problem gambling. A score of 3-7 is indicative of moderate risk gambling. A score of 1-2 is indicative of low risk gambling. \\textsuperscript{c}Estimates are shown to one decimal place because of generally low problem gambling prevalence rates. \\textsuperscript{d}Estimates by ethnic group are based on England and Wales (comparable information was not available for Scotland). \\textsuperscript{e}Estimates by economic activity are based on England and Scotland (comparable information was not available for Wales). 5.4.2 Problem gambling prevalence by health indicators Table 5:9 presents problem gambling rates according to either the DSM-IV or the PGSI in England and Scotland by mental health (GHQ-12 score), well-being (WEMWBS score) and weekly alcohol consumption. No comparable data was available for Wales. The GHQ-12 is scored on a range from 0 to 12. The GHQ-12 scores have been demarcated into three categories; a score of 0 (indicating no evidence of probable mental ill health), 1 to 3 (indicating less than optimal mental health) and 4+ (indicating probable psychological disturbance or mental ill health). WEMWBS scores were aggregated into two groups, those in the lowest 10% of scores and the other well-being scores. Alcohol consumption is split into three categories, based upon the amount people drink; non-drinkers; drinking at a level indication a low risk of harm (up to and including 14 units per week) and drinking at a level indicating increased risk of harm (over 14 units per week). A more detailed outline of these measures can be found in Chapter 2 of this report. The proportion of problem gamblers varied with mental health as measured by GHQ-12. Unlike low risk and moderate risk gambling, the proportion of problem gamblers also varied with well-being as measured by WEMWBS but not with weekly alcohol consumption. Problem gambling prevalence was higher among those who scored 4 or more on the GHQ-12 indicating probable mental ill health (2.2%) than among those with a GHQ-12 score of 0 indicating no evidence of probable mental ill health (0.2%). Likewise, problem gambling was significantly more prevalent among those with a low well-being score (lowest 10% of scores on WEMWBS); 2.6%, compared with 0.5% among adults with a higher well-being score. Table 5:9 Problem gambling prevalence according to either DSM-IV(^a) or PGSI(^b), by health indicator(^c) \| Health indicators \| Problem gambler According to either DSM-IV or PGSI \| Weighted base \| Unweighted base \| \|------------------------------------\|----------------------------------------------------\|---------------\|-----------------\| \| GHQ-12 score(^d) \| \| \| \| \| No evidence of mental ill health \| % \| 0.2 \| 5,448 \| 5,724 \| \| Less than optimal mental health \| % \| 0.6 \| 2,758 \| 2,603 \| \| Probable mental ill health \| % \| 2.2 \| 1,846 \| 1,750 \| \| WEMWBS score(^e) \| \| \| \| \| Low well-being score \| % \| 2.6 \| 946 \| 970 \| \| Other well-being score \| % \| 0.5 \| 9,132 \| 9,124 \| \| Weekly alcohol consumption \| \| \| \| \| Non-drinker (0 units per week) \| % \| 0.3 \| 1,785 \| 1,732 \| \| Low risk (up to 14 units per week) \| % \| 0.7 \| 5,881 \| 5,997 \| \| Increased risk (over 14 units per week) \| % \| 0.8 \| 2,428 \| 2,415 \| Base: Aged 16 and over with a valid DSM-IV or PGSI score, England and Scotland (^a)DSM-IV: Diagnostic and Statistical Manual of Mental Disorders, fourth version (1994). A score of 3 or more is indicative of problem gambling. (^b)PGSI: Problem Gambling Severity Index. A score of 8 or more is indicative of problem gambling. A score of 3-7 is indicative of moderate risk gambling. A score of 1-2 is indicative of low risk gambling. (^c)Estimates are shown to one decimal place because of generally low problem gambling prevalence rates. (^d)A GHQ-12 score of 0 is indicative of no evidence of mental ill health, a score of 1-3 is indicative of less than optimal mental health, a score of 4+ is indicative of probable mental ill health. (^e)A ‘Low well-being score’ denotes the lowest 10% of scores on the Warwick-Edinburgh Mental Well-being Scale (WEMWBS). A ‘Other well-being score’ denotes all other scores on WEMWBS. Notes and references 1. Lesieur, H.R., Rosenthal, M.D. (1991). Pathological gambling: A review of the literature (prepared for the American Psychiatric Association Task Force on DSM-IV Committee on disorders of impulse control not elsewhere classified). Journal of Gambling Studies, 7 (1), 5-40. 2. American Psychiatric Association (1993). Diagnostic and statistical manual of mental disorders, 4th edition. Washington DC: American Psychiatric Association. 3. Ferris, J., Wynne, H. (2001). The Canadian Problem Gambling Index: Final Report. Canada: The Canadian Centre on Substance Abuse. 4. The HSE and SHeS were both planned and implemented prior to the formal publication of the DSM-V and therefore used the DSM-IV. This replicates the version used in the BGPS series. 5. This is with the exception of the ‘chasing losses’ item which is rated on a scale ranging between ‘never’ to ‘every time I lost’. See Appendix B for the full question wording. 6. Fisher, S.E. (1996). Gambling and problem gambling among casino patrons, Report to the British Casino Industry Consortium, Plymouth UK; National Gambling Impact Study Commission (NGISC) (US) 1999. Final Report. http://govinfo.library.unt.edu/ngisc/reports/fullrpt.html; Australian Productivity Commission (APC) (1999). Australia’s Gambling Industries. Report No. 10, Canberra: Ausinfo. 7. Clarke D., Abbott M., Tse S., Townsend S. (2006). Gender, Age, Ethnic and Occupational Associations with Pathological Gambling in a New Zealand Urban Sample. New Zealand Journal of Psychology, 35(2), 84-91. 8. Ferris, J., Wynne, H. (2001). The Canadian Problem Gambling Index: Final Report. Canada: The Canadian Centre on Substance Abuse. 9. Wynn, H. (2003). Introducing the Canadian Problem Gambling Index. Wynne Resources: Canada. More recently, some academics have recommended that a lower threshold be used to identify problem gamblers using the PGSI. However, this report maintains the original scoring so as to preserve comparisons with the BGPS series. Note that the sample only included adults living in private households meaning that people living in institutions, like students living in halls of residence, were excluded from the study. The in paid work group includes people who are in employment, self-employed or in government training. The other economically inactive group includes people not otherwise classifiable, for example the long-term sick, carers and those looking after home or family. Small sample sizes can affect the power of statistical significance tests and result in false positives (type I error) or false negatives (type II error). Table for combined prevalence figures available on request. 6 Themes and trends 6.1 Key themes For many people in Britain, gambling is a feature of everyday life. Over half of people in Britain gamble and those that do tend to gamble fairly regularly. This report highlights the latest insights into gambling behaviour in Britain. In some cases, previous patterns are confirmed. For example, those who are unemployed or from certain ethnic groups having higher rates of problem gambling despite being less likely to gamble overall, but new insights have also been highlighted. For the first time in the Health Survey series and the first time since 2010, this report includes information about how often people gamble. As Chapter 3 shows, the vast majority of past year gamblers are regular gamblers, with 62% gambling at least once a month and 40% gambling at least once a week. Frequency of gambling is highly associated with gambling problems, and the threshold for the increased experience of problems seems to be gambling more than once a week. Chapter 5 shows that 5% of those who gambled at least twice a week were problem gamblers compared with no more than 1% of those who gambled once a week or less often. The same pattern is true when looking at moderate risk gamblers, who experience lower levels of harms from gambling. Rates of moderate risk gambling increased from 2% among those who gambled once in the past week to 8% among those who gambled twice a week or more. This means that more than one in ten people who gambled twice a week or more were either problem or moderate risk gamblers. Because of this, it is important to understand who these very engaged gamblers are. Chapter 3 shows that they are almost twice as likely to be male than female or to be aged 45 and over than 16-24. This latter observation runs counter to prevailing wisdom that younger people are the most engaged with gambling. Those gambling at least twice a week are more likely to be from Black ethnic groups and are more likely to have low well-being scores. Those who are unemployed or from Asian groups are less likely to be frequent gamblers, but still experienced higher rates of problem gambling, underlining that gambling frequency alone is not sufficient to explain problem gambling among these groups. This report also includes a focus on well-being and mental health. It is increasingly recognised that gambling can have an adverse impact on health and well-being for individuals, families and communities. The newly proposed definition of gambling-related harms adopted for British policy explicitly recognises this, stating that gambling-related harms are the adverse impacts from gambling on the health and well-being of individuals, families, communities and society.¹ This report provides important insight on the relationship between well-being, mental ill health (as measured by the GHQ-12) and gambling behaviour. Those with the lowest levels of well-being or poorest mental health generally had similar levels of past year gambling participation to others and their frequency of gambling was also similar. Despite this, these groups were far more likely to experience problems with their gambling; prevalence of problem gambling was 2.5% among those with the lowest well-being compared with 0.5% for others and was 2.2% among those with probable mental ill health compared with 0.2% for those with no evidence of probable mental ill health. This suggests that those with low well-being and probable mental ill health should be considered specific vulnerable groups for the experience of gambling problems and further work is needed to unpick the nature of these associations. 6.2 Trends in gambling behaviours A key aim of this report was to assess change in behaviour over time. Table 6.1 shows trends between 2012 and 2016 in past year gambling participation in England and Scotland. As in 2015, there was a continued decline in past year gambling participation in 2016, largely driven by the continuing fall in popularity of the National Lottery draws in terms of the number of people playing; participation fell from 52% in 2012 to 46% in 2015 and then to 41% in 2016. For other activities, participation rates tended to be similar between 2012 and 2016. However, some activities bucked this trend, notably online gambling and specifically online betting, where past year rates of participation continued to grow. In 2012, 5% of adults in England and Scotland had bet online; in 2015 this rose to 7% and to 8% in 2016. As shown in Table 6.2, rates of problem gambling, moderate and low risk gambling have remained stable since 2012 with no statistically significant changes – meaning that whilst they are not increasing, neither are they decreasing. Much remains to be done if harms from gambling are to be reduced. ### Table 6.1 Trends in past year gambling participation in England and Scotland \| Gambling behavior \| Survey year \| 2012 \| 2015 \| 2016 \| \|-------------------\|-------------\|------\|------\|------\| \| Past year participation \| % \| % \| % \| \| Lotteries and related products \| \| \| \| \| \| National Lottery draws \| \| 52 \| 46 \| 41 \| \| Scratchcards \| \| 19 \| 22 \| 20 \| \| Other lotteries \| \| 14 \| 15 \| 14 \| \| Machines/games \| \| \| \| \| \| Football pools \| \| 3 \| 3 \| 3 \| \| Bingo (not online) \| \| 5 \| 6 \| 5 \| \| Slot machines \| \| 7 \| 7 \| 6 \| \| Machines in a bookmakers \| \| 3 \| 3 \| 3 \| \| Casino table games (not online) \| \| 3 \| 4 \| 3 \| \| Poker played in pubs or clubs \| \| 1 \| 1 \| 1 \| \| Online gambling on slots, casino or bingo games \| \| 3 \| 4 \| 3 \| \| Betting activities \| \| \| \| \| \| Online betting with a bookmaker \| \| 5 \| 7 \| 8 \| \| Betting exchange \| \| 1 \| 1 \| 1 \| \| Horse races (not online) \| \| 10 \| 11 \| 9 \| \| Dog races (not online) \| \| 3 \| 3 \| 2 \| \| Sports events (not online) \| \| 3 \| 3 \| 2 \| \| Other events (not online) \| \| 1 \| 2 \| 1 \| \| Spread betting \| \| 1 \| 1 \| 1 \| \| Private betting \| \| 5 \| 5 \| 4 \| \| Other gambling activity \| \| \| \| \| \| Any other gambling \| \| 2 \| 2 \| 1 \| \| Summaries \| \| \| \| \| \| Any gambling activity \| \| 65 \| 63 \| 57 \| \| Any gambling (excluding National Lottery draws only)(^a) \| \| 43 \| 45 \| 42 \| \| Any online gambling or betting(^b) \| \| 7 \| 10 \| 10 \| Base: Aged 16 and over, England and Scotland (^a)This category excludes gamblers who only participated in the National Lottery draws and not in any other gambling activities. (^b)This category includes gamblers who had participated in online gambling on slots, casino or bingo games, online betting with a bookmaker, or online betting using a betting exchange. ### Table 6:2 Trends in problem gambling in England and Scotland \| Gambling behavior \| Survey year \| 2012 \| 2015 \| 2016 \| \|-------------------\|-------------\|------\|------\|------\| \| \| \| % \| % \| % \| \| Problem gambling (all adults) \| \| \| \| \| \| DSM-IV<sup>a</sup> \| Non-problem gambler/non-gambler \| 99.5 \| 99.3 \| 99.4 \| \| \| Problem gambler \| 0.5 \| 0.7 \| 0.6 \| \| PGSI<sup>b</sup> \| Non-problem gambler/non-gambler \| 95.4 \| 95.5 \| 95.9 \| \| \| Low risk gambler \| 3.2 \| 2.8 \| 2.5 \| \| \| Moderate risk gambler \| 1.0 \| 1.1 \| 1.1 \| \| \| Problem gambler \| 0.4 \| 0.6 \| 0.5 \| \| \| Problem gambler according to either the DSM-IV or PGSI \| 0.6 \| 0.8 \| 0.7 \| \| Problem gambling among past year gamblers \| \| \| \| \| \| DSM-IV \| Non-problem gambler \| 99.3 \| 98.8 \| 98.9 \| \| \| Problem gambler \| 0.7 \| 1.2 \| 1.1 \| \| PGSI \| Non-problem gambler \| 92.7 \| 92.6 \| 92.7 \| \| \| Low risk gambler \| 5.0 \| 4.6 \| 4.4 \| \| \| Moderate risk gambler \| 1.6 \| 1.8 \| 2.0 \| \| \| Problem gambler \| 0.6 \| 1.0 \| 0.9 \| \| \| Problem gambler according to either the DSM-IV or PGSI \| 0.9 \| 1.4 \| 1.2 \| Base: Aged 16 and over with a valid DSM-IV or PGSI score, England and Scotland <sup>a</sup>DSM-IV: Diagnostic and Statistical Manual of Mental Disorders, fourth version (1994). A score of 3 or more is indicative of problem gambling. <sup>b</sup>PGSI: Problem Gambling Severity Index. A score of 8 or more is indicative of problem gambling. A score of 3-7 is indicative of moderate risk gambling. A score of 1-2 is indicative of low risk gambling. <sup>c</sup>Estimates are shown to one decimal place because of generally low problem gambling prevalence rates. ### Notes and references 1. Wardle et al (2018) Measuring gambling-related harm: a framework for action. Responsible Gambling Strategy Board (publication pending) 2. This section focuses on trends for England and Scotland only as data for Wales was not collected in 2012. Appendix A. Weighting Full details of the weighting strategies used for the HSE and SHeS individually can be found in their respective technical reports. The Wales Omnibus data uses quotas and weighting by age group within sex within Local Authority grouping to give each cell its correct incidence within the total Welsh population derived from the results of the 2011 Census. For analysis of the gambling data, some additional adjustments were applied to the standard survey weights in order to: - weight the data for non-response to both the gambling participation questions and the problem gambling screens; - scale the data so that it matched the population distribution of England, Scotland and Wales. Gambling participation weights The sub-sample of 14,765 respondents to the three surveys who answered at least one of the gambling participation questions was calibrated separately within each survey, so that the weighted distributions of age-by-gender and region (Government Office Regions (GOR) for the HSE, Health Board for the SHeS, local authority grouping for Wales) matched the ONS 2016 mid-year population estimates. For each eligible case, the combined weight was calculated by dividing the calibrated (grossed) weight by the overall mean. Problem gambling (DSM-IV and PGSI) weights The sub-sample of respondents who completed the problem gambling screens (DSM-IV: 14,306, PGSI: 14,277) was calibrated separately within each survey, so that the weighted distributions of age-by-gender and region (GOR for the HSE, Health Board for the SHeS, local authority grouping for Wales) matched the ONS 2016 mid-year population estimates for England and Scotland respectively. For each eligible case, the combined weight was calculated by dividing the calibrated (grossed) weight by the overall mean, separately for DSM-IV and PGSI. Notes and references 1 https://files.digital.nhs.uk/publication/m/3/hse2016-methods-text.pdf 2 https://beta.gov.scot/publications/scottish-health-survey-2016-volume-2-technical-report/documents/00525486.pdf?inline=true Appendix B. Scoring the problem gambling screening instruments Introduction Two screening instruments were used to identify problem gamblers: the DSM-IV and the PGSI. This section explains how each instrument was scored and the thresholds used to classify a problem gambler. Scoring the DSM-IV: dichotomous scoring The bulk of this report uses the dichotomous scoring system for the DSM-IV. The ten DSM-IV criteria are shown in Table B:1 below. The second column shows which response options were counted as positive and received a score of 1. \| Table B:1 DSM-IV items \| Response Options \| \|------------------------------------------------------------\|---------------------------------------\| \| Chasing losses \| Every time I lost/Most of the time I lost \| \| A preoccupation with gambling \| Fairly Often/Very Often \| \| A need to gambling with increasing amounts of money \| Fairly Often/Very Often \| \| Being restless or irritable when trying to stop gambling \| Fairly Often/Very Often \| \| Gambling as escapism \| Fairly Often/Very Often \| \| Lying to people to conceal the extent of gambling \| Fairly Often/Very Often \| \| Having tried but failed to cut back on gambling \| Fairly Often/Very Often \| \| Having committed a crime to finance gambling \| Occasionally/Fairly Often/Very Often \| \| Having risked or lost a relationship/job/educational \| Occasionally/Fairly Often/Very Often \| \| opportunity because of gambling \| \| \| Reliance on others to help in a financial crisis caused by \| Occasionally/Fairly Often/Very Often \| \| gambling \| \| This means that a DSM-IV score of between 0 and 10 is possible. The threshold for problem gambling was 3 or over, in line with previous research and the 2015, 2012, 2007 and 1999 gambling reports. Cases were excluded from the problem gambling analysis if more than half the DSM-IV items were missing (and the score was \<3). Twenty-three cases were excluded for this reason. Responses for five or more but not all ten DSM-IV items were available for 72 cases. These cases were included in the analysis. Scoring the PGSI The PGSI criteria are shown in Table B:2. \| Table B:2 \| PGSI items \| \|------------\|-----------------------------------------------------------------------------\| \| Bet more than can afford to lose \| A need to gamble with increasing amounts of money \| \| Chasing losses \| Borrowed money or sold items to get money to gamble \| \| Felt had a problem with gambling \| Gambling causing health problems including stress and anxiety \| \| People criticising gambling behaviour \| Gambling causing financial problems for you or your household \| \| Felt guilty about way that you gamble or what happens when you gamble \| All nine PGSI items have the following response codes: never, sometimes, most of the time, almost always. The response codes for each item are scored in the following way: - score 0 for each response of ‘never’; - score 1 for each response of ‘sometimes’; - score 2 for each ‘most of the time’; - score 3 for each ‘almost always’. This means a PSGI score of between 0 and 27 points is possible. There are four classifications categories for PGSI scores. Their description and scored cut-off points are shown in Table B:3. \| Table B:3 \| PGSI category \| \|------------\|---------------\| \| PGSI classification category \| PGSI score \| \| Non-problem gambler \| 0 \| \| Low risk gambler \| 1-2 \| \| Moderate risk gambler \| 3-7 \| \| Problem gambler \| 8+ \| The threshold for problem gambling was 8 or over, in line with previous research. Cases were excluded from the problem gambling analysis if more than half the PGSI items were missing (and the score was \<8). A total of six cases were excluded for this reason (these cases were also excluded from the DSM-IV analysis). Responses to five or more but not all nine PGSI items were available for 22 cases. These cases were included in the analysis. Notes and references 1 Wynne, H. (2003). Introducing the Canadian Problem Gambling Index, Canada http://www.gamblingresearch.org/download.sz/The%20CPGI%20V5%20-%20from%20Hal.pdf?docid=6446 Appendix C. Survey questions Qa Have you spent any money on any of the following activities in the last 12 months? Please tick ONE box for each activity. \| Activity \| Yes \| No \| \|--------------------------------------------------------------------------\|-----\|----\| \| Tickets for the National Lottery Draw, including Thunderball and Euromillions and tickets bought online \| 1 \| 2 \| \| Scratchcards (but not online or newspaper or magazine scratchcards) \| 1 \| 2 \| \| Tickets for any other lottery, including charity lotteries \| 1 \| 2 \| \| The football pools \| 1 \| 2 \| \| Bingo cards or tickets, including playing at a bingo hall (not online) \| 1 \| 2 \| \| Fruit or slot machines \| 1 \| 2 \| \| Virtual gaming machines in a bookmakers to bet on virtual roulette, poker, blackjack or other games \| 1 \| 2 \| \| Table games (roulette, cards or dice) in a casino \| 1 \| 2 \| \| Playing poker in a pub tournament/ league or at a club \| 1 \| 2 \| \| Online gambling like playing poker, bingo, instant win/scratchcard games, slot machine style games or casino games for money \| 1 \| 2 \| \| Activity \| Code 1 \| Code 2 \| \|-------------------------------------------------------------------------\|--------\|--------\| \| Online betting with a bookmaker on any event or sport \| \| \| \| Betting exchange \| \| \| \| This is where you lay or back bets against other people using a betting exchange. There is no bookmaker to determine the odds. This is sometimes called 'peer to peer' betting. \| \| \| \| Betting on horse races in a bookmakers, by phone or at the track \| \| \| \| Betting on dog races in a bookmakers, by phone or at the track \| \| \| \| Betting on sports events in a bookmakers, by phone or at the venue \| \| \| \| Betting on other events in a bookmakers, by phone or at the venue \| \| \| \| Spread-betting \| \| \| \| In spread-betting you bet that the outcome of an event will be higher or lower than the bookmaker's prediction. The amount you win or lose depends on how right or wrong you are. \| \| \| \| Private betting, playing cards or games for money with friends, family or colleagues \| \| \| \| Another form of gambling in the last 12 months \| \| \| IF YOU TICKED ‘YES’ FOR ANY OF THE ACTIVITIES AT Qa, PLEASE GO TO Qb OTHERWISE GO TO THE NEXT SECTION. For the next set of questions about gambling, please indicate the extent to which each one has applied to you in the last 12 months. In the last 12 months… Tick ONE box Every time I lost Qb When you gamble, how often do you go back another day to win back money you lost? 1 Most of the time 2 Some of the time (less than half the time I lost) 3 Never 4 Tick ONE box for each question Very often Qc Qd Qe Qf Qg Qh Qi Qj How often have you found yourself thinking about gambling (that is reliving past gambling experiences, planning the next time you will play, or thinking of ways to get money to gamble)? Fairly often Occasionally Never 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 Have you lied to family, or others, to hide the extent of your gambling? 1 2 3 4 Have you made unsuccessful attempts to control, cut back or stop gambling? 1 2 3 4 Have you committed a crime in order to finance gambling or to pay gambling debts? 1 2 3 4 Have you risked or lost an important relationship, job, educational or work opportunity because of gambling? 1 2 3 4 Have you needed to gamble with more and more money to get the excitement you are looking for? Have you felt restless or irritable when trying to cut down gambling? Have you gambled to escape from problems or when you are feeling depressed, anxious or bad about yourself? NatCen Social Research \| Gambling behaviour in Great Britain in 2016 91 \| Question \| Description \| Almost always \| Most of the time \| Sometimes \| Never \| \|----------\|-------------\|---------------\|------------------\|-----------\|-------\| \| Qk \| Have you asked others to provide money to help with a desperate financial situation caused by gambling? \| 1 \| 2 \| 3 \| 4 \| \| Ql \| ...have you bet more than you could really afford to lose? \| 1 \| 2 \| 3 \| 4 \| \| Qm \| ...have you needed to gamble with larger amounts of money to get the same excitement? \| 1 \| 2 \| 3 \| 4 \| \| Qn \| ...have you gone back to try to win back the money you’d lost? \| 1 \| 2 \| 3 \| 4 \| \| Qo \| ...have you borrowed money or sold anything to get money to gamble? \| 1 \| 2 \| 3 \| 4 \| \| Qp \| ...have you felt that you might have a problem with gambling? \| 1 \| 2 \| 3 \| 4 \| \| Qq \| ...have you felt that gambling has caused you any health problems, including stress or anxiety? \| 1 \| 2 \| 3 \| 4 \| \| Qr \| ...have people criticised your betting, or told you that you have a gambling problem, whether or not you thought it is true? \| 1 \| 2 \| 3 \| 4 \| \| Qs \| ...have you felt your gambling has caused financial problems for you or your household? \| 1 \| 2 \| 3 \| 4 \| \| Qt \| ...have you felt guilty about the way you gamble or what happens when you gamble? \| 1 \| 2 \| 3 \| 4 \|	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/2884-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 99, "total-input-tokens": 263428, "total-output-tokens": 64571, "total-fallback-pages": 1 }	{ "pdf_page_numbers": [ [ 0, 227, 1 ], [ 227, 706, 2 ], [ 706, 4008, 3 ], [ 4008, 10036, 4 ], [ 10036, 14571, 5 ], [ 14571, 16516, 6 ], [ 16516, 19236, 7 ], [ 19236, 22147, 8 ], [ 22147, 25347, 9 ], [ 25347, 26747, 10 ], [ 26747, 29851, 11 ], [ 29851, 33129, 12 ], [ 33129, 36783, 13 ], [ 36783, 39616, 14 ], [ 39616, 41028, 15 ], [ 41028, 41819, 16 ], [ 41819, 44068, 17 ], [ 44068, 44931, 18 ], [ 44931, 48005, 19 ], [ 48005, 50083, 20 ], [ 50083, 53206, 21 ], [ 53206, 55386, 22 ], [ 55386, 59960, 23 ], [ 59960, 65351, 24 ], [ 65351, 67791, 25 ], [ 67791, 72534, 26 ], [ 72534, 75706, 27 ], [ 75706, 80875, 28 ], [ 80875, 84065, 29 ], [ 84065, 87570, 30 ], [ 87570, 94546, 31 ], [ 94546, 97466, 32 ], [ 97466, 99536, 33 ], [ 99536, 104798, 34 ], [ 104798, 106910, 35 ], [ 106910, 108680, 36 ], [ 108680, 113558, 37 ], [ 113558, 115936, 38 ], [ 115936, 117495, 39 ], [ 117495, 123112, 40 ], [ 123112, 124082, 41 ], [ 124082, 124750, 42 ], [ 124750, 127136, 43 ], [ 127136, 127588, 44 ], [ 127588, 130984, 45 ], [ 130984, 134633, 46 ], [ 134633, 136716, 47 ], [ 136716, 138904, 48 ], [ 138904, 140869, 49 ], [ 140869, 142774, 50 ], [ 142774, 145789, 51 ], [ 145789, 148790, 52 ], [ 148790, 149964, 53 ], [ 149964, 150698, 54 ], [ 150698, 153072, 55 ], [ 153072, 155036, 56 ], [ 155036, 158170, 57 ], [ 158170, 158938, 58 ], [ 158938, 161444, 59 ], [ 161444, 162338, 60 ], [ 162338, 167980, 61 ], [ 167980, 170491, 62 ], [ 170491, 171509, 63 ], [ 171509, 173377, 64 ], [ 173377, 174879, 65 ], [ 174879, 179835, 66 ], [ 179835, 182293, 67 ], [ 182293, 186202, 68 ], [ 186202, 187134, 69 ], [ 187134, 189360, 70 ], [ 189360, 191277, 71 ], [ 191277, 193559, 72 ], [ 193559, 194668, 73 ], [ 194668, 197495, 74 ], [ 197495, 198625, 75 ], [ 198625, 201044, 76 ], [ 201044, 202671, 77 ], [ 202671, 203940, 78 ], [ 203940, 209817, 79 ], [ 209817, 211716, 80 ], [ 211716, 212436, 81 ], [ 212436, 215301, 82 ], [ 215301, 217034, 83 ], [ 217034, 221799, 84 ], [ 221799, 223574, 85 ], [ 223574, 228178, 86 ], [ 228178, 229078, 87 ], [ 229078, 232554, 88 ], [ 232554, 233860, 89 ], [ 233860, 235615, 90 ], [ 235615, 237812, 91 ], [ 237812, 239882, 92 ], [ 239882, 242379, 93 ], [ 242379, 244449, 94 ], [ 244449, 245773, 95 ], [ 245773, 247229, 96 ], [ 247229, 248780, 97 ], [ 248780, 250087, 98 ], [ 250087, 250087, 99 ] ] }
dfad69ab25efde0c829be7722ebbd0fa9f7734ce	2019 GENDER PAY GAP REPORT Since 5 April 2017 UK companies employing more than 250 employees are required to publish their gender pay gap. Gender pay shows the difference in average pay between all men and women in an organisation. Our results This year our mean (average) gender pay gap is 6.2% and our median (middle) gender pay gap is 4.3%. This is a reduction on last year and it is below the figure for many other organisations in the public sector. We understand that achieving gender pay equality is an ongoing commitment. We believe in equal opportunities for everyone regardless of gender and recognise that any gender pay gap requires improvement. In our case we need to achieve a better balance between women and men in the Commission’s lower pay quartile. Pay & Bonus Gap \| Year \| Gender Pay Gap \| 2019 \| 2018 \| \|------\|----------------\|------\|------\| \| Mean \| is 6.2% \| 6.2% \| 9.3% \| \| Median\| is 4.3% \| 4.3% \| 7.8% \| \| Mean Bonus\| is 3.3% \| 3.3% \| N/A (see below) \| \| Median Bonus\| is 0.0% \| 0.0% \| N/A (see below) \| It is worth noting that the bonus payment for this reporting year was based on a fixed amount for all employees (pro-rata for those on part-time hours): - A mean annual male bonus of £444.84 - A mean annual female bonus of £430.32 - Or an absolute difference of £14.52 We did not report on bonus payments last year, due to the payment date falling outside of the reporting period, so there are no comparators for these 2019 mean male hourly rate of £20.99 2018 mean male hourly rate of £20.02 2019 mean female hourly rate of £19.69 2018 mean female hourly rate of £18.15 There is a lesser gap in our upper quartile reporting due to an increase in females at a senior level. However, looking at the actual pay quartiles it is evident that there is ongoing work to do to address the gap in the lower quartile. Read last year's gender pay gap report. What's next? We are working towards closing the gender pay gap in the organisation. We'll develop a Reward Strategy, so that we can continue to develop our pay and reward framework, to ensure our offer is fair, understood and the best we can achieve. Our aspiration is to build a diverse and gender balanced workforce ensuring that our colleagues can be their best selves at work. As an organisation we are committed to addressing gender representation and supporting women in the workplace. Neil McArthur CEO Vic Beaumont Chief People Officer	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/2885-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 2, "total-input-tokens": 4005, "total-output-tokens": 729, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 1474, 1 ], [ 1474, 2454, 2 ] ] }
d2f10f1a80d156f26c083565b8085f240ac86f06	Gambling participation in 2019: behaviour, awareness and attitudes Annual report (updated publication)\* February 2020 - Updated publication 04/11/20: This publication corrects some minor errors which affected the number of online accounts figures shown in Figures 16 and 17. The superseded version is available to review in the Research Library. ## Contents \| Section \| Page \| \|----------------------------------------------\|------\| \| Headline findings \| 3 \| \| Infographics \| 4 \| \| Executive summary \| 5 \| \| Preface \| 7 \| \| Gambling participation \| 8 \| \| • How many people gamble \| 8 \| \| • What people gamble on \| 10 \| \| • How people gamble \| 12 \| \| • How often people gamble \| 13 \| \| Problem and at-risk gambling \| 14 \| \| • Health survey estimates (Health Survey England, 2018) \| 14 \| \| • Quarterly telephone survey estimates \| 14 \| \| Online gambling behaviour \| 15 \| \| • Devices used \| 15 \| \| • Location of online gambling \| 17 \| \| • In-play betting \| 18 \| \| • Number of accounts \| 18 \| \| • eSports \| 20 \| \| Consumer analysis \| 21 \| \| • Self-exclusion and gambling management tools \| 21 \| \| • Information to players \| 24 \| \| • Terms and conditions \| 26 \| \| • Complaints \| 27 \| \| • Social media and advertising \| 28 \| \| • Social gaming \| 33 \| \| Perceptions and attitudes \| 36 \| \| • Perceptions \| 36 \| \| • Attitudes towards gambling \| 37 \| \| • Public opinion on gambling policy \| 38 \| \| Appendix – methodology \| 41 \| \| • Gambling participation \| 41 \| \| • Problem and at-risk gambling \| 42 \| \| • Full PGSI and DSM-IV screens \| 42 \| \| • Online gambling behaviour \| 43 \| Headline findings 47% Percentage of respondents who have participated in any form of gambling in the past four weeks (46% in year to December 2018) 0.5% Proportion of respondents who were classified as problem gamblers (those who gamble with negative consequences and a possible loss of control) According to the full PGSI or DSM-IV screen in 2018 (England) 32% Percentage of respondents who have participated in gambling in the past four weeks, excluding those who have only played the National Lottery draws (32% in year to December 2018) 15% Proportion of online gamblers gambling in the workplace in the past four weeks (12% in year to December 2018) 21% Percentage of respondents who have gambled online in the past four weeks (18% in year to December 2018) 51% Proportion of respondents who have seen a gambling advert on the television in the last week (54% in year to December 2018) 56% Percentage of online gamblers (with an account) who held more than one online gambling account (54% in year to December 2018) 29% Proportion of respondents who think that gambling is fair and can be trusted (30% in year to December 2018) 43% Proportion of respondents who think that gambling is associated with crime (38% in year to December 2018) 50% Proportion of online gamblers who have gambled using a mobile phone in the past four weeks (44% in year to December 2018) 65% Proportion of gamblers who have read terms and conditions and found them to be helpful (61% in year to December 2018) Indicates a significant increase at the 95% confidence level Indicates non-significant findings (tested at the 95% confidence level) Indicates a significant decrease at the 95% confidence level Gambling participation in 2019: behaviour, awareness and attitudes Data source: Gambling Commission Telephone Survey & Online Tracker, administered by Populus. Telephone Survey (n=4,003 adults aged 16+), Online Tracker (n= 8,341 adults aged 18+). Both surveys were administered quarterly in March, June, September & December 2019. Gambling participation - 47% have gambled on any activity in the past four weeks - 21% have gambled on any activity online in the past four weeks - 51% of past four week gamblers gamble at least once a week Online gambling behaviour - 50% of online gamblers had used a mobile to gamble in the past four weeks - 6% have ever bet on eSports (using money or items) - 15% gambled in the workplace in the past 4 weeks - Online gamblers have an average of 3 online accounts - 56% have more than one online account Terms and conditions - 1 in 5 gamblers have read terms and conditions - 65% of which found them helpful Marketing and advertising - 87% of respondents have ever seen/heard any gambling advertisements or sponsorships - 51% of respondents have seen a gambling advert on the television in the last week - 44% of online gamblers have been prompted to spend money on gambling by seeing advertisements - 29% of online gamblers have been prompted to spend money on gambling by free bets and bonuses Perceptions and attitudes - 29% think that gambling is conducted fairly and can be trusted - 43% think that gambling is associated with crime - News on TV was most likely to inform respondent’s opinions around gambling (40%) Executive summary Background and context This report provides an overview of consumer gambling behaviour in Great Britain in 2019, based on quarterly telephone and online tracking surveys conducted by Populus on behalf of the Gambling Commission. The report includes data on participation in gambling activities in the past four weeks, online gambling behaviour, awareness of gambling management tools and perceptions and attitudes towards gambling. The report also includes data on the prevalence of problem, moderate-risk and low-risk gambling. This data is taken from a separate source, the NHS Digital Health Survey for England (2018), due to its use of the full PGSI (Problem Gambling Severity Index) and DSM-IV screens. Details on the survey methodologies used can be found in the Appendix. Survey findings Gambling participation Our research found that overall, gambling participation has remained stable compared to 2018 with 47% of respondents aged 16+ having participated in at least one form of gambling in the past four weeks in 2019 (46% in 2018). By age, the highest level of gambling participation was found among the 45-54 age group (53%) however, if those who only participated in NL draws are excluded, those in the age group 25-34 had the highest participation level (41%). Amongst respondents: - The National Lottery draws remain the most popular gambling activity, followed by other lotteries and scratchcards. - Football and horse racing are the most popular betting activities. - Over half of past four week gamblers (51%) gamble at least once a week. - 21% of all respondents have gambled online in the past four weeks, a significant increase since 2018. Problem gambling estimates The latest data from the NHS Digital Health Survey for England 2018 shows that the prevalence of problem gambling (according to the PGSI or DSM-IV screen) was 0.5%. By comparison, the Commission’s regular telephone survey (2019), which uses the PGSI mini-screen observed a problem gambling rate of 0.6% for Great Britain, however we recommend the use of the figures taken from the NHS Digital Health Survey England due to its robustness and use of the full PGSI and DSM-IV screens. Online gambling behaviour Mobile phones remain the most popular method of gambling online in 2019. Among online gamblers, mobile phone use for gambling significantly increased (50%, an increase of 6 percentage points from 2018), whilst laptop use significantly declined (38%, a 6 percentage point decrease from 2018). Those who gamble on mobile phones were typically in the younger age groups, with 76% of 18-24 year olds, 72% of 25-34 year olds and 66% of 35-44 year olds who gamble online, using a mobile to gamble in the previous four weeks. This contrasts with 14% of those aged 65+. ______________________________________________________________________ 1 Details on the PGSI and DSM-IV screens are available in the Appendix 2 Data for Wales 2018 is not currently available, although will be released in 2020. Gambling questions were not included on the Health Survey for Scotland in 2018, so data will not be available for this year. 3 Details on the PGSI mini-screen can be found at http://www.gamblingcommission.gov.uk/PDF/survey-data/Developing-a-Short-Form-of-the-PGSI.pdf Typically, online gamblers play at home (95%), however, there has been an increase in the proportion of online gamblers gambling in the workplace (15%, a 3 percentage point increase). On average, online gamblers have three accounts with online gambling operators and 21% have bet in-play in the last 4 weeks. Over half (56%) of online gamblers (with an account) held more than one online gambling account, and 20% of those aged 18-24 had five or more online accounts. In terms of eSports, 6% of all respondents have ever bet on eSports (money or items), with participation rates highest among 18-24 and 25-34 year olds. Consumer analysis Overall, 47% of gamblers were aware of the self-exclusion facility, a significant 12 percentage point increase over a five year period (35% in 2015). One in five gamblers (20%) have read terms and conditions, of which 26% felt they had been in a situation where the terms and conditions of an operator had been unfair. 65% of those who had read terms and conditions reported finding them helpful, which is a significant increase on the previous year (61% in Year to December 2018). Overall, 7% of gamblers have ever made a complaint to or about a gambling operator, with rates highest among 18-24 year olds (12%) and 25-34 year olds (11%). In terms of social media and advertising: - 23% of online gamblers follow a gambling company on a social media platform with rates highest among 18-24 year olds. - Facebook remains the most popular social media platform on which online gamblers follow gambling companies. - 51% of respondents have seen a gambling advert on the television in the past week, a significant decline on 2018. - 44% of online gamblers were prompted to spend money on a gambling activity due to adverts that they saw. - 52% of online gamblers (with a social media account) were prompted to spend money on a gambling activity due to adverts they had seen on a social media platform. In total, 29% of online gamblers had ever participated in online gambling style games. Over a five year period, there has been a significant increase in the proportion of respondents playing slot or fruit machine games. Perceptions and attitudes Overall, 29% of respondents think that gambling is conducted fairly and can be trusted. Whilst the figure is stable since 2018, it does represent a significant decline over the past 10 years. In total, 43% think that gambling is associated with criminal activity (a significant decline since 2018). Gambling addicts stealing to carry on gambling was the crime that respondents associate the most with gambling. In addition, 82% of respondents think there are too many opportunities for gambling nowadays and 73% think that gambling is dangerous for family life, however, 60% of respondents think that people should have the right to gamble whenever they want. Having the best odds and the reputation of a company for being fair and trustworthy were the top factors that were important for to gamblers when first selecting an operator to gamble with. ______________________________________________________________________ - eSports (Electronic Sports) are the competitive playing of video games Preface The Gambling Commission The Gambling Commission (the Commission) was set up under the Gambling Act 2005 (the Act) to regulate commercial gambling in Great Britain in partnership with licensing authorities. We also regulate the National Lottery under the National Lottery etc. Act 1993. Further details can be found on our website. Methodology This report summarises data collected by the Commission during 2019 and covers gambling participation and consumer behaviour. The data has been gathered via a combination of telephone and online surveys, as indicated in the table below and throughout this report. In addition, the report also draws upon data from the Health Survey England from 2018. \| Topic area \| Survey \| \|------------------------------------------------\|-------------------------------\| \| Gambling participation - Perceptions of and attitudes towards gambling \| Telephone (2019) \| \| Online gambling behaviour – Consumer interest and awareness \| Online (2019) \| \| Problem gambling, moderate-risk and low-risk rates \| Health Survey England (2018) \| Telephone survey The telephone survey provides the Commission’s main measure of past four week gambling participation, with waves conducted on a quarterly basis in March, June, September and December of each year. Approximately 1,000 interviews are conducted each quarter with people aged 16+ in a standalone survey administered by Populus. The sample used is nationally representative of the population of Great Britain and the findings presented in this report are weighted in terms of demographic and socio-economic indicators. The data reported in this publication cover the year to December 2019, with trend data taken from the same period in the four years previous. Further details can be found in the Appendix. Online survey The online survey is used to monitor online gambling behaviour and was launched following the introduction of regulation of overseas gambling companies transacting with GB customers (in line with the Gambling (Licensing and Advertising) Act 2014). The surveys are conducted quarterly in March, June, September and December by Populus. Approximately 2,000 interviews with people aged 18+ are collected each quarter and the survey sample is drawn from Populus online panel members. Once again, the data reported are weighted in terms of demographic and socio-economic indicators and are calculated using all four quarters of data covering the year to December 2019, with trend data taken from the same period in previous years. Further details can be found in the Appendix. Health Survey England The Health Survey England is commissioned by NHS Digital, and the Commission includes questions on gambling participation and rates of problem gambling within the survey. The Health Survey England data included within this report relates to 2018 in which the survey interviewed over 8,000 adults aged 16+. Report conventions - Year on year (2018-2019) trends displaying percentage point changes are significant at the 95% confidence level (unless otherwise stated). Where results are described as stable, there is not a significant difference from the previous year at the 95% confidence level. - Within each chart title, the source survey and the unweighted sample size is included (the number of respondents to each question during 2019). - For the telephone and online surveys, significance testing has been applied on the basis of quota samples and should therefore be viewed with some caution. Where statistical significance has been noted, this is on the basis that it would be significant, if the data were generated from a probability sample. Further information on use of quota samples can be found on the UK Statistics Authority website. - Figures on each chart/graph may not add to 100% due to rounding. 5 The Health Survey England is commissioned by NHS Digital. For further detail on the methodology please visit https://digital.nhs.uk/data-and-information/publications/statistical/health-survey-for-england/2018 Gambling participation This section reports on gambling participation in the year to December 2019, using data collected via the Gambling Commission’s quarterly telephone survey, which is conducted with people in Great Britain aged 16+. These questions ask respondents about their gambling participation in the past four weeks. How many people gamble Overall, 47% of adults (16+) said they had participated in at least one form of gambling in the previous four weeks. As Figure 1 shows, a larger proportion of men (51%) have participated in any form of gambling than women (43%). The age groups most likely to have participated in gambling were those aged between either 45-54 or 35-44, with 53% of 45-54 year olds and 50% of 35-44 year olds having gambled in the past four weeks. Similar to the previous year, those in the youngest and oldest age groups had the lowest gambling participation levels. During the last 12 months, significant changes were seen in the participation rate of 35-44 year olds (50%; a 6 percentage point increase from 2018) and of the 55-64 age group (48%; a 7 percentage point decrease from 2018). As participation in National Lottery draws is so much higher than for other gambling activities (see Figure 5), changes in National Lottery participation can have a noticeable impact on overall participation rates. Figure 2 shows that when looking at only those who had gambled on at least one activity in the previous four weeks, 31% had only gambled on National Lottery draws. It is therefore useful to remove the responses of those who have only participated in National Lottery draws to highlight patterns across age and gender groups. ______________________________________________________________________ 6 In March 2016 the sample was broadened to include participants aged 16+. Figure 2 shows that those in the older age categories (45+) were most likely to participate in only National Lottery draws. This contrasts with gamblers aged 16-24, of which 6% were participating in only National Lottery draws. Figure 3 shows that when National Lottery draw only respondents are excluded, the overall participation rate falls from 47% to 32%. Since 2015, the proportion of respondents gambling on any activity (excluding National Lottery draws) has increased by 5 percentage points. Males were more likely than females to gamble (36% compared to 30%) and 16-34 age groups were more likely to gamble than other age groups. Overall, 21% of adults have gambled online in the previous four weeks, which is a 3 percentage point increase since 2018 and a 6 percentage point increase since 2015 (both significant increases). Online participation was higher among men (25%) than women (17%). There have been increases in online gambling participation amongst both males and females, though this is only significant amongst females (17%; a 2 percentage point increase from 2018). There has been a significant increase in those aged 16-24 (17%, a 5 percentage point increase) and 35-44 (28%, a 6 percentage point increase) gambling online. What people gamble on In 2019, the most popular gambling activities were National Lottery draws (30%), followed by other lotteries (13%) and scratchcards (10%). Until 2017, there had been a continued decline in participation in National Lottery draws. This coincided with, amongst other factors, the increase in the Lotto ticket price from £1 to £2 in October 2013 and the increase in the number of Lotto balls in October 2015. However, National Lottery draws show signs of recovery with a 2 percentage point increase in participation since 2018. Other than National Lottery draws, there have been significant changes in participation rates for numerous activities. These include increases in participation in other lotteries (13%, a 2 percentage point increase from 2018) and fruit or slot machines in bingo halls (0.5%; a 0.3 percentage point increase). There have also been declines in participation for machines in a bookmakers, which are otherwise known as Fixed Odds Betting Terminals (FOBTs) (0.8%; a 0.7 percentage point decrease from 2018). This may in part be due to the FOBT maximum stake cut from £100 to £2, which was introduced on 1st April 2019. There has also been an increase in participation in online slot machine-style games and instant wins7 (3.1%; a 1.9 percentage point increase from 2018). ______________________________________________________________________ 7 In December 2017 this option was expanded, with separate options for National Lottery online instant wins and other instant wins. Participation is reported by the new categories and has been combined to continue the existing trend. Data shown within Table 1 is reported to one decimal place due to the presence of small percentages. A new National Lottery draw, Set for Life, was introduced in March 2019. Participation rates are not currently included due to 12 months’ worth of data not being available. Betting activities includes betting on horse races, betting on dog races, betting on football, betting on tennis, betting on other sports events, betting on other events, betting on the outcome of lotteries, and betting on political events. Survey changes in 2016 extended the data collection for different types of betting activities, with ‘betting on other events’, broadened to capture rates of betting on the outcome of lotteries and betting on political events. In terms of the individual National Lottery draws, the most popular games in 2019 were Lotto (played by 21% of all respondents) and EuroMillions, played by 20% of all respondents. Overall, 10% of all respondents had participated in any betting activity in the previous four weeks. The most popular betting activity in 2019 was football (5.8%), followed by horse races (4.0%) and other sports (2.7%)11, as can be observed in Figure 7. ______________________________________________________________________ 8 Data shown within Table 1 is reported to one decimal place due to the presence of small percentages. 9 A new National Lottery draw, Set for Life, was introduced in March 2019. Participation rates are not currently included due to 12 months’ worth of data not being available. 10 Betting activities includes betting on horse races, betting on dog races, betting on football, betting on tennis, betting on other sports events, betting on other events, betting on the outcome of lotteries, and betting on political events. 11 Survey changes in 2016 extended the data collection for different types of betting activities, with ‘betting on other events’, broadened to capture rates of betting on the outcome of lotteries and betting on political events. How people gamble For each activity undertaken that can be accessed through different methods, respondents are asked whether they participated in person only, online only, or both in person and online. Table 2 displays in person and online participation in the previous four weeks by those activities that can be accessed through multiple methods. The table shows that individuals playing bingo (81%) and National Lottery draws (73%) were most likely to participate in these activities in person. There has, however, been an increase in gamblers choosing to participate in National Lottery draws online (36%; a 5 percentage point increase from 2018). Those participating in football betting (83%), other sports betting (80%), and sports betting overall (81%) were most likely to have participated in these activities online. Table 2: Online & in person participation in the past four weeks by activity (Telephone Survey; n=4,003) \| Year to December 2019 \| National Lottery draws \| Another lottery \| Bingo \| Football pools \| Horse races \| Sports betting \| Football betting \| Other sports betting \| Betting on other events \| Casino games \| \|-----------------------\|------------------------\|----------------\|-------\|----------------\|-------------\|----------------\|------------------\|----------------------\|------------------------\|--------------\| \| Online \| % 36% \| 50% \| 24% \| 55% \| 61% \| 81% \| 83% \| 80% \| 58% \| 74% \| \| In person \| % 73% \| 53% \| 81% \| 50% \| 49% \| 27% \| 26% \| 22% \| 53% \| 47% \| Since 2018, there has been an increase in the proportion of individuals betting on sports online (81%; a 9 percentage point increase from 2018), and a decrease in in person participation (27%; a 13 percentage point decrease from 2018). Similar findings have also been observed amongst those betting on football: an increase in online participation (83%; a 16 percentage point increase) and a decrease in in person participation (26%; a 13 percentage point decrease). A decrease for in person participation has been seen for betting on horse races (49%; a 15 percentage point decrease). ______________________________________________________________________ 12 Products with small base sizes (< 30) are not included in the chart. Other base sizes can be found in the technical annex accompanying this report. Data shown within Figure 7 is reported to one decimal place due to the presence of small percentages. 13 Table 2 below includes respondents who have participated both in person and online, therefore combined percentages may add up to more than 100%. 14 Individual bases vary depending on participation for each activity. Individual bases can be found in the accompanying ‘Survey data on gambling participation’ document. How often people gamble For each activity undertaken in the past four weeks, respondents are asked how often they spend money on that activity. The data displayed below shows overall highest frequency of play when all activities have been taken into account. Figure 8 shows the highest frequency of gambling on any individual activity (among those who have gambled on each activity in the past four weeks) was most commonly once a month, less than once a week (33%), followed by once a week (31%). Since 2015, there has been a steady decline in the number of respondents saying once a week and an increase in the number of people saying once a month but less than once a week. Meanwhile, 20% gamble on any individual activity two or more days a week, and 16% gamble less than once a month. Figure 8: Most common frequency of gambling on any activity (Telephone Survey; n=1,860) Problem and at-risk gambling Problem gambling is defined as behaviour related to gambling which causes harm to the gambler and those around them\\textsuperscript{15}. This may include family, friends and others who know them or care for them. This section presents the official statistics on the prevalence of problem gambling, taken from the Health Survey England 2018, conducted by NHS Digital and released in December 2019. This is the only survey in England where both the full PGSI screen and the DSM-IV are used as the main measures of problem gambling. Data for Wales 2018 is not currently available, although will be released in 2020. Gambling questions were not included on the Health Survey for Scotland in 2018, so data will not be available for this year. In addition, the Commission also tracks problem gambling data using its telephone survey, which acts as a more regular and up to date measure for identifying any changes in problem gambling trends. The telephone survey uses a short-form Problem Gambling Severity Index\\textsuperscript{16} (PGSI mini-screen), which is formed of three questions instead of the full nine. Respondents are then categorised by their total score as either a problem gambler, moderate-risk gambler, low-risk gambler, or non-problem gambler. Telephone survey data on problem gambling is also included below. The Health Survey provides the Commission’s most robust estimates of problem and at-risk gambling due to the use of a high quality random probability sampling approach, a large sample size and the availability of both PGSI and DSM-IV screens. This section of the report therefore presents the main measure of problem gambling rates. Health Survey estimates According to the latest Health Survey figures (England 2018), 2.7% of adults were considered low-risk gamblers, and a further 0.8% were classed as moderate-risk gamblers. By low-risk, we mean gamblers who experience a low level of problems with few or no identified negative consequences. For moderate-risk we mean gamblers who experience a moderate level of problems leading to some negative consequences. The data shows that 0.5% of respondents were classified as problem gamblers (gamblers who gamble with negative consequences and a possible loss of control). This is stable compared to the 2016 England figure (0.7%). Figure 9: Low-risk, moderate-risk and problem gamblers in England 2018 (according to the DSM-IV or PGSI) (NHS Digital, 2019; n=6,927) \| Low-risk gambling (according to the full PGSI) \| Moderate-risk gambling (according to the full PGSI) \| Problem gamblers (according to the full PGSI or DSM-IV) \| \|-----------------------------------------------\|---------------------------------------------------\|------------------------------------------------------\| \| 2.7% \| 0.8% \| 0.5% \| Quarterly telephone survey estimates The Commission’s regular telephone survey, which uses the PGSI mini-screen reported the low-risk rate to be 2.7% and the moderate-risk rate to be 1.2%. The problem gambling rate was 0.6%, however, as noted above, the Health Surveys should be considered the most robust source of statistics on problem and at-risk gambling. Table 3: Low-risk, moderate-risk and problem gamblers (according to the PGSI mini-screen) (Telephone Survey; n=4,003) \| Low-risk, moderate-risk and problem gamblers (according to the PGSI mini-screen) (2019) \| Year to December 2019 (%) \| \|----------------------------------------------------------------------------------------\|---------------------------\| \| All respondents (n=4,003) \| \| \| Low-risk \| 2.7 \| \| Moderate-risk \| 1.2 \| \| Problem gambler \| 0.6 \| \\textsuperscript{15} Gamble Aware (https://www.begambleaware.org/gambling-problems/). \\textsuperscript{16} Developing a Short Form of the PGSI (Volberg, 2012). Online gambling behaviour This section reports data on online gambling behaviour in the year to December 2019, using data collected via the Commission’s quarterly online survey conducted by Populus. Surveys are conducted with people in Great Britain aged 18+. The core questions in the survey ask online gamblers about how and where they gamble online. Devices used Once online gamblers have been identified in the survey (using questions covering past four week gambling participation by activity, followed by mode of play), they are asked which devices they use to gamble online17. As of 2019, mobile phones have now become the most popular method of accessing online gambling, with 50% of all online gamblers doing so. This is a statistically significant increase of 6 percentage points from the 44% recorded in 2018 and represents a continuation of a trend of increasing mobile use for gambling in recent years. Younger age groups were more likely to have gambled online on a mobile phone, with 76% of 18-24 year olds, and 72% of 25-34 year olds having done so. This compares to 14% of those aged 65+. There have been increases in gambling via mobile in all age groups, with the exception of the 25-34 age category. It can be observed that a larger proportion of males had gambled using mobiles (56%) than females (44%). There have been declines in the use of laptops for gambling (38%; a 6 percentage point decrease from 2018), which may in part be off-setting the increase in mobile participation. There have also been decreases in the use of Smart TVs for gambling (2%; a 1 percentage point decrease from 2018). Since 2015, there have been declines in the proportion of respondents using laptops (a 23 percentage point decrease) and PCs (a 12 percentage point decrease) to gamble, and a 27 percentage point increase for mobile phones. Figure 10: Devices used for online gambling in the past four weeks (Online Tracker; n=3,597) Figure 11 shows that those in the younger age groups are most likely to gamble with multiple devices, and the likelihood of using more than one device to gamble reduces with age. There have been observed increases in participation in gambling on mobile phones among all age groups, which are discussed in more detail on the following page. There has been significant decreases in participating in gambling on laptops among the 18-24 (43%, a 10 percentage point decrease), 55-64 (40%; a 7 percentage point decrease), and 45-54 (37%; an 11 percentage point decrease) age groups. 17 Respondents are able to select multiple devices over multiple activities. Figure 12 highlights the growth in mobile use by age group amongst online gamblers. There have been increases in participation in gambling on mobile phones among all age groups, with all groups except those aged 25-34 showing a statistically significant increase. The increase is most pronounced amongst those aged 45-54 (52%; a 13 percentage point increase), followed by those aged 18-24 (76%; a 12 percentage point increase), those aged 35-44 (66%; an 8 percentage point increase), 55-64 (26%; a 5 percentage point increase), and finally, those aged 65+ (14%; a 5 percentage point increase). Figure 12: Use of mobile phone devices for gambling in the past four weeks by age (Online Tracker; n=3,597) \| Age Group \| Tablet \| SmartTV \| Mobile \| Laptop \| PC \| \|-----------\|--------\|---------\|--------\|--------\|----\| \| 18-24 \| 15% \| 5% \| 76% \| 43% \| 20%\| \| 25-34 \| 11% \| 4% \| 72% \| 37% \| 20%\| \| 35-44 \| 15% \| 66% \| 36% \| 20% \| 20%\| \| 45-54 \| 20% \| 52% \| 37% \| 23% \| 30%\| \| 55-64 \| 20% \| 26% \| 40% \| 37% \| 30%\| \| 65+ \| 18% \| 14% \| 39% \| 39% \| 42%\| Figures add to >100% due to respondents being able to select more than one option. Percentages add to >100% as age groups are stacked. Location of online gambling To further understand the use of portable devices such as mobile phones and tablets, online gamblers are also asked about the location of their gambling; whether they gamble at home, whilst commuting, whilst they are at work, at a sports venue or track, or in a pub or club. Gambling in the home has remained the most popular location for online gambling with 95% of online gamblers reporting gambling at home. Male respondents had higher rates than females in terms of gambling outside of the home (on their commute, at work, at a venue or in a pub/club). The proportion of respondents gambling at work has increased (15%, a 3 percentage point increase since 2018). As Figure 14 shows, rates of online gambling in the home are consistent across all age groups. There have been significant increases in the proportion of 45-54 year olds reporting gambling at work (16%; a 4 percentage point increase from 2018), which may be driving the overall increase in participating in gambling at work. There has also been a statistically significant decrease in the proportion of 35-44 year olds gambling in sports venues (3%; a 2 percentage point decrease from 2018). It can be seen that younger age groups are more likely to also gamble in additional locations. Similar to last year, methods of gambling outside of the home are more popular for those aged 18-34. Gambling outside of the home is less popular for those in the older age groups. Figure 13: Location of online gambling in the past four weeks (Online Tracker; n=1,814) Figure 14: Location of online gambling in the past four weeks by age20 (Online Tracker; n=1,814) ______________________________________________________________________ 20 Figures add to >100% due to respondents being able to select more than one option. In-play betting In-play or live betting occurs while an event is actually taking place, for example, placing a bet on a horse race while the race is being run, or on a football match whilst it is being played. This form of betting takes place mainly, but not exclusively, on sporting events. It is predominantly an online activity with bets being made via the internet using either a betting exchange or a traditional bookmaker’s website, but it can also take place in betting shops or over the phone. All respondents who have gambled online in the past four weeks are asked whether they have bet in-play. Just over one fifth (21%) of online gamblers had bet in-play during the last four weeks. Whilst participation in in-play betting overall has remained statistically stable, decreases in in-play participation have occurred among the 25-34 age group (30%; an 8 percentage point decrease from 2018). Figure 15: Online gamblers’ past four week in-play betting by gender and age (Online Tracker; n=1,814) Number of accounts Online gamblers are asked how many online accounts they have with gambling companies, covering all activities including betting, bingo and lotteries, and how many of those they spend money with regularly – either in the past 12 months or on a monthly basis. In 2019, 44% of online gamblers were registered online with one gambling company, however, the average number of accounts held in 2019 was three, which has remained stable compared to 2018. Figure 16: Average number of online accounts (for those with at least one online account) 2015-2019 (Online Tracker n=1,725)21 21 Average number of online accounts refers to accounts held by respondents, but not necessarily gambled with frequently. Figure 17 illustrates that on average, males have more online accounts than females and younger gamblers (those aged 18-44) tend to hold more online accounts on average than those aged 55+. Overall, just under half (44%) of gamblers held just one online account; and this was increasingly common for those in the older age groups. Over half (56%) of online gamblers (with an account) held more than one online gambling account. Younger gamblers were more likely to hold more than five accounts; 20% of those aged 18-24 held five or more accounts (a 5 percentage point increase from 2018), whereas this was the case for just 5% of those aged 65+. It can also be observed that, among gender and age groups, there is more variation in the number of online accounts held and less variation in terms of active accounts (accounts gambled with monthly). eSports eSports (Electronic Sports) are the competitive playing of video games and whilst not new, in recent years their popularity has continued to grow both as an entertainment and betting activity. eSports events or matches can be bet on using either money or in-game items such as skins, points, tokens, coins, or weapons. All respondents were asked whether they have bet on eSports in the past four weeks, past 12 months or have ever bet on eSports. Overall, 6% of respondents had ever bet on eSports, with 4% doing so in the past 12 months. Participation rates for those who had ever bet on eSports were highest among those aged 18-24 (17%) and 25-34 (12%) and lowest for those aged 65+ (\<1%). Participation for betting on eSports with items has decreased significantly amongst those in the 25-34 age category (10%; a 4 percentage point decrease from 2018). Engagement in eSports betting was highest for males; 8% had ever bet on eSports using either money or in play items compared to 5% of females. Consumer analysis The Commission’s online survey also contains questions asked to both gamblers and non-gamblers about wider gambling issues and topics of interest to consumers, including: self-exclusion and gambling management tools, information to players, terms and conditions, complaints, social media & advertising and social gaming. These are asked on a quarterly basis, biannually or annually depending on the nature of the questions. Self-exclusion and gambling management tools If a gambler thinks that they are spending too much time or money gambling, whether online or in gambling premises, and wishes to be supported in their decision to stop, they can ask to be self-excluded from a gambling company or self-exclude from multiple operators. This is when the consumer enters a voluntary agreement that commits them to abstain from gambling and the company to take all reasonable steps to prevent them from gambling with them for a period of time. The minimum self-exclusion period is six months. Other, principally online, tools that can be used to help a player to control their gambling are self-exclusion by product, setting time or money limits, reality checks and using time-outs to suspend play for a short period of time. Since 2015 questions have been included in the online survey to monitor gamblers’ awareness of these tools and the extent to which they are used. Prior to 2019, these questions were asked on a quarterly basis to any gambler who had participated in any gambling activity in the past 12 months. In 2019, the frequency of these questions was reduced to bi-annual. Figure 20: Gamblers’ awareness and use of self-exclusion in 2019 (Online Tracker; n=3,138) Overall, 5% of gamblers have ever self-excluded. Additionally, 42% of gamblers are aware of self-exclusion but have not self-excluded. Over half of gamblers are not aware of self-exclusion (53%, which has remained stable from 2018). Overall, 47% of gamblers had either used or were aware of the self-exclusion facility, a significant increase over a five year period (35% in 2015). Figure 21: Gamblers awareness and use of self-exclusion (Online Tracker; n=3,138) Figures show that, among gamblers, higher proportions of men have self-excluded compared to women, with 6% of men having ever self-excluded compared to 4% of women. Those aged 25-34 were the age group with the highest self-exclusion rates (9%), followed by those in the 18-24 and 35-44 age groups (8%). Rates of self-exclusion have decreased among those in the 45-54 age group (3%, a 2 percentage point decrease from 2018). Figure 22: Self-exclusion among all gamblers by gender and age (Online Tracker; n=3,138) \| Year to December \| All \| Male \| Female \| 18-24 \| 25-34 \| 35-44 \| 45-54 \| 55-64 \| 65+ \| \|------------------\|-----\|------\|--------\|-------\|-------\|-------\|-------\|-------\|-----\| \| 2015 \| 6% \| 7% \| 4% \| 8% \| 14% \| 7% \| 3% \| 1% \| 2% \| \| 2016 \| 6% \| 7% \| 5% \| 9% \| 12% \| 7% \| 4% \| 1% \| 1% \| \| 2017 \| 6% \| 7% \| 4% \| 8% \| 10% \| 8% \| 4% \| 3% \| 1% \| \| 2018 \| 6% \| 7% \| 4% \| 9% \| 11% \| 8% \| 5% \| 2% \| 1% \| \| 2019 \| 5% \| 6% \| 4% \| 8% \| 9% \| 8% \| 3% \| 3% \| 1% \| Whilst self-exclusion is a facility to manage potentially problematic gambling, not everyone will use it only for this reason. If gamblers within the survey have ever self-excluded, they are asked why they chose to self-exclude. The most common reason given for self-exclusion was to help control the amount being gambled overall (50%), followed by, to help control the amount being spent with a particular company (41%). Figure 23: Reasons for self-excluding (Online Tracker; n=142) Gamblers were also asked if they have used a selection of gambling management tools. Financial limits were the most used tool in 2019 with 9% of gamblers having used them, an equal proportion to that observed in 2018. Since 2018, the proportion of respondents that were aware of reality checks as a gambling management tool (but who have not used them) has decreased (27%; a 3 percentage point decrease). Additionally, the proportion of gamblers being unaware of reality checks as a gambling management tool has increased (70%; a 3 percentage point increase). There has been a decrease in the proportion of both males and females having reality checks about their gambling (both 1%, down from 3% in 2018). There has also been a decrease in the use of reality checks amongst those aged 25-34 (4%; a 3 percentage point decrease from 2018). Compared to last year, those aged 35-44 were more likely to use financial limits as a gambling management tool (15%; a 4 percentage point increase from 2018). There have also been declines in the percentage of males using exclusion by product as a gambling management tool (2%; a 1 percentage point decrease from 2018). Information for players This section covers gambling related materials produced by operators which may have either been directly sent to a customer or may form part of their general literature (i.e. tips to control gambling, where to seek help to control gambling). Gamblers were asked about what information they have seen and whether it had an impact on their gambling behaviour. In total, 60% of gamblers had either received at least one piece of gambling related information from an operator or seen a piece of information online or inside/outside a gambling premises, which is similar to levels observed in 2018. Figure 26: Proportion of gamblers who have either received or seen at least one piece of gambling related information from an operator (Online Tracker; n=3,138) 60% Received or seen gambling information from operators 40% Not received or seen gambling information from operators The information that respondents were most likely to have seen was in relation to your chance of winning a prize (43%, the same proportion as in 2018) and your chance of winning each prize (42%, the same proportion as 2018). There has been an increase in the proportion of respondents seeing information about where to seek help to control your gambling (40% a 2 percentage point increase from 2018), and a decrease in the proportion of respondents seeing information on whether a machine is random or compensated (6%, a 1 percentage point decrease from 2018). Figure 27: Proportion of gamblers who have seen or received different types of information about gambling22 (Online Tracker; n=3,137) 22 ‘Transaction and play history of your account’ is asked to online players only. ‘What the maximum payout for a machine is’ and ‘Whether a machine is random or compensated’ are asked to machine players only. In terms of the information provided by gambling companies, tools to help you control your gambling (such as setting time/money limits) had the biggest impact on reducing the frequency of respondents’ gambling. All those who have seen ‘percentage of money returned to player’, ‘your chances of winning any prize’, ‘your chances of winning each prize’, ‘whether a machine is random or compensated’ or ‘what the maximum pay-out for a machine is’ were asked at what point they consulted the information they had seen. In total, 55% said that they consulted the information before play and 24% consulted the information after play, both stable compared to the previous year. Figure 28: Time of consulting the information seen (Online Tracker; n=740) 37% Before you play 6% After you’ve played 18% Both 39% Never In terms of the information provided by gambling companies, tools to help you control your gambling (such as setting time/money limits) had the biggest impact on reducing the frequency of respondents’ gambling. Figure 29: Impact on frequency of gambling based upon information received from gambling companies (Online Tracker; bases vary from n=990-1,198 for each of the four information options) \| Information Type \| Stopped gambling \| Decrease \| Increase \| \|-------------------------------------------------------\|------------------\|----------\|----------\| \| Tools to help you control your gambling, such as setting time/money limits \| 4% \| 20% \| 6% \| \| Transaction and play history for your account \| 4% \| 17% \| 6% \| \| Information on where to seek help for your gambling \| 3% \| 12% \| 5% \| \| Tips to control your gambling \| 3% \| 16% \| 7% \| There have been observed decreases in the proportion of respondents saying that the information caused them to increase their gambling frequency for the following information types: ‘Information on where to seek help for your gambling’ (5%; a 3 percentage point decrease from 2018), ‘Transaction and play history for your account’ (6%; a 4 percentage point decrease from 2018) and ‘Tools to help you control your gambling, such as setting time/money limits’ (6%; a 4 percentage point decrease from 2018). A significant decline can be seen in the proportion of respondents saying that they had increased their gambling spend as a result of receiving information, across all four types of information to receive. Terms and conditions The online survey includes questions to monitor gamblers’ awareness and perceptions of terms and conditions provided by gambling operators. Gamblers are asked whether they had ever read terms and conditions (T&C’s) and, if they had, whether they found them to be helpful. Overall, 20% of gamblers have ever read the terms and conditions provided by a gambling operator. The majority (62%) have not read the terms and conditions despite being aware of their availability. 18% did not know that terms and conditions were available. Women are less likely to be aware of terms and conditions than men, with 22% of women not aware compared to 14% of men. Those aged 65+ are most likely to be unaware of terms and conditions (30%) whereas 12% of those aged 18-24 are unaware. Complaints Complaints from consumers are an important measure for any industry. Any gambler, whether they have gambled online or in premises has the right to make a complaint about a personal gambling transaction, in the first instance, directly to the relevant gambling business. If a consumer and gambling business cannot agree a solution about a gambling transaction that has taken place, a complaint may then be referred to an Alternative Dispute Resolution body (ADR). Consumers can report the way a gambling business is being run to the Commission. All respondents who have gambled in the past 12 months were asked whether they have ever made a complaint related to a personal gambling experience and, if they had, what the complaint was about and how long it took to gain an initial outcome. Overall, 7% of gamblers reported having ever made a complaint, with a further 3% wanting to make a complaint but didn’t. By comparison, 90% of gamblers had not needed to make a complaint. Figure 34 shows that men were more likely to have made a complaint about a personal gambling experience than women, with 10% of men having made a complaint compared with 4% of women. Younger age groups were more likely than average to have made a complaint, with 12% of 18-24 year olds, 11% of 25-34 year olds and 10% of 35-44 year olds reporting having ever made a complaint. Figure 33 shows that of those gamblers who have ever read terms and conditions, 65% found them helpful (a 4 percentage point increase from 2018) and 26% reported having been in a situation where they have felt that a gambling operator’s terms and conditions have been unfair. Figure 33: Proportion of gamblers (who had read terms and conditions) who found them to be helpful/unfair (Online Tracker; n=656) 65% of gamblers who had read terms and conditions found them to be helpful 26% of gamblers who had read terms and conditions found them to be unfair Figure 34: Proportion of gamblers who have ever made a complaint by gender and age (Online Tracker; n=3,138) 3% wanted to make a complaint but didn’t 90% did not need to make a complaint Gamblers who have ever made a complaint were asked what their most recent complaint was regarding. Figure 35 shows that the most common reason for the most recent complaint was in relation to incorrect bet settlement (24%), which is an 11 percentage point increase from 2018. Other common reasons for complaining among gamblers include: non-payment of winnings (16%), misleading promotions/adverts (16%) and being unable to withdraw funds (14%). Figure 35: Reasons for most recent complaint (Online Tracker; n=201) Social media and advertising The online survey has included questions about consumers’ use of social media and the impact of advertising since its inception in March 2015. This data is now collected on a bi-annual basis in surveys running in March and September of each year, with the questions asked to all online gamblers. Online gamblers are asked whether they follow a gambling company on Facebook, Twitter, YouTube, Snapchat, and Instagram. Overall, 23% of online gamblers followed a gambling company on any of these social media platforms in 2019 (a 3 percentage point decrease from 2018). The most pronounced decreases have been amongst those aged 45-54 (17%; a 6 percentage point decrease from 2018) and 55-64 (7%; an 8 percentage point decrease from 2018). Figure 36: Proportion of online gamblers following gambling companies on social media by gender and age (Online Tracker; n=1,953) Figure 37 displays the results for each social media platform. During 2018, the list of social network platforms was expanded to cover YouTube(^{23}) and Snapchat(^{24}). Facebook remains the most popular social media platform in which online gamblers follow gambling companies, with 17% doing so. This is followed by Twitter (8%), YouTube (6%, a 3 percentage point decrease from 2018), Instagram (5%) and Snapchat (2%). These figures are consistent with findings from the latest Adult’s Media Use and Attitudes Report(^{25}) (Ofcom, 2019) which identifies that whilst Facebook is the most popular social media platform, use has decreased among adult internet users aged 16+ since 2017. As Figure 38 shows, Facebook was the most popular social media platform on which to follow a gambling company across both genders and all age groups. A significant decrease was seen in terms of those following gambling companies on Facebook for those aged 55-64 (6%; a 6 percentage point decrease from 2018) and amongst females (15%; a 3 percentage point decrease from 2018). Additionally, the overall decrease seen in individuals following gambling companies on YouTube is likely to be explained by a significant decrease amongst those aged 18-24 (10%; a 9 percentage point decrease from 2018) and males (7%; a 4 percentage point decrease from 2018). There have been increases in the proportion of individuals aged 25-34 (12%; a 5 percentage point decrease from 2018) and females (6%; a 2 percentage point increase) following gambling companies on Instagram. ______________________________________________________________________ (^{23}) New YouTube category was added in 2018 (^{24}) New Snapchat category was added in 2018 (^{25}) Ofcom 2019 (https://www.ofcom.org.uk/\_\_data/assets/pdf_file/0021/149124/adults-media-use-and-attitudes-report.pdf) Respondents of the online survey were asked about advertisements\\textsuperscript{26} and sponsorships\\textsuperscript{27} to help understand people’s awareness of gambling related media. Figure 39 shows that overall, 86% of respondents have ever seen any gambling advertisements and 82% have ever seen any gambling sponsorships. This equates to 87% of respondents who have ever seen any gambling advertisements or gambling sponsorships. These levels of awareness are consistent with those seen in 2018. Figure 39: Proportion of respondents who have seen or heard any gambling advertisements, or gambling sponsorships, or both (Online Tracker; n=4,196) ![86% Seen/heard any gambling advertisements](image) ![82% Seen/heard any gambling sponsorships](image) ![87% Seen/heard any gambling advertisements or sponsorships](image) Figure 40 shows that across all demographic groups, slightly larger proportions of respondents have seen or heard any gambling advertisements than gambling sponsorships. A higher proportion of men than women have seen gambling advertisements, with 89% of men and 83% of women reporting they have seen or heard gambling advertisements. A significant decrease in visibility of gambling sponsorships amongst those aged 25-34 (77%; a 5 percentage point decrease from 2018) has been seen. Figure 40: Seen or heard any gambling advertising and sponsorships by age and gender (Online Tracker; n=4,196) ![Figure 40](image) Figure 41 shows that gambling advertisements were most likely to have been seen on TV, with 78% having ever done so (a 2 percentage point decrease from 2018). This is closely followed by gambling sponsorships on TV or radio (73%), gambling sponsorships on sports merchandise (65%), gambling advertising online (through ‘other websites’) (64%), gambling adverts on posters/billboards (63%), and on social media (59%; a 3 percentage point decrease from 2018). Respondents were least likely to have seen/heard gambling adverts on the radio (45%) and in newspapers (51%; a 3 percentage point decrease from 2018). \\textsuperscript{26} Gambling sponsorships refer to a commercial agreement between a gambling company and another company e.g. Betway sponsoring West Ham United Football club from February 2015 to present. \\textsuperscript{27} Gambling advertisements refer to the promotion of gambling via a variety of media. When looking at the types of advertisements and sponsorships that were seen more frequently i.e. once a week or more, gambling advertisements were most likely to have been seen on television (51%) followed by gambling sponsorships on television or radio (44%). Since 2018, there have been significant decreases in the proportions of respondents seeing the following at least once a week: gambling advertisements on TV (51%; a 3 percentage point decrease), on social media (30%; a 3 percentage point decrease), other websites (31%; a 3 percentage point decrease), gambling advertisements on posters/billboards (23%; a 3 percentage point decrease) and gambling advertisements in newspapers (23%; a 3 percentage point decrease). There has also been a decrease in sponsorships on TV or radio (44%; a 3 percentage point decrease). As Figure 42 shows, online gamblers are more likely to have seen or heard all types of gambling advertisements and sponsorships than those who have not gambled online in the past 12 months. Seeing gambling sponsorships on sports merchandise sees the largest difference between online gamblers and those who have not gambled online, with 41% of respondents who have gambled online in the past 12 months and 26% of those who have not gambled online on the past 12 months reporting having seen gambling sponsorships on sports merchandise. Figure 41: Seen or heard any gambling advertising and sponsorships by frequency (Online Tracker; n=4,196) \| Type of Advertisement/Sponsorship \| More than once a week \| Once a week \| A few times a month \| Less frequently than a few times a month \| Never \| Don’t know \| \|----------------------------------\|-----------------------\|-------------\|---------------------\|----------------------------------------\|-------\|------------\| \| Gambling advertisements on the TV \| 37% \| 13% \| 16% \| 12% \| 11% \| 10% \| \| Gambling sponsorships on TV or radio \| 32% \| 13% \| 16% \| 13% \| 14% \| 14% \| \| Gambling sponsorships on sports merchandise \| 20% \| 13% \| 16% \| 16% \| 17% \| 18% \| \| Gambling sponsorships in sports venues \| 20% \| 13% \| 16% \| 16% \| 17% \| 17% \| \| Gambling advertisements online - social media \| 20% \| 11% \| 14% \| 14% \| 25% \| 17% \| \| Gambling advertisements online - other websites \| 19% \| 12% \| 17% \| 16% \| 19% \| 18% \| \| Gambling associations with sporting competitions \| 15% \| 12% \| 18% \| 16% \| 19% \| 20% \| \| Gambling advertisements in newspapers \| 13% \| 10% \| 12% \| 16% \| 27% \| 22% \| \| Gambling advertisements on posters/billboards \| 12% \| 11% \| 16% \| 22% \| 20% \| 18% \| \| Gambling advertisements on the radio \| 10% \| 6% \| 10% \| 7% \| 35% \| 20% \| Figures may not add to 100% due to rounding. Figure 42: Seen or heard any gambling advertising and sponsorships at least weekly by gambling status (Online Tracker; all respondents n=4,196, gambled online in past 12 months n=1,953, not gambled online in past 12 months n=2,243) There have been significant decreases in the proportion of non-gamblers reporting seeing advertising and sponsorships at least weekly on the following: TV (46%; a 4 percentage point decrease), on other websites (24%; a 4 percentage point decrease), on posters/billboards (19%; a 2 percentage point decrease), in newspapers (18%; a 4 percentage point decrease), and sponsorships on TV or radio (40%; a 3 percentage point decrease). Amongst those who had gambled online in the past 12 months, there has been a decrease in the proportion reporting seeing gambling advertising on posters/billboards (27%; a 3 percentage point decrease). Additionally, online gamblers were asked whether or not various forms of advertising have prompted them to spend money on gambling. As Figure 43 shows, across all online gamblers, 44% have been prompted to spend money on gambling as a result of seeing various forms of advertising. It can be observed that those in the younger age groups were more likely overall to be prompted to spend money on gambling by advertising than those in the older age groups. As Figure 44 shows, the proportion of online gamblers (with a social media account) prompted to spend money on gambling as a result of seeing posts on social media is 52% (a 5 percentage point decrease from 2018). Significant decreases were seen amongst males (50%; a decrease of 9 percentage points from 2018) and 45-54 year olds (43%; a decrease of 17 percentage points). Focusing on advertising in particular, Figure 45 shows that in 2019 online gamblers were most likely to be prompted to spend money on gambling by promotions for free bets and bonuses (29%). Respondents were least likely to be prompted to gamble by advertisements on billboards. Social gaming Some games that can be played online often look like gambling but do not meet the legal definition of gambling. These games may involve a game of chance for a prize and may use gambling-related imagery or mechanics such as cards or dice, but offer a prize which is not money or money’s worth. They are played over the internet, often via mobile phones, and are built on social networks. They are ‘social’ in the sense that interaction with other people is a key feature of the gaming or gambling. These are also referred to as social casino games. The boundaries between social gaming and commercial gambling have become increasingly blurred as a result of: - The growth in use of social media by social gaming and gambling companies - An increasing convergence between the products of traditional gambling and social gaming businesses As such, participation in social gaming has been tracked in the online survey since its launch in 2015. Questions are asked to all respondents on a bi-annual basis. Of all respondents asked, 20% had participated in online gambling-style games. This figure increased to 29% among those who had gambled online in the past 12 months. Both of these figures have remained stable from 2018. Participation in online gambling-style games among online gamblers was highest for those aged 25-34 (41% of all those who had gambled online in the last 12 months). However, since 2018, a significant decrease of 8 percentage points has been seen in this age group. Participation between 2018 and 2019 was stable across all other age and gender categories. The most popular gambling-style games were slot or fruit machine style games, with 64% of social gamers having played these in the last four weeks. Levels of participation across all game types were comparable to 2018, with the exception of casino games seeing a decline (32%; a 10 percentage point decrease from 2018). Since 2015, the proportion of respondents playing fruit or slot machine games has increased significantly, from 52% to 64%. In contrast, since 2015, a significant decline in playing casino games (a 9 percentage point decrease from 2015) and bingo (an 8 percentage point decrease from 2015) has been seen. Amongst social gamers who had also gambled, 51% stated that the first activity that they undertook was gambling to win money. 44% reported playing online gambling games first. The remaining 5% could not remember which activity they had done first, all of which have remained stable from 2018. Perceptions and attitudes Perceptions The Commission has been tracking public perceptions of gambling for over a decade, using questions asked to respondents on a quarterly basis using the telephone survey. The questions measure the extent to which people in Great Britain think that gambling is fair and can be trusted, and that gambling is associated with criminal activity. Figure 50 shows the percentage of respondents who agreed, either strongly or slightly, with the statement that gambling in this country is fair and can be trusted. Figure 50: Agree that gambling is conducted fairly and can be trusted – Percentage agreeing with statement (Telephone Survey; n=4,003) Overall, 29% of respondents agreed with the statement that gambling was fair and can be trusted in 2019. Gamblers’ attitudes remain more positive than non-gamblers, with a higher percentage of gamblers agreeing with the statement that gambling is fair and can be trusted (32%) compared with 25% of non-gamblers. Although there has not been a significant change in the results between 2018 to 2019, there has been a significant decline in agreement over the past ten years. It can be seen that this overall ten year decline appears to be mainly driven by a change in agreement amongst gamblers. Figure 51 shows the percentage of respondents who agreed, either strongly or slightly, with the statement that gambling in this country is associated with criminal activity. Figure 51: Agree that gambling is associated with criminal activity – Percentage agreeing with statement (Telephone Survey; n=4,003) Overall, 43% of respondents agreed with the statement that gambling was associated with criminal activity, a significant increase of 5 percentage points since 2018. The 5 percentage point increase continues when looking at both gamblers (36%) and non-gamblers (41%) agreeing that gambling is associated with criminal activity. Respondents who agreed that gambling was associated with criminal activity were asked which crimes they associated with gambling. Of those providing a response (414 respondents), gambling addicts stealing to carry on gambling was most commonly mentioned (34%), followed by fraud (19%) drug dealing/trafficking/prostitution (18%) and money laundering (17%). Attitudes towards gambling As well as overall perceptions of gambling this section includes more specific public attitudes and opinions towards gambling in Great Britain. Respondents were asked about a series of attitudinal statements, originating from a shortened version of the Attitudes Towards Gambling Scale (ATGS-8) and the extent to which they agree with them was measured. This scale, consisting of a series of 8 statements, was developed with each statement expressing an attitude towards gambling, with five response options on a likert scale from strongly agree to strongly disagree. 82% of respondents agreed that there are too many opportunities for gambling nowadays (a significant increase of 3 percentage points since 2018), whilst 73% agreed that gambling is dangerous for family life. There was a significant increase in respondents stating that gambling should be discouraged (62%; a 4 percentage point rise since 2018) and a significant increase in respondents stating that it would be better if gambling was banned altogether (29%; a 4 percentage point increase from 2018). There has been a significant decline in the proportion of respondents agreeing that ‘gambling livens up life’ (26%; a 2 percentage point decrease from 2018). ______________________________________________________________________ 29 In the 2007 British Gambling Prevalence Survey (BGPS) questions were developed for the first time to capture this data. Due to constraints on questionnaire space in the 2010 BGPS, the number of attitude items was reduced, and the scale was redeveloped as a shortened eight item scale called the ATGS-8. The ATGS-8 statements were added to the Commission’s telephone survey in March 2016. Public opinion on gambling policy Questions capturing the opinions and attitudes of the Great British public are included in the Commission’s online survey once a year (in June) to support the findings collected in the telephone survey (reported above). As opposed to capturing people’s opinions on gambling in general, these questions were designed to provide insight into attitudes towards topical gambling policy issues. Respondents were first asked about their awareness of nine selected policy issues covering topics such as gambling advertising, machines in bookmakers, and self-exclusion. Figure 53: Awareness of gambling policy issues (Online Tracker; n=2,078)30 \| Policy Issue \| Know a lot about \| Know a little about \| Don’t know anything about \| \|------------------------------------------------------------------------------\|------------------\|---------------------\|--------------------------\| \| The controls in place to ensure that children and young people are not exposed to gambling \| 34% \| 31% \| 62% \| \| The maximum amount that can be bet on machines in bookmakers \| 31% \| 31% \| 64% \| \| The number of gambling premises on the high street \| 31% \| 31% \| 65% \| \| Increased regulation of online gambling and non-UK based gambling operators \| 31% \| 31% \| 66% \| \| What time gambling advertising is permitted to appear on TV \| 30% \| 30% \| 67% \| \| The content of gambling advertising \| 29% \| 29% \| 68% \| \| The amount of gambling advertising \| 28% \| 28% \| 70% \| \| Multi-operator self-exclusions schemes (schemes that allow people experiencing problems with gambling to exclude themselves from more than one gambling operator) \| 24% \| 24% \| 71% \| \| The maximum number of gaming machines allowed in bookmakers premises \| 16% \| 16% \| 81% \| The two policy issues that the general public were most aware of were the controls in place to ensure that children and young people are not exposed to gambling, with 38% stating that they knew a lot or a little about the topic, and the maximum amount that can be bet on machines in bookmakers, with 35% stating that they knew a lot or a little about the topic (a 6 percentage point decrease from 2018). This was followed by the number of gambling premises on the high street (35%) and increased regulation of online gambling and non-UK based gambling operators (34%). Similar to 2018, the issue that the public knew least about was the maximum number of gaming machines allowed in bookmakers’ premises, with 19% (a 2 percentage point decrease from 2018) stating that they knew a lot or little about the issue. This was followed by a question used to ascertain how important the public felt that various regulatory measures covering each of the nine issues are. Respondents were asked to rank each issue in order of importance. The issue that most people ranked as the highest importance was having controls in place to ensure that children and young people are not exposed to gambling (32% ranked this in first place, and 55% ranked it in their top three issues). Since last year, the percentage of respondents ranking the importance of setting a stake limit on machines in bookmakers has remained stable, with 13% ranking it as the most important issue, and 40% ranking it among the top three issues. The only policy issue seeing a significant increase in importance is restriction on the content of gambling advertising (6%; a 1 percentage point increase since 2018) ranking in first place. 30 Figures may not add to 100% due to rounding. Respondents were then asked about what channels had informed their overall opinion of gambling on society. News on TV (40%) most often informed people’s opinions, followed by personal experience (31%) and newspapers (26%). Significant declines were seen in the portrayal of gambling in advertising (22%; a 3 percentage point decrease from 2018) and politicians and government policy (10%; a 2 percentage point decrease since 2018) in informing public opinion. Gamblers were also asked about which factors were important when selecting a company to gamble with for the first time. The most important factor was operators who offered the best odds, selected by 27% of gamblers as their top choice, closely followed by reputation of a company for being fair and trustworthy, with 24% of gamblers selecting it as their top choice. Figure 56: The most important factor to gamblers when selecting an operator for the first time (Online Tracker; n=3,031) Appendix – Methodology This appendix provides further explanation of the methodologies used for each section of this report, including sample sizes and margins of error. Gambling participation Gambling participation data is collected on a quarterly basis using a bespoke telephone survey administered by Populus. The results cover the calendar years 2016 – 2019 and are based on a rolling year average of the four quarters in the year, reducing the effect of seasonal variations in gambling behaviour. Surveys are conducted in March, June, September and December with approximately 1,000 interviews conducted per quarter. Each survey captures past four week gambling behaviour amongst people aged 16+ in Great Britain. Telephone survey sample is generated through Random Digit Dialing (RDD) of Great Britain phone numbers. The sample is subject to quotas to ensure it is as nationally representative as possible. On introduction respondents are screened to ensure they are 16+ and fit in remaining unfilled quotas. The quotas are set based on: - Age - Gender - Region - Social grade In addition data are weighted for analysis to ensure all results are representative of the adult population. Weights are set based on the National Readership Survey (a face-to-face random probability sample). The variables used for weighting are: - Age - Gender - Region - Social grade - Whether they have taken a foreign holiday in the past 3 years - Tenure - Number of cars in the household - Working status The core content captured in the survey is: - Past four week participation in a range of gambling activities - Mode of play on individual activities - Frequency of play by activity and mode The full telephone survey questionnaire document is released in conjunction with this report. ______________________________________________________________________ 31 Until March 2015 the survey was conducted by ICM Unlimited as part of their telephone omnibus survey. Following the cessation of the omnibus, the Commission chose to commission a standalone telephone survey, for which Populus were selected as supplier following a competitive tender process. 32 In March 2016 the sample was broadened to include participants aged 16+ 33 Random Digit Dialling (RDD) is a method for sampling of telephone surveys which involves the random generation of telephone numbers. This method is effective in the GB population due to the high rate of telephone ownership and the fact that it allows the sampling of individuals who are ex-directory. Problem and at-risk gambling Rates of problem gambling are collected on a quarterly basis in the telephone survey, using the short form Problem Gambling Severity Index (PGSI mini-screen)(^3). The screen was developed by Gemini Research to provide a screen which is more easily administered than the full 9-item PGSI. The screen is formed of three questions which broadly capture issues associated with problem gambling. The questions are: 1. Have you bet more than you could really afford to lose? 2. Have people criticised your betting or told you that you have a gambling problem? 3. Have you felt guilty about the way you gamble or what happens when you gamble? Respondents select from never – sometimes – most of the time – almost always for each of the questions. Questions are then scored from 0-3 based on response giving a total possible screen score of 9. The scoring categorisation is shown in the table below: \| Score \| Categorisation \| \|-------\|-----------------------------------------------------\| \| 0 \| Non-problem gambler (gamble with no negative consequences) \| \| 1 \| Low-risk gambler (experience a low level of problems with few or no identified negative consequences) \| \| 2-3 \| Moderate-risk gambler (experience a moderate level of problems leading to some negative consequences) \| \| 4+ \| Problem gambler (gamble with negative consequences and possible loss of control) \| The Health Surveys provides the Commission’s most robust estimates of problem and at-risk gambling due to the use of a high quality random probability sampling approach, a large sample size and the availability of both PGSI and DSM-IV screens. The latest data available from the Health Surveys is from the Health Survey England 2018, which is included within this report. Full PGSI and DSM-IV screens The PGSI was developed by Ferris and Wynne and was specifically developed for use among the general population rather than within a clinical context. It was developed, tested and validated within a general population survey of over 3,000 Canadian residents. The instrument was revised in 2003. The PGSI consists of nine items ranging from ‘chasing losses’ to ‘gambling causing health problems’ to ‘feeling guilty about gambling’. Each item is assessed on a four-point scale: never, sometimes, most of the time, almost always. Responses to each item are given the following scores: never = zero; sometimes = one; most of the time = two; almost always = three. When scores to each item are summed, a total score ranging from zero to 27 is possible. A PGSI score of eight or more represents a problem gambler. This is the threshold recommended by the developers of the PGSI and the threshold used in this report. The PGSI was also developed to give further information on sub-threshold problem gamblers. PGSI scores between three and seven are indicative of ‘moderate-risk’ gambling and a score of one or two is indicative of ‘low-risk’ gambling. The DSM-IV screening instrument is based on criteria from the fourth edition of the Diagnostic and Statistical Manual of the American Psychiatric Association (DSM-IV). This contains ten diagnostic criteria ranging from ‘chasing losses’ to ‘committing a crime to fund gambling’. The DSM-IV criteria constitute a tool created for diagnosis by clinicians of pathological gambling and were not intended for use as a screening instrument among the general population. Therefore, there is no recommended questionnaire version of the DSM-IV. An adapted version of the DSM-IV to use in a survey setting was developed for the British Gambling Prevalence Survey (BGPS) and was subject to a rigorous development and testing process, including cognitive testing and piloting. (^3) Developing a Short Form of the PGSI (Volberg, 2012). Each DSM-IV item is assessed on a four-point scale, ranging from ‘never’ to ‘very often’. Responses to each item are dichotomised to show whether a person meets the criteria or not and a total score between zero and ten is produced. Among clinicians, a diagnosis of pathological gambling is made if a person meets five out of the ten criteria. Many surveys, when adapting the DSM-IV criteria into a screening instrument for use within a general population survey, have included a further category of ‘problem gambler’ for those who meet at least three of the DSM-IV criteria. This approach was adopted for the Health survey series. Online gambling behaviour As well as collecting data on overall gambling participation and problem gambling, the Commission collects more in-depth data from online gamblers specifically about their online gambling behaviour. This is done via a quarterly online survey conducted by Populus as part of their online omnibus survey. Results cover the calendar year 2019, with surveys again taking place in March, June, September and December with approximately 2,000 interviews conducted per quarter with people aged 18+ in Great Britain. To avoid response bias from other sections of the omnibus, gambling content is always included at the start of the survey. Results are based on a rolling year average of the four quarters in the year to reduce the effect of seasonal variations in gambling behaviour. The online survey sample is sourced through a panel and the sample is subject to quotas in-line with those used for the telephone survey. In addition data are weighted for analysis in-line with the methodology used for the telephone survey which is outlined above. The core content captured in the online survey is: - Past four week participation in a range of gambling activities - Mode of play on individual activities - Frequency of play online - Devices used for gambling online for individual activities - Location of play for individual activities - In-play betting - Number of accounts held with operators - Self-exclusion and gambling management tools - Terms and conditions - Participation in social gaming The full online survey questionnaire document is released in conjunction with this report. Making gambling fairer and safer Responsible statisticians: Jennifer Barnfield-Tubb Research and Statistics Manager Chloe Francis Research and Analysis Officer For further information or to register your interest in the Commission please visit our website at: www.gamblingcommission.gov.uk Copies of this document are available in alternative formats on request. Gambling Commission Victoria Square House Victoria Square Birmingham B2 4BP T 0121 230 6666 F 0121 230 6720 E [email protected] Gambling Commission Published February 2020	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/2886-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 44, "total-input-tokens": 93748, "total-output-tokens": 21263, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 349, 1 ], [ 349, 2386, 2 ], [ 2386, 4083, 3 ], [ 4083, 5650, 4 ], [ 5650, 8870, 5 ], [ 8870, 12004, 6 ], [ 12004, 16158, 7 ], [ 16158, 17909, 8 ], [ 17909, 18549, 9 ], [ 18549, 20716, 10 ], [ 20716, 22656, 11 ], [ 22656, 25583, 12 ], [ 25583, 26464, 13 ], [ 26464, 30772, 14 ], [ 30772, 33371, 15 ], [ 33371, 34660, 16 ], [ 34660, 36406, 17 ], [ 36406, 38135, 18 ], [ 38135, 38984, 19 ], [ 38984, 39995, 20 ], [ 39995, 42161, 21 ], [ 42161, 43786, 22 ], [ 43786, 44947, 23 ], [ 44947, 46758, 24 ], [ 46758, 49089, 25 ], [ 49089, 50095, 26 ], [ 50095, 52212, 27 ], [ 52212, 53628, 28 ], [ 53628, 55417, 29 ], [ 55417, 57787, 30 ], [ 57787, 61537, 31 ], [ 61537, 63003, 32 ], [ 63003, 64522, 33 ], [ 64522, 65504, 34 ], [ 65504, 65797, 35 ], [ 65797, 67548, 36 ], [ 67548, 69732, 37 ], [ 69732, 73894, 38 ], [ 73894, 74354, 39 ], [ 74354, 74843, 40 ], [ 74843, 77313, 41 ], [ 77313, 81137, 42 ], [ 81137, 83389, 43 ], [ 83389, 83943, 44 ] ] }
a3717e3a75c1d0f892a4fa7d0a50243069177998	Separate Legal Entities Example 8 F Ltd has a PAYE Scheme S Ltd has a PAYE scheme Five Ltd co-operates with Strong Ltd in producing gates. The employees of both companies work on the premises of the other company on a regular basis. Regardless of the relationship between the two companies they are separate legal entities and their PAYE schemes must not be merged.	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/2562-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 1, "total-input-tokens": 1198, "total-output-tokens": 115, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 369, 1 ] ] }
02a64acd7f61b897bdefe9fdfbb5f8fb3b784d8a	Schemes and Payroll Agents Example 9 F Ltd decides to outsource its wages function to a payroll agent C. C operates PAYE for its own employees, and now operates PAYE and pays the employees for F Ltd. F Ltd reimburses C for the wages paid and also pays it a fee for its services. C suggests that for convenience the employees of F Ltd are transferred to its own PAYE scheme. This must not be permitted. Both Employers are a separate legal entity and responsible for PAYE/NIC’s for their own employees. Both schemes must be left as they are.	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/2563-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 1, "total-input-tokens": 1263, "total-output-tokens": 161, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 543, 1 ] ] }
416fa61a80e9cef85bcfe21bdc76adab09c88486	1 Executive Summary The ‘Funding the Archives Sector’ research project was a collaboration between The National Archives and the International Centre for Archives and Records Management Research and User Studies (ICARUS) of University College London. The project advisory board also included representatives from the Welsh Government Division, CyMAL: Museums Archives and Libraries Wales and the Archives & Records Association. The project took place over the period September 2011 to September 2012 and this report outlines the results of that project in answering three key research questions: • How are archives in the UK funded? • What funding resources are under developed within the sector? • What appropriate advice and training support can be delivered by The National Archives to improve access to additional funding resources? The critical drivers for this report were the financial pressures on archive services foregrounded by the impact of the recession; the UK government’s ‘Big Society’ agenda and related initiatives, and the general awareness of the need for further development in this area within the archives sector and how this might be achieved within The National Archives’ strengthened leadership role. 1.1 How are archives in the UK funded? Following discussion with the project advisory board and the Scottish Council on Archives, it was agreed to undertake a survey of collecting repositories in England and Wales only. The survey asked a number of detailed questions relating the archive services income. Fig A: Archives in England and Wales: How much income did your archive service receive from each of the following sources in the last financial year? Fig A represents these survey findings and further analysis is provided in Section 4 of the report. Whilst recognising that these figures represent a snapshot of a single accounting year, the survey findings back up the assertion that archive services are reliant on parent organisations for either the whole or the majority of their funding. There were some variations between the funding sources accessed by different types of services and the scale of external funding. For example university archives received 31% of funding from external sources, compared to 17% in local authorities. Organisations with charitable status attracted 23% of their funding from external sources. In contrast to the wider cultural sector, there did not appear to be greater success for archives services based in London when attracting external funding. 1.2 What funding resources are under developed within the sector? Based on a literature review, the survey findings and a focus group, the research project sought to analyse the funding landscape in which archive services operate, what funding sources they use and how they access these sources. The report evidences that little investment is made at a service level to diversifying funding sources. Barely a third of archive services stated that their organisation had a fundraising strategy and only 3.2% of staff time is allocated to fundraising activity, demonstrating that a cultural shift is required to recognise this as a core management activity. Only 17% of respondents have a budget allocation towards fundraising activities, resources and training, although 56% reported that they could access some fundraising expertise and resource from their parent organisation. There is clear evidence that archivists are lacking in confidence and experience in a range of fundraising techniques and that this is hampering the sector as a whole in accessing additional external funding. Fig B below illustrates responses to survey questions asking to rate confidence and experience levels for a range of fundraising tactics. ![Fig B: Comparison of confidence and experience levels](image) The research identified a range of strengths, weaknesses, opportunities and threats to archive services seeking to fundraise or generate additional income. The areas covered in more detail in Section 5 of the report are listed below: \| Strengths \| Weaknesses \| \|-----------------------------------------------\|---------------------------------\| \| Parent organisation support \| Governance models \| \| Tradition of sharing knowledge and collaboration \| Financial planning \| \| Accessing the Heritage Lottery Fund \| Incentives and disincentives \| \| Writing bids to trusts and foundations \| Resource allocation \| \| \| Risk taking and innovation \| Advocates and relationship management \| Opportunities \| Threats \| \|---------------------------------------------------\|----------------------------------------------\| \| National levers - Archives for 21st Century and Accreditation \| Lack of engagement with issues around fundraising for archives \| \| Developing an evidence base \| Lack of monetary value placed on service \| \| The National Archives as information conduit \| Lack of major donors \| \| Higher education sector \| Lack of business relationships \| \| Capitalising on engaged user base and volunteers \| \| \| Crowdfunding opportunities \| \| Having considered both the challenges and barriers facing archive services, and the potential and possibilities for the sector, Section 6 of the report presents a future-focused approach. In addressing these issues at organisational level, the report sets out seven success indicators for archive services and for Heads of Archive Services (HoAS) to consider: 1. Parent organisations understand the need to continue to invest in their archive service and external funding is not used to withdraw or reduce core funding but rather to grow capacity 2. HoAS and other budget holders are confident in financial planning and have a clear understanding of the cost of all aspects of delivering their service 3. HoAS are looking at all times to embed financial efficiency into service delivery, maximising the benefit of both core and external funding 4. HoAS have sufficient resources to develop a strategic approach to fundraising and income generation and work with their parent organisation on approved approaches that enable the archive service to harness the full benefit of successful fundraising and income generation 5. HoAS are able to work successfully with their parent organisation’s development teams or draw on other internally available expertise, where applicable 6. Services are able to access a range of funding sources but are doing so through a clear-sighted analysis of strategic fit and return on investment, rather than simply chasing a funding pot. 7. Income generating activities are pursued with an understanding of value with regards to both profit generation and other purposes Fig C overleaf revisits the national funding picture and puts down a marker as to what this should look like for the archives sector, five years on from the original survey. This is a challenging aspiration, predicated on future development support. 1.3 What appropriate advice and training support can be delivered by The National Archives to improve access to additional funding resources? Having set out for the first time an analysis of the current funding picture for archive services and presented a proposed future model to work towards at both national and organisation level, the following recommended approach is provided for The National Archives. \| \| Leadership \| \|---\|---------------------------------------------------------------------------\| \| 1 \| Develop stronger relationships at national and regional level with funders and stakeholders \| \| 1.1 \| Influence policy at national and local level to ensure sustainable funding for services \| \| 1.2 \| Support piloting of new approaches to funding and fundraising \| \| \| Collaboration \| \|---\|----------------------------------------------------------------------------\| \| 2 \| Identify opportunities to bring together funders to enable greater strategic impact \| \| 2.1 \| Identify opportunities to bring together archive services to capitalise on funding initiatives \| \| \| Good Practice \| \|---\|----------------------------------------------------------------------------\| \| 3 \| Provide mechanisms and opportunities for archive services to learn from each other \| \| 3.1 \| Ensure archive services have access to up-to-date and appropriate information on funding and fundraising \| \| \| Advice \| \|---\|------------------------------------------------------------------------\| \| 4 \| Ensure archive services have access to individual support where needed \| \| 4.1 \| Ensure funding support is part of all strategic discussions with archive services \| \| 4.2 \| Ensure archive services have access to appropriate training \| It is the hope of the research team that these ten high-level objectives will be accepted and become the basis of a more detailed action plan for The National Archives and its strategic partners in providing developmental support up to 2015 and beyond.	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/2564-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 4, "total-input-tokens": 9983, "total-output-tokens": 1798, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 2362, 1 ], [ 2362, 4648, 2 ], [ 4648, 7384, 3 ], [ 7384, 9626, 4 ] ] }
97b5834ae67b6456292dcfc1759287e1f738930a	Taxation of Chargeable Gains Act 1992, sections 44 and 45 – whether a valuable painting displayed in Castle Howard was “plant” within section 44(1)(c) of the 1992 Act – whether the painting satisfied the test as to function – whether the painting satisfied the test as to permanence – whether the painting was not plant in the hands of the owner who disposed of it when the business in which the painting was used was not that of the owner of the painting but of a company, Castle Howard Estate Ltd – whether painting a “wasting asset” within section 44 of the 1992 Act – whether owner of painting entitled to exemption from capital gains tax pursuant to section 45(1) of the 1992 Act IN THE UPPER TRIBUNAL (TAX AND CHANCERY CHAMBER) ON APPEAL FROM THE FIRST-TIER TRIBUNAL (TAX CHAMBER) Between : THE EXECUTORS OF LORD HOWARD OF HENDERSKELFE (DECEASED) Appellants - AND - THE COMMISSIONERS OF HER MAJESTY’S REVENUE AND CUSTOMS Respondents TRIBUNAL: MR JUSTICE MORGAN Sitting in public at Royal Courts of Justice, Rolls Building, Fetter Lane, London, EC4A 1NL on 29th and 30th November 2012 William Massey QC (instructed by Forsters LLP) for the Appellants Ms Aparna Nathan (instructed by General Counsel and Solicitor for HM Revenue) for the Respondents © CROWN COPYRIGHT 2013 Tribunal Judge: Mr Justice Morgan: The Painting 1. On 29th November 2001, the Executors of Lord Howard of Henderskelfe sold at Sotheby’s a painting by Sir Joshua Reynolds (“the Painting”) of Omai, a South Sea islander. The Painting was painted shortly before 1776 and was exhibited at the Royal Academy in that year. It was sold to the 5th Earl of Carlisle in 1796 and it remained at Castle Howard, in Yorkshire, until its sale in 2001. The catalogue prepared by Sotheby’s for the sale in 2001 described the Painting as one of the great icons of eighteenth-century art and a symbol of an age which saw unprecedented advances in areas of travel, commerce, the natural sciences and philosophical thought. It was said that the depiction of Omai owed much to Rousseau’s idea of the Noble Savage. Omai was noticed by the officers of the Discovery and the Adventure when they anchored off Huahine during Captain Cook’s second voyage in August 1773. Omai returned to England on the Adventure and on arrival he was the subject of considerable curiosity in London society. After two years in England, Omai returned to his native land. In 1789, when Captain Bligh visited Huahine in the Bounty, just before the mutiny, he learned that Omai had died. The question in this case 2. The question in this case is whether the Painting was a “wasting asset” within section 44 of the Taxation of Chargeable Gains Act 1992 (“the 1992 Act”). In the absence of any statutory elaboration of the meaning of “wasting asset” it is agreed that it would not be possible to describe such a valuable painting, in good condition (as it was), as a “wasting asset”. However, the term “wasting asset” is defined in section 44 of the 1992 Act. In particular, section 44(1)(c) of the 1992 Act provides that “plant and machinery” will be deemed to have a predictable life of less than 50 years and section 44(1) provides that an asset with a predictable life not exceeding 50 years will be a “wasting asset”. Thus, the Painting will be a wasting asset if it was “plant and machinery” within section 44(1)(c) of the 1992 Act. If the Painting was a wasting asset, then the disposal will fall within section 45(1) of the 1992 Act, which (subject to the potential operation of section 45(2) or (3)) produces the result that no chargeable gain arose on the disposal of the Painting. It is agreed that neither section 45(2) nor (3) applies in the present case. The appeal from the FTT 3. The above question came before the First-tier Tribunal (Tax Chamber) (“the FTT”) for determination. In its decision released on 22nd July 2011, the FTT (Judge Radford and Ms Watts Davies) held that the Painting was not plant and machinery within section 44(1)(c) of the 1992 Act, and therefore was not a wasting asset within section 44 of the 1992 Act and therefore the gain made on its disposal was not exempt pursuant to section 45(1) of the 1992 Act from being considered as a chargeable gain. 4. The Appellants now appeal to the Upper Tribunal with the permission of the FTT given on 12th December 2011. The appeal is on a point of law only pursuant to section 11(1) of the Tribunals, Courts and Enforcement Act 2007. The facts 5. I will set out the facts as found by the FTT. Many of the following findings of fact were based upon a statement of facts which had been agreed by the parties. At paragraphs [6] – [29] of its decision, the FTT held as follows: [6] Lord Howard died on 27 November 1984. [7] He resided until his death at Castle Howard ('the House') in North Yorkshire. The House has been owned by Castle Howard Estate Ltd ('the Company') since 1950. [8] Since 1952, the Company's principal activity as stated in its accounts has been the carrying on of activities relating to land ownership. Specifically it has, inter alia, carried on the trade of opening the greater part of the House ('the Public Part') and the surrounding grounds, and the exhibiting of the works of art within the Public Part to members of the public, in consideration of admission fees ('the House-opening Trade'). [9] The Public Part of the House is open all year round apart from certain off-season periods. [10] Lord Howard owned a number of works of art. During his life Lord Howard permitted the Company to use a large number of these, including the Painting, for exhibition in the Public Part in the House-opening Trade. The agreement or arrangement was that the Company would bear the costs of the insurance, maintenance, restoration and security of the works exhibited. [11] During Lord Howard's lifetime there was no formal lease, hire or loan in relation to the use of the Painting by the Company. There was no provision for the Company to pay any hire or rental fee to Lord Howard. [12] This arrangement continued after Lord Howard's death between the Appellants and the Company in relation to the works of art previously owned by Lord Howard and exhibited by the Company. [13] HMRC were told that the Appellants considered that formal loan/hire/lease arrangements were unnecessary given that the directors of the Company and the Executors of Lord Howard's Will (the Appellants) were the same individuals. [14] The Appellants continued the longstanding arrangement whereby the Company was responsible for the insurance, maintenance, restoration and security of the Painting. [15] The Painting was conditionally exempted from inheritance tax on the death of Lord Howard on the basis of certain undertakings. In the event that the Painting was sold the exemption would be lost. The undertaking meant that the Painting had to be kept in the United Kingdom and seen by the public. [16] The Painting was displayed by the Company throughout the Executors’ period of ownership (November 1984 to November 2001) except for 3 periods totalling approximately 7 months in all when it was exhibited at three galleries in Paris, London and York respectively. [17] During the tax year 2001–02 the Executors sold the Painting at auction at Sotheby's on 29 November 2001 to an unconnected purchaser for a hammer price of £9.4 million from which commission and value added tax ('VAT') totalling £220,900 was deducted. [18] The Appellants’ trust and estate tax return for the tax year 5 April 2002 was submitted on 29 January 2003 and included the gain accruing on the disposal of the Painting as a chargeable gain. [19] By letter dated 10 June 2003 the Appellants sought to amend the return on the basis that the gain accruing on the sale of the Painting was exempt from capital gains tax by virtue of s 45 of the TCGA as a gain accruing on the disposal of a tangible movable property which was 'plant' and therefore, by virtue of s 44(1)(c) of the TCGA, a wasting asset. [20] On 12 January 2004, HMRC opened an enquiry into the Appellants' trust and estate tax return. On 30 April 2010 after some lengthy correspondence HMRC issued a closure notice stating the conclusion that the gain accruing on the disposal of the Painting was a chargeable gain not exempted by s45 of the TCGA because the Painting was not 'plant'. [21] The Appellants appealed the closure notice on 28 May 2010. They also notified HMRC that they required a statutory review of the matter in question. [22] On 5 August 2010 the reviewing officer informed the Appellants of his conclusion which upheld the closure notice issued by HMRC on 30 April 2010 in full. [23] Mr Simon Howard gave evidence that the Executors had power under the will to license the Company to use any of the chattels forming part of the estate. There was however no formal agreement. [24] A focal point of the rooms on display was the room in which the Painting was hung. [25] He was required to live at the House in order to look after it and he has a lease with the Company. [26] On cross-examination he confirmed that the works of art were essential to the House-opening Trade. They were on a perpetual loan to the Company but there was nothing to stop the Appellants moving items away from the exhibits and they were at liberty to move them around from time to time. Items might be taken out of use and vice versa. This was arbitrary and there was nothing formal. [27] However Mr Howard said that in order to justify the admission fees the items were vital to the House-opening Trade. If you took away the number of visitors who came to see the works of art the Company would no longer have a viable business. [28] He believed that the reasons why members of the public visited the House were to appreciate its architectural qualities, to admire its historic contents, and to understand the range of historical narratives underpinning the history of the House. He believed that the art collections at the House were and had been, in his experience, central to bringing to life the House and the history surrounding it in the eyes of its visitors and for that reason proved a very considerable draw to the visiting public. [29] The Painting was sold because he needed the money for his divorce settlement. The proceeds went into the estate. There was no benefit to the Company and the proceeds were split equally between the beneficiaries.” Capital gains tax 6. By section 1 of the 1992 Act, tax is charged in accordance with the 1992 Act in respect of capital gains accruing to a person on the disposal of assets. In this case, the Painting was an asset within the 1992 Act: see section 21. Section 15 provides that the amount of a gain so accruing is to be computed in accordance with Part II of the 1992 Act. In the present case, if the gain on the disposal of the Painting in 2001 is taxable then the parties are not agreed as to the tax payable but the determination of that amount was not an issue before the FTT nor is it an issue on this appeal to the Upper Tribunal. By section 16 of the 1992 Act, the general position is that the amount of a loss accruing on a disposal of an asset is computed in the same way as the amount of a gain so accruing. In calculating the amount of a gain on a disposal of an asset, section 38 provides for the appropriate treatment of acquisition and disposal costs. 7. Section 44 of the 1992 Act defines “wasting asset” and section 45 confers an exemption from tax in relation to certain wasting assets. 8. Section 44 of the 1992 Act provides: “(1) In this Chapter “wasting asset” means an asset with a predictable life not exceeding 50 years but so that— (a) freehold land shall not be a wasting asset whatever its nature, and whatever the nature of the buildings or works on it; (b) “life”, in relation to any tangible movable property, means useful life, having regard to the purpose for which the tangible assets were acquired or provided by the person making the disposal; (c) plant and machinery shall in every case be regarded as having a predictable life of less than 50 years, and in estimating that life it shall be assumed that its life will end when it is finally put out of use as being unfit for further use, and that it is going to be used in the normal manner and to the normal extent and is going to be so used throughout its life as so estimated; (d) a life interest in settled property shall not be a wasting asset until the predictable expectation of life of the life tenant is 50 years or less, and the predictable life of life interests in settled property and of annuities shall be ascertained from actuarial tables approved by the Board. (2) In this Chapter “the residual or scrap value”, in relation to a wasting asset, means the predictable value, if any, which the wasting asset will have at the end of its predictable life as estimated in accordance with this section. (3) The question what is the predictable life of an asset, and the question what is its predictable residual or scrap value at the end of that life, if any, shall, so far as those questions are not immediately answered by the nature of the asset, be taken, in relation to any disposal of the asset, as they were known or ascertainable at the time when the asset was acquired or provided by the person making the disposal.” 9. Section 45 of the 1992 Act provides: “(1) Subject to the provisions of this section, no chargeable gain shall accrue on the disposal of, or of an interest in, an asset which is tangible movable property and which is a wasting asset. (2) Subsection (1) above shall not apply to a disposal of, or of an interest in, an asset— (a) if, from the beginning of the period of ownership of the person making the disposal to the time when the disposal is made, the asset has been used and used solely for the purposes of a trade, profession or vocation and if that person has claimed or could have claimed any capital allowance in respect of any expenditure attributable to the asset or interest under paragraph (a) or paragraph (b) of section 38(1); or (b) if the person making the disposal has incurred any expenditure on the asset or interest which has otherwise qualified in full for any capital allowance. (3) In the case of the disposal of, or of an interest in, an asset which, in the period of ownership of the person making the disposal, has been used partly for the purposes of a trade, profession or vocation and partly for other purposes, or has been used for the purposes of a trade, profession or vocation for part of that period, or which has otherwise qualified in part only for capital allowances— (a) the consideration for the disposal, and any expenditure attributable to the asset or interest by virtue of section 38(1)(a) and (b), shall be apportioned by reference to the extent to which that expenditure qualified for capital allowances, and (b) the computation of the gain shall be made separately in relation to the apportioned parts of the expenditure and consideration, and (c) subsection (1) above shall not apply to any gain accruing by reference to the computation in relation to the part of the consideration apportioned to use for the purposes of the trade, profession or vocation, or to the expenditure qualifying for capital allowances … .” The FTT decision 10. The FTT made the findings of fact which I have set out above. It then referred to the relevant legislation and set out in detail the submissions on behalf of the parties. It then made its findings, comparatively briefly, in paragraphs [96] – [102] in the following terms: “[96] We find that whilst the Painting owned by the Appellants and loaned to the Company was no doubt greatly admired by the visitors its sale did not cause any reduction in the visitor numbers. In fact visitor numbers went up by 10% from 2001 when the Painting was sold. [97] We find that the Painting was loaned to the Company on an informal basis and could be removed by the Appellants at any time. It lacked therefore any degree of permanence with the Company as described by Lord Reid in the case of Hinton (Inspector of Taxes) v Maden and Ireland Ltd [1959] 1 WLR 875. [98] We considered Mr Massey's example at para [44], above but the Painting was not hired to the Company. Its use by the Company was on an informal basis. \[The example in para [44] was of the Appellants buying art in the market in 1984 and then hiring it to the Company for use in its trade.\] [99] We find no reason to describe it as a wasting asset in the hands of the Appellants. We find that the Appellant Executors did not have a business and in order to be 'plant' and fall within the exemption provided by s44(1)(c) TCGA it is necessary for the asset to be owned by the business or at the very least leased formally to it. [100] We find no reason for the Painting to be capital gains tax exempt in the Appellant's hands just because it might have a different character in someone else's hands. As stated by Vinelott J in the case of Melluish (Inspector of Taxes) v BMI (No 3) Ltd and others: 'It is not in question that the taxpayers are all persons carrying on a trade and that they incurred capital expenditure on the provision of plant for the purpose of that trade. The only question is whether in consequence of the incurring of the expenditure the plant could be said to belong or have belonged to them'. [101] We find Mr Massey's submission that there was no policy reason to restrict the phrase 'plant and machinery' found in s 44(1)(c) to 'plant which is used in the trade of the disponor and machinery' to be difficult to accept on the basis that not to do so would open up all sorts of tax avoidance possibilities as described at para [94] above. \[In para [94], the FTT had recorded Ms Nathan's submission that if the owner of an asset could claim exemption from capital gains tax by simply lending the asset to a third party for use in the third party's business before the owner sold the asset, this would open up substantial tax avoidance possibilities.\] [102] As submitted by Ms Nathan machinery is easily recognised and has an intrinsic character and quality that identifies it. However, 'plant' has no such innate quality: it is merely an asset that is put to a particular use in a particular context and acquires its colour from the context in which it is used.” The submissions for the Appellants 11. Mr Massey QC on behalf of the Appellants submitted that the Painting was plant. He submitted that whether an object is plant is answered by looking at its function, and asking the question: is the object part of the apparatus used by a trader for permanent employment in his business? For an object to be plant, it does not have to be employed in a trade carried on by the owner of the object. It is sufficient if, for example, it is owned by one person but is part of the permanent apparatus used in the trade of another, whether under a formal lease or a less formal licence. He suggested that the FTT had held that an object had not only to satisfy a functional test but also had to satisfy an ownership test so that the object had to be owned by the person carrying on the trade in which the object was used or at any rate be leased by that person under a formal lease. 12. Mr Massey relied on the well known cases (to some of which I will later refer) which laid down a functional test to determine whether an object was plant. The Painting satisfied that test. It did not fail the test because it was a valuable painting rather than more prosaic objects used in a trade such as office furniture or office equipment. The concept of “plant and machinery” was not limited by reference to the value of the items and could extend to high value items. 13. Mr Massey then followed through these submissions when considering the reasoning of the FTT to the contrary. In relation to the FTT’s finding in paragraph [97] that the Painting lacked any degree of permanence because it was loaned to the Company on an informal basis, Mr Massey submitted that this finding was contradicted by the FTT’s findings of fact as to the history of the matter and involved a misunderstanding of the cases which referred to the concept of permanence in relation to the test for plant. 14. Mr Massey concluded by submitting that the Painting was plant for the following reasons: (1) it functioned as a prominent exhibit in the trade carried on by the Company throughout the entirety of the 17 year period of its ownership by the Executors (1984 to 2001) and for some 32 years before that, in accordance with the intentions of the owner and of the Company; (2) the Painting had the necessary quality of permanence to be regarded as kept by the trader for permanent employment in its business; and (3) the Painting was not part of the premises. The submissions for the Respondents 15. Ms Nathan on behalf of the Respondents submitted that the Painting was not plant. In support of her submissions as to the test to be applied to determine whether an asset was plant, she cited essentially the same cases as were relied upon by the Appellants. She stressed that an asset was not automatically plant from the moment it was created nor was its character immutable. An asset could be stock in trade in the hands of a supplier to a taxpayer and then plant in the hands of the taxpayer. An asset which is held in private hands is not plant whereas if the same asset were used in the business of its owner it would be plant. What transforms the asset into plant is the use to which it is put in the owner’s business. For the purposes of capital gains tax, in order for an asset to have the character of plant in the hands of the person disposing of it, it is necessary for that asset to be used in a business carried on by that person. This follows from the scheme of the tax which is to charge the tax on the gain accruing to a person from the disposal of assets. Accordingly, in the present case, the Painting must be plant in relation to the Executors; it is not sufficient that it is plant in relation to the Company. Further, the FTT was right to conclude that the Painting did not have the required degree of permanence because it was not owned by the Company and the Company had no enforceable right to retain it as against its owner. In summary, it was submitted that the FTT was right for the reasons which it had given. 16. Ms Nathan accepted that if the Painting was plant within section 44(1)(c) of the 1992 Act, then it was a wasting asset within section 44 and the gain made on its disposal was exempt within section 45(1). She did not argue that the case came within section 45(2) or (3). The authorities as to the meaning of “plant” 17. The word “plant” is not defined in the 1992 Act. In Yarmouth v France (1887) 19 QBD 647 at 658, Lindley LJ referred to the ordinary meaning of the word in these terms: “There is no definition of plant in the Act: but, in its ordinary sense, it includes whatever apparatus is used by a business man for carrying on his business, — not his stock-in-trade which he buys or makes for sale; but all goods and chattels, fixed or moveable, live or dead, which he keeps for permanent employment in his business: see Blake v Shaw (1860) Johns. 732.” 18. Blake v Shaw concerned the meaning of “plant” in a will. The principal distinction drawn was between stock and plant. Plant was described as consisting of items permanently used for the purposes of a trade as distinguished from fluctuating stock. 19. Yarmouth v France did not involve a taxing statute but Lindley LJ’s definition has been adopted and applied in relation to various taxing statutes: see, in particular, the three House of Lords decisions in Hinton v Maden and Ireland Ltd [1959] 1 WLR 875, Commissioners of Inland Revenue v Barclay Curle & Co Ltd (1969) 45 TC 221 and Commissioners of Inland Revenue v Scottish & Newcastle Breweries Ltd [1982] 1 WLR 322. In the last of these cases, the position was described by Lord Wilberforce in these terms at pages 324 - 326: “The word “plant” has frequently been used in fiscal and other legislation. It is one of a fairly large category of words as to which no statutory definition is provided (“trade,” “office,” even “income” are others), so that it is left to the court to interpret them. It naturally happens that as case follows case, and one extension leads to another, the meaning of the word gradually diverges from its natural or dictionary meaning. This is certainly true of “plant.” No ordinary man, literate or semi- literate, would think that a horse, a swimming pool, moveable partitions, or even a dry-dock was plant — yet each of these has been held to be so: so why not such equally improbable items as murals, or tapestries, or chandeliers? The courts have, over the years, provided themselves with some guidance in principle, starting with Lindley L.J. in Yarmouth v. France (1887) 19 Q.B.D. 647, 658. Plant, he said “in its ordinary sense … includes whatever apparatus is used by a business man for carrying on his business — not his stock-in- trade which he buys or makes for sale; but all goods and chattels, fixed or moveable, live or dead, which he keeps for permanent employment in his business.” Later cases have revealed that a permanent structure may be plant (Inland Revenue Commissioners v Barclay, Curle & Co Ltd [1969] 1 WLR 675) and argument has ranged over the question whether, to constitute plant, an item of property must fulfil an active role or whether a passive role will suffice — a distinction which led to some agreeable casuistry in relation to a swimming pool (Cooke v Beach Station Caravans Ltd[1974] 1 WLR 1398). Perhaps the most useful discrimen, for present purposes, where we are concerned with something done to premises, is to be found in that of “setting”: to provide a setting for the conduct of a trade or business is not to provide plant — J. Lyons & Co Ltd v Attorney-General [1944] Ch 281, concerning electric lamps, sockets and cords for lighting a tea shop. But this, too, is not without difficulty. In the Lyons case itself Uthwatt J. thought that different considerations (so that they might qualify as apparatus) might apply to certain specific lamps because they might be connected with the needs of the particular trade carried on upon the premises. In Jarrold v John Good & Sons Ltd [1963] 1 WLR 214, some fixed but moveable partitions though in a sense “setting” were thought capable of being also “apparatus.” And in Schofield v R & H Hall Ltd [1975] N.I. 12, the same argument was applied to the external walls of grain silos, as well as to the connected machinery. Another much used test word is “functional” — this is useful as expanding the notion of “apparatus”; it was used by Lord Reid in Barclay, Curle [1969] 1 WLR 675. But this, too, must be considered, in itself, as inconclusive. Functional for what? Does the item serve a functional purpose in providing a setting? Or one for use in the trade? It is easy, without excessive imagination, to devise perplexing cases. A false ceiling designed to hide unsightly pipes is not plant, though the pipes themselves may be (Hampton v Fortes Autogrill Ltd [1980] STC 80). Is a tapestry hung on an unsightly wall any different from a painted mural? And does it make a difference whether there was a damp patch underneath? What limit can be placed on attractions, interior or exterior, designed to make premises more pleasing, to the eye or other senses? There is no universal formula which can solve these puzzles. In the end each case must be resolved, in my opinion, by considering carefully the nature of the particular trade being carried on, and the relation of the expenditure to the promotion of the trade. I do not think that the courts should shrink, as a backstop, from asking whether it can really be supposed that Parliament desired to encourage a particular expenditure out of, in effect, tax-payers' money, and perhaps ultimately, in extreme cases, to say that this is too much to stomach. It seems to me, on the commissioners' findings, which are clear and emphatic, that the respondents' trade includes, and is intended to be furthered by, the provision of what may be called “atmosphere” or “ambience,” which (rightly or wrongly) they think may attract customers. Such intangibles may in a very real and concrete sense be part of what the trader sets out, and spends money, to achieve. A good example might be a private clinic or hospital, where quiet and seclusion are provided, and charged for accordingly. One can well apply the “setting” test to these situations. The amenities and decoration in such a case as the present are not, by contrast with the Lyons case [1944] Ch 281, the setting in which the trader carries on his business, but the setting which he offers to his customers for them to resort to and enjoy. That it is setting in the latter and not the former sense for which the money was spent is proved beyond doubt by the commissioners' findings. I do not find it impossible to attribute to Parliament an intention to encourage by fiscal inducement the improvement of hotel amenity.” 20. The word “permanent” was used in Blake v Shaw and Yarmouth v France to distinguish plant from stock in trade. The concept of “permanence” was also referred to in Hinton v Maden & Ireland Ltd [1959] 1 WLR 875. The question in that case was whether certain items used in the taxpayer’s trade were plant. It was held that the expenditure on the items in question was capital expenditure and that, even though the items had a relatively short life, they were sufficiently durable to be called plant. Lord Reid said at page 890: “...When Lindley L.J. used the phrase “permanent employment in the business” he was using it in contrast to stock-in-trade which comes and goes, and I do not think that he meant that only very long-lasting articles should be regarded as plant. But the word does, I think, connote some degree of durability and I would find it difficult to include articles which are quickly consumed or worn out in the course of a few operations. There may well be many borderline cases, but these articles have an average life of three years, and if their cost can fairly be called capital expenditure I cannot refuse to them the description of “plant” unless the Act discloses some special reason for doing so.” 21. Lindley LJ’s definition in Yarmouth v France was the subject of further analysis by Hoffmann J in Wimpy International Ltd v Warland [1988] STC 149 (whose decision was later upheld by the Court of Appeal, reported at [1989] STC 273). Hoffmann J referred to Lindley LJ’s definition and then said at pages 170 - 171: “It is important to notice the various discriminations which are stated or implied in this description. First, it excludes anything which is not used for carrying on the business. Secondly, it excludes stock-in-trade both expressly and because, although used for the purposes of the business, its use lacks permanence. Thirdly, it excludes things which are not ‘apparatus ... goods and chattels, fixed or moveable, live or dead’ or not employed in the business. This excludes the premises or place in or upon which the business is conducted. Before going any further I must say something about the third distinction and the way in which the courts in subsequent cases have refined the boundary between plant and premises. The words 'apparatus ... goods and chattels, fixed or moveable, live or dead' might suggest that the distinction turns upon whether the item is a chattel or fixture on the one hand or a building or structure on the other. This was the view of the minority in the House of Lords in IRC v Barclay, Curle & Co Ltd [1969] 1 WLR 675, 45 TC 221. But the majority held that even a building or a structure (in that case a dry dock) could be plant if it was more appropriate to describe it as apparatus for carrying on the business or employed in the business than as the premises or place in or upon which the business was conducted. ... It will be seen, therefore, that although the three distinctions in Yarmouth v France (1887) 19 QB 647 each involves a test which can be called functional, they are subtly different from each other. If the item is neither stock-in-trade nor the premises upon which the business is conducted, the only question is whether it is used for carrying on the business. I shall call this the 'business use' test. However, under the second distinction, an article which passes the 'business use' test is excluded if such use is as stock-in-trade. And under the third distinction, an item used in carrying on the business is excluded if such use is as the premises or place upon which the business is conducted. The fact that an item may pass the 'business use' test but fail what I may call the 'premises' test is central to this case.” Discussion 22. The issue in this case is whether the asset which the Appellants disposed of by sale in 2001 was within the phrase “plant and machinery” in section 44(1)(c) of the 1992 Act. No one submitted that the Painting was “machinery”. The Appellants say that the Painting was “plant”. The Respondents say that the Painting was not plant for essentially three reasons. The first is that the use of the Painting by the Company did not satisfy the test as to function identified in the above authorities. The second reason is that the use of the Painting by the Company did not satisfy the test as to permanence identified in the above authorities. The third reason is that the trade in which the Painting was arguably used was the trade of the Company not the trade of the owner who disposed of the Painting. 23. There was no dispute as to the relevant test as to function. That test is described by Lord Wilberforce in the Scottish & Newcastle case. It is necessary to focus on the nature of the particular trade being carried on and the relation of the object to the promotion of that trade. The trade in the present case is an unusual or specialised trade and the object has a considerable value. Nonetheless, it appears to me to be relatively straightforward to say, on the findings of fact made by the FTT, that the Painting was being used for the promotion of the trade carried on by the Company. 24. I next consider whether the Painting is not to be considered as plant because it fails the test as to permanence. That test was first stated for the purpose of distinguishing plant from fluctuating stock in trade. The Respondents say that the Painting was not plant because it was not “kept for permanent employment” in the Company’s business. This is said to be because the Company did not have an interest in the Painting which gave it a legal entitlement to keep it permanently or, at any rate, for a sufficiently long period of time. So far as the cases show, the concept of permanence has not been invoked in this way in the past. The concept of permanence has been used to distinguish fluctuating stock in trade from plant or to distinguish consumables from plant. On the FTT’s findings of fact, I would hold that the Painting was kept for permanent employment in the Company’s business until it was taken back by the Executors for the purposes of sale. The Painting was used in that business from 1952 to 2001. The Painting was loaned to the Company by Lord Howard between 1952 and 1984 and by the Executors between 1984 and 2001. The Painting was displayed in an established setting within the House. Although the Company’s legal entitlement to use the Painting in its business was subject to the possibility that the owner of the Painting might terminate that right by notice to the Company, both the owner of the Painting and the Company considered that the Painting would be available to the Company for a considerable, albeit indefinite, period and that is what happened. The trigger for the owner’s decision to take back the Painting was the need to raise capital in connection with a divorce settlement. 25. The principal challenge made by the Respondents to the idea that the Painting was plant within section 44(1)(c) of the 1992 Act was based on the fact that the trade in which the Painting was used was the trade of the Company, whereas the Painting was owned by the Executors, and it was the Executors who disposed of the Painting and made the relevant gain on such disposal. The Respondents submitted that, for the purposes of capital gains tax, in order for an asset to be plant in the hands of the person disposing of it, it was necessary for that asset to be used in a business carried on by that person. This submission was made on the basis that even though the Company could say the Painting was plant in its hands, the Executors could not say that the Painting was plant in their hands when they disposed of it. 26. The distinction sought to be made by the Respondents could arise in any case where an object is owned by one person and made available for use by another person. It is commonplace for an owner of an object which has the physical character of plant to hire or lease that object to a trader who uses the object for the purposes of its business. If the Respondents are right in their submission, then that object will be considered to be plant in the hands of the trader but not plant in the hands of the owner. 27. The distinction contended for by the Respondents does not appear to have surfaced in any of the many cases over the years which have discussed the ordinary meaning of plant. Nor does the distinction appear explicitly in the 1992 Act. Section 44 deals with the predictable life of an asset. Although section 44(1)(a) and (d) refer to a freehold interest and a life interest respectively, the other provisions of section 44 appear to be concerned with the physical character of the object and the nature of its use, rather than the terms on which there is conferred a legal entitlement to use the object. Thus section 44 refers to the predictable life of plant and machinery in terms which refer only to the physical features of the object. The Respondents accepted that their submission as to plant did not apply to the word “machinery” in the phrase “plant and machinery”. Thus, if the Executors had lent to the Company something which could properly be described in physical terms as machinery and if the Executors later disposed of that machinery making a capital gain, that gain would be exempt under section 45(1). There is no explicit indication in the language of sections 44 and 45 of the 1992 Act of a distinction of this kind between plant and machinery. 28. Sections 45 and 47 of the 1992 Act do refer to “the period of ownership” of the asset. Sections 45(3) and 47(2) refer to the possibility that during the period of ownership of the person making the disposal, the asset was used for the purposes of a trade, profession or vocation for only part of that period. The sub-section then makes provision for apportionment of the consideration for the disposal and of any expenditure in relation to the asset. The Respondents did not submit that these provisions were incapable of applying to a case where an owner of an asset hires the asset to another person who then returns the asset to the owner who then disposes of it making a capital gain. 29. The Respondents correctly submitted that an asset could acquire and could later lose the character of plant. The example was given of law reports by reference to the decision in Munby v Furlong (1977) 50 TC 491. Law reports in the bookseller’s shop are stock in trade and not plant. When the law reports are sold to the practising barrister, they are then plant. If the barrister later sells a particular volume of a law report to a private collector of rare books, then that law report is neither stock in trade nor plant. This allowed the Respondents to argue that the law report was not plant “in the hands” of the bookseller and the private collector but was plant “in the hands of” the barrister. The Respondents then submitted that this example showed that an asset could be plant in the hands of one person and not plant in the hands of another person. However, there is an important distinction between that example and the present case. In the example, there is a sequence of ownership and use. The asset changes into plant when it ceases to be stock in trade and satisfies the test as to function when used by the barrister; it ceases to be plant when it fails to satisfy the test as to function when owned by the private collector. What the Respondents submit in the present case is that the Painting was plant and was not plant at the same time. It was to be regarded as plant “in the hands of” the Company but not plant “in the hands of” the Executors. 30. I asked the Respondents whether it was open to them to apply their example of sequential ownership and use to the present case. I inquired whether it was open to them to say that during the period that the Painting was used by the Company in its trade, the Painting was plant but when the Painting was returned to the Executors for the purposes of its sale, it ceased to be plant and so that, at the moment of disposal, the Painting was no longer plant. The Respondents had not put forward any argument to this effect before the FTT. Accordingly, there were no findings as to the sequence of events in relation to the return of the Painting to the Executors nor as to the sale of the Painting at auction. As I understood the Respondents, they contended that I should uphold the decision of the FTT on the wider ground that in the period from 1984 to 2001 the Painting was not plant in the hands of the Executors rather than that I should consider upholding the FTT on a point which the FTT did not itself decide, namely, the narrow ground that the Painting was not plant just before, and at the moment of, its sale by the Executors. 31. The Appellants submitted that other legislation in the field of tax referred to plant in a way which proceeded on the basis that the Respondents were wrong in suggesting that an object could be plant in the hands of a person using the object in its trade and at the same time not plant in the hands of the owner of that object. The Appellants referred to section 105(1)(d) of the Inheritance Tax Act 1984 which provided a relief from inheritance tax in relation to relevant business property, which included any machinery or plant which immediately before its transfer was used wholly or mainly for the purposes of a business carried on by a company of which the transferor then had control or a partnership of which he then was a member. This provision would apply to a transferor who owned an object and allowed it to be used for the business of a company of which he had control. Certainly in that statutory context the object could be described as plant for the purposes of the relief to the transferor even though the transferor did not use the object in the transferor’s business but instead made the object available to a company under his control for use in the company’s business. 32. The Appellants also pointed to the statutory provisions dealing with capital allowances in relation to capital expenditure on plant. They referred in particular to the Capital Allowances Act 1968, section 18(1), the Finance Act 1971, section 41(1) and the Capital Allowances Act 1990, section 22(1). Each of these provisions referred to a person carrying on a trade and incurring capital expenditure on the provision of machinery or plant wholly and exclusively for the purposes of the trade and in consequence of his incurring the expenditure the machinery of plant “belongs to him”. It was pointed out that section 44(1)(c) of the 1992 Act does not express any requirement that the person who disposes of the plant had carried on the trade in which the object was used as plant. The history of the legislation relating to capital allowances in respect of plant and the significance of the requirement that the plant “belongs” to the person incurring the expenditure was traced by Fox LJ in his judgment in Stokes v Costain Property Investments Ltd (1984) 57 TC 688 (see at pages 701 – 703) and the decision of the Court of Appeal in that case was approved by the House of Lords in Melluish v BMI (No. 3) Ltd (1995) 68 TC 1. 33. The word “plant” must be construed in the context of the 1992 Act and that context is not necessarily the same as the context of the Inheritance Tax Act 1984 nor the legislation dealing with capital allowances. In the 1992 Act, section 44(1)(c) uses the term “plant” and does not in terms say that the object must have been used by the owner of the object in his trade. The 1984 Act proceeds on the basis that an object can be called plant even if it is used in the trade of a company controlled by the owner of the object rather than used by the owner in his trade. The capital allowances legislation expressly provides that the plant must belong to the person who incurs capital expenditure on the object for the purposes of his trade. These other statutory provisions are consistent with the Appellant’s submission that the ordinary meaning of plant, when it is not elaborated or restricted by further express provisions, can apply to an item which its owner makes available to another for use in that other’s trade. However, because the statutes are expressed in different terms and their context is different from that of the 1992 Act, I think it would be wrong to place too much weight on the way in which these other statutes are expressed. 34. Having considered the rival submissions and, in particular, the three arguments put forward by the Respondents, my provisional view is that the Painting satisfies the established test as to plant, both as regards the test as to function and the test as to permanence. Further, my provisional view is that in the context of the 1992 Act, the question whether an object is plant is to be answered by applying the established test to the object. If the object is plant on that basis then it is to be regarded as plant whether one is considering the position of the trader using the plant or the owner of the plant and no distinction is to be made between these persons. 35. Having reached a provisional conclusion based on the findings of fact made by the FTT and the submissions made to me, I now need to consider the reasoning of the FTT in support of its conclusion. 36. In paragraph [96] of its decision, the FTT referred to visitor numbers before and after the sale of the Painting. It is not clear whether the FTT regarded that matter as being of any significance. In favour of the conclusion that it regarded the matter as significant is the fact that paragraph [96] is one of only seven paragraphs in which the FTT expresses its conclusions. On the other hand, the FTT does not explain in what way this fact could be significant. It seems unlikely that the FTT was purporting to find that the Painting was a positive disadvantage in the context of the Company’s trade so that when the Painting was removed from the House, the Company’s trade improved. In any case, the mere fact that the Painting was removed from the House in a period when visitor numbers declined proves nothing as to any link between the presence of the Painting in the House and visitor numbers. The FTT do not appear to have carried out any exercise as to the reasons for the decline in visitor numbers at that point. It seems to me to be very unlikely that one could identify any specific effect on visitor numbers caused by the presence or the absence of a particular painting in the House. 37. In paragraph [97] of its decision, the FTT referred to the fact that the Executors could ask the Company to return the Painting at any time. It then said that the Painting lacked the degree of permanence described in Hinton v Maden & Ireland Ltd. I have already considered the test as to permanence in the judicial definitions of plant as well as the facts as found by the FTT. I consider that the Painting had sufficient permanence for the purposes of the relevant test. 38. In paragraph [98] of its decision, the FTT seemed to make a distinction between the hiring of a work of art (in the example given by the Appellants as recorded in paragraph [44] of the FTT’s decision) and the use of the Painting by the Company “on an informal basis”. The FTT does not say whether it considered that a hiring by the Company of the Painting would have sufficed and what was different between a hiring and the informal basis on which the Painting was made available by the Executors to the Company. 39. In paragraph [99] of its decision, the FTT stated that it saw no reason to describe the Painting as a wasting asset in the hands of the Appellants. Of course, but for the express provision in section 44(1)(c) of the 1992 Act, the Painting was not a wasting asset; it was a highly valuable asset with a predicted life of more than 50 years and liable to appreciate in value. The FTT then laid down the requirement that for an asset to be plant, it had to be owned by the business in which it was used or at the very least leased formally to that business. That finding appears to me to be inconsistent with the FTT’s apparent conclusion that the Painting was plant in the hands of the Company when the Painting was not owned by the Company nor formally leased to the Company. What the FTT appears to have been trying to express was a requirement that an asset would only be plant if the person who owned it carried on the trade in which it was used. In my judgment, this was a considerable restriction on the ordinary meaning of plant. That restriction was not part of the ordinary meaning of plant as defined in the case law; neither was it a restriction expressly imposed by the 1992 Act. In my judgment, there is no proper basis on which one could hold that this restriction was implicit although unexpressed in the language of, or the scheme of, the 1992 Act. Further, if one were to impose such a restriction on the meaning of plant in section 44(1)(c) of the 1992 Act, I do not see why it should matter if the asset was leased “formally” or informally. 40. In paragraph [100] of its decision, the FTT referred to a statement by Vinelott J at first instance in Melluish v BMI (No. 3) Ltd 68 TC 1 at 44. Vinelott J was not, in that statement, identifying what was required for an object to come within the ordinary meaning of plant. He was simply stating the question which was posed in that case by the language of section 44(1) of the Finance Act 1971 which contained an express requirement that the plant belonged to the person incurring the capital expenditure. 41. In paragraph [101] of its decision, the FTT appeared to consider that there was a policy reason to restrict the meaning of “plant and machinery” in order to prevent the possibility of tax avoidance. However, the Respondents had accepted before the FTT that their contention that an asset could be plant in the hands of a person who used the asset in his trade and at the same time not plant in the hands of the owner of the object did not apply to machinery. In any case, if an asset meets the established tests as to plant and if it therefore comes within the ordinary meaning of plant in the context of section 44(1)(c) of the 1992 Act, the FTT did not explain what process of statutory interpretation allowed it to read in an unexpressed restriction on the meaning of plant in order to prevent the provision being used for tax avoidance purposes. 42. In paragraph [102] of its decision, the FTT appeared to distinguish between plant and machinery so that the restriction it imposed on the meaning of plant did not apply to machinery. Conclusion 43. Having considered the general submissions which were made to me and the reasoning of the FTT in this case, I have concluded that I am unable to agree with the decision of the FTT which in my judgment was wrong in law. In this case, on the findings of fact made by the FTT, the Painting satisfied the tests as to function and as to permanence in the established test as to the meaning of plant. Further, the meaning of plant in section 44(1)(c) of the 1992 Act does not permit a finding that an asset is plant in the hands of a person using the asset in his business but, at the same time, not plant in the hands of the owner of the asset. I conclude that the Painting was plant within section 44(1)(c) of the 1992 Act and in the absence of any argument that the Painting had ceased to be plant a short time before it was disposed of by the Executors, the Executors are entitled to the exemption conferred by section 45(1) of the 1992 Act. 44. The FTT plainly resisted the conclusion that the Painting was a wasting asset. I accept that there is something surprising in holding that an asset of high value, and one liable to appreciate in value, with a predicted life of more than 50 years, was a wasting asset. However, the Painting was only a wasting asset for the purposes of section 44 of the 1992 Act because it satisfied the established test as to plant and therefore came within section 44(1)(c) which deems something to be a wasting asset even though it would not otherwise be thought of as a wasting asset. The result 45. The result is that the appeal is allowed. Costs 46. If the parties are unable to agree any issue as to costs, then I direct that, within 21 days of the release of this decision, they are to serve on each other and on the Upper Tribunal written submissions on any remaining issue as to costs. MR JUSTICE MORGAN UPPER TRIBUNAL (TAX AND CHANCERY CHAMBER) RELEASE DATE: 11 MARCH 2013	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/2565-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 21, "total-input-tokens": 52373, "total-output-tokens": 13324, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 1097, 1 ], [ 1097, 1285, 2 ], [ 1285, 4120, 3 ], [ 4120, 6455, 4 ], [ 6455, 8671, 5 ], [ 8671, 11165, 6 ], [ 11165, 13535, 7 ], [ 13535, 15820, 8 ], [ 15820, 18403, 9 ], [ 18403, 21618, 10 ], [ 21618, 24545, 11 ], [ 24545, 27365, 12 ], [ 27365, 30261, 13 ], [ 30261, 32966, 14 ], [ 32966, 36469, 15 ], [ 36469, 40009, 16 ], [ 40009, 43500, 17 ], [ 43500, 47025, 18 ], [ 47025, 50470, 19 ], [ 50470, 53456, 20 ], [ 53456, 53797, 21 ] ] }
8de8c2e5b5f8570a0a9c94ea743a9c24907f8338	Licence Exemption 1. The Office of Rail Regulation (ORR) exempts under section 7(3) of the Railways Act 1993: [Full Company Name] registered in [England and Wales/Scotland] with number [XYZ] from the requirement to be authorised by licence to operate the railway assets described in paragraph 2 below. 2. This exemption applies to non-passenger trains being used in an engineering possession. 3. This exemption is valid from [Day Month Year]. 4. ORR may revoke the whole or any part of this exemption: (a) if the exemption holder is granted another licence or exemption for the operation of all or some of the railway assets to which this exemption applies; or (b) if ORR suspects on reasonable grounds that the exemption holder has operated a railway asset without a necessary licence or exemption; or (c) if all or some of the railway assets to which this exemption applies are not used for at least one year; or (d) if the exemption holder ceases to be the operator of all or some of the assets to which this exemption applies; or (e) by agreement in writing with the exemption holder. Signed by authority of ORR [Day Month Year] Reference number:	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/2566-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 1, "total-input-tokens": 1575, "total-output-tokens": 327, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 1189, 1 ] ] }
aa199303d3cf25e2a96c71da09f0f76a048e7892	Licence Exemption 1. The Office of Rail Regulation (ORR) exempts under section 7(3) of the Railways Act 1993: [Full Company Name] registered in [England and Wales/Scotland] with number [XYZ] from the requirement to be authorised by licence to operate the railway assets described in paragraph 2 below. 2. This exemption applies to: (a) any light maintenance depot (LMD) which has been notified to ORR and in respect of which ORR has not objected within 30 days of being notified; (b) any train being used on the network within the depot. A list of the LMDs to which this exemption applies is at Schedule 1. 3. This exemption is valid from [Day Month Year]. 4. ORR may revoke the whole or any part of this exemption: (a) if the exemption holder is granted another licence or exemption for the operation of all or some of the railway assets to which this exemption applies; or (b) if ORR suspects on reasonable grounds that the exemption holder has operated a railway asset without a necessary licence or exemption; or (c) if all or some of the railway assets to which this exemption applies are not used for at least one year; or (d) if the exemption holder ceases to be the operator of all or some of the assets to which this exemption applies; or (e) by agreement in writing with the exemption holder. Signed by authority of ORR [Day Month Year] Reference number: Schedule 1 The LMDs to which this exemption applies are: \| LMD \| Date \| \|-----\|------\| \| 1. \| \| \| 2. \| \| \| 3. \| \| \| 4. \| \|	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/2567-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 2, "total-input-tokens": 2827, "total-output-tokens": 497, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 1416, 1 ], [ 1416, 1568, 2 ] ] }
6fe7265d8ab43f48cede1746b451b4b3f5dbed4e	Licence Exemption 1. The Office of Rail Regulation (ORR) exempts under section 7(3) of the Railways Act 1993: [Full Company Name] registered in [England and Wales/Scotland] with number [XYZ] from the requirement to be authorised by licence to operate the railway assets described in paragraph 2 below. 2. This exemption applies to: (a) the network \[forming [name location] or [which passes through X and Y location] and any extensions to this network carried out after [date of this exemption], which have been notified to ORR and in respect of which ORR has consented, together known as “the exempt network”; and (b) any [train], [station] or [light maintenance depot] operated on the exempt network. A list of the railway assets to which this exemption applies is at Schedule 1. 3. This exemption is valid from [Day Month Year]. 4. ORR may revoke the whole or any part of this exemption: (a) if the exemption holder is granted another licence or exemption for the operation of all or some of the railway assets to which this exemption applies; or (b) if ORR suspects on reasonable grounds that the exemption holder has operated a railway asset without a necessary licence or exemption; or (c) if all or some of the railway assets to which this exemption applies are not used for at least one year; or (d) if the exemption holder ceases to be the operator of all or some of the assets to which this exemption applies; or (e) by agreement in writing with the exemption holder. Signed by authority of ORR [Day Month Year] Reference number: Doc # 350882.05 Schedule 1 The assets to which this exemption applies are: \| Asset \| Date \| \|-----------------------------------------------------------------------\|---------------\| \| 1. Any [train], [station] or [light maintenance depot] covered by paragraph 2b of this exemption. \| [enter date] \| \| 2. The network \[forming [name location] or [which passes through X and Y location] on [date].\] \| [enter date] \|	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/2568-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 2, "total-input-tokens": 3019, "total-output-tokens": 558, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 1573, 1 ], [ 1573, 2050, 2 ] ] }
987b94697634a8170adedd971d45c32b06578369	Exercise of delegated powers conferred on the Secretary of State by the Public Records Act 1958 The Secretary of State has delegated the following powers, conferred on him by the Public Records Act 1958, to the Chief Executive and Keeper of The National Archives and his staff. 1. The giving of approval for the transfer of public records, in either direction, between The National Archives and places of deposit, as well as transfers between places of deposit is made under s. 4(3) of the Public Records Act 1958. \| Reference \| Class of public record \| Transferred from \| Transferred to \| \|-----------\|------------------------\|------------------\|----------------\| \| 2019-04 \| (1) UK AEA photographic records: images of various aspects of the UK atomic energy industry c1940-70; (2) UK AEA moving image records: moving image records of various aspects of the UK atomic energy industry c1940-70. \| Nuclear Decommissioning Authority (UK Atomic Energy Authority) Nuclear record Images Resources, B404 Rutherford Avenue, Harwell Oxford, Didcot OX11 0DF \| Nucleus: The Nuclear and Caithness Archives (Nuclear industry Archives), Wick airport, Wick KW1 4QS \| \| 2019-05 \| Aerial Photographic and film collections relating to Wales: (1) Ordnance Survey vertical aerial photography collection; \| Aerial Photographic Unit, Welsh Government, Cathays Park, Cardiff CF10 3NQ \| Royal Commission on the Ancient and Historical Monuments of Wales, Ffordd Penglais, Aberystwyth SY23 3BU \| \| \| \| \|---\|---\| \| (2) \| Ordnance survey mapping programme 1958-1999; \| \| (3) \| Royal Air Force photography collection – RAF surveys; \| \| (4) \| Meridian Airmaps Ltd – commissioned surveys; \| \| (5) \| Simmons Aerofilms Ltd – commissioned surveys; \| \| (6) \| Terence Soames Photography – commissioned surveys; \| \| (7) \| Van Rhijn Aerial Photography – commissioned surveys; \| \| (8) \| Fairey Surveys Ltd – survey. \| 2. The appointment of places of deposit under s. 4(1). Public records with either specific local relevance or particular specialist and administrative requirements are held outside The National Archives in approved places of deposit. During the year the following places of deposit were appointed: - Durham County Record Office (strong room 3) - Historic Royal Palaces (Tower of London) - National Army Museum (including the Stevenage Collection Centre) - Science and Industry Museum (Science Museum Group) 3. The giving of approval for the presentation of public records which have not been selected for permanent preservation at The National Archives to other appropriate bodies under s. 3(6). \| Presented by \| Presented to \| Class of Records \| Date Approved \| Presentation Instrument No. \| \|-----------------------\|---------------------------------------------------\|----------------------------------------------------------------------------------\|---------------\|-----------------------------\| \| Ministry of Defence \| Hampshire Archives and Records Centre \| Record of Service sheets for Royal Ordnance Factory workers, pre-1929 \| 09/04/2019 \| 2019-03 \| \| Ministry of Defence \| Tank Museum \| Royal Armoured Corps and Tank files, 1961-1993 \| 09/04/2019 \| 2019-04 \| \| Ministry of Defence \| The Royal Green Jackets (Rifles) Museum \| File detailing regimental matters of the Royal Green Jackets Association \| 15/04/2019 \| 2019-05 \| \| Ministry of Defence \| The Duke of Cornwall's Light Infantry Museum \| Two files detailing regimental matters of the Light Infantry and Regimental Association \| 15/04/2019 \| 2019-06 \| \| National Maritime Museum \| The Museum of London: London Archaeological Archive and Research Centre \| Technical reports, drawings and papers relating to archaeological excavations of vessels in London, c1960-1980 \| 14/05/2019 \| 2019-07 \| \|--------------------------\|---------------------------------------------------------------------\|-------------------------------------------------------------------------------------------------\|------------\|--------\| \| National Maritime Museum \| Nottingham City Museums & Galleries \| Technical reports, drawings and papers relating to archaeological excavations of vessels in Nottinghamshire, c1960-1980 \| 14/05/2019 \| 2019-08 \| \| National Maritime Museum \| Worthing Museum and Art Gallery \| Technical reports, drawings and papers relating to archaeological excavations of vessels in West Sussex, c1960-1980 \| 14/05/2019 \| 2019-09 \| \| National Maritime Museum \| North Lincolnshire Museum \| Technical reports, drawings and papers relating to archaeological excavations of vessels in North Lincolnshire, c1960-1980 \| 14/05/2019 \| 2019-10 \| \| Ministry of Defence \| National Maritime Museum \| Admiralty Experimental Works’ (AEW), Gosport, Hampshire: design drawings \| 14/05/2019 \| 2019-11 \| \| Ministry of Defence \| Birmingham Archives, Heritage and Photography Service \| World War Two air raid files for Birmingham, c1939-19942 \| 14/05/2019 \| 201912 \| \|---------------------\|------------------------------------------------------\|--------------------------------------------------------\|------------\|--------\| \| Ministry of Defence \| Commonwealth War Graves Commission \| Military Cemetery and Burial records for service personnel \| 28/05/2019 \| 2019-13 \| \| National Maritime Museum \| Colchester & Ipswich museums \| Pond ouze Point log boat: correspondence, drawings, photographs and research notes, c1960-1980 \| 28/05/2019 \| 2019-14 \| \| Ministry of Defence \| Science Museum \| Royal Aircraft Establishment (RAE) Farnborough: reports, papers, drawings and photographs, 1911-1993 \| 17/06/2019 \| 2019-15 \| \| Ministry of Defence \| National Museum of the Royal Navy \| Admiralty research Establishment (ARE) Portsmouth: plans and drawings, 1908-1985 \| 24/06/2019 \| 2019-16 \| \| Ministry of Defence \| Fleet Air Arm Museum \| Aircraft Carrier Flight Deck Logs, 1979-1981 \| 11/09/2019 \| 2019-17 \| \| Home Office \| West Midlands Police Museum \| Bramshill Police Staff College \| 11/09/2019 \| 2019-18 \| \| Ministry of Defence \| National Army Museum \| Miscellaneous files relating to the Army, 1941-2000 \| 06/11/2019 \| 2019-19 \|	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/2569-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 6, "total-input-tokens": 12454, "total-output-tokens": 1844, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 1478, 1 ], [ 1478, 1891, 2 ], [ 1891, 3840, 3 ], [ 3840, 5068, 4 ], [ 5068, 6264, 5 ], [ 6264, 6387, 6 ] ] }
17fa80181c1d2cad20fef6a71af30e5b20765ab2	HM Revenue & Customs Business Expenses: 1st April - 30 June 2012 Please note: these figures may not include some costs that have yet to be invoiced and will be updated to reflect any additional spend \| DATES \| DESTINATION \| PURPOSE \| TRAVEL \| OTHER (including hospitality given) \| Total Cost \| \|---------------------\|-------------\|--------------------------\|--------\|-------------------------------------\|------------\| \| 11.04.12 & 12.04.12 \| Longbenton \| Departmental Business \| £107.46\| £5.00 \| £177.46 \| \| 16.04.12 \| Lawress Hall\| Staff Event \| £60.13 \| £36.10 \| £96.23 \| \| 17.04.12 \| Oxford \| Departmental Business \| £44.18 \| £7.00 \| £51.18 \| \| 19.04.12 \| Birmingham \| Meeting \| £49.71 \| \| £49.71 \| \| 03.05.12 \| Reading \| Office Visit \| £33.66 \| \| £33.66 \| \| 14.06.12 \| London \| Staff Event \| \| £23.45 \| £23.45 \| \| 16.05.12 & 17.05.12 \| Nottingham \| Departmental Business \| £83.17 \| £4.40 \| £155.57 \| \| 30.05.12 & 31.05.12 \| Telford \| Office Visit \| £52.33 \| £53.10 \| £105.43 \| \| 20.06.12 & 21.06.12 \| Ty Glas \| Office Visit \| £68.62 \| £14.00 \| £145.62 \| HM Revenue & Customs Business Expenses: 1st April - 30 June 2012 Please note: these figures may not include some costs that have yet to be invoiced and will be updated to reflect any additional spend \| DATES \| DESTINATION \| PURPOSE \| TRAVEL \| OTHER (including hospitality given) \| Total Cost \| \|------------------\|-------------\|--------------------------------\|--------\|-------------------------------------\|------------\| \| 30/03/12 - 07/04/12 \| Australia \| Inter-governmental meeting \| £3,489.52 \| £65.06 \| £1,289.76 \| £50 (Personal Expenses) \| £4,894.34 \| \| 18/04/12 - 19/04/12 \| Switzerland \| Speaking Engagement \| £220.00 \| \| £153.89 \| £10 (Personal Expenses) \| £383.89 \| \| 25/04/2012 \| London \| Speaking Engagement \| \| £17.00 \| \| \| £17.00 \| \| 25/04/12 \| London \| Speaking Engagement \| \| £29.00 \| \| \| £29.00 \| \| 26/04/12 - 27/04/12 \| Edinburgh \| Speaking Engagement \| £210.81 \| £24.60 \| £62.00 \| \| £297.41 \| \| 14/05/12 - 15/05/12 \| Switzerland \| Speaking Engagement \| £300.33 \| £4.26 \| \| £10 (Personal Expenses) \| £314.59 \| \| 16/05/12 \| London \| Meeting \| \| £13.00 \| \| \| £13.00 \| \| 17/05/12 \| London \| Speaking Engagement \| \| £16.00 \| \| \| £16.00 \| \| 06/06/12 \| London \| Meeting \| \| £22.00 \| \| \| £22.00 \| \| 15/06/2012 - 16/06/12 \| Netherlands \| Meeting \| £123.53 \| £18.40 \| £11.25 \| £10 (Personal Expenses) \| £163.18 \| \| 21/06/12 - 22/06/12 \| Inverness \| Meeting \| £174.26 \| £148.00 \| £141.67 \| \| £463.93 \| HM Revenue & Customs Business Expenses: 1st April - 30 June 2012 Please note: these figures may not include some costs that have yet to be invoiced and will be updated to reflect any additional spend \| DATES \| DESTINATION \| PURPOSE \| TRAVEL \| OTHER (including hospitality given) \| Total Cost \| \|------------------\|-------------\|---------------\|--------\|-------------------------------------\|------------\| \| 01/05/12 & 02/05/12 \| Edinburgh \| Office Visit \| £208.32 \| £16.00 £97.00 \| £321.32 \| \| 21/05/12 \| Worthing \| Office Visit \| £22.50 \| \| £22.50 \| \| 23/05/12 & 24/05/12 \| East Kilbride \| Office Visit \| £122.54 \| £10.21 £24.00 £99.00 \| £255.75 \| \| 13/06/12 \| Reading \| Meeting \| £10.57 \| \| £10.57 \| \| 14/06/2012 \| London \| Staff event \| \| £23.45 \| £23.45 \| \| 21/06/12 & 22/06/12 \| Lincoln \| Staff Event \| £133.57 \| \| £133.57 \| HM Revenue & Customs Business Expenses: 1st April - 30 June 2012 Please note: these figures may not include some costs that have yet to be invoiced and will be updated to reflect any additional spend \| DATES \| DESTINATION \| PURPOSE \| TRAVEL \| OTHER (including hospitality given) \| Total Cost \| \|-----------\|-------------\|--------------------\|--------\|-------------------------------------\|------------\| \| 04/05/12 \| Salford \| Office Visit \| \| \| £14.80 \| \| 23/05/12 \| Malta \| Departmental Business \| £5.70 \| £391.47 \| £397.17 \| \| 14/06/2012\| London \| Staff event \| \| \| £23.45 \| \| 21/06/12 \| Glasgow \| Office Visit \| £7.00 \| £47.80 \| £54.80 \| HM Revenue & Customs Business Expenses: 1st April - 30 June 2012 Please note: these figures may not include some costs that have yet to be invoiced and will be updated to reflect any additional spend \| DATES \| DESTINATION \| PURPOSE \| TRAVEL \| OTHER (including hospitality given) \| Total Cost \| \|-------------\|-------------------\|---------------\|--------\|-------------------------------------\|------------\| \| 13/04/12 \| Crawley \| Office Visit \| \| \| £76.50 \| \| 26&27/04/12 \| Liverpool \| Office Visit \| £178.00\| £19.45 £69.99 \| £267.44 \| \| 10/02/12 \| Carmarthen \| Office Visit \| £222.92\| \| £302.92 \| \| 14/05/12 \| Lincoln \| Staff Event \| £166.50\| £74.00 \| £24.50 \| \| 16/05/12 \| Nottingham \| Staff Event \| £104.72\| £5.00 £85.00 \| £194.72 \| \| 17&18/05/12 \| Newcastle \| Staff Event \| £87.98 \| £78.08 £20.00 £106.35 \| £292.41 \| \| 25/05/12 \| Bournemouth \| Office Visit \| £35.55 \| \| £35.55 \| \| 14/06/12 \| London \| Staff Event \| \| \| £23.45 \| \| 14/06/12 \| Lincoln \| Staff Event \| £92.72 \| £25.00 £74.00 \| £191.72 \| \| 18&19/06/12 \| Manchester \| Staff Event \| £81.39 \| £5.80 £80.00 \| £167.19 \| \| 20-22/06/12 \| Birmingham and Solihull \| Office Visit \| £98.12 \| £13.20 £144.00 \| £255.32 \| \| 25/06/12 \| London \| Staff Event \| \| \| £4.00 \| HM Revenue & Customs Business Expenses: 1st April - 30 June 2012 Please note: these figures may not include some costs that have yet to be invoiced and will be updated to reflect any additional spend \| DATES \| DESTINATION \| PURPOSE \| TRAVEL \| OTHER (including hospitality given) \| Total Cost \| \|-------------\|-------------\|-------------\|--------\|-------------------------------------\|------------\| \| \| \| \| Air \| Rail \| Taxi/Car/Other \| Accommodation/Meals \| \| \| 18/4/12-19/4/12 \| Preston \| Staff Event \| £87.36 \| £43.00 \| £137.05 \| £267.41 \| \| 25/04/12 \| Preston \| Meeting \| £79.09 \| £40.50 \| £7.60 \| £127.19 \| \| 26/4/12-27/4/12 \| Belfast \| Meeting \| £170.19 \| £83.70 \| £111.00 \| £364.89 \| \| 15/5/12-17/5/12 \| Preston \| Meeting \| £75.16 \| £36.00 \| £125.55 \| £236.71 \| HM Revenue & Customs Business Expenses: 1st April - 30 June 2012 Please note: these figures may not include some costs that have yet to be invoiced and will be updated to reflect any additional spend \| DATES \| DESTINATION \| PURPOSE \| TRAVEL \| OTHER (including hospitality given) \| Total Cost \| \|-------------\|----------------------\|--------------------------\|--------\|-------------------------------------\|------------\| \| \| \| \| Air \| Rail \| \| \| 16/04/12 \| Lincoln \| Speaking Engagement \| £118.19\| £7.78 \| £125.95 \| \| 18/04/12 \| London \| Meeting \| £4.00 \| \| £4.00 \| \| 19/04/12 \| London \| Conference \| £24.00 \| £150.00 \| £174.00 \| \| 24/04/12 \| London \| Meeting \| £15.00 \| \| £15.00 \| \| 25/04/12 \| London/Southend \| Office Visit \| £34.00 \| \| £34.00 \| \| 2-3 May 2012\| Newcastle \| Office Visit \| £248.99\| £29.00 \| £313.69 \| \| 8-10 May 2012\| Telford/Shipley \| Office Visit \| £267.55\| £161.86 \| £429.41 \| \| 15/05/12 \| Kent \| Office Visit \| £211.37\| £7.89 \| £219.26 \| \| 16 - 17 May 2012\| Liverpool,Salford,Stoc \| Office Visit \| £72.10 \| £63.58 \| £135.68 \| \| 23/05/12 \| London \| Speaking Engagement \| £16.00 \| \| £16.00 \| \| 31/05/12 \| Telford \| Office Visit \| £201.90\| £4.45 \| £206.35 \| \| 16/06/2012 \| London \| Staff event \| \| \| £23.45 \| \| 20 - 21 June 2012\| Croydon/Worthing \| Speaking Engagement \| £177.41\| \| £177.41 \| \| 22/06/12 \| London \| Meeting \| £13.00 \| \| £13.00 \| \| 28 - 29 June 2012\| Telford \| Staff Event \| £159.96\| £87.70 \| £247.66 \| HM Revenue & Customs Business Expenses: 1st April - 30 June 2012 Please note: these figures may not include some costs that have yet to be invoiced and will be updated to reflect any additional spend \| DATES \| DESTINATION \| PURPOSE \| TRAVEL \| OTHER (including hospitality given) \| Total Cost \| \|-----------\|-------------\|--------------------\|--------\|-------------------------------------\|------------\| \| \| \| \| Air \| Rail \| \| \| \| \| \| Taxi/Car/Other \| Accommodation/Meals \| \| \| 11/04/12 \| Newcastle \| Staff Event \| £169.72\| £5.50 \| £265.72 \| \| 16/04/12 \| Worthing \| Staff Event \| £35.94 \| \| £35.94 \| \| 20/04/2012\| Lincoln \| Departmental Business \| £65.23\| £12.00 \| £77.23 \| \| 14/06/2012\| London \| Staff Event \| \| £23.45 \| £23.45 \| \| 29/06/12 \| Manchester \| Conference \| £108.63\| \| £108.63 \| HM Revenue & Customs Business Expenses: 1st April - 30 June 2012 Please note: these figures may not include some costs that have yet to be invoiced and will be updated to reflect any additional spend \| DATES \| DESTINATION \| PURPOSE \| TRAVEL \| OTHER (including hospitality given) \| Total Cost \| \|----------\|-------------\|--------------------\|--------\|-------------------------------------\|------------\| \| 24/04/12 \| Manchester \| Staff Event \| £140.62\| \| £140.62 \| \| 25/05/12 \| Lincoln \| Speaking Engagement\| £55.53 \| \| £55.53 \| \| 14/06/2012 \| London \| Staff event \| \| £23.45 \| £23.45 \| \| 18/06/12 \| Dorset \| Speaking Engagement\| £24.00 \| \| £24.00 \| HM Revenue & Customs Business Expenses: 1st April - 30 June 2012 Please note: these figures may not include some costs that have yet to be invoiced and will be updated to reflect any additional spend \| DATES \| DESTINATION \| PURPOSE \| TRAVEL \| OTHER (including hospitality given) \| Total Cost \| \|-------------\|-------------\|-------------\|--------\|-------------------------------------\|------------\| \| \| \| \| Air \| Rail \| \| \| 17/18 April 2012 \| Lincoln \| Conference \| £63.53 \| £57.00 \| £120.53 \| \| 14/06/12 \| London \| Staff event \| \| £23.45 \| £23.45 \| HM Revenue & Customs Business Expenses: 1st April - 30 June 2012 Please note: these figures may not include some costs that have yet to be invoiced and will be updated to reflect any additional spend \| DATES \| DESTINATION \| PURPOSE \| TRAVEL \| OTHER (including hospitality given) \| Total Cost \| \|---------\|-------------\|-----------\|--------\|-------------------------------------\|------------\| \| \| \| \| Air \| Rail \| Taxi/Car/Other \| Accommodation/Meals \| \| \| \| 09/05/12\| London \| Meeting \| \| \| £57.35 \| \| £57.35 \| \| 30/05/12\| Ipswich \| Office Visit \| £23.00 \| \| \| \| £23.00 \| HM Revenue & Customs Business Expenses: 1st April - 30 June 2012 Please note: these figures may not include some costs that have yet to be invoiced and will be updated to reflect any additional spend \| DATES \| DESTINATION \| PURPOSE \| TRAVEL \| OTHER (including hospitality given) \| Total Cost \| \|---------\|-------------\|---------\|--------\|-------------------------------------\|------------\| \| 09/05/12 \| London \| Meeting \| \| £57.35 \| £57.35 \| HM Revenue & Customs Business Expenses: 1st April - 30 June 2012 Please note: these figures may not include some costs that have yet to be invoiced and will be updated to reflect any additional spend \| IAN BARLOW, NON-EXECUTIVE DIRECTOR \| \|-----------------------------------\| \| DATES \| DESTINATION \| PURPOSE \| TRAVEL \| OTHER (including hospitality given) \| Total Cost \| \| \| \| \| Air \| Rail \| Taxi/Car/Other \| Accommodation/Meals \| \| \| Nil \| \| \| \| \| \| \| \| HM Revenue & Customs Business Expenses: 1st April - 30 June 2012 Please note: these figures may not include some costs that have yet to be invoiced and will be updated to reflect any additional spend \| DATES \| DESTINATION \| PURPOSE \| TRAVEL \| OTHER (including hospitality given) \| Total Cost \| \|---------\|-------------\|-------------\|--------\|-------------------------------------\|------------\| \| \| \| \| Air \| Rail \| Taxi/Car/Other \| Accommodation/Meals \| \| \| 03/04/12 \| London \| Meeting \| \| \| £17.20 \| \| £17.20 \| \| 11/04/12 \| London \| Meeting \| \| \| £60.00 \| \| £60.00 \| \| 08/05/12 \| London \| HMRC Board \| £16.30 \| \| £27.40 \| \| £43.70 \| \| 09/05/12 \| London \| Meeting \| £10.45 \| \| £43.00 \| £57.35 \| £110.80 \| \| 16/05/12 \| London \| Meeting \| £16.30 \| \| £40.20 \| \| £56.50 \| \| 11/06/12 \| London \| HMRC Board \| £16.30 \| \| £49.00 \| \| £65.30 \| \| 14/06/12 \| London \| Meeting \| £12.75 \| \| £14.00 \| \| £26.75 \| \| 18/06/12 \| London \| Meeting \| £9.00 \| \| £34.60 \| \| £43.60 \| - John Spence is registered blind, therefore the expenses claimed are higher than that of the other Non Executive Directors. HM Revenue & Customs Business Expenses: 1st April - 30 June 2012 Please note: these figures may not include some costs that have yet to be invoiced and will be updated to reflect any additional spend \| DATES \| DESTINATION \| PURPOSE \| TRAVEL \| OTHER (including hospitality given) \| Total Cost \| \|---------\|-------------\|---------\|--------\|-------------------------------------\|------------\| \| 09/05/12 \| London \| Meeting \| \| £57.35 \| £57.35 \| HM Revenue & Customs Business Expenses: 1st April - 30 June 2012 Please note: these figures may not include some costs that have yet to be invoiced and will be updated to reflect any additional spend \| DATES \| DESTINATION \| PURPOSE \| TRAVEL \| OTHER (including hospitality given) \| Total Cost \| \|---------\|-------------\|---------\|--------\|-------------------------------------\|------------\| \| 09/05/12 \| London \| Meeting \| \| £57.35 \| £57.35 \| PHILIPPA HIRD, NON-EXECUTIVE DIRECTOR	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/2570-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 16, "total-input-tokens": 22443, "total-output-tokens": 6067, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 1577, 1 ], [ 1577, 3508, 2 ], [ 3508, 4609, 3 ], [ 4609, 5468, 4 ], [ 5468, 7235, 5 ], [ 7235, 8093, 6 ], [ 8093, 10553, 7 ], [ 10553, 11724, 8 ], [ 11724, 12574, 9 ], [ 12574, 13299, 10 ], [ 13299, 14059, 11 ], [ 14059, 14550, 12 ], [ 14550, 15114, 13 ], [ 15114, 16619, 14 ], [ 16619, 17110, 15 ], [ 17110, 17639, 16 ] ] }
098bd105555823489cf74029b97d58b603ade8bf	HM Revenue & Customs Business Expenses: 1st January 2012 - 31st March 2012 Please note: these figures may not include some costs that have yet to be invoiced and will be updated to reflect any additional spend \| DATES \| DESTINATION \| PURPOSE \| TRAVEL \| OTHER (including hospitality given) \| Total Cost \| \|-------------\|-------------\|---------------\|--------\|-------------------------------------\|------------\| \| \| \| \| Air \| Rail \| \| \| \| \| \| \| Taxi/Car/Other \| \| \| \| \| \| \| Accommodation/Meals \| \| \| 24/01/12 \| Croydon \| Office Visit \| £8.50 \| \| £8.50 \| \| 03/02/12 \| Portsmouth \| Office Visit \| £31.70 \| \| £31.70 \| \| 09/02/12 \| Preston \| Office Visit \| £126.43\| \| £126.43 \| \| 21/02/12 \| Cumbernauld \| Office Visit \| £242.83\| \| £242.83 \| \| 09/03/2012 \| London \| Conference \| \| £27.60 \| £27.60 \| \| 12/03/12 & 13/03/12 \| Nottingham \| HMRC Board \| £136.16 \| £96.00 \| £232.16 \| \| 28/03/12 & 29/03/12 \| Leeds \| Office Visit \| £95.48 \| £180.00 \| £275.48 \| HM Revenue & Customs Business Expenses: 1st January 2012 - 31st March 2012 Please note: these figures may not include some costs that have yet to be invoiced and will be updated to reflect any additional spend \| DATES \| DESTINATION \| PURPOSE \| TRAVEL \| OTHER (including hospitality given) \| Total Cost \| \|-------------\|-------------\|--------------------------\|--------\|-------------------------------------\|------------\| \| \| \| \| Air \| Rail \| \| \| \| \| \| Taxi/Car/Other \| Accommodation/Meals \| \| \| 11/01/12 \| Birmingham \| Office Visit \| £29.65 \| £10.00 \| £39.65 \| \| 14/01/12-21/01/12 \| Argentina \| Conference \| £1,461.50 \| £147.70 \| £810.92 \| £50.00 (Personal Expenses) \| £2,470.12 \| \| 23/01/12 \| London \| Speaking Engagement \| £18.00 \| \| \| \| 25/01/12-26/01/12 \| France \| Conference \| £272.00 \| £38.13 \| £123.30 \| £10.00 (Personal Expenses) \| £443.43 \| \| 26/01/12 \| London \| Staff Event \| £11.00 \| \| \| \| 30/01/12 \| London \| Departmental Business \| £15.00 \| \| \| \| 02/02/12 \| London \| Speaking Engagement \| £21.00 \| \| \| \| 07/02/12-08/02/12 \| Liechtenstein \| Inter-governmental meeting \| £197.41 \| £25.00 \| £144.74 \| £10.00 (Personal Expenses) \| £377.15 \| \| 13/02/12 \| London \| Departmental Business \| £12.00 \| \| \| \| 14/02/12-17/02/12 \| USA \| Speaking Engagement \| £41.96 \| £49.45 \| £20.00 (Personal Expenses) \| £111.41 \| \| 28/02/12 \| London \| Speaking Engagement \| £12.00 \| \| \| \| 06/03/12 \| London \| Departmental Business \| £23.00 \| \| \| \| 09/03/2012 \| London \| Conference \| £27.60 \| \| £27.60 \| \| 13/03/12 \| Nottingham \| HMRC Board \| £21.00 \| £35.00 \| £56.00 \| \| 19/03/12 \| London \| Meeting \| £15.00 \| \| £15.00 \| \| 20/03/12 \| Belgium \| Departmental Business \| £179.00 \| £58.13 \| £55.37 \| \| £292.50 \| HM Revenue & Customs Business Expenses: 1st January 2012 - 31st March 2012 Please note: these figures may not include some costs that have yet to be invoiced and will be updated to reflect any additional spend \| DATES \| DESTINATION \| PURPOSE \| TRAVEL \| OTHER (including hospitality given) \| Total Cost \| \|----------------\|-------------\|------------------\|--------\|-------------------------------------\|------------\| \| \| \| \| Air \| Rail \| Taxi/Car/Other \| Accommodation/Meals \| \| \| 12/01/12 \| Solihull \| Office Visit \| £30.80 \| \| \| \| £30.80 \| \| 19/01/12 \| Peterborough\| Meeting \| £10.50 \| \| \| \| £10.50 \| \| 24/01/12 & 25/01/2012 \| Telford \| Office Visit \| £131.70 \| \| \| £98.50 \| £230.20 \| \| 08/02/12 & 09/02/2012 \| Liverpool \| Office Visit \| £133.10 \| £17.50 \| \| £90.00 \| £240.60 \| \| 14/02/12 \| Bradford \| Office Visit \| £62.00 \| \| \| \| £62.00 \| \| 27/02/12 \| Stockton \| Office Visit \| £112.00 \| \| \| \| £112.00 \| \| 28/02/12 & 29/02/2012 \| Telford \| Staff Event \| £132.70 \| \| \| £78.00 \| £210.70 \| \| 12/03/2012 & 13/03/12 \| Nottingham \| HMRC Board \| £63.00 \| \| \| £96.00 \| £159.00 \| \| 15/03/12 \| Peterborough\| Meeting \| £29.50 \| \| \| \| £29.50 \| \| 26/03/2012 & 27/03/12 \| Lincoln \| Departmental Business \| £160.60 \| £50.00 \| \| \| £210.60 \| \| 28/03/12 \| Leeds \| Office Visit \| £112.50 \| £28.00 \| \| \| £140.50 \| HM Revenue & Customs Business Expenses: 1st January 2012 - 31st March 2012 Please note: these figures may not include some costs that have yet to be invoiced and will be updated to reflect any additional spend \| DATES \| DESTINATION \| PURPOSE \| TRAVEL \| OTHER (including hospitality given) \| Total Cost \| \|-------------\|-----------------\|--------------------------------\|--------\|-------------------------------------\|------------\| \| 11/01/12 \| Wolverhampton \| Office Visit \| £166.00\| £11.00 \| £177.00 \| \| 19/01/12 \| London \| Conference \| \| \| £6.50 \| \| 13/02/12 \| Dover \| Office Visit \| £36.30 \| \| £36.30 \| \| 28/02-29/02/12 \| Brussels \| Steering group for European Commission \| £19.05 \| £152.08 \| £394.53 \| £565.66 \| \| 09/03/2012 \| London \| Conference \| \| \| £27.60 \| £27.60 \| \| 18/03-22/03/12 \| Copenhagen \| Seminar with Danish Customs \| £61.59 \| £31.31 \| £742.70 \| £835.60 \| \| 22/03-24/03/12 \| Kyiv \| Visit to Ukraine State Customs Service \| £405.23 \| £73.77 \| £479.00 \| HM Revenue & Customs Business Expenses: 1st January 2012 - 31st March 2012 Please note: these figures may not include some costs that have yet to be invoiced and will be updated to reflect any additional spend \| DATES \| DESTINATION \| PURPOSE \| TRAVEL \| OTHER (including hospitality) \| Total Cost \| \|---------------------\|-------------------\|---------------\|--------\|-------------------------------\|------------\| \| \| \| \| Air \| Rail \| Taxi/Car/Other \| Accommodation/Meals \| \| \| \| 10/01/12 \| London \| Meeting \| £3.80 \| \| \| \| £3.80 \| \| 13/01/12 \| Southend \| Office Visit \| \| £17.00 \| \| \| £17.00 \| \| 19/01/2012 - 20/01/2012 \| Lincoln \| Conference \| \| \| £169.20 \| £74.00 \| £243.20 \| \| 26/01/12 \| London \| Staff Event \| £3.80 \| \| \| \| £3.80 \| \| 27/01/12 \| Croydon \| Staff Event \| \| £8.20 \| \| \| £8.20 \| \| 06/02/12 \| London \| Conference \| £3.80 \| \| \| \| £3.80 \| \| 15/02/12 \| London \| Office Visit \| £3.80 \| \| \| \| £3.80 \| \| 15/02/2012 - 16/02/2012 \| Manchester \| Office Visit \| £207.00 \| \| \| \| £273.00 \| \| 02/03/12 \| London \| Meeting \| £3.80 \| \| \| \| £3.80 \| \| 09/03/12 \| London \| Meeting \| £3.80 \| \| \| \| £3.80 \| \| 12/03/2012 - 13/03/2012 \| Nottingham & Leicester \| HMRC Board \| £107.46 \| \| \| \| £203.46 \| \| 15/03/12 \| Warwick \| Conference \| £126.00 \| \| £28.00 \| \| £154.00 \| \| 28/03/2012 & 29/03/2012 \| Leeds \| Conference \| £121.10 \| \| \| \| £301.10 \| HM Revenue & Customs Business Expenses: 1st January 2012 - 31st March 2012 Please note: these figures may not include some costs that have yet to be invoiced and will be updated to reflect any additional spend \| DATES \| DESTINATION \| PURPOSE \| TRAVEL \| OTHER (including hospitality given) \| Total Cost \| \|-------------\|-------------------\|---------------\|--------\|-------------------------------------\|------------\| \| \| \| \| Air \| Rail \| \| \| \| \| \| Taxi/Car/Other \| Accommodation/Meals \| \| \| \| \| \| \| \| \| \| 05/01/12 \| Preston \| Staff Event \| £70.60 \| £17.40 \| £7.85 \| £95.85 \| \| 10/01/12 \| Preston \| Meeting \| £62.60 \| £22.40 \| £7.85 \| £92.85 \| \| 18/01/12-19/01/12 \| Preston \| Meeting \| £98.85 \| £37.70 \| £52.00 \| £215.20 \| £403.75 \| \| 26/01/12 \| Belfast \| Meeting \| £102.53\| £37.59 \| £16.52 \| £156.64 \| \| 14/02/12 \| Preston \| Meeting \| £80.60 \| £36.00 \| £4.50 \| £121.10 \| \| 15/02/12-17/02/12 \| Newcastle/Portsmouth \| Staff Event \| £125.48 \| £115.00 \| £27.00 \| £123.35 \| £390.83 \| \| 28/02/12-29/02/12 \| Liverpool \| Staff Event \| £188.70\| £5.00 \| £75.90 \| £269.60 \| \| 09/03/2012 \| London \| Conference \| \| \| £27.60 \| £27.60 \| \| 14/03/12 \| Preston \| Staff Event \| £80.60 \| £17.40 \| £8.15 \| £106.15 \| \| 21/03/12-22/03/12 \| Preston/Warrington \| Meeting \| £65.26 \| £64.40 \| £88.39 \| £218.05 \| \| 29/03/12 \| Washington \| Staff Event \| £174.39\| £64.00 \| £7.87 \| £246.26 \| HM Revenue & Customs Business Expenses: 1st January 2012 - 31st March 2012 Please note: these figures may not include some costs that have yet to be invoiced and will be updated to reflect any additional spend \| DATES \| DESTINATION \| PURPOSE \| TRAVEL \| OTHER (including hospitality given) \| Total Cost \| \|-----------\|-------------\|---------------\|--------\|-------------------------------------\|------------\| \| \| \| \| Air \| Rail \| Taxi/Car/Other \| Accommodation/Meals \| \| \| 17/01/12 \| London \| Meeting \| \| \| £12.00 \| \| £12.00 \| \| 18/01/12 \| London \| Meeting \| \| \| £4.00 \| \| £4.00 \| \| 16/02/12 \| Worthing \| Office Visit \| \| \| £27.50 \| \| £27.50 \| \| 23/02/12 \| London \| Conference \| \| \| £8.00 \| \| £8.00 \| \| 24/02/12 \| London \| Meeting \| \| \| £9.00 \| \| £9.00 \| \| 01/03/12 \| London \| Meeting \| \| \| £4.00 \| £22.00 \| £26.00 \| \| 09/03/2012\| London \| Conference \| \| \| \| £27.60 \| £27.60 \| \| 12-13/03/2012\| Nottingham \| HMRC Board \| \| \| £172.76 \| £5.38 \| £178.14 \| \| 16/03/12 \| London \| Meeting \| \| \| £4.00 \| \| £4.00 \| \| 19/03/12 \| London \| Meeting \| \| \| £4.00 \| \| £4.00 \| \| 20/03/12 \| Heathrow \| Departmental Business \| \| \| £52.00 \| \| £52.00 \| HM Revenue & Customs Business Expenses: 1st January 2012 - 31st March 2012 Please note: these figures may not include some costs that have yet to be invoiced and will be updated to reflect any additional spend \| DATES \| DESTINATION \| PURPOSE \| TRAVEL \| OTHER (including hospitality given) \| Total Cost \| \|-------------\|-------------\|---------------\|--------\|-------------------------------------\|------------\| \| \| \| \| Air \| Rail \| Taxi/Car/Other \| Accommodation/Meals \| \| \| 21/02/12 \| Liverpool \| Office Visit \| £75.46 \| \| \| \| £75.46 \| \| 05/03/12 \| Manchester \| Office Visit \| £76.94 \| \| \| \| £76.94 \| \| 09/03/2012 \| London \| Conference \| \| \| \| £27.60 \| £27.60 \| \| 12/03/12 \| Leicester \| Office Visit \| £72.92 \| \| \| £96.00 \| £168.92 \| \| 13/03/12 \| Nottingham \| Office Visit \| £56.44 \| \| \| \| £56.44 \| \| 19/03/12 \| Cumbernauld \| Office Visit \| £147.61\| \| £72.00 \| \| £219.61 \| \| 22&23/03/12 \| Lincoln \| Conference \| £69.96 \| \| \| \| £69.96 \| HM Revenue & Customs Business Expenses: 1st January 2012 - 31st March 2012 Please note: these figures may not include some costs that have yet to be invoiced and will be updated to reflect any additional spend \| DATES \| DESTINATION \| PURPOSE \| TRAVEL \| OTHER (including hospitality given) \| Total Cost \| \|-----------\|-------------\|--------------------\|--------\|-------------------------------------\|------------\| \| 14/02/12 \| Ipswich \| Departmental Business \| £40.50 \| \| £40.50 \| \| 20/02/12 \| Manchester \| Departmental Business \| £163.10 \| \| £163.10 \| \| 09/03/2012\| London \| Conference \| \| £27.60 \| £27.60 \| HM Revenue & Customs Business Expenses: 1st January 2012 - 31st March 2012 Please note: these figures may not include some costs that have yet to be invoiced and will be updated to reflect any additional spend \| DATES \| DESTINATION \| PURPOSE \| TRAVEL \| OTHER (including hospitality given) \| Total Cost \| \|-------------\|-------------\|--------------------------\|--------\|-------------------------------------\|------------\| \| \| \| \| Air \| Rail \| \| \| 09/01/12 \| Newcastle \| Staff Event \| £88.04 \| £6.85 \| £94.89 \| \| 14/02/12 \| Croydon \| Office Visit \| £6.50 \| \| £6.50 \| \| 23 & 24/2/12\| Lincoln \| Speaking Engagement \| £49.22 \| \| £49.22 \| \| 1 & 2/3/12 \| Birmingham \| Departmental Business \| £42.38 \| £133.00 \| £175.38 \| \| 09/03/2012 \| London \| Conference \| \| £27.60 \| £27.60 \| \| 12 & 13/3/12\| Nottingham \| HMRC Board \| £105.50\| £96.00 \| £201.50 \| £527.44 HM Revenue & Customs Business Expenses: 1st January 2012 - 31st March 2012 Please note: these figures may not include some costs that have yet to be invoiced and will be updated to reflect any additional spend \| DATES \| DESTINATION \| PURPOSE \| TRAVEL \| OTHER (including hospitality given) \| Total Cost \| \|---------\|-------------\|---------------\|--------\|-------------------------------------\|------------\| \| \| \| \| Air \| Rail \| Taxi/Car/Other \| Accommodation/Meals \| \| \| 14/02/12 \| Peterborough \| Office Visit \| £23.50 \| £13.00 \| £36.50 \| \| \| 28/02/12 \| London \| Meeting \| \| \| £28.00 \| \| \| 12/03/12 \| Nottingham \| HMRC Board \| £123.40 \| £96.00 \| £219.40 \| \| \| 13/03/12 \| Nottingham \| HMRC Board \| £54.50 \| \| \| \| HM Revenue & Customs Business Expenses: 1st January 2012 - 31st March 2012 Please note: these figures may not include some costs that have yet to be invoiced and will be updated to reflect any additional spend \| DATES \| DESTINATION \| PURPOSE \| TRAVEL \| OTHER (including hospitality given) \| Total Cost \| \|---------\|-------------\|---------------\|--------\|-------------------------------------\|------------\| \| 12/03/12 \| Nottingham \| HMRC Board \| £109.20\| £96.00 \| £205.20 \| HM Revenue & Customs Business Expenses: 20th February 2012 - 31st March 2012 Please note: these figures may not include some costs that have yet to be invoiced and will be updated to reflect any additional spend \| DATES \| DESTINATION \| PURPOSE \| TRAVEL \| OTHER (including hospitality given) \| Total Cost \| \|---------\|-------------\|---------------\|--------\|-------------------------------------\|------------\| \| 12/03/12 \| Nottingham \| HMRC Board \| £66.00 \| £96.00 \| £162.00 \| HM Revenue & Customs Business Expenses: 1st January 2012 - 31st March 2012 Please note: these figures may not include some costs that have yet to be invoiced and will be updated to reflect any additional spend \| DATES \| DESTINATION \| PURPOSE \| TRAVEL \| OTHER (including hospitality given) \| Total Cost \| \|---------\|-------------\|---------------\|--------\|-------------------------------------\|------------\| \| \| \| \| Air \| Rail \| Taxi/Car/Other \| Accommodation/Meals \| \| \| 10/01/12\| London \| HMRC Board \| \| \| £130.00 \| \| £130.00 \| \| 17/01/12\| London \| Meeting \| \| \| £110.00 \| \| £110.00 \| \| 23/02/12\| London \| Meeting \| \| \| £130.00 \| \| £130.00 \| \| 12/03/12\| London \| HMRC Board \| £54.50 \| £37.00 \| £96.00 \| \| £187.50 \| \| 19/03/12\| London \| Meeting \| \| \| £110.00 \| \| £110.00 \| - John Spence is registered blind, therefore the expenses claimed are higher than that of the other Non Executive Directors. HM Revenue & Customs Business Expenses: 1st January 2012 - 31st March 2012 Please note: these figures may not include some costs that have yet to be invoiced and will be updated to reflect any additional spend \| DATES \| DESTINATION \| PURPOSE \| TRAVEL \| OTHER (including hospitality given) \| Total Cost \| \|---------\|-------------\|---------\|--------\|-------------------------------------\|------------\| \| 24/01/11 \| London \| Meeting \| Air £22.30 \| Rail £4.50 \| \| £26.80 \| HM Revenue & Customs Business Expenses: 1st January 2012 - 31st March 2012 Please note: these figures may not include some costs that have yet to be invoiced and will be updated to reflect any additional spend \| DATES \| DESTINATION \| PURPOSE \| TRAVEL \| OTHER (including hospitality given) \| Total Cost \| \|---------\|-------------\|---------------\|--------\|-------------------------------------\|------------\| \| 12/03/12 \| Nottingham \| HMRC Board \| £101.50 \| £96.00 \| £197.50 \|	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/2571-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 16, "total-input-tokens": 24024, "total-output-tokens": 7225, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 1431, 1 ], [ 1431, 3865, 2 ], [ 3865, 5792, 3 ], [ 5792, 7201, 4 ], [ 7201, 9476, 5 ], [ 9476, 11638, 6 ], [ 11638, 13393, 7 ], [ 13393, 14734, 8 ], [ 14734, 15468, 9 ], [ 15468, 16735, 10 ], [ 16735, 17584, 11 ], [ 17584, 18103, 12 ], [ 18103, 18624, 13 ], [ 18624, 19844, 14 ], [ 19844, 20363, 15 ], [ 20363, 20882, 16 ] ] }
733f7d038285d796fe377afc9dd0513fd12241dc	HM Revenue & Customs business expenses: 1 July – 30 September 2011 Please note – these figures may not include some costs that have yet to be invoiced and will be updated to reflect any additional spend. \| DATES \| DESTINATION \| PURPOSE \| TRAVEL \| OTHER (Including Hospitality Received/Given) \| Total Cost £ \| \|-------\|-------------\|---------\|--------\|---------------------------------------------\|--------------\| \| \| \| \| Air \| Rail \| Taxi/Car/Other \| Accommodation/Meals \| \| NIL RETURN \| DATES \| DESTINATION \| PURPOSE \| TRAVEL \| OTHER (Including Hospitality Received/Given) \| Total Cost £ \| \|---------\|-------------\|--------------------------------\|-----------------\|---------------------------------------------\|--------------\| \| 01/07/11 \| London \| Conference \| Air: £13.00 \| \| £13.00 \| \| 04/07/11 \| France \| Inter-Governmental Meeting \| Rail: £13.00 \| \| £469.36 \| \| 06/07/11 \| Hull \| Office Visit \| Taxi/Car/Other: £374.41 \| \| £53.98 \| \| 13/07/11 \| York \| Office Visit \| Accommodation/Meals: £58.71 \| \| £66.00 \| \| 24/08/11 - 25/08/11 \| Switzerland \| Inter-Governmental Meeting \| £439.65 \| £68.14 \| £31.00 \| £116.78 \| Personal Expenses - £10 \| £665.57 \| \| 05/09/11 \| Cambridge \| Speaking Engagement \| £30.50 \| £27.40 \| £57.90 \| \| 08/09/11 \| London \| Speaking Engagement \| £11.00 \| \| £11.00 \| \| 13/09/11 \| London \| Speaking Engagement \| £17.00 \| \| £17.00 \| \| 14/09/11 \| Liechtenstein \| Inter-Governmental Meeting \| £231.01 \| \| \| \| £231.01 \| \| 15/09/11 \| London \| Speaking Engagement \| £39.00 \| \| £39.00 \| \| 26/09/11 \| Lincoln \| Speaking Engagement \| £43.36 \| £74.00 \| £117.36 \| \| DATES \| DESTINATION \| PURPOSE \| TRAVEL \| OTHER (Including Hospitality Received/Given) \| Total Cost £ \| \|-------------\|-------------\|------------------\|--------------\|---------------------------------------------\|--------------\| \| 05/07/11 - 07/07/11 \| Dundee \| Office Visit \| £254.49 \| £19.10 \| £7.00 \| £175.20 \| £455.79 \| \| 15/07/11 \| Leicester \| Office Visit \| £76.50 \| \| \| \| £76.50 \| \| 25/07/11 \| Leicester \| Office Visit \| £85.10 \| £7.00 \| \| \| £92.10 \| \| 03/08/11 - 04/08/11 \| Lincoln \| Departmental Business \| £38.65 \| \| \| \| £38.65 \| \| 08/08/11 - 09/08/11 \| Liverpool \| Office Visit \| £125.50 \| £9.00 \| £85.00 \| \| £219.50 \| \| 29/09/11 - 30/09/11 \| Lincoln \| Departmental Business \| £107.30 \| \| \| \| £107.30 \| \| DATES \| DESTINATION \| PURPOSE \| TRAVEL \| OTHER (Including Hospitality Received/Given) \| Total Cost £ \| \|-----------\|-------------\|------------------\|--------\|---------------------------------------------\|--------------\| \| 05/07/11 \| London \| Staff Event \| \| \| £6.00 \| \| 06/07/11 \| London \| Departmental Business \| \| \| £47.97 \| \| 06/07/11 \| St Austell \| Staff Event \| £132.96\| \| £132.96 \| \| 12/07/11 \| Preston \| Departmental Business \| \| \| £149.92 \| \| 19/07/11 - 20/07/11 \| Preston/ Netherton \| Meeting \| £46.02 \| £36.20 \| £110.80 \| £193.02 \| \| 21/07/11 \| Preston \| Departmental Business \| \| \| £78.42 \| \| 25/07/11 \| Preston \| Meeting \| £92.11 \| £17.40 \| \| £109.51 \| \| 28/07/11 - 29/07/11 \| Belfast \| Staff Event \| £246.18 \| £87.00 \| £97.00 \| £430.18 \| \| 01/08/11 \| Preston \| Meeting \| £87.96 \| £21.40 \| \| £109.36 \| \| 03/08/11 \| Middlesbrough \| Departmental Visit \| £126.39 \| £62.42 \| £35.00 \| £8.95 \| £232.76 \| \| 10/08/11 - 11/08/11 \| Preston \| Staff Event \| £75.26 \| £20.00 \| £12.00 \| £107.26 \| \| 16/08/11 - 18/08/11 \| Preston \| Departmental Business \| £116.96 \| £42.50 \| £100.30 \| \| Date \| Location \| Event \| Amount 1 \| Amount 2 \| Amount 3 \| \|------------\|----------\|-------------\|----------\|----------\|----------\| \| 22/08/11 - 23/08/11 \| Preston \| Meeting \| £125.72 \| £20.50 \| £63.00 \| \| 13/09/11 \| Preston \| Meeting \| £88.92 \| £27.40 \| \| \| 21/09/11 \| Preston \| Meeting \| £67.61 \| £17.40 \| £3.50 \| \| 28/09/11 - 29/09/11 \| Preston \| Staff Event \| £82.46 \| £68.70 \| £92.80 \| \| DATES \| DESTINATION \| PURPOSE \| TRAVEL \| OTHER (Including Hospitality Received/Given) \| Total Cost £ \| \|---------\|-------------\|-----------------------\|--------\|---------------------------------------------\|--------------\| \| \| \| \| Air \| Rail \| Taxi/Car/Other \| Accommodation/Meals \| \| \| 05/07/11 \| London \| Meeting \| \| \| £20.00 \| \| £20.00 \| \| 11/07/11 \| Oxford \| Speaking Engagement \| £22.46 \| £40.00 \| \| £62.46 \| \| 25/07/11 \| Bournemouth \| Office Visit \| £29.96 \| \| \| £29.96 \| \| 04/08/11 \| Harwich \| Office Visit \| £31.50 \| \| \| £31.50 \| \| 08/08/11 \| Lincoln \| Speaking Engagement \| £25.61 \| \| \| £25.61 \| \| 09/08/11 \| London \| Departmental Business \| \| \| £7.00 \| \| £7.00 \| \| 15/09/11 \| Manchester \| Office Visit \| £133.96\| \| \| £133.96 \| \| DATES \| DESTINATION \| PURPOSE \| TRAVEL \| OTHER (Including Hospitality Received/Given) \| Total Cost £ \| \|------------\|-------------\|-------------\|--------\|---------------------------------------------\|--------------\| \| 08/07/11 \| London \| Meeting \| \| \| £3.80 \| \| 09/08/11 \| London \| Conference \| \| \| £3.80 \| \| 12/08/11 \| Worthing \| Staff Visit \| \| \| £18.60 \| \| 17/08/11 - 18/08/11 \| Aberdeen \| Staff Visit \| £88.00 \| £47.20 \| £90.00 \| £225.20 \| \| 24/08/11 \| Belfast \| Staff Visit \| £179.87\| £47.40 \| £62.00 \| £75.00 \| £364.27 \| \| 21/09/11 \| London \| Staff Visit \| £3.80 \| \| £3.80 \| \| 29/09/11 - 30/09/11 \| Coventry \| Staff Visit \| £71.00 \| £3.40 \| £80.00 \| £154.40 \| \| DATES \| DESTINATION \| PURPOSE \| TRAVEL \| OTHER (Including Hospitality Received/Given) \| Total Cost £ \| \|---------\|-------------\|---------------\|--------------\|---------------------------------------------\|--------------\| \| 01/07/11 \| Maidstone \| Office Visit \| £40.75 \| \| £40.75 \| \| 04/07/11 \| Manchester \| Staff Event \| £130.42 \| £16.70 \| £147.12 \| \| 06/07/11 \| Nottingham \| Staff Event \| £101.16 \| £3.80 \| £104.96 \| \| 07/07/11 \| Worthing \| Staff Event \| £21.60 \| \| £21.60 \| \| 07/07/11 \| Brighton \| Office Visit \| £25.12 \| \| £25.12 \| \| 21/07/11 \| Reading \| Office Visit \| £8.70 \| £4.00 \| £12.70 \| \| 31/08/11 \| Newcastle \| Staff Event \| £158.98 \| £38.92 \| £197.90 \| \| 19/09/11 \| Lincoln \| Staff Event \| £31.15 \| £53.80 \| £84.95 \| \| 29/09/11 \| London \| Staff Event \| £6.00 \| \| £6.00 \| \| DATES \| DESTINATION \| PURPOSE \| TRAVEL \| OTHER (Including Hospitality Received/Given) \| Total Cost £ \| \|-------------\|-----------------\|---------------\|--------------\|---------------------------------------------\|--------------\| \| \| \| \| Air \| Rail \| \| \| 01/07/11 \| Lincoln \| Staff Event \| £41.36 \| £52.10 \| £93.46 \| \| 22/07/11 \| Lincoln \| Staff Event \| £41.36 \| £46.60 \| £87.96 \| \| 29/07/11 \| Stoke on Trent \| Office Visit \| £56.61 \| \| £56.61 \| \| 29/09/11 - \| Lincoln \| Staff Event \| £140.96 \| \| £140.96 \| \| 30/09/11 \| \| \| \| \| \| \| DATES \| DESTINATION \| PURPOSE \| TRAVEL \| OTHER (Including Hospitality Received/Given) \| Total Cost £ \| \|---------\|-------------\|------------------\|--------\|---------------------------------------------\|--------------\| \| \| \| \| Air \| Rail \| Taxi/Car/Other \| Accommodation/Meals \| \| \| 12/07/11 \| Peterborough \| Office Visit \| £21.00 \| \| \| \| £21.00 \| \| 14/07/11 \| Ipswich \| Office Visit \| £38.00 \| \| \| \| £38.00 \| \| 19/07/11 \| Ipswich \| Office Visit \| £16.00 \| \| \| \| £16.00 \| \| 28/07/11 \| Norwich \| Office Visit \| £16.00 \| \| \| \| £16.00 \| \| 19/09/11 \| Sunningdale \| Speaking Engagement \| £3.95 \| \| \| \| £3.95 \| \| DATES \| DESTINATION \| PURPOSE \| TRAVEL \| OTHER (Including Hospitality Received/Given) \| Total Cost £ \| \|------------\|-------------\|------------------\|-----------------\|---------------------------------------------\|--------------\| \| 18/07/11 \| Lincoln \| Staff Event \| Air: £176.81 \| \| £186.69 \| \| 20/07/11 \| Cornwall \| Office Visits \| Rail: £9.88 \| \| £479.96 \| \| 26/07/11 \| London \| External Meeting \| Taxi/Car/Other: £302.18 \| \| £8.00 \| \| 09/08/11 \| London \| Departmental Business \| £26.00 \| \| £26.00 \| \| 31/08/11 \| Newcastle \| Departmental Business \| £194.54 \| £21.80 \| £151.03 \| £367.37 \| \| 30/09/11 \| Reading \| External Meeting \| £41.10 \| £10.00 \| £4.25 \| £55.35 \| \| DATES \| DESTINATION \| PURPOSE \| TRAVEL \| OTHER (Including Hospitality Received/Given) \| Total Cost £ \| \|---------\|-------------\|---------------\|--------\|---------------------------------------------\|--------------\| \| 30/07/11\| Oxford \| Departmental Business \| \| \| £28.00 \| \| 01/08/11\| Hinckley \| Meeting \| \| \| £69.50 \| \| 09/08/11\| London \| Meeting \| \| \| £24.00 \| John Spence – Non Executive Director - John Spence is registered blind therefore the expenses claimed are higher than that of other Non Executive Directors \| DATES \| DESTINATION \| PURPOSE \| TRAVEL \| OTHER (Including Hospitality Received/Given) \| Total Cost £ \| \|---------\|-------------\|--------------\|-----------------\|---------------------------------------------\|--------------\| \| \| \| \| Air \| Rail \| Taxi/Car/ Other \| Accommodation/ Meals \| \| \| 12/07/11 \| London \| HMRC Board \| £15.40 \| £38.20 \| £53.60 \| £53.60 \| \| 19/07/11 \| London \| Meeting \| £8.50 \| £26.60 \| £35.10 \| £35.10 \| \| 27/07/11 \| London \| Meeting \| £9.85 \| £41.20 \| £51.05 \| £51.05 \| \| 09/08/11 \| London \| Meeting \| £15.40 \| £30.00 \| £45.40 \| £45.40 \| \| 23/08/11 \| London \| Meeting \| £9.85 \| £30.20 \| £40.05 \| £40.05 \| \| 01/09/11 \| London \| Meeting \| £15.40 \| £35.50 \| £50.90 \| £50.90 \| \| 12/09/11 \| London \| Meeting \| £15.40 \| £26.00 \| £41.40 \| £41.40 \| \| 15/09/11 \| London \| Meeting \| £8.50 \| £25.50 \| £34.00 \| £34.00 \| \| 20/09/11 \| London \| Meeting \| £15.40 \| £30.00 \| £45.40 \| £45.40 \| \| 21/09/11 \| London \| Meeting \| £15.40 \| £32.00 \| £47.40 \| £47.40 \| \| DATES \| DESTINATION \| PURPOSE \| TRAVEL \| OTHER (Including Hospitality Received/Given) \| Total Cost £ \| \|---------\|-------------\|---------\|--------\|---------------------------------------------\|--------------\| \| \| \| \| Air \| Rail \| Taxi/Car/Other \| Accommodation/Meals \| \| \| 09/08/11 \| London \| Meeting \| \| £9.25 \| \| \| £9.25 \| \| 01/09/11 \| London \| Meeting \| \| £21.25 \| \| \| £21.25 \| \| DATES \| DESTINATION \| PURPOSE \| TRAVEL \| OTHER (Including Hospitality Received/Given) \| Total Cost £ \| \|-------\|-------------\|---------\|--------\|---------------------------------------------\|--------------\| \| \| \| \| Air \| Rail \| Taxi/Car/Other \| Accommodation/Meals \| \| NIL RETURN Philippa Hird – Non Executive Director - Philippa does not make individual claims for business costs. \| DATES \| DESTINATION \| PURPOSE \| TRAVEL \| OTHER (Including Hospitality Received/Given) \| Total Cost £ \| \|-------\|-------------\|---------\|--------------\|---------------------------------------------\|--------------\| \| \| \| \| Air \| Rail \| \| \| \| \| \| Taxi/Car/Other \| Accommodation/Meals \| \| NIL RETURN	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/2572-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 16, "total-input-tokens": 22728, "total-output-tokens": 5256, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 532, 1 ], [ 532, 2305, 2 ], [ 2305, 3041, 3 ], [ 3041, 4570, 4 ], [ 4570, 5022, 5 ], [ 5022, 6189, 6 ], [ 6189, 7130, 7 ], [ 7130, 8438, 8 ], [ 8438, 9447, 9 ], [ 9447, 10396, 10 ], [ 10396, 11339, 11 ], [ 11339, 11908, 12 ], [ 11908, 13198, 13 ], [ 13198, 13723, 14 ], [ 13723, 14049, 15 ], [ 14049, 14606, 16 ] ] }
3ee95fcd3bf6d79244c2251f01e70b90f835902a	\| Directorate \| Expenditure Category \| Payment Date \| Transaction Number \| Net Amount \| Supplier Name \| \|----------------------\|---------------------------------------\|--------------\|--------------------\|------------\|---------------------------------------------------\| \| Services \| Private Contractors \| 02/03/2020 \| RT2257312 \| 6,900.00 \| CityFleet Networks Ltd \| \| Services \| Private Contractors \| 02/03/2020 \| RT2257319 \| 467,488.27 \| CityFleet Networks Ltd \| \| Services \| Private Contractors \| 02/03/2020 \| RT2257341 \| 250,000.00 \| CityFleet Networks Ltd \| \| Chief Executive’s \| Indirect Employee Expenses \| 02/03/2020 \| RT2256345 \| 948.10 \| Eversheds Sutherland (International) LLP \| \| Policy and Public Affairs \| Fees and Services \| 02/03/2020 \| RT2258346 \| 2,700.00 \| Marshall Pinsent \| \| Chief Executive’s \| Indirect Employee Expenses \| 02/03/2020 \| RT2253791 \| 2,694.00 \| TMP (UK) Ltd \| \| Services \| Private Contractors \| 04/03/2020 \| RT2259263 \| 39,166.00 \| First Beeline Buses Ltd \| \| Services \| Private Contractors \| 04/03/2020 \| RT2253782 \| 21,013.00 \| The City of Oxford Motor Services Ltd \| \| Services \| Private Contractors \| 04/03/2020 \| RT2253765 \| 1,364.00 \| The City of Oxford Motor Services Ltd \| \| Services \| Grants and Subscriptions \| 06/03/2020 \| RT2261700 \| 210,000.00 \| Ashiana Network \| \| Services \| Grants and Subscriptions \| 06/03/2020 \| RT2261704 \| 3,108.00 \| Bongobir Osmani Trust \| \| Services \| Grants and Subscriptions \| 06/03/2020 \| RT2261709 \| 1,312.15 \| Boundary Community School \| \| Chief Executive’s \| Communications and Computing \| 06/03/2020 \| RT2260801 \| 3,730.98 \| City of London \| \| Chief Executive’s \| Communications and Computing \| 06/03/2020 \| RT2260803 \| 6,642.16 \| City of London \| \| Services \| Private Contractors \| 06/03/2020 \| RT2259235 \| 6,287.85 \| ESP Systex Ltd \| \| Services \| Private Contractors \| 06/03/2020 \| RT2259231 \| 5,390.00 \| ESP Systex Ltd \| \| Chief Executive’s \| Indirect Employee Expenses \| 06/03/2020 \| RT2260618 \| 700.00 \| Happy Computers Ltd \| \| Policy and Public Affairs \| Expenses \| 06/03/2020 \| RT2259357 \| 2,112.00 \| ODL Agency Limited \| \| Services \| Communications and Computing \| 06/03/2020 \| RT2259335 \| 533.33 \| OWA Digital Ltd \| \| Chief Executive’s \| Fees and Services \| 06/03/2020 \| RT2260667 \| 1,216.11 \| Perfect Circle JV Ltd \| \| Services \| Communications and Computing \| 06/03/2020 \| RT2260730 \| 3,210.00 \| Sagoss Ltd \| \| Policy and Public Affairs \| Printing, Stationery and General Office Exps \| 06/03/2020 \| RT2259214 \| 549.00 \| Sterling Media Associates \| \| Services \| Grants and Subscriptions \| 06/03/2020 \| RT2261697 \| 66,250.00 \| Tender Education and Arts \| \| Services \| Grants and Subscriptions \| 06/03/2020 \| RT2262000 \| 12,780.50 \| Twinning Enterprise \| \| Services \| Grants and Subscriptions \| 06/03/2020 \| RT2262003 \| 9,207.50 \| Twinning Enterprise \| \| Services \| Grants and Subscriptions \| 06/03/2020 \| RT2261692 \| 78,730.50 \| Womens Aid Federation of England \| \| Chief Executive’s \| Fees and Services \| 09/03/2020 \| RT2260636 \| 913.60 \| John Mills (Consultancy) Ltd \| \| Services \| Private Contractors \| 11/03/2020 \| RT2258365 \| 222,835.00 \| Arriva The Shires Ltd \| \| Services \| Grants and Subscriptions \| 11/03/2020 \| RT2263285 \| 4,800.00 \| Reed in Partnership Ltd \| \| Services \| Grants and Subscriptions \| 11/03/2020 \| RT2263286 \| 60,195.75 \| Women’s Resource Centre \| \| Chief Executive’s \| Indirect Employee Expenses \| 13/03/2020 \| RT2263168 \| 4,040.00 \| 2040 Training Ltd \| \| Services \| Grants and Subscriptions \| 13/03/2020 \| RT2264966 \| 5,000.00 \| Bongobir Osmani Trust \| \| Services \| Grants and Subscriptions \| 13/03/2020 \| RT2264952 \| 5,000.00 \| Boundary Community School \| \| Policy and Public Affairs \| Communications and Computing \| 13/03/2020 \| RT2265116 \| 18.00 \| British Telecommunications Plc \| \| Policy and Public Affairs \| Communications and Computing \| 13/03/2020 \| RT2265116 \| 66.90 \| British Telecommunications Plc \| \| Chief Executive’s \| Communications and Computing \| 13/03/2020 \| RT2265116 \| 40.75 \| British Telecommunications Plc \| \| Policy and Public Affairs \| Communications and Computing \| 13/03/2020 \| RT2265116 \| 393.60 \| British Telecommunications Plc \| \| Services \| Communications and Computing \| 13/03/2020 \| RT2265116 \| 17.25 \| British Telecommunications Plc \| \| Directorate \| Expenditure Category \| Payment Date \| Transaction Number \| Net Amount \| Supplier Name \| \|-----------------------------\|---------------------------------------\|--------------\|--------------------\|------------\|---------------------------------------------------\| \| Services \| Communications and Computing \| 13/03/2020 \| RT2265116 \| 98.85 \| British Telecommunications Plc \| \| Policy and Public Affairs \| Communications and Computing \| 13/03/2020 \| RT2265116 \| 49.05 \| British Telecommunications Plc \| \| Services \| Communications and Computing \| 13/03/2020 \| RT2265116 \| 40.80 \| British Telecommunications Plc \| \| Chief Executive's \| Communications and Computing \| 13/03/2020 \| RT2265116 \| 503.70 \| British Telecommunications Plc \| \| Services \| Communications and Computing \| 13/03/2020 \| RT2265116 \| 80.60 \| British Telecommunications Plc \| \| Services \| Communications and Computing \| 13/03/2020 \| RT2265116 \| 7.35 \| British Telecommunications Plc \| \| Policy and Public Affairs \| Communications and Computing \| 13/03/2020 \| RT2265116 \| 13.35 \| British Telecommunications Plc \| \| Policy and Public Affairs \| Fees and Services \| 13/03/2020 \| RT2265096 \| 1,750.00 \| City of London \| \| Services \| Grants and Subscriptions \| 13/03/2020 \| RT2264947 \| 5,000.00 \| Cressy IT Solutions \| \| Chief Executive's \| Communications and Computing \| 13/03/2020 \| RT2265108 \| 2,166.80 \| Daisy Communications Ltd \| \| Policy and Public Affairs \| Expenses \| 13/03/2020 \| RT2264994 \| 17,000.00 \| Dods Parliamentary Communications Ltd \| \| Services \| Grants and Subscriptions \| 13/03/2020 \| RT2264935 \| 2,500.00 \| Hope and Restoration Ltd T/A H&R Training Profession \| \| Services \| Grants and Subscriptions \| 13/03/2020 \| RT2264930 \| 5,000.00 \| Kongoese Childrens Association \| \| Policy and Public Affairs \| Fees and Services \| 13/03/2020 \| RT2264879 \| 5,400.00 \| Ordatus Ltd \| \| Policy and Public Affairs \| Communications and Computing \| 13/03/2020 \| RT2264882 \| 637.50 \| Panlogic Limited \| \| Services \| Grants and Subscriptions \| 13/03/2020 \| RT2264923 \| 2,100.00 \| Reed in Partnership Ltd \| \| Policy and Public Affairs \| Communications and Computing \| 13/03/2020 \| RT2265000 \| 2,880.00 \| Rosedean Group Limited \| \| Policy and Public Affairs \| Communications and Computing \| 13/03/2020 \| RT2265008 \| 827.50 \| Rosedean Group Limited \| \| Policy and Public Affairs \| Communications and Computing \| 13/03/2020 \| RT2264995 \| 6,240.00 \| Rosedean Group Limited \| \| Chief Executive's \| Cleaning and Domestic Supplies \| 13/03/2020 \| RT2265003 \| 5,128.38 \| Solo Group Services Limited \| \| Policy and Public Affairs \| Indirect Employee Expenses \| 13/03/2020 \| RT2263355 \| 1,599.00 \| SPOCE Project Management Ltd \| \| Services \| Indirect Employee Expenses \| 13/03/2020 \| RT2264885 \| 523.50 \| TMP (UK) Ltd \| \| Services \| Indirect Employee Expenses \| 13/03/2020 \| RT2264885 \| 87.25 \| TMP (UK) Ltd \| \| Services \| Indirect Employee Expenses \| 13/03/2020 \| RT2264885 \| 698.00 \| TMP (UK) Ltd \| \| Services \| Indirect Employee Expenses \| 13/03/2020 \| RT2264885 \| 436.25 \| TMP (UK) Ltd \| \| Services \| Grants and Subscriptions \| 13/03/2020 \| RT2264922 \| 2,341.50 \| Twinning Enterprise \| \| Services \| Grants and Subscriptions \| 13/03/2020 \| RT2264918 \| 9,762.50 \| Twinning Enterprise \| \| Services \| Grants and Subscriptions \| 13/03/2020 \| RT2264975 \| 2,500.00 \| Wise Age Ltd \| \| Services \| Grants and Subscriptions \| 13/03/2020 \| RT2264963 \| 5,000.00 \| Wise Youth Trust \| \| Policy and Public Affairs \| Fees and Services \| 16/03/2020 \| RT2265028 \| 2,275.00 \| Contractor Umbrella Ltd \| \| Policy and Public Affairs \| Fees and Services \| 16/03/2020 \| RT2265111 \| 23,333.33 \| Ernst & Young Up \| \| Policy and Public Affairs \| Direct Employee Expenses \| 16/03/2020 \| RT2265114 \| 8,550.00 \| Ernst & Young Up \| \| Policy and Public Affairs \| Fees and Services \| 16/03/2020 \| RT2264946 \| 2,500.00 \| HE Safeguarding Services Ltd \| \| Policy and Public Affairs \| Fees and Services \| 16/03/2020 \| RT2264904 \| 10,000.00 \| Impetus - The Private Equity Foundation \| \| Policy and Public Affairs \| Fees and Services \| 16/03/2020 \| RT2264892 \| 21,758.40 \| London Borough of Haringey \| \| Policy and Public Affairs \| Other Local Authorities \| 16/03/2020 \| RT2265053 \| 2,771.00 \| London Borough of Lewisham \| \| Chief Executive's \| Repairs and Maintenance \| 16/03/2020 \| RT2265068 \| 3,900.00 \| Reid Property and Maintenance Services Limited \| \| Chief Executive's \| Fees and Services \| 18/03/2020 \| RT2265064 \| 1,610.58 \| All Square Ltd T/A Zip Security \| \| Services \| Indirect Employee Expenses \| 18/03/2020 \| RT2265075 \| 2,228.57 \| Buzzacott Computer Services Ltd \| \| Services \| Indirect Employee Expenses \| 18/03/2020 \| RT2265075 \| 2,228.57 \| Buzzacott Computer Services Ltd \| \| Chief Executive's \| Fees and Services \| 18/03/2020 \| RT2266677 \| 38,250.00 \| City of London \| \| Directorate \| Expenditure Category \| Payment Date \| Transaction Number \| Net Amount \| Supplier Name \| \|-----------------------------\|----------------------\|--------------\|--------------------\|------------\|---------------------------------------------------\| \| Chief Executive's \| Catering \| 18/03/2020 \| RT2266650 \| 242.40 \| Eden Caterers Ltd \| \| Policy and Public Affairs \| Catering \| 18/03/2020 \| RT2266650 \| 26.25 \| Eden Caterers Ltd \| \| Chief Executive's \| Catering \| 18/03/2020 \| RT2266650 \| 1,837.85 \| Eden Caterers Ltd \| \| Policy and Public Affairs \| Catering \| 18/03/2020 \| RT2266650 \| 153.15 \| Eden Caterers Ltd \| \| Policy and Public Affairs \| Catering \| 18/03/2020 \| RT2266650 \| 35.40 \| Eden Caterers Ltd \| \| Chief Executive's \| Catering \| 18/03/2020 \| RT2266650 \| 389.55 \| Eden Caterers Ltd \| \| Policy and Public Affairs \| Fees and Services \| 18/03/2020 \| RT2266367 \| 3,300.00 \| Emerging Field Ltd \| \| Policy and Public Affairs \| Fees and Services \| 18/03/2020 \| RT2266403 \| 19,106.93 \| Ernst & Young LLP \| \| Chief Executive's \| Indirect Employee Expenses \| 18/03/2020 \| RT2266645 \| 2,760.00 \| Happy Computers Ltd \| \| Policy and Public Affairs \| Fees and Services \| 18/03/2020 \| RT2266500 \| 10,000.00 \| Improvement & Development Agency for Local Government \| \| Policy and Public Affairs \| Fees and Services \| 18/03/2020 \| RT2266487 \| 5,125.00 \| Isos Partnership (UK) LLP \| \| Policy and Public Affairs \| Fees and Services \| 18/03/2020 \| RT2266497 \| 5,818.75 \| Justice Studio Ltd \| \| Services \| Communications and Computing \| 18/03/2020 \| RT2266360 \| 2,000.00 \| KidDiscovery Ontrack Limited \| \| Services \| Communications and Computing \| 18/03/2020 \| RT2266449 \| 500.00 \| KidDiscovery Ontrack Limited \| \| Policy and Public Affairs \| Other Local Authorities \| 18/03/2020 \| RT2265160 \| 2,771.00 \| London Borough of Sutton \| \| Policy and Public Affairs \| Fees and Services \| 18/03/2020 \| RT2265088 \| 860.00 \| Marshall Pinsent \| \| Services \| Private Contractors \| 18/03/2020 \| RT2266639 \| 20,974.82 \| Northgate Public Services (UK) Limited \| \| Services \| Private Contractors \| 18/03/2020 \| RT2266639 \| 84,729.71 \| Northgate Public Services (UK) Limited \| \| Services \| Private Contractors \| 18/03/2020 \| RT2266632 \| 14,296.85 \| Northgate Public Services (UK) Limited \| \| Services \| Private Contractors \| 18/03/2020 \| RT2266632 \| 19,979.67 \| Northgate Public Services (UK) Limited \| \| Services \| Private Contractors \| 18/03/2020 \| RT2266639 \| 7,834.53 \| Northgate Public Services (UK) Limited \| \| Services \| Private Contractors \| 18/03/2020 \| RT2266632 \| 24,186.87 \| Northgate Public Services (UK) Limited \| \| Services \| Private Contractors \| 18/03/2020 \| RT2266458 \| 19,113.33 \| NSL Limited \| \| Services \| Communications and Computing \| 18/03/2020 \| RT2265056 \| 33,039.00 \| OWA Digital Ltd \| \| Services \| Cleaning and Domestic Supplies \| 18/03/2020 \| RT2266501 \| 1,516.79 \| Solo Group Services Limited \| \| Policy and Public Affairs \| Printing, Stationery and General Office Exps \| 18/03/2020 \| RT2265060 \| 3,516.00 \| Sterling Media Associates \| \| Chief Executive's \| Indirect Employee Expenses \| 18/03/2020 \| RT2266641 \| 2,007.50 \| TMP (UK) Ltd \| \| Policy and Public Affairs \| Fees and Services \| 18/03/2020 \| RT2266408 \| 7,865.00 \| University of East London \| \| Chief Executive's \| Fees and Services \| 18/03/2020 \| RT2266495 \| 748.50 \| Ward Security Limited \| \| Services \| Communications and Computing \| 19/03/2020 \| Credit card \| 1,499.97 \| Argos Ltd \| \| Services \| Communications and Computing \| 19/03/2020 \| Credit card \| 1,499.97 \| Argos Ltd \| \| Services \| Private Contractors \| 20/03/2020 \| RT2264978 \| 2,206.50 \| 4tel Communications Limited \| \| Policy and Public Affairs \| Fees and Services \| 20/03/2020 \| RT2265092 \| 26,780.00 \| Andrew Templeman Limited \| \| Chief Executive's \| Communications and Computing \| 23/03/2020 \| RT2267101 \| 26,440.00 \| City of London \| \| Chief Executive's \| Communications and Computing \| 23/03/2020 \| RT2267096 \| 3,115.16 \| City of London \| \| Chief Executive's \| Communications and Computing \| 23/03/2020 \| RT2267100 \| 15,523.70 \| City of London \| \| Chief Executive's \| Communications and Computing \| 23/03/2020 \| RT2267103 \| 8,998.07 \| City of London \| \| Chief Executive's \| Rents \| 23/03/2020 \| RT2267537 \| 243,750.00 \| City of London \| \| Services \| Private Contractors \| 23/03/2020 \| RT2266576 \| 445,010.33 \| CityFleet Networks Ltd \| \| Chief Executive's \| Service Charges \| 23/03/2020 \| RT2267541 \| 18,413.30 \| Frederick Holt & Co Ltd \| \| Chief Executive's \| Rents \| 23/03/2020 \| RT2267541 \| 74,161.50 \| Frederick Holt & Co Ltd \| \| Directorate \| Expenditure Category \| Payment Date \| Transaction Number \| Net Amount \| Supplier Name \| \|-----------------------------\|---------------------------------------\|--------------\|--------------------\|------------\|---------------------------------------------------\| \| Policy and Public Affairs \| Fees and Services \| 23/03/2020 \| RT2267060 \| 3,287.50 \| Justice Studio Ltd \| \| Policy and Public Affairs \| Communications and Computing \| 23/03/2020 \| RT2267526 \| 3,121.20 \| Microsoft Ireland Operations Ltd \| \| Services \| Private Contractors \| 23/03/2020 \| RT2267471 \| 12,222.83 \| Northgate Public Services (UK) Limited \| \| Services \| Private Contractors \| 23/03/2020 \| RT2267471 \| 18,017.34 \| Northgate Public Services (UK) Limited \| \| Policy and Public Affairs \| Fees and Services \| 23/03/2020 \| RT2267066 \| 25,822.09 \| Northgate Public Services (UK) Limited \| \| Policy and Public Affairs \| Fees and Services \| 23/03/2020 \| RT2267075 \| 10,700.00 \| The Royal Borough of Kensington & Chelsea \| \| Services \| Private Contractors \| 23/03/2020 \| RT2267472 \| 400,000.00 \| Traffic Enforcement Centre \| \| Policy and Public Affairs \| Communications and Computing \| 25/03/2020 \| RT2267067 \| 1,350.00 \| Basis Limited \| \| Policy and Public Affairs \| Grants and Subscriptions \| 25/03/2020 \| RT2268987 \| 3,070.00 \| CIPFA Business Ltd \| \| Policy and Public Affairs \| Grants and Subscriptions \| 25/03/2020 \| RT2269036 \| 2,960.00 \| CIPFA Business Ltd \| \| Policy and Public Affairs \| Catering \| 25/03/2020 \| RT2269317 \| 915.00 \| Coin Street Community Builders Ltd \| \| Policy and Public Affairs \| Expenses \| 25/03/2020 \| RT2269314 \| 1,155.00 \| Coin Street Community Builders Ltd \| \| Policy and Public Affairs \| Expenses \| 25/03/2020 \| RT2269317 \| 2,077.00 \| Coin Street Community Builders Ltd \| \| Policy and Public Affairs \| Expenses \| 25/03/2020 \| RT2269317 \| 1,380.00 \| Coin Street Community Builders Ltd \| \| Policy and Public Affairs \| Fees and Services \| 25/03/2020 \| RT2269239 \| 1,400.00 \| Contractor Umbrella Ltd \| \| Policy and Public Affairs \| Communications and Computing \| 25/03/2020 \| RT2267273 \| 1,847.68 \| Dotdigital EMEA Limited \| \| Chief Executive’s \| Repairs and Maintenance \| 25/03/2020 \| RT2268322 \| 2,543.34 \| Kone Plc \| \| Policy and Public Affairs \| Direct Employee Expenses \| 25/03/2020 \| RT2268703 \| 3,600.00 \| Law Morgan Limited \| \| Services \| Fees and Services \| 25/03/2020 \| RT2267411 \| 3,125.00 \| Mime Consulting Ltd \| \| Services \| Fees and Services \| 25/03/2020 \| RT2269274 \| 24,007.07 \| Northgate Public Services (UK) Limited \| \| Chief Executive’s \| Energy costs \| 25/03/2020 \| Direct debit \| 4,596.90 \| Opus Energy \| \| Policy and Public Affairs \| Communications and Computing \| 25/03/2020 \| RT2267279 \| 1,593.75 \| Panlogic Limited \| \| Policy and Public Affairs \| Communications and Computing \| 25/03/2020 \| RT2267281 \| 850.00 \| Panlogic Limited \| \| Policy and Public Affairs \| Communications and Computing \| 25/03/2020 \| RT2267277 \| 1,853.19 \| Panlogic Limited \| \| Policy and Public Affairs \| Communications and Computing \| 25/03/2020 \| RT2267283 \| 8,377.00 \| SiteImprove Ltd \| \| Policy and Public Affairs \| Advertising/Miscellaneous expenses \| 25/03/2020 \| RT2267141 \| 1,209.00 \| Sterling Media Associates \| \| Services \| Private Contractors \| 25/03/2020 \| RT2268808 \| 2,940.29 \| Transport for London \| \| Chief Executive’s \| Fees and Services \| 25/03/2020 \| RT2268261 \| 3,709.23 \| Trowers & Hamllins Llp \| \| Services \| Fees and Services \| 25/03/2020 \| RT2268261 \| 11,127.73 \| Trowers & Hamllins Llp \| \| Chief Executive’s \| Cleaning and Domestic Supplies \| 27/03/2020 \| RT2269854 \| 250,000.00 \| CityFleet Networks Ltd \| \| Services \| Private Contractors \| 27/03/2020 \| RT2269307 \| 3,334.89 \| Konica Minolta Business Solutions (UK) Ltd \| \| Chief Executive’s \| Communications and Computing \| 27/03/2020 \| RT2269307 \| 1,620.99 \| Konica Minolta Business Solutions (UK) Ltd \| \| Services \| Communications and Computing \| 27/03/2020 \| RT2269301 \| 2,565.90 \| Konica Minolta Business Solutions (UK) Ltd \| \| Chief Executive’s \| Communications and Computing \| 27/03/2020 \| RT2269301 \| 514.13 \| Konica Minolta Business Solutions (UK) Ltd \| \| Policy and Public Affairs \| Other Local Authorities \| 27/03/2020 \| RT2269265 \| 2,771.00 \| London Borough of Haringey \| \| Services \| Fees and Services \| 27/03/2020 \| RT2266469 \| 2,400.32 \| Project Centre Limited \| \| Chief Executive’s \| Cleaning and Domestic Supplies \| 30/03/2020 \| Direct debit \| 1,349.40 \| First Mile \|	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/2573-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 4, "total-input-tokens": 13305, "total-output-tokens": 8419, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 6655, 1 ], [ 6655, 14104, 2 ], [ 14104, 20921, 3 ], [ 20921, 27699, 4 ] ] }
2fc732cc192bf7ec5f39f29f3be68e9650fea793	Expenses Policy Contents 1 PURPOSE OF THIS DOCUMENT ........................................................................................................3 2 BACKGROUND ..................................................................................................................................3 3 WHO IS IT FOR? ..............................................................................................................................4 4 CAR MILEAGE ..................................................................................................................................4 5 SUBSISTENCE ..................................................................................................................................5 6 TRAVELLING EXPENSES ................................................................................................................6 7 SCHEME MAINTENANCE AND UPDATES ......................................................................................7 Contact In the first instance for further information on this document please contact your Department Human Resources section: This document is maintained by Corporate Human Resources. Please telephone Steve Key on telephone: 020 8545 3539 Email: [email protected] www.merton.gov.uk 1 Purpose of this document 1.1 The purpose of this document is to provide guidance for employees and managers on business related expenses incurred by employees in the performance of their work. 1.2 Expenses and in particular where they are subject to Income Tax and/or National Insurance is a complex area and is defined by statutory regulations and national and local agreements. This document is intended to provide guidance on these matters to ensure compliance with the Council’s financial regulations and Inland Revenue regulations. 1.3 Expenses considered in this document are as follows - Car Mileage (including Cycle Allowance & Motorcycle Allowance) - Subsistence Allowance (meals) - Travelling Expenses 1.4 There are separate policies that relate to the reimbursement of interview expenses, relocation expenses and expenses incurred in relation to training courses. 2 Background 2.1 Over the past 10 years there have been a number of changes that have had a major impact on the payment of expenses to all employees. 2.2 In recent years there has been a greater level of regulation in relation to expenses paid to employees in relation to the performance of their duties. Employers are required to comply with this legislation. There are regular compliance audits and the penalties for non-compliance can be severe. 2.3 With the introduction of National Conditions for Local Government employees, many of the previous conditions have been revised to allow for a more modern approach and to allow for greater flexibility to meet local needs. Most importantly, the approach to expenses has moved towards reimbursement for actual expenses incurred and away from round-sum allowances that existed in the past 2.4 With the introduction of new systems and the need to modernise processes, there has been some simplification of internal procedures 3 Who is it for? 3.1 All employees within the Council. 4 Car Mileage 4.1 When can this be claimed? Car Mileage can be claimed whenever an employee uses their car for travel from their place of work to another site for official Council business or for travel from an off-site meeting to another meeting or back to work. Car mileage cannot be claimed from home to the normal place of work. However, if the employee is required to travel to another workplace, any additional mileage incurred may be claimed. 4.2 Who can claim car mileage? Car mileage can be claimed by anyone required to use his or her own vehicle for business use. However the type and rates of allowance may vary depending on the employee’s contractual arrangements. 4.3 What are the different types of car users? There are four categories of car use: Essential Car Users - where the use of a car is essential for the proper performance of the post. These users receive a monthly lump sum plus a reduced mileage rate for mileage. Casual Users - this is where car use is a regular aspect of the job but it is not essential to the job. These users receive a higher mileage rate but no monthly lump sum. Schools Users - Some schools have elected to use their own fixed rate mileage scheme for all employees who work there Others - all other employees, not covered in any of the above categories are entitled to claim car mileage at the same rates as casual users. 4.4 What are the rates and how the rates are increased Click here for the Pay and Benefits pages and to see the current rates. Rates are increased on an annual basis, normally in April. These rates are agreed nationally. 4.5 What is the process for making the claim? All employees should claim their mileage on a monthly basis using the form located on the Pay and Benefits pages. Employees should be aware that in some cases, the total allowance paid in respect of mileage is greater than the Inland Revenues assessment of the expense incurred (as calculated using the published Fixed Profit Car Scheme rates). In these cases, National Insurance will be collected on the profit element through payroll at the time of payment. Any Income Tax on the profit element will be reported to the Inland Revenue on form P11d Return of Expenses and Benefits at the end of the tax year. Forms should be properly authorised by the manager and submitted to Payroll for payment. Car mileage should not be paid by any other method due to the requirement to report profit elements to the Inland Revenue. 4.6 Other Mileage Payments Employees who wish to use their own motorcycle or bicycle may do so and continue to be paid the lowest car mileage rate. However they should be aware that the Fixed Profit Car Scheme Rates do not apply and the profit element for these methods of transport will be significantly higher. 4.7 Guidance for Managers Managers should make sure the following steps are taken to ensure the effective management of the policy - That expenditure incurred is necessary and wholly in the performance of work - That claims are made monthly and at the very latest within three months of the journey - That records are maintained of the journeys for any subsequent investigation or audit - That travel arrangements are made in an efficient and cost effective manner - That wherever possible, car journeys are minimised and the use of public transport are considered as an alternative - That all car mileage is paid via payroll 5 Subsistence 5.1 When can this be claimed? Whenever an employee is required to work away from their workplace during their normal mealtime, they are able to claim a reimbursement for their subsistence up to set maximum values. To ensure that this is reasonable, the Inland Revenue have laid out guidelines that subsistence payments should be made only where the employee is more than five miles from their normal workplace, for more than five 5.2 Who can claim? Subsistence can be claimed by all employees. 5.3 What amounts can be claimed? Subsistence can only be claimed for actual expenditure (proof of purchase such as a receipt should be attached to the claim). In certain extenuating circumstances where the employee has no choice as to where to purchase their meal, they may be reimbursed more than the maximum amounts. Such examples may be where the employee is travelling on a motorway or on a train. In such examples, employees should only claim what is reasonable in the circumstances. Where an employee makes an overtime claim, subsistence cannot be claimed for the same period. 5.4 Methods of payment As the reimbursement of actual expenditure incurred relating to subsistence is not subject to Income Tax or National Insurance, the payment may be made either via payroll, FMIS or by petty cash through the Cash Office located in the Civic Centre. 5.5 Guidance for Managers Managers should ensure the following steps are taken to ensure the effective management of the policy - That their employees are aware of and provided with all the relevant facts to enable them to make claims within their entitlement - That authorisation is given only up to maximum values (unless extenuating circumstances apply) - That receipts are provided for all expenditure - That overtime is not claimed for the same period as subsistence has been paid 6. Travelling Expenses 6.1 When can this be claimed? Whenever an employee is required to travel to another site as part of their normal work they may claim the full cost of the travel that they incur. The only exception to this is any travel from home to their normal workplace. 6.2 Who can claim? Travelling expenses can be claimed by all employees. 6.3 What amounts can be claimed? Travel arrangements should be made in the most efficient and effective manner. This will not necessarily mean the cheapest in all cases, as there may be times when cheaper methods of travel will be far slower or less convenient. In all cases, employees should travel second or standard class. 6.4 Methods of payment As the reimbursement of actual expenditure incurred relating to travel is not subject to Income Tax or National Insurance, the payment may be made either via payroll, FMIS or by petty cash through the Cash Office located in the Civic Centre. 6.5 Guidance for Managers Managers should ensure the following steps are taken to ensure the effective management of the policy - That expenditure incurred is necessary and wholly in the performance of work - That travel arrangements are made in the efficient and cost effective manner - That receipts are provided for all expenditure 7 Scheme Maintenance and Updates 7.1 Pay and Benefits Section within Human Resources maintain this policy. Any issues relating to the scheme should be discussed with the Pay & Benefits Manager. 7.2 Key contacts - Steve Key - Pay & Benefits Manager telephone no: 020 8545 3539 e-mail: [email protected] - Sue Morgan - Payroll Production Officer telephone no: 020 8545 3544 e-mail: [email protected]	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/2574-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 7, "total-input-tokens": 11744, "total-output-tokens": 2273, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 0, 1 ], [ 0, 1292, 2 ], [ 1292, 3007, 3 ], [ 3007, 4728, 4 ], [ 4728, 7067, 5 ], [ 7067, 9053, 6 ], [ 9053, 10207, 7 ] ] }
4f11c6c7b3cb4e7d34c481c550d04236ba5e7a25	### A1 - BLAGAB I minus E computation (LAM03000) \| Step \| Description \| Amount \| Total \| \|------\|-------------\|--------\|-------\| \| Step 1 – BLAGAB income \| Property business (LAM03090) \| 47,701 \| \| \| \| Loan relationship and derivative income (LAM03070) \| 527,136 \| 574,837 \| \| Step 2 – BLAGAB chargeable gains less losses \| Net chargeable gains (LAM03200) \| (G) \| 230,333 \| \| Step 3 – Sundry receipts and minimum profits charge \| Sundry receipts (LAM03100) \| 455 \| \| \| \| Minimum profits charge (A2) (LAM03500) \| 9,500 \| 9,955 \| \| Step 4 – Sum of steps 1 – 3, deduct any BLAGAB non-trading deficit. Result is ‘I’ \| Sum of steps 1 – 3 \| 821,247 \| \| \| \| Non-trading deficit (LAM03070) \| (2,501) \| \| \| \| ‘I’ \| \| 818,746 \| \| Step 5 – Adjusted BLAGAB management expenses ‘E’ \| Less BLAGAB management expenses (A3) (LAM04000) \| (288,650) \| \| \| Step 6 – subtract ‘E’ from ‘I’ \| I minus E profit / (excess BLAGAB expenses) (A8) \| \| 536,218 \| \| \| Less non-BLAGAB allowable losses under s95 FA 2012 (LAM03400) \| (6,122) \| 530,096 \| ### A2 - Minimum profits charge (LAM03510) \| Description \| Amount \| Total \| \|----------------------------------------------------------------------------\|--------------\|-------------\| \| Adjusted I-E profit / excess BLAGAB expenses \| \| \| \| I minus E profit \| (A1) 530,096 \| \| \| Ignore minimum profits charge \| (9,500) \| \| \| Add BLAGAB non-taxable distributions \| 118,577 \| \| \| Adjusted BLAGAB trade profit \| (A4) 650,273 \| \| \| Less BLAGAB trade loss b/f \| (1,600) \| \| \| Compare the adjusted BLAGAB trade profit with adjusted I-E profit \| \| \| \| Minimum profits charge \| (A1) 9,500 \| \| ### A3 - BLAGAB management expenses (LAM04000) \| Description \| Amount \| Total \| \|----------------------------------------------------------------------------\|--------------\|-------------\| \| Step 1 – Company’s ordinary BLAGAB management expenses of the AP \| \| 109,620 \| \| Ordinary BLAGAB management expenses \| \| \| \| Step 2 \| \| \| \| less six-sevenths of the acquisition expenses of the period \| (42,500) \| 67,120 \| \| Step 3 – deemed BLAGAB management expenses – FA2012/S78(3) \| \| 200,000 \| \| Spreading of acquisition expenses \| 169,150 \| \| \| Capital allowances on management assets \| 22,500 \| \| \| Transitional relief for old annuity contracts \| 8,350 \| \| \| Step 4 – total of steps 1-3, adjust for expenses reversed in the AP and BLAGAB trade loss utilised \| \| 263,520 \| \| Sum of steps 1 to 3 \| 267,120 \| \| \| Deduct relief previously given for expenses repaid in the AP \| (3,600) \| \| \| Adjust for BLAGAB trade loss relieved \| 0 \| \| \| Step 5 – add management expenses brought forward to the sum of step 4 \| \| 288,650 \| \| Management expenses brought forward \| 12,500 \| \| \| Minimum profits charge of previous AP \| 12,630 \| \| \| Adjusted BLAGAB management expenses \| (A1) 25,130 \| \| ______________________________________________________________________ 1 The Minimum Profits Charge is carried forward to the next accounting period as an excess management expense. ### A4 - BLAGAB trade (LAM07000) \| Accounting profit before tax \| Profit before tax \| Total \| \|------------------------------\|-------------------\|-------\| \| \| \| 677,211 \| \| Adjustments to accounting profit \| \| \| \|----------------------------------\|----------------------\|-------\| \| Disallowed expenses \| 9,430 \| \| \| Capital allowances – management assets \| (27,350) \| \| \| Pre 2013 Deferred Acquisition Costs (DAC) \| 11,620 \| \| \| Pre 2013 Deferred income \| (1,350) \| \| \| Transitional receipt/(expense) \| (19,288) \| \| \| Policyholder tax adjustment (A7) \| nil \| \| \| BLAGAB trade profit for tax \| \| \| \|-----------------------------\|----------------------\|-------\| \| BLAGAB trade profit \| \| 650,273 \| \| Less BLAGAB trade loss brought forward \| \| \| \|---------------------------------------\|----------------------\|-------\| \| BLAGAB trade loss brought forward \| (1,600) \| \| ### A5 - Non-BLAGAB trade (LAM07000) \| Accounting profit/loss before tax \| \| \| \|-----------------------------------\|----------------------\|-------\| \| Loss before tax \| \| (6,253) \| \| Adjustments to accounting profit \| \| \| \|----------------------------------\|----------------------\|-------\| \| Disallowed expenses \| 3,650 \| \| \| Capital allowances – management assets \| (2,460) \| \| \| Pre 2013 Deferred Acquisition Costs (DAC) \| 10,340 \| \| \| Pre 2013 Deferred income \| (7,630) \| \| \| Transitional receipt/(expense) \| 4,350 \| \| \| Non-BLAGAB loss for tax \| \| \| \|-------------------------\|----------------------\|-------\| \| Non-BLAGAB trade loss \| \| (5,605) \| \| Non-BLAGAB trade losses \| \| \| \|-------------------------\|----------------------\|-------\| \| Less offset against other profits \| (A8) \| (5,605) \| \| Non-BLAGAB trade losses \| \| \| \|-------------------------\|----------------------\|-------\| \| Current period loss carried forward \| \| Nil \| \| Non-BLAGAB trade loss brought forward \| \| (5,840) \| ### A6 - Long-term business fixed capital and other non-trade (LAM11000) \| Description \| Total \| \|----------------------------------------------------------------------------\|--------\| \| Loan relationships and derivative income \| 21,540 \| \| Non-trading gain on intangible assets \| 7,660 \| \| Chargeable gains \| 655 \| \| Capital losses not arising from BLAGAB \| (655) \| \| Management expenses \| (5,880)\| \| Non-trading loan relationship deficit brought forward CTA2009/S457(1) \| (1,250)\| \| Profit / (loss) \| (A8) \| \| Total \| 22,070 \| LTBFC contains structural assets and those grandfathered from pre 1 January 2013 shareholders’ funds. Tax rules applicable to investment companies apply. ### A7 - Policyholders’ share of I minus E profit (LAM060000) \| Description \| Total \| \|----------------------------------------------------------------------------\|--------\| \| I minus E profit \| (A1) \| \| Reduced by adjusted BLAGAB trade profit (below) \| (530,096) \| \| Policyholders’ share \| (A8) \| \| Total \| nil \| Policyholders’ share calculation Adjusted amount of BLAGAB trade profit Shareholders’ share of BLAGAB non-taxable distributions \| Description \| Total \| \|----------------------------------------------------------------------------\|--------\| \| BLAGAB trade profit reduced by brought forward losses (A4) \| 648,673\| \| Reduced by shareholders share of BLAGAB non-taxable distributions \| (118,577)\| \| Adjusted BLAGAB trade profit \| 530,096\| \| BLAGAB non-taxable distributions (A2) \| 118,577\| \| Shareholders’ share of BLAGAB non-taxable distributions (LAM05050) \| 118,577\| ## A8 - Tax calculation \| \| BLAGAB I - E \| LTBFC \| Total per return \| \|--------------------------------\|--------------\|-------\|------------------\| \| Non-trade loan relationship income \| (A1) 527,136 \| (A6) 21,540 \| 548,676 \| \| Property business \| (A1) 47,701 \| \| 47,701 \| \| Sundry and minimum profits \| (A1) 9,955 \| \| 9,955 \| \| Profits before gains \| (A1) 584,792 \| (A6) 21,540 \| 606,332 \| \| Net chargeable gains \| (G) 236,455 \| 0 \| 236,455 \| \| Non-trading gain on intangible fixed assets \| (A6) 7,660 \| \| 7,660 \| \| Non trading deficit on loan relationship \| (A1) (2,501) \| \| (2,501) \| \| Management expenses \| (A3) (288,650) \| (A6) (5,880) \| (294,530) \| \| Non-trading loan relationship deficits brought forward CTA09/S457(1) \| (A6) (1,250) \| \| (1,250) \| \| Net profits before reliefs \| (A1) 530,096 \| (A6) 22,070 \| 552,166 \| \| Shareholders' profits before reliefs \| 530,096 \| 22,070 \| 552,166 \| \| Less trading losses CTA10/S37 (non-BLAGAB) \| (A5) (5,605) \| \| (5,605)² \| \| Group relief \| (120,650) \| \| (120,650) \| ² This example does not reflect the operation of the loss streaming rules introduced in F (No 2)A 2017 LAM08000 Full example computation LifeCo Limited \| Shareholders’ share of profits \| 403,841 \| 22,070 \| (A9) 425,911 \| \|-------------------------------\|---------\|--------\|--------------\| \| Policyholders’ share of profits \| (A7) nil \| (A9) nil \| \| Total taxable profits \| 403,841 \| 22,070 \| 425,911 \| A9 - Tax liability \| Corporation tax \| Tax \| Profit \| Rate \| \|-----------------\|-----\|--------\|------\| \| On policyholders’ share of profits \| \| \| \| \| 2016 \| \| \| 20.00% \| \| 2017 \| \| \| 20.00% \| \| Tax on policyholders’ profit \| nil \| (A8) nil \| \| On shareholders’ profits \| \| \| \| \| 2016 \| 21,016.20 \| 105,081 \| 20.00% \| \| 2017 \| 60,957.70 \| 320,830 \| 19.00% \| \| Tax on shareholders’ profits \| 82,063.90 \| (A8) 425,911 \| \| Tax before DTR \| 82,063.90 \| \| DTR relief \| (B) (1,112) \| \| Income Tax set off \| (3,556.10) \| \| Corporation tax liability \| 77,395.8 \| ### B1 – Double tax relief – summary (LAM09000) \| Category \| Relevant income \| Foreign tax \| Creditable tax before limitations \| Excess foreign tax \| Actual creditable tax \| Tax deductible \| \|----------------\|-----------------\|-------------\|-----------------------------------\|--------------------\|-----------------------\|----------------\| \| BLAGAB (B2) \| 81,420 \| 1,112 \| 1,112 \| 0 \| (A9) 1,112 \| 0 \| \| Non-BLAGAB (B3)\| 302,897 \| 7,602 \| 6,700 \| 902 \| (A9) 0 \| 7,602 \| \| Total \| 384,317 \| 8,714 \| 7,812 \| 0 \| 1,112 \| (A5) 7,602 \| ### B2 – Foreign Income – BLAGAB \| Source \| Relevant income \| Foreign tax \| Rate % \| Foreign tax to 20.25% \| Excess foreign tax \| Appropriate fraction of relevant expenses (TRE x RI/TI) \| Income above expenses TIOPA 2010 s100 \| Relevant fraction of profits \| Income restricted to profits TIOPA 2010 s101 \| Maximum creditable tax \| Actual creditable tax \| \|-----------------\|-----------------\|-------------\|--------\|-----------------------\|--------------------\|--------------------------------------------------------\|----------------------------------------\|----------------------------\|------------------------------------------\|------------------------\|----------------------\| \| Overseas shares \| 19,230 \| 260 \| 1.38 \| 260 \| 0 \| 17,250 \| 1,980 \| 15,631 \| 1,980 \| 400 \| 260 \| \| Overseas debentures \| 62,190 \| 852 \| 1.37 \| 852 \| 0 \| 55,772 \| 6,418 \| 50,551 \| 6,418 \| 1,296 \| 852 \| \| Total \| 81,420 \| \| \| \| \| \| \| \| \| \| 1,112 \| ### B3 - Foreign Income – non BLAGAB \| A \| B \| C \| D \| E \| F \| G \| H \| I \| J \| K \| L \| \|---\|---\|---\|---\|---\|---\|---\|---\|---\|---\|---\|---\| \| Source \| Relevant income \| Foreign tax \| Rate \| Foreign tax to 20.25% \| Excess foreign tax \| Appropriate fraction of relevant expenses (TRE x RI/TI) \| Income above expenses TIOPA 2010 s100 \| Relevant fraction of profits \| Income restricted to profits TIOPA 2010 s101 \| Maximum creditable tax \| Actual creditable tax \| \| Overseas shares \| 100 \| 15 \| 15% \| 15 \| 0 \| 67.37 \| 32.63 \| (1) \| 0 \| 0 \| 0 \| \| Overseas preference shares \| 18,997 \| 4,749 \| 25% \| 3,847 \| 902 \| 12,798 \| 6,199 \| (352) \| 0 \| 0 \| 0 \| \| Overseas debentures \| 283,800 \| 2,838 \| 1% \| 2,838 \| 0 \| 191,196 \| 92,604 \| (5251) \| 0 \| 0 \| 0 \| \| Total \| 302,897 \| \| \| \| \| \| \| \| \| \| 0 \| ### G – Capital gains and losses (LAM03200) \| Capital gains \| Total \| \|---------------\|-------\| \| BLAGAB chargeable gains \| 89,556 \| \| TCGA/S212 \| 221,621 (LAM03300) \| \| Total before losses offset \| 311,117 \| \| BLAGAB losses (below) \| (68,540) \| \| Net capital gains (A1) \| 236,455 \| \| Capital losses \| \|----------------\| \| BLAGAB losses arising \| 22,875 \| \| TCGA/S212 losses arising \| 45,665 \| \| \| 68,540 \|	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/3524-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 10, "total-input-tokens": 22958, "total-output-tokens": 4727, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 1064, 1 ], [ 1064, 4326, 2 ], [ 4326, 6822, 3 ], [ 6822, 9307, 4 ], [ 9307, 10650, 5 ], [ 10650, 11615, 6 ], [ 11615, 12406, 7 ], [ 12406, 14069, 8 ], [ 14069, 14853, 9 ], [ 14853, 15269, 10 ] ] }
3d2235c88fddcec34ed096334dc1f6ac92660c27	## G – Capital gains and losses (LAM03200) \| Capital gains \| Total \| \|----------------------------------------------------\|----------------\| \| BLAGAB chargeable gains \| 89,556 \| \| TCGA92/S212 \| 221,621 (LAM03300) \| \| Total before losses offset \| 311,117 \| \| BLAGAB losses \| (below) (68,540) \| \| Net capital gains \| (A1) 236,455 \| ## Capital losses \| Capital losses \| Total \| \|----------------------------------------------------\|----------------\| \| BLAGAB losses arising \| 22,875 \| \| TCGA92/S212 losses arising \| 45,665 \| \| TCGA92/S212 losses arising \| 68,540 \|	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/3525-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 1, "total-input-tokens": 1659, "total-output-tokens": 263, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 934, 1 ] ] }
cb4dd64031fbbecf95688e6dc748accd644737fc	Individual buys policy Insurer Accepts policy risk Cedes risk to reinsurer Reinsurer Accepts risk from ceding insurer may cede to retrocessionaire Retrocessionaire Accepts risk from reinsurer Premiums Claims Premiums Claims Premiums Claims Premiums Claims	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/3526-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 1, "total-input-tokens": 1482, "total-output-tokens": 106, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 259, 1 ] ] }
342820f731fb8b89f33097dc7f5889b5e093774b	LAM13210: Accounting for Part VII Transfers - IFRS Transferor Profit/loss recognised in income statement, based on difference between consideration received and carrying value of net assets transferred. Transferee Is it a business combination? - Yes - Is the transfer from a third party or intra-group? - 3rd party - Option 1: Fair value/purchase method - FV of consideration > FV of net assets acquired, net debit is goodwill (B/S). - FV of consideration < FV of net assets acquired, net credit is gain (income statement). - Intragroup - Option 2: Pooling of interests method - Difference between consideration paid (generally its FV) and net assets acquired recognised in equity. - Net assets measured at book value per transferor accounts, adjusted to achieve uniformity of accounting policies. - Option 3: As pooling of interests method, except the difference between consideration paid and net assets acquired is recognised as profit/loss in the income statement. - No - Profit/loss recognised in income statement, based on difference between consideration paid and net assets acquired. This profit/loss will not always equal the transferor’s profit/loss due to differences in valuation methods between the companies. 'Net assets acquired' includes any Present Value of In–Force (PVIF). Goodwill is over and above any PVIF recognised by the transferee.	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/3528-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 2, "total-input-tokens": 3224, "total-output-tokens": 406, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 1449, 1 ], [ 1449, 1449, 2 ] ] }
e7eed17d3f35ce111502f31473bcb41db3917fa6	Transferor Profit/loss recognised in income statement based on difference between consideration received and carrying value of net assets transferred. Transferee Is it a business combination? Yes Part VII transfer No Profit/loss recognised in income statement based on difference between consideration paid and net assets acquired. This profit/loss will not always equal the transferor’s profit/loss due to differences in valuation methods between the companies. Is the transfer to a third party or intra group? 3rd party Intragroup 2 options Purchase method FV of consideration > FV of net assets acquired, net debit is goodwill (B/S). FV of consideration < FV of net assets acquired, net credit is negative goodwill (B/S). Purchase method FV of consideration > FV of net assets acquired, net debit is goodwill (B/S). FV of consideration < FV of net assets acquired, net credit is negative goodwill (B/S). Merger accounting method Difference between consideration paid (generally its FV) and net assets acquired recognised in equity. Net assets measured at book value per transferor accounts, adjusted to achieve uniformity of accounting policies. 'Net assets acquired' includes any Present Value of In–Force (PVIF). Goodwill is over and above any PVIF recognised by the transferee.	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/3529-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 1, "total-input-tokens": 2000, "total-output-tokens": 326, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 1296, 1 ] ] }
a0a489937afa690c5101e03956c4d6ef31cdc8a6	\| Loss/relief \| BLAGAB I - E \| BLAGAB trade \| Non-BLAGAB trade \| Long Term Business Fixed Capital (LTBFC) and other non-trading business \| Short-term business (e.g. general insurance) \| \|------------\|-------------\|--------------\|------------------\|---------------------------------------------------------------------\|---------------------------------------------\| \| Management expenses \| Adjusted BLAGAB management expenses are set against I - E income and net chargeable gains of the period. Excess expenses can only be carried forward and treated as BLAGAB expenses of the next period. \| X \| X \| Exceptionally the general rule at CT09/S1219 could apply to expenses from the management of grandfathered assets in LTBFC or other non-trading activity. Expenses are set against income from the non-trading business in the period. Excess expenses can be: - Set off against total profits of the period (excluding BLAGAB policyholder share of I-E profits) - surrendered as group relief; - carried forward and set against \| X \| \| Trade losses \| A BLAGAB trade loss (LAM07310) of the period can be: \| \|--------------\|--------------------------------------------------\| \| \| • set sideways against shareholder total profits of the period (i.e. non-BLAGAB trade profit, - profit arising in long-term business fixed capital and any general insurance profit); \| \| \| • set against shareholder total profits for the previous 12 months; \| \| \| • surrendered as group relief; \| \| \| • carried forward and set against any BLAGAB trade profit of the next period. \| \| \| A BLAGAB trade loss utilised under any of the first three options above requires two adjustments to be made: \| \| \| • firstly the loss must be reduced by any BLAGAB non-trading deficit – see S126 FA2012, then; \| \| \| • the BLAGAB management expenses of the period \| \| Non-BLAGAB trade losses (LAM07300) are treated as “normal” trade losses and can be: \| \| \| • set against shareholder total profits\* of the period, then any remaining losses can be set against shareholder total profits\* of the previous 12 months; \| \| \| • surrendered as group relief; \| \| \| • carried forward and set against future non-BLAGAB profits. \| \| Shareholder total profits include: \| \| \| - the shareholders’ share of the I - E profit; \| \| \| - non-BLAGAB trade profit; \| \| \| - profit arising from long-term business fixed capital; \| \| \| - profit from any short-term business. \| \| LTBFC/non-trading income of the next period. \| Losses from any short-term business such as general insurance are treated as “normal” trade losses and can be: \| \| \| • set against shareholder total profits of the period; \| \| \| • any remaining loss can be set against shareholder total profits of the previous 12 months; \| \| \| • surrendered as group relief; \| \| \| • carried forward and set against future profits of the short-term trade. \| \| \Shareholder total profits include: \| \| \| - the shareholders’ share of the I - E profit; \| \| \| - non-BLAGAB trade profit; \| \| Allowable (capital) losses \| BLAGAB allowable (capital) losses (LAM03200) can be utilised as follows: \| Allowable losses not arising from BLAGAB will be set off against any chargeable gains not arising from BLAGAB. Any excess allowable losses can be \| \|---------------------------\|--------------------------------------------------------------------------\|----------------------------------------------------------------------------------------------------------------------------------\| \| \| • set against BLAGAB chargeable gains of the period (including deemed gains (LAM03300); \| • Set off against any shareholders share of BLAGAB gains, or \| \| \| • carried forward and set against BLAGAB chargeable gains of the next period; \| • carried forward to the next period and set against chargeable gains arising not arising from BLAGAB in future periods or shareholder share of any BLAGAB gains in future periods. \| \| \| • the shareholder share of the net BLAGAB allowable loss can be set against non-BLAGAB gains (LAM03420). \| \| \| Allowable loss arising from deemed disposal \| A net allowable loss can be carried back (in full or in part) and set against net chargeable gains arising from the deemed \| \| - profit arising from long-term business fixed capital; - profit from any short-term business. \| under S212 TCGA (LAM03340)* \| disposal in the previous two accounting periods. Any net allowable loss remaining is spread over 7 years. $\\frac{1}{7}$th of the net allowable loss is treated as an allowable loss of the accounting period with a further $\\frac{1}{7}$th treated as an allowable loss at the end of each succeeding accounting period. \| \| \| \| \| Non-trading loan relationship deficit (loan relationships and derivatives) \| Any BLAGAB NTLR deficit (LAM03060) is to be used firstly against BLAGAB income and gains of the period. Any remaining deficit can be carried back for up to 3 accounting periods ending within the 12 months immediately before the deficit period. Any deficit still remaining is carried forward to the next period and treated as a deemed BLAGAB management expenses of that period. \| X \| X \| A NTLR deficit arising in LTBFC is treated as a "normal" non-trading deficit under CTA09/S456. The deficit can be: - set against shareholder total profits of the period; - carried back (in full or in part) and set against any NTLR profit(other than BLAGAB NTLR profit) of the previous 12 months; \| X \| \| Non-trading deficit (Intangible assets) \| Any non-trading deficit (LAM03070) arising from an intangible asset is treated as a deemed management expenses of the period. When there is no I–E profit the shareholders’ share of any BLAGAB non-trading deficit for the period can be group relieved under CTA10/S99. \| \| Any non-trading deficit arising in LTBFC is treated as a “normal” non-trading deficit under CTA09/S456. The deficit can be: \| \| • surrendered as group relief; • carried forward and set against non-trading profits for future accounting periods. \| \| UK property business loss \| An overall net loss arising from BLAGAB property businesses (LAM03900) is treated as a deemed management expense of the period. When there is no I–E profit the shareholders’ share of any BLAGAB UK property business loss for the period can be group relieved under CTA10/S99 \| X \| X \| Any property income loss arising from property assets in LTBFC is set off under the rules in CTA10/S62 PIM4230 \| X \| \| Capital Allowances – investment assets \| Investment capital allowances can be deducted in the BLAGAB I - E computation. S545(3) CAA2001 denies relief for investment capital allowances in non-BLAGAB. \| X \| X \| X \| X \| \| Capital Allowances – management assets \| Management capital allowances are brought into account at step 3 of S76 FA2012. Management capital allowances can be deducted in the BLAGAB trade computation. Management capital allowances can be deducted in the non-BLAGAB trade computation. S18 & S253 CAA01 allow for capital allowances on plant & machinery used in managing the investment business. The normal capital allowances rules apply to general insurance business. See GIM4030 and CTM02350. \| X \| X \| X \| X \| \| Group relief \| The shareholders' share of the I-E profit can be relieved by group relief surrender by other group companies. The shareholder's share of amounts falling within CTA/210 (d)-(g) are not available to surrender as group relief when there is an I-E profit for the period. \| X \| The normal group relief rules apply to a claim against a non-BLAGAB trade profit. \| The normal group relief rules apply to a claim against any profits arising in LTBFC. \| The normal group relief rules apply to a claim against any short-term business profit. \|	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/3530-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 7, "total-input-tokens": 15259, "total-output-tokens": 2100, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 1029, 1 ], [ 1029, 3232, 2 ], [ 3232, 4607, 3 ], [ 4607, 5743, 4 ], [ 5743, 6305, 5 ], [ 6305, 7465, 6 ], [ 7465, 8014, 7 ] ] }
0d7c93b14db89c0198dea6598a03978bab294ecf	Disciplinary policy and procedure Document Control Version: Amendment Approved By: Divisional Director Human Resources and Trade Unions Effective From: 8 October 2009 1. Policy ...............................................................................................................................3 1.1 Aim .......................................................................................................................... 3 1.2 Scope ...................................................................................................................... 3 1.3 Responsibilities ....................................................................................................... 3 1.4 General principles ................................................................................................. 4 2. Procedure ........................................................................................................................5 2.1 Introduction .............................................................................................................. 5 2.2 Setting standards ..................................................................................................... 5 2.3 Confidentiality .......................................................................................................... 5 2.4 Criminal offences committed in and outside of employment .................................... 5 3. Informal stage ..................................................................................................................7 3.1 Informal discussions ................................................................................................ 7 3.2 Disciplinary investigation ......................................................................................... 7 3.3 Suspension .............................................................................................................. 8 4. Formal stage ..................................................................................................................10 4.1 Disciplinary hearing ............................................................................................... 10 4.2 Notification of formal hearing ................................................................................. 10 4.3 Attendance at a formal hearing .............................................................................. 11 4.4 Requests for postponement .................................................................................... 11 4.5 Order of business .................................................................................................. 11 4.6 Outcomes at a disciplinary hearing ....................................................................... 12 a) Written warning ...................................................................................................... 12 b) Final written warning ............................................................................................ 12 c) Disciplinary transfer and/or demotion .................................................................. 12 d) Dismissal /Summary dismissal ............................................................................. 12 4.7 Notification of the decision .................................................................................... 13 5. Appeal ............................................................................................................................14 5.2 Common appeal conditions ................................................................................... 14 6. Details of approval and variation process .....................................................................15 Appendix one: Disciplinary rules .....................................................................................16 1. Policy 1.1 Aim The aim of the disciplinary policy and procedure is to help and encourage all employees to achieve and maintain appropriate standards of conduct. The disciplinary policy and procedure are intended to provide consistency in the treatment of staff and to promote good practice. This procedure is closely aligned with the Council’s values relating to Fairness, Respect, Excellence, Service and Honesty. 1.2 Scope The disciplinary policy and procedure applies to all employees of the Council with the exception of: - The Chief Executive, - The Council’s Monitoring Officer and - The Council’s Section 151 Officer Issues of poor performance should be addressed in line with the Council’s capability policy and procedure. No formal disciplinary action will be taken against an accredited trade union representative until the case has been discussed, by HR and the Branch Secretary or full-time officer of the appropriate trade union. 1.3 Responsibilities Employees are responsible for: - familiarising themselves with and adhering to the standards of conduct expected of them as set out in the code of conduct Line Managers are responsible for: - providing employees with copies of the Council’s disciplinary rules and code of conduct, ensuring that these are understood - making employees aware of what is expected of them and to act as a role model in setting and maintaining high standards - dealing with cases of misconduct promptly, in a fair and consistent manner and attending relevant training - making any reasonable adjustments that may be required in accordance with the Disability Discrimination Act The Human Resources Division (HR) is responsible for: - providing advice and support throughout the process - monitoring application of the procedure and reporting trends and non-compliance - maintaining a list of disciplinary authority within in 1.4 General principles 1.4.1 Disciplinary action is the responsibility of all managers; however, only designated managers may suspend or discipline an employee. Heads of Service are responsible for ensuring that managers know their responsibilities and their level of authority, for example, who can give warnings or dismiss, and for maintaining an up to date record of authorised managers. HR will keep a full register of this information and Heads of Service will be responsible for advising them of any changes to these records. 1.4.2 Where an investigation indicates that the outcome of a disciplinary hearing could lead to dismissal, prior approval to proceed must be sought from the Head of Service or Director and advice sought from HR before continuing. 1.4.3 In order to comply with the legal requirements as set out in the Employment Act 2002, all stages of this procedure must be followed; any deviation from the procedure may be a disciplinary matter in itself. These incorporate the standard statutory procedure which is detailed in the ACAS Code of Practice. 1.4.5 Employees will not be dismissed for a first breach of discipline except in the case of gross misconduct. In extreme cases the penalty may be summary dismissal without notice or payment in lieu of notice. 2. Procedure 2.1 Introduction 2.1.1 The London Borough of Lambeth sets the standard of conduct it expects from all employees in its disciplinary rules (appendix one) and code of conduct. 2.1.2 This procedure has been adopted to ensure that all employees understand the behaviour expected of them and what course of action may be taken should these rules be breached. The Council wishes to ensure that the procedures applied to all staff are fair and consistent; the disciplinary policy and procedure are designed to encourage employees to achieve and maintain acceptable standards of behaviour in the workplace and is not to be used primarily to impose punishment. 2.2 Setting standards 2.2.1 It is essential that all employees are aware of the standards of conduct and behaviour expected of them as soon as they start and throughout their employment with the Council. Such standards are communicated in: - Disciplinary rules - Code of conduct - recruitment packs - information provided at interview - induction - one-to-one discussions and feedback - appraisals/ supervision - policies and procedures 2.3 Confidentiality 2.3.1 All parties involved in a disciplinary process will be expected to respect the process and must not disclose any confidential information in relation to the disciplinary case, except as required or permitted in accordance with this procedure. Any person who breaches confidentiality in this manner may be subject to disciplinary action. An employee may choose, however, to disclose confidential matters concerning themselves. 2.4 Criminal offences committed in and outside of employment 2.4.1 Charges brought against an individual by other parties, including the Police, and investigations by the Police are procedurally separate from this disciplinary procedure. Allegations that employees have committed criminal offences either in or outside of employment may lead to disciplinary action; particularly where the alleged acts are relevant to the employee’s employment with the Council or which may bring the Council into disrepute. Investigations conducted by the Police or the Council’s Internal Audit Team into alleged criminal or fraudulent activity, may take place outside of the Disciplinary Policy and Procedure and without the employee’s knowledge. The outcome of such investigations may be taken into account in a subsequent disciplinary investigation in accordance with section 3.2.4. 2.4.2 Action may be taken by management irrespective of Court proceedings. It does not automatically follow that an employee will be disciplined if found guilty in Court or taken into custody. Similarly, disciplinary action may be taken if an employee has been found not guilty in the Courts of a criminal offence or if charges are not brought. 2.4.3 It is not necessary for a disciplinary investigation to be put on hold until the criminal or other investigation is complete, however this may be the most reasonable course of action in the circumstances. 2.4.4 In all such cases the Head of Service shall investigate the facts as far as possible, and in consultation with HR, come to a view as to whether the conduct warrants invoking the Disciplinary Procedure. 2.4.5 The Internal Audit section must be advised by HR where there is any suspicion of fraud or corruption. 3. Informal stage 3.1 Informal discussions An initial informal discussion can often be a more effective way of dealing with minor conduct issues than a disciplinary hearing. In the event that a manager has concerns about the conduct of an employee they should meet with the employee to discuss their concerns, state expected standards of conduct and take into consideration the employee’s comments including any mitigating circumstances. 3.1.1 The informal meeting should be in a confidential environment with the managerial concerns being drawn to the employee’s attention in a constructive, supportive and respectful manner. 3.1.2 The employee will be told of the expected standards of conduct required and when the matter will be reviewed again, which should generally be within three months. Should further problems arise before the review date, the manager may take further action before the timescale has elapsed. The employee should be made aware that this could happen. 3.1.3 Notes of the discussion should be written for the manager’s own reference and a copy given to the employee. The notes should detail the nature of misconduct discussed, the required standard of conduct, any training, support or additional supervision that is to be provided, and the likely consequence of further breaches of conduct. The notes should be kept confidentially by the manager and disposed of as confidential waste at the end of the review period. 3.1.4 Informal discussions may not always be appropriate action. Where a manager is uncertain as to whether or not informal action is appropriate they should seek advice from HR. 3.2 Disciplinary investigation 3.2.1 Where, following an initial review, the manager considers that it is inappropriate to have an informal discussion or where an informal discussion has already taken place, a full and impartial investigation must be undertaken. 3.2.3 Where a manager wishes to commence a disciplinary investigation they must seek authority from the relevant senior manager with appropriate delegation authority. The senior manager will nominate a manager to lead the investigation with the support of HR. 3.2.4 The employee under investigation will be informed that an investigation is being carried out, the nature of the complaint or allegation under investigation, together with the name of the person leading the investigation. This will be confirmed in writing together with a copy of the Council’s disciplinary policy and procedure, rules and code of conduct. 3.2.5 The purpose of the investigation is to establish the facts. The size and make up of the investigation panel will depend on the seriousness and complexity of the allegations. Anyone connected with the allegations should not be involved in conducting the investigation. The investigating officer will present the management case in the event that a case proceeds to a disciplinary hearing. 3.2.6 The employee and any witnesses will be required to attend separate investigatory meetings. A minimum of three days written notice shall be provided of such meetings. With the consent of all parties this period of notice may be reduced as it is desirable that such meetings should take place as soon as possible. 3.2.7 The employee being investigated has the right to be represented at the investigation meeting, by either a recognised Trade Union representative or a work colleague. 3.2.8 An investigation meeting may be postponed at the discretion of the investigating officer if the chosen representative is unavailable. The investigating officer shall generally agree such a postponement where a reasonable alternative date and time in the near future is proposed by the employee/representative. 3.2.10 Witnesses will not normally need to be accompanied to an investigation meeting, but may request to be accompanied by a Trade Union representative or work colleague where they feel that there are special circumstances in which they feel that they require such support, for example, where the witness is alleged to have experienced bullying, harassment or discrimination. Where a witness is accompanied at an investigation meeting the role of the person accompanying them is to provide support. 3.2.11 Notes of the meeting will be taken in writing by a designated note-taker, arranged by the investigating manager. A copy of the notes taken will be provided to the employee, as soon as is reasonably practicable, to be checked for accuracy. Notes of the meeting should be kept, together with any supporting documents as possible evidence at any future disciplinary hearing, if appropriate. 3.2.12 The investigating manager will prepare a report of their investigation indicating their findings to the relevant senior manager who will determine whether or not a disciplinary hearing is required based upon the findings of the investigation. If it is decided that it is not appropriate to convene a disciplinary hearing the employee will be informed in writing that no disciplinary action is being taken. Where appropriate, informal advice or guidance may be given to an employee by their line manager. 3.3 Suspension 3.3.1 During the investigation, it may be necessary, to suspend the employee where there is the possibility of a charge of gross misconduct. This will be in exceptional circumstances in order to enable investigations to be made which could be hindered by an employee’s continued presence at work. Before suspending an employee, consideration must be given to whether short-term relocation to another work area or temporary suspension from some duties is a feasible alternative. Whether to suspend or not will depend on the circumstances of the case. Advice must be sought from HR before a suspension is arranged. 3.3.2 Where an employee is to be suspended, they should be informed that such suspension is a neutral action and is not in itself a disciplinary sanction. An employee who is to be suspended from some or all of their duties or relocated shall be invited to a confidential meeting, having been given sufficient notice, where possible, to enable them to arrange to be accompanied by a Trade Union representative or work colleague, so that they may be advised in person of the terms of their suspension/relocation. Where the employee is unable to obtain Trade Union representation at the suspension/relocation meeting, they must be advised that they may seek TU advice/representation at any subsequent meeting. 3.3.3 An employee can only be suspended by an officer with delegated authority to suspend. The Executive Director and the Departmental HR Business Partner or Employee Relations Officer shall be advised of all suspensions. 3.3.4 Suspension will be: - on full pay - for a specified period of no more than three months, although this may be extended for further periods of no more than one month on each occasion - clear as to the conditions that may apply, for example entry to Council premises, contact with Council staff, recording any periods of sickness or of annual leave during the suspension, use of Council equipment and resources etc. (The Council shall not generally prevent employees from using Council facilities as a member of the public, or seek to restrict social contact outside of a work context with fellow employees who may be friends or relatives of the suspended employee) - subject to regular review in light of changed circumstances and for no longer than necessary - confirmed in writing to the employee stating the reason(s) for the suspension, its likely duration, and any conditions that apply. A copy of the letter confirming suspension will be given to the employee’s representative 3.3.5 HR is responsible for advising Service Directors, on a monthly basis, details of all suspensions in their service area. 4. Formal stage 4.1 Disciplinary hearing 4.1 Where it is genuinely believed that there is a disciplinary case to answer a formal disciplinary hearing will be convened. 4.1.2 The hearing will be conducted by a disciplinary panel and a HR representative, who will provide guidance on the procedural aspects of the process. 4.1.3 The disciplinary panel shall consist of a minimum of two managers neither of whom shall have had any prior involvement in the case and at least one of whom shall not be in the management line of the employee. The panel Chair shall be either trained or suitably experienced in chairing formal panels. 4.2 Notification of formal hearing 4.2.1 The manager will notify the employee in writing, with a copy to the employee’s representative of the intention to hold a disciplinary hearing. The letter instructing the employee to attend the disciplinary hearing should: - give the employee at least 5 full working days notice of the hearing - set out the date, time and place of the hearing and the names of the managers on the panel - confirm the nature of the alleged offence, conduct or complaint. This should be set out as one or more disciplinary charges specifying in each case the allegation the Disciplinary Rule which it is alleged that the employee has breached. [e.g. It is alleged that on date X you did Y in breach of disciplinary rule Z] - advise the employee of their right to be represented at the hearing by either a recognised trade union representative or a workplace colleague - where possible, be accompanied by the documents that the manager will present at the hearing, although these can be sent under separate cover provided they arrive no later than five full working days before the hearing. Documents to be considered at a formal hearing should be set out in a logical order, indexed and paginated, with a written introduction including any conclusions and recommendations to the panel. - advise of the names of any witness intended to be called and copies of any documents or statements which will be produced. This will include the investigation report - advise that the offence, if proved may result in formal disciplinary action being taken. Where the allegations are allegations of gross misconduct or where the employee already has a live final warning, the letter should indicate that the outcome could be dismissal from employment - advise of the requirement that the employee advise the manager of the name of their representative and the names of any witnesses to be called at least one working day before the hearing - Advise of the requirement to provide copies of any documentation material at least one working day prior to the hearing. (NB. A disciplinary panel shall have discretion to consider documentation submitted after this deadline where they consider it to be relevant to the disciplinary charge(s) 4.3 Attendance at a formal hearing 4.3.1 The following may attend a disciplinary hearing: - The employee facing disciplinary action. - The Panel of managers who will hear the case - A HR representative who shall act as an impartial advisor to the panel - The employee - The employee’s representative - The investigating officer - A note taker - Any other member of staff invited by the Panel to advise or give information as a witness who shall remain only for the duration of their evidence - Other employees may attend for training purposes with the consent of the Chair of the Panel 4.4 Requests for postponement 4.4.1 At the request of the employee the hearing may be postponed on one occasion. The reasons for the postponement must be explained to the chair of the panel, who will decide whether to agree or not to the postponement. If agreed, the employee must give an alternative date, no more than 5 working days after the original date for the hearing. 4.4.2 The hearing will not normally be re-arranged more than once. Further requests for postponement of a hearing will be considered on their merits by the Chair of the panel and will not always be agreed. Following one postponement the hearing may proceed in the absence of the employee. 4.5 Order of business 4.5.1 The order of business at a disciplinary hearing will normally be: - Introductions - Presentation by management, which may include the calling of witnesses, who may give their evidence, be cross-examined by the employee/representative and questioned by the panel - Questions to management by employee/representative and the panel - Presentation by the employee/representative, which may include the calling of witnesses, who may give their evidence, be cross-examined by management and questioned by the panel - Questions to the employee/representative by management and the panel - Summing up by the management representative - Summing up by the employee/representative - Decision of the panel 4.6 Outcomes at a disciplinary hearing 4.6.1 Having considered everything they have heard at the disciplinary hearing, the disciplinary panel shall consider first of all whether the procedure has been correctly applied and, if so, whether the disciplinary charges have been proven. 4.6.2 Where the disciplinary charges have been found proven the panel shall consider whether or not to apply any disciplinary sanction. In discerning an appropriate disciplinary sanction, no account should be taken of any lapsed warnings. The following sanctions are available; a) Written warning A written warning will be issued for serious matters or repetition or continuation of an offence for which an informal warning was issued (and remains live). A written warning will generally be given for a first offence of misconduct (other than gross misconduct). A copy of the warning will remain on the personal file for 12 - 24 months after which time it will be disregarded for disciplinary purposes. The disciplinary panel shall determine the appropriate duration of the warning having regard to the seriousness of the offence and any mitigating circumstances. b) Final written warning A final written warning will be issued if a written warning has already been issued and another offence has occurred or, where the conduct is of such a serious nature that a first written warning is not deemed appropriate, or where the offence could have warranted dismissal but the panel decides that this is not appropriate in all the circumstances (including having regard to any mitigating circumstances). A copy of the warning will normally remain on the personal file for 24 – 60 months after which time it will be disregarded for disciplinary purposes. The disciplinary panel shall determine the appropriate duration of the warning having regard to the seriousness of the offence and any mitigating circumstances. c) Disciplinary transfer and/or demotion Disciplinary transfer and/or demotion shall be available as an alternative to dismissal with the consent of the employee. Before deciding to offer disciplinary transfer or demotion as an alternative to dismissal the disciplinary panel shall satisfy themselves that a suitable post has been identified. In cases of transfer to a lower graded post, the employee will be expected to undertake the full range of duties for that post. There will be no salary protection where a loss of pay is incurred as a result of the transfer or demotion. d) Dismissal /Summary dismissal Dismissal may only be applied where a final warning has previously been issued or where an allegation of gross misconduct is found to be proven. Summary dismissal, dismissal without previous warning and without notice, will only apply in cases of gross misconduct, where there has been a serious breach of discipline and where it would be inappropriate for the employee to remain in the employment of the Council for the notice period. 4.7 Notification of the decision 4.7.1 The outcome of the disciplinary hearing will be communicated to the employee in writing within five working days of the date of the meeting. The outcome letter will contain the following points: - the allegations addressed at the hearing - any matters taken into account in reaching the decision - any mitigating circumstances put forward by the employee - the decision on the findings of the allegations - the sanction to be imposed, and the reason for that sanction - where the sanction is summary dismissal, an explanation of the circumstances warranting summary dismissal - the period that any warning will stay live for - full particulars of what is expected of the employee in future in terms of behaviour, performance, attitude etc and the time scale in which improvements must be made - any actions to be undertaken by management - that further occurrences of the allegations or any of a similar nature will result in further disciplinary action. Where a final warning has been issued it will be made clear that further occurrences of the allegations or any of a similar nature may, after a further disciplinary hearing, result in dismissal - details of the employee’s right of appeal against the decision of the panel, together with time scales for exercising these rights - that if there is no need to take further disciplinary action during the time period specified, the warning will be expunged from the employee’s record 5. Appeal 5.1 Lodging an appeal 5.1.1 The employee can appeal against any formal action taken under this procedure. The purpose of the appeal is to review the decision taken by the disciplinary panel, not to re-hear the case. 5.1.2 The appeal must be made in writing, to the Executive Director, within 10 working days of receipt of written confirmation of the decision and will normally be heard within twenty working days from receipt of the appeal letter. 5.1.3 The Executive Director or his or her nominee shall arrange for the appeal to be heard by a panel of at least two officers, one of whom must be at the same or higher grade as the chair of the original panel. Neither shall be in the direct line management of the employee. 5.2 Common appeal conditions 5.2.1 The grounds of appeal should relate to one or more of the following: a) The procedure An appeal can be lodged on the grounds that the disciplinary procedure was applied unfairly or inaccurately. b) The facts An appeal can be lodged where the employee believes that the facts of the case did not support the decision made; that the facts considered were not relevant; that the facts were nor substantiated; or where there are new facts/evidence which needs to be considered that has come to light subsequent to the hearing. c) The decision An appeal can be lodged where the employee feels that the sanction received is disproportionate to the charges found taking into account the evidence/mitigating circumstances presented. 5.2.1 The appellant will be given 5 working days notice of the appeal hearing along with any documents which management will present at the appeal. The appellant must provide their own documents within two working days of the hearing. 5.2.3 The panel will review whether the original decision was reasonable having reviewed the grounds for appeal. The Appeal Panel shall have discretion to go into as much detail as they consider necessary in order to give a fair hearing to the appeal. The decision at appeal shall be either to uphold the original decision of the formal hearing or to issue a lesser sanction the appeal decision, or to overturn the original decision and impose no sanction. This decision shall be final and will be confirmed in writing. 5.2.4 Notes shall be taken at an appeal hearing and a copy provided to the appellant within 10 working days of the hearing. 6. Details of approval and variation process 6.1 Where the Council wishes to amend or terminate this procedure, it will consult with the relevant trade union with a view to reaching agreement over the proposed amendment(s)/termination. This procedure may be amended or terminated by agreement with the relevant trade unions at any time. Where agreement has not been reached with the relevant trade unions arising from consultations, the Council reserve the right to implement its proposed amendment(s)/termination by giving one months notice to employees of its proposal(s). 6.2 This policy is approved and signed by: Nana Amoa-Buahin\ Divisional Director Human Resources Jon Rogers (Branch Secretary – UNISON)\ On behalf of Trade Unions Appendix one: Disciplinary rules 1. Introduction 1.1 These rules apply to all Council employees. Any breaches of these rules may result in disciplinary action. 1.2 The list of rules amounting to misconduct or gross misconduct are neither exclusive nor exhaustive. There may be other offences of a similar gravity which will constitute misconduct or gross misconduct. 1.3 It should be noted that there may be circumstances where breaches listed as misconduct may be regarded as gross misconduct due to the nature, severity and/or frequency of the misconduct and taking into account the seniority of the job held by the employee. 2. Misconduct 2.1 Misconduct is conduct that falls below the Council expected standards of behaviour as set out in the staff code of conduct. Instances of misconduct will not warrant dismissal on the first occasion or without previous warning. 2.2 Examples of misconduct are: 01. Refusal to obey legitimate management instructions 02. Negligence in performance of duties 03. Bad time keeping including taking excess breaks 04. Absenteeism and leaving the workplace without permission 05. Misconduct in relationships with fellow employees, clients or members of the public 06. Damage to Council property 07. Swearing or verbal abuse of fellow employees, clients or members of the public 08. Being under the influence of drink or other intoxicants 09. Breach of safety rules 10. Non-compliance with sick pay scheme 11. Unauthorised use of Councils facilities, for example, email and internet, telephone, photocopiers and vehicles 12. Breaches of the Council’s financial regulations, code of conduct 13. Mismanagement of council finances leading to the overspend of a manager’s budget. 14. Failure to declare personal interests as outlined in the staff code if conduct 15. Gross Misconduct 3.1 Gross Misconduct is misconduct of such a serious nature that the Council is justified in no longer tolerating an employee’s continued presence at their place of work. 3.2 An allegation of gross misconduct may lead to the employee’s immediate suspension from work, pending a full investigation. Where, after due consideration, the allegations against the employee are substantiated, the employee will be dismissed without notice, unless there are any mitigating circumstances. 3.2 Examples of gross misconduct are: 01. Acts of discrimination, harassment or verbal abuse against employees, clients or members of the public on the grounds of race, colour, creed, ethnic or national origin, disability age, gender, sexuality or marital status. This may include the production, distribution, display or communication of material which may give rise to offence on any of these grounds. (Materials will be taken to include books, posters, magazines, cartoons, cards, emails, advertisements, calendar, photographs, videos etc) 02. Harassment, bullying and victimisation of any employee 03. Unauthorised removal, possession or theft of property belonging to the Council, a fellow employee, client or member of the public. 04. Acts of violence including the physical assault on, or serious threat against a fellow employee, client, or member of the public 05. Falsification of qualifications or information in connection with employment 06. Sexual misconduct at work 07. Malicious damage to Council property 08. Falsification of time sheets, subsistence and expenses claims etc 09. Acceptance or bribes or other corrupt practices 10. Unauthorised access to, use or disclosure of confidential matters including the unauthorised use or disclosure of any computer-held or computer generated information from which a living individual can be identified 11. Conviction for a criminal offence unconnected with the Council but which removes an employees acceptability to remain in employment; for example a cashier convicted of theft, a residential child care officer or a driver convicted of driving under the influence of drink or drugs 12. Serious breaches of safety rules including deliberate damage to, or misappropriation of safety equipment or endangering others under the influence of intoxicants 13. Holding unauthorised (un)paid employment during Council time 14. Acts of fraud against the Council or other public organisations, for example, other local authorities and benefits agencies 15. Serious breaches of the Staff Code of Conduct 16. Unauthorised indebtedness to the Council 17. Serious mismanagement of council finances leading to the significant overspend of a manager’s budget. 18. Failure to renew a Criminal Records Bureau (CRB) Disclosure or any membership to a professional body, where this is prerequisite to the role.	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/3531-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 18, "total-input-tokens": 33074, "total-output-tokens": 7364, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 168, 1 ], [ 168, 3946, 2 ], [ 3946, 5833, 3 ], [ 5833, 7120, 4 ], [ 7120, 9573, 5 ], [ 9573, 10448, 6 ], [ 10448, 13371, 7 ], [ 13371, 16454, 8 ], [ 16454, 18264, 9 ], [ 18264, 21033, 10 ], [ 21033, 23131, 11 ], [ 23131, 25788, 12 ], [ 25788, 27556, 13 ], [ 27556, 29993, 14 ], [ 29993, 30749, 15 ], [ 30749, 32373, 16 ], [ 32373, 34699, 17 ], [ 34699, 35410, 18 ] ] }
d22d54bbcc4b0cd68de238887d8ef12e5410f182	LONDON BOROUGH OF LAMBETH JOB SHARE SCHEME POLICY The Council recognises that job sharing is an important recruitment and retention tool. LEGISLATION Employment Rights Act 1996: Provides for employees to be informed about their conditions of employment. Equalities Legislation: Addresses the rights of individuals to be treated fairly and equitably and not to be discriminated against for reasons of race, gender and disability. AIM To enhance job and career opportunities for employees and improve efficiency whilst enabling the Council to attract new staff and retain existing staff unable to work standard hours. APPLICATION • Chief Officers or Service Managers shall decide whether or not jobs will be considered for job share. Reasons for not applying job share arrangements must be job related. • Applicants can apply for job share either as an individual or with a partner. If they apply with a partner, individual applications will be treated on their own merit. • Sharers will normally be required to share the hours evenly between them, however this does not preclude alternative arrangements which are mutually agreed and subject to review in the light of service needs. PROCESS Job sharing is defined as the voluntary sharing by two people of the responsibilities of a single full time established job where the work, pay, holidays and benefits are shared. Jobs can be shared in a variety of ways, e.g. split days, split weeks, alternate days or weeks. Such combinations will depend on the needs of the service and the job sharers. Managers should ensure that wherever an arrangement of work hours is being settled, the hours/days/weeks determined for each job sharer forms a sufficiently viable package to attract new applicants should one half of the job share need to be advertised. This should be clearly explained to potential job sharers at the earliest possible time. The method of working and division of duties must be clear. Such division may be into projects, tasks, clients, time or such other alternative division as meets the needs of the business/service. Effective liaison and communication between job sharers is important. Employees who wish to job share their existing job should apply in writing to their Service Manager giving their reasons for it and how they see the arrangement working. The application should be considered by the Service Manager and the implications fully considered. If practicable the Service Manager shall agree in principle to the job share arrangement, and shall, where appropriate, arrange for the recruitment process for a job share partner to begin. Employees should be reminded that a reduction in hours will affect their holidays, pension, pay and pay related entitlements. Where current employees are seeking to transfer to job share arrangements, this will normally commence when both partners are in post. Job sharers will have access to training opportunities on the same basis as full time employees. Job sharers will be given equal opportunities in terms of selection, promotion and access to training. Job sharers who attend training courses in their own time at management’s request shall be paid at plain time. If a job share request is refused, there must be good sound service reasons for the refusal. If the job is held to be exempt and the application refused, the employee must be formally notified of the reasons in writing. If the employee is dissatisfied with this decision they should discuss the matter with their line manager and if they still remain dissatisfied they can submit a grievance. WORKING ARRANGEMENTS - If an application is agreed, a revised contract of employment should be issued in accordance with the following: a) Each partner of a job share must have their own contract of employment, which may be permanent or temporary. b) Starting salary for a newly appointed job sharer will be calculated, pro rata, in the same way as if a full time appointment had been made. c) The number of hours to be worked, and any other arrangements governing working hours, will be stated individually for each of the job sharers. d) All terms and conditions of service, which apply to full-time employees, will apply to job-sharers. e) All entitlements associated with length of service, e.g. sick pay; annual leave; and other conditions of service will be individually applied and calculated on a pro rata basis (see L. B. Lambeth Leave Code for method of calculation of annual leave for job share employees). f) Payments and statutory holidays will be shared pro rata to the number of hours worked. g) Salary progression will be on an individual basis. - Sharers in jobs attracting an essential car user allowance will receive the allowance for the lowest category of engine size in accordance with the provisions of the Green Book, Part 2, para. 8.1(b). - Any review of the grading of the post will take into account the duties as a whole and not the individual duties and responsibilities of specific job sharers. - If one job share partner leaves the following options may be available: - Increase the hours of the remaining job share partner - Seek alternative partner - Non-replacement of job sharer - Re-arrangement of hours - Where one partner is absent from work for any reason, there is no contractual right of management to expect the other partner to cover. Where one partner agrees to cover for the absent job sharer, the additional hours will be paid at plain time. Where the job sharer is requested to, and does, work excess hours to those contracted, the Service Manager may agree to time off in lieu, or payment at plain time. • Changes to job share arrangements should be carried out in consultation with employees.	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/3532-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 4, "total-input-tokens": 6431, "total-output-tokens": 1331, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 1194, 1 ], [ 1194, 3600, 2 ], [ 3600, 5686, 3 ], [ 5686, 5775, 4 ] ] }
afaf8a96be11db2f7dc3d029dbd3627f2257749e	Application No: N/2003/1059 Location: Land/garages at Elizabeth Street Proposal: Demolition of 3 no. garages/stores and the erection of a single dwelling with integral garage Officer: Mrs Rita Bovey Recommendations: REFUSAL for the following reason: The proposed development, by reason of its position, height and massing, would appear overbearing and unduly dominant when seen from the rear of the properties at nos. 72 to 78 Lower Thrift Street and would result in the loss of outlook and openness from those properties. It is considered that the development would have a seriously detrimental effect upon the residential amenities of the occupiers at nos. 72 to 78 Lower Thrift Street for these reasons contrary to Policies H6, H19 and E20 of the Northampton Local Plan. Site Description and History: The application site is located on the east side of Elizabeth Street immediately adjoining the rear gardens of the properties along Lower Thrift Street. It contains a block of three lock-up garages. The proposal relates to the demolition of the garages and erection of a two-storey dwelling house with an integral garage. The proposed dwelling, with a height of 4.7 metres to the eaves level and 6.3 metres to the ridge, will front directly onto Elizabeth Street. Apart from three velux rooflights, no other window openings have been proposed at the side and rear elevations of the proposed dwelling. The applicant’s agent has submitted a letter to support the application proposal (as appended to the report). Planning Policy: Northampton Local Plan Policies H6, H19 and E20. PPG3 (Housing). Consultations: Environmental Health – no objections. Representations: Thrifts Streets Residents Association – object to the proposal; do not object in principle to the idea of redevelopment of brownfield land in the area but should not include land that is or was previously the back gardens of Victorian housing; the overall nature and character of the proposed building is not compatible with and does not match the existing character of the wider area; the proposed dwelling is too close to houses and gardens of nos.70-80 Lower Thrift Street, the east facing windows in the upper storey will directly overlook these properties severely reducing their privacy and introducing an unreasonable level of intrusion; the new dwelling will significantly reduce the light and visual amenity of the houses on Lower Thrift Street; the dwelling is designed for single occupancy, as have a number of other units approved in the area in recent times, concerned that this trend will cause long term changes in the population structure and balance, with a decrease in the numbers of properties in family use. Also objected to the increase of housing density and traffic in the area. 72 Lower Thrift Street – object to the application; the proposed building will block off light to the house and garden; the proposed building, with only skylights in the roof, is unsightly; the two storey wall at the end of the gardens of 72 to 78 Lower Thrift Street would block these properties in like prison walls. 74 Lower Thrift Street – object to the application; the proposed building will enclose the top of the gardens of 72 to 78 Lower Thrift Street, together with the existing exterior walls of the R.A.O.B. Club at no.70 and the old bake house at no.80, the four gardens will be turned into a brick built compound. The outlook and the value of the property will be affected. 78 Lower Thrift Street – strongly object to the application; the new house would overlook gardens and invading on privacy; the building would create more shade in the garden and residents would have to look at a brick wall at the rear of the houses. Parking around the rear would be made more difficult, parents dropping off children for the school would have limited parking from the Elizabeth Street entrance meaning they would take up parking in Lower Thrift Street. Also objected to the noise and dirt resulting from the building works. Appraisal: The properties at nos. 72 to 78 Lower Thrift Street are currently bounded by the two relatively substantial brick built outriggers at nos. 70 and 80 on both sides. The rear elevation of the proposed dwelling, because of its height and design, would have an enclosing effect and create an overbearing and dominant effect upon these houses and gardens. Notwithstanding the advice contained in PPG3 (Housing) regarding infill dwellings in existing urban areas, the proposal is considered unacceptable and would detract from the living conditions currently enjoyed by the occupiers of those properties.	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/3533-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 3, "total-input-tokens": 5050, "total-output-tokens": 1112, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 1661, 1 ], [ 1661, 4642, 2 ], [ 4642, 4642, 3 ] ] }
fb3a6e52c00d30c401134fefe911074b5663edd1	Guidance National lockdown: Stay at Home Coronavirus cases are rising rapidly across the country. Find out what you can and cannot do. Published 4 January 2021 Last updated 6 January 2021 — see all updates From: Cabinet Office Applies to: England Contents - Summary: what you can and cannot do during the national lockdown - Who this guidance is for - Hands. Face. Space. - When you can leave home - Meeting other people - Exercising - Face coverings - Support and childcare bubbles - If you break the rules - Protecting people more at risk from coronavirus - Going to work - Going to school or college - Universities - Childcare - Travel - International travel - Staying away from home overnight - Care home visits - Funerals - Weddings, civil partnerships and religious services - Places of worship - Sports and physical activity - Moving home - Financial support - Businesses and venues - Businesses and venues which can remain open - Healthcare and public services Summary: what you can and cannot do during the national lockdown You must stay at home. The single most important action we can all take is to stay at home to protect the NHS and save lives. You should follow this guidance immediately. This is the law. Leaving home You must not leave, or be outside of your home except where necessary. You may leave the home to: - shop for basic necessities, for you or a vulnerable person - go to work, or provide voluntary or charitable services, if you cannot reasonably do so from home - exercise with your household (or support bubble) or one other person, this should be limited to once per day, and you should not travel outside your local area. - meet your support bubble or childcare bubble where necessary, but only if you are legally permitted to form one - seek medical assistance or avoid injury, illness or risk of harm (including domestic abuse) - attend education or childcare - for those eligible If you do leave home for a permitted reason, you should always stay local - unless it is necessary to go further, for example to go to work. Stay local means stay in the village, town, or part of the city where you live. If you are clinically extremely vulnerable you should only go out for medical appointments, exercise or if it is essential. You should not attend work Meeting others You cannot leave your home to meet socially with anyone you do not live with or are not in a support bubble with (if you are legally permitted to form one). You may exercise on your own, with one other person, or with your household or support bubble. This should be limited to once per day, and you should not travel outside your local area. You cannot meet other people you do not live with, or have not formed a support bubble with, unless for a permitted reason. Stay 2 metres apart from anyone not in your household. Education Colleges, primary and secondary schools will remain open only for vulnerable children and the children of critical workers. All other children will learn remotely until February half term. Early years settings remain open. Higher Education provision will remain online until mid February for all except future critical worker courses. Who this guidance is for This guidance is for people who are fit and well. There is additional advice for people who are clinically extremely vulnerable to coronavirus and households with a possible or confirmed coronavirus infection. If you are clinically extremely vulnerable you should follow resumed shielding guidance and should not attend work, school, college or university. You should limit the time you spend outside the home. You should only go out for medical appointments, exercise or if it is essential. Hands. Face. Space. Approximately 1 in 3 people who have coronavirus have no symptoms and could be spreading it without realising it. Remember - ‘Hands. Face. Space.’ - hands – wash your hands regularly and for at least 20 seconds - face – wear a face covering in indoor settings where social distancing may be difficult, and where you will come into contact with people you do not normally meet - space – stay 2 metres apart from people you do not live with where possible, or 1 metre with extra precautions in place (such as wearing face coverings) In all circumstances, you should follow the guidance on meeting others safely. When you can leave home You must not leave or be outside of your home except where you have a ‘reasonable excuse’. This is the law. The police can take action against you if you leave home without a ‘reasonable excuse’, and issue you with a fine (Fixed Penalty Notice). You can be given a Fixed Penalty Notice of £200 for the first offence, doubling for further offences up to a maximum of £6,400. A ‘reasonable excuse’ includes: Work You can only leave home for work purposes where it is unreasonable for you to do your job from home. This includes, but is not limited to, people who work within critical national infrastructure, construction or manufacturing that require in-person attendance. Volunteering You can also leave home to provide voluntary or charitable services. Essential activities You can leave home to buy things at shops or obtain services. You may also leave your home to do these things on behalf of a disabled or vulnerable person or someone self-isolating. Education and childcare You can only leave home for education, registered childcare, and supervised activities for children where the child is eligible to attend. Access to education and children’s activities for school-aged pupils is restricted. See further information on education and childcare. You can continue existing arrangements for contact between parents and children where they live apart. If you live in a household with anyone aged under 14, you can also form a childcare bubble. Meeting others and care You can leave home: - to visit people in your support bubble (if you are legally permitted to form one) - to provide informal childcare for children under 14 as part of a childcare bubble (for example, to enable parents to work, not to enable social contact between adults) - to provide care for disabled or vulnerable people - to provide emergency assistance - to attend a support group (of up to 15 people) - for respite care where that care is being provided to a vulnerable person or a person with a disability, or is a short break in respect of a looked-after child. Exercise You can continue to exercise alone, with one other person or with your household or support bubble. This should be limited to once per day, and you should not travel outside your local area. You should maintain social distancing. See exercising. Medical reasons You can leave home for a medical reason, including to get a COVID-19 test, for medical appointments and for emergencies. Maternity You can leave home to be with someone who is giving birth or, accessing other maternity services, or to be with a baby receiving neonatal critical care. There is NHS guidance on pregnancy and coronavirus. Harm You may leave home, to avoid injury or illness or to escape risk of harm (such as domestic abuse). Compassionate visits You may also leave home to visit someone who is dying or someone in a care home (if permitted under care home guidance), hospice, or hospital, or to accompany them to a medical appointment. Animal welfare reasons You can leave home for animal welfare reasons, such as to attend veterinary services for advice or treatment. Communal worship and life events You can leave home to attend or visit a place of worship for communal worship, to attend a funeral or event related to a death, to visit a burial ground or a remembrance garden, or to attend a wedding ceremony. You should follow the guidance on the safe use of places of worship and must not mingle with anyone outside of your household or support bubble. Weddings, funerals and religious, belief-based or commemorative events linked to someone’s death are all subject to limits on the numbers that can attend. Further reasonable excuses There are further reasonable excuses. For example, you may leave home to fulfil legal obligations, or to carry out activities related to buying, selling, letting or renting a residential property, for the purpose of picketing, or where it is reasonably necessary for voting in an election or referendum. Meeting other people It is against the law to meet socially with family or friends unless they are part of your household or support bubble. You cannot leave home for recreational or leisure purposes (such as for a picnic or a social meeting). Exercising You should minimise time spent outside your home, but you can leave your home to exercise. This should be limited to once per day, and you should not travel outside your local area. You can exercise in a public outdoor place: - by yourself - with the people you live with - with your support bubble (if you are legally permitted to form one) - in a childcare bubble where providing childcare - or, when on your own, with 1 person from another household This includes but is not limited to running, cycling, walking, and swimming. Personal training can continue one-on-one unless everyone is within the same household or support bubble. Public outdoor places include: - parks, beaches, countryside accessible to the public, forests - public gardens (whether or not you pay to enter them) - the grounds of a heritage site - playgrounds Outdoor sports venues must close, for example: - tennis courts - golf courses - swimming pools Children under 5, and up to 2 carers for a person with a disability who needs continuous care, are not counted towards the gatherings limits for exercising outside. If you (or a person in your care) have a health condition that routinely requires you to leave home to maintain your health - including if that involves travel beyond your local area or exercising several times a day - then you can do so. When around other people, stay 2 metres apart from anyone not in your household - meaning the people you live with - or your support bubble. Where this is not possible, stay 1 metre apart with extra precautions (like wearing a face covering). Face coverings You must wear a face covering in many indoor settings, such as shops or places of worship where these remain open, and on public transport, unless you are exempt. This is the law. [Read guidance on face coverings](#). Support and childcare bubbles You have to meet certain eligibility rules to form a support or childcare bubble. This means not everyone will be able to form a bubble. A support bubble is a support network which links two households. You can form a support bubble with another household of any size only if you meet the eligibility rules. It is against the law to form a support bubble if you do not follow these rules. You are permitted to leave your home to visit your support bubble (and to stay overnight with them). However, if you form a support bubble, it is best if this is with a household who live locally. This will help prevent the virus spreading from an area where more people are infected. If you live in a household with anyone aged under 14, you can form a childcare bubble. This allows friends or family from one other household to provide informal childcare. You must not meet socially with your childcare bubble, and must avoid seeing members of your childcare and support bubbles at the same time. There is separate guidance for support bubbles and childcare bubbles. Where and when you can meet in larger groups There are still circumstances in which you are allowed to meet others from outside your household, childcare or support bubble in larger groups, but this should not be for socialising and only for permitted purposes. A full list of these circumstances will be included in the regulations, and includes: - for work, or providing voluntary or charitable services, where it is unreasonable to do so from home. This can include work in other people’s homes where necessary - for example, for nannies, cleaners, social care workers providing support to children and families, or tradespeople. See guidance on [working safely in other people’s homes](#). Where a work meeting does not need to take place in a private home or garden, it should not - for example, although you can meet a personal trainer, you should do so in a public outdoor place. - in a [childcare bubble](#) (for the purposes of childcare only) - where eligible to use these services, for education, registered childcare, and supervised activities for children. Access to education and childcare facilities is restricted. See further information on [education and childcare](#). - for arrangements where children do not live in the same household as both their parents or guardians - to allow contact between birth parents and children in care, as well as between siblings in care - for prospective adopting parents to meet a child or children who may be placed with them - to place or facilitate the placing of a child or children in the care of another by social services - for birth partners - to provide emergency assistance, and to avoid injury or illness, or to escape a risk of harm (including domestic abuse) - to visit someone who is dying or to visit someone receiving treatment in a hospital, hospice or care home, or to accompany a family member or friend to a medical appointment - to fulfil a legal obligation, such as attending court or jury service - for gatherings within criminal justice accommodation or immigration detention centres - to provide care or assistance to someone vulnerable, or to provide respite for a carer - for a wedding or equivalent ceremony. This should only be in exceptional circumstances and is limited to 6 people. - for funerals - up to a maximum of 30 people. Wakes and other linked ceremonial events can continue in a group of up to 6 people. - for elite sportspeople (and their coaches if necessary, or parents/guardians if they are under 18) - or those on an official elite sports pathway - to compete and train - to facilitate a house move Support groups that have to be delivered in person can continue with up to 15 participants where formally organised to provide mutual aid, therapy or any other form of support - but they must take place at a premises other than a private home. Where a group includes someone covered by an exception (for example, someone who is working or volunteering), they are not generally counted as part of the gatherings limit. This means, for example, a tradesperson can go into a household without breaching the limit, if they are there for work, and the officiant at a wedding would not count towards the limit. If you break the rules The police can take action against you if you meet in larger groups. This includes breaking up illegal gatherings and issuing fines (fixed penalty notices). You can be given a Fixed Penalty Notice of £200 for the first offence, doubling for further offences up to a maximum of £6,400. If you hold, or are involved in holding, an illegal gathering of over 30 people, the police can issue fines of £10,000. Protecting people more at risk from coronavirus If you are clinically vulnerable, you could be at higher risk of severe illness from coronavirus. There is additional advice for people who are clinically extremely vulnerable to coronavirus. Those who are clinically extremely vulnerable should follow resumed shielding guidance and should not attend work, school, college or university. You should limit the time you spend outside the home. You should only go out for medical appointments, exercise or if it is essential. Going to work You may only leave your home for work if you cannot reasonably work from home. Where people cannot work from home they should continue to travel to their workplace. This includes, but is not limited to, people who work in: - critical national infrastructure - construction - manufacturing - childcare or education - essential public services This is essential to keeping the country operating and supporting sectors and employers. Where it is necessary for you to work in other people’s homes - for example, for nannies, cleaners or tradespeople - you can do so. Otherwise, you should avoid meeting for work in a private home or garden, where COVID-19 Secure measures may not be in place. Employers and employees should discuss their working arrangements, and employers should take every possible step to facilitate their employees working from home, including providing suitable IT and equipment to enable remote working. Where people cannot work from home, employers should take steps to help employees avoid busy times and routes on public transport. The risk of transmission can be substantially reduced if COVID-19 secure guidelines are followed closely. Extra consideration should be given to those people at higher risk. Going to school or college Colleges, primary (reception onwards) and secondary schools will remain open for vulnerable children and the children of critical workers. All other children will learn remotely until February half term. Exams In the circumstances, it is not possible for exams in the summer to go ahead as planned. The Department for Education will accordingly be working with Ofqual to consult rapidly to put in place alternative arrangements that will allow students to progress fairly. Providers can continue with the vocational and technical exams that are due to take place in January, where they judge it right to do so. Universities Those students who are undertaking training and study for the following courses should return to face to face learning as planned: - Medicine & dentistry - Subjects allied to medicine/health - Veterinary science - Education (initial teacher training) - Social work - Courses which require Professional, Statutory and Regulatory Body (PSRB) assessments and or mandatory activity which is scheduled for January and which cannot be rescheduled (your university will notify you if this applies to you). Returning students should be tested twice upon their return to university, or they should self-isolate for ten days instead. Students who are not on these courses should remain where they are wherever possible, and start their term online, as facilitated by their university or college until at least mid-February. This includes students on other practical courses not on the list above. We have previously published guidance to universities and students on how students can return safely to higher education in the spring term. This guidance sets out how we will support higher education providers to enable students that need to return to do so as safely as possible following the winter break. If you live at university, you should not move back and forward between your permanent home and student home during term time. For those students who are eligible for face to face teaching, you can meet in groups of more than your household as part of your formal education or training, where necessary. Students should expect to follow the guidance and restrictions. You should socially distance from anyone you do not live with wherever possible. Childcare There are several ways that parents and carers can continue to access childcare: - Early years settings (including nurseries and childminders) remain open - Childminders should continue to allow children to attend as normal except for school-aged children. Childminders caring for school-aged children (including reception children) should only admit vulnerable children and children of critical workers. - Vulnerable children and children of critical workers can continue to use registered childcare, childminders and other childcare activities (including wraparound care) - Parents are able to form a childcare bubble with one other household for the purposes of informal childcare, where the child is under 14. This is mainly to enable parents to work, and must not be used to enable social contact between adults - Some households will also be able to benefit from being in a support bubble - Nannies will be able to continue to provide services, including in the home Travel You must not leave your home unless you have a reasonable excuse (for example, for work or education purposes). If you need to travel you should stay local – meaning avoiding travelling outside of your village, town or the part of a city where you live – and look to reduce the number of journeys you make overall. The list of reasons you can leave your home and area include, but are not limited to: - work, where you cannot reasonably work from home - accessing education and for caring responsibilities - visiting those in your support bubble – or your childcare bubble for childcare - visiting hospital, GP and other medical appointments or visits where you have had an accident or are concerned about your health - buying goods or services that you need, but this should be within your local area wherever possible - outdoor exercise. This should be done locally wherever possible, but you can travel a short distance within your area to do so if necessary (for example, to access an open space) - attending the care and exercise of an animal, or veterinary services If you need to travel, walk or cycle where possible, and plan ahead and avoid busy times and routes on public transport. This will allow you to practise social distancing while you travel. Avoid car sharing with anyone from outside your household or your support bubble. See the guidance on car sharing. If you need to use public transport, you should follow the safer travel guidance. International travel You can only travel internationally – or within the UK – where you first have a legally permitted reason to leave home. In addition, you should consider the public health advice in the country you are visiting. If you do need to travel overseas (and are legally permitted to do so, for example, because it is for work), even if you are returning to a place you’ve visited before, you should look at the rules in place at your destination and the Foreign, Commonwealth and Development Office (FCDO) travel advice. UK residents currently abroad do not need to return home immediately. However, you should check with your airline or travel operator on arrangements for returning. Foreign nationals are subject to the ‘Stay at Home’ regulations. You should not travel abroad unless it is permitted. This means you must not go on holiday. If you are visiting the UK, you may return home. You should check whether there are any restrictions in place at your destination. Staying away from home overnight You cannot leave your home or the place where you are living for holidays or overnight stays unless you have a reasonable excuse for doing so. This means that holidays in the UK and abroad are not allowed. This includes staying in a second home or caravan, if that is not your primary residence. This also includes staying with anyone who you don’t live with unless they’re in your support bubble. You are allowed to stay overnight away from your home if you: - are visiting your support bubble - are unable to return to your main residence - need accommodation while moving house - need accommodation to attend a funeral or related commemorative event - require accommodation for work purposes or to provide voluntary services - are a child requiring accommodation for school or care - are homeless, seeking asylum, a vulnerable person seeking refuge, or if escaping harm (including domestic abuse) - are an elite athlete or their support staff or parent, if the athlete is under 18 and it is necessary to be outside of the home for training or competition If you are already on holiday, you should return to your home as soon as practical. Guest accommodation providers such as hotels, B&Bs and caravan parks may remain open for the specific reasons set out in law, including where guests are unable to return to their main residence, use that guest accommodation as their main residence, need accommodation while moving house, are self-isolating as required by law, or would otherwise be made homeless as a result of the accommodation closing. A full list of reasons can be found in the guidance on closing certain businesses and venues in England. Accommodation providers are also encouraged to work cooperatively with local authorities to provide accommodation to vulnerable groups, including the homeless. Care home visits Visits to care homes can take place with arrangements such as substantial screens, visiting pods, or behind windows. Close-contact indoor visits are not allowed. No visits will be permitted in the event of an outbreak. You should check the guidance on visiting care homes during COVID-19 to find out how visits should be conducted. Residents cannot meet people indoors on a visit out (for example, to visit their relatives in the family home). There is separate guidance for those in supported living. Funerals Funerals are allowed with strict limits on attendance, and must only take place in COVID-19 secure venues or in public outdoor spaces unless in exceptional circumstances. Funerals can be attended by a maximum of 30 people. Linked religious, belief-based or commemorative events, such as stone settings and ash scatterings can also continue with up to 6 people in attendance. Anyone working is not counted in these limits. Social distancing should be maintained between people who do not live together or share a support bubble. Weddings, civil partnerships and religious services Weddings and civil partnership ceremonies must only take place with up to 6 people. Anyone working is not included. These should only take place in exceptional circumstances, for example, an urgent marriage where one of those getting married is seriously ill and not expected to recover, or is to undergo debilitating treatment or life-changing surgery. Weddings and civil partnerships must only take place in COVID-19 secure venues or in public outdoor spaces unless in exceptional circumstances. Places of worship You can attend places of worship for a service. However, you must not mingle with anyone outside of your household or support bubble. You should maintain strict social distancing at all times. You should follow the national guidance on the safe use of places of worship. Sports and physical activity Indoor gyms and sports facilities will remain closed. Outdoor sports courts, outdoor gyms, golf courses, outdoor swimming pools, archery/driving/shooting ranges and riding centres must also close. Organised outdoor sport for disabled people is allowed to continue. Elite sport may continue. There is further guidance on the phased return of elite sport. Moving home You can still move home. People outside your household or support bubble should not help with moving house unless absolutely necessary. Estate and letting agents and removals firms can continue to work. If you are looking to move, you can go to property viewings. Follow the national guidance on moving home safely, which includes advice on social distancing, letting fresh air in, and wearing a face covering. Financial support Wherever you live, you may be able to get financial help - financial support packages for businesses - financial support for closed businesses as a result of tiering restrictions - claim for employee wages through Coronavirus Job Retention Scheme - check if you can claim a grant through the Self-Employment Income Support Scheme - financial support if you’re off work because of coronavirus Businesses and venues Businesses and venues which must close To reduce social contact, the regulations require some businesses to close and impose restrictions on how some businesses provide goods and services. The full list of businesses required to close can be found in the guidance on closing certain businesses and venues in England, but includes: - non-essential retail, such as clothing and homeware stores, vehicle showrooms (other than for rental), betting shops, tailors, tobacco and vape shops, electronic goods and mobile phone shops, auction houses (except for auctions of livestock or agricultural equipment) and market stalls selling non-essential goods. These venues can continue to be able to operate click-and-collect (where goods are pre-ordered and collected without entering the premises) and delivery services. - hospitality venues such as cafes, restaurants, pubs, bars and social clubs; with the exception of providing food and non-alcoholic drinks for takeaway (until 11pm), click-and-collect and drive-through. All food and drink (including alcohol) can continue to be provided by delivery. - accommodation such as hotels, hostels, guest houses and campsites, except for specific circumstances, such as where these act as someone’s main residence, where the person cannot return home, for providing accommodation or support to the homeless, or where it is essential to stay there for work purposes - leisure and sports facilities such as leisure centres and gyms, swimming pools, sports courts, fitness and dance studios, riding centres, climbing walls, and golf courses. - entertainment venues such as theatres, concert halls, cinemas, museums and galleries, casinos, amusement arcades, bingo halls, bowling alleys, skating rinks, go-karting venues, indoor play and soft play centres and areas (including inflatable parks and trampolining centres), circuses, fairgrounds, funfairs, water parks and theme parks - animal attractions (such as zoos, safari parks, aquariums, and wildlife centres) - indoor attractions at venues such as botanical gardens, heritage homes and landmarks must also close, though outdoor grounds of these premises can stay open for outdoor exercise. - personal care facilities such as hair, beauty, tanning and nail salons. Tattoo parlours, spas, massage parlours, body and skin piercing services must also close. These services should not be provided in other people’s homes - community centres and halls must close except for a limited number of exempt activities, as set out below. Libraries can also remain open to provide access to IT and digital services – for example for people who do not have it at home – and for click-and-collect services Some of these businesses and places will also be permitted to be open for a small number of exempt activities. A full list of exemptions can be found in the guidance on closing certain businesses and venues in England, but includes: - education and training – for schools to use sports, leisure and community facilities where that is part of their normal provision • childcare purposes and supervised activities for those children eligible to attend • hosting blood donation sessions and food banks • to provide medical treatment • for elite sports persons to train and compete (in indoor and outdoor sports facilities), and professional dancers and choreographers to work (in fitness and dance studios) • for training and rehearsal without an audience (in theatres and concert halls) • for the purposes of film and TV filming Businesses and venues which can remain open Other businesses and venues are permitted to stay open, following COVID-19 secure guidelines. Businesses providing essential goods and services can stay open. The full list of these businesses can be found in the guidance on closing certain businesses and venues in England, but includes: • essential retail such as food shops, supermarkets, pharmacies, garden centres, building merchants and suppliers of building products and off-licences • market stalls selling essential retail may also stay open • businesses providing repair services may also stay open, where they primarily offer repair services - petrol stations, automatic (but not manual) car washes, vehicle repair garages and MOT services, bicycle shops, and taxi and vehicle hire businesses - banks, building societies, post offices, short-term loan providers and money transfer businesses - funeral directors - laundrettes and dry cleaners - medical and dental services - vets and retailers of products and food for the upkeep and welfare of animals - animal rescue centres, boarding facilities and animal groomers (may continue to be used for animal welfare, rather than aesthetic purposes) - agricultural supplies shops - mobility and disability support shops - storage and distribution facilities - car parks, public toilets and motorway service areas - outdoor playgrounds - outdoor parts of botanical gardens and heritage sites for exercise - places of worship - crematoriums and burial grounds Healthcare and public services The NHS and medical services remain open, including: - dental services, - opticians, - audiology services, - chiropody, - chiropractors, - osteopaths - other medical or health services, including services relating to mental health We are supporting the NHS to carry out urgent and non-urgent services safely, and it is vital anyone who thinks they need any kind of medical care comes forward and seeks help. The majority of public services will continue and you will be able to leave home to visit them. 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59f750ea2fbff9c5825714b76718ebeb1a56946a	Report on the Landfill Allowances Scheme (LAS) Wales 2014/15 Final results October 2015 Executive Summary This report covers the tenth full year, 1st April 2014 to 31st March 2015, of the Landfill Allowances Scheme (LAS) in Wales. The results presented in this report are final. The purpose of the scheme is to ensure diversion of biodegradable municipal waste (BMW) from landfill. Welsh Government sets limits on the amount of BMW waste that local authorities in Wales can landfill. Compliance headlines Welsh local authorities sent 256,162 tonnes of BMW to landfill in 2014/15 compared to an overall Wales allowance of 430,000 tonnes. This was forty percent less (173,838 tonnes) than the allowance. All twenty-two local authorities achieved their individual allocated allowance. Wales has reduced the amount of BMW sent to landfill by seventy per cent (595,327 tonnes) since the first full year of the scheme in 2005/06. Reducing the amount of BMW waste going to landfill helps to cut greenhouse gas emissions, preventing the production and release of methane into the air from landfill sites. This is important, as methane is twenty five times more powerful than carbon dioxide as a greenhouse gas. Looking at individual local authority performance for 2014/15, Blaenau Gwent, Bridgend, Carmarthenshire, Ceredigion, Denbighshire, Monmouthshire, Neath Port Talbot, Pembrokeshire and Torfaen used less than forty per cent of their allowances, while Flintshire, Gwynedd and Wrexham used over ninety per cent of their allowance. As a whole, local authorities have continued to make good progress in diverting BMW from landfill. However, meeting the future targets up to 2020 will be particularly challenging for those local authorities that were close to exceeding their 2014/15 individual allowances. ______________________________________________________________________ 1 The Landfill Allowance Scheme refers only to local authority collected municipal waste 2 Out of a total of 1,543,357 tonnes of municipal solid waste arising by Welsh local authorities 3 851,489 tonnes of BMW was sent to landfill in 2005/06 Contents 1 Background 4 2 Validation - Monitoring Authority 5 3 Local authority Compliance 6 Annex 1 - Reporting of local authorities 9 Annex 2 - Local authority Compliance Summary Map 12 Key Quality Information 13 Glossary 14 Figures and Tables Figure 1. Amount of BMW landfilled compared to allowance for local authorities in Wales 2014/15 8 Figure 2. Proportion of local authorities reporting promptly in 2014/15 compared to 2013/14 10 Table 1. Comparison of WDF and landfill site returns data showing amount of municipal waste sent to landfill in Wales in 2014/15 and discrepancies between the two data sets before and after validation 6 Table 2. LAS Performance for 2014/15 7 Table 3. Statutory LAS reporting deadlines 9 Table 4. Compliance with WDF data reporting deadlines by local authorities 11 1 Background The Landfill Allowances Scheme (LAS) Wales was established through the Landfill Allowances Scheme (Wales) Regulations 2004. The purpose of the scheme is to ensure diversion of biodegradable municipal waste (BMW) from landfill. Reducing the amount of BMW waste going to landfill helps to cut greenhouse gas emissions, preventing the production and release of methane into the air from landfill sites. Methane is twenty five times more powerful than carbon dioxide as a greenhouse gas. Welsh Government sets limits on the amount of BMW waste that local authorities in Wales can landfill. Natural Resources Wales is the Monitoring Authority for the scheme and has the duty to report performance against individual local authorities’ annual allowance allocations and the collective total for Wales. Natural Resources Wales is responsible for reconciling the allowances available to each local authority with the amount of BMW that they have sent to landfill. Natural Resources Wales calculate the amount of BMW sent to landfill using a mass balance approach. The LAS Regulations also state that the amount of biodegradable waste local authorities collect should be sixty one per cent of the total collected municipal waste. The Welsh Government has since reviewed the biodegradability of municipal waste and concluded that this figure is still appropriate. Within five months of the end of the scheme year, Natural Resources Wales must determine the amount of BMW sent to landfill by each local authority. Natural Resources Wales provides the Welsh Government with the annual reconciled data on 1st September each year. The Welsh Local Government Association (WLGA) and local authorities are consulted on the data and the final report is published on the Natural Resources Wales website, which acts as the Landfill Allowances register. Any local authority that exceeds its allowance allocation is reported to the Welsh Government and is liable to financial penalties. The Welsh Government must establish and maintain a penalties register containing details of any such liabilities. More information relating to the allocation of allowances can be found in the Welsh Government document entitled ‘The Landfill Allowance Scheme: Allocation of Allowances 2009-2020’. ______________________________________________________________________ 4 The Landfill Allowances Scheme refers only to local authority collected municipal waste 5 The glossary has a brief description of the mass balance approach 6 [http://gov.wales/topics/environmentcountryside/epg/waste_recycling/disposal/landfill/allowances/?lang=en](http://gov.wales/topics/environmentcountryside/epg/waste_recycling/disposal/landfill/allowances/?lang=en) 2 Validation – Monitoring Authority The LAS scheme year runs from April 1st to March 31st. Natural Resources Wales use a two stage quarterly process to audit the data after submission into WasteDataFlow(^7) (WDF). Stage one is a desktop audit of all the data submitted by local authorities. Stage two is a validation of WDF using landfill site returns. In 2012 Natural Resources Wales also began quarterly validation of end destination data for the statutory local authority recovery targets. This consists of a desktop audit based on the quantity of material reported as recovered each scheme year. 2.1 Comparison of WDF and Landfill Site Returns Table 1 shows the figures for the amount of landfilled municipal waste validated by Natural Resources Wales in 2014/15. The results show the original and final discrepancy percentages between the two datasets before and after the validation. In 2014/15 there was a 0.9 per cent (or 1,960 tonnes) discrepancy between the figures after validation. This is slightly less than the discrepancy of 1.1 per cent in 2013/14. The overall final discrepancy is well within the ten per cent discrepancy target set by the Welsh Government. This is also a big improvement compared to the original discrepancies in each quarter of the year before validation. Of the 453,221 tonnes validated by Natural Resources Wales, 431,197 tonnes were sent to landfills in Wales and 19,893 tonnes were sent to landfills in England. The remainder has been landfilled after energy from waste treatment outside of the UK. This waste has zero per cent biodegradability. After undertaking 88 checks for the local authorities throughout the scheme year, there are none that remain over a ten per cent discrepancy. The causes of discrepancies between the two datasets include: - landfills report site returns using The List of Waste (or European Waste Catalogues), whilst local authorities report by material type in WDF. These different reporting systems cause issues when comparing and also when distinguishing municipal waste as defined under the LAS Regulations; - private contractors may take non-local authority collected municipal waste and non-municipal waste to landfill in the same vehicles they use to collect local authority collected municipal waste. It is therefore difficult to accurately calculate the amount of local authority collected municipal waste received at the landfill site; or - issues with stockpiling and/or apportioning municipal waste from a landfill site that is used by several local authorities. (^7) Data entry and submission is reported via an online reporting tool (WasteDataFlow) and is split into a series of levels, from 0 (data entry) to 40 (Welsh Government). A local authority submits data to Natural Resources Wales for validation at Level 30. Table 1. Comparison of WDF and landfill site returns data showing amount of municipal waste sent to landfill in Wales in 2014/15 and discrepancies between the two data sets before and after validation \| Quarter \| 2014-15 Site Returns - MSW sent to landfill (tonnes) \| 2014-15 WDF - MSW sent to landfill (tonnes)\* \| 2014-15 % Discrepancy between the two data sets \| \|---------\|-----------------------------------------------------\|---------------------------------------------\|-----------------------------------------------\| \| \| Original \| Final \| Original \| Final \| Original \| Final \| Original \| Final \| \| 1 \| 143,201 \| 142,519 \| 138,836 \| 140,803 \| 3.1% \| 1.2% \| \| 2 \| 138,431 \| 127,735 \| 127,781 \| 126,444 \| 8.3% \| 1.0% \| \| 3 \| 120,577 \| 101,809 \| 101,062 \| 102,743 \| 19.3% \| 0.9% \| \| 4 \| 80,026 \| 83,118 \| 83,275 \| 83,231 \| 3.9% \| 0.1% \| \| Total \| 482,234 \| 455,180 \| 450,954 \| 453,221 \| 8.4% \| 0.9% \| - This is the total amount of Municipal Solid Waste (MSW) reported in WDF as sent to landfill that is checked against site returns. This figure will be slightly less than the total landfill figure, as some landfill waste is not validated due to apportioned rejects and rejects after several treatment processes where landfills cannot be identified or local authority portions are not clear. 3 Local Authority Compliance The overall results from the 2014/15 monitoring year are shown in Table 2 and Figure 1 on the following pages. The annual results show that all local authorities achieved their LAS allowance obligations during 2014/15. A total of 256,162 tonnes of BMW from Wales was sent to landfill compared to the total Wales allowance of 430,000 tonnes. This means that local authorities in Wales collectively landfilled forty per cent (173,838 tonnes) less BMW than the 2014/15 allowance. The results show that fifteen local authorities have considerable headroom to meet their future obligations as they used no more than seventy per cent of their allocated allowances. Blaenau Gwent and Torfaen used less than 20 per cent of their allocated allowance. Bridgend, Carmarthenshire, Ceredigion, Denbighshire, Monmouthshire, Neath Port Talbot, Pembrokeshire and Vale of Glamorgan used less than 50 per cent of their allocated allowance. Caerphilly, Cardiff, Conwy, Merthyr Tydfil and Powys used less than 70 per cent of their allocated allowance. Three authorities used over 90 per cent of their allocated allowance and have the least headroom to meet future obligations. These are Flintshire, Gwynedd and Wrexham. Annex 2 shows a geographical representation of LAS performance for Wales. Reasons for changes in the utilisation of allowances vary between years and by local authorities. Generally, changes can be attributed to: • changes in waste collection service provision; • changes in waste management practices and new/alternative technologies; • public participation levels in recycling schemes; • unforeseen circumstances (e.g. extreme weather). Table 2. LAS Performance for 2014/15 \| Authority \| LAS Allowance (tonnes) 2014/15 \| BMW landfilled (tonnes) \| % of LAS 2014/15 allowance used \| \|----------------------\|---------------------------------\|-------------------------\|---------------------------------\| \| Blaenau Gwent \| 9,726 \| 1,464 \| 15.1% \| \| Bridgend \| 20,976 \| 5,880 \| 28.0% \| \| Caerphilly \| 25,491 \| 14,952 \| 58.7% \| \| Cardiff \| 43,729 \| 29,328 \| 67.1% \| \| Carmarthenshire \| 23,151 \| 7,175 \| 31.0% \| \| Ceredigion \| 10,645 \| 2,919 \| 27.4% \| \| Conwy \| 19,309 \| 12,952 \| 67.1% \| \| Denbighshire \| 12,232 \| 2,925 \| 23.9% \| \| Flintshire \| 22,736 \| 21,604 \| 95.0% \| \| Gwynedd \| 19,731 \| 19,101 \| 96.8% \| \| Isle of Anglesey \| 10,879 \| 8,540 \| 78.5% \| \| Merthyr Tydfil \| 8,402 \| 5,870 \| 69.9% \| \| Monmouthshire \| 12,545 \| 3,393 \| 27.0% \| \| Neath Port Talbot \| 20,849 \| 4,646 \| 22.3% \| \| Newport \| 17,558 \| 14,397 \| 82.0% \| \| Pembrokeshire \| 17,837 \| 6,873 \| 38.5% \| \| Powys \| 21,260 \| 13,646 \| 64.2% \| \| Rhondda Cynon Taf \| 29,847 \| 25,675 \| 86.0% \| \| Swansea \| 33,507 \| 25,442 \| 75.9% \| \| Torfaen \| 12,855 \| 2,073 \| 16.1% \| \| Vale of Glamorgan \| 16,075 \| 7,985 \| 49.7% \| \| Wrexham \| 20,660 \| 19,322 \| 93.5% \| \| Wales \| 430,000 \| 256,162 \| 59.6% \| Natural Resources Wales maintain a register of LAS performance for local authorities since inception of the scheme in 2004. This register can be found at [https://naturalresources.wales/waste/landfill-allowance-scheme/?lang=en](https://naturalresources.wales/waste/landfill-allowance-scheme/?lang=en) Figure 1. Amount of BMW landfilled compared to allowance for local authorities in Wales 2014/15 Annex 1 – Reporting of Local Authorities Reporting deadlines for local authorities and landfill operators (see Table 3) are set out in the LAS Regulations. Both local authorities and landfill operators have to submit municipal waste returns to Natural Resources Wales(^8) within one month of the end of that period. ### Table 3. Statutory LAS reporting deadlines \| Quarter \| Period \| Reporting deadlines \| \|---------\|---------------------------------\|---------------------\| \| 1 \| Data from 1 April - 30 June \| 31 July \| \| 2 \| Data from 1 July - 30 September \| 31 October \| \| 3 \| Data from 1 October - 31 December \| 31 January \| \| 4 \| Data from 1 January - 31 March \| 30 April \| In 2008/09, Natural Resources Wales produced the ‘LAS Guidance on reporting and notices’ which sets out the more detailed timetable for local authorities and landfill operators to meet their obligation to provide timely and accurate data under the LAS Regulations. ### Local Authorities The LAS regulations require local authorities to submit their municipal waste data to Natural Resources Wales for validation within one month of the quarter end. Figure 2 shows the level of compliant data reporting by local authorities in Wales during 2014/15. The level of prompt reporting in Wales in 2014/15 is slightly worse than in the previous year. Fourteen local authorities consistently reported on time throughout the year (a slight decrease by one from 2013/14). The main reasons for local authorities reporting after the deadline included: - technical issues; - staffing and resource issues at local authorities; - delay in local authorities receiving data from contractors; or - extra time taken sourcing data for other reporting requirements. ______________________________________________________________________ (^8) Under the LAS Regulation, the ‘Environment Agency’ is listed as the Monitoring Authority, however, in Wales it was administered by Environment Agency Wales. The Natural Resources Body for Wales (Functions) Order 2013 transferred the Welsh devolved functions of the Environment Agency to the Natural Resources Body for Wales. NRW reports local authority compliance with the reporting deadlines to the Welsh Government. Table 4 on the following page provides more information on local authority reporting in 2014/15. Landfill Operators Landfill operators are required to report the amount of municipal waste received by their sites within one month of the quarter end. Following reporting in WDF, 56 landfill sites in England and Wales were identified as receiving local authority municipal waste originating in Wales in 2014/15 - 14 in Wales and 42 in England. Waste landfilled abroad after incineration was also reported in WDF. The total number of reported landfills has increased from 45 to 56 in England and Wales. Table 4. Compliance with WDF data reporting deadlines by local authorities \| Local Authority \| Apr-Jun 2014 \| Jul-Sep 2014 \| Oct-Dec 2014 \| Jan-Mar 2015 \| \|-----------------------\|--------------\|--------------\|--------------\|--------------\| \| Blaenau Gwent \| On time \| On time \| On time \| On time \| \| Bridgend \| On time \| On time \| On time \| On time \| \| Caerphilly \| On time \| On time \| On time \| On time \| \| Cardiff \| On time \| On time \| On time \| Within 7 days\| \| Carmarthenshire \| Within 7 days\| On time \| On time \| On time \| \| Ceredigion \| Within 7 days\| On time \| On time \| Within 7 days\| \| Conwy \| On time \| On time \| On time \| On time \| \| Denbighshire \| On time \| On time \| Over 7 days \| Over 7 days \| \| Flintshire \| Within 7 days\| On time \| On time \| Over 7 days \| \| Gwynedd \| On time \| On time \| On time \| On time \| \| Isle of Anglesey \| On time \| On time \| On time \| On time \| \| Merthyr Tydfil \| On time \| On time \| On time \| On time \| \| Monmouthshire \| On time \| On time \| On time \| On time \| \| Neath Port Talbot \| On time \| On time \| On time \| On time \| \| Newport \| On time \| On time \| On time \| On time \| \| Pembrokeshire \| On time \| On time \| On time \| On time \| \| Powys \| On time \| On time \| On time \| Within 7 days\| \| Rhonda Cynon Taf \| On time \| On time \| On time \| On time \| \| Swansea \| On time \| Within 7 days\| On time \| Within 7 days\| \| Torfaen \| On time \| On time \| On time \| On time \| \| Vale of Glamorgan \| On time \| Within 7 days\| On time \| Within 7 days\| \| Wrexham \| On time \| On time \| On time \| On time \| N.B. Deadlines may be extended due to weekends/bank holidays, technical issues or if agreed with an authority for extenuating circumstances. Key - on time - within 7 days - over 7 days Annex 2 – Local Authority Compliance Summary Map % of Allowance 2014-15 - Green: 10% - 60% - Orange: 90% - 100% - Light Green: 60% - 75% - Red: Over 100% - Yellow: 75% - 90% Key Quality Information 1. Natural Resources Wales has six weeks to validate the data. Validation involves a procedure of checking that all relevant WasteDataFlow questions have been completed by the local authorities and any discrepancies in calculations between entered inputs and outputs are identified. Any anomalies are then communicated to the individual local authorities and remedial action is taken to resolve them. Post validation, Natural Resources Wales also request local authorities to provide evidence in relation to their waste data, which is an ongoing process throughout the scheme year. 2. There may be some inconsistencies in the measurement of total waste since the waste is weighed when collected and again when it is sent for treatment. In addition, there may also be loss in weight through various treatment processes. Natural Resources Wales validate all local authority returns and require that the difference between the amount collected and the amount sent for treatment must not differ by more than 10 per cent in any quarter, unless a valid explanation can be given. Natural Resources Wales has also placed more emphasis on authorities providing more evidence in relation to their waste statistics since 2012-13. 3. WasteDataFlow is subject to continual improvement and development that can impact on the way that data is entered and introduce new data reports based on new data requirements. Some changes can be complex in nature producing impacts in reporting that may not be fully realised initially. All changes to the system are carefully monitored for any discrepancies between data entry and reporting. In the event that discrepancies arise, the WasteDataFlow system is adjusted and any previously published data is revised or caveated accordingly. 4. The accuracy of the data reported to WasteDataFlow is entirely dependant on the measurement, data management and reporting by local authorities and waste operators. While Natural Resources Wales carry out validation in accordance with the Regulations, the validation of WasteDataFlow and the cross checks with other available waste data is limited to the accuracy of those reporting. Glossary Biodegradable Capable of being degraded by plants and animals. Biodegradable Municipal Waste (BMW) The component of Municipal Solid Waste capable of being degraded by plants and animals. Biodegradable Municipal Waste includes paper and card, food and garden waste, and a proportion of other wastes, such as textiles. Diversion (from landfill) A term referring to avoiding sending waste to landfill where it can be sent to an alternative waste management option that is better for the environment. The waste hierarchy is set out at Article 4 of the revised Waste Framework (Directive 2008/98/EC). This gives top priority to preventing waste in the first place. When waste is created, it gives priority to preparing it for re-use, then recycling, then recovery, and last of all disposal (e.g. landfill). Green house Gas A term given to those gas compounds in the atmosphere that reflect heat back toward earth rather than letting it escape freely into space. Several gases are involved, including carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), ozone, water vapour and some of the chlorofluorocarbons. Incineration The controlled thermal treatment of waste by burning, either to reduce its volume or toxicity. Energy recovery from incineration can be made by utilising the calorific value of the waste to produce heat and/or power. Landfill Allowances Scheme (LAS) The purpose of the Landfill Allowances Scheme is to ensure diversion of biodegradable municipal waste (BMW) from landfill. Welsh Government allocate statutory limits on the amount of BMW waste that local authorities in Wales can landfill. Welsh Government can apply financial penalties to Welsh local authorities for exceeding allowances and failure to comply with reporting requirements. As monitoring authority for the scheme, Natural Resources Wales validates waste returns submitted from Welsh local authorities and determines the amount of BMW sent to landfill by each local authority. Landfill sites Any areas of land in which waste is deposited. Landfill sites are often located in disused mines or quarries. In areas where they are limited or no ready-made voids exist, the practice of landraising is sometimes carried out, where waste is deposited above ground and the landscape is contoured. List of Waste (European Waste Catalogues) Serves as a common encoding of waste characteristics in a broad variety of purposes like classification of hazardous wastes. Assignment of waste codes has a major impact on the transport of waste, installation permits (which are usually granted for the processing of specific waste codes), decisions about recyclability of the waste or as a basis for waste statistics. Local authority municipal waste Includes household and non-household waste that is collected and disposed of by local authorities. It includes regular household collections, specific recycling collections, special collections of bulky items, waste received at civic amenity sites and waste collected from non-household sources. Local authority recovery targets (LART) The Local Authority Recovery Targets were set under the Waste (Wales) Measure 2010 by Welsh Government and are intended to promote higher levels of recycling and to realise associated wider sustainability benefits. Mass Balance Approach The mass balance formula is applied quarterly to calculate the biodegradable content of landfilled local authority municipal waste for each local authority. Welsh Government have deemed Welsh local authority municipal waste to be 61% biodegradable. The formula uses the data reported to WasteDataFlow to adjust this percentage based on the biodegradability of waste diverted for recycling, reuse and composting. This adjusted percentage is used to calculate the biodegradable content of landfilled waste. WasteDataFlow (WDF) Since 2004-05, waste returns for the amount and type of local authority waste collected and how it is disposed of are collected through an online reporting system called WasteDataFlow (www.wastedataflow.org). In Wales this is managed by Natural Resources Wales.	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/3535-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 16, "total-input-tokens": 35528, "total-output-tokens": 6848, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 90, 1 ], [ 90, 90, 2 ], [ 90, 2060, 3 ], [ 2060, 2868, 4 ], [ 2868, 5528, 5 ], [ 5528, 8340, 6 ], [ 8340, 11159, 7 ], [ 11159, 14700, 8 ], [ 14700, 14796, 9 ], [ 14796, 16960, 10 ], [ 16960, 17659, 11 ], [ 17659, 19986, 12 ], [ 19986, 20161, 13 ], [ 20161, 22338, 14 ], [ 22338, 24510, 15 ], [ 24510, 26457, 16 ] ] }
63ea3257e2ea0d5a774e4bb474d5e8de74950692	Report on the Landfill Allowances Scheme (LAS) Wales 2016/17 Final results October 2017 Executive Summary This report covers the twelfth full year, 1st April 2016 to 31st March 2017, of the Landfill Allowances Scheme (LAS) in Wales. The results presented in this report are final. The purpose of the scheme is to ensure diversion of biodegradable municipal waste (BMW) from landfill. Welsh Government sets limits on the amount of BMW waste that local authorities in Wales can landfill. Compliance headlines Welsh local authorities sent 90,827 tonnes of BMW to landfill in 2016/17 compared to an overall Wales allowance of 390,000 tonnes. This was seventy-seven percent less (299,173 tonnes) than the allowance. All twenty-two local authorities achieved their individual allocated allowance. Wales has reduced the amount of BMW sent to landfill by eighty nine per cent (760,662 tonnes) since the first full year of the scheme in 2005/06. Reducing the amount of BMW waste going to landfill helps to cut greenhouse gas emissions, preventing the production and release of methane into the air from landfill sites. This is important, as methane is twenty five times more powerful than carbon dioxide as a greenhouse gas. Looking at individual local authority performance for 2016/17, Blaenau Gwent, Cardiff, Denbighshire, Flintshire, Merthyr Tydfil, Monmouthshire, Rhondda Cynon Taf, Torfaen, Vale of Glamorgan and Wrexham used less than ten per cent of their allowances, while Gwynedd and Swansea used over seventy per cent of their allowance. As a whole, local authorities have continued to make good progress in diverting BMW from landfill. However, meeting the future targets up to 2020 will be particularly challenging for those local authorities that were close to exceeding their 2016/17 individual allowances. ______________________________________________________________________ 1 The Landfill Allowance Scheme refers only to local authority collected municipal waste 2 Out of a total of 1,589,795 tonnes of municipal solid waste arising by Welsh local authorities 3 851,489 tonnes of BMW was sent to landfill in 2005/06 Contents 1 Background 4 2 Validation - Monitoring Authority 5 3 Local Authority Compliance 6 Annex 1 - Local authority compliance against targets 8 Annex 2 - Reporting of local authorities 10 Annex 3 - Local authority Compliance Summary Map 13 Key Quality Information 14 Glossary 15 Figures and Tables Figure 1. Amount of BMW landfilled compared to allowance for local authorities in Wales 2016/17 9 Figure 2. Proportion of local authorities reporting promptly in 2016/17 compared to 2015/16 11 Table 1. Comparison of WDF and landfill site returns data showing amount of municipal waste sent to landfill in Wales in 2016/17 and discrepancies between the two data sets before and after validation 6 Table 2. LAS Performance for 2016/17 8 Table 3. Statutory LAS reporting deadlines 10 Table 4. Compliance with WDF data reporting deadlines by local authorities 12 1 Background The Landfill Allowances Scheme (LAS) Wales(^4) was established through the Landfill Allowances Scheme (Wales) Regulations 2004. The purpose of the scheme is to ensure diversion of biodegradable municipal waste (BMW) from landfill. Reducing the amount of BMW waste going to landfill helps to cut greenhouse gas emissions, preventing the production and release of methane into the air from landfill sites. Methane is twenty five times more powerful than carbon dioxide as a greenhouse gas. Welsh Government sets limits on the amount of BMW waste that local authorities in Wales can landfill. Natural Resources Wales is the Monitoring Authority for the scheme and has the duty to report performance against individual local authorities’ annual allowance allocations and the collective total for Wales. Natural Resources Wales is responsible for reconciling the allowances available to each local authority with the amount of BMW that they have sent to landfill. Natural Resources Wales calculate the amount of BMW sent to landfill using a mass balance approach(^5). The LAS Regulations also state that the amount of biodegradable waste local authorities collect should be sixty one per cent of the total collected municipal waste. The Welsh Government has since reviewed the biodegradability of municipal waste and concluded that this figure is still appropriate. Within five months of the end of the scheme year, Natural Resources Wales must determine the amount of BMW sent to landfill by each local authority. Natural Resources Wales provides the Welsh Government with the annual reconciled data on 1(^{st}) September each year. The Welsh Local Government Association (WLGA) and local authorities are consulted on the data and the final report is published on the Natural Resources Wales website, which acts as the Landfill Allowances register. Any local authority that exceeds its allowance allocation is reported to the Welsh Government and is liable to financial penalties. The Welsh Government must establish and maintain a penalties register containing details of any such liabilities. More information relating to the allocation of allowances can be found in the Welsh Government document entitled ‘The Landfill Allowance Scheme: Allocation of Allowances 2009-2020’(^6). ______________________________________________________________________ (^4) The Landfill Allowances Scheme refers only to local authority collected municipal waste (^5) The glossary has a brief description of the mass balance approach (^6) [http://gov.wales/topics/environmentcountryside/epg/waste_recycling/disposal/landfill/allowances/?lang=en](http://gov.wales/topics/environmentcountryside/epg/waste_recycling/disposal/landfill/allowances/?lang=en) 2 Validation – Monitoring Authority The LAS scheme year runs from April 1st to March 31st. Natural Resources Wales use a two stage quarterly process to audit the data after submission into WasteDataFlow(^7) (WDF). Stage one is a desktop audit of all the data submitted by local authorities. Stage two is a validation of WDF using landfill site returns. In 2012 Natural Resources Wales also began quarterly validation of end destination data for the statutory local authority recovery targets. This consists of a desktop audit based on the quantity of material reported as recovered each scheme year. 2.1 Comparison of WDF and Landfill Site Returns Table 1 shows the figures for the amount of landfilled municipal waste validated by Natural Resources Wales in 2016/17. The results show the original and final discrepancy percentages between the two datasets before and after the validation. In 2016/17 there was a 0.9 per cent (or 1,384 tonnes) discrepancy between the figures after validation. This is less than the discrepancy of 1.6 per cent in 2015/16. The overall final discrepancy is well within the ten per cent discrepancy target set by the Welsh Government. This is also a big improvement compared to the original discrepancies in each quarter of the year before validation. Of the 148,477 tonnes validated by Natural Resources Wales, 137,012 tonnes were sent to landfills in Wales and 9,920 tonnes were sent to landfills in England. The remainder has been landfilled after energy from waste treatment outside of the UK. This waste has zero per cent biodegradability. After undertaking 88 checks for the local authorities throughout the scheme year, there are four that remain over a ten per cent or 100 tonne discrepancy. The causes of discrepancies between the two datasets include: - landfills report site returns using The List of Waste (or European Waste Catalogues), whilst local authorities report by material type in WDF. These different reporting systems cause issues when comparing and also when distinguishing municipal waste as defined under the LAS Regulations; - private contractors may take non-local authority collected municipal waste and non-municipal waste to landfill in the same vehicles they use to collect local authority collected municipal waste. It is therefore difficult to accurately calculate the amount of local authority collected municipal waste received at the landfill site; or - issues with stockpiling and/or apportioning municipal waste from a landfill site that is used by several local authorities. (^7) Data entry and submission is reported via an online reporting tool (WasteDataFlow) and is split into a series of levels, from 0 (data entry) to 40 (Welsh Government). A local authority submits data to Natural Resources Wales for validation at Level 30. Table 1. Comparison of WDF and landfill site returns data showing amount of municipal waste sent to landfill in Wales in 2016/17 and discrepancies between the two data sets before and after validation \| Quarter \| 2016-17 Site Returns - MSW sent to landfill (tonnes) \| 2016-17 WDF - MSW sent to landfill (tonnes)\* \| 2016-17 % Discrepancy between the two data sets \| \|---------\|---------------------------------------------------\|---------------------------------------------\|-----------------------------------------------\| \| \| Original \| Final \| Original \| Final \| Original \| Final \| \| 1 \| 36,948 \| 39,844 \| 39,751 \| 40,316 \| 7.1% \| 1.2% \| \| 2 \| 35,436 \| 38,900 \| 38,995 \| 39,311 \| 9.1% \| 1.0% \| \| 3 \| 24,959 \| 33,327 \| 33,439 \| 33,218 \| 25.4% \| 0.3% \| \| 4 \| 31,579 \| 35,239 \| 34,061 \| 35,632 \| 7.3% \| 1.1% \| \| Total \| 128,922 \| 147,311\| 146,246 \| 148,477\| 11.8% \| 0.9% \| - This is the total amount of Municipal Solid Waste (MSW) reported in WDF as sent to landfill that is checked against site returns. This figure will be slightly less than the total landfill figure, as some landfill waste is not validated due to apportioned rejects and rejects after several treatment processes where landfills cannot be identified or local authority portions are not clear. 3 Local Authority Compliance The overall results from the 2016/17 monitoring year are shown in Annex 1 on the following pages. The annual results show that all local authorities achieved their LAS allowance obligations during 2016/17. A total of 90,827 tonnes of BMW from Wales was sent to landfill compared to the total Wales allowance of 390,000 tonnes. This means that local authorities in Wales collectively landfilled seventy-seven per cent (299,173 tonnes) less BMW than the 2016/17 allowance. The results show that twenty local authorities have considerable headroom to meet their future obligations as they used no more than seventy per cent of their allocated allowances. Blaenau Gwent, Cardiff, Denbighshire, Flintshire, Merthyr Tydfil, Monmouthshire, Rhondda Cynon Taf, Torfaen, Vale of Glamorgan and Wrexham all used less than 10 per cent of their allocated allowance. Bridgend, Caerphilly, Carmarthenshire, Ceredigion, Isle of Anglesey, Neath Port Talbot, Newport, Pembrokeshire and Powys used less than 50 per cent of their allocated allowance. Conwy used less than 70 per cent of their allocated allowance. Gwynedd and Swansea used over seventy per cent of their allowance. Annex 3 shows a geographical representation of LAS performance for Wales. Reasons for changes in the utilisation of allowances vary between years and by local authorities. Generally, changes can be attributed to: - changes in waste collection service provision; - changes in waste management practices and new/alternative technologies – diversion of residual waste to incineration with energy recovery has had a significant affect on local authority performance for LAS in recent years; - public participation levels in recycling schemes; - unforeseen circumstances (e.g. extreme weather). Annex 1 – Local authority compliance against targets Table 2. LAS Performance for 2016/17 \| Authority \| LAS Allowance (tonnes) 2016/17 \| BMW landfilled (tonnes) \| % of LAS 2016/17 allowance used \| \|--------------------\|---------------------------------\|-------------------------\|---------------------------------\| \| Blaenau Gwent \| 8,821 \| 391 \| 4.4% \| \| Bridgend \| 19,025 \| 5,579 \| 29.3% \| \| Caerphilly \| 23,119 \| 3,115 \| 13.5% \| \| Cardiff \| 39,660 \| 1,356 \| 3.4% \| \| Carmarthenshire \| 20,997 \| 2,388 \| 11.4% \| \| Ceredigion \| 9,655 \| 4,326 \| 44.8% \| \| Conwy \| 17,513 \| 10,777 \| 61.5% \| \| Denbighshire \| 11,094 \| 844 \| 7.6% \| \| Flintshire \| 20,621 \| 99 \| 0.5% \| \| Gwynedd \| 17,896 \| 14,959 \| 83.6% \| \| Isle of Anglesey \| 9,867 \| 1,151 \| 11.7% \| \| Merthyr Tydfil \| 7,621 \| 612 \| 8.0% \| \| Monmouthshire \| 11,378 \| 146 \| 1.3% \| \| Neath Port Talbot \| 18,910 \| 4,832 \| 25.6% \| \| Newport \| 15,925 \| 3,578 \| 22.5% \| \| Pembrokeshire \| 16,178 \| 5,057 \| 31.3% \| \| Powys \| 19,282 \| 7,562 \| 39.2% \| \| Rhondda Cynon Taf \| 27,071 \| 285 \| 1.1% \| \| Swansea \| 30,391 \| 21,461 \| 70.6% \| \| Torfaen \| 11,659 \| 745 \| 6.4% \| \| Vale of Glamorgan \| 14,579 \| 303 \| 2.1% \| \| Wrexham \| 18,738 \| 1,262 \| 6.7% \| \| Wales \| 390,000 \| 90,827 \| 23.3% \| Natural Resources Wales maintain a register of LAS performance for local authorities since inception of the scheme in 2004. This register can be found at [https://naturalresources.wales/guidance-and-advice/environmental-topics/waste-management/landfill-allowance-scheme/?lang=en](https://naturalresources.wales/guidance-and-advice/environmental-topics/waste-management/landfill-allowance-scheme/?lang=en) Figure 1. Amount of BMW landfilled compared to allowance for local authorities in Wales 2016/17 Annex 2 – Reporting of Local Authorities Reporting deadlines for local authorities and landfill operators (see Table 3) are set out in the LAS Regulations. Both local authorities and landfill operators have to submit municipal waste returns to Natural Resources Wales within one month of the end of that period. Table 3. Statutory LAS reporting deadlines \| Quarter \| Period \| Reporting deadlines \| \|---------\|---------------------------------\|---------------------\| \| 1 \| Data from 1 April - 30 June \| 31 July \| \| 2 \| Data from 1 July - 30 September \| 31 October \| \| 3 \| Data from 1 October - 31 December \| 31 January \| \| 4 \| Data from 1 January - 31 March \| 30 April \| In 2008/09, Natural Resources Wales produced the ‘LAS Guidance on reporting and notices’ which sets out the more detailed timetable for local authorities and landfill operators to meet their obligation to provide timely and accurate data under the LAS Regulations. Local Authorities The LAS regulations require local authorities to submit their municipal waste data to Natural Resources Wales for validation within one month of the quarter end. Figure 2 shows the level of compliant data reporting by local authorities in Wales during 2016/17. The level of prompt reporting in Wales in 2016/17 is slightly worse than in the previous year. Fifteen local authorities consistently reported on time throughout the year (a decrease of one from 2015/16). The main reasons for local authorities reporting after the deadline included: - technical issues; - staffing and resource issues at local authorities; - delay in local authorities receiving data from contractors; or - extra time taken sourcing data for other reporting requirements. ______________________________________________________________________ 8 Under the LAS Regulation, the ‘Environment Agency’ is listed as the Monitoring Authority, however, in Wales it was administered by Environment Agency Wales. The Natural Resources Body for Wales (Functions) Order 2013 transferred the Welsh devolved functions of the Environment Agency to the Natural Resources Body for Wales. NRW reports local authority compliance with the reporting deadlines to the Welsh Government. Table 4 on the following page provides more information on local authority reporting in 2016/17. Landfill Operators Landfill operators are required to report the amount of municipal waste received by their sites within one month of the quarter end. Following reporting in WDF, 46 landfill sites in England and Wales were identified as receiving local authority municipal waste originating in Wales in 2016/17 – 13 in Wales and 33 in England. Waste landfilled abroad after incineration was also reported in WDF. The total number of reported landfills has decreased from 48 to 46 in England and Wales. Table 4. Compliance with WDF data reporting deadlines by local authorities \| Local Authority \| Apr-Jun 2016 \| Jul-Sep 2016 \| Oct-Dec 2016 \| Jan-Mar 2017 \| \|-----------------------\|--------------\|--------------\|--------------\|--------------\| \| Blaenau Gwent \| On time \| On time \| On time \| On time \| \| Bridgend \| On time \| On time \| On time \| On time \| \| Caerphilly \| On time \| On time \| On time \| On time \| \| Cardiff \| Within 7 days\| On time \| On time \| Over 7 days \| \| Carmarthenshire \| On time \| On time \| On time \| On time \| \| Ceredigion \| On time \| On time \| On time \| On time \| \| Conwy \| On time \| On time \| On time \| On time \| \| Denbighshire \| Within 7 days\| On time \| Within 7 days\| Within 7 days\| \| Flintshire \| On time \| On time \| On time \| On time \| \| Gwynedd \| Within 7 days\| On time \| On time \| Within 7 days\| \| Isle of Anglesey \| On time \| On time \| On time \| On time \| \| Merthyr Tydfil \| On time \| On time \| On time \| On time \| \| Monmouthshire \| On time \| On time \| On time \| On time \| \| Neath Port Talbot \| On time \| On time \| On time \| Within 7 days\| \| Newport \| On time \| On time \| On time \| On time \| \| Pembrokeshire \| On time \| On time \| Within 7 days\| On time \| \| Powys \| On time \| On time \| Within 7 days\| On time \| \| Rhonda Cynon Taf \| On time \| On time \| On time \| On time \| \| Swansea \| On time \| On time \| On time \| On time \| \| Torfaen \| On time \| On time \| On time \| On time \| \| Vale of Glamorgan \| On time \| On time \| On time \| Within 7 days\| \| Wrexham \| On time \| On time \| On time \| On time \| N.B. Deadlines may be extended due to weekends/bank holidays, technical issues or if agreed with an authority for extenuating circumstances. An extension of 1 week was also provided to all authorities for quarter 3 (Oct-Dec) returns to allow for the service question data to be updated. Key - on time - within 7 days - over 7 days Annex 3 – Local Authority Compliance Summary Map % of Allowance 2016/17 - 0% - 60% - 60% - 75% - 75% - 90% - 90% - 100% - > 100% Key Quality Information 1. Natural Resources Wales has six weeks to validate the data. Validation involves a procedure of checking that all relevant WasteDataFlow questions have been completed by the local authorities and any discrepancies in calculations between entered inputs and outputs are identified. Any anomalies are then communicated to the individual local authorities and remedial action is taken to resolve them. Post validation, Natural Resources Wales also request local authorities to provide evidence in relation to their waste data, which is an ongoing process throughout the scheme year. 2. There may be some inconsistencies in the measurement of total waste since the waste is weighed when collected and again when it is sent for treatment. In addition, there may also be loss in weight through various treatment processes. Natural Resources Wales validate all local authority returns and require that the difference between the amount collected and the amount sent for treatment must not differ by more than 10 per cent or 100 tonnes in any quarter (whichever is the greatest figure), unless a valid explanation can be given. Natural Resources Wales has also placed more emphasis on authorities providing more evidence in relation to their waste statistics since 2012-13. 3. WasteDataFlow is subject to continual improvement and development that can impact on the way that data is entered and introduce new data reports based on new data requirements. Some changes can be complex in nature producing impacts in reporting that may not be fully realised initially. All changes to the system are carefully monitored for any discrepancies between data entry and reporting. In the event that discrepancies arise, the WasteDataFlow system is adjusted and any previously published data is revised or caveated accordingly. 4. The accuracy of the data reported to WasteDataFlow is entirely dependant on the measurement, data management and reporting by local authorities and waste operators. While Natural Resources Wales carry out validation in accordance with the Regulations, the validation of WasteDataFlow and the cross checks with other available waste data is limited to the accuracy of those reporting. Glossary Biodegradable Capable of being degraded by plants and animals. Biodegradable Municipal Waste (BMW) The component of Municipal Solid Waste capable of being degraded by plants and animals. Biodegradable Municipal Waste includes paper and card, food and garden waste, and a proportion of other wastes, such as textiles. Diversion (from landfill) A term referring to avoiding sending waste to landfill where it can be sent to an alternative waste management option that is better for the environment. The waste hierarchy is set out at Article 4 of the revised Waste Framework (Directive 2008/98/EC). This gives top priority to preventing waste in the first place. When waste is created, it gives priority to preparing it for re-use, then recycling, then recovery, and last of all disposal (e.g. landfill). Green house Gas A term given to those gas compounds in the atmosphere that reflect heat back toward earth rather than letting it escape freely into space. Several gases are involved, including carbon dioxide (CO$\_2$), methane (CH$\_4$), nitrous oxide (N$\_2$O), ozone (O$\_3$), water vapour (H$\_2$O) and some of the chlorofluorocarbons (CFCs). Incineration The controlled thermal treatment of waste by burning, either to reduce its volume or toxicity. Energy recovery from incineration can be made by utilising the calorific value of the waste to produce heat and/or power. Landfill Allowances Scheme (LAS) The purpose of the Landfill Allowances Scheme is to ensure diversion of biodegradable municipal waste (BMW) from landfill. Welsh Government allocate statutory limits on the amount of BMW waste that local authorities in Wales can landfill. Welsh Government can apply financial penalties to Welsh local authorities for exceeding allowances and failure to comply with reporting requirements. As monitoring authority for the scheme, Natural Resources Wales validates waste data submitted from Welsh local authorities and determines the amount of BMW sent to landfill by each local authority. Landfill sites Any areas of land in which waste is deposited. Landfill sites are often located in disused mines or quarries. In areas where they are limited or no ready-made voids exist, the practice of landraising is sometimes carried out, where waste is deposited above ground and the landscape is contoured. List of Waste (European Waste Catalogues) Serves as a common encoding of waste characteristics in a broad variety of purposes like classification of hazardous wastes. Assignment of waste codes has a major impact on the transport of waste, installation permits (which are usually granted for the processing of specific waste codes), decisions about recyclability of the waste or as a basis for waste statistics. Local authority municipal waste Includes household and non-household waste that is collected and disposed of by local authorities. It includes regular household collections, specific recycling collections, special collections of bulky items, waste received at civic amenity sites and waste collected from non-household sources. Local Authority Recovery Targets (LART) The Local Authority Recovery Targets were set under the Waste (Wales) Measure 2010 by Welsh Government and are intended to promote higher levels of recycling and to realise associated wider sustainability benefits. Mass Balance Approach The mass balance formula is applied quarterly to calculate the biodegradable content of landfilled local authority municipal waste for each local authority. Welsh Government have deemed Welsh local authority municipal waste to be 61% biodegradable. The formula uses the data reported to WasteDataFlow to adjust this percentage based on the biodegradability of waste diverted for recycling, reuse and composting. This adjusted percentage is used to calculate the biodegradable content of landfilled waste. WasteDataFlow (WDF) Since 2004-05, waste data for the amount and type of local authority waste collected and how it is disposed of are collected through an online reporting system called WasteDataFlow (www.wastedataflow.org). 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032f0be8fa349b0cd5af79f886b88477aedbde25	Freedom of Information Act 2000 Request The expenses which cover Keir Starmer’s duration as the DPP Request Please could you supply me with copies of all expenses claims lodged and paid for Keir Starmer, which cover the entire duration of his work for you as DPP? Response In line with the Crown Prosecution Service’s (CPS) retention policy, financial records are held pertaining to the last full six financial years, including the current financial year, only. Most records pertaining to your request are therefore no longer held as Keir Starmer was the Director of Public Prosecutions from 2008 to 2013. However, data pertaining to your request is held from April 2013 onwards and a summary of the same is attached below: \| Claim \| Invoice Date \| Expenditure category \| \|---------\|--------------\|-----------------------------------------------------------\| \| £47.00 \| 24-Apr-13 \| Public Transport/Taxis \| \| £76.45 \| 24-Apr-13 \| Overnight Stay – CPS Business \| \| £46.00 \| 17-May-13 \| Public Transport/Taxis \| \| £23.50 \| 30-May-13 \| Public Transport/Taxis \| \| £912.21 \| 05-Jun-13 \| Overseas HOPAC Conference (Accommodation / food) \| \| £17.00 \| 05-Jun-13 \| Public Transport/Taxis \| \| £11.00 \| 19-Jun-13 \| Public Transport/Taxis \| \| £73.00 \| 11-Jul-13 \| Public Transport/Taxis \| \| £22.00 \| 12-Jul-13 \| Public Transport/Taxis \| \| £40.00 \| 24-Jul-13 \| Public Transport/Taxis \| \| £10.00 \| 29-Jul-13 \| Public Transport/Taxis \| \| £17.00 \| 23-Aug-13 \| Public Transport/Taxis \| \| £491.66 \| 25-Oct-13 \| Overseas Visit \|	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/0508-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 2, "total-input-tokens": 3750, "total-output-tokens": 597, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 2036, 1 ], [ 2036, 2036, 2 ] ] }
b6e67a85dfb6951be34cee599016916bab58198b	Section 17 Notice under the Freedom of Information Act 2000 WITHHOLDING INFORMATION Section 22(1) states that information intended for future publication is exempt information if: (a) the information is held by the public authority with a view to its publication, by the authority or any other person, at some future date (whether determined or not), (b) the information was already held with a view to such publication at the time when the request for information was made, and (c) it is reasonable in all the circumstances that the information should be withheld from disclosure until the date of publication Some of the data (2019/20) you have requested will be published later in the year on the Crown Prosecution Service Annual Report (CPS) website. Section 22 is a qualified exemption which means that the decision to disclose the requested material is subject to a public interest test. The CPS acknowledges that there is a public interest in demonstrating the transparency of the prosecution process and the performance of the organisation. The timetable for publication allows for the review and validation of the figures to be included in the report and to release this information ahead of schedule would compromise the accuracy and completeness of the data and supporting information. On balance, I do not consider that it would be in the public interest to disclose the information requested ahead of schedule. Section 31(1)(c)– Information which is not exempt information by virtue of section 30 is exempt information if its disclosure under this Act would, or would be likely to, prejudice the administration of justice Section 31 is a qualified exemption which means that the decision to disclose the requested material is subject to a public interest test. I have set out the public interest factors taken into account in this case below: Public interest factors in favour of disclosure - There is a strong public interest in the transparency and accountability of the spending of public money. - Transparency increases public confidence in the CPS and the wider Criminal Justice System. Public interest factor against disclosure - The disclosure of any information relating to court proceedings against the CPS may prejudice the effectiveness of the CPS’ ability to have a fair trial undermining the administration of justice. More widely, such disclosure may prejudice the administration of justice and should be exempt under section 31(1)(c). On balance, I consider the public interest overwhelmingly favours maintaining the exemption. Section 32(1)(a)(b) & (c) – Information held only by virtue of being contained in any document filed with, or otherwise placed in the custody of, a court for the purposes of proceedings Some information held, is exempt from disclosure under section 32(1)(a)(b) and/or (c). This is an absolute exemption and does not require a public interest test. Section 40(2) – Personal data relating to third parties The information you have requested contains personal data. Personal data can only be released if to do so would not contravene any of the data protection principles as outlined in Data Protection Act 2018 and set out by Article 5 of the General Data Protection Regulation (GDPR) Personal data shall be processed lawfully, fairly and in a transparent manner We believe releasing the requested information into the public domain would be unfair to the individuals concerned; these individuals have a clear and strong expectation that their personal data will be held in confidence and not disclosed to the public under the FOI Act. Section 41 – Information provided in confidence The information requested has been provided in confidence. We are satisfied that disclosure of this information requested would constitute an actionable breach of confidence. A duty of confidence should not be overridden lightly. Public authorities are required to weigh up the public interest in disclosure against both the wider public interest in preserving the principle of confidentiality and the impact that disclosure would have on the interests of the confider. We consider that whilst there is a strong public interest in openness and transparency there is a greater public interest against disclosure for the following reasons: - There is a profound public interest in maintaining the principle of confidentiality. Disclosure of confidential information would undermine the principle and discourage other agencies from confiding in public authorities if they did not have a degree of certainty that such confidences would be respected. - There is a public interest in maintaining trust and preserving a free flow of information to a public authority where this is necessary for the public authority to perform its statutory functions. - Disclosure of an individual’s private information is an infringement of their privacy and there is a public interest in protecting the privacy of individuals.	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/0509-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 3, "total-input-tokens": 4891, "total-output-tokens": 1089, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 1644, 1 ], [ 1644, 4153, 2 ], [ 4153, 4991, 3 ] ] }
856b81e8d784aaa58a2200ab2f5dd0ba45adbda1	Freedom of Information Act 2000 Request Details into the compensation paid out by the CPS over the last few years - Please disclose the total amount of compensation paid out by the CPS in 2018, 2019 and to date in 2020 and please provide the number of payouts made. \| Year \| Number of Cases \| Value of payouts £000 \| \|---------\|-----------------\|-----------------------\| \| 2017/18 \| 48 \| 243 \| \| 2018/19 \| 60 \| 1,340 \| Please note 2019/20 data will be published in the Crown Prosecution Service (CPS) annual report and accounts which are currently being prepared for audit and will be published later in the year. We are unable to provide this information as it is exempt under Section 22 ‘Information intended for future publication’ of FOIA. Please refer to the attached section 17 refusal notice which explains this exemption in further detail. - Please disclose the total amount of compensation paid out by the CPS to date in 2017 and please provide the number of payouts made. In the 2016/2017 financial year, the total amount of compensation paid out by the CPS was £1,631,000 and this was for 49 payouts. - For 2019 and 2020, please disclose why each payout was made and disclose the amounts of each payout. No further details of each payment are provided as the detailed facts pertaining to these matters and settlement figures are exempt under Section 31 ‘Law Enforcement’, Section 32 ‘Court Records’, Section 40 ‘Personal Information’ and Section 41 ‘Information provided in confidence’. Please refer to the attached Section 17 refusal notice which explains these exemptions in further detail. Information Management Unit 020 3357 0788 [email protected]	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/0510-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 1, "total-input-tokens": 1887, "total-output-tokens": 484, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 1732, 1 ] ] }
290df83833a144fef162bb3c9633c013c722ef29	Freedom of Information Act 2000 Request Costs of the Manchester bombing prosecution Request Could you please tell me the costs in relation to the Manchester Bomb, in regards to Hashem Abedi? Response The prosecution costs incurred as of 29 April 2020 in relation to Hashem Abedi are approximately £284,500; please note that this does not include Crown Prosecution Service (CPS) staff costs. Further costs are anticipated once sentencing has taken place and the case has been finalised. Under section 16 of the FOI Act we have an obligation to advise what, if any, information may assist you with your request; you may find it helpful to know that further information on this case is available online at the CPS website: Please see link below: https://www.cps.gov.uk/cps/news/brother-manchester-arena-bomber-guilty-murder Information Management Unit 020 3357 0788 [email protected]	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/0511-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 1, "total-input-tokens": 1546, "total-output-tokens": 264, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 885, 1 ] ] }
dd3c4184de0901e36470c08f475813aad0b49385	Freedom of Information Act 2000 Request Cost of home working equipment during the coronavirus lockdown Request and Response 1. Please tell me how much was spent on paying for the provision of new items of office furniture and equipment to facilitate staff to work from home during the coronavirus lockdown. As of 24 April 2020 the Crown Prosecution Service (CPS) has spent a total of £139,853.00 (this includes VAT). 2. Please state how much was spent on paying for the transportation of office furniture and equipment, which was not new but had already been in use, to your staff members’ homes during the coronavirus lockdown. The CPS does not hold any information falling within the scope of your request. 3. Please provide me with the cost and the make and model of the single most expensive item of equipment or furniture that was bought for a staff member to facilitate them working from home during the coronavirus lockdown. The single most expensive item of equipment was for £142.38 including VAT. This is a Samsung monitor and screen. Information Access Team 020 3357 0788 [email protected]	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/0512-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 1, "total-input-tokens": 1610, "total-output-tokens": 296, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 1106, 1 ] ] }
3b578565bb14d5ff66f9bcb629d76ae11982967c	Freedom of Information Act 2000 Request Any guidance provided by the CPS to Welsh Police Forces in regards to the offence section 8 of The Health Protection Regulations 2020 Request Please provide details of any guidance provided by the Crown Prosecution Service to police forces in Wales about what may, or may not, constitute an offence under section 8 of the The Health Protection (Coronavirus Restrictions) (Wales) Regulations 2020 (Restrictions on movement and gatherings during the emergency period). Response The Crown Prosecution Service (CPS) does not hold any information falling within the scope of your request. Under section 16 of the FOI Act we have an obligation to advise what, if any, information may assist you with your request; you may find it helpful to refer to the CPS guidance below, which only relates to England Regulations. https://www.cps.gov.uk/legal-guidance/coronavirus-health-protection-coronavirus-restrictions-england-regulations-2020 Information Management Unit 020 3357 0788 [email protected]	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/0514-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 1, "total-input-tokens": 1600, "total-output-tokens": 281, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 1033, 1 ] ] }
528a65117a95917da9d6fce6fe1b1f43db651742	Ref: 9109 Section 17 Notice under the Freedom of Information Act 2000 WITHHOLDING INFORMATION Section 21 states Information accessible to applicant by other means. (1) Information which is reasonably accessible to the applicant otherwise than under section 21 is exempt information. (2) For the purposes of subsection (1)— (a) Information may be reasonably accessible to the applicant even though it is accessible only on payment, and (b) Information is to be taken to be reasonably accessible to the applicant if it is information which the public authority or any other person is obliged by or under any enactment to communicate (otherwise than by making the information available for inspection) to members of the public on request, whether free of charge or on payment. (3) For the purposes of subsection (1), information which is held by a public authority and does not fall within subsection (2) (b) is not to be regarded as reasonably accessible to the applicant merely because the information is available from the public authority itself on request, unless the information is made available in accordance with the authority’s publication scheme and any payment required is specified in, or determined in accordance with, the scheme. Section 21 is an absolute exemption which means there is no requirement to carry out a public interest test if the requested information is exempt. Section 22(1) states that information intended for future publication is exempt information if: (a) the information is held by the public authority with a view to its publication, by the authority or any other person, at some future date (whether determined or not), (b) the information was already held with a view to such publication at the time when the request for information was made, and (c) it is reasonable in all the circumstances that the information should be withheld from disclosure until the date of publication. Section 22 is a qualified exemption which means that the decision to disclose the requested material is subject to a public interest test. The CPS acknowledges that there is a public interest in demonstrating the transparency of the prosecution process and the performance of the organisation. The data you have requested will be published on the CPS website; we are not obligated to provide you with this prior to publication. The timetable for publication allows for the review and validation of the figures/information to be included in the report and to release this information ahead of schedule would compromise the accuracy and completeness of the data and supporting information. On balance, I do not consider that it would be in the public interest to disclose the information requested ahead of schedule.	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/0515-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 2, "total-input-tokens": 3109, "total-output-tokens": 617, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 1931, 1 ], [ 1931, 2749, 2 ] ] }
fcf2b718fa9835acf5039ec00bf85425c42bb69a	Freedom of Information Act 2000 Request Information on data breaches by the CPS Request I write with a request for information under the FOIA as follows: 1. Please disclose the number of (suspected) data breaches by the CPS in 2019 and to date in 2020; 2. A description of each breach, the outcome, including any action taken, including disciplinary action, how many staff were affected/potentially affected by the breach. Response The Crown Prosecution Service (CPS) records data breaches by financial year. Data pertaining to financial year 2018/19 is published on the CPS Annual Report and Accounts and is therefore withheld from disclosure under section 21 of the FOI Act – Information accessible by other means. Data pertaining to financial year 2019/20 is due to be published, and therefore this data is withheld under section 22(1) of the FoIA - Information intended for future publication. Please see the attached section 17 notice which explains these exemptions in further detail. The CPS Annual Report and Accounts contains data pertaining to all data breaches reported to the Departmental Security Unit (DSU), broken down by breach type and whether the breach was ‘Included or Excluded’. Where the explanatory note indicates that the breach was ‘excluded’ on the report, this indicates that the breach was contained. Data breach information can be located within the Annual Report and Accounts 2018-19 via the link below on page 41. https://www.cps.gov.uk/publication/cps-annual-report-2018-19 The CPS Departmental Security Unit (DSU) does not keep a record of what action was taken against any individual as part of its breach investigation; such information is held on individual personnel files. The role of DSU in breach management is to ensure timeliness of reporting and prompt action to mitigate the possible impact of the breach. In order to provide the information sought in part two of your request, a manual review of each recorded breach during the specified timeframe would be required. Section 12(1) of the FOI Act means public authorities are not obliged to comply with a request for information if it estimates the cost of complying would exceed the appropriate limit. The appropriate limit for central government is set at £600. This represents the estimated cost of one person spending 3.5 working days determining whether the department holds the information, and locating, retrieving and extracting the information. We believe that the cost of manually reviewing records pertaining to each data breach would exceed the appropriate limit. Consequently, we are not obliged to comply with part two your request. Information Management Unit 020 3357 0788 [email protected]	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/0516-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 2, "total-input-tokens": 3201, "total-output-tokens": 669, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 1725, 1 ], [ 1725, 2711, 2 ] ] }
39b70ff0e61e66f487845f69a25f7676a311e86b	Freedom of Information Act 2000 Request Breakdown by ethnicity of all crimes dealt with by the CPS Request Please could you provide the ethnicity breakdown for all crimes overall, for both defendants and complainants? Please provide data per year for five years up to March 2019? In a similar format to the attached which you provided previously for VAWG offences only Response In response to your question, the data is set out in the attached spread sheet for all completed prosecutions and all complainants obtained from the national data held by the Crown Prosecution Service (CPS), the data within the spread sheet should be read in conjunction with the caveats appended to the tables. It should be noted that the data shows a breakdown of defendants and complainants in each of the last five financial years. It is important for you to note that ethnicity is self-declared, recorded and provided by the police and may be incomplete as some individuals either do not state their ethnicity or it is not provided by the police. To provide a proper context to the data, most particularly because the complainant data is considered incomplete the shortfall is so high that the CPS does not publish this information; the tables provided include those defendants and complainants self-declaring as white and those who do not state an ethnicity or where it has not been provided. Information Management Unit 020 3357 0788 [email protected]	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/0517-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 1, "total-input-tokens": 1691, "total-output-tokens": 340, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 1441, 1 ] ] }
9b647e158fccba0623861a5db7c39e596fca13d6	Freedom of Information Act 2000 Request The breakdown of offences from cases that have been dropped due to a failure in disclosing evidence in for the 2018-19 financial year Request In a previous FoI response supplied to me [Ref: XXXX] you provided a table showing the number of cases in that had been dropped by the CPS over a failure to disclose evidence. Could you now supply a similar table but for the 2018-19 financial year? In addition of those cases that were discontinued due to a failure to disclose evidence could you please break these down into the types of offences under broad categories such as violence, sexual, fraud, or any classification that you already use? Response Please see attached spreadsheet the first tab of data attached (plus caveats) shows the Principal Offence Category (POC) and the number of non-conviction outcomes allocated the primary reason “E44 - disclosure issues with the police or CPS”, for the period April to September 2018. The second tab on the attached spreadsheet shows the number of non-conviction outcomes allocated the primary reasons ‘E44’ and ‘D, due to disclosure issues with the police/CPS/third party/public interest immunity’. This is because the list of reasons for non-conviction outcomes was revised during October 2018 and the data cannot be separated in smaller time periods. The third tab on the attached spreadsheet is a summary table that shows the POC non-conviction outcomes allocated the primary reason ‘D’ from the period November 2018 to March 2019. It should be noted that the non-conviction disclosure reasons data is for all non-conviction outcomes where primary reasons apply not simply where the prosecution was dropped. This is in line with the data sent to you last year. The CPS periodically reviews and improves our lists of data, including reasons for non-conviction outcomes, to ensure they are fit for purpose. In October 2018 the CPS reviewed the non-conviction outcome reasons with the aim of increasing the detail of disclosure reasons. In line with good practice we reviewed the full list to ensure that the overall number of reasons remained at a manageable level. To this aim we amalgamated a number of reasons to form the new list while adding new disclosure reasons. The Crown Prosecution Service (CPS) reviewed and revised the list of reasons for non-conviction outcomes and a new list of reasons was implemented during October 2018. As a result of this, reason ‘E44 – disclosure issues with the police or CPS’, was decommissioned and no longer exists. The old ‘E44’ reason code had a narrower definition and was only used when the main reason for non-conviction was due to a failure to provide disclosure. The new disclosure reason codes have a wider interpretation and use. The new codes should be used where non-conviction was the result of an issue with disclosure even if it was not due to a failure to disclose. Therefore the new disclosure non-conviction data is not comparable to the previous E44 reasons and no comparisons should be made between the two different data sets. Under Section 16 of the FOI Act we have an obligation to advise what, if any, information may assist you with your request. Data on disclosure issues as a reason for non-conviction is included within the joint National Disclosure Improvement Plan (NDIP), which came into effect during 2018. Please note that the new disclosure reason data within this report starts from November 2018 to enable an accurate comparison due to the reasons noted above. Please refer to the link below (pages 10 and 11): https://www.cps.gov.uk/sites/default/files/documents/publications/NDIP-Progress-Report-January-2020.pdf Information Management Unit 020 3357 0788 [email protected]	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/0518-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 2, "total-input-tokens": 3530, "total-output-tokens": 916, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 1957, 1 ], [ 1957, 3750, 2 ] ] }
bdb8771b11382d8df20fb5ed9f30883721877f87	Freedom of Information Act 2000 Request To establish the amount of Abuse cases the CPS have called in other Government departments to assist in prosecution cases Request (in bold and in italics) - responses appear below: 1. The main reason for the request is to establish how many cases of abuse your organisation has called in Government Departments and associated organisations such as OFSTED and ISI as witnesses in prosecution cases for abuse cases in the UK courts over the past 10 years for Independent Schools? The Crown Prosecution Service (CPS) has interpreted your question as referring to child sexual abuse occurring in a school environment. It should be noted that the CPS cannot disaggregate from our data cases where the abuse against a child or children took place in a school nor can we identify if witnesses were from Government Departments (OGDs) other than manually reviewing CPS case files. As a guide of the work which would need to be undertaken, in the most recently available period year ending December 2019 the CPS completed prosecutions in respect of 4,354 case files flagged as child sexual abuse. Section 12(1) of the FOI Act means public authorities are not obliged to comply with a request for information if it estimates the cost of complying would exceed the appropriate limit. The appropriate limit for central government is set at £600. This represents the estimated cost of one person spending 3.5 working days determining whether the department holds the information, and locating, retrieving and extracting the information. We believe that the cost of manually reviewing 4,354 case files would exceed the appropriate limit. Consequently, we are not obliged to comply with your request. If you are able to answer the below questions I would be grateful. 2. I would like to ask whether the CPS collate and keep a list of abuse incidents where staff have had to leave a school and for parents and others to access a list when checking schools suitability for their children's education? The CPS does not collate or keep a record of abuse incidents where staff have had to leave a school and for parents and others to access a list when checking schools suitability for their children’s education. This is maintained and kept by the Department of Education. Please refer to them via the address below: Freedom of information (FOI) requests Department for Education (DFE) Piccadilly Gate Store Street Manchester M1 2WD United Kingdom 3. I would also like to know how you categorise Independent school abuse cases. A number of agencies struggle to answer the question when asked about cases such as these, especially those that are categorised as 'Historic' or 'Non Recent'. How many years and or months have to pass for them to be listed as such when you articulate cases with the police and the courts? The CPS does not maintain separate category of independent abuse cases. The legal guidance chapter on Non – Recent cases on the CPS website can be a further assistance. Please see the link below: [https://www.cps.gov.uk/legal-guidance/non-recent-casesand-nominal-penalties](https://www.cps.gov.uk/legal-guidance/non-recent-casesand-nominal-penalties) 4. It is still a mystery for many that abuse cases are regarded as Historic or non-recent!? I have never heard anyone talk about 'Non recent' or 'Historic' GBH, Murder, Fraud or Theft. Maybe the CPS has? This is not a valid request under the FOI Act. Please note that whilst the FOI Act allows the public to request information held by a public authority subject to any exemptions found in the Act, this must be information held by the public authority in recorded form. The authority is not obliged to create new information or find the answer to a question where the information is not already in recorded format. For guidance on how to structure a valid FOI request please refer to the ICO website on the link below: [http://ico.org.uk/for_the_public/official_information](http://ico.org.uk/for_the_public/official_information) We would therefore be grateful if you could clarify precisely what recorded information you seek for disclosure from the Crown Prosecution Service (CPS). We would then be happy to take forward your clarified request as a new request under the FOI Act. 5. Is there a level of seriousness of reporting where you as an agency prosecute the management of a School? Please see the latter part of this mail which raises a concern about legislation that doesn’t seem to cover some reports and concerns that could easily fall through the net. My recent reporting of a Governor is on hold until the ISI do their next Inspection. In response to question five, please refer to the DFE via the address provided in our response to question two as they may be able to assist with your request. 6. Are you aware of any summing up information by judges that could be useful where safeguarding Governance and management advice has been given to Schools moving forward? The CPS has interpreted this request to asking for legal advice. Please note that the role of the CPS is not to provide legal advice, therefore we are not obliged to provide a response to your question. Under section 16 of the FOI Act we have an obligation to advise what, if any, information may assist you with your request; in reference to question one, you may find it helpful to see the CPS quarterly data on Violence Against Women and Girls (VAWG) Report publically available on the CPS website which include information on the number and outcome of child sexual abuse prosecutions within the past ten years (2009 to 2019). Please see links below: https://www.cps.gov.uk/violence-against-women-and-girls-data Child sexual offences: completed prosecutions by outcome 2009-2019 Information Management Unit 020 3357 0788 [email protected]	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/0519-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 3, "total-input-tokens": 5280, "total-output-tokens": 1379, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 2032, 1 ], [ 2032, 4675, 2 ], [ 4675, 5851, 3 ] ] }
f9b4de6dbaf0fc1c31362ca85815759d8548b656	Freedom of Information Act 2000 Request Information regarding Prosecutors Protocol and the DPP’s role Request I refer to the Prosecutors Protocol dated Nov 2016 (which superseded an earlier version dated 2011). The Protocol states: "where there is an issue as to the appropriate jurisdiction in which to deal with a suspect who is subject to Service law, the Director of Public Prosecutions and the Director of Service Prosecutions should consult in relation to the appropriate jurisdiction to deal with the case, acknowledging that the final decision rests with the Director of Public Prosecutions”. On how many occasions since the signing of the Prosecutor’s Protocol in 2011 and its subsequent version dated November 2016, has the DPP been called upon to make a final decision of this nature and, in those cases, how many times has the DPP concluded that the civilian authorities had jurisdiction? Response The Crown Prosecution Service (CPS) does not hold a centralised record of any final decisions made by the Director of Public Prosecutions (DPP) under the Protocol referred to, and we are not aware of any final decisions made by the DPP under the Protocol, where there has been an issue between the CPS and the Service Prosecution Authority or the Ministry of Defence as to the appropriate jurisdiction. Under section 16 of the Freedom of Information Act, we have an obligation to advise what, if any, information may assist you with your request. The Service Prosecuting Authority (SPA) may be able to assist you with your request. FoI enquiries can be made via the SPA’s website via the following link: http://spa.independent.gov.uk/index.htm Information Management Unit 020 3357 0788 [email protected]	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/0520-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 1, "total-input-tokens": 1804, "total-output-tokens": 423, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 1721, 1 ] ] }
943abc210ec8b9e4a924d22ec70e3ebb0b0a6f2f	I have been unable to contact the employer to clear the overpayment shown on the attached papers. - I have checked that there are no payments received after 19 April (22 April if payment received electronically) following the year end. - I have prepared the attached P35 proforma return to capture the overpayment Please authorise this and return the papers to me for the P35 proforma return to be recorded as received and captured I authorise that the attached P35 proforma return should be recorded as received and captured Name \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Signed \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Authorising Officer	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/4527-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 1, "total-input-tokens": 1404, "total-output-tokens": 166, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 626, 1 ] ] }
5ce74d5769c6de31d5ef2835ba60cfc863af9d75	TO: ALL MEMBERS, ELECTED MEMBERS AND OFFICER REPRESENTATIVES OF THE PERFORMANCE AND AUDIT COMMITTEE OF DUNDEE CITY HEALTH AND SOCIAL CARE INTEGRATION JOINT BOARD (See Distribution List attached) Dear Sir or Madam PERFORMANCE AND AUDIT COMMITTEE I would like to invite you to attend a meeting of the above Committee which is to be held remotely on Wednesday, 3rd February, 2021 at 10.00am. Members of the Press or Public wishing to join the meeting should contact Committee Services on telephone (01382) 434228 or by email at [email protected] by no later than 12 noon on Monday, 1st February, 2021. Apologies for absence should be intimated to Willie Waddell, Committee Services Officer, on telephone 01382 434228 or by e-mail [email protected]. Yours faithfully VICKY IRONS Chief Officer AGENDA 1 APOLOGIES FOR ABSENCE 2 DECLARATION OF INTEREST Members are reminded that, in terms of the Integration Joint Board’s Code of Conduct, it is their responsibility to make decisions about whether to declare an interest in any item on this Agenda and whether to take part in any discussions or voting. 3 MINUTE OF PREVIOUS MEETING - Page 1 The minute of previous meeting of the Committee held on 24th November, 2020 is attached for approval. 4 DUNDEE HEALTH AND SOCIAL CARE PARTNERSHIP PERFORMANCE REPORT – 2020/2021 QUARTER 2 SUMMARY - Page 5 (Report No PAC1-2021 by the Chief Officer, copy attached). 5 HEALTH AND CARE EXPERIENCE SURVEY 2019/2020 ANALYSIS - Page 15 (Report No PAC2-2021 by the Chief Officer, copy attached). 6 GOVERNANCE ACTION PLAN PROGRESS REPORT - Page 25 (Report No PAC3-2021 by the Chief Finance Officer, copy attached). 7 DUNDEE INTEGRATION JOINT BOARD INTERNAL AUDIT PLAN PROGRESS REPORT - Page 65 (Report No PAC4-2021 by the Chief Finance Officer, copy attached). 8 INTERNAL AUDIT REVIEW – FINANCE - Page 71 (Report No PAC5-2021 by the Chief Finance Officer, copy attached). 9 DUNDEE HEALTH AND SOCIAL CARE PARTNERSHIP CLINICAL CARE AND PROFESSIONAL GOVERNANCE ASSURANCE REPORT - Page 89 (Report No PAC6-2021 by the Clinical Director, copy attached). 10 QUARTERLY COMPLAINTS PERFORMANCE – 2ND QUARTER 2020/2021 - Page 111 (Report No PAC7-2021 by the Chief Social Work Officer, copy attached). 11 DUNDEE HEALTH AND SOCIAL CARE PARTNERSHIP STRATEGIC RISK REGISTER – UPDATE - Page 117 (Report No PAC8-2021 by the Chief Finance Officer, copy attached). 12 ATTENDANCE LIST - Page 125 (A copy of the Attendance Return (PAC9-2021) for meetings of the Performance and Audit Committee held over 2020 is attached for information and record purposes). 13 PROGRAMME OF MEETINGS - PERFORMANCE AND AUDIT COMMITTEE – 2021 The Committee is asked to note that the programme of meetings for the Performance and Audit Committee over the remainder of 2021 will be as follows:- Wednesday 24th March 2021 - 10.00am Wednesday 26th May 2021 - 10.00am Wednesday 29th September 2021 - 10.00am Wednesday 24th November 2021 - 10.00am All meetings will be held remotely unless otherwise advised by the Clerk. 14 DATE OF NEXT MEETING The next meeting of the Committee will be held remotely on Wednesday, 24th March, 2021 at 10.00 am (unless otherwise advised by the Chief Officer). PERFORMANCE AND AUDIT COMMITTEE PUBLIC DISTRIBUTION LIST (a) DISTRIBUTION – PERFORMANCE AND AUDIT COMMITTEE (\* - DENOTES VOTING MEMBER) \| Role \| Recipient \| \|----------------------------------------------------------------------\|----------------------------------\| \| NHS Non Executive Member (Chair) \| Trudy McLeay * \| \| Elected Member \| Councillor Roisin Smith * \| \| Elected Member \| Bailie Helen Wright * \| \| NHS Non Executive Member \| Donald McPherson\* \| \| Chief Officer \| Vicky Irons \| \| Chief Finance Officer \| Dave Berry \| \| Registered medical practitioner employed by the Health Board and not \| James Cotton \| \| providing primary medical services \| \| \| Chief Social Work Officer \| Diane McCulloch \| \| Chief Internal Auditor \| Tony Gaskin \| \| Staff Partnership Representative \| Raymond Marshall \| \| Person providing unpaid care in the area of the local authority \| Martyn Sloan \| (b) DISTRIBUTION – FOR INFORMATION ONLY \| Organisation \| Recipient \| \|----------------------------------------------------------------------\|------------------------------------\| \| Dundee City Council (Chief Executive) \| Greg Colgan \| \| Elected Member – Proxy \| Depute Lord Provost Bill Campbell \| \| Elected Member – Proxy \| Councillor Lynne Short \| \| Elected Member – Proxy \| Councillor Margaret Richardson \| \| Dundee City Council (Executive Director of Corporate Services) \| Robert Emmott \| \| Dundee City Council (Head of Democratic and Legal Services) \| Roger Mennie \| \| NHS Tayside (Chief Executive) \| Grant Archibald \| \| NHS Non Executive Member – Proxy \| Norman Pratt \| \| NHS Tayside (Director of Finance) \| Stuart Lyall \| \| Dundee City Council (Members’ Support) \| Jayne McConnachie \| \| Dundee City Council (Members’ Support) \| Dawn Clarke \| \| Dundee City Council (Members’ Support) \| Fiona Barty \| \| Dundee City Council (Members’ Support) \| Sharron Wright \| \| Dundee City Council (Communications rep) \| Steven Bell \| \| Dundee Health and Social Care Partnership \| Kathryn Sharp \| \| NHS Tayside (Communications rep) \| Jane Duncan \| \| NHS Fife (Internal Audit) (Principal Auditor) \| Judith Triebs \| \| NHS (PA to Tony Gaskin) \| Carolyn Martin \| \| Audit Scotland (Audit Manager) \| Anne Marie Machan \| \| Dundee City Council (Secretary to Dave Berry) \| Pauline Harris \| \| NHS Tayside (PA to James Cotton) \| Jodi Lyon \| At a MEETING of the PERFORMANCE AND AUDIT COMMITTEE OF THE DUNDEE CITY HEALTH AND SOCIAL CARE INTEGRATION JOINT BOARD held remotely on 24th November, 2020. Present:- \| Members \| Role \| \|--------------------------\|-----------------------------------------------------------\| \| Trudy McLEAY (Chairperson) \| Nominated by Health Board (Non-Executive Member) \| \| Lynne SHORT \| Nominated by Dundee City Council (Elected Member) \| \| Helen WRIGHT \| Nominated by Dundee City Council (Elected Member) \| \| Donald MCPHERSON \| Nominated by Health Board (Non-Executive Member) \| \| Dave BERRY \| Chief Finance Officer \| \| Tony GASKIN \| Chief Internal Auditor \| \| Vicky IRONS \| Chief Officer \| \| Diane McCULLOCH \| Chief Social Work Officer \| \| Martyn SLOAN \| Carer Representative \| Non-members in attendance at the request of the Chief Finance Officer:- \| Members \| Role \| \|--------------------------\|-----------------------------------------------------------\| \| Kevin GRUBB \| Health and Social Care Partnership \| \| Christine JONES \| Health and Social Care Partnership \| \| Matthew KENDALL \| Health and Social Care Partnership \| \| Anne Marie MACHAN \| Audit Scotland \| \| Fiona MITCHELL-KNIGHT \| Audit Scotland \| \| Amber OGILVIE \| Audit Scotland \| \| Kathryn SHARP \| Health and Social Care Partnership \| \| Sheila WEIR \| Health and Social Care Partnership \| Trudy McLeay, Chairperson, in the Chair. I APOLOGIES FOR ABSENCE Apologies for absence were submitted on behalf of:- \| Members \| Role \| \|--------------------------\|-----------------------------------------------------------\| \| Roisin SMITH \| Nominated by Dundee City Council (Elected Member) \| \| James COTTON \| Registered medical practitioner employed by Health Board and not providing primary medical services \| \| Raymond MARSHALL \| Staff Partnership Representative \| II DECLARATION OF INTEREST No declarations of interest were made. III PERFORMANCE AND AUDIT COMMITTEE MEMBERSHIP AND CHAIRPERSON Reference was made to Article IV of the minute of meeting of the Integration Joint Board held on 27th October, 2020, wherein the membership of the Performance and Audit Committee was agreed and appointment was made to the position of Chairperson of the Committee. The Committee noted that the membership of the Performance and Audit Committee was agreed as follows:- Councillor Roisin Smith, Bailie Helen Wright, Trudy McLeay, Donald McPherson, Diane McCulloch, James Cotton, Raymond Marshall and Martyn Sloan, and that Trudy McLeay was appointed to the position of Chairperson. IV MINUTE OF PREVIOUS MEETING The minute of meeting of the Committee held on 22nd September, 2020 was submitted and approved. V AUDIT SCOTLAND ANNUAL REPORT AND INTEGRATION JOINT BOARD ANNUAL ACCOUNTS 2019/2020 There was submitted Report No PAC36-2020 by the Chief Finance Officer presenting the Integration Joint Board’s (IJB) Draft Audited Annual Statement of Accounts for the year to 31st March, 2020 for approval, to note the draft external auditor’s report in relation to these accounts and approve the response to this report. The Performance and Audit Committee: (i) Noted the contents of the Audit Scotland cover letter (attached as Appendix 1) and the draft external auditor’s report (attached as Appendix 2) including the completed action plan outlined on pages 28-33 of the report, and in particular that Audit Scotland have indicated they will issue an unqualified audit opinion on the IJB’s 2019/2020 Annual Accounts; (ii) Endorsed the report as the IJB’s formal response to the external auditor’s report; (iii) Instructed the Chief Finance Officer to provide an update on progress of the action plan noted in Appendix 1 of the external auditor’s report by January 2021; (iv) Approved the Audited Annual Accounts (attached as Appendix 3) for signature and instructed the Chief Finance Officer to return these to the external auditor; (v) Instructed the Chief Finance Officer to arrange for the Annual Accounts to be published on the Dundee Health and Social Care Partnership website by no later than Monday 30th November, 2020. VI MEASURING PERFORMANCE UNDER INTEGRATION 2020/2021 There was submitted Report No PAC32-2020 by the Chief Finance Officer seeking approval of an interim approach to assessing and reporting performance against Measuring Performance under Integration indicators set by the Ministerial Strategic Group for Health and Community Care (MSG) during 2020/2021. The Performance and Audit Committee: (i) Noted the content of the report, including the need to agree a formal position in relation to the reporting of performance against Measuring Performance under Integration indicators for 2020/2021 as noted in section 4.2.3 of the report; and (ii) Agreed the proposal that Measuring Performance under Integration targets were not set for 2020/2021 but that data continued to be integrated into the Quarterly Performance Reports submitted to PAC as noted in section 4.2.6 of the report. VII CLINICAL, CARE AND PROFESSIONAL GOVERNANCE (CCPG) – PERIOD MARCH 2020 – JULY 2020 The Performance and Audit Committee noted that this report had been withdrawn. A verbal update was given by Matthew Kendall, Allied Health Professions Lead and the Committee noted the following key points: • Risk Management – significant work was required in this area and the position had now improved however, additional work was required to bring the NHS and Council systems together; • Governance Arrangements – education and peer support mechanism in place; • Adverse Events – there was a reduction of adverse events with harm. Ongoing training was in place for staff. Noted a change in demographic in the patients in Psychiatry of Old Age and Medicine for the Elderly; • Falls – work had taken place with the Scottish Ambulance Service to develop a dataset and additional funding had been received to continue work with the Service; • Complaints – a new report was being developed to present the number of complaints received monthly over time. The Performance and Audit Committee agreed that a written report would be brought to the next Committee for information. VIII GOVERNANCE ACTION PLAN PROGRESS REPORT There was submitted Report No PAC34-2020 by the Chief Finance Officer providing the Performance and Audit Committee with an update on the progress of the actions set out in the Governance Action Plan. The Performance and Audit Committee noted the progress made in relation to the actions set out in the Governance Action Plan as outlined in Appendix 1 of the report. IX DUNDEE INTEGRATION JOINT BOARD INTERNAL AUDIT PLAN PROGRESS REPORT There was submitted Report No PAC35-2020 by the Chief Finance Officer providing the Performance and Audit Committee with a progress update in relation to the current Internal Audit Plan. X MEETING OF PERFORMANCE AND AUDIT COMMITTEE 2020 - ATTENDANCES There was submitted a copy of the Attendance Return PAC38-2020 for meetings of the Performance and Audit Committee held over 2020. The Performance and Audit Committee noted the position as outlined. XI DATE OF NEXT MEETING To be advised. Trudy McLEAY, Chairperson. 1.0 PURPOSE OF REPORT 1.1 The purpose of this report is to update the Performance and Audit Committee on 2020-21 Quarter 2 performance against the National Health and Wellbeing Indicators and ‘Measuring Performance Under Integration’ indicators. 2.0 RECOMMENDATIONS It is recommended that the Performance & Audit Committee (PAC): 2.1 Note the content of this summary report. 2.2 Note the performance of Dundee Health and Social Care Partnership, at both Dundee and Local Community Planning Partnership (LCPP) levels, against the National Health and Wellbeing Indicators as summarised in Appendix 1. 2.3 Note the performance of Dundee Health and Social Care Partnership against the ‘Measuring Performance Under Integration’ indicators as summarised in Appendix 1 (table 2). 3.0 FINANCIAL IMPLICATIONS 3.1 None. 4.0 BACKGROUND 4.1 In February 2019 the Performance and Audit Committee approved a revised approach to quarterly performance reporting; with summary reports being provided in Quarters 1 and 3 of each financial year and full reports in Quarters 2 and 4 (Article V of the minute of the meeting of the Dundee PAC held on 12 February 2019 refers). A full report was provided in Q1 to allow the Performance and Audit Committee to understand and scrutinise early information about the impact of the COVID-19 pandemic on key areas of performance. For this reason this Q2 report is a summary report and the original reporting schedule will resume from Q3. 4.2 The Quarter 2 Performance Report analyses performance against National Health and Wellbeing Indicators 1-23 and Measuring Performance Under Integration (MPUI) indicators. 5 of the 23 National Health and Wellbeing Indicators are monitored quarterly (emergency admissions, emergency bed days, readmissions, falls admissions and delayed discharge bed days lost) Appendix 1 provides a summary of performance. Data is provided both at Dundee and Local Community Planning Partnership (LCPP) level (where available). Data is currently not available for eight out of the 13 National Indicators which are not reported using The Health and Social Care Experience Survey (see section 4.3). The Scottish Government and Public Health Scotland are working on the development of definitions and datasets to calculate these indicators nationally. 4.3 The National Health and Wellbeing Indicators 1-9 are reported from The Health and Social Care Experience Survey administered by the Scottish Government which is conducted biennially. Full details have been provided in PAC2-2021 that is also on this agenda. A summary of the published results from the 2019-20 survey is provided in Appendix 1 (table 1). The Scottish Government changed the methodology used to filter responses to reflect people who receive services from the Partnership and therefore it is not possible to longitudinally compare results for National Indicators 1-7 and 9. 4.4 Appendix 1 also summarises performance against indicators in the Measuring Performance Under Integration (MPUI) suite of indicators for four out of six high level service delivery areas – emergency admissions, emergency bed days, accident and emergency and delayed discharges. Detail is provided in Appendix 2. We are currently unable to provide analysis for balance of care and end of life as data is not provided by Public Health Scotland for these service areas. In November 2020 the Performance and Audit Committee agreed that targets are not set for 2020-21 for these indicators but that data continues to be integrated into the quarterly performance reports submitted to PAC (Article VI of the minute of the Dundee Performance and Audit Committee held on 24 November 2020 refers). 4.5 This report should be assessed with regard to the demographic and socio economic context of Dundee; high rates of deprivation, an ageing population, frailty and age associated conditions being diagnosed earlier in life than in more affluent Partnerships and deprivation associated mental health illnesses and substance misuse problems. 4.6 The impact of the COVID-19 pandemic on the health and social care needs of the population, how we deliver supports and services, on health inequalities and on the health and wellbeing of our workforce and of unpaid carers has been substantial and wide ranging. Information about the direct impact of the pandemic is shaping and influencing how services are provided. The priority given to reducing demand on unscheduled care temporarily shifted as Health and Social Care Partnerships adapted processes, procedures and pathways in order to prevent spread of the virus and to maximise hospital capacity to treat COVID-19 patients safely and effectively. This adds a level of complexity to the indicators monitored since 2015/16 to measure how Partnerships are performing towards ‘shifting the balance of care’. This report presents indicators for all admission reasons and non-COVID admission reasons separately where this is possible and relevant in order to allow scrutiny of performance towards the national indicators for people not diagnosed with COVID-19. All indicators where processes and pathways were affected by the pandemic should be treated with caution and viewed alongside whole system pathways and processes when scrutinising performance. 5.0 DATA SOURCES USED FOR MEASURING PERFORMANCE 5.1 National data is provided to all partnerships, by Public Health Scotland, to assist with monitoring against targets set under Measuring Performance under Integration arrangements. This data shows rolling monthly performance for emergency admissions, emergency admissions from accident and emergency, accident and emergency attendances, emergency bed days and delayed discharges. Previously Public Health Scotland were only able to provide data for all ages, however following feedback from Dundee and other Partnerships they have now provided data for people age 18+. (Please refer to Appendix 1, Table 2). 5.2 It was agreed at the PAC held on 19 July 2017 (Article VIII of the minute of the meeting refers) that local data, provided by the NHS Tayside Business Unit will be used to produce more timeous quarterly performance reports against the National Health and Wellbeing Indicators. NHS Tayside Business Unit has provided data for emergency admissions, emergency bed days, readmissions, delayed discharges and falls. From quarter 1 2020-21 the NHS Tayside Business Unit has been providing breakdowns of covid and non covid admission reasons for emergency admissions, ______________________________________________________________________ 1 Rolling data is used so that quarterly data can be compared with financial years. This means that data for Quarter 2 shows the previous 12 months of data including the current quarter. Therefore, Quarter 2 data includes data from 1 October 2019 to 30 September 2020. emergency bed days, hospital admissions due to a fall and delayed discharges. (Please refer to Appendix 1, Tables 3 and 4). 5.3 Data provided by NHS Tayside differs from data provided by Public Health Scotland (PHS); the main differences being that NHS Tayside uses ‘board of treatment’ and PHS uses ‘board of residence’ and NHS Tayside uses an admissions based dataset whereas PHS uses a discharge based dataset (NHS Tayside records are more complete but less accurate as PHS data goes through a validation process). As PHS data is discharge based, numbers for one quarter will have been updated the following quarter as records get submitted for those admitted one quarter and discharged a subsequent quarter. By the time PHS release their data, records are (in most cases) 99% complete. The data provided by NHS Tayside Business Unit is provisional and figures should be treated with caution. 6.0 QUARTER 2 PERFORMANCE 2020-21 6.1 Rolling data from October 2019 to September 2020 demonstrates that all indicators that make-up the Measuring Performance under Integration suite, with the exception of emergency admissions as a rate per 1000 of all A&E attendances, have improved between Q1 2020-21 and Q2 2020-21. Please refer to Table 2 in Appendix 1. 6.2 Tables 3 and 4 in Appendix 1 summarise performance against the National Health and Wellbeing Indicators at both Dundee and LCPP level using rolling local data from October 2019 to September 2020. 6.2.1 Between the baseline year (2015/16) and 2020/21 Quarter 2 there has been improved performance in: rate of bed days lost to delayed discharge for people aged 75+ (for both Standard and Complex delays) and emergency bed day rate for people aged 18+. In the same period there has been a deterioration in performance in: emergency admission rate for people aged 18+ (there was a small increase of 0.1% which amounted to 95 admission); readmissions rate for people of all ages; and the rate of hospital admissions as a result of a fall for people aged 65+. This is the same pattern of performance as reported in 2020-21 Quarter 1 (Article V of the minute of the Dundee Performance and Audit Committee held on 22 September 2020 refers) and there are therefore no exceptions to report to PAC. 6.2.2 Between the baseline year 2015/16 and 2020/21 Quarter 2 there was an improvement in the rate of bed days lost to complex delayed discharges for people aged 75+ across all Local Community Planning Partnerships (LCPPs) except Maryfield (6.4% increase). There was a 72.1% improvement in Dundee and the LCPP rates ranged from a 100% improvement in East End to a 6.4% deterioration in Maryfield. 6.2.3 Between the baseline year 2015/16 and 2020/21 Quarter 2 there was an improvement in the rate of bed days lost to standard delayed discharges for people aged 75+ across all LCPPs. There was a 49.0% improvement in Dundee and improvements ranged from 11.4% in The Ferry and 74% in Maryfield. 6.2.4 Emergency bed day rates since 2015/16 have decreased by 22.2% for Dundee, which is an improvement. Every LCPP showed an improvement in 2020/21 Quarter 2 compared with 2015/16 and improvements ranged from 14.1% in Strathmartine to 34.9% in East End. Improvements are even better when COVID admission reasons were excluded – 23.3% improvement in Dundee, ranging from 15.3% improvement in Strathmartine to 35.9% improvement in East End. 6.2.5 Emergency admission rates have increased by 0.1% for Dundee since 2015/1, which is a deterioration and there were increases in North East (1.2%), Strathmartine (3.4%), East End (4.5%) and Maryfield (5.8%). Performance ranged from an increase in Maryfield (+5.8%) to a decrease in The Ferry (-10.6%). When excluding Covid admission reasons performance is better and shows a 1.6% decrease since 2015/16, which is an improvement, however there were increases in East End (2.3%) and Maryfield (4.2%) which is a deterioration. Performance ranged from an increase in Maryfield (+4.2%) to a decrease in The Ferry (-11.8%). 6.2.6 The rate of readmissions in Dundee has increased by 25% since 2015/16. The rate increased (deteriorated) in 6 LCPPs (West End 48% increase, Lochee 42% increase, Coldside 30% increase, Strathmartine 29% increase, East End 24% increase and Maryfield 23% increase). The rate decreased (improved) in 2 LCPP areas (North East 14% decrease and The Ferry 17% decrease). 6.2.7 The rate of hospital admissions as a result of a fall for people aged 65+ in Dundee has increased by 22.0% since 2015/16, which is a deterioration. The rate increased in all LCPP areas. The increases ranged from 4.7% in North East to 52.9% in The Ferry. 7.0 POLICY IMPLICATIONS 7.1 This report has been screened for any policy implications in respect of Equality Impact Assessment. There are no major issues. 8.0 RISK ASSESSMENT \| Risk 1 Description \| The risk of not meeting targets against national indicators could affect; outcomes for individuals and their carers, spend associated with poor performance if the Partnership’s performance is not good. \| \|--------------------\|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------\| \| Risk Category \| Financial, Governance, Political \| \| Inherent Risk Level\| 15 – Extreme Risk (L=3 (possible), I=5 (extreme)) \| \| Mitigating Actions (including timescales and resources ) \| - Continue to develop a reporting framework which identifies performance against national and local indicators. - Continue to report data quarterly to the PAC to highlight areas of poor performance. - Continue to support operational managers by providing in depth analysis regarding areas of poor performance, such as around readmissions to hospital and falls related hospital admissions. - Continue to ensure that data informs operational practices and improvements and also that operational activities and priorities are used to interpret trends shown by the data. \| \| Residual Risk Level \| 9 – High Risk (L=3(possible), I=3 (moderate)) \| \| Planned Risk Level \| 6 – Moderate Risk (L=2(unlikely), I=3(moderate)) \| \| Approval recommendation \| Given the moderate level of planned risk, this risk is deemed to be manageable. \| 9.0 CONSULTATIONS 9.1 The Chief Officer, Head of Service, Health and Community Care and the Clerk were consulted in the preparation of this report. 10.0 BACKGROUND PAPERS 10.1 None. ### APPENDIX 1 – Performance Summary #### Table 1 – National Health and Wellbeing Indicators 1-9 \| Indicator \| Scotland \| Dundee \| North Lanarkshire \| Glasgow \| North Ayrshire \| Inverclyde \| West Dunbartonshire \| East Ayrshire \| Western Isles \| \|---------------------------------------------------------------------------\|----------\|--------\|-------------------\|---------\|----------------\|------------\|---------------------\|---------------\|--------------\| \| 1. Percentage of adults able to look after their health very well or quite well \| 93% \| 92% \| (joint 2nd best) \| 90% \| 90% \| 92% \| 90% \| 91% \| 92% \| 94% \| \| 2. Percentage of adults supported at home who agreed that they are supported to live as independently as possible \| 81% \| 79% \| (2nd poorest) \| 78% \| 82% \| 84% \| 91% \| 80% \| 86% \| 81% \| \| 3. Percentage of adults supported at home who agreed that they had a say in how their help, care, or support was provided \| 75% \| 73% \| (3rd poorest) \| 71% \| 76% \| 75% \| 82% \| 83% \| 79% \| 70% \| \| 4. Percentage of adults supported at home who agreed that their health and social care services seemed to be well co-ordinated \| 74% \| 72% \| (2nd poorest) \| 70% \| 75% \| 76% \| 82% \| 77% \| 84% \| 80% \| \| 5. Percentage of adults receiving any care or support who rate it as excellent or good \| 80% \| 75% \| (poorest) \| 78% \| 79% \| 77% \| 85% \| 83% \| 80% \| 86% \| \| 6. Percentage of people with positive experience of care at their GP practice \| 79% \| 79% \| (4th best) \| 68% \| 83% \| 73% \| 78% \| 81% \| 70% \| 87% \| \| 7. Percentage of adults supported at home who agree that their services and support had an impact on improving or maintaining their quality of life \| 80% \| 77% \| (2nd poorest) \| 76% \| 79% \| 79% \| 83% \| 82% \| 87% \| 86% \| \| 8. Percentage of carers who feel supported to continue in their caring role \| 34% \| 35% \| (3rd poorest) \| 33% \| 36% \| 31% \| 39% \| 37% \| 36% \| 39% \| \| 9. Percentage of adults supported at home who agreed they felt safe \| 83% \| 82% \| (joint 3rd poorest) \| 80% \| 82% \| 85% \| 90% \| 79% \| 89% \| 86% \| Source: Scottish Government, Health and Care Experience Survey 2019/20 Key Points 1. Best performing Family Group is highlighted in red and poorest is highlighted in red. 2. Dundee’s performance was poorer than the Scottish average in 7 out of the 9 indicators, the same for one indicator and better for one indicator. 3. The methodology was changed by Scottish Government on how the responses included in these results are filtered, therefore it is not accurate to compare longitudinally. This is because the question which allows the Scottish Government to ascertain which respondents receive care / support from the Health and Social Care Partnerships was changed and the interpretation of these questions is subjective and varies per respondent. Table 2: Measuring Performance under Integration Summary \| Integration Indicator (Annual 18+) \| 15-16 Baseline \| 20-21 Q1 Actual Data \| 20-21 Q2 Actual Data \| Actual % Difference from 15-16 Baseline \| Direction of travel from Q1 to Q2 \| \|-----------------------------------\|----------------\|----------------------\|----------------------\|----------------------------------------\|----------------------------------\| \| Emergency Admission Rate per 100,000 Dundee Population \| 11,643 \| 11,651 \| 11,535 \| ↑0.07 \| ↓0.92 \| Better \| \| Emergency Admission Numbers \| 14,127 \| 14,203 \| 14,062 \| ↑0.54 \| ↓0.46 \| Better \| \| Emergency Admissions Numbers from A&E \| 6,483 \| 7,160 \| 7,136 \| ↑10.44 \| ↑10.12 \| Better \| \| Emergency Admissions as a Rate per 1,000 of all Accident & Emergency Attendances \| 277 \| 322 \| 335 \| ↑16.44 \| ↑21.08 \| Worse \| \| Emergency Bed Day Rate for Acute Specialties per 100,000 Dundee Population \| 100,284 \| 76,190 \| 73,042 \| ↓24.02 \| ↓27.17 \| Better \| \| Emergency Bed Days Numbers for Acute Specialties \| 121,683 \| 92,881 \| 89,043 \| ↓23.67 \| ↓26.82 \| Better \| \| Emergency Bed Days Numbers for Mental Health Specialties \| 44,552 \| 32,630 \| 32,195 \| ↓26.76 \| ↓27.74 \| Better \| \| Accident & Emergency Attendances \| 23,437 \| 22,230 \| 21,315 \| ↓5.15 \| ↓9.04 \| Better \| \| Number of Bed Days Lost to Delayed Discharges per 1,000 Population (All Reasons) \| 124 \| 68 \| 64 \| ↓45.50 \| ↓48.51 \| Better \| \| Number of Bed Days Lost to Delayed Discharges (All Reasons) \| 15,050 \| 9,861 \| 7,785 \| ↓34.48 \| ↓48.27 \| Better \| \| Number of Bed Days Lost to Delayed Discharges (Code 9) \| 6,668 \| 3,707 \| 3,422 \| ↓44.41 \| ↓48.68 \| Better \| Source ISD: ISD MSG Indicators Key: - Improved/Better than previous quarter - Declined/Worse than previous quarter Key Points: Published MSG data has been used to measure performance therefore there may be a discrepancy when comparing with the local performance data. Note late submissions of data may result in % differences reported varying from one quarter to another. Table 3: Performance in Dundee’s LCPPs - % change in Q2 2020-21 against baseline year 2015/16 \| National Indicator \| Dundee \| Lochee \| East End \| Coldside \| North East \| Strathmartine \| Maryfield \| West End \| The Ferry \| \|--------------------\|--------\|--------\|----------\|----------\|------------\|---------------\|-----------\|----------\|-----------\| \| Emer Admissions rate per 100,000 18+ (Covid and Non Covid) \| +0.1% \| -0.7% \| +4.5% \| -0.4% \| +1.2% \| +3.4% \| +5.8% \| -0.3% \| -10.6% \| \| Emer Admissions rate per 100,000 18+ (Non Covid Only) \| -1.6% \| -2.0% \| +2.3% \| -2.1% \| -0.9% \| +1.7% \| +4.2% \| -2.3% \| -11.8% \| \| Emer Bed Days rate per 100,000 18+ (Covid and Non Covid) \| -22.2% \| -23.3% \| -34.9% \| -20.2% \| -19.8% \| -14.1% \| -17.6% \| -21.6% \| -21.7% \| \| Emer Bed Days rate per 100,000 18+ (Non Covid Only) \| -23.3% \| -24.2% \| -35.9% \| -21.3% \| -20.8% \| -15.3% \| -18.8% \| -23.0% \| -22.9% \| \| Readmissions rate per 1,000 Admissions All \| +25% \| +42% \| +24% \| +30% \| -14% \| +29% \| +23% \| +48% \| +17% \| \| Hospital admissions due to falls rate per 1,000 65+ \| +22% \| +9.3% \| +28.8% \| +11.5% \| +4.7% \| +5.7% \| +23.2% \| +32.8% \| +52.9% \| \| Delayed Discharge Bed Days Lost rate per 1,000 75+ (Standard) \| -49.0% \| -57.7% \| -70.7% \| -35.9% \| -70.4% \| -51.1% \| -74.0% \| -43.0% \| -11.4% \| \| Delayed Discharge Bed Days Lost rate per 1,000 75+ (Code 9) \| -72.1% \| -8.9% \| -100.0% \| -74.0% \| -75.3% \| -92.2% \| +6.4% \| -62.4% \| -57.5% \| Table 4: Performance in Dundee’s LCPPs - LCPP Performance in Q2 2020-21 compared to Dundee \| National Indicator \| Dundee \| Lochee \| East End \| Coldside \| North East \| Strathmartine \| Maryfield \| West End \| The Ferry \| \|--------------------\|--------\|--------\|----------\|----------\|------------\|---------------\|-----------\|----------\|-----------\| \| Emer Admissions rate per 100,000 18+ (Covid and Non Covid) \| 11,949 \| 13,669 \| 16,534 \| 13,654 \| 11,777 \| 13,529 \| 10,487 \| 7,974 \| 9,859 \| \| Emer Admissions rate per 100,000 18+ (Non Covid Only) \| 11,748 \| 13,488 \| 16,190 \| 13,426 \| 11,530 \| 13,320 \| 10,326 \| 7,815 \| 9,721 \| \| Emer Bed days rate per 100,000 18+ (Covid and Non Covid) \| 103,474 \| 124,419 \| 118,609 \| 130,080 \| 90,316 \| 106,467 \| 87,911 \| 76,916 \| 98,908 \| \| Emer Bed days rate per 100,000 18+ (Non Covid Only) \| 101,970 \| 122,875 \| 116,838 \| 128,219 \| 89,204 \| 104,888 \| 86,618 \| 75,570 \| 97,380 \| \| Readmissions rate per 1,000 Admissions All\* \| 140 \| 147 \| 154 \| 149 \| 95 \| 150 \| 150 \| 153 \| 114 \| \| Hospital admissions due to falls rate per 1,000 65+ \| 30.4 \| 29.1 \| 35.3 \| 33.3 \| 21.5 \| 26.6 \| 28.6 \| 36.6 \| 31.0 \| \| Delayed Discharge bed days lost rate per 1,000 75+ (standard) \| 268 \| 257 \| 191 \| 355 \| 140 \| 240 \| 155 \| 388 \| 278 \| \| Delayed Discharge bed days lost rate per 1,000 75+ (Code 9) \| 82 \| 150 \| 0 \| 115 \| 188 \| 32 \| 172 \| 81 \| 18 \| Source: NHS Tayside data \covid admission reasons not available Key: - Improved/Better - Stayed the same - Declined/Worse 1.0 PURPOSE OF REPORT 1.1 The purpose of this report is to update the Performance and Audit Committee on the responses from the 2019-20 Health and Care Experience Survey, which is used to provide measurement for National Health and Wellbeing Indicators 1 to 9. 2.0 RECOMMENDATIONS It is recommended that the Performance & Audit Committee (PAC): 2.1 Note the changes to the methodology used to filter responses and report against the National Health and Wellbeing Indicators (section 5). 2.2 Note the performance of Dundee Health and Social Care Partnership against the Scottish average and 8 Local Government Benchmarking Framework (LGBF) family group partnerships (section 6 and appendix 1). 2.3 Note that the survey results will be further considered as part of the ongoing revision of the Partnership’s Strategic Needs Assessment and by the Operational Management Team with a view to identify any further actions required to supplement ongoing improvement activity (section 7). 3.0 FINANCIAL IMPLICATIONS 3.1 None. 4.0 BACKGROUND 4.1 The Scottish Health and Care Experience Survey is a postal survey which is sent to a random sample of people who are registered with a GP in Scotland. The survey has been administered every two years since 2009-10 and forms part of the Scottish Care Experience Excellence Programme, which is a suite of national surveys that aims to provide local and national information on the quality of health and care services from the perspective of the people who use them. 4.2 The survey results are used nationally to inform planning and monitor performance, to monitor the NHS Scotland Local Delivery Plan standards on accessing GP services and to report against 9 of the 23 National Health and Wellbeing Outcome indicators under the Public Bodies (Joint Working) (Scotland) Act 2014. 4.3 The survey results are used locally by GP practices and Health and Social Care Partnerships to understand people’s experiences, allow benchmarking with other area Partnership areas and to inform future service planning and improvement. 5.0 LONGITUDINAL ANALYSIS 5.1 Health and Social Care Partnerships are required under the Public Bodies (Joint working) (Scotland) Act 2014, and associated regulations and guidance, to monitor performance from the pre-integration 2015-16 position to the current position. It is not possible for this to be done for National Health and Wellbeing Outcome indicators 1 to 7 and indicator 9 because the survey is biennial and because the methodology was changed by the Scottish Government between the 2017-18 and 2019-20 surveys. The Scottish Government has advised that comparing the results of the 2017-18 and 2019-20 surveys is not accurate and should not be undertaken as part of any further analysis of survey data. 5.2 In order to only report the responses of people who receive services from the Health and Social Care Partnerships, responses are filtered. The way in which these responses were filtered differed in 2017-18 and 2019-20, making the data incomparable. 5.3 The responses from the section about carers do not require to be filtered, therefore National Health and Wellbeing Outcome indicator 8, which asks if a carer feels supported to continue in their caring role, can be analysed longitudinally. 6.0 BENCHMARKING ANALYSIS 6.1 Dundee performed in the top 4 out of the 8 Local Government Benchmarking Framework (LGBF) family group partnerships for 3 out of the 9 indicators: - Percentage of adults able to look after their health very well or quite well; - Percentage of adults supported at home who agree that they are supported to live as independently as possible; and, - Percentage of people with positive experience of the care provided by their GP practice 6.2 Dundee performed the same as or better than the Scottish average for 2 out of the 9 indicators. - Percentage of people with positive experience of the care provided by their GP practice; and, - Percentage of carers who feel supported to continue in their caring role. 6.3 Dundee therefore performed poorly when benchmarked against comparable Partnerships (LGBF family group) and / or the Scottish average in all indicators other than indicator 6 – percentage of people with positive experiences of care provided by their GP practice. 7.0 NEXT STEPS 7.1 The findings of the 2019-20 Health and Care Experience Survey will be considered and triangulated with other sources of information as part of the ongoing review of the Partnership’s Strategic Needs Assessment and of the Strategic and Commissioning Plan 2019-2022 (Article VI of the minute of the meeting of Dundee Integration Joint Board held on 15 December 2020 refers). However, the inability to utilise longitudinal analysis for the majority of indicators is a significant limitation on their use in this context. 7.2 The Operational Management Team will consider the findings of the survey, with a particular focus on indicators 3 to 5, indicator 7 and indicator 9 that focus on the co-ordination, quality and impact of care. It should be noted that poor perceptions of quality of care (indicator 5) should be considered alongside National Health and Wellbeing Outcome indicator 17 (proportion of care services graded ‘good’ (4) or better in Care Inspectorate inspections); in 2019-20 Dundee achieved 80% against a Scottish average of 82% representing a 6% decline from the previous year (2018-19) and a 8% decline from the pre-integration position (2015-16). Whilst there are a range of actions already being implemented to improve local arrangements for the personalisation, co-ordination and delivery of care, the Operational Management Team will consider what further actions may be required to address poor performance identified through the survey. 7.3 Dundee Carers Partnership is currently reviewing the statutory carers strategy for the city (Article VII of the minutes of the Dundee Integration Joint Board held on 25 August 2020 refers). The Carers Partnership will consider the findings of the survey in relation to outcome 8 and measures required to address the continued decline in the percentage of carers who feel supported to continue in their caring role. 7.0 POLICY IMPLICATIONS 7.1 This report has been screened for any policy implications in respect of Equality Impact Assessment. There are no major issues. 8.0 RISK ASSESSMENT 8.1 This report has not been subject to a risk assessment as it does not require any policy or financial decisions at this time. 9.0 CONSULTATIONS 9.1 The Chief Officer, Head of Service, Health and Community Care and the Clerk were consulted in the preparation of this report. 10.0 BACKGROUND PAPERS 10.1 None. DATE: 21 January 2021 Dave Berry Chief Finance Officer Lynsey Webster Senior Officer, Strategy and Performance Kathryn Sharp Service Manager, Strategy and Performance APPENDIX 1 National Indicators 1-9 Family Group Analysis National Indicator 1: Percentage of adults able to look after their health very well or quite well (Scotland) - All family group partnerships except Western Isles performed worse than the Scottish average. - Dundee performed 2nd best in the family group, however worse than the Scottish average. National Indicator 2: Percentage of adults supported at home who agree that they are supported to live as independently as possible (Scotland) - All family group partnerships except Western Isles performed worse than the Scottish average. - Dundee performed 3rd best in the family group, however worse than the Scottish average. National Indicator 3: Percentage of adults supported at home who agree that they had a say in how their help, care or support was provided. (Scotland) - 5 of the 8 family group partnerships performed the same or better than the Scottish average. - Dundee’s performance was the 3rd poorest in the family group and poorer than the Scottish average. National Indicator 4: Percentage of adults supported at home who agree that their health and care services seemed to be well co-ordinated (Scotland) - 6 of the 8 family group partnerships performed better than the Scottish average. - Dundee’s performance was the 2nd poorest in the family group and poorer than the Scottish average. National Indicator 5: Percentage of adults receiving any care or support who rate it as excellent or good (Scotland) - 4 of the 8 (50%) family group partnerships performed the same as or better than the Scottish average. - Dundee’s performance was the poorest in the family group and poorer than the Scottish average. National Indicator 6: Percentage of people with positive experience of the care provided by their GP practice (Scotland) - 4 of the 8 (50%) family group partnerships performed the same as or better than the Scottish average. - Dundee performed 4th best in the family group and the same as the Scottish average. National Indicator 7: Percentage of adults supported at home who agree that their services and support had an impact in improving or maintaining their quality of life. (Scotland) - 4 of the 8 (50%) family group partnerships performed better than the Scottish average. - Dundee’s performance was the 2nd poorest in the family group and poorer than the Scottish average. National Indicator 8: Percentage of carers who feel supported to continue in their caring role (Scotland) - 6 of the 8 (75%) family group partnerships performed better than the Scottish average. - Dundee’s performance was the 3rd poorest in the family group although it was slightly better than the Scottish average. National Indicator 8: Percentage of carers who feel supported to continue in their caring role by year - National Indicator 8 is the only one of the indicator set that can be analysed longitudinally. - Every HSCP in the Family Group, including Dundee saw a decrease in the % of carers who felt supported to continue in their caring role from 2015-16 to 2019-20. - This is the same trend for the Scottish average. - Dundee maintained the same position in the family group between 2017-18 and 2019-20 at 3rd poorest in the family group. This is a deterioration from 2015-16 when Dundee was joint 4th poorest / best in the family group. National Indicator 9: Percentage of adults supported at home who agree they felt safe (Scotland) - 4 of the 8 (50%) family group partnerships performed better than the Scottish average. - Dundee’s performance was the 4th poorest in the family group and slightly poorer than the Scottish average. 1.0 PURPOSE OF REPORT 1.1 The purpose of this report is to provide the Performance and Audit Committee with an update on the progress of the actions set out in the Governance Action Plan. 2.0 RECOMMENDATIONS It is recommended that the Performance and Audit Committee (PAC): 2.1 Notes the content of the report and the progress made in relation to the actions set out in the Governance Action Plan as outlined in Appendix 1 and supplemented in Appendices 2 and 3. 3.0 FINANCIAL IMPLICATIONS 3.1 None. 4.0 MAIN TEXT 4.1 The Governance Action Plan was presented and approved at the PAC meeting of the 25th March 2019 (Article VIII of the minute of the meeting refers) in response to a recommendation within Dundee Integration Joint Board’s Annual Internal Audit Report 2017/18. This action plan enables the PAC to regularly monitor progress in implementing actions and understand the consequences of any non-achievement or slippage in strengthening its overall governance arrangements. The PAC remitted the Chief Finance Officer to present an update progress report to each PAC meeting. This action plan has also been added to in order to reflect a range of actions arising from the recent Annual Internal and External Audit reports which formed part of the Annual Accounts and annual governance process for Dundee Integration Joint Board. The progress of the actions considered previously in the Governance Action Plan update is noted in Appendix 1. 4.2 The action plan from the External Audit Report for 2020-21 has been shown as Appendix 2 4.3 The individual actions highlighted in the Internal Audit Review as having been omitted from the Governance Action Plan around the Transformation Programme has been shown as Appendix 3. It should be noted however that the Transformation Delivery Group has been stood down following a review of its effectiveness and arrangements for the development, implementation and monitoring of service transformation are now remitted to the Strategic Planning Advisory Group which reconvened during 2020/21. Therefore some of these actions are no longer relevant. 5.0 POLICY IMPLICATIONS 5.1 This report has been screened for any policy implications in respect of Equality Impact Assessment and Risk Management. There are no major issues. 6.0 RISK ASSESSMENT 6.1 This report has not been subject to a risk assessment as it relates to the development of an action plan in line with the findings of the Annual Internal Audit Report. 7.0 CONSULTATIONS 7.1 The Chief Officer, Chief Internal Auditor and the Clerk were consulted in the preparation of this report. 8.0 BACKGROUND PAPERS 8.1 None. Dave Berry Chief Finance Officer DATE: 03 February 2021 \| Performance and Audit Committee Report \| Audit Recommendation \| Agreed Action \| Original Action By / Date \| Red: Not Started \| Amber: In Progress \| Green: Complete \| Remedial Action/Comments \| Revised Target Completion Date \| \|----------------------------------------\|----------------------\|---------------\|--------------------------\|-----------------\|-------------------\|-----------------\|--------------------------\|-----------------------------\| \| Audit Scotland Annual Audit Report 2018/19 (PAC 34-2019) 24th Sept 2019 \| Arrangements should be implemented to provide assurance to the Chief Officer and the Board that the IJB that services are delivering Best Value. \| Further learning from other IJB’s reporting with regards to Best Value to be gained and considered for reflection in the 2019/20 Annual Performance Report. \| Chief Finance Officer June 2020 \| GREEN \| \| \| \| \| \| Internal Audit Review – Information Governance (IG) & Technology as Enablers (PAC 24-2020) 22nd Sept 2020 \| DHSCP should identify representation to the NHST Information Governance Cyber Security Committee \| Identify appropriate representation to the NHST IG Cyber Security Committee \| DHSCP Chief Officer 31/03/2020 \| GREEN \| \| \| \| \| \| Internal Audit Review – Information Governance (IG) & Technology as Enablers \| We strongly recommend that the pace of getting to an agreed position is increased. A Data / Information Sharing Agreement would provide the basis for \| NHS Tayside’s Head of Information Governance and Cyber Assurance/Data Protection Officer to work with DCC’s Information Governance Manager to agree, disseminate and gain approval for a Data Sharing Agreement. The Data \| NHS Tayside’s Head of Information Governance and Cyber Assurance/Data Protection Officer/ DCC’s Information Governance Manager \| GREEN \| \| \| \| \| \| Performance and Audit Committee Report \| Audit Recommendation \| Agreed Action \| Original Action By / Date \| Red: Not Started \| Amber: In Progress \| Green: Complete \| Remedial Action/Comments \| Revised Target Completion Date \| \|----------------------------------------\|----------------------\|---------------\|---------------------------\|-----------------\|-------------------\|-----------------\|--------------------------\|-------------------------------\| \| (PAC 24-2020) 22nd Sept 2020 \| determining appropriate access to systems and as a matter of urgency requires to be agreed and disseminated as appropriate. \| Sharing Agreement will not cover specific systems. The Data Sharing Agreement should be considered by the Systems Application Strategy and Sharing Group which should develop policies and procedures for governing access to specific systems. \| 31/03/2020 \| \| \| \| \| \| \| Internal Audit Review – Information Governance (IG) & Technology as Enablers (PAC 24-2020) 22nd Sept 2020 \| Given the need for NHST to engage with its partners across all 3 partnerships, it may be useful to establish a Tayside wide forum for this. In the meantime, where required, the possibility of interfaces sharing information between systems should be explored. Key corporate support services to be provided to DH&SCP by DCC and NHS Tayside has yet to be agreed. \| Dundee HSCP’s MOSAIC Project / IT Board has been focussed on developing and implementing the MOSAIC case recording system since the inception of the HSCP. As the main system features have now been implemented the focus of this group will now move to identifying, prioritising and planning the integrated IT needs of the HSCP through the development of an IT strategy. IT leads from both NHST and DCC are invited members to this Board. The Board will provide the strategic direction with the WPE providing the technical response. \| Chief Finance Officer DIJB 30 June 2020 \| \| \| \| \| \| \| Performance and Audit Committee Report \| Audit Recommendation \| Agreed Action \| Original Action By / Date \| Remedial Action/Comments \| Revised Target Completion Date \| \|----------------------------------------\|----------------------\|--------------\|--------------------------\|--------------------------\|-----------------------------\| \| Options should be explored in the context of the Improvement action plan developed in response to the MSG report and self-assessment. \| Frequency of meetings of the Workplace Enablement (WPE) group will be increased to quarterly. A Bi-Yearly meeting will be established which will include Angus and PKC representation. It was agreed that the remit of the WPE Group was to remain a technical enablement forum. The DHSCP IT Board will set out the direction including the key issues highlighted in the MSG report. \| NHST E-Health Service Delivery Manager, DCC IT Service Manager 30 June 2020 \| GREEN \| \| \| Internal Audit Review – Information Governance (IG) & Technology as Enablers (PAC 24-2020) 22nd Sept 2020 \| DH&SCP should request that NHST review and update The NHS Systems Access Policy to ensure any issues encountered in the case of DH&SCP staff are covered as well as address any other findings of this report. \| This policy is currently under review and will be submitted to the NHS Tayside Information Governance Committee in January 2020. If agreed this will then be submitted to the Audit and Risk Committee for final approval. \| NHS Tayside’s Head of Information Governance and Cyber Assurance/Data Protection Officer 31 March 2020 \| GREEN \| \| \| Performance and Audit Committee Report \| Audit Recommendation \| Agreed Action \| Original Action By / Date \| Remedial Action/Comments \| Revised Target Completion Date \| \|----------------------------------------\|----------------------\|---------------\|--------------------------\|--------------------------\|-------------------------------\| \| Internal Audit Review – Information Governance (IG) & Technology as Enablers (PAC 24-2020) 22nd Sept 2020 \| Agreement should be reached through the Workplace Enablement Group (WEG), with DJB management to ensure that the process that HSCP staff follow to request access to partner’s systems, operates effectively and that the required support is provided by the partners. \| This recommendation is already in progress. Workflows are required to be tested around off boarding of staff. \| NHST E-Health Service Delivery Manager, DCC IT Service Manager 31 March 2020 \| GREEN \| \| \| Internal Audit Review – Information Governance (IG) & Technology as Enablers (PAC 24-2020) 22nd Sept 2020 \| The role of this group should be reviewed with terms of reference. The group should have appropriate membership and be supported by both senior leadership commitment and clear escalation routes within the wider structures of DH&SCP, DCC and NHST. \| Terms of Reference for the Workplace Enablement Group to be drawn up and agreed at the next meeting at the end of January 2020. \| NHST E-Health Service Delivery Manager, DCC IT Service Manager 31 January 2020 \| GREEN \| \| Narrative shown in Italics denotes updated position from previous plan. Completed actions have been moved to the top of the plan for ease of use. \| Performance and Audit Committee Report \| Audit Recommendation \| Agreed Action \| Original Action By / Date \| Remedial Action/Comments \| Revised Target Completion Date \| \|----------------------------------------\|----------------------\|--------------\|--------------------------\|--------------------------\|-----------------------------\| \| Audit Scotland Annual Audit Report 2018/19 (PAC 34-2019) 24th Sept 2019 \| The IJB should: • review its processes for minute taking. \| Further development of the IJB and PAC minutes and papers to ensure full transparency and accurate recording of the discussions, questions asked and assurances provided. \| Chief Officer/ CFO/ Clerk to the Board September 2019 \| GREEN \| \| \| Dundee Integration Joint Board Clinical, Care and Professional Governance Internal Audit Review (PAC9-2018) 13th February 2018 \| A review should be undertaken to establish or update the remits of the PAC, R2 and Forum in relation to clinical and care governance. The remits should set out reporting lines and be translated into annual work plans for each group. This should ensure reports, both for the purpose of assurance \| Undertake review as outlined in the Audit Recommendations, setting out the remits of the PAC, R2 and Forum, and the reporting lines between all three. This process should also be followed for the Mental Health Governance Group to ensure appropriate lines of communication into the DHSCP governance processes. \| Lead Allied Health Professional (Forum) Clinical Director (R2) Chief Finance Officer (PAC) Associate Nurse Director - Mental Health and Learning Disabilities \| AMBER \| Review of the CCPG forum and the CCPG Group has led to the development of primary governance groups under each locality manager. Each Primary Governance Group is to report directly into the CCPG Group. Terms of reference are in development for the primary governance groups, which link directly through CCPG Group and Clinical Quality Forum ensuring assurance process from service level to CQF. \| March 2021 \| \| Performance and Audit Committee Report \| Audit Recommendation \| Agreed Action \| Original Action By / Date \| Red: Not Started \| Amber: In Progress \| Green: Complete \| Remedial Action/Comments \| Revised Target Completion Date \| \|----------------------------------------\|----------------------\|--------------\|--------------------------\|-----------------\|-------------------\|-----------------\|--------------------------\|-------------------------------\| \| as well as for implementation or delivery, go to the most appropriate group. \| \| \| \| \| \| \| \| \| \| Dundee Integration Joint Board Clinical, Care and Professional Governance Internal Audit Review (PAC9-2018) 13th February 2018 \| In addition to the 6 domains of clinical and care governance across delegated services, this review of remits needs to consider: - Hosted services - Information Governance - Care Commission reports - Risk \| Clarify and agree datasets and information to be presented at each group and associated timescales to ensure coordination of governance process. \| Lead Allied Health Professional / Head of Service, Health and Community Care 30 June 2018 \| AMBER \| \| \| CCPG Forum will continue to operate as an avenue for service managers to share good practice and have dedicated space to discuss challenges across the Partnership. \| December 2019 December 2020 \| \| Performance and Audit Committee Report \| Audit Recommendation \| Agreed Action \| Original Action By / Date \| Red: Not Started \| Amber: In Progress \| Green: Complete \| Remedial Action/Comments \| Revised Target Completion Date \| \|----------------------------------------\|----------------------\|--------------\|--------------------------\|-----------------\|-------------------\|-----------------\|--------------------------\|-------------------------------\| \| Dundee Integration Joint Board Clinical, Care and Professional Governance Internal Audit Review (PAC9-2018) 13th February 2018 \| It is recommended that any new arrangements be considered and approved by the IJB or a nominated Committee/group. \| The IJB will formally request that the Chair of the R1 Group advise the IJB of performance of R1 and any new arrangements to be implemented. Chief Officer of DJB to clarify reporting arrangements between R1 and IJB. Regular representation at the R1 and CQF will be provided from the R2 Group. \| Chief Officer Lead Allied Health Professional / Head of Service, Health and Community Care 31 July 2018 (To allow time for R1 meetings to run). \| AMBER \| Working group established at Tayside level which will support and clarify reporting arrangements. A regular report is provided to the CQF and the Head of Service and/or Lead AHP attend to speak to the report at each meeting. \| October 2019 March 2021 \| \| Dundee Integration Joint Board Clinical, Care and Professional Governance Internal Audit Review \| Work undertaken to map out the assurance routes for the key domains should be further augmented by a mapping to the functions set out in the Appendix to the Integration scheme delegated functions will be mapped to ensure forum membership reflects the breadth of delegated functions. Service reports and performance data will reflect the breadth of the delegated \| Lead Allied Health Professional / Head of Service, Health and Community Care 30 April 2018 \| AMBER \| Programme reporting covering all services will all be completed by June 2019. Schedule of services confirmed and membership extended to ensure all areas are \| March 2021 \| \| Performance and Audit Committee Report \| Audit Recommendation \| Agreed Action \| Original Action By / Date \| Red: Not Started \| Amber: In Progress \| Green: Complete \| Remedial Action/Comments \| Revised Target Completion Date \| \|----------------------------------------\|----------------------\|--------------\|---------------------------\|-----------------\|-------------------\|-----------------\|--------------------------\|-------------------------------\| \| (PAC9-2018) 13th February 2018 \| Integration Scheme, setting out all delegated functions, with priority given to the areas of highest importance/risk. \| functions ensuring that reports to the IJB also reflect the breadth of the delegated functions. \| \| \| \| \| considered by the R2 group. The development of the Primary Governance Groups will ensure comprehensive reporting across all aspects of the Partnership. There are a number of anomalies with some teams sitting outwith Locality Manager structures and these teams will report directly to CCPG Group. Further work to identify core and service datasets is ongoing, locally for DHSCP and across Tayside via the Getting it Right for Everyone Review Group. This work is nearing completion. \| \| \| Performance and Audit Committee Report \| Audit Recommendation \| Agreed Action \| Original Action By / Date \| Remedial Action/Comments \| Revised Target Completion Date \| \|----------------------------------------\|----------------------\|---------------\|--------------------------\|--------------------------\|-----------------------------\| \| DIJB Clinical, Care and Professional Governance Internal Audit Review (PAC9-2018) 13th Feb 2018 \| Agreed levels of reporting should be reviewed against the governance principles appended to this report. \| Further work will be done with the reporting templates to refine areas of common risk across the HSCP to support identification and mitigation of identified risks. \| Lead Allied Health Professional / Head of Service, Health and Community Care 30 June 2018 \| AMBER \| Work continues to progress the reporting arrangements but not yet complete – revised timescale of end of December 2019. \| March 2021 \| \| Dundee Integration Joint Board Workforce Internal Audit Review (PAC8-2018) 27th March 2018 \| Work to fully implement the actions in the Workforce and Organisational Development Strategy should continue with regular reporting on progress towards implementation being submitted to the IJB. In addition, Locality Managers should strive towards ensuring that the \| The DH&SCP management team fully recognises the need to ensure the vision and objectives of the Workforce and Organisational Development Strategy become embedded within the partnership and acknowledged that this is a fundamental element of the partnership’s continued development. Implementing in full the actions in the Strategy has been identified by the operational management team as one of the key actions to be delivered over the next 6 months. \| Head of Health and Community Care / Head of Finance and Strategic Planning August 2018 \| RED \| Review of Workforce and Organisational development strategy as companion document to the review of Strategic Plan. \| March 2021 \| \| Performance and Audit Committee Report \| Audit Recommendation \| Agreed Action \| Original Action By / Date \| Red: Not Started \| Amber: In Progress \| Green: Complete \| Remedial Action/Comments \| Revised Target Completion Date \| \|----------------------------------------\|----------------------\|---------------\|---------------------------\|-----------------\|-------------------\|-----------------\|--------------------------\|-------------------------------\| \| DH&SCP culture becomes fully embedded. \| \| \| \| \| \| \| \| \| \| Engaging staff in developing and maintaining the partnership culture as well as sharing and embedding the guiding principles should assist with this. \| \| \| \| \| \| \| \| \| \| Consideration should be given to developing a formal Service Level Agreement (SLA) detailing all key corporate support services to be provided to the DH&SCP by Dundee City Council and NHS Tayside. \| \| \| \| \| \| \| \| \| \| The DHSCP Management Team continues to monitor the level of support being provided to the IJB from NHS Tayside and Dundee City Council on an informal basis and responds to the organisations in relation to shortfalls in service provision accordingly. \| \| \| \| \| \| \| \| \| \| Given the current stage in the partnership’s development, with greater knowledge and awareness of what the \| \| \| \| \| \| \| \| \| The service provided should be regularly reviewed along with the SLA to ensure that the defined support is being provided and the SLA continues to be appropriate. In the absence of a SLA, specific details regarding the types and level of support expected should be clearly documented and formally agreed by senior management at the DH&SCP, Dundee City Council and NHS Tayside. Regular reports on the support service requirements should be provided to the IJB. \| Performance and Audit Committee Report \| Audit Recommendation \| Agreed Action \| Original Action By / Date \| Red: Not Started \| Amber: In Progress \| Green: Complete \| Remedial Action/Comments \| Revised Target Completion Date \| \|----------------------------------------\|----------------------\|---------------\|---------------------------\|-----------------\|-------------------\|-----------------\|--------------------------\|-------------------------------\| \| The service provided should be regularly reviewed along with the SLA to ensure that the defined support is being provided and the SLA continues to be appropriate. In the absence of a SLA, specific details regarding the types and level of support expected should be clearly documented and formally agreed by senior management at the DH&SCP, Dundee City Council and NHS Tayside. Regular reports on the support service requirements should be provided to the IJB. \| partnership needs to support its business, the service will progress with its partners, a more formal statement of the expected level of support which can subsequently be monitored and report to the IJB. \| \| \| \| \| \| \| \| \| Performance and Audit Committee Report \| Audit Recommendation \| Agreed Action \| Original Action By / Date \| Red: Not Started \| Remedial Action/Comments \| Revised Target Completion Date \| \|----------------------------------------\|----------------------\|--------------\|--------------------------\|-----------------\|--------------------------\|-------------------------------\| \| Dundee Integration Joint Board Workforce Internal Audit Review (PAC8-2018) 27th March 2018 \| Future workforce plans for DH&SCP should include plans for all areas of delegated responsibility, tailored to deliver the relevant elements of the Strategic Plan. Plans should take account of demand for and availability of staff to maximise the use of resources within the DH&SCP. \| As DH&SCP continues to evolve, with the continued development of integrated locality-based services and redesign of services, the shape and mix of the workforce required to deliver on the IJB’s strategic objectives is becoming clearer and will be reflected in future integrated workforce plans. While acknowledging that further national guidance is awaited on this matter, the first integrated workforce plan will be developed over the next 6 months. \| \| \| \| \| \| Action Plan in Response to the Services for Older People (Edinburgh) Inspection Report \| Action Plan was requested by the PAC in relation to lessons learned from the Edinburgh inspection and what improvements would \| A wide range of actions are reflected in this detailed action plan therefore it is not feasible to reflect in this plan – a separate update report will be provided at the May 2019 PAC. \| Various with latest timescales for completed action identified as March 2019. \| RED \| Report to now be presented to the March 2020 PAC meeting Work on collating and rationalising improvement plans and action plans is underway in recognition that a \| March 2021 \| \| Performance and Audit Committee Report \| Audit Recommendation \| Agreed Action \| Original Action By / Date \| Red: Not Started \| Amber: In Progress \| Green: Complete \| Remedial Action/Comments \| Revised Target Completion Date \| \|----------------------------------------\|----------------------\|---------------\|--------------------------\|-----------------\|-------------------\|-----------------\|--------------------------\|-------------------------------\| \| (PAC 29-2018) 29th May 2018 \| be required in Dundee. \| \| \| \| \| \| number of issues have not been actioned. \| \| \| Risk Management Action Plan \| Action Plan was required to respond to the findings of the Risk Maturity Assessment presented to the PAC on the 25th September 2018. \| A wide range of actions are reflected in this detailed action plan therefore it is not feasible to reflect in this plan. A separate update report will be provided to the September 2019 PAC meeting as agreed. \| Chief Finance Officer September 2019 \| AMBER \| Report DIJB37-2020 presented to the August 2020 IJB Discussions held between risk management functions of Dundee City Council and NHS Tayside to agree way forward for actions. Follow up meetings with partners across Tayside scheduled to enable actions to be completed A separate report to the PAC has been presented September 2020 \| \| \| 2017/18 Annual Internal Audit Report – Action Plan Update (PAC7-2019) \| Clarification of deputising arrangements for the Chief Officer to be presented to the IJB. \| Agreement to be reached between Chief Executives of Dundee City Council and NHS Tayside. \| Revised February 2019. \| RED \| Discussion to be held between Chief Executives \| December 2020 \| \| Performance and Audit Committee Report \| Audit Recommendation \| Agreed Action \| Original Action By / Date \| Remedial Action/Comments \| Revised Target Completion Date \| \|----------------------------------------\|----------------------\|--------------\|--------------------------\|--------------------------\|-----------------------------\| \| 12th February 2019 \| Consideration should be given to providing the IJB with reporting on workforce issues including the Workforce and Organisational Development Strategy as well as the partnership forum. \| Complete review of Workforce and Organisational Development Strategy and provide update to IJB. Consider frequency and content of update report of activities of Staff Partnership Forum. \| Revised April 2019 \| AMBER \| Updated Workforce and Organisational Development Plans, compatible with the revised Strategic and Commissioning Plan due to be presented to the IJB in February 2020. \| March 2021 \| \| 2017/18 Annual Internal Audit Report – Action Plan Update (PAC7-2019) 12th February 2019 \| Development of Large Hospital Set Aside arrangements in conjunction with the Scottish Government, NHS Tayside and Angus and Perth and Kinross Integration Joint Boards. \| Work progressing with NHS Tayside in association with the 3 Tayside IJB Chief Finance Officers and Scottish Government to conclude the methodology or determining and monitoring the Large Hospital Set Aside to inform commissioning decisions as set out within the legislation. \| Revised - March 2019 \| AMBER \| Value of Large Hospital Set Aside agreed for inclusion in 2020/21 budget including recognition of improvements made by Dundee HSCP in reducing emergency bed days resulting in the release of £1m of funding from NHS Tayside to Dundee IJB’s \| March 2021 \| \| Performance and Audit Committee Report \| Audit Recommendation \| Agreed Action \| Original Action By / Date \| Red: Not Started \| Amber: In Progress \| Green: Complete \| Remedial Action/Comments \| Revised Target Completion Date \| \|----------------------------------------\|----------------------\|--------------\|--------------------------\|-----------------\|-------------------\|-----------------\|--------------------------\|-------------------------------\| \| 2017/18 Annual Internal Audit Report – Action Plan Update (PAC7-2019) 12th February 2019 \| Development of improved Hosted Services arrangements around risk and performance management for hosted services. \| Current hosted services arrangements subject to discussion across the 3 Tayside Chief Officers and Chief Finance Officers. Proposal to be brought forward to IJB and PAC before the end of the financial year. \| Revised June 2019 \| AMBER \| Discussions ongoing with neighbouring IJB’s re responsibilities around hosting arrangements. \| March 2021 \| \| 2017/18 Annual Internal Audit Report – Action Plan Update (PAC7-2019) 12th February 2019 \| Further develop the Integration Joint Board’s local Code of Governance. \| To be developed as suggested. \| Revised April 2019 \| AMBER \| Clerk to the Board developing arrangements in conjunction with Chief Finance Officer. Actions postponed as a result of pandemic working restrictions \| December 2020 \| \| 2017/18 Annual Internal Audit \| Further develop performance report information into a \| To be taken forward by the Strategy and Performance Team, aligned with the review \| Revised July 2019 \| AMBER \| Will form part of revised performance monitoring reporting into 2019/20 \| \| \| Performance and Audit Committee Report \| Audit Recommendation \| Agreed Action \| Original Action By / Date \| Remedial Action/Comments \| Revised Target Completion Date \| \|----------------------------------------\|----------------------\|--------------\|--------------------------\|--------------------------\|-----------------------------\| \| Report – Action Plan Update (PAC7-2019) 12th February 2019 \| delivery plan framework to ensure IJB fulfils its remit in delivering the direction of travel within the Strategic Commissioning Plan. \| of the Strategic and Commissioning Plan. \| \| following approval of revised Strategic and Commissioning Plan. Work has started on performance against 4 high level indicators in plan. Needs further development in line with any revisions to the SPG structure. \| March 2021 \| \| Audit Scotland Annual Audit Report 2018/19 (PAC 34-2019) 24th Sept 2019 \| A long-term financial strategy (5 years or more) supported by clear and detailed financial plans (3 years or more) should be prepared. \| Build on the three-year financial framework developed during 18/19, which sets out the estimated resources and anticipated increase in expenditure from rising demand and costs of providing services. Continue to work with partner bodies to align longer term financial planning processes and the development of long-term financial strategy on how to close the gap between funding and service provision. \| Chief Finance Officer March 2020 \| AMBER \| Work continues to develop the longer-term financial framework as part of the budget setting process. \| December 2020 \| \| Performance and Audit Committee Report \| Audit Recommendation \| Agreed Action \| Original Action By / Date \| Red: Not Started \| Amber: In Progress \| Green: Complete \| Remedial Action/Comments \| Revised Target Completion Date \| \|----------------------------------------\|----------------------\|--------------\|--------------------------\|-----------------\|-------------------\|-----------------\|--------------------------\|-------------------------------\| \| Audit Scotland Annual Audit Report 2018/19 (PAC 34-2019) 24th Sept 2019 \| The IJB should liaise with NHS Tayside and consider the arrangements for regular attendance by a member appointed as the registered medical practitioner providing primary care. \| NHS Tayside Board is responsible for appointing the role of registered medical practitioner providing primary care to the IJB. This issue has been noted by the IJB and the Clerk to the Board will formally write to the Chair of NHS Tayside Board on this issue. \| Clerk to the Board December 2019 \| AMBER \| Clerk has written to NHS Tayside and awaits a formal response. 23-01-20 NHS have not confirmed a replacement for Registered Medical Practitioner as yet. (NHS have also to confirm replacement for one voting member on Dundee IJB. \| November 2020 \| \| Audit Scotland Annual Audit Report 2018/19 (PAC 34-2019) 24th Sept 2019 \| The IJB should liaise with its partner organisations to ensure an agreed budget is approved prior to the start of the year. \| An indicative NHS Budget was provided at the IJB budget meeting of 30th March 2019. The final budget from NHS Tayside was consistent with the indicative budget. Continue to work with partner bodies to align budget setting processes as far as practicable. \| Chief Finance Officer March 2020 \| AMBER \| Continues to be discussed at budget meetings with the parties. Timescale impacted by Covid-19 response for 2020/21 budget \| March 2021 \| \| Audit Scotland Annual Audit Report 2018/19 (PAC 34-2019) \| The IJB should seek to combine financial and performance reporting to ensure that members have clear sight of the \| Continue to explore options on how to combine financial and performance reporting in a format which provide useful information to users. \| Chief Finance Officer March 2020 \| AMBER \| Progressing slower than as planned as a result of Covid-19 required changes to working \| March 2021 \| \| Performance and Audit Committee Report \| Audit Recommendation \| Agreed Action \| Original Action By / Date \| Red: Not Started \| Amber: In Progress \| Green: Complete \| Remedial Action/Comments \| Revised Target Completion Date \| \|----------------------------------------\|----------------------\|--------------\|---------------------------\|-----------------\|-------------------\|-----------------\|--------------------------\|-------------------------------\| \| 24th Sept 2019 \| impact of variances against budget in terms of service performance. \| \| \| \| \| \| \| \| \| Audit Scotland Annual Audit Report 2018/19 (PAC 34-2019) 24th Sept 2019 \| The IJB should review its reserves to ensure they are adequate \| Reserves can only be accumulated through year end surpluses of funding. Ensure robust budgeting, monitoring of identified savings and financial monitoring processes in place to identify opportunities to enhance reserves position. \| Chief Finance Officer March 2020 \| AMBER \| Levels of uncommitted reserves are anticipated to reduce in response to the anticipated overspend. Reserves have been reviewed and are inadequate in terms of the Reserves Policy. IJB unlikely to be in a position of increasing reserves given current budget pressures \| March 2021 \| \| 2019/20 \| Implementation of and reporting on all outstanding recommendations arising from the Ministerial Steering Group report on Health & social care Integration \| \| Chief officer/ Chief Finance Officer \| AMBER \| \| \| March 2021 \| \| Performance and Audit Committee Report \| Audit Recommendation \| Agreed Action \| Original Action By / Date \| Remedial Action/Comments \| Revised Target Completion Date \| \|----------------------------------------\|----------------------\|--------------\|--------------------------\|--------------------------\|-------------------------------\| \| 2019/20 \| Further development of governance arrangements considering agreed governance principles and updated advice from the Scottish Government Health & Social care Division \| Chief officer/Chief Finance Officer \| AMBER \| December 2020 \| \| Internal Audit Review – Information Governance (IG) & Technology as Enablers (PAC 24-2020) 22nd Sept 2020 \| Clear escalation routes should be agreed between DJB and its partners for Information Governance and e-Health (IT) \| Establish a governance route \| NHS Tayside Head of Information Governance and Cyber Assurance/Data Protection Officer 31/03/2020 \| AMBER \| March 2021 \| \| Internal Audit Review – Information Governance (IG) & Technology as Enablers \| IT services within the Council and NHS Tayside, along with representatives from DH&SCP, should meet regularly when key IT development \| Strategic discussions will be held between all partners in conjunction with Scottish Government to help facilitate an operational solution through the provision of available funding / resources. \| Executive Director of Corporate Services DCC Director of Digital Technology NHST \| AMBER \| March 2021 \| \| Performance and Audit Committee Report \| Audit Recommendation \| Agreed Action \| Original Action By / Date \| Remedial Action/Comments \| Revised Target Completion Date \| \|----------------------------------------\|----------------------\|--------------\|--------------------------\|--------------------------\|-----------------------------\| \| (PAC 24-2020) 22nd Sept 2020 \| decisions are being taken and any IT problems that arise due to the unique circumstances of the DH&SCP can be discussed and resolved timeously. \| Chief Finance Officer, DJB 30 June 2020 \| \| \| \| \| Internal Audit Review – Information Governance (IG) & Technology as Enablers (PAC 24-2020) 22nd Sept 2020 \| Future meetings of the group considering IT developments should also include discussion on an IT helpdesk agreement for DH&SCP staff as well as agreement on the processes for sharing information on DH&SCP staff active directory users. It may be useful to establish a Tayside wide forum for this. \| A Bi-Annual Meeting to be arranged. \| NHST E-Health Service Delivery Manager 30/11/2020 \| AMBER \| \| \| Internal Audit Review – Governance Mapping \| The DHSCP management team should review attendance at groups \| The evolving complexity of integrated arrangements are such that the capacity of the management team of the Health and Social Care \| Chief Officer, Dundee HSCP 31/03/2021 \| RED \| \| \| Performance and Audit Committee Report \| Audit Recommendation \| Agreed Action \| Original Action By / Date \| Red: Not Started \| Remedial Action/Comments \| Revised Target Completion Date \| \|----------------------------------------\|----------------------\|--------------\|--------------------------\|-----------------\|--------------------------\|-----------------------------\| \| (PAC28-2020) 22nd Sept 2020 \| based on agreed principles. Equally, attendance at partner groups should be based on a consideration of whether this is necessary to provide assurance to allow the partner body to fulfil their agreed responsibilities in line with their accountabilities. \| Partnership in its widest sense is insufficient to effectively contribute to all the demands placed on it through partner groups in particular. The development of a range of principles as recommended will provide a better structured approach and through the shared understanding of the partners of priorities, provide the necessary assurances to them. This will be actioned as recommended. \| \| \| \| \| Internal Audit Review – Governance Mapping (PAC28-2020) 22nd Sept 2020 \| A best practice guidance document is developed to ensure the operation of all groups conforms to the various principles detailed in the report. \| A best practice guidance document would be beneficial and will be developed as recommended \| Head of Finance & Strategic Planning, Dundee HSCP 31/03/2021 \| RED \| \| \| Internal Audit Review – \| A review should be undertaken to update the strategic \| The risk and associated controls will be reviewed as recommended \| Head of Finance and Strategic Planning, Dundee HSCP \| RED \| \| \| Performance and Audit Committee Report \| Audit Recommendation \| Agreed Action \| Original Action By / Date \| Red: Not Started \| Amber: In Progress \| Green: Complete \| Remedial Action/Comments \| Revised Target Completion Date \| \|----------------------------------------\|----------------------\|--------------\|---------------------------\|-----------------\|-------------------\|-----------------\|--------------------------\|-------------------------------\| \| Governance Mapping (PAC28-2020) 22nd Sept 2020 \| risk in relation to Increased Bureaucracy. \| \| 31/03/2021 \| \| \| \| \| \| \| PAC 36-2020 Audit Scotland Annual Report And Integration Joint Board Annual Accounts 2019/20 24th Nov 2020 \| \| \| \| \| \| \| \| \| The abbreviations etc. in the governance action plan are as used in the various audit reports and vary slightly depending on the report author: \| Abbreviation \| Description \| \|--------------\|-------------\| \| The Board \| The Integration Joint Board \| \| DCC \| Dundee City Council \| \| DHSCP \| Dundee Health & Social Care partnership \| \| HSCP \| Health & Social Care Partnership \| \| IG \| Information Governance \| \| IJB \| Integration Joint Board \| \| IT \| Information Technology \| \| MOSAIC \| Name of the computerised case recording system used by DHSCP \| \| NHS \| National Health Service \| \| NHST \| National Health Service Tayside \| \| TDG \| Transformation Delivery Group \| ## Action plan 2019/20 \| No. \| Issue/risk \| Recommendation \| Agreed management action/timing \| Remedial Action/Comments \| Revised Target Completion Date \| \|-----\|------------\|----------------\|---------------------------------\|--------------------------\|-------------------------------\| \| 1 \| Medium to long term financial plans \| The 1-5-year financial plan should be progressed and presented to the Board to help demonstrate the longer term financial sustainability of planned IJB services. This is increasingly important as demand pressures increase and the IJB plans for service redesign over medium and longer time frames. Plans should include scenario planning in the Covid-19 environment. Paragraph 44 \| The development of a meaningful medium to longer term financial plan has been impacted on by significant uncertainty around funding with delays in UK and Scottish Government finance settlements for both 2020/21 and 2021/22 and the impact of Covid19 in 2020/21 disrupting the planning process. A medium to long term financial plan will be developed and presented to the IJB as part of a suite of budget development reports for 2021/22 onwards. Responsible officer: Chief Finance Officer Agreed date: March 2021 \| Amber \| \| \| No. \| Issue/risk \| Recommendation \| Agreed management action/timing \| Remedial Action/Comments \| Revised Target Completion Date \| \|-----\|---------------------------------------------------------------------------\|--------------------------------------------------------------------------------\|------------------------------------------------------------------------------------------------\|--------------------------\|-------------------------------\| \| 2 \| Savings and transformation reporting* \| The position on the achievement of savings proposals and transformation should be clearly and regularly reported to members. The impact from Covid-19 and delivering pandemic remobilisation plans will also need to be considered. Paragraph 69 \| The IJB is provided with an overview of the risks of delivery associated with the savings programme as part of regular financial monitoring reports presented to the IJB. This will be enhanced during the year with a minimum of two specific savings and transformation reports outlining the progress made with implementation of service change initiatives. Responsible officer: Chief Finance Officer Agreed date: August 2021 \| Amber \| \| \| 3 \| Leadership and governance - support Plans to progress a programme of development and training opportunities for members, co-ordinated alongside those of Dundee City Council and NHS Tayside \| Work to embed a programme of development and training opportunities for Board members should be progressed. Paragraph 77 \| A programme of coordinated work which brings together the individual pieces of development and training opportunities already in existence and under new development opportunities under one \| Amber \| \| \| No. \| Issue/risk \| Recommendation \| Agreed management action/timing \| Remedial Action/Comments \| Revised Target Completion Date \| \|-----\|---------------------------------------------------------------------------\|--------------------------------------------------------------------------------\|------------------------------------------------------------------------------------------------\|--------------------------\|-------------------------------\| \| \| has not progressed to the extent planned. \| \| framework will be produced with the respective statutory partners. Responsible officer: Chief Officer Agreed date: June 2021 \| \| \| \| \| Risk \| There is a risk that leadership and governance arrangements are not effective if members are not sufficiently trained and supported. \| \| \| \| \| 4 \| Board composition - registered medical practitioner providing primary care \| The IJB should escalate to NHS Tayside again, that the IJB has not had professional input from a 'registered medical practitioner whose name is included in the list of primary medical services performers' for a number of years and request NHS Tayside appoint to this non-voting role. Paragraph 79 \| Both the Clerk to the IJB and the Chair of the IJB have written to NHS Tayside to request a nomination to this role. The IJB will continue to make this request however it is the role of NHS Tayside to provide an appropriate nomination. Responsible officer: Clerk to the Board / Chief Officer Agreed date: December 2020 \| Amber \| \| \| No. \| Issue/risk \| Recommendation \| Agreed management action/timing \| Remedial Action/Comments \| Revised Target Completion Date \| \|-----\|------------\|----------------\|---------------------------------\|--------------------------\|-------------------------------\| \| 5 \| Improvement agenda - action plan progress \| From its inception the IJB has experienced significant delays in progressing its improvement and governance actions. This issue has been escalated to the Board from the PAC. \| The Governance Action Plan should be developed to include all improvement action plans. Actions should be reviewed for their continued relevance and priority. The Board and PAC should continue to be updated on implementation progress across all governance and improvement areas. Paragraph 91 \| All improvement actions now included within the Governance Action Plan which is reported to the PAC at each meeting. Assurance to the IJB from the PAC will be provided on satisfactory progress being made in implementing the outstanding recommended actions. Responsible officer: Chief Finance Officer Agreed date: December 2020 \| Green \| \| 6 \| Risk management \| Progress has been slow to implement the recommendations from the internal risk maturity audit, reported in September 2018. Recently a Tayside Risk Management Group chaired by the CFO has been established to promote \| The Board and PAC are updated on progress in delivering against the risk maturity action plan. Paragraph 98 \| As reported in the Governance Action Plan, progress is now being made with full implementation of the recommendations to be achieved by March 2021. \| Amber \| \| No. \| Issue/risk \| Recommendation \| Agreed management action/timing \| Remedial Action/Comments \| Revised Target Completion Date \| \|-----\|------------\|----------------\|---------------------------------\|--------------------------\|-----------------------------\| \| \| completion of the actions by December 2020. \| Supported by management, the delivery of internal audit plans should be kept under review to ensure the IJB receives appropriate and sufficient assurances on its governance arrangements and systems of its internal controls. Paragraph 105 \| Responsible officer: Chief Finance Officer Agreed date: March 2021 \| \| \| \| 7 \| Internal audit - programme \| The re-profiling of the 2020/21 internal audit plan reduces the risk of non-delivery of the plan and enables future plans to be achieved in line with the anticipated timescales, providing the IJB and PAC with the appropriate assurances. Progress of the internal audit plan will continue to be monitored through the internal audit progress report provided to each meeting of the PAC. \| \| Green \| \| \| No. \| Issue/risk \| Recommendation \| Agreed management action/timing \| Remedial Action/Comments \| Revised Target Completion Date \| \|-----\|------------\|----------------\|---------------------------------\|--------------------------\|-------------------------------\| \| \| \| \| Red: Not Started \| Amber: In Progress \| Green: Complete \| \| \| \| \| \| Responsible officer: Chief Finance Officer / Chief Internal Auditor \| Agreed date: December 2020 \| \| \| Follow up of prior year recommendations PY 1\ Financial accounting records\ The financial ledger had not been fully updated to reflect all accounting entries prior to the production of the annual accounts.\ Risk: Accounting records may not include all the transactions and balances to reflect a true and fair view of the IJB’s accounts.\ The financial ledger should be fully updated in 2019/20 prior to the approval of the annual accounts. Paragraph 17\ Complete\ The ledger was fully updated in 2019/20.\ Green PY 2\ Failure to comply with statutory regulations\ The Chief Officer was on leave until after 30 September 2019. As a result, the accounts were not signed, approved and\ The arrangements for the approval of the accounts should be reviewed to ensure that all signatories are available to sign the accounts immediately after they are approved by the Performance and Audit Committee. Paragraph 21\ Complete\ The CFO reviewed arrangements to ensure the availability of officers and members to ensure the\ Green \| No. \| Issue/risk \| Recommendation \| Agreed management action/timing \| Red: Not Started \| Amber: In Progress \| Green: Complete \| Remedial Action/Comments \| Revised Target Completion Date \| \|-----\|---------------------------------------------------------------------------\|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------\|---------------------------------\|------------------\|-------------------\|-----------------\|--------------------------\|-------------------------------\| \| \| authorised for issue until after the statutory date set out in the Local Authority Accounts (Scotland) Regulations 2014. \| requirements of the regulations as met. \| \| \| \| \| \| \| \| \| Risk: The IJB are not complying with statutory regulations. \| \| \| \| \| \| \| \| \| PY 3\| Medium to long term financial plans \| A long-term financial strategy (5 years or more) supported by clear and detailed financial plans (3 years or more) should be prepared. This is increasingly important as demand pressures increase, financial settlements continue to reduce and fundamental service redesign over a longer time frame becomes necessary. Plans should include scenario planning. Paragraph 41 \| In progress Carried forward to action 1 above. \| Carried forward to action 1 above \| \| \| \| \| \| \| The Board approved a Strategic and Commissioning Plan 2019-22 in March 2019, which projected funding shortfalls for the three year period. The IJB has yet to develop medium to long term financial plans to demonstrate how it will fund future funding gaps. \| \| \| \| \| \| \| \| \| \| Risk: The IJB may not be planning adequately over the medium to long term to manage or respond to significant financial risks. \| \| \| \| \| \| \| \| \| No. \| Issue/risk \| Recommendation \| Agreed management action/timing \| Red: Not Started \| Amber: In Progress \| Green: Complete \| Remedial Action/Comments \| Revised Target Completion Date \| \|-----\|---------------------------------------------------------------------------\|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------\|-----------------------------------------------------------------------------------------------\|-----------------\|-------------------\|-----------------\|--------------------------\|-------------------------------\| \| PY 4 \| Savings reporting The IJB reports changes to the risk profile of savings but does not report to members on the savings achieved and whether delivery is on track. Risk: Members may not be fully aware of the impact of not delivering savings. \| The position of the achievement of savings proposals and the impact on the transformation programme should be regularly reported to members. Paragraph 47 \| In progress Carried forward to action 2 above. \| Carried forward to action 2 above \| \| \| \| \| \| PY 5 \| EU withdrawal The risks entailed by EU withdrawal are not included in the IJB’s strategic risk register but continue to sit with the partner bodies. Risk: The IJB may not be adequately mitigating risks to its operation arising from EU withdrawal. \| The risks arising from EU withdrawal should be included in the IJB’s strategic risk register and, as commissioning authority, the IJB should seek to ensure, that satisfactory arrangements have been put in place by partner bodies to manage potential risks. Paragraph 53 \| Complete Strategic Risk Register presented to August 2020 Board included a risk on the impact of EU withdrawal. Note: the risk register noted that the impact of the Covid-19 response has meant the preparations for the EU withdrawal have been unable to be progressed. \| Green \| \| \| \| \| \| PY 6 \| Clinical, Care and Professional Governance Group Assurance Reports In September 2018, the Performance and Audit \| Chair’s Assurance Report from the Clinical, Care and Professional Governance Group should be presented to the Performance and Audit Committee on a regular basis. \| Complete A Chair’s Assurance Report from the Clinical, Care and Professional \| Green \| \| \| \| \| \| No. \| Issue/risk \| Recommendation \| Agreed management action/timing \| Remedial Action/Comments \| Revised Target Completion Date \| \|-----\|---------------------------------------------------------------------------\|----------------\|---------------------------------\|--------------------------\|-------------------------------\| \| \| Committee received its first Chair’s Assurance Report from the Clinical, Care and Professional Governance Group. No CCPG Assurance Reports were provided to the March 2019 or May 2019 Performance and Audit Committee meetings. Risk: The Board does not have complete and sufficient assurances on clinical care governance. \| Paragraph 59 \| Governance Group is now considered at each Performance and Audit Committee meeting. \| \| \| \| PY 7 \| Board attendance The registered medical practitioner providing primary care, a non-voting member of the IJB, has been unable to attend the majority of meetings in the last year. Risk: Appropriate professional care expertise may not be considered by the Board. \| The IJB should liaise with NHS Tayside and consider the arrangements for regular attendance by a member appointed as the registered medical practitioner providing primary care. Paragraph 60 \| Incomplete Carried forward to action 4 above. \| Carried forward to action 4 above \| \| No. \| Issue/risk \| Recommendation \| Agreed management action/timing \| Remedial Action/Comments \| Revised Target Completion Date \| \|-----\|---------------------------------------------------------------------------\|--------------------------------------------------------------------------------\|---------------------------------\|--------------------------\|-------------------------------\| \| \| \| Management should review the interaction with internal audit to ensure that all planned internal audit work is completed timeously. Paragraph 77 \| In progress Carried forward to action 7 above. \| Carried forward to action 7 above \| \| \| PY 8 \| Internal audit There continues to be slippage in reporting on internal audit work to the Performance and Audit Committee. Risk: Members may not be able to scrutinise key risk areas timeously if internal audit reports are delayed. \| The Governance Action Plan progress report should be further developed to include all improvement action plans. Paragraph 78 \| Incomplete Carried forward to action 5 above. \| Carried forward to action 5 above \| \| \| PY 9 \| Action plan progress report Since March 2019 a Governance Action Plan progress report has been presented to the Performance and Audit Committee. The report does not include all improvement action plans. Risk: The commitments set out in the IJB’s Strategic Commissioning Plan may not be delivered timeously if improvement actions are not delivered within the agreed timescales. \| \| \| \| \| \| Ref \| Audit Recommendations \| Actions Proposed \| Responsible Officer \| Timescales \| Remedial Action/Comments \| Revised Target Completion Date \| \|-----\|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------\|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------\|-------------------------------------------------------------------------------------\|-------------------\|----------------------------------------------------------------------------------------\|--------------------------------\| \| 1. \| To improve existing review and monitoring arrangements surrounding progress towards delivery and realisation of the DHSCP’s Transformation Programmes and individual projects contained within them, an overarching record comprising, as a minimum, the following key pieces of information should be introduced and maintained. When developing the overarching record, appropriate consideration should be given to the transformational change programmes in place within Dundee City Council and NHS Tayside. This record, which should be reviewed on a regular basis by key members of staff and groups, including the Transformation Delivery Group (TDG), should provide users with implementation status information at a glance. Transformation Programme, along with brief description. • List of each transformation \| The existing documentation supporting the Transformation Programme will be enhanced to ensure the areas suggested in the audit recommendation are included along with appropriate implementation status indicators. Performance monitoring will be supported through the use of the Pentana performance monitoring system. This will enable project leads and other stakeholders to track progress of implementation. \| Chief Finance Officer / Head of Health and Community Care Services \| 31st August 2019 \| Amber \| August 2021 \| \| 2. \| Given that the TDG aims to drive delivery and realisation of the Transformation Programme in general and the individual projects within it, it is vital that these meetings are not cancelled and that there is ongoing engagement at the meetings from all relevant individuals and groups. With that in mind, where standing members of the group are not available to attend a meeting, they should ensure that an appropriate substitute attends / makes decisions on their behalf. This requirement should be stipulated in the TDG Terms of Reference, which should be endorsed by the TDG prior to approval by the PAC. \| Review of governance meetings and interrelationships has been initiated to ensure the most effective governance routes for policy and decision making. This includes reviewing the clearance route for papers to be presented to the IJB and PAC, Clinical and Care Governance Forum, relationships between strategic planning groups, the ISPG and the subsequent oversight of transformation in line with the Strategic and Commissioning Plan. This will provide more clarity on responsibilities and is likely to result in a rationalisation of meeting structures with the strong possibility that the Transformation Delivery \| Dundee Health and Social Care Partnership Management Team \| 30th June 2019 \| Amber \| Now being considered by the Strategic Planning Advisory Group \| August 2021 \| \| \| \| \| \| \| \|---\|---\|---\|---\|---\| \| 2 contd \| In order to enhance existing governance arrangements, fulfil the Terms of Reference of the TDG and assist with prioritising resources, regular summary reports on the progress of the Transformation Programme should be prepared by the TDG and submitted to the Performance and Audit Committee for its review. The Terms of Reference of the PAC should be updated to reflect the requirement for the TDG to report to it. \| This recommendation will be considered as part of the review noted above. \| Dundee Health and Social Care Partnership Management Team \| 30th June 2019 \| Amber \| \| \| \| \| \| \| \| 3. \| Terms of Reference documents should be developed / reviewed for all groups that impact on the transformation and service redesign arrangements of the DH&SCP, including the Integrated Strategic Planning Group. These should clearly detail the roles, remits and governance arrangements of the group, who they are required to report to and under what circumstances. An overarching review of reporting requirements should be carried out in relation to the Transformation Programme. As part of this exercise, clarity should be provided surrounding the groups that \| This recommendation will be considered as part of the review noted above, including an assessment of the range and structure of the various client and theme based strategic planning groups. Please note development of terms of reference will take longer to establish hence the later action by date \| Dundee Health and Social Care Partnership Management Team \| 30th September 2019 \| No longer relevant due to TDG being stood down. Terms of reference for relevant transformation groups to be considered under the response to Governance Mapping Internal Audit Report presented to the September 2020 PAC \| \| Transformation proposals should be presented to the groups / governing bodies and committees (i.e. IJB and Performance and Audit Committee) that should give approval to proceed with those proposals and the groups that require to be copied into proposals for information only \| The existing documentation supporting the Transformation Programme will be enhanced to ensure the areas suggested in the audit recommendation are included \| Chief Finance Officer / Head of Health and Community Care Services \| 31st August 2019 \| No longer relevant due to TDG being stood down. \| \|---\|---\|---\|---\|---\| \| 4. Any reports prepared as part of the Transformation Programme and Transformation Workstreams should specifically include a section on for noting the potential impact of the transformation programme / project on quality and make specific reference to the consideration being given as to the impact on clinical or / social work standards. \| A comprehensive summary of the 2019/20 savings proposals methodology will be developed as part of the final 2019/20 budget development source files \| Chief Finance Officer \| 30th June 2019 \| Green \| \| 5. To assist with ensuring that efficiency savings can be easily identified, explained and tracked as they progress, sufficient demonstrable evidence, including the methodology and principles applied to arrive at the figures, should be available / retained \| This recommendation was implemented in 2018/19 and budget adjustments will be made timeously to the ledger for 2019/20 for those savings identified \| Chief Finance Officer \| 30th June 2019 \| Green \| \| accordingly in NHS Tayside’s general ledger. \| as being in relation to NHS provided services/expenditure \| \| \| \| 1.0 PURPOSE OF REPORT 1.1 The purpose of this report is to provide the Performance and Audit Committee with a progress update in relation to the current Internal Audit Plan. 2.0 RECOMMENDATIONS It is recommended that the Performance & Audit Committee (PAC): 2.1 Notes the continuing delivery of the audit plan and related reviews as outlined in this report. 3.0 FINANCIAL IMPLICATIONS 3.1 None. 4.0 MAIN TEXT 4.1 As approved under the essential business procedure and formally noted by Dundee IJB at its meeting of the 25th August 2020 (Report PAC15-2020), during 2020/21, Internal Audit Activity will focus on the previously agreed audits with updated scopes agreed with management. 4.2 As per Audit Scotland’s recommendation and subsequent agreed action following the Dundee IJB External Audit Annual Report 2016/17, presented to the September 2017 Performance and Audit Committee (PAC21-2017), progress of the Internal Audit Plan is now a standing item on Performance and Audit Committee agendas. 4.3 An update on the progress of all the IJB’s Internal Audits is shown in Appendix 1. - Finance (D05/19): Final report issued. See item 8 on this agenda - Performance management (D05/20): Fieldwork stage - Adverse events management (D06/20): Planning stage. 5.0 POLICY IMPLICATIONS 5.1 This report has been screened for any policy implications in respect of Equality Impact Assessment. There are no major issues. 6.0 RISK ASSESSMENT 6.1 This report has not been subject to a risk assessment as it a status update and does not require any policy or financial decisions at this time. 7.0 CONSULTATIONS 7.1 The Chief Officer, Regional Audit Manager and the Clerk were consulted in the preparation of this report. 8.0 BACKGROUND PAPERS 8.1 None. Dave Berry Chief Finance Officer Date: 08 January 2021 \| Ref \| Audit \| Indicative Scope \| Target Audit Committee \| Planning Commenced \| Work in Progress \| Draft Issued \| Completed \| Grade \| \|-------\|------------------------\|----------------------------------------------------------------------------------\|------------------------\|--------------------\|------------------\|--------------\|-----------\|-------------\| \| D01-19\| Audit Planning \| Agreeing audit universe and preparation of strategic plan \| N/A \| Complete \| Complete \| Complete \| Complete \| N/A \| \| D02-19\| Audit Management \| Liaison with management and attendance at Audit Committee \| N/A \| \| \| Complete \| \| \| \| D03-19\| Annual Internal Audit Report \| Chief Internal Auditor's annual assurance statement to the IJB and review of governance self-assessment \| N/A \| Complete \| Complete \| Complete \| Complete \| N/A \| \| D04-19\| Information Governance \| Review of IT/ data processes supporting the delivery of the IJB's strategic plan through seamless cross system working \| September 2020 \| Complete \| Complete \| Complete \| Complete \| D \| \| D05-19\| Finance \| Review of arrangements established to control and mitigate Risks 1&2 from the high level risk register \| February 2021 \| Complete \| Complete \| Complete \| Complete \| Limited Assurance \| \| D06-19\| Governance & Assurance \| Governance mapping exercise: Assess the extent to which the IJB’s structures support the delivery of strategic objectives Includes review of controls to address Risk 7 \| September 2020 \| Complete \| Complete \| Complete \| Complete \| Limited Assurance \| \| Ref \| Audit \| Indicative Scope \| Target Audit Committee \| Planning Commenced \| Work in Progress \| Draft Issued \| Completed \| Grade \| \|-------\|------------------------\|----------------------------------------------------------------------------------\|------------------------\|--------------------\|------------------\|--------------\|-----------\|-------\| \| D01-20 \| Audit Planning \| Preparation of Annual Internal Audit Plan \| \| September 2019 \| Complete \| Complete \| Complete \| N/A \| \| D02-20 & D02-21 \| Audit Management \| Liaison with management and attendance at Performance and Audit Committee \| N/A \| \| \| Ongoing \| \| \| \| D03-20 & D03-21 \| Annual Internal Audit Report \| Chief Internal Auditor's annual assurance statement to the IJB and review of governance self-assessment \| June 2019 August 2020 \| Complete \| Complete \| Complete \| Complete \| N/A \| \| D04-20 \| Governance & Assurance \| Ongoing support and advice on further development of governance and assurance structures, including issues identified as part of the annual report process and the self assessment against the Ministerial Strategic Group report and help in implementing an audit follow up process \| N/A \| \| \| Ongoing \| \| \| \| D05-20 \| Performance management \| Adequacy, accuracy, relevance, reliability, data quality, timeliness and interpretation of reporting against the priorities in the Strategic and Commissioning Plan and core integration indicators. Compliance with DL 2016 (05) - Guidance for Health and Social Care Integration Partnership Performance Reports and preparation for/implementation of the anticipated new national guidance on the ‘Joint Accountability Framework’ \| May 2021 \| Complete \| Complete \| \| \| \| \| D06-20 \| Adverse events management \| This work will link to Operational risks 30 and 34. Risk of duplication or omission at the interface of NHS and Local Authority Adverse event management processes and systems. Effective sharing of learning from reviews. Clear flow of assurance \| May 2021 \| Ongoing \| 1.0 PURPOSE OF REPORT 1.1 The purpose of this report is to present the findings of the Internal Audit Review of Finance to the Performance and Audit Committee. 2.0 RECOMMENDATIONS It is recommended that the Performance and Audit Committee (PAC): 2.1 Notes the content and findings of the Internal Audit Review of Finance attached as Appendix 1 to this report. 2.2 Notes and agrees the action plan associated with the report as the management response to the findings. 2.3 Instructs the Chief Finance Officer to report progress in delivering the actions set out in the action plan through the Governance Action Plan presented to each Performance and Audit Committee meeting. 3.0 FINANCIAL IMPLICATIONS 3.1 None. 4.0 MAIN TEXT 4.1 Dundee Integration Joint Boards Internal Audit Plan 2020/21 set out a number of reviews to be delivered by the combined Internal Audit resources of Dundee City Council and FTF Audit and Management Services under the direction of the IJB’s Chief Internal Auditor. These reviews were identified following a review of the IJB’s Strategic Risk Register and are designed to support development of governance arrangements to mitigate against these risks. 4.2 The Internal Audit Review of Finance reviewed 2 risks contained in the Dundee Health and Social Care Partnership (DH&SCP) / IJB High-Level Risk Register which impact on the continuing delivery of the service and the ability to meet its aims as outlined within the Strategic and Commissioning Plan, and the arrangements to control and mitigate these risks - Risks 1, ‘Restrictions on Public Sector Funding’ and 2, ‘Unable to maintain IJB spend’, and specifically: - Reviewed the arrangements in place for the delivery of the recommendations arising from the Ministerial Strategic Group (MSG) Self-Evaluation for the review of progress with integration of Health and Social Care as it relates to financial planning and management. - Reviewed the recommendations arising from the Audit Scotland IJB Annual Audit Reports for 2017/18 and 2018/19 to determine the progress made in completing the recommendations made as they relate to financial planning and management. 4.3 In order to assess this position the Internal Audit work has: - reviewed the recommendations and actions arising from MSG self evaluation, 2019/20 Annual External Audit Report, 2019/20 Annual Internal Audit Report, Governance Action Plan, and IJB Meeting Minutes; - reviewed interdependencies and interfaces with Dundee City Council and NHS Tayside; - considered working arrangements and reporting requirements for the above. 4.4 The review has identified a number of key findings and recommendations to be considered in relation to the governance arrangements surrounding the IJB and the complexities of its interface with the partner bodies. The Internal Auditors opinion is that that the review demonstrated Limited Assurance. This means that improvement is required to the system of governance, risk management and control to effectively manage risks to the achievement of objectives in the area audited. 4.5 These findings have been presented to the management of Dundee Health and Social Care Partnership who have agreed a range of actions in response to the key findings and recommendations. These actions are set out in the Action Plan on page 5 onwards of the Internal Audit Report. The progress of these actions will be monitored through the Governance Action Plan presented to each meeting of the Performance and Audit Committee. 5.0 POLICY IMPLICATIONS 5.1 This report has been screened for any policy implications in respect of Equality Impact Assessment. There are no major issues. 6.0 RISK ASSESSMENT 6.1 This report has not been subject to a risk assessment as it a status update and does not require any policy or financial decisions at this time. 7.0 CONSULTATIONS 7.1 The Chief Officer, Chief Internal Auditor and the Clerk were consulted in the preparation of this report. 8.0 BACKGROUND PAPERS 8.1 None. Dave Berry Chief Finance Officer Date: 3 February 2021 Dundee IJB Finance Report No. D05/19 Issued To: Dundee IJB Officers V Irons, Chief Officer D Berry, Chief Finance Officer NHS Tayside Officers S Lyall, Director of Finance Dundee City Council Officers D McCulloch, Head of Health and Community Care G Colgan, Chief Executive, Dundee City Council S Flight, Head of Corporate Finance Performance & Audit Committee External Audit P Redpath, Senior Manager- Internal Audit, DCC ## Contents \| Section \| Page \| \|---------\|------\| \| Section 1 \| Executive Summary \| 2 \| \| Section 2 \| Issues and Actions \| 5 \| \| Section 3 \| Detailed Findings\\Information \| 8 \| \| Section 4 \| Definitions of Assurance & Recommendation Priorities \| 11 \| \| Event \| Date \| \|-------\|------\| \| Draft Report Issued \| 7 December 2020 \| \| Management Responses Received \| 8 January 2021 \| \| Target Audit & Risk Committee Date \| 3 February 2021 \| \| Final Report Issued \| 18 January 2021 \| CONTEXT AND SCOPE 1. Dundee IJB is required under sections 18 and 22 of the Public Bodies (Joint Working) Scotland Act to direct the resources it receives from the Local Authority and Health Board in line with its Strategic Plan. On an annual basis, Dundee IJB has to reach a budget settlement with both Dundee City Council and NHS Tayside regarding resources that will be devolved to the IJB to support delivery of local Health and Adult Social Care Services. 2. The formal process for agreeing the budget settlements is set out in the Integration Scheme. The budget settlement is derived from a series of discussions with partners, once Scottish Government budget information is available. Information regarding the 2019/20 budget initially became available in December 2018 but was refined in February 2019 as the Government reached agreement regarding its final 2019/20 budget. 3. Information for the 2020/21 budget became available from the Scottish Government in January 2020, following the General Election in December 2019. Both the Council and NHS Tayside were also developing their budgets at the same time and implications from both organisations’ budgets were considered as part of the arrangements for finalising the 2020/21 budget. 4. The Dundee Health and Social Care Partnership (DH&SCP) / IJB High-Level Risk Register contains 2 risks which impact on the continuing delivery of the service and the ability to meet its aims as outlined within the Strategic and Commissioning Plan. The first risk relates to Restrictions on Public Sector Funding and reflects that continuing restrictions on public sector funding will impact on Local Authority and NHS budget settlements in the medium term. The second risk relates to the inability to maintain the IJB spend within allocated resources. 5. Our audit reviewed the arrangements established to control and mitigate Risks 1, ‘Restrictions on Public Sector Funding’ and 2, ‘Unable to maintain IJB spend’, from the high-level risk register and specifically: - Reviewed the arrangements in place for the delivery of the recommendations arising from the Ministerial Strategic Group (MSG) Self-Evaluation for the review of progress with integration of Health and Social Care as it relates to financial planning and management. - Reviewed the recommendations arising from the Audit Scotland IJB Annual Audit Reports for 2017/18 and 2018/19 to determine the progress made in completing the recommendations made as they relate to financial planning and management. AUDIT OPINION 6. The Audit Opinion of the level of assurance is as follows: \| Level of Assurance \| System Adequacy \| Controls \| \|--------------------\|-----------------\|----------\| \| Limited Assurance \| Significant gaps, weaknesses or non-compliance were identified. Improvement is required to the system of governance, risk management and control to effectively \| Controls are applied but with some significant lapses. \| A description of all definitions of assurance and assessment of risks are given in Section 4 of this report. 07. The 2019/20 Annual Internal Audit Report stated that: ‘A high proportion of issues previously highlighted by ourselves and others which have resulted in agreed recommendations have not been taken forward as expected. Whilst Covid19 may have had some impact, it is not, in our view, the primary cause of the failure to deliver these key changes. We have also reported a number of areas where update reports were promised but not delivered.’ Our findings in this audit re-iterate the same issues. 08. A number of actions arising from previous external audit reports remain outstanding and have now been incorporated in the 2019/20 Annual External Audit Report. Those actions carried forward echo the themes raised in previous Annual Internal Audit Reports as well as improvement actions agreed as part of the MSG self evaluation. 09. In response to the recommendation arising from the Annual Internal Audit Report 2019/20 on the non-delivery of a high proportion of actions agreed with Internal Audit and others, the Chief Finance Officer presented the Governance Action Plan Update report to the full IJB in October 2020, and included additional information on remedial actions required, revised completion dates as well as setting out initiatives required to allow progress. 10. However, actions arising from the MSG improvement plan were not included in this process. 11. Following the presentation of an action plan in response to the Transformation & Service Redesign Internal Audit report to the PAC in May 2019, the May PAC ‘instructed the Chief Finance Officer to provide an update on the Action Plan to the meeting of the Committee to be held in September 2019’. However, this update was not provided, nor were the actions added to the Governance Action Plan and because there is no process to review agreed actions at the next meeting of a group, this oversight was not noticed. This echoes a finding from our 2017/18 Annual Internal Audit Report in relation to the lack of action point updates to the next meeting. 12. The risks highlighted in the IJB High-Level Risk Register in relation to Finance have been mitigated in part by the actions completed to date following the MSG Self-Evaluation and the completion of actions raised by Audit Scotland. In addition, the enhanced communication channels between the partners and the IJB have improved the approach to agreeing financial planning and management matters. However, the controls noted against the strategic financial risks have not been updated. We would recommend that as part of the next risk review, action taken in response to MSG and external audit recommendations should be incorporated into controls and reflected within risk scores. 13. Detailed findings/information is included at Section 3. ACTION 14. The action plan at Section 2 of this report has been agreed with management to address the identified weaknesses. A follow-up of implementation of the agreed actions will be undertaken in accordance with the audit reporting protocol. ACKNOWLEDGEMENT 15. We would like to thank all members of staff for the help and co-operation received during the course of the audit. A Gaskin, BSc. ACA Chief Internal Auditor ### Action Point Reference 1 Finding: Internal Audit has reviewed progress against the actions arising from the Ministerial Strategic Group (MSG) Self-Evaluation for the review of progress with integration of Health and Social Care within the Integrated Finances and Financial Planning section. Whilst some progress has been made, a number of actions remain outstanding and neither the PAC nor the IJB have been updated on the current position or the impact of Covid19 on future ability to deliver the agreed actions. A number of actions arising from previous external audit reports remain outstanding and have now been incorporated in the 2019/20 Annual External Audit Report. Those actions carried forward echo the themes raised in previous Annual Internal Audit Reports as well as improvement actions agreed as part of the MSG self evaluation. In response to the recommendation arising from the Annual Internal Audit Report 2019/20 on the non-delivery of a high proportion of actions agreed with Internal Audit and others, the Chief Finance Officer presented the Governance Action Plan Update report to the full IJB in October 2020, and included additional information on remedial actions required, revised completion dates as well as setting out initiatives required to allow progress. However, actions arising from the MSG improvement plan are not included in this process. ### Audit Recommendation: Given the multiplicity of potentially overlapping audit and MSG recommendations and the impact of Covid19, we recommend that the actions be combined into a holistic action plan, reprioritised in light of changes to management capacity and risk. Internal Audit have recently written a template for this purpose which could be adapted for use by the IJB. This action plan should be approved and monitored by the PAC and any non-delivery escalated to the IJB Board and/or Risk Register as required. ### Assessment of Risk: - Significant - Weaknesses in control or design in some areas of established controls. - Requires action to avoid exposure to significant risks in achieving the objectives for area under review. ### Management Response/Action: The weaknesses identified have largely been reported previously. The template prepared by Internal Audit noted above will be used to reprioritise and focus on remaining significant actions outstanding. \| Action by: \| Date of expected completion: \| \|---------------------\|------------------------------\| \| Chief Finance Officer \| 31 March 2021 \| ### Action Point Reference 2 Finding: Following the presentation of an action plan in response to the Transformation & Service Redesign Internal Audit report to the PAC in May 2019, the minutes of the PAC in May 2019 show that the PAC ‘instructed the Chief Finance Officer to provide an update on the Action Plan to the meeting of the Committee to be held in September 2019’; which was not provided. However, there is no process to review agreed actions at the next meeting of a group so this oversight was not noticed. This echoes a finding from our 2017/18 Annual Internal Audit Report in relation to the lack of action point updates to the next meeting. Audit Recommendation: a) As previously recommended and in line with other required changes to the minuting of meetings, which is now being taken forward, we would recommend again, that actions are clearly identified, properly recorded and an update provided to each meeting of the IJB and PAC. b) Actions arising from the Transformation & Service Redesign internal audit report should continue to be monitored by being added to the Governance Action plan and their current status reported to the PAC. Assessment of Risk: Moderate Weaknesses in design or implementation of controls which contribute to risk mitigation. Requires action to avoid exposure to moderate risks to achieving the objectives for area under review. Management Response/Action: a) Clerk to the Board currently records a range of actions from each meeting however consideration by the IJB and PAC is required as to whether these should become formal items on each agenda. b) This was an oversight and will be reviewed accordingly. \| Action by: \| Date of expected completion: \| \|---------------------------------\|-----------------------------\| \| Chief Finance Officer / Clerk to the Board \| 31 March 2021 \| ### Action Point Reference 3 Finding: The risks highlighted in the IJB High-Level Risk Register in relation to Finance have been mitigated in part by the actions completed to date following the MSG Self-Evaluation and the completion of actions raised by Audit Scotland. In addition, the enhanced communication channels between the partners and the IJB have improved the approach to agreeing financial planning and management matters. However, the controls noted against the strategic financial risks have not been updated. Audit Recommendation: As part of the necessary update of these risks to reflect the impact of Covid19 and other external factors, actions taken in response to MSG and external audit recommendations should be incorporated into controls and reflected within risk scores. Assessment of Risk: \| Level \| Description \| \|-------\|-------------\| \| Moderate \| Weaknesses in design or implementation of controls which contribute to risk mitigation. Requires action to avoid exposure to moderate risks to achieving the objectives for area under review. \| Management Response/Action: Relevant risk controls to be amended accordingly. \| Action by: \| Date of expected completion: \| \|------------\|-----------------------------\| \| Chief Finance Officer \| 31 March 2021 \| Follow Up of Financial Planning & management recommendations arising from MSG Improvement actions and Audit Scotland external audit reports 16. The 2019/20 Annual Internal Audit Report stated that: ‘A high proportion of issues previously highlighted by ourselves and others which have resulted in agreed recommendations have not been taken forward as expected. Whilst Covid19 may have had some impact, it is not, in our view, the primary cause of the failure to deliver these key changes. We have also reported a number of areas where update reports were promised but not delivered.’ Our findings in this audit re-iterate these issues. 17. The initial MSG Self-Evaluation report submitted to Dundee IJB in June 2019 indicated that progress on implementing the improvement actions identified through the MSG Self-Evaluation process would be submitted to Dundee IJB by 19 December 2019. This did not occur and, to date, no update has been provided to Dundee IJB. 18. A similar report incorporating the self-assessments for Dundee, Perth and Kinross and Angus IJBs was submitted to NHS Tayside in June 2019 and a progress report incorporating an update from each of the local Health and Social Care Partnerships was subsequently reported to the NHS Tayside Board in December 2019. 19. Integrated Finances and Financial Planning is one of the key sections of the MSG Self-Evaluation report and incorporates 6 sub-sections relating to actions required for improvement and best practice. 20. Internal Audit has reviewed progress against the actions within the Integrated Finances and Financial Planning section for Dundee IJB. Whilst some progress has been made against the Finance recommendations in the MSG report, a number of actions remain outstanding and neither the PAC nor the IJB have been updated on the current position or the impact of Covid19 on future ability to deliver the agreed actions. 21. The following points were noted: - There are now regular meetings between senior finance officers of NHS Tayside, Dundee City Council and DH&SCP to discuss financial implications and pressures of the arrangements between the parties and wider financial planning. - The NHS Tayside budget, which feeds into the budget for DH&SCP was approved in April 2020. Regular discussions and development sessions have been held between NHS Tayside, Dundee IJB and Dundee City Council to provide indications of the budget uplifts / savings required as part of the budget development / budget setting arrangements. - Work is continuing to establish financial planning on a whole systems basis. A long-term financial plan / strategy for the IJB is being developed, but its completion and reporting to committee has been delayed and will need to be fundamentally revised to take account of the impact of Covid19. - Arrangements for clarifying the value of large hospital set aside budgets to Dundee IJB is continuing. As part of the budget settlement for 2020/21 a further £1million in addition to the 3% uplift was allocated from NHS Tayside to Dundee IJB in relation to large hospital set aside. - Work is still ongoing to streamline and strengthen the financial resources available to the Dundee IJB. A Partnership Finance Manager, in the same manner as Angus and Perth and Kinross IJB’s has been appointed following a recent recruitment exercise and took up the post in December 2020. Some staff who currently report to NHS Tayside’s Director of Finance will report to the Chief Financial Officer. Specific reports / reporting lines for the IJB will change in the same manner. Funding will be provided by NHS Tayside for this post. Work is also ongoing to transfer reporting responsibilities from NHS Tayside to the Chief Financial Officer and will be implemented when the Depute Chief Financial Officer takes up the post. At present there has been no transfer of Local Authority staff. - Actions arising from internal audit D06/17-Workforce were referenced as actions on the MSG Improvement Plan. A number of these actions are still outstanding. The last update on progress towards completion of these actions was reported to the IJB PAC in November 2020, with a revised due date noted as March 2021. 22. One of the proposed improvement actions arising from the MSG Self-Evaluation related to “continuing to improve the contents of Directions in relation to financial implications”. The initial self-evaluation identified that “the use of the budget is reflected in directions from the IJB to the Council and Health Board, however we recognise that there is further work to do to develop our practice in this regard and include more detailed financial information in directions.” As noted in the 2019/20 Annual Internal Audit Report, new Scottish Government guidance on directions issued in January 2020 have not yet been presented and discussed at governance level. 23. Internal Audit have identified instances where a clearer use could have been made of directions and, as in previous years, note that directions are very high level and do not provide the detail now expected. 24. The discussions referred to in the first bullet at paragraph 21 above have been taken forward to assist in improving the support arrangements for the IJB from both Dundee City Council and NHS Tayside. An update to the Governance Action Plan in October 2020 highlights that “Progress is being made in strengthening the support structure and realigning priorities to ensure that actions are completed.” Audit Scotland Annual Report 25. We also followed up actions arising from previous Audit Scotland Annual External Audit Reports as part of the audit fieldwork and the following points were noted: 26. Progress has been made or is now incorporated in the 2019/20 Annual External Audit Report. Those actions carried forward echo the themes raised in previous Annual Internal Audit Reports as well as improvement actions agreed as part of the MSG self evaluation. In addition, outstanding actions are complex ones such as long-term financial planning and linking performance reporting with financial monitoring. Audit Follow Up process 27. The 2019/20 Annual Internal Audit Report stated that: ‘A high proportion of issues previously highlighted by ourselves and others which have resulted in agreed recommendations have not been taken forward as expected. Whilst Covid19 may have had some impact, it is not, in our view, the primary cause of the failure to deliver these key changes. We have also reported a number of areas where update reports were promised but not delivered.’ Our findings in this audit re-iterate the same issues. 28. A Governance Action Plan covering actions agreed through previous internal reports (including Annual Internal Audit Reports) as well as external audit recommendations was developed and first presented to the PAC in March 2019. As part of our testing of progress towards implementing the audit recommendations contained in the Transformation and Service Redesign report, we noted that although an action plan was provided to the PAC in May 2019, no progress updates on individual actions have been provided since, nor were the actions added to the Governance Action Plan. 29. Following the presentation of an action plan in response to the Transformation & Service Redesign internal audit report to the PAC in May 2019, the May PAC ‘instructed the Chief Finance Officer to provide an update on the Action Plan to the meeting of the Committee to be held in September 2019’. 30. However, this update was not provided and because there is no process to review agreed actions at the next meeting of a group, this oversight was not noticed. 31. Whilst our follow up work shows that some progress has been made with actions arising from this audit, and some actions are now no longer relevant due to the responsibilities for this area transferring to another group, weaknesses previously reported by Internal Audit in relation to minutes and action points remain, with the consequence that the process for monitoring whether action is taken as agreed is not robust. 32. Further development of the IJB and PAC minutes and papers to ensure full transparency and accurate recording of the discussions, questions asked and assurances provided has been considered. The update within the Governance Action Plan to the November 2019 meeting of the IJB highlights that “Minutes expanded as required to reflect key discussions”. However, from review of minutes for 2019/20 IJB meetings there is no evidence of questions being recorded, additional discussions and assurances provided over and above the commentary in the report. However, the 24 November PAC meeting was informed that minutes would improve from January onwards. ### Strategic Finance risks 33. The risks highlighted in the IJB High-Level Risk Register in relation to Finance have been mitigated in part by the actions completed to date following the MSG Self-Evaluation and the completion of actions raised by Audit Scotland. In addition, the enhanced communication channels between the partners and the IJB have improved the approach to agreeing financial planning and management matters. However, the controls noted against the strategic financial risks have not been updated. We would recommend that as part of the next risk review, action taken in response to MSG and external audit recommendations is considered as controls as well as the impact on risk scores. 34. An update to the High-Level Risk Register was submitted to the IJB at its meeting in August 2020. This paper references the actions arising from internal audit report D04/18 Risk Maturity assessment and sets out the work being undertaken by the Tayside Risk Management Group Risk Managers in Dundee, Angus and Perth Health and Social Care Partnerships, NHS Tayside and Dundee City Council. We therefore make no further recommendations in relation to risk management processes. Definition of Assurance To assist management in assessing the overall opinion of the area under review, we have assessed the system adequacy and control application, and categorised the opinion based on the following criteria: \| Level of Assurance \| System Adequacy \| Controls \| \|--------------------\|-----------------\|----------\| \| Substantial Assurance \| A sound system of governance, risk management and control exists, with internal controls operating effectively and being consistently applied to support the achievement of objectives in the area audited. \| Controls are applied continuously or with only minor lapses. \| \| Reasonable Assurance \| There is a generally sound system of governance, risk management and control in place. Some issues, non-compliance or scope for improvement were identified which may put at risk the achievement of objectives in the area audited. \| Controls are applied frequently but with evidence of non-compliance. \| \| Limited Assurance \| Significant gaps, weaknesses or non-compliance were identified. Improvement is required to the system of governance, risk management and control to effectively manage risks to the achievement of objectives in the area audited. \| Controls are applied but with some significant lapses. \| \| No Assurance \| Immediate action is required to address fundamental gaps, weaknesses or non-compliance identified. The system of governance, risk management and control is inadequate to effectively manage risks to the achievement of objectives in the area audited. \| Significant breakdown in the application of controls. \| Assessment of Risk To assist management in assessing each audit finding and recommendation, we have assessed the risk of each of the weaknesses identified and categorised each finding according to the following criteria: \| Category \| Description \| Action Required \| \|----------------\|-----------------------------------------------------------------------------\|------------------------------------------------------\| \| Fundamental \| Non Compliance with key controls or evidence of material loss or error. \| Action is imperative to ensure that the objectives for the area under review are met. \| \| Significant \| Weaknesses in design or implementation of key controls i.e. those which individually reduce the risk scores. \| Requires action to avoid exposure to significant risks to achieving the objectives for area under review. \| \| Moderate \| Weaknesses in design or implementation of controls which contribute to risk mitigation. \| Requires action to avoid exposure to moderate risks to achieving the objectives for area under review. \| \| Merits attention \| There are generally areas of good practice. \| Action may be advised to enhance control or improve operational efficiency. \| 1.0 PURPOSE OF REPORT 1.1 This is presented to the Committee for: - Assurance This report relates to: - Government policy/directive - Legal requirement This aligns to the following NHS Scotland quality ambition(s): - Safe - Effective - Person Centred This report is being brought to the Committee to provide assurance on the clinical and care governance activities and arrangements across the Partnership as outlined in the Getting It Right For Everyone (GIRFE) Framework in accordance with the Partnership integration scheme. Clinical Governance is a statutory requirement to report on, at Board level, from Scottish Government as per NHS MEL (1998) 75. The Performance and Audit Committee is being asked to provide their view on the level of assurance this report provides and therefore the level of assurance regards clinical and care governance within the Partnership. The timescale for the data within this report is from 1 October 2020 to 30 November 2020. 2.0 RECOMMENDATIONS 2.1 It is recommended that the Performance and Audit Committee (PAC): - Note the Exception Report for the Dundee Health & Social Care Partnership Clinical, Care & Professional Governance Group as detailed in Section 4. 2.2 This report is being presented for: - Assurance As lead Officer for Dundee Health & Social Care Partnership (DHSCP) I would suggest that the level of assurance provided is: Moderate. 3.0 FINANCIAL IMPLICATIONS 3.1 None. 4.0 MAIN TEXT 4.1 Situation 4.1.1 This report is being brought to the Committee to provide assurance on the clinical and care governance activities and arrangements across the Partnership as outlined in the Getting It Right For Everyone Framework in accordance with the Partnership integration scheme. Clinical Governance is a statutory requirement to report on, at Board level, from Scottish Government as per NHS MEL (1998) 75. The Performance and Audit Committee is being asked to provide their view on the level of assurance this report provides and therefore the level of assurance regards clinical and care governance within the Partnership. The timescale for the data within this report is from 1 October 2020 to 30 November 2020. As lead Officer for Dundee HSCP I would suggest that the level of assurance provided is: Moderate. 4.2 Background 4.2.1 The role of the Dundee Health & Social Care Partnership Governance group is to provide assurance to the Dundee Integration Joint Board, NHS Tayside Board (through the Care Governance Committee) and Dundee Council, that there are effective and embedded systems for Clinical, Care & Professional Governance in all services within Dundee Health and Social Care Partnership. 4.2.2 The Getting It Right For Everyone Framework has been agreed by all three Health & Social Care Partnerships and the recent refresh of the document was endorsed at Care Governance Committee. To ensure consistency of approach between Local Authorities, Tayside NHS Board and the IJBs for the three Health & Social Care Partnerships, quality assurance is assessed against an agreed, prioritised common data set for each of the governance domains as detailed below. A Getting It Right For Everyone Steering Group has been established and continues to meet, with representatives from each of the three Partnerships and part of its remit is to support additional common assurance measures and this template. 4.2.3 The six domains continue to evolve over time and must be adaptable and responsive to the changes in legislation and external support and monitoring. The domains reflect the principles set out in the Health and Social Care Standards, My support, My life; Scottish Government, 2018 and the Quality of Care Approach, Healthcare Improvement Scotland and Care Inspectorate, September 2018. The domains are: \| Information Governance \| \|------------------------\| \| Professional Regulation and Workforce Development \| \| Patient/Service User/Carer and Staff Safety \| \| Patient/Service User/Carer and Staff Experience \| \| Quality and Effectiveness of Care \| \| Promotion of Equality and Social Justice \| 4.2.4 There is a clinical governance strategic risk for NHS Tayside Clinical Governance Risk 16. The current risk exposure rating of this risk considers the Clinical and Care Governance reporting arrangements within the Partnerships and reflects the complexity in moving towards integrated Clinical and Care Governance arrangements within each of the HSCPs. The Interim Evaluation of Internal Control Framework Report No T09/20 identifies the need for greater consistency in reporting of performance and quality by the HSCPs. 4.3 Assessment 4.3.1 Clinical and Care Risk Management 4.3.1.1 Risk management across Dundee HSCP continues to be recorded across both a Health (service risks) and Local Authority (strategic risks) system. While this in itself does not prevent appropriate risk management processes being undertaken it does increase the required administration to link together risks and ensure visibility and connections between strategic and service risks. There are ongoing discussions to determine the most effective route forwards for risk management systems. 4.3.1.2 Top 5 Risks in Dundee HSCP \| Title of Risk \| Adequacy \| Inherent Risk Score (without controls) \| Current Risk Score (with current controls in place) \| \|------------------------------------------------------------------------------\|-----------------------------------------------\|----------------------------------------\|-----------------------------------------------------\| \| 721 - Current funding insufficient to undertake the service redesign of the integrated substance misuse service \| Inadequate - No evidence to support the effectiveness of controls \| 20 \| 20 \| \| 612 - Insufficient numbers of staff in integrated substance misuse service with prescribing competencies \| Incomplete – Controls are appropriately designed but these are not consistently applied \| 25 \| 25 \| \| 233 - Increasing Patient demand in excess of resources \| Incomplete - Controls are appropriately designed but these are not consistently applied \| 15 \| 25 \| \| 839 - COVID-19 Maintaining Safe Substance Misuse Service \| Incomplete - Controls are appropriately designed but these are not consistently applied \| 12 \| 15 \| \| 729 - Nursing Workforce \| Inadequate – No evidence to support the effectiveness of controls \| 15 \| 12 \| 4.3.1.3 Risk 721: Risk that current funding would be insufficient to undertake redesign of the integrated substance misuse service. The current risk rating is 20. Since the launch of the Drug Commission report in August 2019, ISMS has recruited five additional band 5 nurse posts, 3 new posts and 2 posts to replace previous fixed term positions. There is also a long term vacancy for a locality manager to lead strategic financial planning. Controls available to Integrated Substance Misuse Service (ISMS) have been applied and the risk exposure remains 20, which contributes to the risk ratings for Datix risks 612, 233, 839 and 458. 4.3.1.4 Risk 621: Insufficient numbers of ISMS staff with prescribing competencies. The controls available to ISMS have been applied and the risk exposure remains 25. Proposed controls include the relevant Dundee Partnership Action Plan for Change actions and the implementation of national Medication Assisted Treatment standards, which have been added as Datix risk actions to enable DHSCP and NHST to monitor the consequences of these planned controls. The risk exposure with the planned/proposed controls remains 25 as the controls do not yet address the prescribing capacity issues for those established on opiate substitution treatment with multiple complex needs, the population with the highest fatality risk. 4.3.1.5 Risk 233: Increased patient demand in excess of resources. Despite applying controls the risk rating has increased from 15 to 25. Proposed controls include the relevant Dundee Partnership Action Plan for Change actions and the implementation of national Medication Assisted Treatment standards, which have been added as Datix risk actions to enable DHSCP and NHST to monitor the consequences of these planned controls. The risk exposure of the planned/proposed controls remains 25 as the controls do not address the nurse key working capacity issues and the service continues to hold 240 cases that do not have a named nurse allocated to their care. 4.3.1.6 Risk 839: COVID-19 Maintaining safe substance use services. Integrated Substance Misuse Service has rapidly adapted service provision to continue to deliver person-centred care during the COVID pandemic, working in partnership with other agencies. We have maintained provision of opiate substitution treatment and alcohol detox, despite a 50% increase in alcohol referrals compared to a similar period in 2019. The risk rating remains 15 as staffing levels can fluctuate and clinical activity has increased. 4.3.1.7 Risk 729: Nursing Workforce. The nursing workforce continues to be under significant pressure across a number of teams. Risk 729 relates specifically to the inpatient team in the Medicine for the Elderly wards, a number of other nursing teams also have risks recorded. The teams are working flexibly to ensure safe care is delivered using colleagues from across the Partnership to support where able. There is added strain in the system due to the requirement to support the COVID testing centre and the vaccination programme. As lead Officer for Dundee HSCP I would suggest that the level of assurance provided is: Moderate. 4.3.2 Clinical & Care Governance Arrangements 4.3.2.1 Dundee HSCP has established processes for Clinical, Care and Professional Governance in order to ensure processes and scrutiny are of a level which can provide the required assurance. A number of elements of governance are working well across the Partnership with the development of the Primary Governance Groups becoming established and feeding in an enhanced quality of assurance to the CCPG Group. 4.3.2.2 The CCPG Group meets every two months and receives information as outlined in the table below. Operational managers present an exception report to each CCPG Group highlighting challenges, issues and exceptional pieces of work. An annual performance framework requests that each service present a comprehensive annual report on all aspects of clinical, care and professional governance. Governance Reporting Table \| Primary Governance Group \| CCPG Group \| Care Governance Committee \| \|--------------------------\|------------\|--------------------------\| \| Scorecard \| Full \| Exceptions (from scorecard) \| Persistent Exception (Three Reports) Exceptions affecting multiple teams Level of Risk (High) \| \| Datix Themes/Action Taken\| All Service Reported and themed \| Exceptions (Individual/Themes) \| Persistent Exception (Three Reports) Exceptions Affecting Multiple Teams Level of Risk (High) \| \| Red Events \| All for service \| All \| Overview – themes/numbers \| \| LAER/SAER/SCR \| All reported and learning shared \| High Level Summary \| Exceptions Organisational Learning Organisational Risk \| \| Complaints (and SPSO) \| All – learning shared \| Report highlighting numbers/service areas/themes \| SPSO Numbers Organisational Learning \| \| Risks \| All for service \| High Level Report with assurance statement. Persistent long term risks Transient risks \| Overview Report Persistent Exception (Three Reports) Exceptions affecting multiple teams Level of Risk (High) \| \| Inspection Reports \| Action Plan Produced per team (where applicable) \| Action Plan Produced per team (where applicable) \| Overview Statement \| \| Standards/Legislation/ Guidelines \| New Standards Reported \| Agenda items prioritised when required \| Organisational Impact \| The CCPG Forum has changed its format and is now a forum specifically for sharing of good practice and learning in relation to challenges and provides support and development to managers and lead governance staff across the Partnership. October’s forum reviewed exception reports from services and had focussed discussion on a number of operational challenges. The group then had an interaction session on the Datix Risk Management system via MS Teams. As lead Officer for Dundee HSCP I would suggest that the level of assurance provided is: Moderate. 4.3.3 Adverse Event Management 4.3.3.1 The chart below shows the type of events reported through the NHS Tayside Adverse Event Management System (Datix) between 01/06/2019 and 30/11/2020. There was a total of 3330 events reported within the time period. This chart shows an increase in adverse events without harm over the past 5 months. This will be explored further in this report when we separate the top 5 event categories below. The following graph shows the adverse events reported by impact from 01.06.2020 to 31.11.2020. 4.3.3.3 Top 5 Categories of Adverse Events The following table shows the top five categories reported between 01.10.2020 to 31.11.2020 by service. The top five categories are Slip, Trip, Fall (inpatients only) (124 incidents); Violence and Aggression (104 incidents); Medication Adverse Event (33 incidents); Documentation/Administration (20 incidents); and Clinical Challenging Behaviour (17 incidents). \| TYPE OF EVENTS REPORTED OVER 2 MONTH PERIOD \| Adults and Older People \| Allied Health Professions \| Area Psychological Therapy Service \| Brain Injury Rehabilitation \| Community Mental Health Services \| ISMS \| MFE (Medicine for the Elderly) \| Other \| Palliative Medicine \| Psychiatry of Old Age \| Total \| \|--------------------------------------------\|-------------------------\|---------------------------\|-----------------------------------\|-----------------------------\|---------------------------------\|------\|-----------------------------\|-------\|---------------------\|---------------------\|-------\| \| SLIP, TRIP or FALL (in-patients only) \| 1 \| 3 \| 0 \| 8 \| 1 \| 0 \| 40 \| 0 \| 5 \| 66 \| 124 \| \| VIOLENCE & AGGRESSION \| 7 \| 2 \| 0 \| 0 \| 2 \| 8 \| 6 \| 2 \| 1 \| 76 \| 104 \| \| MEDICATION ADVERSE EVENT \| 14 \| 0 \| 0 \| 1 \| 0 \| 4 \| 4 \| 0 \| 5 \| 5 \| 33 \| \| DOCUMENTATION/ADMINISTRATION \| 3 \| 2 \| 1 \| 1 \| 3 \| 6 \| 0 \| 3 \| 1 \| 0 \| 20 \| \| CLINICAL CHALLENGING BEHAVIOUR \| 1 \| 1 \| 0 \| 0 \| 0 \| 1 \| 3 \| 0 \| 0 \| 11 \| 17 \| \| Total \| 26 \| 8 \| 1 \| 10 \| 6 \| 19 \| 53 \| 5 \| 12 \| 158 \| 298 \| 4.3.3.4 The following graph shows the monthly number of events by severity for Slips, Trips and Falls (In-Patient only). ![Graph showing monthly number of events by severity for Slips, Trips and Falls (In-Patient only).] 4.3.3.5 Of the 124 events, the majority (106) were across Older Peoples Services; 66 of these in Psychiatry of Old Age and 40 in Medicine for the Elderly. Work has commenced across both of these areas to explore the number of slips, trips and falls reported with the Patient Safety Team. 4.3.3.6 The clinical teams have noted that patients appear to be more frail, potentially due to the impact of COVID-19, and require significantly more rehabilitation, over a longer period of time to return them to levels of functional independence. 4.3.3.7 The number of incidents has increased over the time period and this will be continue to be monitored. Incidents with harm continue to be reviewed and in this reporting period there were only two incidents that were graded as moderate, with no incidents graded as major or extreme. The harm caused is predominantly bruising or grazing, although it should also be noted that a patient also chipped a tooth within this reporting period. 4.3.3.8 The following graph shows the monthly number of events for violence and aggression. 4.3.3.9 During this reporting period there has been a significant spike in October followed by a resultant fall in November. Analysis of these events shows that: - 4 people were repeatedly involved in 56 events. - 7 people were named in 2-5 events - 9 people were named in only one event A number of these patients have been discharged into November explaining the resultant fall in events. 4.3.3.10 Of the 104 incidents reported during this reporting period 76 of these were located in Psychiatry of Old Age Wards. 26 Of these were reported as incidents with harm. A review of these incidents identifies a significant percentage showing harm to staff via pinching, punching or kicking, although there is no serious or lasting effect from this harm. 4.3.3.11 The team have noted that the patient group have become younger and fitter over the past 12 months or so and this has necessitated the requirement for enhanced levels of training for staff to better support this patient group. This training has been focussed on wards 3 and 4 at Kingsway Care Centre as the vast majority of incidents are reported here (95%). 4.3.3.12 The following graph shows the monthly number of medication adverse events. ![Medication Adverse Events reported by Event Severity June 2019 onwards](image) 4.3.3.13 Medication adverse events are spread out over a number of different clinical teams, that is to say there is no particular theme or area of concern within one team. This, however, is closely monitored and any emerging areas of concern are discussed at the CCPG Group. During this reporting period there were no incidents with harm reported. 4.3.3.14 The following graph shows the monthly number of documentation/administration adverse events. ![Graph showing monthly documentation/administration adverse events from June 2019 to November 2020.] 4.3.3.15 There are a range of incidents reported through documentation/administration which include breach of confidentiality, documentation error and delays reporting beyond standard targets. The delays reporting beyond standard targets relate to staff having to work additional hours to complete documentation. Staff have been reminded that this does not constitute an adverse event and therefore does not need to be reported within the Datix system. 4.3.3.16 Where breaches of confidentiality occur there is close working with the information governance team to ensure that all necessary steps have been taken to comply with GDPR regulations and also professional duty of candour. There are no single areas of concern in relation to these events and this will continue to be monitored. 4.3.3.17 The following graph shows the monthly number of clinically challenging behaviour events. 4.3.3.18 These events are predominantly recorded in the Psychiatry of Old Age service. There is a positive reporting culture within this service and the team report being able to effectively manage the clinically challenging behaviours well. 4.3.3.19 The increase in minor incidents appears to correlate with the increase in violence and aggression events, and, as mentioned earlier the patient group are becoming younger and fitter which has led to the team receiving additional training to best manage the changing demographic of this patient group. 4.3.3.20 Number of Overdue Verified Adverse Events This table shows a significant improvement in the number of overdue verified adverse events. It is recognised that the figures remain high and further work is required to continue with the demonstrated improvement. Additional staff have been recruited to support this work and training continues to ensure growing capacity to further reduce and maintain the positive work seen over the past three months. As lead Officer for Dundee HSCP I would suggest that the level of assurance provided is: Moderate 4.3.4 Pressure Ulcers 4.3.4.1 Pressure Ulcer numbers remain low across the Partnership. Reviews are completed in relation to all pressure ulcers that are recorded and from these assurance is provided that all preventable steps are taken in relation to pressure ulcer care. 4.3.4.2 The main theme apparent is pressure ulcers developing within the community setting and reviews have demonstrated that patients often do not wish to follow the advice provided by the community nursing service. Challenges also remain in relation to associated skin care bundles and there is ongoing improvement work in place. 4.3.4.3 Pressure Ulcer Incidents by Grade from June 2019 4.3.4.4 Pressure Ulcer Incidents by subcategory from June 2019 As lead Officer for Dundee HSCP I would suggest that the level of assurance provided is: Moderate 4.3.5 Complaints 4.3.5.1 Stage 1 NHS Complaints \| Directorate \| Days_Band \| Total \| 5-9 Days \| 10-14 Days \| \|-------------\|-----------\|-------\|----------\|------------\| \| Total \| \| 4 \| 2 \| 2 \| \| Dundee HSCP (Health and Social Care Partnership) \| \| 4 \| 2 \| 2 \| There are currently four stage 1 complaints being managed. 4.3.5.2 Stage 2 NHS Complaints \| Speciality \| Days_Band \| Total \| 5-9 Days \| 10-14 Days \| 15-20 Days \| 21-25 Days \| 26-30 Days \| 31-35 Days \| 36-40 Days \| 40+ Days \| \|------------\|-----------\|-------\|----------\|------------\|------------\|------------\|------------\|------------\|------------\|----------\| \| Total \| \| 27 \| 2 \| 5 \| 3 \| 3 \| 2 \| 2 \| 2 \| 8 \| \| MISSING \| \| 3 \| 1 \| 2 \| - \| - \| - \| - \| - \| - \| \| Adult Psychotherapy Service \| \| 3 \| - \| - \| 1 \| 1 \| - \| 1 \| - \| - \| \| General Practice \| \| 3 \| 1 \| 1 \| - \| - \| - \| - \| - \| 1 \| \| Physiotherapy \| \| 1 \| - \| - \| 1 \| - \| - \| - \| - \| - \| \| Community Mental Health Services \| \| 11 \| - \| 2 \| 2 \| 2 \| 1 \| 1 \| - \| 3 \| \| Eating Disorder Service \| \| 1 \| - \| - \| - \| - \| - \| - \| 1 \| - \| \| MFE (Medicine for the Elderly) \| \| 4 \| - \| - \| - \| - \| 1 \| - \| - \| 3 \| \| Tayside Sexual and Reproductive Health \| \| 1 \| - \| - \| - \| - \| - \| - \| - \| 1 \| This table shows the number of open complaints and how long they have been active. The complex nature of some of these complaints account for the length of time it is taking to resolve them. 4.3.5.3 Total Number of Complaints (NHS) 2019-2020 (to November) 4.3.5.4 The complaints for 2020 have been generally lower than 2019 through to September. 2019 saw a gradual reduction in the number of complaints over the last 6 months, while 2020 is showing a gradual increase. While, in part, this may be due to a reduction in complaints due to COVID, the overall number of complaints from September is higher for 2020 when compared to 2019. 4.3.5.5 Top Themes Recorded: The top three themes within Health were once again, for the fourth quarter running, Attitude and Behaviour; Clinical Treatment and Communication (Oral). The top two sub themes were Disagreement with treatment/care plan and Lack of support. 4.3.5.6 Staff have been encouraged to undertake training in relation to complaints management using the Power of Apology Sessions. 4.3.5.7 A more coordinated response is being developed linking the outcomes of complaints to services, across the Partnership, to support and encourage the sharing of learning amongst all teams. As lead Officer for Dundee HSCP I would suggest that the level of assurance provided is: Moderate 4.3.6 External Reports & Inspections 4.3.6.1 Healthcare Improvement Scotland Inspection for the Royal Victoria site in July was in relation to Care of Older People: The recommendations were in relation to: - Documentation of reassessment of MUST and oral health on transfer - MUST screening assessment tool is completed in full - Ensure oral hygiene assessment is completed. - Develop person centred care planning. - Review documentation to ensure person centred care plan can be recorded. - Review SKIN bundle to ensure documentation captures key elements of pressure ulcer prevention, monitoring and management. - All staff must ensure appropriate hand hygiene practice. - Ensure environment is effectively monitored and maintained to ensure infection prevention and control practice. 4.3.6.2 Seventeen actions have been identified and incorporated into the action plan. Ten actions are now complete. Timeframes have been adjusted to allow time for development and subsequent audit of documentation to be undertaken in relation to outstanding actions. The impact of COVID has also impacted on achievement of some actions. All actions should be complete by May 2021. As lead Officer for Dundee HSCP I would suggest that the level of assurance provided is: Moderate 4.3.7 Adult Support & Protection 4.3.7.1 The following tables provide information relating to the trend activity carried out under Adult Support and Protection Legislation. There was a significant reduction in the numbers of concerns raised across all protection matters during the first four months of the pandemic. As lockdown eased there was an increase in referrals with numbers rising above that of pre-COVID. It should be noted that despite the increase, the numbers of cases progressing from concern to formal action remained within the normal parameters. These numbers are now returning to pre-COVID rates. 4.3.7.2 Police Scotland remains the highest referring agency. Information shows that referrals are often for welfare concerns and these are screened and, a duty to enquire progressed and actioned in the appropriate way. As a result, a low rate of original concerns progress to an Adult Support and Protection investigation. See table below. \| Thu - Wed commencing \| ASP Concern \| Onwards \| NFA /In Progress \| ASP Duty to Inquire \| Onwards \| NFA /In Progress \| ASP Investigation \| ASP Case Conference \| ASP Review Case Conference \| ASP Core Group/ Protection Plan Meetings \| \|----------------------\|-------------\|---------\|------------------\|---------------------\|---------\|------------------\|-------------------\|---------------------\|--------------------------\|------------------------------------------\| \| 10-Sep-20 \| 39 \| 33 \| 6 \| 35 \| 2 \| 33 \| 1 \| - \| - \| - \| \| 17-Sep-20 \| 55 \| 44 \| 11 \| 43 \| 3 \| 40 \| 1 \| - \| - \| 1 \| \| 24-Sep-20 \| 52 \| 41 \| 11 \| 36 \| 4 \| 32 \| 2 \| 1 \| 4 \| - \| \| 01-Oct-20 \| 50 \| 40 \| 10 \| 43 \| 6 \| 37 \| - \| 2 \| - \| - \| \| 08-Oct-20 \| 34 \| 28 \| 6 \| 27 \| 3 \| 24 \| 1 \| 1 \| 2 \| - \| \| 15-Oct-20 \| 41 \| 37 \| 4 \| 36 \| 2 \| 34 \| 3 \| 3 \| 2 \| - \| \| 22-Oct-20 \| 60 \| 49 \| 11 \| 48 \| 3 \| 45 \| - \| - \| 2 \| - \| \| 29-Oct-20 \| 42 \| 38 \| 4 \| 45 \| - \| 45 \| 1 \| 1 \| - \| - \| \| 05-Nov-20 \| 46 \| 39 \| 7 \| 35 \| 4 \| 31 \| 1 \| 1 \| - \| 1 \| \| 12-Nov-20 \| 43 \| 32 \| 10 \| 32 \| 4 \| 28 \| 2 \| - \| 1 \| - \| \| 19-Nov-20 \| 51 \| 42 \| 9 \| 45 \| 4 \| 41 \| 2 \| 2 \| 1 \| - \| \| 26-Nov-20 \| 44 \| 37 \| 6 \| 41 \| 2 \| 39 \| - \| 2 \| - \| 1 \| \| 03-Dec-20 \| 49 \| 41 \| 8 \| 41 \| 6 \| 35 \| 2 \| 1 \| 1 \| 2 \| 4.3.7.3 The following table provides an indication of the types of concern raised through referrals for the period (Thursday-Wednesday commencing 3 December 2020). During the pandemic, regular reporting has been submitted nationally showing the impact and actions taken to ensure protection matters continue to be addressed. This report is also considered at the relevant protection committees including the Dundee Adult Support Protection Committee and the Dundee Chief Officers Group. Breakdown of Principle Type of Concern Thu - Wed commencing: 03-Dec-20 \| Type of Concern \| Count \| \|-----------------------------------------\|-------\| \| Welfare Concerns - Older People \| 6 \| \| Welfare Concerns - Adults \| 22 \| \| Suicide Ideation \| 4 \| \| Financial Harm \| 1 \| \| Physical harm \| - \| \| Actual self harm \| 4 \| \| Fire safety risk \| 3 \| \| Sexual harm \| 1 \| \| Domestic abuse \| 1 \| \| Self neglect \| 1 \| \| Threat of self harm \| 1 \| \| Suicide Attempt \| 2 \| \| Harassment \| 1 \| \| Discrimination \| - \| \| Emotional/Psychological harm \| - \| \| Neglect by carer \| 1 \| \| Exploitation \| - \| \| Other \| 1 \| \| Total \| 49\| Breakdown of Reasons for NFA at Duty to Inquire \| Reason \| Count \| \|------------------------------------------------------------------------\|-------\| \| Existing support services have been informed of the concern and will manage appropriately (Least restrictive approach) \| 8 \| \| Conduct appropriate follow-up for community care needs (Social Work) \| 1 \| \| NFA Required - Inappropriate Referral to ASP \| 9 \| \| Advice and information given and signposted to appropriate services /support \| 6 \| \| The adult is currently admitted to hospital for mental health assessment / treatment \| 1 \| \| The adult has been admitted to hospital for medical treatment. Reported to the appropriate Social Work Team \| 2 \| \| After initial inquiry by a Designated Council Officer the adult declined support \| 1 \| \| Other \| 1 \| \| Concern to be passed onto GP for information and support \| 1 \| \| Risks remain and a Multi Agency Risk Management Meeting will be arranged \| 2 \| \| Council Officer has inquired and appropriate safeguards have been put in place prior to investigation \| - \| \| Adult Lives out with Dundee Area - Concern passed to Appropriate Local Authority \| - \| \| Step in Progress \| 9 \| \| Total \| 41\| As lead Officer for Dundee HSCP I would suggest that the level of assurance provided is: Moderate The level of assurance should be provided for each heading under assessment (2.3). \| Level of Assurance \| System Adequacy \| Controls \| \|--------------------\|-----------------\|----------\| \| Comprehensive Assurance \| Robust framework of key controls ensures objectives are likely to be achieved. \| Controls are applied continuously or with only minor lapses. \| \| Moderate Assurance \| Adequate framework of key controls with minor weaknesses present. \| Controls are applied frequently but with evidence of non-compliance. \| \| Limited Assurance \| Satisfactory framework of key controls but with significant weaknesses evident which are likely to undermine the achievement of objectives. \| Controls are applied but with some significant lapses. \| \| No Assurance \| High risk of objectives not being achieved due to the absence of key internal controls. \| Significant breakdown in the application of controls. \| 4.4 Quality/Patient Care The principle focus of all services is a desire to achieve the six dimensions of healthcare quality. These state that healthcare must be: - Safe - Effective - Patient-centred - Timely - Efficient - Equitable The work being progressed will have a positive impact on the quality of care and services for staff and the population of Dundee and Tayside. 4.5 Workforce The continuing impact of COVID-19 is being felt by staff across the HSCP as they continue to support service delivery alongside supporting COVID testing and the delivery of vaccinations. Dundee HSCP continues to support staff health and wellbeing throughout this challenging time. Nursing and AHP teams, in particular, have faced significant challenge. This has led to the development of more Tayside wide collaborative working with colleagues from acute and the other HSCP's to support mitigation of these risks. 4.6 Financial N/A. 4.7 Risk Assessment/Management Risks are included in the report above. 4.8 Equality and Diversity, including Health Inequalities An impact assessment has not been completed. Promotion of Equality and Social Justice is one of the domains included in the GIRFE reporting assurance framework. 4.9 Other Impacts There are no other directs impacts of this report. 4.10 Communication, Involvement, Engagement and Consultation The Dundee HSCP has carried out its duties to involve and engage external stakeholders where appropriate. 4.11 Route to the Meeting This has been previously considered by the following groups as part of its development. The groups have either supported the content, or their feedback has informed the development of the content presented in this report. - Dundee HSCP CCPG Group, 3 December 2020. 5.0 POLICY IMPLICATIONS 5.1 This report has been screened for any policy implications in respect of Equality Impact Assessment. There are no major issues. 6.0 RISK ASSESSMENT \| Risk 1 Description \| The risk of not providing sufficient assurance through governance assurance routes will reduce confidence in the ability of the HSCP to deliver safe, quality care. \| \|--------------------\|----------------------------------------------------------------------------------------------------------------------------------\| \| Risk Category \| Governance \| \| Inherent Risk Level\| Likelihood (2) x Impact (4) = Risk Scoring (8) \| \| Mitigating Actions (including timescales and resources) \| Systems in place for all operational teams to provide exception reports to the clinical, care and professional governance group. ‘Getting It Right’ Group established to support development of reporting framework for HSCP. \| \| Residual Risk Level\| Likelihood (2) x Impact (4) = Risk Scoring (8) \| \| Planned Risk Level \| Likelihood (1) x Impact (3) = Risk Scoring (3) \| \| Approval recommendation \| The risk level should be accepted with the expectation that the mitigating actions are taken forward. \| 7.0 CONSULTATIONS 7.1 The Chief Finance Officer, Chief Officer, Locality Managers and the Clerk were consulted in the preparation of this report. 8.0 BACKGROUND PAPERS 8.1 None. Dr. David Shaw Clinical Director DATE: 8 January 2021 Diane McCulloch Chief Social Work Officer / Head of Health and Community Care Report Author: Matthew Kendall, AHP Lead. 1.0 PURPOSE OF REPORT 1.1 The purpose of this report is to summarise the complaints performance for the Health and Social Care Partnership (HSCP) in the second quarter of 2020/21. The complaints include complaints handled using the Dundee Health and Social Care Partnership Social Work Complaint Handling Procedure, the NHS Complaint Procedure and the Dundee City Integration Joint Board Complaint Handling Procedure. 2.0 RECOMMENDATIONS It is recommended that the Performance and Audit Committee (PAC): 2.1 Notes the content of the report. 2.2 Notes the complaints handling performance for health and social work complaints set out within this report. 2.3 Notes the work which has been undertaken to address outstanding complaints within the HSCP and to improve complaints handling, monitoring and reporting (sections 4.6 and 4.13). 3.0 FINANCIAL IMPLICATIONS 3.1 None. 4.0 MAIN TEXT 4.1 Since the 1st April 2017 both NHS and social work complaints follow the Scottish Public Service Ombudsman Model Complaint Handling Procedure. Both NHS Tayside Complaint Procedure and the Dundee Health and Social Care Partnerships Social Work Complaint Handling Procedures have been assessed as complying with the model complaint handling procedure by the Scottish Public Service Ombudsman. 4.2 Complaints are categorised by 2 stages: Stage 1: Frontline Resolution and Stage 2: Investigation. If a complainant remains dissatisfied with the outcome of a Stage 1: Frontline Resolution complaint, it can be escalated to a Stage 2. Complex complaints are handled as a Stage 2: Investigation complaint. If a complainant remains dissatisfied with the outcome of Stage 2: Investigation complaint they can contact the Scottish Public Services Ombudsman who will investigate the complaint, including professional decisions made. Complaints about the delivery of services are regularly presented to the Clinical, Care and Professional Governance Group to inform service improvement. 4.3 Social Work Complaints In the second quarter of 2020/21 a total of nine complaints were received about social work or social care services in the Dundee Health and Social Care Partnership. This is higher than last quarter but still lower than this time last year. Graph 1 - Number of Social Work complaints received quarterly The graph shows that there has been a slight increase in the complaints received within Q2 compared to Q1. 4.4 Social Work complaints by reason for concern Complaints about a delay in responding to enquiries and requests have dropped from 7 to 0 this quarter which is excellent considering we were working within a pandemic at home. \| Reason for Concern \| Number \| \|--------------------------------------------------------\|--------\| \| Attitude, behaviour or treatment by a member of staff \| 0 \| \| Delay in responding to enquiries and requests \| 2 \| \| Dissatisfaction with our policy \| 2 \| \| Failure to provide a service \| 1 \| \| Failure to follow the proper administrative process \| 2 \| \| Failure to meet our service standards \| 2 \| The numbers of social work complaints, while having a slight increase this quarter, are still relatively small. The complaints received were regarding several services and suggest no themes or patterns of dissatisfaction with services at this time. 4.5 Social Work Complaints Stages and Outcomes Three complaints received were handled at a frontline resolution stage compared to five last quarter and this quarter we received six complaints at stage 2 investigation from the beginning compared to one last quarter. Of these, one stage 2 complaint is still open and under investigation, none were upheld, three were partially upheld with planned service improvements, a further two were not upheld and three were recorded as duplicate complaints. \| Stage \| Number \| \|--------------------------------------------\|--------\| \| Frontline Resolution \| 3 \| \| Investigation (Escalated from Frontline) \| 0 \| \| Investigation \| 6 \| \| Joint with NHS \| 0 \| 4.6 Social Work Complaints Resolved Within Timescales Seven of the Social Work complaints received by the Partnership were able to be resolved within the target dates. One missed the deadline minimally and the final one is currently still under investigation. Graph 2 - % of Social Work Complaints resolved within timescales The graph shows that there has been a sharp increase in the number of complaints that are resolved within timescales. The Customer Care and Governance Officer is ensuring that delays are kept to a minimum and processes are correctly followed. Meetings with Investigating Officers have unfortunately been delayed due to the pandemic. This quarter as you can see, we have had a real push on ensuring that the complaints are resolved within the timescales and we hope to keep this on throughout the remainder of the year. 4.7 Planned Service Improvements The three partially upheld complaints have all identified a cause and have service improvements planned to address these. 4.8 Scottish Public Service Ombudsman Complaints No complaints were referred to the SPSO this quarter. 4.9 NHS Complaints In the second quarter of 2020/21 a total of 41 complaints were received about Dundee Health and Social Care Partnership health services compared to only 25 in quarter one. These are complaints which have been coded against DHSCP, there may be other complaints where DHSCP have contributed to a joint response: The graph shows that during quarter two there has been a sharp increase in complaints received, bringing us back up to a more expected level. 4.10 NHS Complaints by Theme The top three themes were once again for the fourth quarter running Attitude and Behaviour; Clinical Treatment and Communication (Oral). The top three sub themes were Disagreement with treatment/care plan, Staff Attitude and Lack of support for this quarter. 4.11 NHS Complaints Stages 11 complaints were handled at a frontline resolution stage compared to 20 last quarter. Of these complaints, four were upheld, three were partially upheld and two were not upheld. This quarter saw six complaints handled as Stage 2 Escalated complaints compared to none last quarter. Of these complaints, one was partially upheld and 2 were not upheld. 24 complaints were handled as a Stage 2 complaints from the start compared to only five in quarter one. This quarter seven were partially upheld and two were not upheld. 78% of Frontline resolution complaints were either upheld or partially upheld compare to 57% last quarter. 78% of stage 2 non escalated complaints were upheld or partially upheld compared to 71% last quarter. Stage 2 escalated complaints had 33% either upheld or partially upheld. \| Frontline Resolution \| 11 \| \|----------------------\|----\| \| Investigation (Escalated from Frontline) \| 6 \| \| Investigation \| 24 \| 4.12 Closed NHS Complaints Resolved within Timescales 21 complaints were closed within the first quarter regardless of when they were received, and 95% (20) of these were closed within timescales. This is an increase from the previous quarter. Graph 4 - % of closed NHS complaints closed within timescales Of the complaints closed this quarter, there has been a substantial increase in those closed with their timeframes. 4.13 Outstanding NHS Complaints The graph below shows that there has been a decrease in the amount of NHS complaints that are overdue in the past year and with new staff working on the complaints, this could continue into next quarter. Graph 5 - Snapshot of number of open overdue NHS complaints at a given date The above graph shows that the average length of overdue complaints has decreased back down to a manageable level. This shows the work ongoing to complete the backlog of overdue complaints. Discussions are still taking place with NHS Tayside to identify how we can improve our complaint response times. However, our plan to trial a more robust and effective complaints system has been put on hold due to the current pandemic. 5.0 INTEGRATION JOINT BOARD COMPLAINTS 5.1 No complaints about the Integration Joint Board have been received. 6.0 POLICY IMPLICATIONS 6.1 This report has been screened for any policy implications in respect of Equality Impact Assessment. There are no major issues. 7.0 RISK ASSESSMENT 7.1 This report has not been subject to a risk assessment as it is provided for information and does not require policy decisions from the PAC. 8.0 CONSULTATIONS 8.1 The Chief Finance Officer and the Clerk were consulted in the preparation of this report. 9.0 BACKGROUND PAPERS 9.1 None. 1.0 PURPOSE OF REPORT 1.1 The purpose of this report is to provide the Performance and Audit Committee with an update report in relation to DHSCP Strategic Risk Register and strategic risk management activities in Dundee Health and Social Care Partnership. 2.0 RECOMMENDATIONS It is recommended that the Performance and Audit Committee (PAC): 2.1 Notes the work ongoing around risk management across Dundee Health and Social Care Partnership and partner organisations. 2.2 Notes the updated risks around Finance, EU UK Transition and Governance arrangements. 3.0 FINANCIAL IMPLICATIONS 3.1 None. 4.0 MAIN TEXT Risk Management across DHSCP and partner organisations 4.1 The DHSCP Strategic Risk Register is regularly presented to the NHST Strategic Risk Group, Dundee City Council Strategic Risk Group and Dundee Clinical Care and Professional Governance Group. Horizon scanning is also undertaken by these groups and informs the risk register. 4.2 Following recommendations made in the Risk Management Internal Audit Report in 2018 (Article XI of the minute of the meeting of the Dundee Performance and Audit Committee held on 13 February 2018 refers), work has been undertaken on a number of recommendations. The Tayside Risk Management group, which is made up of risk managers from NHS Tayside, Dundee City Council, Dundee Health and Social Care Partnership, Angus Health and Social Care Partnership and Perth and Kinross Health and Social Care Partnership is working to ensure consistency in risk management across the Health and Social Care Partnerships and their partner bodies. 5.0 Updated Risks around Finance, EU UK Transition, Covid 19 Response and Governance arrangements 5.1 The Financial risks have been updated to reflect the Finance risks have been mitigated in part by the actions completed to date following the Ministerial Strategic Group Self-Evaluation and the completion of actions raised by Audit Scotland. In addition, the enhanced communication channels between the partners and the Integration Joint Board have improved the approach to agreeing financial planning and management matters. 5.2 The EU UK Exit risk was updated to reflect the higher risk in December 2020 when a no deal exit was assessed as likely. However since the EU UK transition deal was signed at the end of December the assessed risk has been re-assessed and reflects the longer term effects of the EU UK Transition. 5.3 The 2nd wave of Covid 19 and rising infection rates and the virulence of new variants of the virus means that the covid 19 response still creates barriers to DHSCP achieving actions within the Strategic and Commissioning Plan. The workforce are also involved in supporting the mass vaccination programme. 5.4 The Governance Arrangements Risk has been updated to reflect the ongoing work to complete the actions on the Governance Implementation Plan. 6.0 POLICY IMPLICATIONS 6.1 This report has been screened for any policy implications in respect of Equality Impact Assessment. There are no major issues. 7.0 RISK ASSESSMENT 7.1 This report has not been subject to a risk assessment as it is provided for information and does not require a policy decision from the PAC. 8.0 CONSULTATIONS 8.1 The Chief Finance Officer and the Clerk were consulted in the preparation of this report. 9.0 BACKGROUND PAPERS 9.1 None. Dave Berry Chief Finance Officer DATE: January 2021 ### Dundee Health and Social Care Partnership Strategic Risk Register Extract from Pentana Risk January 2021 \| Risk Code & Title \| Risk Factors \| Inherent Risk \| Control Measure \| Control Description \| Residual Risk \| Last Modified Date \| Date Last Assessed \| Latest Note \| \|-------------------\|--------------\|---------------\|-----------------\|--------------------\|---------------\|-------------------\|-------------------\|-------------\| \| HSCR00 Dundee Health and Social Care Partnership High Level Risk Register \| \| \| \| \| \| \| \| \| \| Risk Code & Title \| Risk Factors \| Inherent Risk \| Control Measure \| Control Description \| Residual Risk \| Last Modified Date \| Date Last Assessed \| Latest Note \| \|-------------------\|--------------\|---------------\|-----------------\|--------------------\|---------------\|-------------------\|-------------------\|-------------\| \| HSCR00a1 Restrictions on Public Sector Funding \| Continuing restrictions on public sector funding will impact on Local Authority and NHS budget settlements in the medium term impacting on the ability to provide sufficient funding required to support services delivered by the LB. This could lead to the LB failing to meet its aims within anticipated timescales as set out in its Strategic and Commissioning Plan. \| \| Budgeting Arrangements \| Budget negotiations with the Local Authority and NHS Tayside to ensure a fair and proportionate share of resources \| \| 12-Jan-2021 \| \| \| \| \| \| \| Savings and Transformation Plan \| The development of the Transformation Plan and planned savings will mitigate the impact of restrictions on public sector funding \| \| \| \| \| \| \| \| \| MSU and external audit recommendations \| Action taken in response to MSU and external audit recommendations \| \| \| \| \| Finance risks have been mitigated in part by the actions completed to date following the MSU Self-Evaluation and the completion of actions raised by Audit Scotland. In addition, the enhanced communication channels between the partners and the LB have improved the approach to agreeing financial planning and management matters. \| Risk Code & Title \| Risk Factors \| Inherent Risk \| Control Measure \| Control Description \| Residual Risk \| Last Modified Date \| Date Last Assessed \| Latest Note \| \|------------------\|-------------\|---------------\|-----------------\|--------------------\|---------------\|-------------------\|-------------------\|-------------\| \| HSCRO002 Unable to maintain UJF Spend \| UJF is unable to maintain spend within allocated resources which could lead to being unable to deliver on the Strategic & Commissioning Plan \| Likelihood \| Financial monitoring system \| Development of robust financial monitoring systems to highlight key pressure areas and enable action to be taken at an early stage \| Impact \| 12-Jan-2021 \| 31-Dec-2016 \| The risks highlighted in the UJF High Level Risk Register in relation to Finance have been mitigated in part by the actions completed to date following the MSU Self-Evaluation and the completion of actions raised by Audit Scotland. In addition, the enhanced communication channels between the partners and the UJF have improved the approach to agreeing financial planning and management matters. \| \| HSCRO001 Staff Resource \| The volume of staff resource required to develop effective integrated arrangements while continuing to undertake existing roles / responsibilities / workload of key individuals may impact on organisational priorities, operational delivery to support delivery of effective integrated services. The DCC recruitment restriction and internal DHSCP vacancy management process is restricting recruitment to posts \| Likelihood \| Organisational development strategy \| Ensure organisational development strategy is agreed, implemented and monitored. \| Impact \| 21-Jan-2021 \| 31-Dec-2016 \| Service redesign of in-house Home Care Service and Care Homes is now complete. However the ongoing Covid 19 response means that the staff resource is under pressure. Remobilisation plans have been completed and will be reassessed to mitigate this pressure. \| \| HSCRO002 Staff Perception of Integration \| Negative staff perception of integration due to historical experiences and lack of communication will lead to an adverse effect on engagement / buy-in to new partnership. \| Likelihood \| Communication \| Continued communication disseminated to staff highlighting key issues. \| Impact \| 11-Aug-2020 \| 31-Dec-2016 \| Tools such as NHS Inpatients and Council feedback have been developed. However these are separate systems. Managers of integrated teams do not have access to a whole system. The Covid 19 response of DCC and NHST has also impacted on DHSCP workforce. \| \| Risk Code & Title \| Risk Factors \| Inherent Risk \| Control Measure \| Control Description \| Residual Risk \| Last Modified Date \| Date Last Assessed \| Latest Note \| \|------------------\|--------------\|---------------\|-----------------\|--------------------\|---------------\|-------------------\|-------------------\|-------------\| \| HSCR0083 Employment Terms \| Offering employment terms could expose the partnership to equality claims and impact on staff morale. \| Likelihood \| Align conditions \| Continue to monitor through staff feedback/surveys and align conditions where opportunities present \| Likelihood \| 27-Jan-2019 \| 30-Aug-2016 \| Separate terms and conditions remain an issue nationally however locally, all new recruitment is being carried out jointly with the option for many posts to choose which employer to work for. \| \| HSCP001 Capacity of leadership team \| Capacity of management team will be impacted by transition to new Chief Officer retirement. Head of Service, Health and Community Care is also performing duties as Chief Social Work Officer due to retirement of Chief SWO. In addition there is additional work due to a Locality Manager leaving their post. \| Likelihood \| Sharing of Management team duties \| New internal control to be worked on \| Likelihood \| 21-Jan-2021 \| 09-Sep-2019 \| Progress is being made to enhance overall capacity within DHSCP. The impact of the response to Covid 19 has also impacted on the capacity of the Senior Management team. \| \| HSCR0001 Stakeholders not included/consulted \| Relevant stakeholders have not been included and adequately consulted with during the development and subsequent implementation of the Strategic & Commissioning Plan which may lead to adverse political and/or reputational impact. \| Likelihood \| Participation and engagement strategy \| Ensure consultation around the development and implementation of the Strategic & Commissioning Plan is as comprehensive as practically possible and compliant with statutory requirements as a minimum. Development of participation and engagement strategy which promotes wide stakeholder consultation and engagement throughout the planning, implementation and review cycle. \| Likelihood \| 11-Aug-2020 \| 31-Dec-2016 \| The Participation and Engagement strategy has been published. \| 09-Jan-2018 11-Aug-2020 \| Risk Code & Title \| Risk Factors \| Inherent Risk \| Control Measure \| Control Description \| Residual Risk \| Last Modified Date \| Date Last Assessed \| Latest Note \| \|------------------\|-------------\|---------------\|-----------------\|--------------------\|---------------\|--------------------\|-------------------\|-------------\| \| HSCR006c3 \| Governance arrangements being established fail to discharge duties \| Low \| Review of processes established \| Implement Governance Action Plan \| Low \| 31-Dec-2016 \| 09-Jan-2018 \| Pressure of Covid 19 response mean that work to improve governance arrangements has not been progressed. The Governance Action Plan is implemanted and overdue actions are being prioritised \| \| \| \| \| \| \| \| 11-Aug-2020 \| 05-Jan-2021 \| \| \| Risk Code & Title \| Risk Factors \| Inherent Risk \| Control Measure \| Control Description \| Residual Risk \| Last Modified Date \| Date Last Assessed \| Latest Note \| \|------------------\|-------------\|---------------\|-----------------\|--------------------\|---------------\|--------------------\|-------------------\|-------------\| \| HSCR006c4 \| Uncertainty around future service delivery models \| Low \| Strategic vision \| High-level strategic vision to be articulated. Clear guidance on service development during interim period \| Low \| 31-Dec-2016 \| 09-Jan-2018 \| Communication, participation and engagement with stakeholders \| \| \| \| \| \| \| \| 11-Aug-2020 \| 11-Aug-2020 \| \| \| Risk Code & Title \| Risk Factors \| Inherent Risk \| Control Measure \| Control Description \| Residual Risk \| Last Modified Date \| Date Last Assessed \| Latest Note \| \|------------------\|--------------\|---------------\|-----------------\|--------------------\|---------------\|--------------------\|--------------------\|-------------\| \| HSCR00c2 Increased Bureaucracy \| Revised governance mechanisms between the UB and partners could lead to increased bureaucracy in order to satisfy the arrangements required to be put in place. \| Likelihood \| Support and roles \| Continue to monitor: Ensure clarity of respective roles of the UB, Dundee City Council and NHS Tayside. Ensure appropriate corporate support provided by Dundee City Council and NHS Tayside. \| Likelihood \| 21-Jan-2021 \| 31-Dec-2016 \| The Covid 19 response has meant an increase in reporting requirements to the Scottish Government, NHS Tayside and Dundee City Council. \| \| HSCR00c5 Staff resource is insufficient to address planned performance management improvements in addition to core reporting requirements and business critical work. \| Audit Scotland Annual Report 2016/17 - Performance Management Improvements Update (PAC14-2018) \| Likelihood \| Management plan \| Head of Service, Finance and Strategic Planning currently considering identified resource issues. - Action plan agreed with internal auditor and will be implemented. - Workplan for existing staff resource is in place and regularly reviewed to ensure appropriate priority given to range of tasks. - Performance management improvement capacity is on the high level risk register as part of wider support services capacity. - Through the Tayside Analytical Network joint working with NHS Tayside Business Support Unit is continuing to develop and strengthen. - Internal Audit report on workforce issues has been completed and identified capacity as an issue \| Likelihood \| 11-Aug-2020 \| 27-Mar-2016 \| Proposals for service restructure being developed \| \| Structure of teams \| Proposals for service restructure being developed \| 11-Aug-2020 \| \| Risk Code & Title \| Risk Factors \| Inherent Risk \| Control Measure \| Control Description \| Residual Risk \| Last Modified Date \| Date Last Assessed \| Latest Note \| \|------------------\|--------------\|---------------\|-----------------\|--------------------\|---------------\|--------------------\|-------------------\|-------------\| \| HSCP0001 Viability of external providers \| Financial instability / potential collapse of key providers leading to difficulty in ensuring short / medium term service provision. * Inability to source essential services * Financial expectations of third sector cannot be met * Increased cost of service provision * Additional burden on internal services * Quality of service reduces \| Likelihood \| Co-ordination to provide services \| When required services work together to co-ordinate service provision in the event of lack of provision by external providers. \| Likelihood \| 11-Aug-2020 \| 01-Nov-2019 \| Moving from a day by day management of the Covid 19 response to business as usual. Work is going on to develop categorisation of ratings for Service providers including sustainability. \| \| HSCP0002 Impact of EU Withdrawal \| Ongoing uncertainty over Brexit terms with increasing potential for a ‘Hard Brexit’ and lack of knowledge over the associated implications Impact / consequences: - loss of key staff of EU origin - council / partners / others (universities / colleges / businesses) - economic issues due to impact of Brexit on the UK / Scottish economy - loss of funding to medium to long term funding - potential for changes to legislation / regulation - possible issues over procurement arrangements \| Likelihood \| Scottish Gov EU Transition Information \| Scottish Government has planned EU Transition information sessions, and in the event of a no deal EU transition will host daily information sharing and planning meetings to deal with issues as they arise across the country. \| Likelihood \| 12-Jan-2021 \| 21-Nov-2019 \| The EU UK agreement signed on the 30 December 2020 means that there will not be disruption caused by a no deal transition. However the long term effects of the EU UK transition will still happen. \| \| HSCP0003 Impact of Covid 19 \| Coronavirus related pressure on resources (financial / workforce) will have a ‘tail’, resulting in ongoing medium / longer term pressure on the HSCP and by association on the council / NHS and patients, service users and carers \| Likelihood \| Mobilisation and Remobilisation plans \| Mobilisation plans developed for the Covid 19 response. Remobilisation plans developed to manage the move to business as usual. \| Likelihood \| 21-Jan-2021 \| 06-Mar-2020 \| The 2nd wave of Covid 19 and rising infection rates and the virulence of new variants of the virus means that the covid 19 response still creates barriers to HSCP achieving actions within the Strategic and Commissioning Plan. The workforce are also involved in supporting the mass vaccination programme. \| ## PERFORMANCE AND AUDIT COMMITTEE – ATTENDANCES - JANUARY 2020 TO DECEMBER 2020 ### COMMITTEE MEMBERS - (\* - DENOTES VOTING MEMBER – APPOINTED FROM INTEGRATION JOINT BOARD) \| Organisation \| Member \| 11/2^ \| 24/3^ \| 30/6^ \| 22/9 \| 24/11 \| \|--------------\|--------\|-------\|-------\|-------\|------\|-------\| \| Dundee City Council (Elected Member) \| Ken Lynn \\ \| ✓ \| \| \| \| \| \| Dundee City Council (Elected Member) \| Helen Wright * \| \| ✓ \| \| \| \| \| Dundee City Council (Elected Member) \| Roisin Smith \| \| \| \| A/S \| \| \| NHS Tayside (Non Executive Member) \| Trudy McLeay \| \| \| \| \| ✓ \| \| NHS Tayside (Non Executive Member) \| Jenny Alexander * \| \| \| \| \| A \| \| NHS Tayside (Non Executive Member) \| Donald McPherson * \| \| \| \| ✓ \| ✓ \| \| Chief Officer \| Vicky Irons \| ✓ \| ✓ \| \| \| \| \| Chief Finance Officer \| Dave Berry \| ✓ \| ✓ \| \| \| \| \| NHS Tayside (Registered Medical Practitioner – not providing primary medical services) \| James Cotton \| ✓ \| \| \| A \| \| \| Dundee City Council (Chief Social Work Officer) \| Diane McCulloch \| ✓ \| ✓ \| \| \| \| \| NHS Tayside (Staff Partnership Representative) \| Raymond Marshall \| A \| A \| \| \| \| \| Carers’ Representative \| Martyn Sloan \| ✓ \| ✓ \| \| \| \| \| Chief Internal Auditor \\\* \| Tony Gaskin \| ✓ \| ✓ \| \| \| \| \| Audit Scotland \\\\ \| Anne Marie Machan \| ✓ \| ✓ \| \| \| \| ✓ Attended A Submitted apologies A/S Submitted apologies and was substituted ☐ No longer a member and has been replaced / was not a member at the time - Denotes Voting Members \\ Denotes Office Bearer. Periods of appointment are on fixed terms in accordance with legislation. At meeting of the Integration Joint Board held on 30th October, 2018, Ken Lynn was appointed as Chair (the Chair of the Committee cannot also be the Chair of the Integration Joint Board). \\\* The Chief Internal Auditor is a member of the Committee and is not a member of the Integration Joint Board. \\\\ Audit Scotland are not formal members of the Committee and are invited to attend at least one meeting of the Committee a year. (Note: First meeting of the Committee was held on 17th January, 2017). (Note: Membership are all members of the Integration Joint Board (only exceptions are Chief Internal Auditor and Audit Scotland).# ^ These meetings did not take place.	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/4528-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 130, "total-input-tokens": 297297, "total-output-tokens": 51352, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 1141, 1 ], [ 1141, 3243, 2 ], [ 3243, 7465, 3 ], [ 7465, 7465, 4 ], [ 7465, 10898, 5 ], [ 10898, 13626, 6 ], [ 13626, 15501, 7 ], [ 15501, 15501, 8 ], [ 15501, 17805, 9 ], [ 17805, 22290, 10 ], [ 22290, 26300, 11 ], [ 26300, 29481, 12 ], [ 29481, 29481, 13 ], [ 29481, 29481, 14 ], [ 29481, 33030, 15 ], [ 33030, 35040, 16 ], [ 35040, 36692, 17 ], [ 36692, 38185, 18 ], [ 38185, 40252, 19 ], [ 40252, 43959, 20 ], [ 43959, 45043, 21 ], [ 45043, 45043, 22 ], [ 45043, 45730, 23 ], [ 45730, 46413, 24 ], [ 46413, 47045, 25 ], [ 47045, 47415, 26 ], [ 47415, 48369, 27 ], [ 48369, 48666, 28 ], [ 48666, 50772, 29 ], [ 50772, 51364, 30 ], [ 51364, 53179, 31 ], [ 53179, 55121, 32 ], [ 55121, 56714, 33 ], [ 56714, 58356, 34 ], [ 58356, 60382, 35 ], [ 60382, 61715, 36 ], [ 61715, 63852, 37 ], [ 63852, 65058, 38 ], [ 65058, 67043, 39 ], [ 67043, 69169, 40 ], [ 69169, 70768, 41 ], [ 70768, 72650, 42 ], [ 72650, 74498, 43 ], [ 74498, 76285, 44 ], [ 76285, 77962, 45 ], [ 77962, 79547, 46 ], [ 79547, 81904, 47 ], [ 81904, 83445, 48 ], [ 83445, 84952, 49 ], [ 84952, 86323, 50 ], [ 86323, 87990, 51 ], [ 87990, 88690, 52 ], [ 88690, 89444, 53 ], [ 89444, 90679, 54 ], [ 90679, 92710, 55 ], [ 92710, 94849, 56 ], [ 94849, 96482, 57 ], [ 96482, 97544, 58 ], [ 97544, 99185, 59 ], [ 99185, 102754, 60 ], [ 102754, 105799, 61 ], [ 105799, 107227, 62 ], [ 107227, 108973, 63 ], [ 108973, 111723, 64 ], [ 111723, 113117, 65 ], [ 113117, 114940, 66 ], [ 114940, 116538, 67 ], [ 116538, 116659, 68 ], [ 116659, 118257, 69 ], [ 118257, 118477, 70 ], [ 118477, 120458, 71 ], [ 120458, 122560, 72 ], [ 122560, 122866, 73 ], [ 122866, 122866, 74 ], [ 122866, 125025, 75 ], [ 125025, 126922, 76 ], [ 126922, 127350, 77 ], [ 127350, 127350, 78 ], [ 127350, 127829, 79 ], [ 127829, 127829, 80 ], [ 127829, 130782, 81 ], [ 130782, 133918, 82 ], [ 133918, 134097, 83 ], [ 134097, 136643, 84 ], [ 136643, 138541, 85 ], [ 138541, 139843, 86 ], [ 139843, 143351, 87 ], [ 143351, 146800, 88 ], [ 146800, 149778, 89 ], [ 149778, 151385, 90 ], [ 151385, 152734, 91 ], [ 152734, 152734, 92 ], [ 152734, 154175, 93 ], [ 154175, 157896, 94 ], [ 157896, 162012, 95 ], [ 162012, 165181, 96 ], [ 165181, 166171, 97 ], [ 166171, 166266, 98 ], [ 166266, 169059, 99 ], [ 169059, 170263, 100 ], [ 170263, 171477, 101 ], [ 171477, 171994, 102 ], [ 171994, 172990, 103 ], [ 172990, 173642, 104 ], [ 173642, 174806, 105 ], [ 174806, 175026, 106 ], [ 175026, 176695, 107 ], [ 176695, 179660, 108 ], [ 179660, 183469, 109 ], [ 183469, 185127, 110 ], [ 185127, 186762, 111 ], [ 186762, 188893, 112 ], [ 188893, 191152, 113 ], [ 191152, 191363, 114 ], [ 191363, 193335, 115 ], [ 193335, 195635, 116 ], [ 195635, 197075, 117 ], [ 197075, 198476, 118 ], [ 198476, 199216, 119 ], [ 199216, 200222, 120 ], [ 200222, 202347, 121 ], [ 202347, 203628, 122 ], [ 203628, 205709, 123 ], [ 205709, 208306, 124 ], [ 208306, 210619, 125 ], [ 210619, 212285, 126 ], [ 212285, 214360, 127 ], [ 214360, 217311, 128 ], [ 217311, 219546, 129 ], [ 219546, 219546, 130 ] ] }
665e0c111b1abeda26beecb670a97600c82bc439	Planning and financing sustainable education systems in Sub-Saharan Africa - Education Research Paper No. 07, 1993, 32 p. This is a 1998 reprint of a paper originally issued in 1993 Serial No. 7 ISBN: 0 90250 067 8 Department For International Development DEPARTMENT FOR INTERNATIONAL DEVELOPMENT - EDUCATION PAPERS This is one of a series of Education Papers issued from time to time by the Education Division of the Department For International Development. Each paper represents a study or piece of commissioned research on some aspect of education and training in developing countries. Most of the studies were undertaken in order to provide informed judgements from which policy decisions could be drawn, but in each case it has become apparent that the material produced would be of interest to a wider audience, particularly but not exclusively to those whose work focuses on developing countries. Each paper is numbered serially, and further copies can be obtained through the DFID's Education Division, 94 Victoria Street, London SW1E 5JL, subject to availability. A full list appears overleaf. Although these papers are issued by the DFID, the views expressed in them are entirely those of the authors and do not necessarily represent the DFID's own policies or views. Any discussion of their content should therefore be addressed to the authors and not to the DFID. Table of Contents Affording the unaffordable: Planning and financing sustainable education systems in Sub-Saharan Africa Part I: Issues A. Introduction and background B. Resources, costs and data C. Alternative sources of education finance Part II: Approaches to reform A. Issues in planning and budget reform B. Implementing improved systems C. Conclusions: Affordability and sustainability Affording the unaffordable: Planning and financing sustainable education systems in Sub-Saharan Africa Summary The first part of this paper sets out briefly some of the basic issues facing education policy makers in Africa, including the introduction of school fees and the private provision of schools. I argue that there has been insufficient attention paid to how policy advice is implemented, and that one of the weakest - if not the weakest - link in the chain of policy implementation is the relation between planning and budgeting, including how budgets are made. There has been a tendency to put broad educational policy objectives on the one hand and the economic planning and management of resources on the other into two separate compartments, so that while there is no shortage of analysis of what needs to be done, the means of achieving given objectives are often unspecified. This has led to unfortunate and self-defeating tensions between those who propose policies in international financing agencies and in governments, and those who must manage the implementation of these policies. As a result, most countries will experience considerable difficulty in implementing simultaneously the triple initiatives of expenditure reallocation, improved budget management and system expansion. Most African public sector budgeting procedures and formats have not changed significantly since colonial times, and they cannot cope with translating short and medium term adjustment policies into practice. The second part of the paper is concerned with approaches to strengthening and/or reforming the planning and budgeting for education in African countries. These involve the full or partial replacement of annual incremental planning and budgeting systems with approaches which may be more appropriate to current problems. I suggest that many attempts to undertake necessary reforms have not succeeded because they have been limited to interventions in the education sector ministries without reference to government budgeting and administration systems as a whole. Reforms should also take full account of the need to strengthen a potentially beneficial relationship between the state and the private sector. With these improvements better use can be made of external assistance which has, I argue, not always served those countries which benefit from it as well as it might have. The objective of the changes suggested in this paper is to enable countries to use their limited resources better and avoid stop-go educational development policies in order to achieve the capability of providing an education service which is both sustainable and affordable. In this respect governments have a crucial role to play in the process of change, even if in some aspects the 'market' will succeed where government planning has failed. Part I: Issues A. Introduction and background B. Resources, costs and data C. Alternative sources of education finance AFFORDING THE UNAFFORDABLE: PLANNING AND FINANCING SUSTAINABLE EDUCATION SYSTEMS IN SUB-SAHARAN AFRICA A. Introduction and background In many African countries, in spite of public expenditure restraint under various programmes of macroeconomic adjustment, there has been a steady increase in government expenditure on education. Although public expenditures on education expressed as shares of GDP have remained more or less constant, they have declined after debt costs are taken into account. At the same time average public expenditures per student are declining in real terms or are stagnant at low absolute levels because of population growth and increased participation. This 'educational stagflation' has long been recognised, as has the necessity of finding ways of using existing resources more efficiently and of augmenting total resources allocated to education derived both from tax revenues and 'private' contributions. There is a considerable body of literature which sets out the appropriate policy targets, but severe problems remain. However, there has been insufficient attention paid to how policy advice is implemented, and one of the weakest - if not the weakest - link in the chain of implementation is the relation between planning and budgeting, including how budgets are made. Most African public sector budgeting procedures and formats have not changed significantly since colonial times, and they cannot cope with translating short and medium term adjustment policies into practice. Although the individual citizen's 'right' to education is now universally accepted, and although governments are obliged to respond to the 'social demand' of their populations for education, it cannot be denied that the provision of education services absorbs real resources which are limited at any given time and which can only achieve in most African countries a modest growth over time. There has been a tendency to put broad educational policy objectives on the one hand and the economic planning and management of resources on the other into two separate compartments, so that while there is no shortage of analysis of what needs to be done, the means of achieving given objectives are often unspecified. This has led to unfortunate and self-defeating tensions between those who propose policies in international financing agencies and in governments, and those who must manage the implementation of these policies. This paper explores this problem and some of the solutions proposed to overcome it, with particular reference to Sub-Saharan Africa, although many of the observations and approaches are equally applicable to South Asian, Caribbean, and Latin American countries, as well as some of the former Soviet republics. It is essential that there be greater awareness of budgetary, fiscal and macroeconomic issues in the discussions of the critical shortage of finance in most African education systems. In this respect governments have a crucial role to play in the process of change even if in some aspects the 'market' will succeed where government planning has failed.5 The first part of this paper sets out briefly the basic issues, and discusses some current policy recommendations, including the introduction of school fees and the private provision of schools. The second part is concerned with approaches to strengthening and/or reforming planning and budgeting for education in African countries in order to provide a better base for the implementation of policies. These include the replacement of annual incremental planning and budgeting systems with approaches which may be more appropriate to current problems. I suggest that many attempts to undertake necessary reforms have not succeeded because they have been limited to interventions in the education sector ministries without reference to government budgeting and administration systems as a whole. Reforms should also take full account of the need to strengthen a potentially beneficial relationship between the state and the private sector. With these improvements better use can be made of external assistance which has, I argue, not always served those countries which benefit as well as it might have. The objective of the suggested changes is to enable countries to use their limited resources better and avoid stop-go educational development policies in order to achieve the capability of providing education which is both sustainable and affordable. There are a number of factors which influence the planning and financing of sustainable education systems, and they include-, (a) demographic factors (b) national economic performance, including the structure of the economy, degree of industrialisation and rural/urban economic activity, unemployment, the distribution of income, etc (c) external assistance and levels of external debt (d) patterns of previous provision and 'social demand' (e) external advisers and external 'models' (a) Demographic Factors The growth of population in most African countries has resulted in an accelerating demand for basic education, and, as a natural consequence, for higher levels of education. In general this growing demand has exceeded the rate of growth of resources available to satisfy it. Although the ratio of the 0-14 age groups to the 15-64 age groups in low income countries is predicted to fall (from an average of about 40-50 per cent in 1989 to 30 to 40 per cent by 2025), implying an increase in the size of the population of working age, the ratio of taxpayers to non-taxpayers is likely to remain much lower than that found in developed countries for some time to come, while the structures of the growing education services in less developed countries which are mainly financed out of tax revenues are arguably comparable to those of the more developed countries. At the same time the rate of urbanisation will effect the delivery of education because of the different characteristics of urban schools. (b) National Economies The level of industrialisation in different countries is an important aspect of the nature of the relationship between education and training systems and the employment markets. In this sense 'levels' of industrialisation refer to a continuum with pre-industrial countries (Africa, South Asia) at one end, moving through light and heavy industry to high technology industry at the other end. For example, countries such as Korea with high and growing quality control in industry require a very different approach and education content from countries with negligible industry and little drive for quality control. Countries dominated by low skilled rural employment differ from those with high skilled urban employment. Countries where school and university leavers are likely to be employed within a reasonable time after graduation have very different relations between education systems and labour markets from those with high rates of unemployment. At all levels of development trainability is a prized factor among employers, but in more industrialised countries basic school education and trainability are extremely important: without these attributes new entrants to the labour force can quickly become marginalised. In pre-industrial countries marginalisation may take place irrespective of education and training simply because of insufficient employment opportunities in relation to the number of qualified applicants. The issue of job creation is crucial. Increased public investment in the expansion of education systems may mean less resources devoted to job creation: the Pacific rim countries have demonstrated the strong potential role of governments in this area.\\textsuperscript{7} Expansion of education in economies with restricted employment opportunities may not always be the most appropriate use of government resources.\\textsuperscript{8} Industrial growth in Africa will be limited, and while formal education will play a direct part in this growth, it will be also significant in terms of indirect influences such as on the redistribution of income,\\textsuperscript{9} and as a base for specialised training. Although some\\textsuperscript{10} insist that the state should not play a direct part in providing finance for training, experience from Asian countries suggests that there is a case for the state doing so.\\textsuperscript{11} (c) External Assistance and Public Debt Countries in Africa, South Asia, the Caribbean and Latin America which have recently experienced a decline in their economies suffer from falling or stagnant tax revenues, and therefore from a decreasing ability to provide additional public domestic finance for growing public services.\\textsuperscript{12} In order to support the increased claims on public spending, in some countries foreign aid has assumed such significant proportions that education systems are largely supported by it.\\textsuperscript{13} The data conceal the volumes of external aid supporting education systems, which may be proportionally larger than in other sectors, and also conceal the varying applications of aid within different parts of education systems. Donors have put considerable pressure on African countries to accept financial and technical assistance to develop their education systems.\\textsuperscript{14} Yet the relation between external funding and domestic capacity to pick up the resultant capital repayment and interest costs as well as the associated recurrent and capital replacement costs has consistently been ignored, or if not ignored, it has been assumed that economic growth will take care of the problem. There have been many attempts to quantify the finance gaps, from the millions of dollars needed in the 1960s to reach 'takeoff' to the UNICEF attempt to show how much is needed to provide basic education for all.\\textsuperscript{15} In principle, the argument runs, the combination of the extension of education provision and other externally financed investments will accelerate growth and development and also fulfill basic requirements and entitlements, justified on moral grounds. However, whatever the longer term effects, the expansion of education systems has demanded a rapidly growing share of fiscal resources while tax revenues cannot keep pace with the increased demands. The resultant decline in the quality of public provision has meant that it is no longer possible to take indices such as examination results and enrolment rates as indicators of returns to this public investment. For example, a common structure of an education system is a primary-secondary-tertiary cycle which may cover 15 years altogether. If a six year primary education cycle is characterised by illiterate school leavers it must be concluded that there is something inappropriate about such a system. If schools lack books, equipment and decent buildings and furniture, the reasons for their very existence is in question. Encouraged by the Jomtien conference, most of the current literature which considers education finance appears to start from the premise that schooling for all (SPA) by the year 2000 is an axiomatic objective. There are parallels with the commitment to Universal Primary Education (UPE), which was promoted often with little real regard for resource requirements. The global objectives are endorsed by governments, which are encouraged to aim for them and are promised external finance to support their aims. Governments themselves seem to have had little real confidence that they could make sufficient resources available. There should by now be sufficient experience to realise that these targets are not attainable, and, more importantly, that trying to attain them through heavy doses of foreign aid leaves major problems of sustainability. The amount of public finance available for spending on education has been severely affected by the volume of the interest costs of government debt which have first claim on fiscal revenues. However, over the period of adjustment in many countries the volume of government expenditure has risen slowly in real terms. Social sector spending has also risen, but because of the requirement on governments to service debts the rate of increase of public expenditure is limited. The significance of the combined influences on education of the growth and distribution of population, recession, and rising interest payments, has not only reduced the extent to which tax derived public expenditures can support the growing demand for services: they have also affected the availability of private finance, that is, the total resources available. On the government side, the debt burden combined with population growth has rendered many governments' attempts to cope with the social sectors a Sisyphean task. One of the difficulties which face policy makers and sectoral aid donors in Africa in the near term is how to judge the debt problem: much foreign aid would be unnecessary were debt to be cancelled because it would allow more domestic finance to be reallocated for education. On the private side, as public sector provision, which is a function of economic capacity, declines, households are forced to contribute more of their own resources through fees and other types of tax, though in many cases there may be very little surplus in the household budgets. (d) Advisers and External 'Models' Educators from developed countries have generally not accepted that education systems may develop through 'stages', and that these 'stages' reflect the capacity of a country to provide a reasonable quality of education to its citizens within its resource constraints. A crucial factor in many countries has been the role of foreign advisers whose advice has been supported by large sums of foreign aid. Their influence has been compounded by the demonstration effects of the education systems of developed countries: these systems evolved over many years largely on the basis of their close relationship to employment markets. Countries which are 'late developers' have imported wholesale foreign techniques and institutions, including examination systems which have become the main linkage between schooling and restricted employment markets, dominating both. Although there were many who were well aware of the growing tendency of foreign aid to promote the 'western' norms of the quantitative evaluation and assessment of extrinsic educational characteristics, there has over the years been a tendency to promote the expansion of education systems by making them more complex and 'modern' without concomitant attention to assessment reform. This is analogous to the heavy promotion of better seed varieties and husbandry practices for peasant farmers while ignoring the issues of crop pricing and marketing. (e) Patterns of Previous Provision One of the main constraints on reform policy is the expectations and aspirations generated by the provision of education and training in the recent past. The determinants of this provision are complex and include cultural and social, as well as political and economic, factors. This paper does not explore this aspect in detail, partly because of its complexity, and partly because there are significant variations between countries. A principal manifestation of popular aspirations to education is in the sensitivity of political authorities to current 'social demand' and the resulting reluctance of governments to take difficult decisions on the basis of the long view rather than of short-term concerns. There are wide differences in patterns of previous provision between countries. Some have had large university sectors (at least in terms of their budget shares), while others chose not to develop post-primary education. Attitudes to girls' education vary between countries, as do local communities' attitudes to participation in schools. The status of teachers also varies. Some countries have over the years developed strong elements of private provision. In response to 'social demand', existing government budgeting and planning further consolidate short term incremental planning, reflecting a seemingly inexorable and immutable progress on the basis of past trends and views. The changes that need to be made are in many cases so large that it can be difficult to see where to start and how they can be implemented. Major differences between countries in this respect dilute the value of 'global' prescriptions. I have, in this introduction, sought to suggest that there is little reason to assume optimistically that the approaches of the last two decades will be appropriate for the next decade, a position which is directly contrasted to that of the Jomtien conference and the view that resources will be made available through the combination of efficiency measures and foreign aid in a period of growth in the nineties. The 1990s are now a third completed, and there is little evidence that the necessary steps are being taken quickly enough, if at all. The cumulative effect of the factors summarised in this section is to force the conclusion that the environment for education development in many countries is hostile to progress, and likely to remain so. The main differences between education policies which were most widely advocated in the 1970s and the first half of the 80s, and those now widely proposed by international agencies and others, arguably relate to the role of the 'market'. Much of the literature on reform is based on assumptions about 'the market', and on how reducing the role of government can create competition and therefore efficiency. Cost recovery and privatisation are often regarded not only as means of augmenting resources, but also as sufficient conditions for greater efficiency. There is at the same time a general acceptance of the desirability of Schooling for All (SFA), just as there was of Universal Primary Education, and (SFA), is widely enshrined in public education plans. These are essentially and inevitably long term objectives and do not address the problems which we currently face. This paper tries to steer a way between the Scylla of the market and the Charybdis of Jomtien. I express scepticism both about market solutions and about the feasibility of significant expansion of education systems, at least in their present forms. While the Jomtien objectives are desirable in principle, the first step must be to do what we can to ensure that governments are capable of managing the reforms in many African countries. This in itself will take up the rest of this decade. B. Resources, costs and data It is important to distinguish between educational expenditures and educational costs, and to relate them both to a given product. Analysis of education systems can be misleading because of the failure to make these distinctions. This is exacerbated by the inadequacies of data. In that policy prescriptions can have wide-ranging effects, it is most important that they are made on as full an information base as possible. The purpose of this section is to define briefly the appropriate terms for subsequent analysis. (a) Education Expenditures Budgeted and Actual Expenditures. Expenditures are actual money outlays. It is necessary for the analyst to distinguish between budgeted expenditure on the one hand and actual expenditure on the other: actual expenditures include household and other non-government expenditures. A common error in education finance analysis is the assumption that budgeted expenditures equate to actual expenditures. This is partly because the standards of public accounting in many countries are very poor, and only budgeted expenditures are available in the public domain. Publication of actual expenditures, which are often incomplete, is usually at least two years after the end of the fiscal year, and budget estimate books commonly have three types of analysis: actual expenditure (present minus two years), revised budget estimates (last year) and budget estimates for the current year. In that the expenditures can be as much as 30 per cent over or under the estimates, the use of budget data as a proxy for expenditure is particularly misleading. Total Expenditure Estimates. Another common feature of education analysis is the presentation of tables showing 'total expenditure on education', which normally, of course, show only total government (often budgeted) expenditure, sometimes of the Ministry of Education only. Firstly, household expenditure is a major component of total expenditure: at the primary level, for example, household direct expenditure on education can equal and indeed surpass government expenditures. Secondly, most education budget estimates fail to include the interest costs of capital and project expenditures, whether financed by loans, grants, or 'own' funds. Thirdly, in many countries external assistance, which may not be included in the government budget, can substantially increase total expenditures. Fourthly, it is well known that public expenditures on education and (more so) on training are made in many other ministerial sectors apart from education. These omissions or inaccuracies can result in substantial underestimates of actual expenditures. (b) Education Costs While costs to the economist are a measure of what has to be given up to achieve something, to the accountant they are money outlays (except for depreciation). Economic costs are made up of direct and indirect costs. Direct costs are usually money expenditures. Where average, or unit, direct costs are analysed, they often refer only to public expenditure divided by the appropriate unit, usually enrolments, at a given point in time for a given level of educational provision. The total direct costs of education exceed the levels of expenditure by governments, and the excess is borne by households and firms. To define the direct costs it is necessary to specify at the same time what is actually being purchased. The difference between the actual expenditures and the (estimated) direct costs of providing a reasonable quality and quantity of education is the level of under-funding. For example, the costs of production of books can be more or less estimated, a 'reasonable' level of teachers' salaries can be proposed based on various measures and indices, building costs are usually known within, say, a 20 per cent variation for any given design, and the maintenance of pupils, teachers, materials, equipment and buildings can be estimated within an acceptable level of tolerance. If we then buy what we understand as 'education' but in fact receive something different, we have purchased a different product, and its costs are not those of 'education'. If we say that we are buying 'education' we expect that what we are buying will serve its intended purpose. In this sense education expenditures do not equate to education costs in this particular time period. Total cost, however, is a wider concept, and includes the costs to society as a whole, usually termed 'social costs'. The measurement of what has to be given up to purchase education is complex. The most widely analysed indirect cost is the 'opportunity cost' to individuals and households, that is, the alternative uses to which they could have put the resources had they not invested them in education. Less widely analysed are the opportunity costs of government expenditure and of external assistance. External assistance can promote inefficiency, as in the case, for example, of 'tied aid', where recipient governments are obliged to purchase goods and services from the 'donor' country even though these goods and services might be more expensive than suitable alternatives available from other sources. Another social cost which is little analysed is the cost of tax finance. Raising and administering taxes require expensive bureaucracies. In most countries tax systems discriminate against the poorer sections of the population, or they encourage the inefficient use of resources. Finance raised through such systems has significant social costs. While we are mainly concerned with government expenditures and the planning of the education sector, it is necessary to bear in mind the nature and scope of costs of provision of education, as we will see later. (c) Data The education system analyst requires three categories of basic data, 'physical' data relating to enrolments and other quantities, financial data relating to costs and expenditures, and economic data relating to the economy as a whole. Interpretative data are derived from these basic data, such as enrolment rates, average expenditures and other ratios. National Income Accounting. At the apex of the data structure national income accounts are frequently drawn upon for policy prescriptive purposes. The unreliability of national accounts is well known, but despite this they continue to be widely used, for example, in comparing government education expenditure as a ratio of GDP between countries, and in advocating that expenditure on education reach a given level, say 5 per cent, of GDP. In these cases the numerators and the denominators of the ratios are so unreliable that the resulting ratios are of little use, especially for comparative purposes. Public Budgets. The next commonly used aggregate financial interpretative data are educational expenditures expressed as proportions of public expenditure. The most frequent failure in considering these data is the need to distinguish between discretionary and non-discretionary expenditure. Interest payments on government debt are a priority obligation in government expenditure. Sectoral budgeted expenditures are therefore secondary claims, and government has discretion on allocation. Total discretionary budgeted expenditure is therefore total budgeted expenditure after provision for local and foreign government debt repayments is made. Many analysts cite ratios which use total budgeted expenditure as the denominator, and it is not always clear from published statistics whether debt obligations are included or not in the total recurrent budget estimates. Some countries have been expected by international institutions to raise sectoral shares because of confusion of discretionary and total expenditures. If the 'gross' ratio of education expenditure to total recurrent expenditure (including debt repayment) falls over time it is difficult to determine whether the fall is because of increased debt repayments or because government policy is to reduce expenditure on education. The debt issue cannot be overemphasised and is discussed further below in relation to capital budgeting and foreign aid. The next key issue is the composition of education budgets. Different countries include different items, and Ministry of Education budgets do not include all budgeted expenditures on education in many countries, particularly those in which education management responsibilities are devolved on local government or federal state ministries. It is often difficult to determine the total public budgeted expenditure on education because of the variety of data sources that must be consulted. Published and easily available data within countries rarely provide information on education finance which is useable for detailed analysis. Few government Statistical Abstracts and Digests include budgetary data. Capital Budgets. A major data weakness is capital budgets, which are often very misleading since many contain recurrent elements and omit foreign grant and loan contributions. The servicing of foreign loans is to be found in a consolidated budget, and does not form part of sectoral budgets, although there is a case for them to be recorded there. Capital budgeting is discussed later. Educational Cost Benefit Analysis. A final point should be made about rate of return analysis. The use of internal rates of return to education has been vigorously promoted over the last fifteen years, and has had a great influence on education policy, although the reported historic 'high' rates of return have not been reflected in many cases in overall national economic performance. The technique has many serious flaws, most of them being well known (such as its inability to take quality into account, and the equation of differences in earnings with the effects of education on productivity), some less so (such as the true extent of costs and benefits, including social costs and benefits, and externalities). Internal rate of return to 'education' calculations are without doubt subject to serious upward and downward bias (which may not, contrary to the suggestions of some writers, cancel out), yet the findings, surprisingly calculated to a single decimal point, are invariably used to justify the emphasis of public investment on primary education. The use of cost benefit analysis for education policy making is not the subject of this paper, but it has had important effects on education planning and budgeting. In reality, it takes many years to redirect public expenditure from one level of the education system to another, during which time relative internal rates of return may alter between levels for several reasons, including their dependence on average wages of school leavers which may change rapidly in a short time. As such a redirection may imply the introduction of fees and private education, of which there is little experience in many countries, there are major political and social issues at stake. While cost-benefit analysis in principle provides important policy data, in practice the potential for significant error suggests that evidence of internal rates of return to schooling should be used with circumspection, if at all, particularly in countries with low school quality. C. Alternative sources of education finance Although it is by now universally recognised that public education systems in most African, South Asian, Caribbean and Latin American countries are severely underfunded in relation to what they are trying to achieve, the mechanisms for improving efficiency are not in place. Progress can only be made if planning and budgeting are improved, and this cannot happen while ancient and inappropriate government financial and planning approaches and systems remain. In general, governments must follow one or both of two types of policy to improve the quality and level of provision of education. On the one hand existing resources must be used more efficiently, and on the other resources must be augmented. A necessary condition for both must be the development of realistic budget and expenditure control systems for all government expenditures which work hand in hand with better planning. The necessity of a public subsidy to education is justified by the presence of constraints on private credit (individuals often cannot borrow to finance education); imperfections in the availability of information (parents may systematically underestimate the value of education because of lack of information); externalities (such as the apparent relation between length of primary schooling and reduced fertility rates); and the public good aspect of education. Public goods are goods which, because they cannot be withheld from one individual without withholding them from all, must be supplied communally. Access to basic education might qualify as a public good. The presence of any of these conditions indicates 'market failure', and as they are all to a greater or lesser degree applicable to education, subsidies to the provision of education services can be justified on economic grounds. At the same time, funds for education, whether from tax or non-tax sources, are not infinite, and will always be rationed. The case for providing a fully subsidised service is thus undermined by the inability of net fiscal sources (ie taking also into account direct and social costs incurred in providing subsidies out of taxation) to satisfy the social optimum, taking into full account the various external benefits to education. Even were sufficient funds to be available to support a fully subsidised system, bureauaatic inefficiency in unaccountable education services leading to 'government failure,' would have to be taken into account. A balanced approach is therefore needed. Efficiency. Much of the literature considers the option of reducing unit costs. But improvements in efficiency can take place, with or without reductions in unit costs. If we use the average cost per student as a measure of efficiency, then clearly costs may be reduced by reducing the quality of the product. It is difficult to see how average costs can be reduced in many African countries without further deterioration in the system. Some components of average expenditures should be reduced, but should result in transfers to other components in order to increase average expenditures per pupil or teacher. This is contrary to the view of those who believe that the greater role of the market permits governments to save money. The problem for the public sector is to raise average expenditures within the constraint of existing total public expenditures: and for the education system as a whole, total and average expenditures must be increased within the constraint of net additional private resources. Embedded in the proposition that unit costs can be reduced is the inescapable need for the scope and volume of publicly financed activities to be reduced. 'Efficiency' measures will yield some transferable funds in the form of available cash. This is important. For example, many education projects have had as their stated aim the increase in pupil-teacher ratios in order to reduce the total number of teachers, the resulting 'savings' then to be applied to other parts of the sector. In reality, under the usual budgeting systems, what savings that are made are rarely identifiably transferred in the form of extra cash for, say, books. They are translated into a reduced rate of growth of the education budget: increments on non-salary charges are held at the 'normal' rate. In the context of extreme underfunding it is not clear how significant such transfers will be. Sources of additional funding will tend to be found outside the normal tax system in the foreseeable future. The 'liberalisation' of the education market, the encouragement of private schools and the formalisation of cost-recovery schemes are expected to go a long way to bridge the finance gap. Most countries expect a growing proportion of total expenditure on education to come from non-fiscal sources. The main point to be made at the policy level is how far user fees can and should augment, and how far substitute for, public resources, assuming, of course, no deterioration in the quality of the product. There is relatively little evidence on which to base confident predictions of the extent to which expenditures on education can be increased through allowing a market in education service provision to develop. The development of such a 'market' would be through (a) the introduction and expansion of 'user fees'; (b) the expansion of the private education sector; and (c) the greater use of non-government sources of specific goods and (a) User Fees end 'Cost-Sharing' It seems to be widely accepted that subsidies should be focused on primary education, and that the higher up the system the lower the subsidy should be. However, because of higher costs, the ratio of subsidy to private contribution generally increases the higher up the education pyramid a student climbs. Whereas direct parental contributions finance up to half or in some cases even more of the total expenditure at the primary level, this share falls rapidly at the public secondary level. At the university level direct and indirect parental contribution as a proportion of total expenditure is often very slight. In order to reduce the burden of subsidy at higher levels many countries have introduced compulsory fees for secondary and tertiary education. User fees may replace government subsidies to education, they may augment them, or they may partly replace and partly augment at the same time. Most proponents of fees assume that fees should and will augment total expenditures. In general it seems that the approach proposed by Thobani, which has influenced the thinking of international agencies involved in education, is most widely accepted: fees should be increased so long as there is 'excess demand' for the service. As I have noted, however, deterioration in the education system changes the product and 'excess demand' has little meaning. Excess effective private demand for 'education' as a service which will clearly benefit its 'users' by enabling them to learn will not be observed because of this. In a number of African and South Asian countries parents are withdrawing their children from school because of poor quality and because they do not consider schooling relevant to their needs. Clearly, where there is substantial underfunding combined with deteriorating quality, gains from increased user fees may generate resources for expansion and quality improvement, and add significantly to total resources expended on education. However, it is not at all evident that sufficient attention is given to substitution effects. If household budget ceilings are fixed, the requirement to pay fees could well mean that money which had previously been spent on children and schools (for example, on books and construction), would be switched to fee payments, and parents would expect a greater level of public provision to provide what they themselves had previously provided. This means that no augmentation of total expenditure on education would take place. Similarly, little is known about the opportunity costs of fees paid by the 'rich' for higher education, though much is written about the need to lower taxes to promote investment by the 'rich'. It is thus necessary to distinguish between compulsory fees and voluntary contributions, and to understand the degree of substitutability between them. Where compulsory fees are concerned, a distinction must be made between fees collected by the school and used in the school, and those collected and administered centrally. Compulsory fees are in effect 'earmarked' taxation, that is, taxes collected for a specific purpose, where they are for compulsory education. As I have noted, taxation has its own associated costs, and therefore the result of charging fees which cause households to transfer expenditure from direct voluntary contributions to compulsory fees could result in a net decrease in education expenditure due to the costs of fee collection and administration. In addition, many fee proposals may not have sufficiently considered the effect on households of the combination of user charges and the tax system. The collection of fees and non-fee contributions for compulsory education outside the tax system, either through coercion or through deliberate starvation of subsidies forcing up private contributions, can increase the regressive nature of the tax system. Two broad justifications are commonly advanced for 'cost-sharing' policies. The first is that governments have insufficient revenue expenditure to finance education services fully; and the second is that a decreased reliance on 'government' revenues will promote competition and therefore efficiency. In so far as 'cost-sharing' in education has any meaning at all it refers to the sources of finance for education. Sources may be discretionary or non-discretionary for both household and government budgets. Both governments and households have limitations on what resources they can budget for any given activity. For individuals and households there are three types of 'cost-sharing': (a) voluntary contributions; (b) obligatory charges which do not go into government revenues but are retained, for example, at the school; and (c) obligatory charges which go into government revenues. Voluntary contributions may be correctly considered as cost-sharing while obligatory charges must be considered as taxes. However, where government allows for a certain level of 'voluntary' contribution by deliberately reducing subsidies, even voluntary contributions become obligatory. The basic question is what affects the relative levels of voluntary and obligatory expenditures. Taxes and compulsory fees paid by individuals are obligatory (non-discretionary) they must be paid - and hence there is no essential distinction to be made between them. Where fees are used directly for a specifically identified purpose, unlike most taxes which go into a common pot, they may be considered as earmarked, but they are nevertheless obligatory. 'Cost-sharing' does not therefore signify a division of financing responsibility: revenues still derive from citizens. Rather it signifies a redistribution of financing shares. The basic relation between public expenditures on education on the one hand and direct payments households may make apart from their normal tax obligations on the other is that the payments that households make are generally residual, that is, after public subsidies are taken into account citizens are asked to make up any shortfalls. There is therefore a clear relationship between public sector efficiency and the level of 'private' contribution: parents may be required to pay more to support government or private sector inefficiency. How can I, as a parent, influence the costs of the education which I am obliged to cover, directly or indirectly, whether for public or private education, if I want my children to be educated? Can I say 'reduce the number of subjects so at least some are well-resourced'; or 'in our school we can't afford all the teachers we are allocated'; or 'change the school year and modify the examination system to fit into the fishing calendar so my children can help in the fishing season'? I can't, of course. The whole construct of the 'market' is that it creates competition and choice, but it is obvious to nearly every parent, particularly those without much money, that in reality there is not much choice, and hardly any at all where the determinants of the costs of education are concerned. There is a major need for research into the relation between the costs of schooling and how people can pay them. At the household level expenditures may be made from current income, from borrowing, and from sales of assets. Nearly all surveys of household expenditure assume expenditures to be from current income. But if the sum total of current income is insufficient to cover household expenditures, whence comes the income to make up the difference? It must come from debt or from sales of assets. If it comes from other members of the extended family it may come from current income, or from debt, or from sales, but in aggregate the total incomes and expenditures must balance. Assets such as cows or taxis earn income. It may make sense to sell them if they finance higher yielding assets, rather than if they finance consumption. If households sell assets to finance education, assuming education to be investment and not consumption (many, if not most, surveys treat education expenditure as consumption expenditure), it is, in effect, a switch of investments out of cows or taxis into human capital. Thus, where individuals are required to purchase education, it is necessary to understand the sources of finance used for the purchase. If I believe my children will earn more from having attended school, the additional future earnings might enable me to buy two cows or two taxis, and my short-term hardship might be justified. If in fact they do not earn sufficient to have made my sacrifice worth while, I have made a serious loss. Moreover, society has also made a loss. In the past budget deficits were financed by government borrowing and foreign aid. In principle there is nothing wrong with a deficit as long as people are willing to finance them. As governments are no longer able and/or willing to finance deficits, households and firms are being asked to do so. If individuals wish to receive education and an academic certificate they will have little choice but to pay increasing levels of fees, regardless of the efficiency of government provision. This is the logic of the Thobani 'rule'. As I have mentioned, the argument is that at the primary level parental contributions should in general augment public resources, while progressively at the higher levels they may to some degree substitute for public resources, but in order to redirect the resources to basic education. In reality, this is hard to achieve. Higher government expenditure on primary education might, for example, enable poor households to release money used to finance education for other equally important uses. Furthermore, in countries where equity considerations are important in policy making, it is possible that focused subsidies such as scholarships will reduce net revenues from fees, as the costs of subsidies are balanced against the extra revenue from fees. Where fees substitute for public finance, it is assumed that the public finance thus released will be returned to the education sector in other areas. This, as I have noted, is one of the basic justifications underlying fee proposals such as those found in the cited World Bank literature, but it is by no means clear from this literature that it actually happens. I suggest that it is unlikely to happen in the absence of appropriate planning and reformed budgeting systems. (b) Private Educational Provision Much of Africa's 'modern' education system up to independence was private in the sense that it was run by missionaries. The secularisation of education and the perceived need for nation-building, as well as in some cases political activities of churches, led to an almost total take-over of educational institutions by governments. Missionary schools were not profit-making, but aimed for self-sufficiency, depending on local and foreign contributions. The reasons for encouraging the development of private schools in less developed countries generally lie with the inability of governments to provide sufficient student places from tax finance. Like fees, it is a way of capturing more private finance outside the tax system. This is deemed to be more efficient in the sense that it avoids the costly public bureaucracy necessary to administer the public system. However, it is necessary to take into account the costs of regulation. At the same time private schools, particularly in that they operate for the most part within education systems in Africa which are geared to getting pupils through examinations, may, if left sufficient flexibility, serve as centres of innovation, even to the point of shortening the length of the primary or secondary school cycle with no loss of examination success. The European experience, particularly in Scandinavian countries, provides interesting examples of this phenomenon. There is an important distinction to be made between profit-making and non-profit private schools. In the case of private profit-making schools there is no reason to suppose an equally proportional relationship between rises in household spending on schooling and total expenditure on education because of the profit which school owners take out. It is thus by no means axiomatic that the replacement of public schools by private schools will result in an equal augmentation of resources, particularly when regulation costs are taken into account.45 The privatisation of education may not necessarily favour the better off by the creation of elite private schools access to which is restricted by price, as is often believed. There may be significant incentives to compete for subsidised school places, which are allocated on entry requirements which include academic performance as measured by examinations. Examinations have distorted education systems and equated examination passes with education. To the extent that there is a relation between examination success and relative social advantage, examinations become a rationing device for future study, and favour the better off in their search for publicly subsidised school places. More importantly, whatever the economic status of students, those with lower academic achievement, which is not the same as saying those with less academic ability, may have less access to good schools.46 There is undoubtedly an important role to be played by private schools in African countries. How important remains to be seen. Private schooling should not be seen as a panacea, and its potential as a future demand on government obligations under multi-part systems must be borne in mind: where private schools may suffer financial problems there may be strong calls for government help.47 Private systems are often subsidised directly or indirectly, and may account for a proportionately larger percentage of total expenditure than of total enrolments. Indeed, the real issue is how subsidies to 'private' schools are operated, as in most countries they operate through the tax system or directly though grants. In many ways it is unhelpful to be constrained by the term 'private', and perhaps we should consider the issue more in terms of diverse forms of state funding. To realise the possibilities that exist significant changes would be required in how government budgets for education are made up and regulated. (c) Alternative Provision of Goods and Services Many countries have now contracted the publishing of school books to private sector publishers, and are contracting teachers and others to work on curriculum development, in contrast to previous reliance on Ministry of Education units to do this work. There has been less experimentation in some of the other parts of the education service, particularly in high cost areas such as the training of teachers. As teachers make up the single greatest cost component of primary and secondary education, and, at the same time, in nearly all countries perceive themselves to be underpaid and working in poor environments, a prime concern must be to improve their conditions. To achieve this they must (a) have more capital to work with (better buildings, books and equipment, etc); and (b) in most countries have improved salaries. Yet because teachers are in most cases only supplied by government which is constrained by public expenditure ceilings, neither of these improvements are likely to be achievable in most Sub-Saharan African countries in the near future. In addition, the cost of teachers to schools is fixed by centrally determined norms, expressed both in salary scales and levels of qualification. In many countries the problems of poor quality in schools are also found in teacher training institutions, and the professional capability of teachers suffers. Put another way, although teachers may possess appropriate paper qualifications attesting to years of training, they are not axiomatically well-trained teachers. This would explain to a large degree the findings of researchers which suggest that the level of training of teachers may not be significantly associated with pupil performance in many countries, particularly in primary schools.48 Any discussion of education fees and private schooling in Africa is likely to end indeterminately as most countries have little experience of the complex interaction between household and government expenditures and the quality of educational provision. The relevance of the issue to public budgeting is the need for planners to determine the amount of private finance available to supplement government finance at all levels, and to determine the effects of the distribution of subsidies on the availability of education to all income groups. The foregoing brief discussion of approaches to augmenting the resources which are available to support the development of educational systems highlights the problems facing planners in the implementation of the proposed 'new priorities'. While several key policy targets are proposed, they are often based upon assumptions that have not yet been tested and which have a number of practical difficulties attached to them. Countries should not accept such policy advice without giving careful thought to how it should be initiated and tested. This involves setting place the appropriate mechanisms to allow them to do so effectively. Part II: Approaches to reform A. Issues in planning and budget reform B. Implementing improved systems C. Conclusions: Affordability and sustainability A. Issues in planning and budget reform The approaches discussed in this part of the paper arise directly out of the analysis of issues in Part I. They are concerned primarily with the question of how to achieve sustainable reform of education systems through better use of domestic resources combined with focused applications of foreign aid. I argue that a key reason for the whole or partial failure of many initiatives, whether they be related to financing education, to the introduction of curriculum reforms, to the improvement of teacher quality, or to the introduction of greater participation of communities in schooling, to name four common reform targets, has been the neglect of budgeting processes. This neglect has now become critical because of the inability of most budget systems to cope adequately with contraction. The problems addressed in this paper are not new, as I have noted. It has long been recognised that available resources have been spread more and more thinly over more students at the expense of quality and effectiveness. In spite of this, answers to how plans and resources should be related have rarely been addressed in technical detail. While, for example, the first IIEP Fundamentals of Education Planning monograph published in 1970 specifically proposed reforms to budgeting and related techniques, training courses and technical literature did not take these proposals forward. Part of the reason was that during the 1970s economic and political conditions were such that in many countries, supported by foreign aid, there was little perceived need to make the necessary changes. In anglophone ax-colonies the same budget systems as were implanted in colonial times are still in use. The Educational Budget. The budget is the most significant influence on sectoral planning and management, and is the most comprehensive policy document issued by Government. That budgeting needs to be improved is generally recognised in the aid literature, although there appears to have been little academic interest expressed in the subject in professional journals, but less well understood are the difficulties in altering significantly the structure of planning and budgeting in one sector only. It is necessary to take into account the changes needed in the entire system of which the education sector is a part. Otherwise fundamental incompatibilities will exist between sectoral and Treasury formats. The result of the failure to change the structures of planning and budgeting has meant that exhortations to achieve greater efficiency cannot be effectively translated into practice. Furthermore, discussions of planning and budgeting cannot concentrate solely on recurrent budgeting alone, as has so often been the case. Capital budgets, in some countries replaced by 'development' budgets, is a crucial aspect of the planning process, as is the need to account effectively for the use of foreign aid. In some countries foreign aid represents a significant proportion of total government education expenditure in itself, while in others the volume may be low relative to total spending although its influence on policy may be significant. I outline below the different types of budgeting, followed by a consideration of the approaches to budgetary and planning reform which are, I suggest, necessary conditions for sectoral reform. Types of Budgeting. Budget techniques and processes can be placed at different points on a continuum which ranges from incremental approaches at one end to programme and zero-based budgeting at the other. Incremental systems are used in public budgeting in most countries and take as their starting point the budget and sometimes the actual expenditure for the previous year. These systems tend to be departmental in their objectives. Rational systems relate budgets to objectives and take into account wider objectives which cut across departments and institutions. The problem is therefore to combine the ideal with the practical. (a) Incremental Budgeting Systems Most current systems are in an incremental bid format based on line items in the budget categories. Separate ministries, departments and institutions prepare the next year's estimates in isolation from each other, adopting as their base point the current year's volume of services and expenditure levels. These estimates take the form of bids, as in an auction, and when they are aggregated they inevitably exceed the amount available to finance them. In an efficient bid system departments then adopt a systematic approach to reducing their bids. In most African countries teacher salary budgets are largely inviolate, and last minute reductions in non-salary budgets are imposed by Ministries of Finance, often with no consultation with the bidders. Control of sorts is exerted over salaries merely by allowing them to decline in real terms, although if total budgets also decline in real terms the proportion of salaries in the budgets remains constant. Disadvantages of Incremental Budgeting. This system suffers from many disadvantages: (a) It cannot cope with reviews of the base budget, and consequently bidders are unlikely to propose reductions. The objective for each bidder is to maximise the bid, and the strongest available argument is the volume of the base year's expenditures, which consequently must be maintained even if they are unnecessary, in the case of underspent allocations. (b) It encourages a fragmented, departmental approach, in which public departments which have common objectives bid against each other, even when their aims are related. This fragmentation in its extreme forms is manifested by different departments bidding against each other for exactly the same purpose.53 (c) It takes no account of objectives, but emphasises financial control of inputs. The bureaucratic imperative is to keep within budget, but no attempt is made to evaluate the effectiveness of the expenditure in achieving agreed goals. A continuing and idealised relationship between inputs and outcomes is assumed: as long as the money is spent the desired outcome is assumed to be achieved. (d) It encourages a short term view. Budgets are annual exercises. Where capital budgeting is concerned there is no room for estimating incremental recurrent budget implications, and the planning horizon is short. Advantages of Incremental Systems. The principal advantage of the incremental systems, and the reason for their robustness in the face of their deficiencies, is that they are readily amenable to the political process of negotiation.54 The base is not challenged, and disputes can therefore be focused on the incremental proposals, which in the education sector can be conveniently divided between salary and non-salary expenditures, the former being politically more sensitive than the latter. Incremental budgeting encourages compromise and the mitigation of conflict. Sometimes the political process creates pressure for the increase of a line item precisely because of the fixed nature of the base: a common example of this is boarding costs for secondary school pupils. The final decisions on the budget, whether from the Ministries of Finance or from political sources, are invariably removed from the budget managers, who may be among the last to be notified, and hence there is little room for conflict. The political dimension cannot be ignored. The failure of many budget reforms had its roots in the resistance of political authorities to reviewing and cutting programmes which in some way would threaten their positions or even government stability. The result has been, however, a progressive deterioration of education systems in times of financial stringency, as no means have been available to adapt services to available resources. (b) 'Rational' Budgeting Systems The combination of more or less fixed base budgets and concern with quantities of throughput rather than with quality and quantity of output must be characterised as an irrational combination for planning and budgeting purposes in the sense that the level and allocation of resources are not derived from a reasoned consideration of relative priorities. 'Rational' forms of budgeting require that the justification of each item of expenditure be related to a target output, itself related to an overall policy goal or set of goals for the education sector and for the economy as a whole. Programme Budget Systems. At the other extreme from bid budgeting are Planning Programming Budgeting Systems (PPBS), referred to here generally as Programme Budgeting (PB). Although budgets are, in principle, plans expressed in financial terms, in practice, particularly in government budgeting, their construction may become divorced from specific objectives and targets and become driven by other criteria. Programme Budgeting is basically an approach to the formulation of plans and budgets where attention is focused on objectives, and activities are grouped into 'programmes' each one of which is concerned with a single objective. In a company this approach is an alternative to departmental budgeting where each department of the organisation makes a budget. Instead, planning and budgetary control may cut across departments where each department is concerned with a part of a programme. The application of the approach to government budgeting may or may not alter expenditure control mechanisms, but will affect how the budget is built up and how the activities on which the budget is based are monitored. The mechanics of PB are broadly as follows: (a) Establish sectoral policies with overall goals broken down into programmes with defined objectives, sub-objectives and activities; (b) Analyse programmes in terms of (i) identification and quantification of resources required to meet objectives (ii) existing resource allocations (iii) identification of alternative ways of achieving the objectives derived from needs analysis (iv) comparative quantitative and qualitative evaluation of alternatives and their social and economic costs and benefits; (c) Prepare budgets on the basis of the analysis, with narrative statements of output measures and justification; (d) Feedback and review. Zero-Based Budgeting. A form, which in some ways is less extreme and in others more, is Zero-Based Budgeting (ZBB), which requires that the total cost of every item included in a budget be justified and approved. No base or minimum expenditure for any activity or budget line is automatically acceptable. The approach forces an evaluation of all expenditures and their associated activities. ZBB seeks to expose functions and goals which may have exhausted their usefulness. In its purest form PPBS is a limited technique because of its complexity. It was introduced into US and UK public budgeting in the 1960s and 70s, but its attractions began to fade. There are practical problems in allocating activities to programmes and developing accounting systems that cut across departments. There is considerable potential for conflict as base budgets are regularly reviewed. Within government structures it is difficult to encourage multi-disciplinary approaches, particularly if it means a reduction in the volume of activity in a department in order to rationalise. Finally, there is a danger of policy instability and frequent major changes, often occurring because planners were wrong in their initial assumptions and forecasts. They became replaced by systems which retained elements of PB, with enhanced capability for regular value for money surveys of programmes and improved virement systems. As with PPBS, ZBB is impractical as a standard system. It is not in general physically possible to subject programmes and activities to annual reviews of their base assumptions. It is, however, possible to establish ad hoc mechanisms for scrutinising the base, such as value for money studies. These, together with elements of PB, form the basis of a system of practical budgeting which is feasible in its aims and techniques, and flexible in its mechanisms. Education planners will readily recognise the features of the system: they are the basis of effective planning. It is possible to develop approaches to budgeting which take account of the strengths and limitations of each system and of political and bureaucratic realities. In brief, the overall objective of any reform to budgeting must be to combine the planning function with the budgeting function, and to subject financial allocations to proper scrutiny of the activities which they support. New budgeting and planning procedures must retain the virtues of the traditional systems while at the same time they must reduce its defects. Advantages of Programme Budgeting. There are two key advantages of the programme approach to the budgeting of public resources. First, it demands by its very nature participatory planning and policy making from the bottom up, and it hence makes the allocation of public resources more democratic. This is important when resources are inadequate: public dissatisfaction can be minimised if there is a broad consensus on their disposition, and enhanced transparency creates a better atmosphere for the introduction of cost-sharing. Secondly, plans can be monitored, and budget control ceases to be limited to ensuring that financial ceilings are not breached. It provides a means of short term monitoring of targets which can only be achieved if the resources allocated to them are realistic in the first place. In other words, plans are directly related to available resources. Effective budgeting depends on good estimates of what resources are available. Under incremental budgeting, even if budget ceilings are given in advance, institutions within the system still benefit from trying to bargain higher shares, with the main arguments revolving around their previous allocations. The reduction of the volume of activities to be supported by the budget is rarely an option. Institutional planners may build up their budget bids on, for example, numbers of pupil places, books required, etc. but these bids are rarely derived from a conscious prioritisation of activities, but rather from maintaining or improving the status quo. It is unlikely that a system which is based only on incremental budgeting can effectively incorporate a process of ranking activities in order of priority and costing them. This is made more difficult by the need to effect changes over periods of more than one year. For example, teachers' salaries have over the years in many countries become treated as fixed costs, and all other charges to the budgets are residual, yet everyone recognises the absurdity of employing people who cannot do their work because of inadequate facilities and equipment and who are inadequately paid. Education systems are major employers, and this makes restructuring difficult because of the human implications of reductions in the total system: it is difficult to plan a way out of the problem in the absence of immediately available and substantial additional resources. Financial Planning Systems. In order to overcome this problem, systems which may be described as 'financial planning' or 'volume planning' systems are increasingly employed. These are concerned with longer planning horizons, usually of three years, and are characterised by the advance provision of expenditure guidelines, joint capital and recurrent budgets and a more relevant budget specification and classification than the line item budgets described above. However, their focus is still primarily incremental and they do not involve a priori justification of the base budget. The emphasis is still a departmental one, and the same criticisms relating to the measurement of outcomes may apply. However, when considered on a rolling basis with programme budgets, they become powerful tools for medium term planning. B. Implementing improved systems The main problem which in many cases seems almost insuperable without major political commitment is that rational budgeting techniques in education sectors cannot be introduced effectively without reforming total budget systems, across all sectors. The approach to realising reform is described below, and, as I argue, the approach must be at a reasonable pace. Its basic elements are: (a) the introduction of linked rolling plans and budgets, which involves: (i) strengthening macroeconomic forecasting for the purposes of overall government revenue estimation (ii) better estimation of domestic revenues for education (iii) identification of near-term education sector objectives (b) strengthened decentralised processes in planning and budgeting, involving: (i) a more 'pyramidal' planning structure (ii) identification of 'planning/cost centres' for planning and budgeting purposes (c) the introduction of programme elements into budgets, which involves: (i) revisions of budget formats and classifications (ii) identification of programmes (d) reform in capital budgeting (e) better procedures for planning and reporting foreign aid grants and loans (f) improved expenditure estimation (g) more accountable budget implementation and improved expenditure control (a) Rolling Plans and Budgets Rolling expenditure planning enables governments to have a medium-term perspective of the future financial obligations created by existing policies. A three year perspective is usually considered reasonable and feasible. Revenue and expenditure budgets are made for the current year and for the next two years, and as each year draws to a close, a new third year is added. Rolling plans should be distinguished from development plans, which are mainly concerned with new policies and interventions. They are not substitutes for annual budgeting, but are part of the process of preparing for annual budgets by setting indicative planning targets for the ministerial sectors. They allow sector planners to prepare forward estimates of their financial requirements which are then considered in relation to the predicted available resource ceiling. The technique allows time for sector planners to adjust their plans and expectations to resource constraints, and gives a certain degree of security about the future. In many ways, the adoption of medium term forward budgeting by its very nature pushes the system towards programme budgeting. Most of the policy reforms discussed in the first part of this paper need to be tested in the countries where they are introduced: experience in other countries may not necessarily be relevant, though some have more evidence of success than others. By establishing mechanisms whereby they can be tested without major disruptions governments will have greater flexibility to innovate and also insure against effects of failure. Data deficiencies can be remedied and policy makers alerted in good time to problems which may arise. Rolling planning and programme budgeting are essentially 'bottom-tip' in character, and the effects of policy changes can be evaluated within the normal planning process as managers respond to changes. Improved classification of revenue and expenditure can ensure that there is greater transparency in government budgeting, allowing inter alia the assumptions behind fee and local taxation systems to be tested adequately. Economic Forecasting. The common and conventional reaction of civil servants accustomed to the old British budget procedures is that government cannot safely predict what it will be able to spend next year, and therefore cannot make advance budgetary commitments. In many countries education sectoral allocations have sometimes not been approved until after the start of the fiscal year. While in some instances this is understandable, there is a certain absurdity to this view when considering education systems and the predictability of their base financing requirements: the main issue is by how much expenditure can be increased. It is possible to make reasonable predictions of government revenues over a three year period, and to make sufficient allocation to education to cover 'core' expenditure, and then to allow for under or over estimation which would mainly effect the rate of increase of education expenditure, perhaps through contingency budgeting. The revenue forecasts can be adjusted every year, and, of course, during the year. The assumptions on which they are based should also be made known so that sector planners can evaluate them and be prepared for changes. Estimation of Education Sector Revenues. Most education planners would prefer to have some indication of the likely future allocations to education to no indication at all. A weakness of line item budgeting is that it encourages planners to defend existing budget allocations rather than to seek better ways of allocating their revenues: if it becomes apparent that a particular line is no longer important it is difficult for planners to argue that they should keep the sums allocated for transfer to another line, which would then receive a proportionally greater increase than the 'normal' rate of increase. The base for education planning is enrolments in educational institutions: it is from these that all physical requirements derive. Enrolments can reasonably be predicted, although there is a surprising number of countries which do not have up to date and acceptably accurate enrolment data. The more certainty about the level of finance in the near future, the easier it is to plan realistically for institutional maintenance and growth, and also to programme significant changes in systems. Planning on an annual basis can be a barrier to change. If it is estimated pessimistically, any additional revenue expenditure can be contingently planned, on a percentage basis (for example, 20 per cent of any additional to forecast total revenue will be allocated to education), and/or against contingent budgets (if further resources become available, supplementary budgets which have already been drawn up are ready for implementation). At the end of each fiscal year plans and budgets are prepared for the 'new' third year, on the basis of the sectoral expenditure forecasts given for that year. Without the parallel introduction of rolling multi-annual budgeting it is likely that all budget processes will be pulled back to annual incrementalism. It may also be the case that some of the objections to incremental planning can be overcome by multiyear planning, thereby reducing the scope of necessary changes to the system. Consolidated expenditure forecasts should distinguish sources of revenue. Thus government budgets alone may not reflect the full costs of the system, but obligations to finance the system fully must be defined in plans. If this is not done, policy decisions about relative allocations within the sector become meaningless. For example, if the university sector receives one half of its total revenues from domestic resources, and, say, the other half from foreign aid; and if the planned structure of total education expenditure indicates a desired proportion of university expenditure as being no more than 15 per cent of total expenditure; the government budget may reflect such a proportion, but in terms of total expenditure the proportion might reach, say, 25 per cent because of relative favouring of universities by foreign agencies. Once revenue forecasts for education are available, they need to be broken down to the sub-sectoral levels (primary, secondary, tertiary, etc); and then to the different planning/cost centres (see below). Medium-Term Sectoral Planning. Multi-year budgeting encourages medium-term sectoral planning. It should also discourage an excessive concern with long term vaguely quantified strategic plans (such as ten year plans), which are necessary, but which should be relatively short statements of policy and intent. The failure of most African countries to sustain progress in achieving plans is sufficient warning of the inadequacy of the long term planning approach. The three year plans will be the expression of the detailed direction of the system. If revenues are on a falling trend, then planners are in a position to plan for retraction (or lack of expansion) rather than wait for a suddenly imposed regime of expenditure cutbacks. (b) Improving the Planning System A necessary condition for the introduction of better planning and budgeting is improvement of the processes of plan formulation. Under the current systems in most countries, Ministries of Finance in the end are the real policy makers, particularly in times of contraction. There is little point in improving the processes because in most cases the work which goes into developing budgets is wasted when the final budget hearings take place. In other words, planners and the people on whose behalf they are supposed to plan are disenfranchised and subject to last minute arbitrary decisions. This has become a way of life and is accepted with resigned fatalism. Planning and budgeting should not be passive tasks. Plans and budgets need to be implemented, and accountability for implementation should rest on those who have formulated them. Many, if not most, systems tend to divorce the planner from implementation, and in top-down systems such as those in most African countries, planners (and politicians) make decisions for others to implement without extended and real consultation. Strengthening educational planning and budgeting would include the introduction of a pyramidal structure of planning and budgeting which would involve all relevant players in the process. The obvious basic unit of planning activity is the education institution. At the primary level the school might in principle be considered as a centre of activity, although primary schools would probably not be feasibly translated into planning/cost centres (a cluster system would be more effective). In many countries this is not dissimilar to earlier education systems which emphasised local control. At the secondary level it is more feasible to introduce an element of school based budgeting and planning. Pyramidal Planning Structures. In a system which contains a number of layers in the planning and budgeting pyramid, a longer budget time horizon allows planners to devolve many planning functions. Over time more and more disaggregated budget centres could be informed of the resources available to them on a three year rolling basis. The experience of voluntary agencies working in basic education, for example, demonstrates the feasibility of allowing village committees how to decide to allocate given sums of money. The shape of the system is illustrated in Figure 1. Figure 1: Pyramidal Structure of Education Planning and Budgeting \| Overall sector strategy, planning and budgeting \| Joint function of central ministries, including finance and education ministries \| \|-----------------------------------------------\|--------------------------------------------------------------------------------\| \| Sub-sectoral planning budgeting, and expenditure control. \| Sectoral ministries. \| \| Regional planning, budgeting and expenditure control. \| Regional \| \| Institutional budgeting, planning and expenditure control. \| Universities and colleges; secondary schools \| \| District budgeting, planning and expenditure control \| Districts \| \| Sub-district budgeting, planning and expenditures control. \| Sub-district agencies, schools, communities. \| A strength of this approach lies in the legitimation of the allocation of reduced and insufficient finance for given activities: if communities and institutions can decide how to spend their limited resources rather than have it decided for them they are arguably more likely to 'own' their schools and institutions and contribute to their development. There are some important implications of the approach at the school level, most particularly relating to the training, recruitment and payment of teachers. The heterogeneity of education systems must also be recognised. Approaches to budgeting at primary, secondary and post-secondary levels should differ, and be related to accountability for budget implementation. While in rural areas primary schools are community institutions, secondary schools and urban primary schools are often less community based: in these cases school governance becomes an issue. Universities are in many ways the easiest institutions in which to initiate budget reform, and they lend themselves well to programme linked budgeting, although experience suggests political rather than practical difficulties work against such reform. Thus, a key feature of the eventual system would be the final realisation of participation of school communities in decisions about the allocation of subsidies: this has been a paper policy in many countries for a long time. For example, primary teachers may fail to arrive at their postings because of the absence of accommodation, remoteness, and other factors. Many school buildings are in a state of collapse. Over time the teaching profession becomes demoralised by a persistent lack of resources, low pay and difficult conditions, and no amount of training and exhortation will be effective. The mistake is to believe that planners and educationists can always decide what diverse communities want to do about the problem. At the moment, for example, when the teacher does not arrive at post, the salary is clawed back by the Treasury. The school has effectively lost a significant part of its budget. This is because of the bureaucratic division between salaries and non salary costs, which could be modified under a reformed budget system. There is no a priori reason why funds budgeted for salaries cannot be vired to provide a better environment, or buy materials, or in any other way enhance the quality of school life. Planning/Cost Centres. At present most countries have a structure of district education offices and local government, and it is usually possible to allocate revenues between them. These are in effect 'cost centres' for primary education and sometimes secondary education. At the post secondary levels budgeting is usually done at the institutional level. Under a rolling plan system cost centres can be given a reasonably firm allocation for the next year as well as indicative allocations for the subsequent two years. As planning capacity is extended and strengthened at district and local authority levels, the districts themselves can create further cost centres, as shown in figure 1. (c) Programming the Budget I have noted that the main reasons for the failure of programme budgeting to be widely adopted lie in the difficulties that political and institutional authorities have in reexamining the base budget, and in the complex ways in which the technique has tended to be introduced. An examination of the programme budget formats which have been tried confirms that they have required a great amount of skill and time. It should be noted that many of the recorded attempts to introduce programme budgeting did not take place in the framework of forward expenditure planning on a rolling basis. However, programme budgeting should not be regarded as a fixed system: there is no 'right' approach (see the box for an outline description of the main elements). Indeed, the paucity of experience in the application of its techniques ensures that every approach to its introduction will be original, which may have the advantage of ensuring that it is locally relevant. One major difference between the experiences of many countries in the recent past and now is the rapid diffusion of micro-computers over the last decade, particularly the last five years. Its introduction should be gradual and be accompanied by intensive training within the contexts of the institutional changes described above. I do not propose major upheavals in budgeting and planning. Experience suggests that the success of past attempts to introduce programme budgeting is more to be found in improved practices after the 'pure' technique is abandoned, rather than in major permanent change to the financial system as a whole. It is for this reason that I emphasise in this paper the need for improved planning as it relates to financial requirements to support plans, rather than propose a set technocratic solution. Elements of the budget can be programmed, and education budgets lend themselves to this approach, for a number of reasons, including the following: (a) a large component can be centrally managed, such as teachers' salaries (although ways of introducing flexibility into teacher recruitment and posting should be sought); (b) the relation of teachers and the associated 'capital' (books, materials, classrooms, etc) they require is relatively easy to determine; (c) some components of the budget, such as universities, colleges and large schools, can themselves programme their institutional budgets, which can still be presented in the sectoral budget estimates as lump sum line items; (d) similarly, decentralisation of budget formulation (eg to districts) can involve programme budgeting at the decentralised level, with a simplified presentation to the Ministry of Education, thence to Finance. Budget classification is at the heart of programme budgeting (see box). The main problems arise when expenditure classifications become too complex, but it is possible to avoid this problem by not being too ambitious in the design of the system, as I have noted. It should always be borne in mind that the basic purpose of programme budgeting is to relate plans to resources and then enable planners to evaluate outcomes by stating objectives, goals and targets, and relating outcomes to the resources used to achieve them. The easy availability of micro-computers and accessible software allows a great deal of flexibility in budget construction. It is possible to build up programme budgets without affecting expenditure control and accounting systems, one of the main problems experienced in past attempts to programme budgets. Budget codes enable budget items to be 'cross-walked' from programme budgets into line item formats. The computer programming required is not complex. The development of the system can thus take place over time, and it is not necessary to overturn the line item format in order to introduce programme budgeting. The extent to which the easy availability of computers takes risk out of budget reform is not fully appreciated. An Outline Description of Programme Budgeting The education system as a whole is broken down into 'programmes'. These might simply be 'primary education', 'secondary education', 'technical education', 'higher education', 'special education', and so on. One programme might be the maintenance of the existing system. Each programme is broken down into objectives and sub-objectives. Objectives might be 'curriculum development', or 'reduction of early leaving', or 'instructional programmes' or 'support programmes'. They can be very close to existing classifications in many instances. A sub-objective of 'curriculum development' might be 'new maths materials'. Objectives are in turn made up of activities. It should be noted that one of the most common problems is to avoid double counting: for example, an activity in the sub-objective 'new maths materials' might be the training of teachers, which could itself be another objective. To achieve a specified objective a number of activities may be undertaken which cut across departmental boundaries, such as would occur with a sub-programme 'increase girls' participation' in the programme 'primary education'. The budget should relate to Government policies and goals, and therefore the justification for spending must be tied to these policies and goals, contained in the narrative statement for each activity. Goals cannot normally be achieved in one year, so that annual targets (or attainable goals) are necessary. The target must be a quantitative expression of policy, and any programme may have more than one target. Activities would tend to have one target. It must be possible to monitor targets. Expected outputs would be specified. Plans would therefore need to be broken down into a series of annual work programmes which can be accomplished with available resources. There are likely to be significant variations in approach to budget reform at the different education levels. Universities and large secondary schools, for example, can prepare institutional programme budgets, while at the primary level budgets are likely to cover the whole sub-sector. The introduction of programme budgeting to education should be governed by a number of broad principles. First, it should be slow and be piloted in selected regions/districts. Second, programmes should be broad at first, thus changing the minimum amount of the current formats. Third, the principle of relating plans to budgets and vice versa should apply to all main expenditure heads: in other words, programme budgeting should at least cover a part of all main spending. At the same time the type of budget process which is being aimed at should be defined, even if it takes many years to get there. Above all, experience suggests that reform of budgeting systems in one sector alone will create tensions with the Ministry of Finance systems, and that this will erode the effectiveness of the reform: financial systems must change Budget Formats and Classifications. As I have noted, budget classifications must be able to reflect the rolling forward expenditure plans. The purpose of classification is to make government operations transparent and to render them amenable to economic analysis. Under incremental budget systems the most that can be said about education sector budgets relates to issues such as the balance between salary and non-salary budgeted expenditures, or the 'low' expenditure on supplies. Sector 'overheads', such as planning and administration, cannot easily be analysed. The budget gives very little idea of what is actually happening in the system. Revenue classifications should distinguish different sources of revenue, such as revenue from fees (both direct and through loan recovery), foreign aid (analysed between grants and loans), local taxes, and so on. Both revenue and expenditure classifications should distinguish between capital and recurrent finance. At the same time capital and recurrent classifications should be standardised: capital expenditure should be included in programmes alongside recurrent expenditure, and the budget codes should be the same. This goes a long way towards avoiding the problems that arise from double-budgeting. For example, if sub-programme 230 is 'curriculum development', resource centres to be constructed under the capital programme would have the same sub-programme code as recurrent expenditures for, say, salaries of curriculum developers. In this way all expenditures associated with curriculum development would be transparent, and the relation between capital spending and associated future recurrent finance requirements would be clear. (d) Capital Budgeting In general, capital expenditure is an outlay which is of value in the provision of benefits beyond the end of the year of account. This does not imply that capital expenditure is by definition 'developmental' while recurrent expenditure is not. Capital expenditure can either be made out borrowed funds or out of internal, or 'own', funds. It has been long recognised that capital expenditures in education systems in developing countries have resulted in an expansion of assets which cannot always be maintained or replaced, and which have had considerable finance costs. Foreign aid has contributed significantly to capital expenditure, as I have noted. Most existing approaches to accounting for capital expenditure are based on the analysis of loan principal and interest. Where capital expenditure is financed by 'own' funds or by grants it appears in the accounts only in the year in which it was made, as there are no interest costs attached to it. More usually, perhaps, foreign aid grant expenditure does not appear at all in capital accounts. The costs of public sector services are therefore linked to financing decisions and not the actual use of assets in providing those services. As loan repayments and interest costs are not included in the education sector budgets, the costs of asset use are not included in calculations of educational costs, as I discussed in the first part of this paper. Even were loan repayments to be included in the sector budget, where the main source of capital finance is grants there would be no entries for finance costs. Fixed assets are, to the education sector managers, debt free, and this explains much of the poor accountability for asset stocks. In general, the acquisition of a fixed asset brings with it three elements of direct expenditure: the initial outlay; the maintenance of the asset through its lifetime; and the interest expense where the asset is financed through borrowing: where it is financed through grant aid or 'own' funds, a common practice in public authorities in developed countries is to apply notional finance costs. Of course, the indirect cost of grant aid is the alternative use of the finance, which, in reality, may not be an option, as in the case of tied aid. The main differences between capital budgeting in the private and public sectors is that in the private sector provision is made for depreciation of fixed assets, ensuring that the profit and loss account bears a charge for the use of the asset, and that distributable profit takes this charge into account. Depreciation is the measure of the reduction of the economic life of the asset as it wears out or is consumed. It should be allocated so as to charge a fair proportion of the cost or valuation of the asset to each accounting period expected to benefit from its use. Depreciation allowances reflect both the charges for the use of the asset and for maintaining the capital in the business intact. Public sector assets are not normally depreciated. The consequence of this is that the costs of services are not separated from decisions about how they are financed and that there is no provision for asset replacement. Although the public sector has traditionally not depreciated assets, there is considerable interest in a number of countries in this issue. In the UK, for example, local authorities are being recommended to change the way they account for assets, including the introduction of depreciation charges. This will involve the standardisation of asset lives: for example, schools are given a 50 year life, furniture 15 years and vehicles 3-8 years. All assets are to be valued at replacement cost (unless they are to be discontinued, such as a school closing down). There are compelling reasons why the introduction of better capital accounting might not be feasible in African countries, including its potential complexity, the difficulty of valuing many assets, and the lack of working accounting procedures. However, there has been in many countries an undoubted tendency to create assets which cannot be replaced or maintained, particularly when they are financed through external grant funds. The introduction of depreciation accounting in public budgets would create a register of assets and asset values; and ensure through the budget the proper provision There are two categories of conclusion from the foregoing discussion. The first is that education authorities in most African countries have little incentive to protect the value of assets and make provision for their replacement. The second is that they are not involved in the management of finance costs, and therefore have little interest in them. Ways of tackling these problems should be sought which suit the systems of individual countries. Where, for example, management is devolved upon local governments, local accounting systems could be strengthened over time to the point where they can produce balance sheets showing asset values. In most countries such a time is probably far off, though education sector institutions, such as universities and autonomous colleges, should keep proper capital accounts. The budgeting and accounting conventions to be applied to private schools could include the requirement that revenue accounts bear a charge for depreciation. This should certainly apply to those instances where private secondary schools receive grants of public money to finance capital assets. A condition should be that they present their yearly audited accounts to show that proper provision is made for asset replacement. This would impose discipline on expenditures and help to create reserves. Programme budgeting requires that the purchase, maintenance and replacement of assets acquired through domestic or foreign finance be included in the budget for each programme. Most capital expenditure programmes such as school building and equipment, or even textbook 'programmes' take place over several years. Under a rolling system future capital replacement requirements can be foreseen and built into the future budget. At the institutional level it may be possible to introduce procedures so that reserves can be built up over time for asset purchase. The concepts of capital maintenance and replacement are central to the achievement of sustainable systems. While in many countries they are almost irrelevant because of the acute underfunding in recurrent budgets, it is important that discipline be imposed. Depreciation accounting is the standard and effective way of encouraging good use of assets, and, although it may not be a viable alternative for many years in most African countries, the concepts which underlie it should be carefully considered when building new budget systems. There is a good case for aid 'donors' to take more interest in how the assets they have helped to finance are protected. (e) Budgeting Accounting Foreign Aid I have noted that foreign aid has played and is playing a major part in the development of the education systems in many countries, and that a good deal of aid is not included in normal government budgeting and accounting systems. There are several reasons for this, including the lack of confidence of many 'donors' in government financial procedures and the significant amount of foreign aid which is purchased outside the recipient country, such as technical assistance and certain goods. Advantages to recipients of keeping aid out of normal budget processes include access to flexible funds which bypass government budget controls. In many countries aid in the form of balance of payments support is increasingly important, and has brought with it its own problems, including those associated with the use of, and accounting for, counterpart funds. However, sound budgeting must be comprehensive, and all government revenues should be paid into, and all expenditures paid out of, a single Consolidated Fund. While this state of affairs may, in the case of foreign aid budgeting and expenditure, be difficult to achieve, it should, as in the case of better capital budgeting and accounting, be a target. External assistance to education brings with it three inherent dangers. The first is that it encourages expansion beyond the capability of domestic resources to service the expansion. The second danger is the encouragement of inappropriate technology and structures, and the third is the resulting rise in expectations accompanied by a dependence on 'donors'. All of these can create an excessive dependence on foreign resources to maintain the system unless foreign aid is planned for in a rational manner to fit into existing priorities. Foreign Aid and Education Expansion. General literature on foreign aid tends to concentrate on agriculture, water supply, industry, and sectors where outputs can be relatively easily measured. Where education is discussed it is in terms of physical achievement which is invariably expansionary. Rising enrolment rates are assumed to be a positive achievement, and a well-educated population is assumed to be a necessary condition for economic growth. Whether these assumptions are fair or not, an important characteristic of the education sector is usually ignored: it is in most countries the single greatest item of public expenditure after defence. Expansion of education provision almost always means an increase in public spending. The seemingly easy availability of development finance encouraged countries to experiment and accept foreign initiatives with little thought to their sustainability or appropriateness. Foreign finance promoted the expansion of education systems to the point where they sought to reach all sections of the populations, which became accustomed to the idea of universal provision. At the same time the expectations of education managers were raised while, in many cases, they concurrently became to greater or lesser degrees de-skilled because of the tendency for 'donors' to design programmes themselves and for hierarchical and authoritarian civil service structures to ignore local managerial staff. In some countries external assistance comprises nearly all the 'development' expenditure in education sectors, although there may be little apparent relationship between 'development' expenditure and recurrent budgets, a relationship which is to be expected because each new investment should carry with it additional recurrent obligations. Development programmes have tended to be adjusted to a level permitted by available foreign exchange, and additional resources for meeting local costs have often had to come from inflationary sources. Expansion of education sectors appears to have been frequently determined solely by the availability of foreign exchange from foreign aid, with little reference to what each country can afford to maintain from its own fiscal resources. The alternative is to deploy external assistance at a reasonable level to support domestic deficits, and of course, in the case of foreign loan finance, to support debt repayment. In many countries the proportion of foreign aid accounted for by the costs of technical assistance is around one quarter of the total, and in some the total expenditures on technical assistance exceed the civil service salary bill. Technical assistance is rarely passed through or reported in budgets. While some countries insisted that technical assistance be integrated into the public service, over the years agencies required that their projects operated autonomously, outside 'normal' structures. Failure to account for the expenditures on technical assistance distorts many cost analyses in the education sector: examples include curriculum development and higher education. A key issue is therefore for countries to regain, where they have lost it wholly or in part, control over education systems and their future development. One of the necessary conditions of doing so is to improve budgeting and accounting for foreign aid. The first step is to ensure that aid to the education sector reflects sector priorities. The best way to identify priorities is to consider what they would be in the absence of foreign aid, in other words, how the sector would be planned for on the basis of domestic resources only. Domestic resource planning and budgeting does not necessarily imply that countries should try to dispense entirely with external assistance. It is a way of encouraging planners and managers to identify core funding requirements of the sector. Underfunding. 'Underfunding' has tended to express the finance gap between a reasonable level of funding for the education services that actually exist and the available resources to support them. The concept excludes by implication any reduction in the scope of services, and is used as a justification for external assistance to support existing systems in order to avoid restructuring. A better way of looking at the finance gap would be in terms of the desired expansion of the system to provide a better and more comprehensive service. I have already noted the example of Universal Primary Education, where, instead of planning for a sustainable increase in enrolments, governments (and aid 'donors') encouraged through positive measures a rapid increase which could not be supported, forcing themselves to seek yet more external funding. The same applies to the expansion of higher education in many countries. Thus, core funding should relate to the fiscal capacity of the country to support its education system, rather than to what is required to finance an extensive system modeled, for example, on the best characteristics of those which exist now in developed countries. External assistance can then be applied with circumspection to develop the system. Each programme's foreign aid component should be identified separately where possible, and the rolling three year budget should show how the component will be sustained. One approach to the introduction of programme budgeting would be to programme all components of the education sector which benefit from foreign aid. In many countries the introduction of such a system would show in a very short time the extent to which externally financed initiatives cannot be sustained. It may be possible for education planners to indicate a ceiling for foreign aid in any period: this could be, for example, a rule of thumb ratio of aid to the domestic resource ceiling. It is clear that these changes cut across all sectors, and cannot be limited to education ministries. They rely on leadership and cooperation by Ministries of Finance, including, for example, the development of manuals of instruction to sector planners on how to treat foreign aid. They also rely on cooperation by donors, both to pass the funds through the budget as policy and budget practices improve, and in the analysis and evaluation of current projects. (f) Improving Expenditure Estimation Irrespective of the changes to the budget format, techniques of budget estimation will in most countries need to be strengthened. Estimation should be simpler under rolling programme formats because activities are more clearly set out and because the iterative process of relating estimates to available resources enables budgeters to adapt their estimates. A commonly recommended approach is the use of 'norms' and formulae. This involves establishing quantities required to achieve given objectives, such as average ratios of books to pupils across subjects, the number of pupils per teacher, the number of teachers per various types of allowance, and so on. While in many respects these are desirable, they can also promote overestimation and a loss of flexibility, and the approach has many disadvantages in annual incremental budgeting systems. Many countries in which norms are given to education ministries by finance ministries find that their norm-based budgets are disregarded at the last minute-by the finance ministries in the process of budget reduction. The requirement to budget to norms has little point if they are not respected. Another problem with norm-based budgeting is that norms become fixed and inflexible. For example, as book procurement and distribution capacity develops, textbook-student ratios can increase. The current tendency is to fix 'ideal' norms and then aim at them, rather than to set realistic ones and achieve them. A related problem is the existence of conditions which make the achievement of norms almost impossible, for example, where universities try to achieve efficient staffing levels starting from a position of over-staffing. Where the estimation process is more effectively iterative a more flexible approach is possible. Norms can be adapted and changed as required. Managers are in a better position to define their requirements in terms of what they want to achieve rather than in terms of fixed quantities prescribed for them. Furthermore, variations in what can be provided outside the government budget can be taken into account: if desks, or chalk, are easily available locally then they can be provided by schools and the savings be applied elsewhere in the system. Thus the estimation process cannot be separated from the allocation process. While the use of norms is useful as part of the process of identifying total resources required, under programme budgeting with identified cost-centres schools or clusters of schools can eventually become the lowest unit of allocation. However this is done, whether by capitation grants or by other means, the integrity of the cost-centre budget and the right of its managers to allocate from it should be respected within reasonable guidelines. For example, while norm budgeting would specify fixed quantities of particular items for delivery to a school, parents and teachers in a primary school may wish to reallocate some of the money for chalk or desks to books, and should be allowed to do so. Such a process implies a degree of zero-based budgeting, which is a useful way of evaluating the effectiveness of norms. Ministries could run annual ZBB exercises on selected norms. (g) Expenditure Management and Accountability In many countries education ministry and some institutional accounts fail to receive auditors' approval. The reasons may be numerous. Rules and regulations of expenditure management may not be respected by concerned officials: payments are made against pro-forma invoices, without supporting vouchers, or without authorization; cash books are not maintained; bank reconciliations are not produced; stores are not recorded; the payroll includes ghost employees; and so on. The combination of lax expenditure controls, off-budget foreign aid and cash-starved finance ministries creates serious difficulties for education expenditure management to the extent that there may be up to three parallel budgets: that approved by the legislature; departmental and institutional budgets which include foreign aid as well as the legal budget; and a cash operated budget by the finance ministry concentrating on timely releases of the approved budget to education, sometimes failing to release the required amounts. Many expenditure management problems originate in poor budgeting, and the proposals outlined in previous paragraphs are designed to address these problems. Programme budgeting specifies more clearly who is responsible for budget implementation, and sector structures need to be adapted to reinforce accountability. Forward budgeting allows overspending to be adjusted against next year's budget, so that education ministry managers see clearly the effects of their actions on future releases. Initiatives to improve accounting, cash management and expenditure reporting must go hand in hand with improvements to budgeting, both in education ministries and in finance ministries, and aid 'donors' should take a keen interest in ensuring that these initiatives take place. Otherwise it will be unlikely that foreign aid will be passed through the budget. C. Conclusions: Affordability and sustainability Phased Implementation. While revenue classification can be improved in a fairly short time, the reclassification of expenditures is more complex, as is the strengthening of capital and foreign aid budgeting. In the first part of this paper I emphasised that a necessary condition for the implementation of the reforms which have been proposed for education systems in Africa was the setting in place of appropriate management and planning mechanisms, and that this alone could take many years. Expansion policies such as Schooling For All and Universal Primary Education not only depend on resource availability but also on management capacity. I have also noted the constraints on domestic resources and the possible decrease in the levels of foreign aid available to Africa. 'The Receding Managerial Limit'. 'Planning implies on the one hand a purpose, and on the other, the organization of resources to accomplish this purpose in some desired manner.' A key resource of any organisation is its management, and at any given time the capacities of the existing management staff set a limit to the expansion of the organisation. This paper has set out approaches to overcoming the problem of the 'receding managerial limit', through improving the tools available for managers and the structures in which they work, but also by suggesting a different approach to marshalling the resources they have to hand. The constraints which apply to all other reform initiatives also apply to those suggested here. They must be phased in slowly. Sustainable Development. The concern with sustainable development has been brought to the fore by environmental concerns, where they relate to the impact of projects on, for example, national income, human welfare, depletion of physical resources and technological change. The criteria in these cases relate to irreversible effects of projects, how to foresee them, measure them, and accommodate or avoid them. In many respects the economics of the environment is similar to the economics of human resources, most particularly in their long term horizons, and the associated problems of valuing externalities. The essence of environmental economics has been the elaboration of techniques to value what was previously thought to be unvaluable. This may well be mirrored in educational analysis, as many of the current approaches encourage short- term viewpoints, as I have noted in Part I. While poor decisions in educational policy may well lead to irreversible damage, in the sense of opportunities lost, sustainability in a practical sense must mean the ability of countries to maintain education provision of reasonable quality with domestically generated resources: the ability to borrow and repay loans, and to maintain asset stocks is part of domestic capacity. Affordability. The title of this paper suggests that education is an unaffordable commodity. In relation to the total educational wants of a population this is probably by definition true. However, by concentrating on reforms and improvements which will result in a better fit between available resources, local management and professional capacity, and the scope and size of educational systems, African countries can afford better quality. These reforms and improvements cannot be restricted to the education sector alone, but must be undertaken parallel to improvements and reforms in Ministries of Finance and in civil services in general. Such an approach contrasts with expansionary approaches such as those of the Jomtien Conference which commit countries to build their education systems up further on weak foundations, and to follow this more cautious approach would be to heed the lessons of the last two decades, Policy Implications for Donors In this paper I have argued that most countries are likely to experience considerable difficulty in implementing simultaneously the triple initiatives of expenditure reallocation, improved budget management and system expansion. The main implication for donors of the types of policy I have proposed is the need to recognise that the pace of change is almost certain to be slow, in contrast with the aspirations of many donor initiatives, particularly those within the context of the social dimensions of structural adjustment. In particular, it is important that the availability of foreign aid does not encourage the unsustainable expansion of education systems, resulting in a serious deterioration of quality. The growing importance of programme aid and counterpart funding via balance of payments support has heightened awareness of the need for governments to improve policy as well as policy implementation processes, but donors should take care to avoid unrealistic prescriptions. At the same time, donors should reflect the introduction of rolling plan budgeting in aid policies, with longer term commitments of aid to be passed through budgets in order to give governments a better idea of what resources are likely to be available, of course within an acceptable and feasible planning framework. This would require a much better match of projects and educational policy than has hitherto been observable. At the level of programme design for the strengthening of planning and budgeting in the education sector a key lesson of the past is the need for coordination between sectoral ministries and ministries of finance. I have suggested that in most countries there is a need to improve overall public sector budgeting and that failing to do so will dilute the effect of improvements at the sectoral levels. Sectoral donors should take a wider view of their interventions. Many may consider this to be a daunting task, but I argue that a gradual process of reclassification of budget heads is possible and that there need be no conflict between the budget formats used by ministries of finance and education. When the mechanisms by which change may be effected are in place countries will be able to take effective steps to initiate affordable and sustainable improvements in their education services. Perran Penrose Cambridge, UK March 1993 01. See Sahn, D.E. Public Expenditures in Sub-Saharan Africa During a Period of Economic Reform. World Development, Vol 20, nr 5, 1992, pp 673-693. 02. 'Inflation des effectifs et des coûts, stagnation des débouchés et stabilisation des perspectives d'emploi, telles vent les caractéristiques de la stagflation scolaire' ('The inflation of enrolments and costs, the stagnation of job opportunities and the levelling off of employment prospects, are the characteristics of educational stagflation'). Hallak, J. A Qui Profite L'Ecole? Presses Universitaires de France, 1974, p 149. 03. Eg Coombs, P.H. What is Educational Planning. IIEP, 1971. 04. Eicher, J.C. Educational Costing and Financing in Developing Countries, World Bank Staff Working Papers Nr 655, 1984, is one of the best analyses of finance issues. Also see World Bank, Financing Education in Developing Countries: An Exploration of Policy Options, 1986; Haddad, W.D. et al, Education and Development: Evidence for New Priorities, World Bank Discussion Papers Nr 95, 1990; Stromquist, N. A Review of Educational Innovations to Reduce Costs in Financing Educational Development: Proceedings of an International Seminar held in Mont Saint Marie, Canada, 19-21 May 1982, IDRC and CIDA, pp 69-94; Colclough C. with K. Lewin, Educating All the Children, Oxford, 1993. Other references are given throughout this paper. 05. Markets, it has been said, work incrementally. All required changes - in price signals, in people's response to incentives, in shifts of resources - take time... The likelihood of market failure is a function of the degree of urgency - or impatience - attached to a particular change. The prima facie case for government action to promote development in underdeveloped countries rests largely on the belief that what is needed is rapid economic development, the compression into a few decades of a process that in the West took centuries' (Arndt, H.W. 'Market Failure' and Underdevelopment. World Development, Vol 16 Nr 2, Feb 1988, quoted in Killick, T. A Reaction too Far: Economic Theory and the Role of the State in Developing Countries, ODI London, 1989, pp 62-63). A key condition for improvement, which Killick analyses, is the improvement of government and civil service administration: 'What matters more than its absolute size is how the state goes about its tasks and what relationship it establishes with the private sector'. 06. See Dougherty, C. Education and Skill Development Asian Development Bank/World Bank Seminar on Vocational and Technical Education and Training, Manila, January 1990, p 22 et passim. 07. This paper does not elaborate on the relationship between education and economic growth. It is more likely that determinants of South East Asian growth are more to be found in industrialisation strategies and their relation to education strategies than in education alone. The World Bank World Development Report of 1991 (mainly Chapter 3) proposes that education is a sufficient condition for economic growth. However, the assumption behind growth models underpinned by human capital theories that output is determined solely by supply factors, all resources being fully employed, cannot be easily defended in the case of Africa. For an excellent summary analysis of this issue see Fanelli, J.M., R. Frenkel & L. Taylor, The World Development Report 1991: A Critical Assessment. Feb 1992, available from the economics department of the Massachusetts Institute of Technology. For an interesting account of the education strategy in one South East Asian country, see Woo, J.H. Education and Economic Growth in Taiwan: A Case of Successful Planning. World Development, Vol 19, Nr 8, 1991, pp 1029-1044. There is much to recommend the study of East Asian education development experience to provide fresh perspectives on education in Africa. 08. See Blaug, M. Education and the Employment Problem in Developing Countries, ILO, 1973, pp 79 ff. This classic paper, written twenty years ago, is as applicable today as it was then, and its prescience is sobering. For a fascinating, and instructive, historical discussion of the same issue, see West, E.G. Education and the Industrial Revolution Batsford, 1975, pp 245 ff. 09. See Tilak, J.B.G. Education and Its Relation to Economic Growth, Poverty, and Income Distribution: Past Evidence and Further Analysis, World Bank Discussion Paper Nr 46, 1989, for a summary of these influences. 10. See footnote 32. 11. See also Lall, S. Human Resources Development and Industrialization with Special Reference to Sub-Saharan Africa in Griffin K. and J. Knight (ed), Human Development 12. All the same, many countries have managed to increase levels of total public spending although there were declines in the period around 1982-84. See Sahn, op cit. for evidence for this and other statements in these paragraphs. Although his data are mainly from secondary sources, and may include budget data rather than verified actual expenditure, they do seem to support the claim that public expenditures have been robust. He does not, however, make distinctions between unilateral external assistance and loans, and it is therefore not always easy to decide how far growth is a function of large inflows of foreign grant aid. For the 1970s, see Zymelman, M. The Burden of Education Expenditures and its Forecast, World Bank, Washington, 1978. 13. A contemporary case is Tanzania, with a ratio of Official Development Assistance (ODA) to GNP of nearly 50 per cent - a high figure when considering the likely understatement of aid flows. It should be noted that the denominator of the ratio is in many ways most important: Tanzania does not by any means have the highest per capita level of external aid. For example, neighbouring Malawi has a higher per capita ODA, but the ratio to GNP is about half that of Tanzania. Considerable care is needed, as always, in interpreting this type of data because of the potentially serious inaccuracies of national income accounting and different economic structures. See also footnote 26. 14. For example, World Bank, Sub-Saharan Africa: From Crisis to Sustainable Growth, 1989: 'Total expenditure on human resource development should be steadily expanded until it reaches 8 to 10 percent of GDP annually, about double present spending (with donors meeting about half the total). Infrastructure spending should rise to around 6 percent of GDP. This would cover capital and recurrent expenditure and ensure adequate resources for maintenance and running costs' (p 12). This last was to be financed through higher taxation and lower public wage bills. Aid was to provide recurrent as well as investment finance. How all this is to be financed is not addressed at all: see, for example, the weak discussion of 'sustained financial support for human resource development' on pp 87-88. 15. US$ 30 billion for the world by the year 2005. Minimum aid flows to Africa are given as US$ 15 billions, (Colclough and Lewin op cit. p 239). Another UNICEF report, The State of the World's Children, OUP, 1993, gives a figure of US$ 25 billion per year to provide basic health and education services. 16. For a dissident voice, see Hallak, J. Education for All: High Expectations or False Hopes?, presented to the Oxford Conference, September 1991. Hallak also writes that financial factors 'become vital issues only if the economy is in bad condition'. 17. Sahn, op cit. calculated elastiaties of social sector spending with respect to GDP (greater than unity) and to total government expenditure (less than unity). The variations from unity are slight, and the time series is short. It is reasonable to conclude that they are both around unity and that therefore economic growth and decline (at least as measured by total GDP, which may be misleading) are not associated with significantly more than proportionate growth or decline in social sector spending. Sahn emphasises the need for detailed country studies, however. 18. Reducing the current external cash flow obligations and payments on debt account will thus probably be the most cost effective form of official external resource transfer to Africa in the 1990s.' Helleiner, G.K. Africa's Adjustment and External Debt. World Development, Vol 20, Nr 6, 1992, pp 779-792. An issue which is often overlooked is the rising domestic debt costs resulting from financial liberalisation policies. 19. See Beeby, C.E. The Quality of Education in Developing Countries, Harvard University Press, 1966, for an analysis of 'stages' of educational development. 20. Berg E, Rethinking Technical Cooperation: Reforms for Capacity Building in Africa, UNDP, 1993. A feature of foreign consultants and aid agency staff has been a certain lack of accountability. Whereas engineers require professional indemnity insurance against design negligence and error, I know of no case of an agency or individual being sued by a country for bad advice. Timothy Curtin (Curtin, T. The Economics of Public Investment in Education in Papua New Guinea, University of Papua New Guinea Press, 1991, p 4) makes the somewhat extreme point that those who make up what he calls the 'consensus school' of educational cost-benefit analysis could be locked up under regulations governing the provision of financial services for misleading analysis! 21. Dore, R. The Diploma Disease, Allen and Unwin, 1976, pp 72 ff. 'In the Third World today the importance of qualifications is greater than in the advanced industrial countries. Education systems are more likely to be geared to qualification-getting, and the consequences for society and its patterns of development are likely to be even more deplorable than in our society.' (p 83) 22. eg Devon, R.F. Foster's Paradigm Surrogate and the Wealth of Underdeveloped Nations. Comparative Education Review, October 1975, p 403, in relation to Papua New Guinea. This piece is a rejoinder to Foster, P. Dilemmas of Educational Development: What We Might Learn from the Past, in the same issue, p 375, and is not altogether fair to Foster who, inter alia, suggests shorter education cycles (p 384) 23. This is not confined to developing countries: in the UK there is now a lag of about one year before local government education expenditures are consolidated and reported. 24. But see page 24. 25. ‘Society’ should not be confused with 'government' (see, for example, Psacharopoulos, G. and M Woodhall, Education for Development: An Analysis of Investment Choices, OUP, 1985, pp 35-37). 26. The literature on national income accounting is immense. See also the technical notes on the quality of data in Accelerated Development in Sub-Saharan Africa, pp 187-188, and in the World Bank's Development Reports. More recent IMF, of purchasing power parity (PPP) national incomes show startling new international rankings. Similarly, the custom of expressing national financial data in US dollars at current exchange rates has resulted in re-workings of national income series in some countries to make them appear consistent over time. 27. There are usually also other items of non-discretionary expenditures such as those relating to pensions and upkeep of key state institutions, and, in some countries significant 'special' items relating, for example, to costs of restructuring: these are often labelled 'discretionary' but in reality should probably be considered as nondiscretionary. 28. For example, in Tanzania the Ministry of Education budget only accounts for about 25 per cent of the total public education budget, with local government budgets taking the largest share: there is a separate ministry for higher education. Other ministries' expenditures on education add about 3 per cent to total government expenditure on education. In Nigeria the Federal allocation to the states' accounts for the largest share of budgeted expenditure at state level, but separate reference must be made to state budgets for the full picture. For sources see Penrose, P. Review of Public Expenditures in the Education Sector in Tanzania, July 1992, available from the European Commission in Brussels; World Bank, Nigerian Secondary Education Sector Report: A Study in Contrasts, West Africa Department, August 1991; Penrose, P. Issues in Education Finance and Planning in Nigerian Secondary Education World Bank West Africa Department, April 1992; Hinchliffe, K. Federation and Education Finance: Primary Schooling in Nigeria. International Journal of Education Development, Vol 9, Nr 3, 1990, pp 157-162. Many African governments have significant local government involvement in primary education, with concomitant fragmented budgetary reporting. 29. Education cost-benefit analytical techniques are concerned with years at school rather than what is learnt within school. The confusion of schooling with education results in a misspecification of the earnings function which will lead to overestimation of the returns to expansion of low quality schooling, which has indeed occurred in many countries, and neglect of alternative quality improving investments which will have relatively higher rates of return. See also P. Glewwe, Schooling Skills and the Returns to Investment in Education. LSMS Working Paper N176, World Bank, 1991. 30. For example, the failure to take into account benefits to society from indirect taxation (see Curtin, op cit) and costs to society of public services financed from inequitable tax systems. 31. Externalities occur when all the benefits and costs of transactions are not fully incorporated in their market prices. They can be positive or negative. Evidence on externalities is difficult to collect, particularly in manipulated labour markets. See, for example, Knight, J.B. and R.H. Sabot, Education, Productivity, and Equality: The East African Natural Experiment. OUP, 1990, pp 23 ff. The extent to which social benefits accrue from increased labour productivity may also be exaggerated. However, the importance of externalities to the various levels of education should not be underestimated. For example, externalities to higher education may be significant, but, of course, are hard to measure. It may well be that externalities to primary education, being easier to measure, are more seductive in their policy implications. Consider, for example, Psacharopoulos, G. Priorities in the Financing of Education. International Journal of Educational Development Vol 10 Nrs 2/3 1990, pp 157-162: 'Why should the limited educational budget of a country × finance the production of a microchip specialist who will be employed in the local branch of a multinational firm?'. The author subsequently asserts that because externalities to higher education are hard to measure, and because the existence of greater externalities to primary education is 'intuitively' more likely, fiscal resources should not be used to pay for higher education. One man's intuition... There may well be a much better case for public investment in post-secondary education than is commonly admitted at present, particularly in terms of 'dynamic externalities' (how they relate to innovation and growth) (see Stewart F. E. Ghani, How Significant are Externalities for Development?. World Development, Vol 19, Nr 6, 1992, pp 569-594 for an overview of this issue, but not on education). Leslie, I.L. Rates of Return as Informer of Public Policy. Higher Education Vol 20, 1990, gives a comprehensive description of externalities to higher education. Also, for example, Knight Sabot show how educational expansion can reduce inequalities in pay, a very important externality not normally taken into account in cost-benefit analyses. The presence of 'negative externalities' should not be neglected: for example, unemployed school leavers can be a source of political instability. Another negative externality not unknown in some developed countries is to private schooling, where the private schools prove to produce rulers, politicians and civil servants rather than entrepreneurs and industrialists... 32. See Knight Sabot, op cit. pp 41-42, for evidence of this in Kenya. Where the returns to schooling are measured by wage differences associated with differences in length of schooling (assumed to be the marginal product of education), they usually assume that the average wage of standardized labour measures the wage received by the marginal (ie new entrant) worker. Because school leavers with more schooling take jobs previously taken by those with less schooling, the average wage for any given cohort may fall over time. Average and marginal wages would therefore not be equal, leading to overestimation of returns, particularly to primary schooling. Indeed, compression of wages is another externality to take into account. In reference to their own estimates of returns to schooling, which are among the most sophisticated yet published, the authors write: 'We do not wish to perpetuate the illusion of precision created by oversimplification' (p51). 33. Snower, D.J., The Future of the Welfare State. Economic Journal, vol 103, nr 418, May 1993, pp 700-717. 34. See, for example, Colclough, C Who Should Learn to Pay? An Assessment of Neo-liberal Approaches to Education Policy, in Colclough C. and J Manor, States or Markets?, Clarendon Press, 1991. Also Watson, K. Alternative Funding of Education Systems. Oxford Studies in Comparative Education Vol 1, 1991, pp 113-146. 35. For a cogent description and analysis of this view, see Camoy M. and C Torres, Educational Change and Structural Adjustment: A Case Study of Costa Rica, Operational Policy and Sector Analysis Division Working Document, UNESCO, Paris, September 1992, passim and p 60. 36. World Bank, Financing Education in Developing Countries. See Lockheed, M.E., A.M. Verspoor and Associates, Improving Primary Education in Developing Countries, Oxford, 1991, pp 173 ff for the case against fees for primary schooling, as well as a review of issues of local finance. Curtin op cit presents a case for higher education subsidies. Also, V. Lavy, Investment in Human Capital: Schooling Supply Constraints in Rural Ghana, LSMS Working Paper Nr 93, World Bank, 1992. 37. See Jimenez, E, Pricing Policies in the Social Sectors: Cost Recovery for Education and Health in Developing Countries, Johns Hopkins, 1987, Chap 5. 38. There is considerable hostility to the idea of publicly funded higher education in the donor literature, while in reality it is likely that bilateral donors provide considerable support to African universities. Without making judgements on the scope and nature of externalities to higher education, the ability of 'better off' university students to pay fees, or the distribution of underfunding between levels of education, it is not in general realistic to expect many African governments to be seen to attack the university sector. A more selective approach would be to encourage more efficient institutional management and to give less support to social science faculties and poor quality 'research'. Stronger efforts to develop university-enterprise links are also much needed. Neglecting these issues on the grounds that universities are 'elitist' only raises the opportunity cost of public subsidies to higher education. See Penrose, P. Evaluation of Linkages in the Field of Higher Education and Training: Botswana, Lesotho and Swaziland report by DHV Consulting for the Dutch Ministry of Foreign Affairs, June 1992, Chap 5, for a summary of some of the issues. Also Coombe, T. A Consultation on Higher Education in Africa, Ford Foundation, Jan 1991, for a voice sympathetic to higher education but accepting the low performance in research as well as poor management. Evidence for strong bias towards social sciences and arts can be found in Association of African Universities, Study on Cost Effectiveness and Efficiency in African Universities, A Synthesis Report, AAU, May 1991, pp 74-81. For the failure of African universities to develop linkages with enterprises (public or private), which is related to the relatively low importance attached to physical sciences, itself related to lack of finance, see AAU, University Productive Sector Linkages: Review of the State of the Art in Africa, November, 1990. For a review of the issues see Saint, W. S. Universities in Africa: Strategies for Stabilization and Revitalization World Bank Technical Paper 194, 1992: the orientation and conclusions of this paper raise interesting questions. 39. Thobani, M. 'Charging User Fees for Social Services: 'The Case of Education in Malawi', World Bank Staff Working Paper Nr 572, 1983. For the argument that fees should substitute for public resources, see Bertrand, T.J. and R. Griffin, The Economics of Financing Education: A Case Study of Kenya, World Bank, 1984. 40. Earmarked taxation is in the demonology of Treasuries, which invariably disapprove of it, though its time may come. See Lockheed et al, op. cit. pp 189 ff for some case studies of earmarking, though some of the examples given may not be all they seem. There is a growing literature on the subject. 41. Regressive taxation occurs when the less well off pay a greater proportion of their marginal income than the better off. The opposite is progressive taxation. Indirect taxes can be regressive: they are considered progressive when levied on 'luxury' goods. The extent to which education should be considered a luxury will vary according to type and level, and would determine the scale of regression. Many countries have moved towards regressive taxation in the last decade or so. 42. Colclough, C. Resources for Education in Developing Countries. International Journal of Education Vol 10, Nrs 2/3,1990, pp 115-119. 43. See also Jimenez, op cit. pp 82 ff and Table 7.5. 44. See Brown, B.W. Why Governments Run Schools. Economics of Education Review, Vol 11, Nr 4, 1992, pp 287-300, for a discussion of this issue in the United States. The author suggests that regulation costs are very high and that private for-profit school owners engage in 'opportunistic behaviour' which leads to a low quality of service. 45. There is relatively little contemporary work on this subject. One study in Latin America shows that while average expenditure by households for each child on primary education have increased, total expenditures on education have not increased because the profits are retained by school owners and not reinvested in education. See Schiefelbein, E. Restructuring Education through Economic Competition: The Case of Chile. Journal of Educational Administration Vol 29, Nr 4, 1991, pp 17-29. E G West, op cit, in writing about the 'public/private displacement mechanism' suggests the reverse process took place in Britain from 1833 to 1945, as public schools took over from private schools and average expenditures on education declined (chap 15). Schiefelbein previously recorded some evidence of better examination performance in private schools in Chile (Schiefelbein, E. Education Costs and Financing Policies in Latin America. Education and Training Department Discussion Paper, World Bank, 1985). 46. See Knight, J. Education Policy Issues in a Period of Stabilization and Structural Adjustment in Griffin & Knight, op cit. chap 3, especially p 66 ff. 'The hope that meritocratic selection criteria would prove sufficient to ensure that the various income groups were represented in secondary schools in proportion to their numbers was disappointed in the United Republic of Tanzania... '; and '... those with the greatest ability to bear the cost of their children's education are the most likely to receive large subsidies. These results for Kenya probably have general application'. 47. Also in many countries private or semi-private schools have been directly supported from foreign aid, which is in many cases being withdrawn. 48. See, for example, Haddad et al, for a review of some evidence. For an earlier study, see Husen, T et al, Teacher Training and Student Achievement in Less Developed Countries, World Bank Staff Working Paper Nr 310, Dec 1978, p 42 et passim. 49. Coombs, op cit. 50. The concept of 'development' budgeting in principal incorporates, the investment nature of much 'recurrent' expenditure. Unfortunately 'development' budgeting, as with capital budgeting, has too often become exclusively concerned with capturing more foreign aid. 51. 'Rational' in the sense that reasoned justification for proposed expenditures is required. In another sense, the rationality of politicians would tend to resist reasoned technical justifications. Budgets always express tensions between different type of rationality. See, for example, Wildavsky, A. The Politics of the Budgetary Process. Little, Brown Co, 1984 (4th edition), pp 198 ff. 52. This phenomenon is not new. It has long been recognised that the elasticity of primary school teachers' salaries to national income is less than unity (although there have been short-run exceptions). See, for an early study, Blott, D. and M Debeauvais, Education Expenditure in Developing Countries: Some Statistical Aspects, in Financing Education for Economic Growth, OECD, Paris, 1960, pp 73-88. The authors used a form of purchasing power parity in place of official; exchange rates, which made their findings particularly valid. 53. Such as adult education, which in many countries is provided in different ministerial sectors. 54. Wildavsky, op cit. pp 135-138, and p 216: 'The tension between analysis, which seeks out error and promotes change, and organisation, which seeks stability and promotes its existing activities, is inevitable'. 55. Wildavsky, op cit; Dean, P.N. Government Budgeting in Developing Countries, Routledge, 1989; Babunakis, M. Budget Reform for Government: A Comprehensive Allocation and Management System (CAMS), Quorum Books, 1892, p 5 et passim. Nozick, D. (ed, Current Practice in Programme Budgeting, London 1973). The reasons for the failure of the US budget reforms in the 70s were complex, but related to the political resistance to rational budgeting combined with the development of excessively complex techniques. Observers such as Wildavsky who in the end argued for the retention of incremental budgeting recognised that their criticisms were less relevant to developing countries (Caiden, N. and A. Wildavsky, Planning and Budgeting in Poor Countries, Wiley, 1974) 56. Sometimes referred to as performance budgeting, or programme and performance budgeting, as in the UN Manual for Programme and Performance Budgeting, Department of Economic and Social Affairs, UN, 1968. See Dean, op cit, for a review of the UN manual. 57. Or, as Wildavsky wittily puts it, 'the affair with resources has been replaced by the romance with objectives', op cit, 1984, p 181. 58. See Babunakis and Nozick op cit respectively for summaries of US and UK experiences. 59. It should, of course, always be emphasised that enrolment does not equal attendance, and in countries with poorly resourced systems attendance rates will predictably fall, often seasonally. Indeed, attendance rates may be viewed as 'real enrolment rates'. Where the ratio of attendance to enrolment is significantly less than unity many base planning data become meaningless, and considerable waste ensues. 60. See Hirsch, W.Z., M J Marcus R M Gray, Program Budgeting for Primary and Secondary Public Education: Current Status and Prospects in Los Angeles, Praeger, 1972, for some approaches to fiscal modeling, as well as a somewhat complex example of PB from Los Angeles. 61. This paper does not set out to review past and current PB experiences. Some countries, such as Malaysia, Sri Lanka, India, Philippines, Singapore, attempted to introduce full-scale programme budgets, with indifferent success, reviewed in Dean, op cit. Also the small island of Grenada in the Caribbean has programmed its budget within slightly modified budget categories: this simply allows objectives to be specified within the budget document, which would probably not be useful for a restructuring exercise in a bigger country. Some countries, such as Uganda, have converted budget votes to 'programmes'. Ghana also began to introduce elements of programming to the education sector, but it did not persist. Benin and The Gambia are currently embarking on budgeting reforms in the education sectors. Relatively few have attempted an overall reform involving three year rolling budgets linked with plans, in which the Ministry of Finance is involved in supporting sectoral reforms. Kenya introduced a three year rolling system, but its credibility may have been somewhat tarnished by inaccurate revenue forecasting and therefore a failure to allow institutions and managers to prepare for substantial contraction. Tanzania is introducing interesting reforms in social sector budgeting. Other countries which have introduced forward budgeting include Botswana. 62. Examples of the types of suitable training materials are found in IIEP, Educational Cost Analysis and Budgeting Report of a Training Programme, Saltpond, Ghana, UNESCO, 1989; and UNESCO, Report on Trainers' Training Programme in Educational Cost Analysis and Budgeting at the District Level, Ghana Ministry of Education/UNESCO/UNDP, August 1991, available from UNDP. 63. Dean, op. cit., pp 138-139. 64. UNESCO Manual on the Application of URC Norms to Programme Linked Budgeting, Republic of Ghana Ministry of Education, UNESCO/UNDP Document Nr 20, October 1989. 65. See CIPFA, Capital Accounting in Local Authorities: The Way Forward, Chartered 66. Capital expenditure in the education sector is sometimes difficult to define. In some cases, such as textbooks, expenditure on depreciating assets is treated as recurrent expenditure. In fact, textbooks may be also considered as capital expenditure with a two or three year straight line depreciation, though of course in reality books deteriorate most rapidly at the end of their lives. See MacGregor, C., K. Mortimer T. Lisher, Study on Book Provision in Kenyan Education ODA/World Bank, November 1990, East Africa Dept of the World Bank. 67. Penrose, P., T.C. Gardrler B. Shone, Budgeting for Higher Education in Ethiopia, Commission for Higher Education, Ethiopia, 1987. 68. Such as earmarking by donors for specific purposes and the problem of aid fungibility. See Maxwell, S. (editor), Counterpart Funds and Development, IDS Bulletin, Vol 23, Nr 2, April 1992. 69. General reviews include Riddell, R.C. Foreign Aid Reconsidered, Currey, 1987, and Cassen, R. and Associates, Does Aid Work?, Clarendon Press, 1986. 70. See Doriye, J. M. Wuyts, Aid. Adjustment and Sustainable Recovery - The Case of Tanzania, Working Paper for the Department of Economics, School of Oriental and African Studies, London University, March 1992. 71. Berg, op cit. p 14. 72. Having said all this, there is a disturbing tendency for aid donors and lenders to be fixated on the issue of reporting external assistance at the expense of supporting recurrent budget reform and improvement. Terms of Reference for some World Bank Public Expenditure Reviews, for example, arguably lay excessive emphasis on aid budgeting and expenditures and result in insufficient analysis of recurrent budgeting issues. 73. Such techniques would not, of course, overcome problems of aid fungibility, but all of the proposals in this paper presuppose the improvement of the public sector planning and administration culture so that deliberate subversions of the system are reduced. 74. To achieve total success in passing aid funds through consolidated revenue accounts is probably not possible. Donors will always have grounds to suspect that government policies are not in harmony with aid policies. For example, the European Commission is currently in dispute with the UK government over regional funds: normal UK treasury practice is that all funds go through the Treasury, while the EC does not accept that the Treasury will pass them in full to the regions (Financial Times, Feb 25, 1993). 75. Penrose, E. The Theory of the Growth of the Firm, Basil Blackwell, 1959, p 44. 76. Ibid, chapter 4. 77. Pearce, D., E Barbier A Markyanda, Sustainable Development, Economics and Environment in the Third World, Earthscan, 1990, ch 1; Redclift, M. Sustainable Development, Exploring the Contradictions, Routledge, 1987, chs 2 & 3. BIBLIOGRAPHY Arndt, H. 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The Burden of Education Expenditures and its Forecast, World Bank, Washington, 1978 DFID Department for International Development 94 Victoria Street London SW1E 5JL ISBN: 0 90250 067 8	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/4529-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 63, "total-input-tokens": 125603, "total-output-tokens": 34897, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 910, 1 ], [ 910, 1781, 2 ], [ 1781, 3888, 3 ], [ 3888, 4621, 4 ], [ 4621, 6726, 5 ], [ 6726, 9534, 6 ], [ 9534, 12253, 7 ], [ 12253, 15540, 8 ], [ 15540, 18535, 9 ], [ 18535, 21790, 10 ], [ 21790, 24557, 11 ], [ 24557, 27578, 12 ], [ 27578, 30348, 13 ], [ 30348, 33553, 14 ], [ 33553, 36795, 15 ], [ 36795, 39993, 16 ], [ 39993, 42880, 17 ], [ 42880, 46047, 18 ], [ 46047, 49151, 19 ], [ 49151, 52173, 20 ], [ 52173, 55294, 21 ], [ 55294, 57288, 22 ], [ 57288, 59506, 23 ], [ 59506, 62440, 24 ], [ 62440, 64901, 25 ], [ 64901, 67324, 26 ], [ 67324, 69957, 27 ], [ 69957, 73078, 28 ], [ 73078, 74638, 29 ], [ 74638, 77805, 30 ], [ 77805, 80914, 31 ], [ 80914, 83748, 32 ], [ 83748, 86360, 33 ], [ 86360, 89483, 34 ], [ 89483, 92078, 35 ], [ 92078, 95037, 36 ], [ 95037, 97894, 37 ], [ 97894, 101082, 38 ], [ 101082, 103921, 39 ], [ 103921, 106926, 40 ], [ 106926, 110115, 41 ], [ 110115, 113378, 42 ], [ 113378, 116339, 43 ], [ 116339, 119225, 44 ], [ 119225, 122191, 45 ], [ 122191, 124878, 46 ], [ 124878, 127637, 47 ], [ 127637, 130438, 48 ], [ 130438, 133341, 49 ], [ 133341, 136068, 50 ], [ 136068, 139272, 51 ], [ 139272, 142087, 52 ], [ 142087, 144950, 53 ], [ 144950, 147676, 54 ], [ 147676, 149995, 55 ], [ 149995, 152695, 56 ], [ 152695, 155010, 57 ], [ 155010, 156646, 58 ], [ 156646, 158300, 59 ], [ 158300, 159969, 60 ], [ 159969, 161675, 61 ], [ 161675, 163456, 62 ], [ 163456, 164680, 63 ] ] }
c443f4ef2701a553516713ce4cc07b7ccc2f6b38	Health & HIV/AIDS education in primary & secondary schools in Africa & Asia - Education Research Paper No. 14, 1995, 94 p. Table of Contents Policies, Practice & Potential: Case Studies from Pakistan, India, Uganda, Ghana E. Barnett, K. de Koning and V. Francis Education Resource Group Liverpool School of Tropical Medicine in collaboration with: The College of Community Medicine, Lahore, Pakistan The Institute of Management in Government, Kerala, India The Institute of Public Health, Makerere University, Uganda The Health Research Unit, Ministry of Health, Ghana December 1995 Serial No. 14 ISBN: 0 902500 69 4 This is one of a series of Education Papers issued from time to time by the Education Division of the Overseas Development Administration. Each paper represents a study or piece of commissioned research on some aspect of education and training in developing countries. Most of the studies were undertaken in order to provide informed judgements from which policy decisions could be drawn, but in each case it has become apparent that the material produced would be of interest to a wider audience, particularly but not exclusively those whose work focuses on developing countries. Each paper is numbered serially, and further copies can be obtained through the ODA's Education Division, 94 Victoria Street, London SW1E 5JL, subject to availability. A full list appears overleaf. Although these papers are issued by the ODA, the views expressed in them are entirely those of the authors and do not necessarily represent the ODA's own policies or views. Any discussion of their content should therefore be addressed to the authors and not to the ODA. Table of Contents Acknowledgements Summary of conclusions List of abbreviations Preamble Section 1 - An overview of the issues facing policy makers Introduction Section 2 - Case studies: Methodology and findings Methodology Findings Case study 1: Pakistan 1.1 General Context 1.2 Health and AIDS education: Curriculum activities 1.3 The concerns of young people 1.4 Opportunities for development Case study 2: India 2.1 General context 2.2 Health and AIDS Education: curriculum activities 2.3 The concerns of young people 2.4 Opportunities for development Case study 3: Uganda 3.1 The general context 3.2 Health and AIDS education: curriculum activities 3.3 The concerns of young people 3.4 Opportunities for development Case study 4: Ghana 4.1 The general context 4.2 Health and AIDS education: Curriculum activities 4.3 The concerns of young people 4.4 Opportunities for development References Acknowledgements This study was funded by the British Overseas Development Administration, Education Division. Our thanks go to ODA for the opportunity to be involved in the study. The study was greatly helped by excellent cooperation and support from The British Council, through David Theobold in Manchester, and through the offices in the four countries. Thanks also to the four centres which collaborated in the study: The College of Community Medicine, Lahore, Pakistan; The Institute of Management in Government, Trivandrum, Kerala, India; The Institute of Public Health, Makerere University, Uganda; The Health Research Unit, Ministry of Health, Ghana. More specifically, we acknowledge the contributions of individuals from each of the four study sites. From Ghana special thanks to: the two researchers, Mr Raymond Djan and Mrs Florence Asamoah; Dr Sam Adjei, Director of the Health Research Unit; Felicia Odofo for arranging access to the schools, and providing insight into health education through the Ministry of Education; Dr Kwadwo Mensah, for arranging a series of visits to schools away from the capital. From India special thanks to: the researcher Mr Oommen Philip, Institute of Management in Government in Kerala; Dr Karande and Dr Shetty, Municipal Corporation Bombay for arranging and assisting in the research carried out in Bombay; Dr Modhavar Nair for arranging meetings with key informants in the Directorate of Health and the Directorate of Education in Kerala. From Pakistan special thanks to: the researcher Dr Abdul Rashid Choudry, and to Professor Naeem UI Hamid, Principal of the College of Community Medicine, Lahore. From Uganda special thanks to: the two researchers Dr Joseph Konde Lule and Ms Alice Nankya Ndidde; Dr G Buenger, Head of Institute of Public Health, Kampala; Mrs Speciosia Mbabali for arranging meetings with key informants in the Ministry of Education, Ministry of Health and UNICEF; Dr Patrick Brazier, Acting Director of British Council for the logistic support provided and to Ms Catherine Othieno for arranging meetings with key informants in Tororo District. The Ministries of Health and Education in all four countries welcomed the work and gave us access to relevant organizations and resources. There are also many individuals and organizations within the four countries who willingly gave their time to talk to us and to take us to visit schools, parents and local communities - without such cooperation the study would not have made much progress. Most significantly, we would like to extend our thanks to the head teachers, staff and students of the schools which participated in the study. In all cases, we enjoyed meeting and working with the students - and appreciated their willingness to share their ideas. We very much hope that the material brought together in this report may prove useful in schools, in helping to develop relevant health and AIDS education materials. In the report, a number of the young people's drawings have been reproduced. We wish to acknowledge their contribution. We wish also to thank Veronica Birley of Tropix for her sensitive handling of some of this material for publication. Finally, the tireless and skillful work of Paula Waugh, ERG secretary, has brought this project through its various stages. Her role in data entry, word processing, layout and preparation of documents is most gratefully acknowledged. Summary of conclusions Aims and methods 1. This report sets out to describe current policy and practice related to health and AIDS education in primary and secondary schools in Africa and Asia. It focuses on: the health and education context, and the priority attached HIV/AIDS; curriculum content; teaching methods; teacher preparation and the concerns of young people with regards to health generally and AIDS specifically. 2. The report draws on published and unpublished literature as well as empirical work in four countries: Pakistan, India, Uganda and Ghana. The empirical work combines key informant and documentary analysis of stated policy and practice, with detailed work carried out in selected schools in each of the countries. The schools data pays particular attention to the worries and concerns of young people. As such, it may provide a useful starting point for discussion on developing "student centred" health education curricula. Key issues in the implementation of health education in schools 03. Conclusions from the literature suggest that to date, evaluation of health education in schools demonstrates that it can substantially improve knowledge on health topics. Evidence of effects on behaviour are more limited, and indicate the importance of supporting education with health services, and with paying attention to the broader "health environment" of the school. Evidence of school health education having a direct effect on health outcomes remains problematic, and inconclusive. 04. Key factors influencing impact include: links with health services; teacher preparation; time devoted to health education; parent participation; the timing of health education input (in terms of pupil age); peer support and the presence of operational school policies which support health promoting behaviours. 05. There is evidence from a number of African and Asian countries to indicate that health education is included in curricula - but that it is generally very limited. There are examples of both "separate subject" and "integrated" health education. The latter appear to be more successful in ensuring that children receive some teaching in this area. 06. Curriculum content follows a fairly standard pattern in many countries - broadly in line with WHO recommendations - and usually includes the following elements: personal hygiene, food safety, nutrition diet, sanitation, and common diseases. Further items which are seen less frequently are: dental hygiene, exercise, drugs, accidents. Sex or population education is usually mentioned in text books but taught superficially, and with considerable discomfort by teachers. HIV/AIDS is included either in sex/population education, or (Uganda) in common diseases. Coverage in the Asian countries is minimal at present, and kept to very basic information, not related to sexual intercourse. In Ghana and Uganda, the coverage is more detailed. Only Uganda appears to be starting to consider moving forward from basic information provision to addressing practical issues connected with safe sex, and with the care of people with AIDS. 07. Teaching methods in all countries predominantly focus on didactic approaches. However, there are examples of more participatory approaches to education, especially in Uganda. There are also a growing range of examples of innovative extra-curricular activities (eg: health clubs, magazines, drama competitions, child-to-child activities). Uganda provides a range of examples - and has experienced the catalytic effect of AIDS education on its broader health education programme. NGOs often play a key role in fostering innovation. 08. Teacher preparation on health education is lacking in all countries studied except for Uganda, where an in-service approach has been in operation since 1987, and pre-service training is now being developed. 09. Whilst there are exceptions to the rule, the "health environments" of many schools in Africa and Asia are generally reported to be poor (often lacking basic hygiene and drinking water facilities, providing no or inadequate food, poor lighting and ventilation etc.). 10. School health services are equally rudimentary, and often lacking entirely. However, there are a growing number of countries experimenting with more targeted health interventions through schools (eg: deworming; micronutrient supplementation). 11. There have been few attempts to use health needs assessments of school aged children as a basis for health education planning (although Ghana has done some useful work in this area). There is even less evidence in Africa and Asia of researching the concerns of young people in order to aid curriculum planning. The school studies are a first attempt to redress this problem - building on successful work in this area which is becoming commonplace in the UK, Europe and Australia. 12. There are very few examples of on-going monitoring or evaluation work related to school health education programmes. Rather more is available on evaluating mass media campaigns on AIDS awareness. Conclusions from the four case studies 13. Pakistan (Punjab): Results from both the policy analysis and from the school studies indicate a low level of activity in health education generally, and virtually no evidence of development around AIDS. Young people show a limited awareness or understanding of health issues - although several speak with tremendous feeling and concern about the problems of urban pollution. Due to the official requirement that the children should not be asked directly about sexual knowledge and HIV, it was not possible to engage the school children in the additional draw and write study or the focus group discussions specifically about AIDS and HIV. Difficulties with this aspect of the research are indicative of a variety of serious constraints to development, suggesting that, for AIDS education in particular, it may be preferable to work through non-government agencies initially, until more widespread work becomes acceptable. On health education, a "health intervention" approach may make greater progress and have a clearer impact than would attempts at curriculum development. However, the sustainability of such an intervention would need to be given careful consideration, alongside its benefits (in terms of who is reached) - given low levels of school enrolment. 14. India (Kerala): Evidence from central level (both national and state) suggests quite a sophisticated view of health education in schools, with detailed inclusion in a specialized curriculum, some integration in other subjects, and the development of health clubs for extra-curricular activities. This is not yet however fully apparent in practice. There is some evidence to suggest that detailed teaching around health is often sacrificed for "examined" studies. Attempts to make health teaching more active than didactic have not achieved noticeable success to date - although there is awareness of the need for a more active approach amongst some teachers. In the schools included in the study, health clubs are present in name only. AIDS education in schools is seen to be important and a necessary step - but as yet has not been fully thought through or planned. Evidence from young people showed substantially greater awareness of AIDS than teachers interviewed anticipated - but also showed several important areas of misinformation. 15. Uganda: Uganda has many exciting examples of innovation and development within school health education generally and AIDS education particularly. There is a well established School Health Education Programme, which is supported by policy, by established coordinating mechanisms at central level, and is relatively well researched both from the angle of needs assessment and evaluation. AIDS education is integrated into this work, and is well resourced with innovative materials and specially trained teams of trainers. Programme implementation is reasonably effective, although a number of problems have inevitably arisen - including the need to establish much better local coordination and strengthening of planned but so far insufficiently implemented monitoring and evaluation systems. Evidence from the young people themselves shows insight into a wide variety of health issues including a detailed understanding of AIDS prevention. There are a number of concerns which stand out including observations on environmental health and sanitation, on different aspects of nutrition, drugs, a variety of diseases, and more personal concerns focused on family life (especially mistreatment at home), and success and failure at school. AIDS was the most frequently mentioned illness (at a stage in data collection where the young people were not aware of our interest in AIDS). This contrasted with the other three countries, where there was little or no general indication of a concern about AIDS amongst young people. In terms of moving forward on AIDS education, there is much to commend in terms of current practice, and obvious areas which now need to be developed, including more emphasis on the development of "life-skills", counselling options in schools, training teachers in the use of interactive teaching methods. 16. Ghana: Ghana provides a quite complicated picture on development in health education. There is not the policy development at central level which is evident in Uganda - and yet there is substantial health coverage in the syllabus, which can be described in some detail by teachers, and in rather less detail by students. There are several emerging activities (eg: school health surveys, health intervention programmes, child-to-child developments, ad hoc health clubs), and also an emerging school health unit within the Ministry of Education. However, the basic infrastructure and active coordination between health and education still needs to be developed, and the development of a coherent strategy would help to ensure that different strands of activity become complementary. This is true for AIDS work as well as general health education. The perspective put forward by the young people places much more emphasis on problems with home, family, and friends (de: more to do with emotional well-being) than on personal health issues suggesting some value in strengthening guidance and counselling services and pastoral roles in schools. Work in AIDS education is needed to support current mass media input. The problems which have shown up here have more to do with emphasis than on mix-information (eg: an apparent preference to dwell upon blood transmission of AIDS, rather than getting a clear understanding of sexual transmission). There is still plenty of work required on basic aspects of AIDS awareness, and valuable work to be done by, for example, some voluntary youth organizations, in finding acceptable ways forward for developing a more skills-oriented approach to AIDS education. List of abbreviations \| Acronym \| Description \| \|---------\|----------------------------------\| \| AIDS \| Acquired Immune Deficiency Syndrome \| \| IEC \| Information Education and Communication \| \| JSS \| Junior Secondary level Schooling \| \| MCH \| Maternal Child Health \| \| MoH \| Ministry of Health \| \| MoE \| Ministry of Education \| \| MoES \| Ministry of Education and Sport \| \| NGOs \| Non-government organizations \| \| P \| Primary level Schooling \| \| SSS \| Secondary level Schooling \| Preamble Since the late 1980's, there has been a growing interest in the development of health education in schools. This has been spurred on by the AIDS pandemic. Health education, focused on changing sexual behaviour, has been seen as a key strategy in arresting the spread of the disease. In 1993 the ODA education division invited proposals for a study to: "establish the extent to which health education (including AIDS) is currently included in the curriculum of primary and secondary schools in Africa and Asia, the relevance of the curriculum content to children's needs, teaching methods and teacher preparation." This occasional paper presents the outcome of this study, which was undertaken by the Education Resource Group of the Liverpool School of Tropical Medicine, in conjunction with collaborating partners in Pakistan, India, Uganda and Ghana. The study had two elements: - a review of available literature and documentary evidence on the current state of health and AIDS education in schools in Africa and Asia - case studies of policy and practice in health and AIDS education in the four countries. The first section of this paper provides an overview of the issues facing policy makers in determining whether and how to include health and AIDS education in school curricula. It draws on evidence from the literature and from the results of the four country studies. The second section presents the methodology and main findings of the country studies. The case studies combined key informant interviews and collection of documentary evidence from central government agencies, donors and non-government organisations. The in-depth studies of schools involved over 3,000 pupils in 'draw and write' - a method to explore perceptions and health concerns. A summary matrix is provided to enable the reader to make comparisons across the four countries. This is followed by a more detailed presentation of the country studies. The study places emphasis on recognising the importance of children's perspectives as a starting point for meaningful educational planning. It is fitting, therefore, to start this report with the words of one of the young respondents: In many cases we the youth are treated rather unfairly. I'm talking about third world countries. The youth are not given the right to express themselves or choose what they want, which I believe is a right of every human being. At home, parents rebuke us unfairly sometimes, they frustrate us, we can't answer to defend ourselves, they don't consider that we know what we want but instead want to decide everything for us. They don't have time to listen to our 'nonsense' pleas. Especially the working ones who from work go to drink from clubs straight to beds so that their children see very little of them. It is very important to spare time to advise, have leisure talks with our parents, but they don't seem to realise! That is why we end up in such messes as pregnancy, bad habits of not mixing well with other people. We lack that consideration and we need more parental love. Of course not only parents but all elderly people should be responsible for community's youth. Section 1 - An overview of the issues facing policy makers Introduction A model of health education Does health education affect health knowledge, attitudes and behaviour, and influence health outcomes? Health education in the curriculum Conclusion Introduction When one studies mortality and morbidity figures, the case for placing emphasis on the health of young people is not instantly compelling, since the 6-24 year age group tends to carry a relatively low burden of disease. On the other hand, the majority of death and disease in this age group is preventable. Work, particularly in terms of establishing a sound educational base, should bring future health gains, as young people grow up and become the parents and the workforce of the future. With over one billion children in school, forming an easily accessible target group, the use of schools as an entry point for health activities is proving increasingly interesting to governments and donor agencies alike. Several key documents have stressed both health gains and cost effectiveness of organising health activities through the school system (e.g. World Bank 1993; Nakajima 1992). Other documents stress the educational importance of school health interventions. Much of this evidence is summarised in a major World Bank study (Lockheed and Verspoor 1991) entitled Improving Primary Education in Developing Countries. Taking evidence from a wide range of countries, they highlight protein energy malnutrition, temporary hunger, micronutrient deficiency and parasitic infection as important factors getting in the way of student learning in school. They recommend school breakfasts, deworming programmes, and micronutrient supplementation - combined wherever possible both with health education and with improved school sanitation resources - as cost effective ways of increasing learning achievement in schools. Turning to the specific case of AIDS, it is acknowledged that the search for affordable vaccines and treatment therapies may take years. In the meantime, the main strategy for holding back the spread of the HIV virus is education, with consequent behaviour change on the part of individuals. Education must reach those who are at highest risk. Evidence suggests that a primary group for such education is teenagers and young adults: "in many developing countries more than half the population is below the age of 25 years. In many countries over two thirds of adolescents aged 15-19 years, male and female, have had sexual intercourse. Adolescents and young adults (20-24 years of age) account for a disproportionate share of the increase in reported cases of syphilis and gonorrhea world-wide... In addition, at least one fifth of all people with AIDS are in their twenties, and most are likely to become infected with HIV as adolescents." (School Health Education to prevent AIDS and sexually transmitted diseases. WHO AIDS Series no. 10 p. 1.1992.) What then are the most appropriate ways of reaching these groups? What potential do schools have to provide a base for AIDS education? The aim of the study reported here is to provide insights into policy, practice and potential for health education within school systems in Africa and Asia, combining detailed case studies from four countries with a broader analysis of reported activities from the two continents. ¹ ¹ For details of the literature and document search see Section 2: Case studies. A model of health education Explanatory models of health education generally propose a link between health information and health behaviour, but agree that the link is not a direct one. For example, a review of nine studies on AIDS education (Witte 1992) concludes that "adolescents and young adults know about AIDS and how to prevent it, yet they don't". There are three main health education models, each with a number of variants. Behaviouristic models (such as the health beliefs model and the theory of reasoned action) focus closely on the individual, looking at the positive and negative forces which play on him her, and hence mould behaviour. Social reaming models (eg: Green 1991) add to this the context of social networks and the environment in which the individual operates. Here, the individual is seen as an active agent who plays a role in creating a social and physical environment. Thirdly, there are 'education for liberation models' which focus on empowerment and community action (e.g. Werner & Bower 1982, Freire 1970, Wallerstein 1992). In exploring the practical implications of these different models for curriculum development, it is clear that several elements are important in developing health education interventions. First, for information to be translated into behaviour, there must be an intention to act on that information. The intention to act is the result of a complex interplay of factors, including: - having the knowledge to understand that one is at risk - believing yourself to be at risk, and seeing that risk to be serious - valuing the outcome and costs of different (health promoting) actions more than the benefits of current (less healthy) actions. Research shows, for example, that information which emphasises the behaviour of certain "high risk" groups (eg: sex workers in connection with HIV/AIDS), makes it more cliff cult for people who are outside that group to believe they too are at risk. Alternatively, where an individual acknowledges risk, but feels powerless to do anything about it, then s/he may cope by denial of the risk. Therefore, people do not only need to know "what" to do, they need to know "how" - and to have the opportunity to practice and feel they are capable of change. Secondly, assessment of risk and of the cost of changing to more health - promoting behaviour does not take place in isolation of others. It is often the case that current actions are supported and valued by friends, relatives and others who are important to the individual. Where this is the case, the individual will need to be able to negotiate any change in behaviour without fear of losing support from these key people. In educational terms, this stresses the importance of activities which enable young people to reflect on and discuss values, and reasons for behaving in different ways. Third, discussion of risk also needs to take on board the fact that physical health is not the only concern (or even a major concern) of young people. As will be clear from the results of this study, young people stress priorities to do with personal relationships with friends and families; survival at school and home; thoughts of who they are and what they will be, and concerns about much bigger and broader social and political issues. Their concerns will influence how much time and energy they are willing to spend taking health issues seriously. The more health education is able to connect with their concerns, the more likely it is to be successful. Finally, environmental factors have a substantial influence on the extent to which people can adapt their behaviour. Accessibility and availability of health facilities are key components in supporting health promotion. Policies and practice in schools, for example, food provision, or water supply and sanitation practices, can do a lot to support school health. Figure 1 (Adapted from Green 1991 p.369) summarises the main elements outlined above, and provides a helpful model for curriculum development in health education: Figure 1 (Adapted from Green 1991 p. 369). As will be seen from the evidence presented in this paper, achieving this combination is far from straightforward. It involves: - establishing clear links between the health and education sectors centrally, which promote co-ordinated policy development and implementation - basing the health education curriculum on the health needs and concerns of school students - ensuring that teaching methods used are relevant to the development of skills, and do not focus simply on the transmission of knowledge - ensuring that teachers are adequately prepared, both in terms of knowledge and in terms of the teaching skills necessary for the development of skills in their pupils - ensuring that, at the very least, the health environment of the school is reasonable - and that the general health environment is also being developed. Where health education focuses on sexual health, including AIDS, the whole equation is made that much more difficult in that the subject matter, attitudes and "skills" are frequently "taboo" topics, embedded in a complex array of traditional cultural and religious values. Does health education affect health knowledge, attitudes and behaviour, and influence health outcomes? a. Arguments for strengthening health education in schools Health education presents a special challenge to policy makers, in that it necessitates the development of strong linkages between two important government sectors - health and education. Any developments in health education have to weigh up the relative public health advantages of including health in the school curriculum, against the educational and pedagogic concerns of increasing "curriculum overload" - diverting attention from the key areas of literacy and numeracy. If health education is to be strengthened, its public health advantages will need to be clear. This section summarises available evidence on this issue. It makes some reference to evidence from developed countries, given the very limited evidence currently available from developing countries. There are at least four practical arguments for considering strengthening health education in schools (British Council Feb. 1992): - feasibility (in theory you know where the schools are, when they operate, what numbers you can anticipate, and what systems you must go through to gain access either on a one-off basis or in terms of developing more systematic programmes) - linkage to communities (with schools often providing a community focus, a meeting place, and a channel of communication i.e.: from school children to their families and to their out-of-school peers) - increasing the use of a possibly under-utilised resource (i.e.: "schooling", with a little imagination, can go beyond the development of basic numeracy and literacy skills, and school buildings and (where they exist) other school resources can be extended to provide a broader community resource) - sustainability (de: when it is possible to introduce health activities into general school life, without the introduction of new staff or special resources, but simply by adapting what is taught, such interventions are, in theory, sustainable.) Education systems in many parts of the world have already made significant in developing school health (education) programmes. For example, the British Council report (1992) presents a number of case studies of innovatory projects (e.g. oral self- care in Delhi, an integrated development project in Kenya, health in mathematics in Kenya, health promotion in Nepalese schools, Child-to-Child in Burkina Faso). Whilst some of these projects have had a national impact, the majority are on a small scale, tackling one aspect of health or one area of the school curriculum. b. Evaluation studies of general health education programmes Literature searches of key databases highlighted only one large scale, school health education evaluation study, concerned with broad ranging health education curricula. This is from the US (Cornell et al 1986). It compared four different school health education programmes, each implemented in a large number of schools. It evaluated the programmes over a two year period, and looked for influences on health behaviours, attitudes and knowledge. The study concludes that: "school health programs for primary grade students have important effects on students' self-reported behaviour, knowledge and attitudes. The largest and most consistent effects were found in the domain of health knowledge effects for both health attitudes and practices were less powerful the impact of health programmes may fade unless reinforced and amplified through family practices as well as continued effective school health programming." (p. 249) The study acknowledges that the methodology used provides very limited evidence on health behaviours and none on health outcomes. But it highlights the methodological dilemmas of attempting both to collect and then explain such data, as well as the prohibitive costs of such data collection. A UK review on the effects of school health education on health-related behaviour (Reid and Massey 1986) presents a more positive picture, drawing on evidence from a wide range of small and larger scale interventions. They conclude that "given suitable methods, used in appropriate contexts, schools can favourably affect teenage health-related behaviour in relation to smoking, oral hygiene, rubella immunisation and teenage fertility. There is also some evidence for potential success in the field of diet and exercise...and indications that some health education lessons travel home and affect family health behaviour." The initial provision of "appropriate contexts and methods" is worth keeping in mind, as is the fact that many of the programmes referred to are limited either to a given health issue, or to a specific geographical area. Turning to developing country literature, Loevinsohn (1990) has reviewed journal articles (1966-1987) evaluating all types of health education interventions in developing countries. Of 67 articles reviewed, only seven make reference to school health education programmes - two of which focus on dental health. He concludes that "From the few well conducted studies it appears that health education can sometimes lead to changes in behaviour and in health status although there remains room for legitimate scepticism." Looking at the quality of these studies overall, Loevinsohn could find only three which he considered to be methodologically sound, none of which were from the school studies. An overview of school health education in India (WHO/UNESCO/UNICEF 1992) notes that "Though evaluation of learning outcomes is a major recommendation of the National Policy on Education, this is not done because of inadequate implementation of the programme." Other studies described in the same publication indicate some pupil assessment on health, and some processes in place for materials' design and development work. But none address the problem of looking at the effect such programmes have on the health behaviours of young people. The study reported in this document provides some comparative evidence of variations in apparent health understanding of young people in different countries. For example, in Pakistan (where health education is virtually absent from the school curriculum, and is certainly not implemented), the "picture of health" provided by young people, encompasses a narrow range of issues, often in little or no detail. In comparison, the Ugandan children (who receive a much more substantial health input) address a much broader range of issues; and, through both words and images, provide greater detail, suggesting a greater depth of understanding; however, this study has not attempted to link this understanding to health outcomes. There is no further evidence from the in-depth country studies to suggest any wide scale evaluation of school health education either completed or in progress. c. Evaluation studies of "subject specific" health education programmes There is more tangible evidence available on specific programmes, but again, the developing country literature is thin. Ford et al (1992) have reviewed literature on the health and behavioural outcomes of population and family planning education programmes in school settings in developing countries. They start with reference to an American study (Kirby 1984), which concludes that: - most programmes included in the study improve knowledge - there does not seem to be much change in attitudes to various aspects of sex and family planning. However, "permissive attitudes" do increase with age, but longer programmes appear to prevent students becoming more permissive • there is limited impact on social skills decision making relating to sexual matters • there is no impact on sexual behaviour (this is significant, given the prevalent public perception that sex education increases promiscuity) • there is no impact on contraceptive use or pregnancy, except where education is closely linked to service provision. Where this is the case, there appears to be a significant decrease in pregnancy. On developing country literature, Ford et al conclude that there is minimal implementation of family life/sex education in Africa, hence no systematic evaluation. A somewhat different picture is given by Muito (1993) suggesting that by 1989 eleven African countries had on-going population education programmes, and a further eight were being prepared. However, this initial assertion is countered by later observations that, in the majority of cases, programmes show an absence of firm policy, and major constraints to implementation. Ford et al found no published accounts of evaluations from Asia, and only two examples from unpublished work from Thailand and Vietnam. The Thai work indicated improved knowledge on contraception, and some evidence of increased contraceptive use. The Vietnamese study also notes improvements in knowledge, but little else. d. Evaluation of AIDS education programmes There is a growing body of literature attempting to evaluate the impact of AIDS education programmes. Oakley et al (1995b) have reviewed a wide range of HIV/AIDS prevention studies from the English language literature. Of 815 studies reviewed, there were reports of 68 evaluations of "outcome" measures. Oakley et al then analysed these 68 reports for "methodological soundness" - using the following criteria: 1) aims clearly stated 2) randomised controlled trial 3) replicable intervention 4) numbers recruited provided 5) pre- and post-intervention data provided for all groups 6) attrition discussed 7) all outcomes discussed. Using these criteria, only 18 of the 68 studies were considered methodologically sound. Only nine of these concerned interventions with young people (none from Africa or Asia). The results from the review in general "suggest that sound and effective interventions are most likely to be skill-based interventions... in community settings using interviews and role play, and targeting behaviour or combined behaviour and knowledge outcomes" (Oakley et al 1995b: 484). The Oakley review does not include evaluations of mass media campaigns - where the possibility of conducting randomised controlled trials is problematic. Reports from national AIDS control programmes focus on knowledge/attitudes practice studies concerned with the impact of mass media programmes. These studies indicate that in many parts of Africa, AIDS awareness is growing, but that this awareness has yet to be translated into potentially health-promoting behaviours (eg: reduction in number of sexual partners, or increased condom usage). We found no published examples of evaluations of schools AIDS education programmes in developing countries. However, evidence emerging from AMREF in Uganda suggests that increased levels of knowledge of HIV/AIDS taught through the school curriculum has had little impact on teenage pregnancy and STD rates. There are increasing numbers of studies in some countries (eg: Uganda and Ghana) which are starting to look at the sexual practices of young people, but the vast majority continue to focus only on knowledge and attitudes. The Ugandan findings may put funders off investment in health education. However, it will be important to explore the extent to which countries which have a low prevalence of HIV can harness the benefits of education (in terms of its effect on knowledge) at an early stage. e. Key factors thought to affect programme implementation Several of the studies referred to above have also considered those factors which influence programme success. To date, the following points are worth considering: - Links with health services: those studies which have been able to demonstrate influences on health behaviour and impact on health outcomes have been directly linked to locally available health services (eg: immunisation services, dental services, contraceptive services). The link with the health sector is also seen as vital for in-service training (for example, in the UK, the majority of teacher in-service training in health education is provided through the National Health Service). - Teacher training: Some studies stress the value of in-service training in health education. One UK review (Reid and Massey 1986), however, concludes that, in some cases, teachers with little health education preparation may provide results that are as effective as "specialist teams". However, from the Connell study it is clear that the costs of in-service training (which tend to be the only substantial "additional" implementation costs) often act as a major constraint to implementation. - Time devoted to health education: Connell concludes that the largest improvements are found where more time is spent on the programme. Ford, looking at sex education, does not find this to be a factor. - Parent participation in the classroom: Several studies indicate the importance of linking home and school, ideally through involvement of parents in school. - Timing health education input: UK studies emphasise the 11-14yr. age range as crucial. - Peer support/activity: this again is seen as a positive strategy for both general health education and sex education programmes. Operational school policies: these can help improve implementation, where they are supportive of healthy behaviour (eg: school meal nutrition, smoking etc.). f. Some methodological problems with evaluation studies of health education programmes As has been mentioned above, evaluation of this nature presents some important methodological problems: - Programmes often encompass a diverse selection of issues (eg: basic hygiene, sanitation, food safety and diet, accidents, drugs, sexual development, STDs, pregnancy, family planning). Given the complexity of each, in terms of possible short and long-term health outcomes, the selection of appropriate indicators would present a major challenge. - Health education is often concerned with long-term "health habits" - the benefits of which may not be apparent for several years. Hence timing measurement of health outcomes becomes problematic. - Health education is only one of a wide range of factors influencing health behaviour, and is hard to disentangle. - Many studies use "before/after" measurements - but with no control group. This renders attribution of effect open to debate. Oakley et al (1995b) and Loevinsohn (1990) identify the need to implement more randomized controlled trial evaluations, which include behavioural outcomes. Given that health education is generally poorly funded, it may be worth investing time and effort in producing clear evidence of its' benefits. It should be quite feasible to use the randomised control trial approach in testing out school health education curricula and their implementation. However, unlike (for example) drug trials, the range of cultural, social and economic factors involved in education provision would still make interpretation of results problematic (eg: is any effect found due to programme "content", teacher factors, student factors, external confounding events such as media coverage etc.). A further difficulty with using such trials as a basis for deciding on wider implementation of a (successful) programme is the extent to which a limited trial can be "scaled up" effectively into a regional or national programmes. g. Conclusions on the health impact of school health education programmes To conclude this section, three points are worth highlighting: 1. Whether one looks at developed or developing countries' literature, the available public health evidence of the value of school health education is limited. This gives policy makers little to go on, and indicates an important area of research (which is acknowledged to be methodologically problematic). 2. The evidence that is available suggests that, at best, health education is most effective in improving health knowledge. 3. The only examples where there is a clear effect on health behaviour and health outcomes, appear to be where there is a strong link between schools and health service provision. Health education in the curriculum Health input is identifiable in the curricula of all four countries involved in this study, at both primary and secondary levels. There is also some documentary evidence from a range of other countries in Africa and Asia, to show where and how it is located in the curriculum. The two main models are: - treating health education as a distinct "subject" area (e.g. India, Nigeria, Pakistan, early secondary level in Sri Lanka) - integrating health education into other areas, but usually with a block of input within some form of life-skills or social studies programme (e.g. Uganda, Ghana, Kenya, Namibia, Zambia, Philippines, and primary level and later secondary level in Sri Lanka). Those countries which say they have an integrated model mention science (especially biology and physiology), home science home economics, social education social studies/cultural studies ethics, agriculture/environmental education, and physical education (PE), as the main subject areas in which health education is included. Recommendations from the literature as to which of these models is more effective are not conclusive. British and American literature suggest that integration can help "protect" health education time - but this approach does require careful co-ordination, and some element of a core programme (eg: within social studies life skills), to avoid fragmentation. Evidence from the in-depth studies reported in this document supports this view. Uganda and Ghana, which both have an integrated approach, indicate that they have greater health awareness and coverage, than is the case in either India or Pakistan - where teachers acknowledge that health education is not examined, and is often "squeezed out" of the timetable, in the face of competing pressures from examined subjects. Whichever model is used, finding space in the curriculum for health education is a dilemma that has beset schools world wide. This comes across clearly as much in the four countries included in this research, as it does in the literature. Lockheed and Verspoor (1991) refer to work by Benavot and Kamens (1989) on curriculum time devoted to major content areas in 90 countries. Of nine content areas listed, hygiene education comes bottom of the list, accounting for only 1% of curriculum time. Physical education and moral education each accounted for 5-7% of curriculum time. The other two areas where health education is commonly integrated, science and social studies, each account for around 8-10% of curriculum time. During the period of the study, we have been unable to find detailed information on the place of AIDS education within curricula. However, what has emerged from the country studies is that where it is included in the curriculum, it is generally to be found alongside health education on specific diseases, and is limited in content to provision of basic information The wider objectives suggested by WHO (1994), of developing interpersonal skills for delaying the start of sexual activity and negotiating safe sex, plus attitudinal work on care of people with AIDS, are not yet part of general practice. Possible exceptions to this can be seen in two sets of materials: from Uganda (the "Secondary School Health Kit on AIDS control" and "Training for AIDS Prevention Education") and from the South Pacific ("Education to Prevent AIDS/STDs in the Pacific: a Teaching Guide from Secondary Schools"). Ford's review (1992) indicates the limitations in provision of sex education in much of Africa and Asia, making it unlikely that AIDS education would stand out as a clear subsection of sex education. The obvious "home" for AIDS education is within the context of broader sexual health and development. a. Curriculum content WHO guidelines on comprehensive health education in schools suggest a number of distinct "health issues" which may reasonably be included. These are presented in summary form in the first column of Table 1 below. The remainder of the table summarises some of the data collected in this study. This provides some insight into the breadth of the curricula, the extent to which teachers and parents acknowledge that the issues are covered, and the extent to which those same issues are raised by students. From this very simple overview, the paucity of health education in Pakistan is quite apparent. The India data suggests a broad curriculum, which is not yet implemented for the most part. There is some suggestion, however, that health education is clearly linked with "disease" in the minds of teachers and parents, and this is echoed by pupil perceptions of what makes them "unhealthy". The Ghana and Uganda summaries suggest a greater degree of curriculum implementation, with combined data from Ghana stressing the personal hygiene/sanitation elements, and Uganda showing a much broader range of issues being recognised and commented specifically on by both teachers and students. Dental hygiene, exercise/rest and accidents appear to get minimal attention in any of the countries (although dental hygiene may well be incorporated in personal hygiene). Drugs education, including smoking and alcohol, also gets little mention. These points may well reflect the very different health priorities of developed and developing countries (although accidents is possibly an area to which developing country health education programmes could pay greater attention). Of the four countries, Uganda is the only one where AIDS gets more than a passing mention in textbooks, and is recognised as important by both teachers and students. Table 1: Health education curriculum content in the four case studies \| Issue \| Pakistan \| India \| Uganda \| Ghana \| \|------------------\|----------\|-------\|--------\|-------\| \| personal hygiene \| ![Checkmark] \| ![Checkmark] \| ![Checkmark] \| ![Checkmark] \| \| dental hygiene \| ![Checkmark] \| ![Checkmark] \| ![Checkmark] \| ![Checkmark] \| \| food safety \| ![Checkmark] \| ![Checkmark] \| ![Checkmark] \| ![Checkmark] \| \| nutrition/diet \| ![Checkmark] \| ![Checkmark] \| ![Checkmark] \| ![Checkmark] \| \| Topic \| Teachers \| Parents \| Students \| \|----------------------------------------------------------------------\|----------\|---------\|----------\| \| exercise/rest \| \| \| \| \| sanitation (including latrines/water sources) \| \| \| \| \| pollution (from traffic/industry) \| \| \| \| \| drugs (including: smoking and alcohol) \| \| \| \| \| accidents \| \| \| \| \| sex education \| \| \| \| \| diseases/"being sick/ill" \| \| \| \| \| AIDS \| \| \| \| Additional issues raised by young people, but not referred to by teachers or parents: \| Topic \| Teachers \| Parents \| Students \| \|----------------------------------------------------------------------\|----------\|---------\|----------\| \| problems with parents \| \| \| \| \| problems with friends \| \| \| \| \| problems with teachers/studies/school \| \| \| \| \| personal worries \| \| \| \| \| political/social concerns \| \| \| \| Key - included in a key text box - referred to a specifically by most of the teachers consulted - referred to a specifically by most of the parents consulted - included in their "draw and write" responses by 20% or more the young people consulted - note: no parent data was collected in Uganda b. Teacher preparation There are four key questions to consider on teacher preparation, related to health and AIDS education: • to what extent are teachers trained in the "content" of health and AIDS education, and how important is specialised training in this area? • to what extent are teachers trained to implement recommended (participative) teaching and learning methods? • should training be an essential element of basic training, or is it better presented through in-service training? • to what extent do teachers feel able and willing to take on responsibility for health and AIDS education? The Connell (1986) study highlights the importance of teacher preparation in both "content" and "methods". Where teachers have been adequately trained, students show improved learning. Lewis (1993), reviewing 50 years of health education in schools in the UK suggests that, as yet, no conclusion has been reached as to whether schools provide a better quality of programme by using a "specialist team" of staff in the school with health education expertise, or by encouraging all staff to get involved (with much more limited training). He comments that "Anecdotal evidence suggests that either system can be equally successful or equally calamitous". Again, the developing country literature on teacher preparation for health education is extremely limited. Lockheed and Verspoor (1991) indicate that across developing countries generally, basic teacher training is weak, didactic, and suffers from an overcrowded curriculum. This view is echoed by an ODA study in Ghana on teacher training for the junior secondary school level. From the in-depth country studies it is clear that health education is not included in the teacher training curriculum. Even where there is a broader based "life skills" curriculum element (e.g. Ghana, where the subject is part of the core curriculum in schools) it is not core curriculum in teacher training. In Uganda teacher training for health education has been carried out during a 10 day special training programme. The training guides teachers in what to teach on health education subjects, including AIDS education. Some attention is given to how to teach. Special training workshops on AIDS prevention are conducted for health educators who, in turn, become trainers of teachers. Central to the approach taken in this training is the concept of self awareness and learning to facilitate group discussions. Interactive teaching methods, such as games and role plays, are an important aspect of this training. However, one of the problems recognised in Uganda and Zambia, during follow-ups of teachers who were introduced to interactive teaching methods, is that the majority lapse back into didactic teaching. As to how teacher training should be provided, Lockheed and Verspoor emphasise in-service training as being of more practical value, rather than a further extension of basic training; however, this presents a number of logistical difficulties. This is highlighted in the American evaluation study (Cornell 1986), where the (limited) additional cost of in-service training was perceived as a key barrier to the effective implementation of programmes. c. School as a "health supportive" environment Beyond the formal curriculum, there are at least four further levels at which health education may operate within schools: - via school health services - through planned extracurricular activities - through broader environmental features of the school (eg: presence of some kind of school health policy; health regulations governing sanitation provision or school meals; the extent to which the school provides a "health supportive" environment). - through active contact between schools and the community - especially children's families. This study has not attempted to address these issues in great detail, but some insight into them is possible from the literature and from the country studies. School health services UK and US studies stress the importance of effective linkage between health services and school health education programmes, if behavioural change and health outcomes are to be achieved. Different countries include varying levels of provision. For example, in Namibia, children in grades 1 and 6 should get a physical examination, and it should be ensured that their immunisation records are up to date. In the Philippines there is a system which includes medical and dental services, as well as school health nursing. There is also a system of "school health guardians" who are teachers trained to monitor the health of pupils (WHO/UNESCO/UNICEF 1992). None of the countries visited for this study appears to have a consistent, on-going school health service, which has regular contact with large numbers of schools. In Pakistan, there is some reference centrally to such a service, but it is non-operational. Teachers' perception of the service is that it is there to provide medical care for pupils taken ill during school. They do not mention any form of preventive service at all. In India school health checks should take place once per year - in practice, the service is, in Kerala, again mainly non-operational. The picture for Uganda appears similar. In Ghana the school health service may be more operational than in the other countries. According to a Maternal and Child Health report for 1992, the school health service visited 25% of schools during the year, and gave 3,500 health talks (which must be set beside the total of over 21,500 schools). This data is, to some extent, confirmed in school studies, many of which say that they have health workers come in to talk to pupils from time to time. Specific health intervention programmes An alternative approach to linking health education to services is through a targeted combined programme, focused on a given health intervention. Again, the Philippines has examples including special programmes on deworming, TB control, and school sanitation (WHO/UNESCO/UNICEF 1992). This approach is being planned on a pilot basis in Ghana - as part of a multi-country study - and had been tried in the past (for deworming, for yellow fever vaccination and for epidemic control). In both the "special intervention" programmes, and school health service programmes, there is usually a "health education" element included. This tends to take the form of "one-off" talks, or possibly several sessions around a particular area (e.g. hygiene and sanitation), unless a more comprehensive approach to health education is already in place. From the literature there is no evidence of an intervention approach being used to tackle AIDS. (A possible idea for such an approach would be to provide condom distribution or STD services through schools; however, the likelihood of this proving acceptable in Quite how such programmes are implemented varies. In some cases, the intervention is planned and implemented entirely by the health service, basically only using schools as an easily accessible venue for a given intervention. In others, school teachers are more actively involved; for example they may actually administer the de-worming tablets, or be trained to monitor aspects of pupils health, or be involved in teaching on a particular issue. Extra-curricular activities Health clubs In order to take these one-off events a step forward, some countries have started to experiment with health clubs. These tend to be more regular extra-curricular activities (e.g. weekly or monthly), attended voluntarily by a subsection of the school. From this study, some evidence of health clubs was found in Uganda, India and Ghana. In India and Uganda the setting up of health clubs is in the first implementation phase, and little evidence of active health clubs was found in the areas included in the study. In Uganda health clubs are starting to be organised by the Safeguard Youth From AIDS movement, and include in and out of school youth. The AIDS support organisation (Taso) just started to form a youth AIDS club for youths who have experienced the loss of at least one parent. The young people are enabled to share experiences and develop initiatives for peer education on AIDS. In Ghana, one of the Eastern Region schools has a health club, run by a local GP. Topics are selected by the pupils, and the afternoon's programme is then arranged by the GP. This often takes the form of an activity, followed by a question and answer session. A similar format is described for Sri Lanka, where open discussions, peer-learning, self-enhancement and community services are part of club activities. The Sri Lanka health club development, like India, is being supported by UNICEF. In Zambia Dr Baker initiated the Anti-AIDS project under the umbrella of the National Family Health Trust. Anti-AIDS clubs are mainly school-based, initiated and led by students, and supported by interested teachers. Support is also provided by Provincial AIDS support workers and health educators. One example of activities established is recruitment of local youth clubs to develop drama performances. NGO activities In several countries, in particular schools or districts, non-government organisations take an active role in health activities connected with schools. This can take many forms (e.g. from working together with teachers in a particular school during school time; using the school simply as an entry point, or as a meeting base for extra-curricula activities). Several religious organisations work in this way, as do planned parenthood groups, youth organisations and the like. A number of the programmes noted both in the countries visited, and through the literature, focus on personal relationships, sexuality and the problems faced by adolescent girls (especially pregnancy/poverty/exploitation). Examples of involvement of NGOs from the country studies include the Pakistan Youth Organisation's work on AIDS; the Scripture Union's work in Ghana on healthy relationships (which includes reference to AIDS); HEAL, in co-ordination with a number of other NGO's in India works around sex education which includes the development of sex and AIDS education sessions integrated in a module on personal development for schools. In Uganda the Safeguard Youth From Aids (SYFA) movement co-ordinates the activities of NGO's, e.g. community organisations such as scouts, churches, mosques, social and sports clubs, and governmental organisations to help young people in and out of school to protect themselves from HIV infection. Special activities related to the prevention of HIV infection through blood, infections and needles, organised by small clubs or "clans", are encouraged. WHO's Adolescent Health Programme has produced a lengthy compendium of projects and programmes in adolescent health (WHO/International Youth Foundation 1992). This includes many examples of ways in which NGOs are working together with education and health ministries to address health issues pertinent to young people. Many of these programmes focus on the sexual and emotional health of young people. Extra-curricular activities of this nature obviously have some advantages over formal schooling, in terms of being more able to introduce innovative communication techniques; however, these need to be additional to rather than instead of core health education teaching if they are to reach a wide range of school-going students in a consistent way. School health environment US and UK studies also stress the importance of the school environment in promoting health, and the problems created where "theory and practice" do not match up. A Tanzanian study of a dental health programme (Nyandindi et al 1994) has highlighted this issue, showing the problems (in this case) in teaching children about oral hygiene and avoidance of sugary food, in a situation where few children can afford the tooth brushes and paste recommended, come to school with no breakfast, and can turn only to local vendors for snacks during the day. The evidence from this study indicates that many of the schools visited have minimal water and sanitation facilities. Those that provide school meals offer a very limited (starch based) diet. Whilst there was talk in some places of regulations controlling food hawkers, these were often either not enforced, or simply meant the hawkers moved a few yards from the school entrance. As is clear from the comments below, the contradiction between health education teaching and school practice does not go unnoticed by the young people. This highlights the importance of paying attention to the school health environment at the same time as working on curriculum development. "We should eat a balanced diet at school but at school we only eat posho and beans year after year." (boy 12yrs P6) "Our school toilets should be repaired, the pits are broken there is no water for cleaning the toilets after use, our urinals are so dirty to look at, they have green plants grown on them the urine can't pass through because where the urine is to pass it is blocked our latrines should be built far away from water source because when the urine is blocked all the faeces will move to the water source." (boy 12yrs P6) School/community links One further feature stressed in the literature is the importance of parental involvement in health education programmes, to ensure that what is learnt at school can be reinforced and developed at home. Evidence that this happens in the four countries studied is generally limited to initiatives already described under the heading of "extracurricular activities". Teachers from the Lahore schools generally feel that parents are unconcerned uninterested in their children's' schooling. There is some evidence of Parent-Teacher Associations being operative in some (more affluent) schools in Uganda and Ghana; however, on the whole, these focus on fund raising for the school, and do not get involved in anything to do with student learning. d. Teaching methods and materials Curricula outlines and textbooks give little indication of what actually happens in the classroom in terms of the teaching methods and materials used. For the purposes of this study, it was not possible to include much classroom observation. However, anecdotal evidence and reports on school education suggest that, in all four countries, health education, like other aspects of the curriculum, is taught didactically, with little encouragement of student interaction. This, as indicated in the models of health education discussed earlier, provides limited opportunity for young people to develop health-promoting skills and attitudes. From the literature, it would appear that there are plenty of small and medium scale examples of more active approaches to learning in schools, significantly encouraged by the Child-to-Child movement. A British Council seminar report, "Community Health and the Primary School" (1992) includes details of Child-to-Child work in India, Kenya, Nepal, Burkina Faso, Sierra Leone, Uganda and Zambia. Developments in this area will no doubt be encouraged by the recent publication of a new Child-to-Child book, Children for Health: Children as Communicators of Facts for Life (Hawes and Scotchmer (eds). Child-to-Child Trust UNICEF, 1993). The Child-to-Child programmes often help to integrate health education in a range of relevant subject areas, and to develop appropriate and lively teaching materials. For example, in Zambia, the integration of health education in the national curriculum has benefited from the Child-to-Child pilot programmes. The experience developed through these pilot programmes has influenced the decision to integrate health in a variety of subject areas: science, languages, social studies and home economics. Outreach activities to be carried out by teachers, however, are often beset with problems. Reflection on Child-to-Child programmes in Zambia, for example, show that teachers have to be highly motivated to sustain time consuming outreach activities, which often take place in their free time. Within AIDS education there are also a growing number of examples of teaching which is moving away from purely didactic approaches, to more interactive approaches, though it is not always clear to what extent such sessions are an established part of school life, or are occasional special events, initiated by external agencies. Some examples of games used include: "ZigAIDS: an educational game about AIDS for children". This game was developed in Latin America, and is described in Hygie (1991), Vol. 10(4), pp. 32-35. "1-4-1 AIDS game" (1992) TALC (Teaching AIDS at Low Cost). This is a game for reaming about HIV/AIDS and sexual health in a social context for children, adolescents and adults, in particular teachers, parents and youth leaders. Some examples of videos, of which there are now several available for use with school-aged students, include: "It's not easy" (1991) produced by The Federation of Uganda Employees and The Experiment in International Living Uganda with Uganda Television. "Unmasking AIDS" (1991) produced by IPPF (International Planned Parenthood Federation), London. "Karate kids" (1990) produced by Street Kids International, Toronto (cartoon format). The last two examples are designed for school-aged teenagers, but are, in fact, more suitable for out-of-school youth. An example of drama can be found in the Uganda study, which highlighted the use of drama activities in schools, with the draw and write data giving some indication of the impact this has on young people. South Africa has also developed this approach, such as described by Lynn Dalrymple in "A drama approach to AIDS education: A report on an AIDS and lifestyle education project undertaken in a rural school in Zululand", (1992). In Ghana, theatre has been used with out-of-school youth. e. The relevance of health education curricula to the lives of young people. Assessing the relevance of health education curricula can be considered from a number of perspectives: - Do they address the health issues which affect young people (short and long term)? - Do they address the health issues which concern young people? - Do teaching materials reflect the context in which the young people live? These three questions in turn suggest the use of a variety of techniques for needs assessment for curriculum development. The first emphasises the value of health surveys of young people, and epidemiological analysis indicating long-term health behaviours and their impact on health outcomes. The second emphasises the value of involving young people in curriculum design, through exploring with them their health concerns and priorities. The third question again indicates the importance of involving young people - or at least people familiar with the living conditions and experiences of young people - in the design of educational materials. This section provides an overview of the techniques already developed, and the extent to which they have been implemented and used for curriculum development in Africa and Asia. It includes reference to specific work on AIDS as well as general health. Surveying the health of young people Two obvious approaches to establishing the health needs of school students are special surveys, and analysis of school health service statistics. From the four in-depth studies, only Ghana appears to be developing a significant body of expertise in assessing health priorities for schools, on a national scale. It has already conducted one school health survey and is currently planning another. Health issues identified include dental caries, upper respiratory tract infection, ring worm, intestinal worms and head lice. Whilst this data is intended to inform the school health curriculum, it has not yet been used for this purpose. The WHO (1992) guidelines on school health education describe several other examples of health survey work. Nigeria conducted a survey of the health status of school children in 1986, the Philippines has carried out specific surveys as a basis for health intervention programmes (e.g. for anaemia, goitre prevention and deworming). Sri Lanka has also used research on factors affecting reaming achievement to validate specific health interventions. WHO is also supporting an on-going multi-country study of the health and health behaviours of adolescents (Smith, Wold and Moore 1992). This uses a standardised self-completion questionnaire, administered in schools, under exam conditions. To date, there are no developing countries participating in this research. India provides an example of the use of school health service data. The medical sector in the Department of Education of the Municipal Corporation in Greater Bombay in India, compiles morbidity data from the school health service visits, to inform on special topics for health education during school health visits. Finding research studies which may be of benefit to the development of AIDS education proved rather more fruitful than needs assessments on the general health of young people. Such studies were noticeably very much more frequent in Africa than Asia and, within Africa, much more frequent in Eastern and Southern Africa than West or North Africa. In Zambia a questionnaire has been developed to find out what the impact of AIDS is on teachers and students, and what they know about AIDS. The results will be used to develop a curriculum on AIDS education in schools. Evidence from the country studies indicates that Uganda has developed the most extensive body of literature on AIDS awareness and the sexual behaviours of young people - although on the latter point, Ghana also has a good body of literature (especially focused on teenage pregnancy). Many reported studies are likely to be KAP studies, often evaluative rather than formative, looking at the impact of media campaigns. However, many include useful elements (e.g. summarising important local WHO has produced proto-type survey instruments for schools studies on AIDS awareness and health behaviours relevant to AIDS. (WHO Global Programme on AIDS 1989). Whilst this proved too detailed and comprehensive for the current study (which also encompasses other aspects of health education), it includes useful ideas, particularly in looking at the health environment of the school. Exploring the health concerns of young people There is rather less evidence, from either the literature or the country studies, of attempts on the part of curriculum planners to explore the health concerns of young people, and build teaching on these concerns. One major development in this area is the pioneering work of Wetton and Moon in the UK, who developed the 'Draw and Write' technique (Williams, Wetton and Moon 1989). The technique was used in the in-depth country studies, and is described in more detail on page 20. It has been used extensively in the UK to explore a range of health concerns (for a recent example see Oakley et al 1995). There are now a growing number of examples of its application in other countries appearing in the literature (Yugoslavia: Zivkovic et al 1994; Australia: Hughes 19??). Five country European study: (Newton, Bishop et al 1995). The technique is also promoted in a recent WHO training manual (Weare and Gray 1994) and a publication on AIDS education in schools (Collyer and Lee 1994). In the in-depth studies, young people were asked to draw and write about what makes them unhappy and unhealthy. Key concerns highlighted by young people in the four countries include: from Pakistan: - concerns about the quality of the environment with considerable attention paid to pollution from traffic and industry from India: - most frequently mentioned are concerns about potential death of a parent, beatings by parents, and problems at school, e.g. failing exams and problems with teachers. This is followed by concern about food hygiene and diseases from Uganda: - strong evidence that AIDS is high on the agenda of young people, but that this concern is well embedded in a wide range of other health concerns, many of which the young people are able to describe in considerable detail. from Ghana: a preoccupation with personal hygiene, coupled with much more heartfelt concerns related to family relationships, school friendships, success and failure at school and personal worries. The young people were also asked to draw and write about AIDS. Detailed results are presented in Section 2. The variations are striking: in Pakistan researchers were unable to undertake work; the India data showed a wide range of misconceptions and very limited understanding; a much more detailed understanding was seen in the Ghana data, although greater emphasis is given to transmission through cuts than sexual intercourse; in Uganda students described many ways of protecting themselves from HIV, including graphic details of how to use condoms and avoid rape. One noticeable outcome of using the draw and write exercise in this study was the surprise expressed by many adults (including teachers) of how effectively the young people could express their ideas, and how much more they knew than had been anticipated. Such insight can be built on to prepare materials which are much more likely to touch young people and make them responsive to reaming, rather than working only from an "adult" perspective of the world. Another technique which has already proved fruitful in exploring the sexual practices of young people is the "narrative method", commissioned by the WHO Adolescent Health division (WHO 1992). This involved getting groups of young people in different parts of West and East Africa to create "boy meets girl, girl gets pregnant" stories - through role play and discussion - which were then translated into questionnaires. This enabled young people to piece together their own versions of these stories, and at the same time asked them their own experiences of some of the events in the story (e.g. age of first sexual experience, experience of STDs, pregnancy and abortion.). Results from this work give very detailed insights into both the sexual experience of young people, and the dilemmas they regularly face, with boy/girl friends, peers and parents, as they become sexually active. Again, this approach to data collection was too specific for this study - but at the same time demonstrates the richness of insight that can be gained from actively involving young people in research about their (sexual) health. Involving young people in materials design and development Even if curriculum planners choose not to involve young people in helping to set the agenda for health education, it can be beneficial to involve them in materials development. This might avoid the common problems of including images and advice in textbooks, which are impractical in the context in which the young people live. One interesting example of this is a formative study in the development of AIDS Education for secondary school students conducted by the National AIDS Research Programme of the Medical Research Council in Cape Town, South Africa. Focus group discussions were conducted with young people to gain an understanding of their experiences of relationships and sexual health needs. The study provided the basic information for the production of a photo novella "Roxy: Life, love and sex in the nineties", and other resource materials such as a chart illustrating the use of condoms. The materials were based on authentic experiences of young people and aimed at "... addressing issues relating to students' needs to cope with experiences of sexuality and risk situations and addressing safer sex" (Mathews et al 1993). Problems subsequently arose when trying to implement the materials, because they were seen to conflict with "teacher's values, concerns and perceived moral responsibilities". As a consequence many teachers refused to use the resources provided. This is perhaps a salutary tale - but one worth reflecting on further. How can educators hope to influence the lives of young people if they are unable to accept where those young people are coming from? Opportunities for development To what extent do teachers feel both willing and able to take on the tasks of health and AIDS education? Evidence from the literature on health education generally provides little insight into this. The country studies asked teachers about their views on providing health education. In Pakistan and India they do not feel it to be a problem mainly because it is barely implemented, and they see little likelihood of it becoming a priority. In Ghana, teachers do not see teaching round health to be problematic. They stress the importance of providing adequate hygiene education, but do not go much further in developing their ideas. In Uganda, teachers indicate that they feel children should be taught in more depth, but covering the same issues already addressed. Some of the teachers stress the importance of making the curriculum and textbooks more relevant to the local context. They also put strong emphasis on prevention. They see lack of syllabi, textbooks, teaching resources and training as constraints to further development. They also recognise the difficulties of teaching about health in an essentially unhealthy environment. The range of comments from these teachers indicates a much greater level of awareness and readiness for development than is apparent in the other countries. Focusing on the specific aspect of AIDS education, a somewhat different reaction is apparent generally. Most teachers express some hesitation to become involved, because of the embarrassment many feel in tackling issues related to sex. The consensus statement on AIDS in schools by the World Consultation of Free Teachers' Unions on education for AIDS prevention, organised by UNESCO in 1990, noted that whilst teachers felt they had a role to play in AIDS education, they felt they would be unlikely to have much effect on young people's behaviour. They also unanimously supported the idea of involving non-teaching personnel as resource persons. Whilst this certainly makes sense in developing their own skills, what it may also be saying is that teachers would rather have health professionals tackle the issue - which would almost inevitably relegate it to being a "one-off" annual session in the majority of cases. Looking at the case study data, teachers' views cover the full spectrum of response, from indicating ignorance of HIV/AIDS, and disinclination to take it on board, through to making innovative suggestions as to how the use of condoms can be promoted and taught practically, and how people with AIDS can be invited into schools, to help overcome negative attitudes. In Pakistan, teachers have no real views on the matter - through lack of insight themselves. Those who did comment feel that specialists must be involved, since teachers have no knowledge. In India, teachers expressed general embarrassment about dealing with sex and AIDS in school. They feel sexual transmission of AIDS should not be talked about as this would just encourage the children to take an interest in sex. They also feel any teaching in this area should be left to health science teachers, and that they should be trained. Ghanaian teachers echo the embarrassment, but are more willing to talk about that embarrassment. They agree they should teach "the basic information and start in primary schools". Teachers (like the young people) currently put much greater focus on the transmission of HIV by blood (open wounds shared needles/transfusions), than on sexual transmission. Here again they caution against going into detail for fear of encouraging promiscuity. Several teachers feel that outside specialists (health workers) should deal with the issue - to answer questions they are unable or embarrassed to address. In Uganda teachers accept AIDS education as a priority, and generally feel that it should start from Primary 1. Some continue to express the view that, for example, focus on condom usage will promote promiscuity. But several feel that this and other issues should be taught, and taught practically. They agree they need further support, but see "outside agents" as additional to rather than instead of their own efforts, and suggest including people with AIDS in school programmes. They also feel they are more appropriate providers of AIDS education than parents. They indicate the importance of the subject being taught by same sex teachers (de: girls taught by women and boys by men). All the evidence from the country studies seems to suggest that whether you are talking about health education generally or AIDS in particular, the degree to which teachers express concern and indicate understanding of the issues, is clearly influenced by the level of programme implementation. The more developed the programme, the more readiness there appears to be on the part of teachers to consider further development. Conclusion Policy makers in developing countries need to address a range of issues if health education in schools is to have a significant effect on influencing the awareness and behaviour of young people. The health education model proposed earlier in this section is used again in figure 2 to summarise graphically the complex issues to be considered. Figure 2 Issues facing policy makers. Methodology a. Aims of the in-depth studies There were two basic aims for the in-depth studies: 1. to describe current policy and practice within four selected countries (two in Africa: Uganda and Ghana and two in Asia: India and Pakistan) 2. to explore the potential for development within those countries in health education generally, as well as in AIDS education specifically, within the formal primary and secondary school curricula. In order to describe policy and practice the in-depth studies set out to: • collect evidence from policy makers, in health, education and other relevant government departments, non-government organisations donor agencies on both stated policy and current implementation plans for health and AIDS education in schools; • compare this evidence with data collected directly from schools (from teachers, students and parents), to see whether polices and plans are actually put into practice. In order to present reasonable suggestions for future development, the in-depth studies set out to: • describe those issues which young people, teachers and parents consider important in health and AIDS education; • collect evidence from government offices, donors and NGOs on their perceptions of priorities for health and AIDS education; • collect evidence from both the field level and policy level of likely constraints to future development in health and AIDS education. The overall study design was determined by the Liverpool research team. Collaborating centres within each of the countries then helped to refine instruments, and undertook local organisation of data collection. Analysis was carried out in Liverpool. The four collaborating centres were: Pakistan: The College of Community Medicine, Lahore India: The Institute for Management in Government, Trivandrum, Kerala Uganda: The Institute of Public Health, Makerere University, Kampala Ghana: The Health Research Unit, Ministry of Health, Accra b. The Policy Studies The two main approaches to data collection on policy and central planning related to health and AIDS education were: a) key informant interviews b) analysis of documentary evidence. Table 3 summarises the key informants interviewed in the four countries. Wherever possible, documentary evidence was collected to substantiate information collected through interviews. c. The schools studies Five approaches to data collection were used to shed light on "practice". The primary data collection tool was: the draw and write technique, undertaken with a selection of pupils from each of a small selection of schools in each country. This data was then supplemented with: Focus group discussions with subgroups of the pupil samples. Focus group discussions with selected teachers from the same schools. An observation checklist/interview schedule to collect basic information about the schools, with special emphasis on the health environment of the schools. Focus group discussions interviews with a small sample of parents. The draw and write technique The 'Draw and Write' technique is a novel, but increasingly accepted approach to data collection for curriculum design for health education. It has been used extensively in the UK (e.g.: Williams, Wetton & Moon 1989; Oakley 1995) and has been adapted elsewhere in Europe (e.g. Zivkovic et al 1994). To date there are no published accounts of its use in developing countries. However, the research team had had some experience of related approaches, including work by Francis on school children's understanding of eye health in Ghana, Zambia and Kenya. The use of drawing tasks to explore health issues is also now being developed within the participatory rapid assessment field (see, for example, Wallerstein 1992; Welbourn 1992). Some preliminary work from the research team, along with methodological guidance, is reported in Shaver, Francis and Barnett (1993). The method engages young people in a relatively open-ended exercise, in which they are invited to draw pictures on some aspect of health, and then label or describe their drawing. Children unable to write are encouraged to whisper what they want to write to the facilitator, who then writes their ideas down verbatim. In this case, the young people were first asked to draw and write about what makes them unhappy and unhealthy. They were then asked to draw and write about AIDS. The AIDS "invitation to draw" was varied across the four countries, according to advice from collaborators on the level of AIDS awareness in the country. In India, young people were asked to draw and write what they knew about AIDS. In Ghana, they were asked to draw and write what they knew about AIDS, especially about how to protect themselves from AIDS. In Uganda, they were asked to draw and write about how to protect themselves from AIDS. In Pakistan, this part of the study was not attempted at all. This is because the condition of access was that children not be questioned directly about their knowledge of AIDS or sexual awareness. In addition, the local researcher felt that it would be improper to introduce the topic of AIDS with children unless they themselves indicated that they had heard about it. Similar problems with gaining permission to conduct anthropological studies with an AIDS component in rural villages were mentioned by our key informant at UNICEF. A more flexible time-frame to conduct this research might have enabled us to explore some of the official concerns and negotiate access to conduct inquiry on these sensitive topics. Responses to the first question shed some light: a) on what young people are taught about health (through school/parents media) b) those things which most worry and upset young people - which may suggest areas for future development in health education in schools c) whether AIDS is seen as an important aspect of the lives of young people (the issue of AIDS was not raised by the researchers in the early stages of the exercise. An initial indication of the level of awareness was the extent to which AIDS/HIV was spontaneously mentioned). Responses to the second questions provided insight into the main messages young people can put forward about AIDS (rather than whether or not they can answer set questions). These spontaneous comments can also highlight areas of misunderstanding. A major advantage to this approach to data collection is that it enables young people to express their ideas on health in their own words and images - rather than imposing an external structure (as is the case in closed-question questionnaires). The use of the visual medium can provide insight into how information and concepts are understood, often capturing facets of children's understanding which they would be unable to express in words. e. Sampling Given the exploratory nature of the study, purposive sampling was used throughout - from selection of countries down to the selection of pupils and teachers within schools. In none of the countries was it possible to do more than canvass the views of a small selection of parents - therefore, the data from parents should be treated with caution. Between six and eight schools were included from each country - with the main sample coming from one major city in each country. Whilst this undoubtedly gives a distorted view in terms of countries as a whole, our concern was mostly focused on what may be possible to achieve in the relatively privileged urban sector. It was not within the scope of this study to extend the study into remote rural areas where the quality of schooling is likely to be poorer. In selecting schools the basic principle used was to ensure variety. Here, collaborating institutions provided guidance on major differences in urban schools - for example: - co-educational single sex - having a particular religious affiliation Within schools, pupils were selected from across grades and classes. Small groups of students were taken from each class. Teachers were asked to make the selection of pupils at this stage, but were asked not to select only their most or least able pupils, but again, to give a variety. The exercise was conducted with all small groups together. Immediately following the draw and write exercise, a subsample of the group was asked to remain with the researchers for a group discussion, which further developed ideas from the draw and write exercise, and explored other aspects of health education and AIDS in school. Discussions with groups of teachers focused mainly on science, physical education, home economics and (if available) health education teachers - i.e.: a selection of teachers which the head teacher felt would be most likely to be involved in teaching related to health. Finally, where possible, parents were interviewed individually or in group discussions. In some countries it was possible to contact parents of children in the study schools. In other cases, adults who had children at school were canvassed (e.g.: in the market place, or though church meetings). Table 3 summaries the samples for each country. f. Data analysis The data from the school studies resulted in over 3,000 sets of open-ended drawings and text from young people, plus the interview and group discussion scripts. Parts of the student data from both India and Pakistan were written in Malayam and Urdu respectively, and required translation. The vast majority of the Ghana and Uganda data were in English, although in some cases colloquial terms needed to be translated. Translation was undertaken by the collaborating centres, and some cross checking subsequently undertaken in Liverpool. The complete data sets were sent to Liverpool for analysis, with the main burden of the analysis being the students' drawings and texts. A coding frame was developed for the student data. This was developed initially from a thematic analysis of around 100 scripts per country, and then subsequently ordered in the light of recommended curricula contents on health and AIDS education proposed by WHO (refs). In addition a simple "YES/NO" analysis was carried out on the "unhappy/unhealthy" scripts coding whether or not HIV/AIDS appeared at this stage. Three people were involved in coding. Coders coded both text and visual material - but only took from visual material any new insights which the text left out. Substantial cross checking of coding was carried out, to ensure the accuracy of the data. The data (now in numerical form) was subsequently entered into SPSSpc for analysis. Simple frequency and cross tabulation data were generated. Following the basic statistical analysis, it was possible to return to the original data to select both "typical" and "exceptional" quotations and images, to bring the text to life, and to enable the young people to speak for themselves. Given the relatively small quantity of data from interviews, discussions and observations, this data was simply typed up verbatim, and then analysed by hand. Table 2: Summary of key informants met in each country \| Type of organisation \| Pakistan \| India \| Uganda \| Ghana \| \|----------------------\|----------\|-------\|--------\|-------\| \| Health \| Collaborating institution: College of Community Medicine, Lahore (includes AIDS screening lab) \| Collaborating institution: Institute of Management in Government Trivandrum India. \| Collaborating institution: Institute of Public Health, University of Makerere, Kampala \| Collaborating institution: Health Research Unit, MoH \| \| \| • Director General Health Services, Punjab\ • Civil Secretariat: Secretary for Health, Punjab.\ • Provincial Co-ordinator, AIDS Programme, Punjab\ • Health Education Development and Resources Unit (HEDRU) project consultant \| • Additional Director of Health Services and AIDS Control Programme Officer.\ • Directorate of Health Services: Additional Director School Health Education; District Immunisation \| • Permanent Secretary Health, Health Education and AIDS Control Programme, MoH.\ • Deputy PHC Co-ordinator formerly IEC co-ordinator for the AIDS Control Programme.\ • Director PHC and Health Education \| • Director, Parasitic Disease Control Programme.\ • Co-ordinator, National AIDS control programme.\ • Health Education Unit, Korle Bu Hospital \| \| Education \| • Municipal education department:\ • Additional Secretary, Education.\ • Curriculum research and development centre, Punjab Education Department. \| • Institute for Education:\ Director;\ Population Education Department Project Officer;\ Co-ordinator School Health Education Programmes of UNICEF Assisted Schemes.\ • Secretary Examination Board.\ • Government Teacher Training College (Principal; Professor Educational Psychology.)\ • District Education Officer (Inspectorate).\ • Government Teacher Training Institute (Headmaster and brief) \| • Commissioner for Education and Acting Permanent Secretary and Acting Permanent Secretary, MOE.\ • Acting Commissioner for the Inspectorate.\ • Secretary Uganda National Examination Board, and Head of Examination Section for Primary Schools.\ • Co-ordinator, School Health Education Programme MOE.\ • Kampala Council Deputy Education Officer for Inspectorate,\ • Institute for Teacher\ • Deputy Minister, Ministry of Education\ • Director General, Ghana Education Service\ • School Health Programme (Ghana Education Service)\ • Director, Teacher Education Division of Ghana Education Service\ • Director, Guidance and Counselling, Ghana Education Service\ • National Co-ordinator, Administrator and Director of Materials Development, Non-Formal Education \| \| Donor agencies \| • UNICEF Islamabad (Project Officer: Water, Sanitation, and Hygiene Education; Project officer (Child Health) & focus person for AIDS, UNICEF; Project officer: Education of Children in Especially Difficult Circumstances; Project Officer, Safe Motherhood; Project Officer, Basic Education,) • UNICEF Lahore (Resident Programme Officer; Women in Development and Children in Difficult \| • British Council • (Library, Kerala) • Project Officer Health UNICEF. (Bombay) \| • Health and education planner ODA (currently in Zambia; formerly working for UNICEF in Uganda) • British Council Acting Director. • UNICEF: Acting Representative; • Training Manager; • AIDS Programme Officer UNICEF. \| • USAID: Chief, Education and Human Resource Development • UNICEF: Child-to-Child programme • ODA education field manager and co-ordinator of the teacher education project • Save the Children Fund: Deputy Director and Medical Advisor, • Acting Director British Council • Second \| Circumstances; Senior Programme Assistant.) • CIDA (Communications Specialist, Centre for Health Communication, National Institute of Health). • Primary Education Reform Project. • British Council Other • Health Education and Adult Literacy Project (HEAL) • President of Pakistan Crescent Youth Organisation, All Pakistan Youth Federation, Commonwealth Youth Forum (Asia). • Health Education and Adult Literacy Project (HEAL) • All India Catholic University Federation (AICUF), Trivandrum Diocese • Caritas: India Regional Officer • AMREF: Director • The AIDS Support Organisation (TASO): • Training manager • Research co-ordinator Child Development Institute. • Principal researcher, school health intervention programme (Imperial College, London) • Scripture Union: Co-ordinator of the Aid for AIDS programme • Director, YMCA, Accra Table 3: Summary of the samples for the four school studies \| \| Pakistan \| India \| Uganda \| Ghana \| Grand total \| \|------------------\|----------\|-------\|--------\|-------\|-------------\| \| Number of schools\| 7 \| 7 \| 7 \| 8 \| 29 \| \| Total number of pupils involved in draw and write exercise \| Boys \| Girls \| \|-----------------------------------------------------------\|------\|-------\| \| Total number of pupils involved in draw and write exercise \| 625 \| 296 (47%) \| \| \| 304 (53%) \| \| \| Grades 6-8: 40% Grades 9-12: 60% \| 685 (52%) \| 623 (48%) \| \| Age range: 10-19yrs \| 391 (57%) \| 292 (43%) \| \| Mean age: 13.5yrs \| Primary: 36% \| Secondary: 64% \| \| Modal age: 13yrs \| Age range: 10-16yrs \| Mean age: 15.8yrs \| \| \| Mean age: 12.7yrs \| Modal age: 13yrs \| \| \| Modal age: 13yrs \| \| \| Grades 6-8: 43% Grades 9-10: 57% \| 478 \| 273 (57%) \| \| Age range: 10-16yrs \| 203 (43%) \| \| \| Mean age: 13yrs \| Primary/JSS: 40% \| \| \| Modal age: 13yrs \| Senior secondary: 60% \| \| \| \| Age range: 10-23yrs \| Mean age: 15.3yrs \| \| \| Mean age: 12.7yrs \| Modal age: 16yrs \| \| \| Modal age: 13yrs \| \| \| \| Modal age: 13yrs \| \| \| \| 88% of total sample aged 10-16yrs \| \| \| Total number of pupils involved in group discussions \| 38 (individual interviews) \| 48 \| 65 \| 60 \| 211 \| \|-----------------------------------------------------\|-----------------------------\|----\|----\|----\|-----\| \| Number of group discussions \| 6 \| 7 \| 8 (+ 22 small group discussions with students from two schools in Eastern region of Ghana =110 students in all) \| 21 \| \| Total number of teachers in group discussions \| 52 (individual interviews) \| 22 \| 49 \| 30 \| 153 \| \|------------------------------------------------\|-----------------------------\|----\|----\|----\|-----\| \| \| 6 groups \| 5 groups \| 6 groups \| 17 groups \| \| Total number of parents (individually and in groups) \| 49 (individual interviews) \| 33 (in six groups) \| 0 \| 48 (two groups of 10, plus 28 interviews) \| 130 \| Findings Summary tables of the four in-depth studies The following pages summarise the main findings from the four country case studies, enabling the reader to compare current policy and practice on health and AIDS education in these different settings. The first matrix provides an overview of health education. The second matrix draws together the specific findings related to AIDS education. To date, evidence from textbooks, teachers, parents and young people suggests that where AIDS education is included in school health education, it focuses only on the basic information of the nature of the disease, its transmission, and strategies for prevention. There is no evidence of AIDS education focused on the additional recommended objectives of skills development for delaying onset of sexual activity, or for establishing "safe sex" practices, and only limited evidence from Uganda of AIDS education targeted at developing more positive and supportive attitudes towards people with AIDS. Health education: general context \| Population \| PAKISTAN \| INDIA \| UGANDA \| GHANA \| \|------------\|----------\|-------\|--------\|-------\| \| 124.7 million \| 844 million \| 17.6 million \| 15.55 million \| Core health education provision: - Ministry of Health: IEC (Information, Education and Communication) centre within the MoH at Provincial level. Primarily involved in production of materials for mass media campaigns. - Minimal school health service in place, but not very active; Central IEC (Information, Education and Communication) facilities - Ministry of Education: no specific focus for - MoH: Technical Co-ordination and Research Division responsible for health education - working through a central resource centre in Accra. Also school health service run by Health Education - Health service (does not appear to be operational), - Ministry of Education: no individual or group with responsibility for liaising with the health sector, or for guiding/developing health education - No structures or staff in place, either in schools or within the health sector, to support health education in schools at any level. - Limited interest from UNICEF in school health education (focused mainly on basic resource for water supply and sanitation). - Some examples of innovative health education work through NGOs (e.g.: Health Education and Adult Literacy, Lahore), - Health education within the Ministry at state level, - Some coordination between health and education for curriculum development. - District level committees to plan school health services, which could be strengthened and focused also on health education - UNICEF has expressed interest in strengthening the school health education programme by supporting the Directorate of Health Services and the Institute of Education in developments (as yet still at a planning stage) - Assistants, and has plans to train further assistants, so there is one per sub-county (760 in all). A key task for these staff is to train teachers in health education. - HEN is coordinated through a National Health Education Steering Committee. Also school health service run by MCH division (not fully operational), - Ministry of Education and Sport: Responsible for the School Health Education Programme (SHEP), with support from the Inter-Ministerial Advisory Panel (IMAP), involving MoH, MoAgric., - The MCH/FP wing. - MoE: School Health Programme within the Ghana Education Service, Recently established, No staff with training in health education. - Steering committee in place, but little activity on the ground as yet, - No staff at regional or district level in either health or education with special responsibility for or training in health education. Only one other health education resource centre, in Kumasi, operating within the Metropolitan Authority. - Some donor interest (UNICEF and ODA) in developing Child-to-Child in schools, and in testing a deworming and MoWomen in Development, MoLocal Gov. and donor/NGO reps. - Considerable donor (UNICEF, SIDA, CIDA, USAID and World Bank) and NGO involvement in health education - supporting Child-to-Child (implemented by the Institute of Teacher Education, Kyambogo); diploma in health education; book scheme for SHEP; other SHEP activities; major focus on HIV/AIDS micronutrient supplementation programme in schools. ### Health needs assessment related to young people - No large scale work apparent at any level to address the health needs or future health education of school students. - UNICEF report on Primary Education Reform in North West Frontier Province highlighted diarrhoeal disease, iodine deficiency disorders, eye and hearing problems and malaria. - Upper respiratory tract infection and diarrhoea indicated as problems for young people in Lahore (anecdotal evidence). ### Health education in schools: curriculum activities \| PAKISTAN \| INDIA \| UGANDA \| GHANA \| \|----------\|-------\|--------\|-------\| \| CONTENT AND METHODS \| \| \| \| \| Health education in Primary Schools \| Class I-V: Health education is covered within the "Physical and health education" curriculum. However, this is non-examined, and hence more apparent in theory than practice. Methods: didactic. \| • Health education integrated in health and physical education; part also in biology. 7 subjects taught.\ • Health education is examined as part of the biology and health science exam. Emphasis is on theory.\ • Teaching methods are didactic despite suggested interactive learning methods in syllabus. \| • Health education integrated and examined into basic science curriculum; 7 subjects taught\ • Health education is examined in the primary leaver examinations. Positive in that it receives time; problematic in its emphasis on exams rather than life skill training.\ • Teaching methods are generally didactic and teacher centred despite input on different methods in teacher training colleges. \| P1-P6 (6-11yrs) 9 subjects taught. Health education "integrated" into various subjects, especially Life Skills, but also touched on in Agriculture, Science, Social Studies, Cultural Studies. Methods: syllabus recommends interactive teaching, with practical elements. In practice, this is the exception rather than the rule. \| \| Health education in Junior Secondary Schools \| Not applicable \| • Similar to above \| • A special syllabus for health education was developed but not yet implemented. Teachers question if space will be available in the curriculum. \| JSS 1-3 (12-14yrs). Curriculum similar to primary. Most substantial "health input" can be seen in JSS Life Skills textbook 3, chapter 9. \| \| Health education in Secondary Schools \| As at primary level, there is "Physical and Health education". Where it is scheduled, it is basically PE. \| • Health education integrated in biology and population education. 9 subjects in biology and 4 in population education. \| • Same as for secondary junior \| SS 1-3. 7 core subjects plus 5 areas of specialisation. Health again covered in the "core", especially Life Skills, and within the vocational specialisation, Management for Living, \| \| Examples of available innovative health education materials and approaches \| HEAL (Health Education Adult Literacy) project has developed a participative materials production process. Ideal for small scale development projects - and may provide fruitful starting point for larger scale curriculum \| • Slides and photographs used to illustrate different diseases. \| • Special school health kits for teaching in primary schools on AIDS, water and sanitation, diarrhoeal disease and immunisation were developed and are used by teachers. • Syllabi and textbooks were evident in schools visited \| Key textbooks and syllabi available in all the schools visited (though this may not reflect practice in rural areas). No further support material evident. \| development. in Kampala but might not be as well distributed in rural areas. \| TEACHER PREPARATION \| \|----------------------\| \| Health education in teacher training: base and in-service provision. \| \| • No evidence of health education preparation during teacher training. As with the school curriculum, health education is seen as synonymous with physical education. \| \| • No evidence of in-service training focused on health education \| \| • Included in curriculum for biology and science. \| \| • Apparently no orientation to health education takes place as this is said to be done by health personnel. \| \| • 1000 teachers trained in 2 day training programme initiated by UNICEF. \| \| • HEAL also provides some orientation for teachers. \| \| • Training of teachers in health education was carried out through in service training until 1992. \| \| • Health education will become a special subject area. The syllabus is nearing completion and 50 tutors of teacher training colleges are trained. \| \| • While Life Skills is a core subject throughout primary, junior and secondary education, and includes a reasonable health element, it is not a compulsory part of teacher education. Hence teachers may have little or no preparation for teaching health related issues. \| \| • Limited evidence of any teacher training encouraging teachers to use practical/interactive teaching methods in class. \| \| • No evidence of in-service training focused on health education. \| \| SUPPORTIVE ENVIRONMENT \| \| Additional support for health education within the school context \| Action plan developed to implement health clubs, Implementation in starting phase. \| Innovative activities sponsored by a range of organisations especially on HIV/AIDS. \| School health service 1992 indicates "coverage" of 25% of schools. Included 3,464 health talks". \| \| --- \| --- \| --- \| --- \| \| • Non-operational school health service, which is perceived by teachers, parents and health officials as "medical care". \| • Population education movement organises competitions for students (writing essays, painting, public speaking, quizzes); has implemented a 'village adoption' scheme. \| • Not so evident are activities related to other subject areas except the Child-to-Child extra curricular activities. \| • Some evidence of certification of food vendors on school compounds \| \| • UNICEF studies from North West Frontier Province indicate extremely poor hygiene standards in schools, with minimal provision of basic water and sanitation services, \| • Health checks and immunisation planned for all schools once a year. Implementation is irregular. \| • Health personnel do provide some input in the schools both through the provision of immunisation and yearly health check services, and through teaching specific health issues in schools. However, services are irregular. \| • Ad hoc school health clubs can be found, but no general provision \| \| • No further evidence is available. \| • Schools in Trivandrum have basic water and sanitation facilities. Unable to comment more broadly. \| • School environments differ substantially in terms of sanitation and water, Some school \| • Some local NGO work (primarily church related) on moral education, using schools as their venue. \| \| \| \| \| • Pilot studies in progress testing specific school health interventions on deworming and micronutrient supplementation. \| environments in the rural areas are very poor. Health education: issues and opportunities \| Issues/concerns highlighted by the young people \| PAKISTAN \| INDIA \| UGANDA \| GHANA \| \|------------------------------------------------\|----------\|-------\|--------\|-------\| \| (only issues mentioned by 20%+ included) \| n=625 \| n=1341\| n=688 \| n=478 \| \| Dirty environment (including general unhygienic surroundings, problems with refuse/rubbish and contamination of water sources) \| 52% \| 39% \| 50% \| 47% \| \| Flies and mosquitoes \| 44% \| 36% \| 49% \| 45% \| \| Food hygiene \| 33% \| 34% \| 29% \| 45% \| \| Environmental hygiene \| 31% \| 26% \| 26% \| 34% \| \| Pollution (traffic/industrial) \| 31% \| 25% \| 25% \| 25% \| \| Problems with parents \| 36% \| 34% \| 29% \| 38% \| \| Problems at school \| 29% \| 26% \| 49% \| 34% \| \| Personal worries \| 25% \| 25% \| 49% \| 34% \| \| Environmental hygiene \| 25% \| 25% \| 49% \| 34% \| \| Pollution \| 25% \| 25% \| 49% \| 34% \| \| Uncovered food, contaminated drinking water and unwashed food \| 50% \| 50% \| 50% \| 50% \| \| Broken latrines, dirty water sources and dirty pit latrines \| 49% \| 49% \| 49% \| 49% \| \| Relationship with parents \| 49% \| 49% \| 49% \| 49% \| \| Relationship with friends \| 38% \| 38% \| 38% \| 38% \| \| Local environmental hygiene \| 36% \| 36% \| 36% \| 36% \| \| Specific diseases including AIDS \| 23.5% \| 23.5% \| 23.5% \| 23.5% \| \| Not enough food and unbalanced diet \| 30% \| 30% \| 30% \| 30% \| \| Vectors \| 30% \| 30% \| 30% \| 30% \| \| Fear of failure in school and \| 24% \| 24% \| 24% \| 24% \| \| Social/political concerns \| 28% \| 28% \| 28% \| 28% \| \| Personal hygiene \| 30% \| 30% \| 30% \| 30% \| \| "sick" \| 30% \| 30% \| 30% \| 30% \| \| Problems at school \| 31% \| 31% \| 31% \| 31% \| \| Being "sick" \| 30% \| 30% \| 30% \| 30% \| \| Personal hygiene \| 28% \| 28% \| 28% \| 28% \| \| OPPORTUNITIES FOR DEVELOPMENT \| None (nothing to evaluate) \| • No systematic baseline on school aged children in Kerala.\ • No evidence of evaluation of health education programmes carried out. \| • Evaluation of SHEP and Child-to-Child is carried out and acted on: (1991 internal and 1993 external review of SHEP) Action taken includes: teacher training syllabus developed; material development now involves stakeholders; plans to decentralise material distribution, monitoring and evaluation. \| • None yet undertaken on the general health education provision. Study of family life education in Kumasi schools indicated limited implementation, constrained by resources, and by parental and teacher resistance - with the commonly held view that "sex education increases promiscuity". \| \| Teacher and parent support for developments in health education \| \|---------------------------------------------------------------\| \| • No suggestion from teachers of need to develop on current (minimal) provision, Teachers also mention several constraints-lack of training, resources, syllabus, or time within current overcrowded curriculum. \| \| • Parents reflect these views - simply indicating that hygiene education is important. Only one out of 49 mentioned sex education, and stressed that the religious context should be considered at all times. \| \| • Teachers support a more practical approach to teaching HE. They also point out constraints; pressure to teach exam issues, lack of resources. \| \| • There is a general feeling that no real change is needed. Some suggested more emphasis on hygiene and 2 mentioned the need for sex education. \| \| • Parents support the subjects currently taught, None mentioned sex or HIV/AIDS education without prompting. \| \| • Teachers support current approaches and suggest changes to make teaching more relevant and practical. \| \| • Hygiene, prevention and treatment of disease are emphasised by teachers. \| \| • AIDS is seen as important and is clearly supported by teachers. Many feel that sex education and relationships should be part of the curriculum. \| \| • Teachers stress the need "to practise what they teach", i.e. smoking; for schools to create healthy environments; and for parents and teachers to support healthy activities. \| \| • Current health education teaching considered to be sufficient. Teachers stress the importance of hygiene education. Teachers express embarrassment and some reluctance about teaching sex education - but agree that it should be in the curriculum. \| \| • Parents support the importance of hygiene education - but again suggest little further, A small number suggested the importance of sex education (none seemed opposed to it), Several, when probed on specific diseases, felt AIDS should be addressed. \| \| Promising options for development \| • Essentially starting from a "clean slate"\ • UNICEF involved in pilot studies on the development of a Lifeskills curriculum, where health is included.\ • Given the "medical model" of school health which pervades, targeted health interventions may have better chance of success than more general preventive health education work. Here, provision of basic water and sanitation facilities is clearly a priority which it will take many years and substantial resources to address.\ • It is unlikely that schools would, on a large scale, be able to adapt or develop the more participative education required for the development of \| • Important to strengthen existing initiatives and develop these further:\ • In particular:\ • Support development of health clubs by providing sufficient resources and support for follow up, monitoring and evaluation.\ • Take up the suggestion to establish coordination committees at national and district level between State health services and education.\ • Support and strengthen school health services. \| Strengthen and build on existing developments rather than attempting further innovation. In particular:\ • Improve coordination at district level\ • Formulate objectives in behavioural terms\ • Improve distribution of materials and supervision at district level.\ • Improve school health services\ • Ensure basic water and sanitation facilities.\ • Develop the initiative for male and female teachers to take the role of counsellors in schools and establish public codes of conduct for teachers and pupils.\ • Strengthen \| Important to build on and develop existing structures and provision further, rather than attempting further innovation. In particular:\ • strengthening the School Health Programme (SHP), and developing its link with the Ministry of Health\ • ensuring that the SHP makes full use of the available needs assessment data for curriculum planning and materials development\ • strengthening the School Health Service, again in close collaboration with the SHP\ • ensuring widespread dissemination through both health and education of the results of the school health intervention initiatives, in order to assess its future potential. \| 'health promoting' skills and attitudes. It may prove more beneficial to explore NGO involvement on specific issues, in targeted areas, for this type of more interactive learning. Child-to-Child and SYFA initiatives through improved coordination at district level. - Implement comprehensive sex education through Child-to-Child, SYFA, TASO and other NGO's. - Continue training of teachers, especially female teachers and emphasise interactive methods. AIDS education: general context \| AIDS cases, and availability of data on sexually transmitted disease and teenage pregnancy \| PAKISTAN \| INDIA \| UGANDA \| GHANA \| \|---\|---\|---\|---\|---\| \| • 24 AIDS cases acknowledged (August 1992). \| • First AIDS cases reported in 1987. Since then 242 cases reported (1992). \| • 24,977 cases officially reported (June 1991) with cases doubling every 8-12 months. Seen as top priority being the leading cause of adult death. AIDS incidence peaks in the 25-29 yr. age group \| • 24 AIDS cases acknowledged (August 1992). \| 11,000 AIDS cases (April 1993). Acknowledged as an important emerging disease; over 40% of cases in people under the age of 30yrs. \| \| • No available data on STDs or teenage pregnancy \| • Kerala has reported 17 AIDS death, 154 sero positive cases and 26 AIDS cases. However under reporting is generally \| • Teenage pregnancy acknowledged \| \| \| \| Extent to which AIDS is perceived as a priority by government and by donors \| • Denial (1993) at central level that there are more than a handful of cases of HIV/AIDS.\ • Some evidence that there is growing acknowledgement that it may be more of a problem than is currently accepted.\ • However, not seen as "priority" - certainly not priority for young people. \| • Acknowledged by MoH as important disease and general IEC activities prioritised.\ • Education sector has started looking at the need to teach about it but not a strong priority as yet. \| • AIDS is number one health priority in Uganda, The MoH see education on HIV/AIDS as an important contribution to the prevention of this disease.\ • The Ministry of Education share this view. This is shown through the integration of teaching on HIV/AIDS in the school curriculum and the special teacher training \| • Acknowledged by MoH as an important emerging disease, but not a major priority as yet.\ • Similar view within the education sector that it is an issue that schools should start to address. \| \| Agencies involved in AIDS education and the structures within which they operate \| Programme for HIV/AIDS education. \| \|---\|---\| \| • The National AIDS Control Programme has so far focused on training for medical specialists, and religious leaders, not on public education. \| \| • UNICEF is working with the government on an AIDS education programme - but this is still at the planning stage. \| \| • Some NGOs (eg: Pakistan Crescent Youth Organisation; Health Education and Adult Literacy project) starting small scale work in AIDS education, \| \| • No co-ordination appears to be in place, and no direct link made with between the health \| \| • National AIDS Control Programme established in 1987. Started initial surveillance and awareness raising IEC activities. \| \| • A start was made to teach health personnel about the disease. \| \| • In education sector no concrete programmes to teach HIV/AIDS exist, however the intention is there. \| \| • Initiative by HEAL India to start teaching in schools. \| \| • The National AIDS Control Programme started in 1987, including IEC mass media campaigns, patient care and counselling. \| \| • In 1991 the Uganda AIDS Commission was established to co-ordinate the efforts of different sectors to cope with the impact of AIDS. \| \| • The school health education programme of the MoE has developed a special programme in collaboration with the MoH and other agencies \| \| • The National AIDS Control Programme was established in 1987. The medium term plan ('89-'93) included IEC, with a mass media campaign targeted at 15-30yr olds. \| \| • The plan included work in schools (mainly one-off sessions by HWs). \| \| • An external review of the NACP highlighted poor co-ordination between MoH and MoE as one of the programme constraints and recommended \| and education sectors. involved in AIDS education. Main activities include AIDS education in the school curriculum, training of trainers and teachers and the development of drama competitions by schools performing plays on AIDS. • Many smaller initiatives involving school children: Examples are the Child-to-Child programmes and the Safeguard Youth From AIDS (SYFA) initiative. the development of a policy on AIDS education in schools. • This co-ordination has not yet been developed. However there is clearly a growing body of evidence to indicate both the need for this co-ordination, and the beginnings of dialogue between the sectors, which now need to be strengthened and formalised (e.g.: linkage between the GES School Health Programme, the NACP, and the MoH School Health Service), \| Evidence of needs assessment related to young people on sexual health, STDs/AIDS \| No data available on STDs, nor on anything to do with the sexual health or sexual activity of young people. \| \|---\|---\| \| \| • No data available on STDs or sexual activity of young people, \| \| \| • HEAL India conducted very small scale study which shows concern and interest of young people around sexual issues. \| \| \| • Baseline study on HIV/AIDS has been conducted but data not available at time of study. \| \| \| • No data available on STD's among young people. \| \| \| • Many studies pertinent to AIDS education needs of young people including KAP studies have been carried out. (See case studies for details.) \| \| \| • A comprehensive review of studies into issues around adolescent sexuality (Barton and Olowo Freers 1992) show marked differences between districts in number of young people who are involved in pre marital sexual experiences (Range 18-61.5% reporting sexual activity) and age of first experience 13.6 - 15.7, with some as early as 10 years of age \| \| \| • Range of studies available on teenage pregnancy, teenage sexuality, AIDS awareness and education for out of school youth, KAP studies on AIDS awareness. (See case studies for details). \| The KAP studies show a high level of knowledge about HIV transmission. In one study 49% of the sexually active girls and 22% of the boys reported forced sexual intercourse. AIDS education in schools \| METHODS AND MATERIALS \| PAKISTAN \| INDIA \| UGANDA \| GHANA \| \|-----------------------\|----------\|-------\|--------\|-------\| \| HIV/AIDS education in the school curriculum \| Brief mention in secondary school science text. \| • Some mentioning of AIDS in reproductive health teaching in secondary schools. \| • Teaching on HIV/AIDS is well integrated in the school curricula and evidence that this is actually taught is everywhere. \| • Limited mention of HIV/AIDS in the JSS Lifeskills textbook 3. Addresses basic information only - not skills for sexual health, or attitudinal work concerning care of people with AIDS. \| \| \| \| \| • Education on HIV/AIDS is integrated in grade 6 and 7 of primary schools as part of the teaching on STD's, In secondary schools it forms part of the teaching on common diseases in the \| • Evidence of one-off "AIDS information" sessions run by health workers (along with other sessions on STDs and \| \| Extra-curricular work related to sexual health \| None apparent \| • None apparent. \| There is a wide range of innovative activities initiated, in particular: • Health workers and specially trained counsellors visit schools on request • SHEP produces a magazine which encourages kids to talk about health issues including AIDS • Drama activities are initiated countrywide by SHEP • Essay competitions were organised • Clubs are being established by a variety of organisations such as SYFA, TASO. • Small scale examples of work with street youth, and of AIDS awareness dramas. \| \| Special materials available for HIV/AIDS education \| • Set of posters from National AIDS Control Programme, focusing on non-sexual forms of transmission of HIV. \| • Wide variety of posters.\ • Newspaper and television coverage by journalists.\ • HEAL India and Red Cross are developing information materials.\ • Materials which explicitly refer to sexual activity are not easily accepted. \| • A wide variety of posters, leaflets and other IEC materials are available.\ • Special AIDS kits for primary schools have been developed to help the teachers teach HIV/AIDS.\ • There is an AIDS pack available for secondary schools,\ • Wide variety of posters, TV, radio input from NACP.\ • Save the Children Fund; Snakes and ladders game\ • Kumasi Health Education Unit: Sorting cards; flash cards \| \| TEACHER PREPARATION \| Teacher preparation for AIDS education \| None \| • Some plans to start training teachers in selected schools in how to teach about AIDS. None implemented yet. \| • How to teach about AIDS is included in the special training of teachers through the SHEP (1 day out of 10)\ • MoH trains health educators who become facilitators in the SHEP training programme for 5 days.\ • Secondary school teachers were given a crash course.\ • AIDS education is being integrated as a special \| • None to date - but acknowledge as something which should be addressed, \| AIDS education: the understanding of young people \| PAKISTAN \| INDIA \| UGANDA \| GHANA \| \|----------\|-------\|--------\|-------\| \| Summary of data from young people, showing issues raised by 20% + of the sample. \| N=625 \| N=1314 \| N=695 \| n=478 \| \| • 2 young people in the sample referred to AIDS as something which makes them unhappy/unhealthy \| • 7 in the sample referred to AIDS when writing about what makes them unhappy and unhealthy, Question: Draw and write about what you have heard about AIDS. Responses: 11% do not know anything about AIDS 38% see AIDS as dreadful killer disease 28% think \| • 194 (28%) refer to AIDS as something that makes them unhappy/unhealthy (before they knew they were to write about AIDS) \| • 8(1.7%) refer to AIDS as something which makes them unhappy/unhealthy (before they knew they were to write about AIDS) \| \| • Questionnaire to 38 young people indicated that the majority had heard of AIDS. However, very few could describe anything about the disease. Only 3 said it is sexually transmitted, four that it is passed through male/male or male/female contact. 5 thought it was transmitted through urine/stools. Note: The draw and write exercise about AIDS was not attempted due to official discouragement of direct discussion \| \| • Secondary school children were much more likely to mention AIDS (40%) than primary school children (8%) \| Question: What do you know about AIDS? Draw write, especially anything you know about how to protect yourself from AIDS. Response: 77% AIDS transmitted sexually/prevented by limiting sexual partners/avoid casual sex/stick to your partner. 50% Using condoms prevents AIDS 36% Ensure sterile techniques are used in hospitals/AIDS spread through use of contaminated \| about AIDS with pupils. The local researcher made some attempt to gather information about children's knowledge of AIDS through a structured questionnaire administered to a limited number of older respondents who had already expressed an awareness of AIDS. AIDS is spread through air, water, touch, spit, urine, vomit and dirt. 27% emphasise the need to ensure that doctors use clean/new needles. 26% refer to AIDS being sexually transmitted. avoiding casual sex, adultery, promiscuity 25% Avoiding people with AIDS (PWA): majority means avoiding sex with PWA; 15 (2%) suggests segregating certain groups e.g., prostitutes, people with AIDS; only 22 (3% of total) suggest avoiding close contact, i.e., sharing food, standing close to people with AIDS. NOTE: a very small number mention misconceptions, eg, 11 suggest that you can protect yourself through diaphragm, pill, coil and tampon. 32% Avoid sharp things (razors/tooth brushes)/AIDS spread by open wounds and cuts 31% Misconceptions (mainly focused on transmission of HIV either through poor hygiene (not washing enough, living in a dirty environment) or through casual contact with people with AIDS (hand shakes, kissing)) ### AIDS education: opportunities for development \| PAKISTAN \| INDIA \| UGANDA \| GHANA \| \|----------\|-------\|--------\|-------\| \| \| \| \| \| \| Evidence of evaluation work on AIDS education \| None \| Nothing to evaluate yet. Formative studies just started. \| • The many KAP studies carried out, some specifically with school children, show a general high awareness of HIV/AIDS with some misconceptions. Preliminary results of the drama competition evaluation showed for example that many pupils think HIV/AIDS is only transmitted by women and also that a person who is happy and fat cannot get AIDS, • Most programmes are evaluated and recommendations are acted upon. • A general outcome is that knowledge levels are high but evidence for change in sexual practices is not there. \| • Evaluations carried out of the NACP mass media campaigns show a general basic awareness of AIDS, but confirm that there are still misconceptions (e.g.: feeling that people are not convinced that they are vulnerable; belief by some that AIDS is curable). • Local study (Kumasi) of family life education in JSS schools indicated that whilst the curriculum is there, there is resistance to implementing it from teachers and parents, plus major resource constraints in schools. \| Teacher and parent support for developments in AIDS education - 35/52 teachers interviewed said they had heard of AIDS, but felt their knowledge was very limited. - 24/49 parents had heard of AIDS (with clear split between literate professionals and others). - Neither group felt AIDS to be an issue. Teachers felt they have neither the knowledge nor the skills to teach about it. - There seems to be a general agreement between teachers and parents that AIDS should be taught in schools. - Concern is expressed that it should start at the appropriate level, e.g. class 10 (13-15yrs) and in accordance with cultural and moral values held in public in Kerala. - Teaching about condoms was seen as problematic. Students themselves had many questions mainly about the spread and origin of the disease, diagnosis and symptoms, possibilities for cure, transmission route and prevention. - Knowledge about HIV/AIDS is well established. More emphasis needs to be placed on life skill teaching, e.g. How to negotiate sexual relationships, how to say no etc. Teachers agree with the need for this kind of teaching although some are cautious about teaching how to use condoms. - Young people agree but still have many questions. Main questions for boys are: How to use condoms properly; advantages and disadvantages of blood testing; AIDS symptoms; Education on dangerous cultural practices; alternative behaviour to sex; how to know blood is safe. - Main questions for girls are: suffering at home under stepmothers; rape by drunken parents; how to - Agreed by both teachers and parents that AIDS should be addressed through schools - with age 12yrs being seen as the time to start teaching "in detail". - Teachers accept that sexual aspects of AIDS must be addressed - but feel they need help on this (and prefer to involve health workers) - Parents express full diversity of views, from some happy for their children to be given explicit and practical detail on (for example) condom usage, through to others who feel that information on how to prevent sexual transmission of HIV should not be addressed until late on in senior secondary school - believing that mentioning this \| Promising options for development \| • Unlikely that AIDS education in schools would be able to go beyond the provision of basic information. Even here, clear resistance to any mention of sexual transmission. • Some possibility to NGOs concerned with youth developing innovative \| • There is a need to address HIV/AIDS with school children and teachers urgently, considering the widespread misconceptions which are held. • Develop teacher training in how to teach about AIDS. • Start developing a programme with help of NGO's such as UNICEF and HEAL India. • Intensify \| • Strengthen and consolidate existing programmes rather than developing new initiatives. • Train more female teachers so that the teaching of HIV/AIDS in same gender groups becomes more feasible. • Train and designate female and male teachers in schools to take a counselling role for girls and boys who are put under pressure or face sexual abuse, \| • There is a need to address a current over emphasis in AIDS education of transmission of HIV through blood (eg: open cuts, shared razors at barbers etc.), and to re-focus on sexual transmission. (This may be an NACP mass media issue.) • Also a need to highlight individual susceptibility to HIV (currently seen as \| \| programmes (eg: All Pakistan Youth Federation). \| formative qualitative research programme to develop appropriate materials and programmes. \| • Follow the example of the model school and establish public rules for code of conduct of teachers and pupils.\ • Support Child-to-Child, SYFA and other NGO's to strengthen and expand extra curricular activities to help pupils to put into practice what they have learned and discuss difficulties they face in protecting themselves. These programmes need to include comprehensive sex education. \| something effecting "other" - not "me").\ • General support for AIDS education from teachers and parents needs to be capitalised on, through in-service training of teachers.\ • It may be worth exploring developing the guidance and counselling service in schools, to address a wider range of personal issues, rather than only school subject choice.\ • As with health education generally, current work (eg: existing textbooks and syllabus) to be supported further, rather than trying to develop new ideas from scratch, \| Case study 1: Pakistan 1.1 General Context Health and Education Pakistan's population is moving rapidly towards 124.8 million, with an annual growth rate of 2.84. Of the four countries in the study, it has the lowest adult literacy rates for both men and women (with 15 million illiterate adults) and, apart from India, the highest student:teacher ratio in schools. Only 50% of children enrol in school and 25% have dropped out by class 2 - resulting in around 75% of children failing to receive basic schooling. Nonetheless, given the population size of 5-17 year old children, this still gives a large school population. Given the poor uptake of education, current donor focus is on primary education, and on improving female access to and uptake of education. There are at least ten major donors involved in primary educational development. As with the other four countries government expenditure on education exceeds that of health - but is still only set at around 2% of government expenditure. The country as a whole has a high under 5 mortality rate (134/1000). Health priorities for young people are seen to be URTI and diarrhoea. Typhoid, nutritional problems and infectious diseases are also a priority. Data on STDs is not available, and neither is information on teenage pregnancy - both of which can be used as important indicators of sexual activity, especially amongst young people. 2 Personal communication with Professor Naeem Ul Hameed, Principal, College of Community Medicine, Lahore. AIDS awareness and education Information on AIDS is hard to find. One informant described Pakistan as still being in the "denial stage" as far as acknowledgement of AIDS is concerned. This view was endorsed in discussions with a wide range of people, and evident from statistics - which showed only 24 reported cases in 1992. Of these, around 48% were described as "foreigners". Those who expressed concern about AIDS mainly referred to the problem of infection from migrant workers and from imported contaminated blood products. A few people expressed the fear that Pakistan is unlikely to escape the pandemic that is "ballooning" elsewhere and that this is a problem waiting to happen. There is evidence that AIDS is on the agenda in both Government plans and the activities of international organisations and NGOs - but has a low profile. In terms of actual implementation, the main Government activities to date have been concentrated on conferences with medical specialists and religious leaders, establishing an AIDS surveillance system, developing plans of action, and some materials production - 4 posters and some handbills have been printed (though none was seen by the researcher on public display anywhere). Health and AIDS education: a clean slate? Health education within Pakistan generally is undeveloped - and is virtually non-existent within the public education sector. In the Ministry of Health it comes under the heading of Information, Education and Communication (IEC) most often taking the form of mass media campaigns (e.g.: in support of diarrhoeal disease control programmes and immunisation campaigns). Available plans for development give no indication of emergent policy in this area, nor any reference to more systematic work with schools. The main focus is on developing personnel and undertaking basic research. There is no mention in the health education plans for 1993-1999 on anything to do with AIDS or sexual health. Quite who might take a catalytic initiative from the government side is unclear. School health services are minimal. The National AIDS control programme has yet to move forward on EC. UNICEF does express interest in school health and health education - and notable successes in public health education stem from UNICEF supported work around immunisation and ORS. However, for sustainability, the initiative really needs to come from within. There are a wide variety of non-government groups concerned with health and education and health education, with a focus on young people - but these again have difficulty in providing an adequate nucleus for nation-wide or even province-wide development. As a consequence of the lack of any clear mandate or guidance from central or provincial level, what activity there is appears fragmented, and under-developed. Another limitation expressed by curriculum developers was that changes to the school curriculum tend to be slow and lengthy. Health education needs assessment for curriculum development There is no evidence of systematic work by or for government to explore children's health needs, the current health situation in schools, or teaching content, methods or resources relevant to health. The only relevant material found during this study was some UNICEF reports(^3) on health education within the Primary Education Curriculum Reform project in North West Frontier Province - which noted the poor health environment of schools, and advocated the development of integrated health education work across the curriculum. This work highlighted diarrhoeal disease, iodine deficiency disorders, eye problems, hearing disability and malaria as health issues most relevant to school children. (^3) UNICEF Reports by Juliette von Siebold (1990) & Nicola Harford (December 1990). ### 1.2 Health and AIDS education: Curriculum activities #### Curriculum content "Health Education" content is not a specific subject in the school curriculum of either private or state schools. In theory there is a subject in the primary schools called "Physical and Health Education" and health information forms part of the science curriculum in high schools. In secondary schools, the science curriculum includes some health education. Even though there is some timetable space for teaching about health, this is very limited. The majority of teaching is theoretical. Introduction of more practical teaching methods is seen to be impractical - teachers are low paid, relatively low status, and have little support. Table 4 gives brief details of the primary health education syllabus(^4). (^4) Extract from Draft Curriculum of Health and Physical Education in Pakistan for Classes 1 - V. National Bureau of curriculum and textbooks, Ministry of Education and Provincial Coordination. Most schools are likely to have one copy of this which is used as a reference. #### Table 4: Primary Health Education syllabus \| Class \| Personal Hygiene \| \|--------\|------------------------------------------------------\| \| Class I\| Elimination habits \| \| \| Food and nutrition \| \| Class II\| Environmental sanitation \| \| Class III\| Accident prevention \| \| \| Communicable diseases - control of \| \| Class IV\| Growth and Health \| \| Class V \| Human physiology \| There is apparently brief mention of AIDS in a secondary science textbook - but it was not possible to get Evidence from teachers, parents and pupils suggests that even this minimum input is often missing. Around half the teachers interviewed echoed the sentiment expressed by this teacher: "No health education is given in this school as a subject because we have no teachers, no tendency to learn about health, no syllabus." Parents are equally ambivalent - with half saying that either health is not taught, or they have no idea whether it is taught or not. Clearly health is by no means high on the agenda in schools, although there may be specific schools where it is given some attention. Of the teachers who said that health education was taught in their schools, most reported physical exercise and hygiene/cleanliness as the most common aspects covered. Hygiene and cleanliness education is reported usually in conjunction with inspections: "We also check the bodies of children; they should be clean, socks, shoes, ears, eyes, hair." In some cases it appeared as if this emphasis on cleanliness had negative effects leading some teachers to conclude that such "health education" should not be stressed because: "if we stress health education too much, the children don't come back to school. They are told to wear proper shoes and a sweater in the winter. The parents don't take care. Fear and financial problems. If we are strict with health it increases the drop out rate. We discuss when the child is not wearing a proper dress. They say we will go to the city and buy medicines. Parents say they do not have the time." A few teachers mention including food and nutrition education. This is centred mostly around the need to warn children of the dangers of buying food from street hawkers. "We ask people to take proper food. When hawkers come we ask them to go away." (Focus Group Discussion) There is minimal reference to disease prevention or health promotion, and a prevailing view that "health" education should actually be "medical services". Teachers seemed reluctant to deal with sexuality or AIDS at all, believing that this sort of teaching should come from doctors. Teacher preparation There are a range of public and private teacher training institutes in Lahore. Notable in the public sector are three Teacher Training Colleges for men, The Government Education College for Girls, a college for science teachers, a specialist Health and Physical Education college and a pre-service training institution. The Education Department of some Teacher Training Colleges also conduct refresher courses. However, the emphasis in training seems to be more on physical education and very little, if any on health awareness. Some anecdotal confirmation of this came from talking to primary school teachers who had left college 3 - 6 years before - none could remember having been taught anything about health. Another secondary school teacher who had graduated in physical education considered the physical education activities to be synonymous with health education. Supportive Environment School health services Many government officials, head teachers, class teachers and health personnel, when asked about health education in the schools, associated this with a school health service. There is a schools health programme, with over 1,000 doctors employed to visit schools for a few hours a day. How operational this programme is was unclear - the general view was that whilst school health services was once seen as a priority, it is no longer so, and in most schools is not evident. Nevertheless the conceptual link between health education and medical services seemed to be widespread. School health environment UNICEF has started to look at the question of the health environment of primary schools though this work has not been undertaken in the Punjab. The general findings indicated low levels of hygiene - with toilets in only 4% of schools, lack of adequate clean water, and no attention to food provision. 5 Report on Health Education within the Primary education Curriculum reform project, NWFP Teacher training activities, Nicola Harford, December 1990. A second report noted that water in the schools is collected in large concrete tubs in the school grounds and is used for washing hands, cleaning takkiboards and drinking. The sanitary conditions are hazardous. Girls and teachers are not at liberty to leave the school compound and go to the fields so an area behind the classroom has been delegated for this purpose. There is no provision for cleaning. There is insufficient and ventilation. While some of the public sector schools visited as part of the study in the Lahore area had excellent and well maintained facilities, these seemed to be generally described as the exceptions rather than the norm. 6 Report on Health Education within the Primary Education curriculum Reform Project. NWFP. School Curriculum Activities. Juliette von Seibold 1990 - UNICEF REPORT. There is some evidence that innovation is possible at the local level, especially in private schools, but also in state schools. At the most basic level, health workers may be invited in to talk about a particular health topic. One school visited had a health club. Another noted that in the past she had invited a lady doctor to lecture to the girls and speak to them individually. She felt this was important and useful - especially to talk to the girls about their menstrual periods. However, these events are likely to be the exception rather than the rule, and rely on individual interest and motivation. School-community relationships There was little evidence of active involvement of parents in school matters. This was confirmed through the difficulty of organising parent discussion groups. The few informants who mentioned parents suggested they were more likely to act as a constraint to innovation, rather than as support for it. ### 1.3 The concerns of young people #### 1.3.1 General Health Concerns Table 5: Children's health concerns: Pakistan (Lahore) \| issue \| frequency \| percentage (total n=625) \| \|--------------------\|-----------\|--------------------------\| \| dirty surroundings \| 232 \| 37.1% \| \| flies \| 214 \| 34.2% \| \| mosquitoes \| 198 \| 31.7% \| \| traffic \| 130 \| 20.8% \| \| rotten food \| 114 \| 18.2% \| \| dirty food \| 97 \| 15.5% \| \| rubbish \| 84 \| 13.4% \| \| smoking \| 37 \| 11.7% \| \| industry \| 69 \| 11% \| The strongest message coming from the young peoples' drawings and writing is a concern about dirt - dirty surroundings, dirty people, dirty food, dirty air, dirty water. Associated with these are vectors (mainly flies and mosquitoes). These concerns are simply, but quite graphically drawn and described by the children - from across the age groups, and with minimal differences between boys and girls. Selected examples provided in the following pages illustrate the strength with which some of these concerns are expressed. Dirty surroundings Filth and stench things make us ill. We become unhappy due to filth and illness I think children are very sensitive. They think about their surroundings Positive images of health and happiness also emphasise the importance of beautiful surroundings - parks, flowers, trees etc. Dirty people A human being himself is responsible for his sickness. If we take dirty things we will fall ill. If we don't keep our teeth clean a bad odour would come from our mouths and we will fall ill. Nails and body cleanliness is essential. If we take food with dirty hands we will fall ill. By dirty atmosphere and lack of cleanliness in our homes could lead to sickness. Dirty water Standing dirty water in front of house which gives rise to mosquitoes Dirty food By eating dirty things the germs enter into our body which make us ill Some students also show a little understanding about the relationship between diet and health, and the need for a balanced diet, and also the relationship between sweets and tooth decay. The visual images often include sweets and chocolate. On the issue of diet a sex difference is apparent, with girls being rather more likely to talk about dietary issues than boys. Figure 3 Things that make children "unhappy and unhealthy" - things related to dirt (Pakistan) Dirty air I think that the first thing that makes us sick is "POLLUTION"...Good food and good dress is not so necessary for us as good air because we inhale in air. Our lives depends on fresh air The bad environment, sounds of vehicles make us unhappy and sick...Pollution also makes us ill and weak. The smoke which comes out of the cars makes us sick. It is very harmful to our lungs Figure 4 Children's concern about pollution (Pakistan) Problems with parents and personal relationships Concerns to do with personal relationships do feature, but to a quite limited degree. Girls are more likely to express concerns about problems with parents (10% of girls vs. 3% of boys). Older children are more likely to express these problems than younger ones (under 14 years: 5%, 14 years+: 10%). These worries are articulated as: "discouragement of the child"; "Parents harsh behaviour"; "rebuke from parents and teachers"; the "environments of the house", particularly quarrels and lack of-co-operation in the home which can lead to people becoming "unhappy and unhealthy"; "burden of studies" and "differences with friends" Figure 5 Children's concerns about parents, friendships and schools (Pakistan) 1.3.2 Children's understanding of HIV/AIDS Out of the total sample of children, only one referred to sex and one to AIDS (both were girls): [people who] don't wash their hands before eating and they don't enjoy sex with those who are neat and clean and after sexual intercourse they don't take bath which is not a good thing" (girl) Due to diseases like AIDS, measles and whooping cough we remain unhappy (girl) Thirty eight students also completed an open ended questionnaire on the subject of AIDS. Of these, the majority said they had heard of the disease - saying that it is a dangerous disease, is infectious and is spread by a virus or germ. Out of the 38, only three mentioned that it is sexually transmitted, and four others that it is passed from man to man or by male-female contact. Five thought it is transmitted through urine/stools. Four described the main symptom as being having an enlarged belly. From this extremely limited evidence it is none the less evident that some information is reaching these Lahore school children about AIDS. One teacher mentioned that it is in the general science curriculum for ages 15-16 where they are simply told that it is caused by a virus. Three pupils confirmed that AIDS does get a mention in a school text book, others said they had heard about it from the newspapers and TV. Out of a total of 52 teachers interviewed, only 35 said they had heard about AIDS, and even then commented: "Even teachers have heard little about AIDS; They don't know much about it." Parents also showed little evidence of knowing about AIDS. When asked to mention names of serious diseases, TB was mentioned most often, followed by diarrhea. Neither AIDS nor any other STD was referred to. Whilst approximately half of a sample of 49 said they had heard of AIDS, there was a clear split in terms of education with literate professionals saying they had heard of the disease and illiterate non-professionals saying they had not. 1.4 Opportunities for development Research and evaluation Given the above, it is not surprising that we were unable to find any studies - either baseline work or formative or summative evaluations related to school health education. One curriculum evaluation was mentioned, concerning the health and physical education curriculum, which again confirmed the lack of sanitation facilities in schools. Clearly more research is needed both to explore children's perceptions of AIDS and to understand the strong opposition to sex education from various levels. From the experience of this research we recommend that future researchers attempting work in this field should expect to devote time to official negotiation in gaining access. Views of teachers and parents on how health and AIDS education should develop When teachers were asked what they felt children should be taught about health, the main response was that "they should know about health generally" i.e.: they should know about pollution, about balanced diet, about living "neat and clean" and about the advantages of exercise. Only one teacher mentioned that they should be taught about sex, also commenting that this must be "according to our religion". When asked directly if children should be taught about AIDS, teachers tended to speak in euphemistic terms such as "it can be taught but you must not give strong details" "AIDS can be introduced but with limits". Parents reflected these views. 19 of the 49 said children should be taught about cleanliness. Again, the importance of maintaining the religious context of any teaching on health was mentioned. Constraints to further developments in health teaching were seen to be related to lack of syllabus, lack of trained staff, lack of teaching resources, and lack of time available to take on a "new" area of teaching. Some teachers acknowledged that even the current physical and health education syllabus does not get properly covered, but is squeezed out to make time for "more important" subjects. Teachers did not have much to say about teaching related to AIDS. Those who did comment expressed their own lack of knowledge, and therefore of the necessity to provide specialist support: "I have very little knowledge and little knowledge is dangerous. So we must be provided some specialists if you want that we may get sound knowledge about AIDS and what measures we take for its prevention." Teachers feel that parents do not present a major constraint to developing new teaching ideas. Several teachers felt that parents basically are not interested: "In this area parents are not interested in education. They are interested in certification" Others felt that parents will be happy with whatever the schools provide. Of the parents, those from professional backgrounds (who were the ones who said they actually had heard of AIDS) raised no objections to having it taught in school - and some even suggested it could be mentioned in primary school. In the group discussion with women from an adult literacy class, one woman expressed the following view: We should tell unmarried girls also. Because there are some girls who have sexual relations before they are married. So they should also inform the unmarried girls because there are some "Naughty girls amongst them" (translation) Pupil's health concerns Much of the "draw and write" data gives a strong message from the young people of Lahore of concern about the health of the environment in which they live. It presents a strong case for improvements in sanitation, garbage disposal and tackling pollution issues - all of which go far beyond the bounds of individually oriented health education. Possibly the challenge for health education here is twofold: a) how to harness these feelings of young people to encourage them to work towards collective action on such issues b) how to also help young people recognise what they as individuals can do to protect themselves from an unhealthy environment. Case study 2: India 2.1 General context 2.2 Health and AIDS Education: curriculum activities 2.3 The concerns of young people 2.4 Opportunities for development The India study was conducted in June 1993 in conjunction with the Institute for Management in Government in Trivandrum. The study focuses on Trivandrum, Kerala. However some more general information was also collected. 2.1 General context Health and AIDS situation in India India has an estimated population of around 840 million (1991). From a 1981 census, 39.6% of the population are under 15yrs. Important diseases include malaria, URTI, measles, gastrointestinal tract infections, non-communicable diseases and accidents. Important causes of death are infectious and parasitic diseases, diseases of the circulatory system, accidents, poisoning and violence, diseases of the respiratory and digestive systems. The first case of AIDS in India was reported in May 1986. Since then, 242 cases have been recorded. However, projections estimate a current seropositivity of 500,000 to 2.5 million, and that by the year 2,000 there may be as many as 5 million HIV positive and 1 million AIDS cases in India. Currently, Kerala (where the current study was undertaken) has detailed 17 AIDS deaths, 154 seropositive HIV cases and 26 cases of full blown AIDS. Kerala is seen as being particularly vulnerable due to its large number of economic migrants. 7 Information provided by Dr Modhavar Nair 1993. Health education in Kerala: an overview Health education in India is more commonly known as IEC (Information, Education and Communication), with central services in the health sector. In Kerala there is a school health unit, focused on basic health services for schools. This does not yet appear to be operational. The general picture of health education in schools in Kerala is that people at senior levels, in both health and education, can describe what in theory should be happening. This includes a health education curriculum, and school health clubs. To date this is very much at a planning stage and does not yet appear to be high on the agendas of either the education or health departments. However, there is a small nucleus of committed individuals, supported by UNICEF and by a local NGO, HEAL(^8). There is also some evidence of co-ordination between health and education on curriculum planning, with experts from the Directorate of Health Services included in the teams which formulate syllabi and write textbooks for health education, science and technology and health science courses. (^8) HEAL: Health Education and Adult Literacy: an NGO. Again in theory, there is some co-ordination between health and education at district level, with committees meeting annually to talk about the school health programme. This focuses mainly on school health checks, but could potentially be used to co-ordinate health education activity. UNICEF is clearly influencing the strengthening of health education activities and has a key role to play in furthering school health education in collaboration with the Directorate of Health Services and the Institute of Education. Links between the AIDS control programme and education The National AIDS Control Programme in India was established in 1987. To date, it has focused mainly on training of clinicians, establishing AIDS units for symptomatic treatment of people with AIDS and setting up HIV testing centres. The health education, or IEC, developments have been co-ordinated through the Central Health Education Bureau, with some mass media advertising (mainly posters). As yet, there are no clearly stated plans to develop AIDS education through schools, other than passing reference to the need to develop curricula. There is some interest from UNICEF to develop AIDS education more broadly, and also from two local NGOs, HEAL and the Red Cross. Health and AIDS education needs assessment for curriculum development There appears to be minimal data on the general health problems of school-aged children available in Kerala and no plans for any kind of school health survey. The Directorate of Health Services have undertaken a baseline study on HIV/AIDS - but results of this study were not available at the time of this study. The one source of information which does provide some insight into the health education needs of young people is a small study undertaken by HEAL. This study explored what Class 10 children (10-15 year old children) know about sex. From a sample of 100 children (half boys, half girls): 75 had heard about sex from magazines, films and friends. 15 from friends only and 2 had heard from parents. Most said they get some in biology classes but details come from somewhere else. During the study we gathered some anecdotal evidence of sexual activity amongst young people (from around the age of 14 years). Others felt that this is the exception rather than the rule, due to cultural factors. There is a notable lack of available data on STD's. 2.2 Health and AIDS Education: curriculum activities Health education curriculum and textbook content In 1983 a curriculum for health education was implemented in all primary, middle, high and higher education schools. This was developed by the Ministry of Education in collaboration with health service staff. Health is integrated in the science curriculum in Biology and in health education in the Health and Physical Education curriculum. A document summarising health education in the biology and the health and PE syllabi notes the following: "Health and Physical Education are recommended as an integral part of the school curriculum. At the lower primary stage "activities to develop proper health and hygienic habits should be considered" (page vii). At the upper primary level: Under health education, activities and awareness programmes related to sanitation healthy living, safety measures, nutrition, hazards of adulteration, first aid etc. are to be organised 9 Summary of Health and health education aspects in biology and health and physical education syllabus for high school classes, standard 8 to 10, Revised version volume II, 1992. In the high school curriculum topics on health and health education are included in classes 8, 9, 10. In summary subject areas in health education taught in classes 8,9 and 10 (High school) are: Integrated in the biology curriculum: Nutrition, food and hygiene, first aid, addictive drugs and dangers of drug use, infectious and communicable diseases including prevention and causes, use of health services, importance of exercise, consumer education and home nursing. Population education including the reproductive system and contraceptives is an important part of the social science and life sciences curriculum. Subject areas integrated in population education: - Population dynamics, health nutrition and population growth - Reproductive system - Family life and population growth Health education is examined as part of the biology and health science exam at the end of class 10. It was decided to examine it in order that it "be taken seriously". However, a corollary of this is that anything in the syllabus which is not examined tends to be dropped or given very limited coverage. Health Education Practice Teachers and parents perceptions of what is taught on health education There was general agreement among teachers that health is taught within biology and science for standard 8-10. This includes teaching on specific diseases (e.g.: kidney problems, hypertension, heart disease, injuries, problems due to smoking, TB, cholera, dysentery, leprosy). Some teachers also mention that this includes information on disease prevention (e.g.: malaria control). One school referred to the role of chemistry teachers in dealing with topics such as pollution (water, dirt, sound). It appears that there is one session taught on reproduction. Discussions with parents revealed a lack of awareness about what children are learning about health from school. Views ranged from "a lot" to "there doesn't seem to be anything taught". One group thought that hygiene teaching was included. Some mentioned specific diseases they think the children are taught about, such as: viral diseases, diarrhoea, typhoid, TB, measles, diphtheria, polio, vitamin deficiencies, beri beri, cold, cough, pneumonia, indigestion, malaria, filariasis, skin disease, malnutrition, and ulcers. In group discussions pupils were asked who helps them to stay healthy. All groups mentioned teachers who teach about health in school, and several referred to textbooks which include health topics. Parents were also mentioned and a couple of groups spoke of health workers. AIDS education AIDS does not feature in the current curriculum. Contraception and reproductive systems are included in population education. Contraceptives are mentioned but not explained. Sex education is kept very theoretical. "It is not done to speak about sex in our society in school classes." Neither students, teachers nor parents currently see school as a major source of information about HIV/AIDS although in group discussions with students, two groups said they had been taught about it in school. Those children who mentioned education in the draw and write exercise refer mainly to newspapers, TV and radio. Student group discussions also said they had heard about AIDS from "common talk" with friends or in the community. General Teaching methods The observations and discussions with students and teachers suggest that most teaching is didactic despite the recommendations in the syllabus for more interactive methods. Extracts of the syllabus recommend: Table 6: Health education activities in schools \| Suggested learning activities for food hygiene include: \| \|--------------------------------------------------------\| \| Making charts listing and demonstrating various aspects of balanced diets. \| \| Using slides and photographs to show kwashiorkor and marasmus. \| \| Discussion on various requirements for nutrient intake and calories. \| \| Collecting newspaper cuttings to discuss factors responsible for deficiency of nutrients. \| \| Arranging exhibitions about readily available food with high nutrients Demonstrations of first aid skills. \| Activities recommended in the health science curriculum are: \| Discussing unhygienic practices. \| \| Collection/preparation of pictures/charts showing ill effects of alcoholism, drug addiction and smoking. \| \| Preparing immunisation charts showing time schedule for children. \| \| Preparing a list of commonly occurring diseases and classifying them under hereditary, communicable and non communicable. \| \| Collecting details of genetic engineering Heath and Physical Education. \| However, this evidence must be set beside the general agreement that in health education it is "Only theoretical aspects that are taught nothing practical". In some cases, teachers invite doctors to give talks on health issues and diseases - suggesting their reluctance to tackle health issues themselves. Teacher preparation Health education forms part of the Health and Physical education curriculum. Marks for health education constitute 2.5% of the total curriculum marks. It was not possible to see the curriculum for health but one informant commented that: "health education is not integrated in the teacher training colleges. Orientation of teachers to teach health education is done by IEC staff responsible for school health education." and noted that over the last five years no orientation in health education has taken place as there has been no money for training. Where teacher orientation has been done, it has been carried out by doctors. It comprises a 2 day training. So far 1000 teachers have been trained in 20 courses in some selected districts: Kary, Wanar, Trivandrum. The training is conducted at (Sub) District level. The teachers trained are science teachers and in-charges of health clubs in schools. The topics covered are: communicable diseases (HIV/AIDS will be integrated here), health habits, immunisation, nutrition, first aid and health problems such as seeing, hearing. This programme was started in 1991 by UNICEF. UNICEF has started intensive health education programmes providing training to teachers and health club leaders in the primary schools in Vizhinjam Panchayat and Vihura Panchayat. HEAL has also arranged an teachers' orientation course with an emphasis on interactive methods. There was no evidence in the teacher training colleges of any training related to AIDS education. Supportive environments Additional support for health and AIDS education within the school context Health clubs are the most frequently mentioned co-curricular health education activity in schools. The health club initiative was started in 1992. It is organised by the Deputy Director of Education (a district level officer), with the curriculum put together by the Institute of Education. At school level, head teachers select one teacher representative. S/he is given a one day orientation seminar, conducted by health personnel. This teacher then establishes a school health club, starting with 50 selected students. These students organise activities and campaigns with their peers, and with the parent teacher association. Activities can include: holding exhibitions, health camps and medical check-ups. Some medicine is provided, and selected schools receive a UNICEF health kit. There are plans to extend the activities further to incorporate HIV/AIDS teaching, but these are not yet ready for implementation. Key informants at central level suggested that some 6,000 schools in Kerala have school health clubs, or are starting them up. However, school visits failed to provide any evidence that health clubs are yet active, and further informants, when probed, agreed that for the most part, health clubs are not yet operational, and lack necessary funding. In addition to the Health Clubs initiative, there is some evidence of NGO activity concerned with health education, using schools as a base or entry point. There are also plans to arrange seminars for volunteers of the National Service Scheme Programme to initiate AIDS information activities in colleges. The Population Education movement organises a range of out-of-class activities, including competitions (e.g. writing essays, painting, public speaking, quizzes on themes on popular education related issues); a "village adoption scheme" whereby selected schools adopt local villages, carry out surveys and look after the family life problems in the village. Population education clubs are also organised (i.e. different from health clubs). Population education also celebrates World Population Day using it to educate people about the population explosion and during the Population Education Week, exhibitions, processions, placards and banners carry the same message to schools. School health services For all schools there is supposed to be a health scheme programme. 12-16 medical officers are responsible for school health checks. Doctors are supposed to do a school health test once a year. However, the system is not fully operational - one person commented that school health checks may happen only once in three years. ### 2.3 The concerns of young people #### 2.3.1 General health concerns Table 7: Frequency showing the key issues which the sample say make them "unhappy/unhealthy" \| issue \| frequency \| frequency (N = 1341) \| \|------------------------------\|-----------\|----------------------\| \| Problems with parents \| \| \| \| fearing the death of their parents \| 248 \| 39.5% \| \| beating/abuse by parents \| 214 \| \| \| parents not caring \| 121 \| \| \| Problems at school \| 482 \| 35.9% \| \| concern over failing exams \| 424 \| \| \| problems with teachers \| 89 \| \| \| Food hygiene \| 457 \| 34.1% \| \| eating rotten \| 163 \| \| \| eating dirty food \| 107 \| \| \| eating food that flies have been on \| 169 \| \| Table 7 shows the issues mentioned by the pupils in the draw and write exercise. It is of interest to note that the young people are putting concerns with family and school at the top of the list, and only then fuming to more typical "health" issues. Environmental hygiene stands out much more clearly than personal hygiene (mentioned by only 13% of the sample), as does a concern about pollution. The pollution data has some similarities with findings from Lahore, Pakistan - showing the consequences for young people of living in overcrowded urban environments. The summary statistics mask the richness of the children's responses. The following extracts from the data provide a flavour of their views. Problems with relationships and problems at school Coming top of the list of concerns expressed by young people in Kerala were issues related to their relationships with parents, and worries about school. As with the Pakistan data, girls are more likely to describe problems with their parents family than are boys. Family problems frequently refer to death in the family - of parents and of other relatives. In many cases, this was expressed as a fear, rather than something that had actually happened. The other issue raised by many young people is of being scolded or beaten by their parents, for example: Sometimes my parents give me a real thrashing. I am not much worried by this. But they sometimes treat me with acute lack of love. This hurts me. I expect more from each (Pappa and Mamma) It brings me both mental and physical unrest (boy 14yr.) In pictures this is usually shown involving a stick. Parental discord is also sometimes depicted as a source of unhappiness for the children. Figure 6 Worries at home (India) The punishment of children is often associated with not doing well at school, thus leading to a vicious circle as the following quotation illustrates: If things are not happy at home I will not be able to study well and then I will get low marks. Consequently I will be punished at home and this will make me very sad. (girl 11ys) A number of the comments carry a sense that the children feel "wronged": when the elder brother is given priority... when elders do things wrong and put the responsibility over on us what is her crime? Stealing. She was in starvation and she has stolen because of this. Another expression of this sense of injustice is suggested by one child who hints at a 'lost youth': At a time when I should be playing and singing and running around with friends without any control, people at home coerce me to sit down and study." (boy 15yr.) The fear of failure at school appears to produce strong feelings amongst the children in this sample. They fear getting low marks and not meeting parents' expectations, one said that low examination marks are "the greatest unhappiness" and one goes so far as to say "when the result in exams is not good, I feel like killing myself" (girl 13yrs). Memories of failure are poignant and, as the following quotation illustrates, can be recounted in detail: In the morning of the day my results for class 7 was to be announced I got up, took a bath, dressed up in good trousers and shirt and went to school at 9.50 am I was very excited at that time. As soon as I reached the gate of the school I ran into the school and quickly found out that my name was not on the rank list. So all my vigour and vitality drained out of me. I can't even describe my sadness.... (boy 12yr.) Figure 7 Worries about school (India) Concerns related to 'traditional' health education topics taught in the classroom Food and hygiene Food hygiene ranks third in frequency with many references to the dangers of uncovered food and water contamination by flies. Many children elaborate on how germs are spread and some mention specific diseases such as cholera and typhoid that are spread through food and water. The data shows a clear difference between the sexes in terms of mentioning food hygiene, with girls mentioning it twice as frequently as boys. There is no difference between the two grade groups (i.e.: those have been taught about health and those who have not). Figure 8 Awareness of food and hygiene and their connection with health (India) Diseases and environment Just over a quarter of the sample lists diseases in their accounts of what makes them "unhappy/unhealthy". Many of these simply refer to being sick generally. Many also mention specific disease such as TB, malaria, diarrhoea, skin problems, coughs, kidney problems and cancer. Diseases tend to be mentioned in association either with a vector (e.g.: malaria being caused by mosquitoes) or with environmental conditions. Seven young people (all boys) specifically mentioned AIDS in what makes them unhappy and unhealthy, including one illustration for example: If AIDS comes to this country people will fall down dead like rain. It will be like there is poison in food. (boy 11yrs H6) Accidents Other issues related to what was taught and frequently mentioned is accidents - with the lower grades referring to accidents more frequently than higher grades. (24% of grades 6-7 vs. 16% of grades 8-10). The majority refer to road traffic accidents - with several involving bicycles. ![Figure 9 Accidents (India)](image) Drugs and alcohol One issue which does not show up strongly in numerical terms, but does get quite strong and detailed comment by those who raise it is the issue of drugs especially smoking. They worry about the cost, and they worry about the effects of passive smoking. The effect of alcohol is also noted by some of the children:... "when someone gets drunk and smiles in a mocking way we feel sad drinking can make a person mad" Boys were substantially more likely to talk about drugs than girls (32% vs. 14%). Environmental health This sample expressed considerable concern, both about local environmental conditions and about the broader problems of pollution from vehicles and from industry. Many of these were accompanied by graphic illustrations, and several included lengthy texts, indicating very strong feelings on these issues. There were clear differences between the two grade groupings, with around 30% of the older children referring to one or both of these issues, as compared with around 15% of the younger group. The girls in the sample were particularly keen to highlight the problems created by pollution with 32% of girls vs. 18% of boys focusing on pollution in their texts and drawings. The following quotation gives a feel for the strength of opinion on these issues: The smoke which comes out of the factory and the waste water of them are washed into the lakes. This water is used by the people who are poor. Today the people live only up to the age of 50yrs with healthy living but the people of the olden times without using science lived up to ages of 80 with complete health. Figure 10 Concerns about pollution (India) Summary of difference between gender and ages Anticipated sex differences did show up on food-related issues, with girls mentioning both food hygiene and diet, and problems with relationships (especially with parents) more often than boys, and exercise and drugs rather less frequently than boys. Some of the data gives support to the evidence from teachers that health is taught to older children, with the grade 810 group discussing diseases, environmental health and the effects of pollution much more frequently than their younger school mates. This grade difference is not apparent for problems at school or with relationships with friends. Very few of this sample expand their view of "unhappy/unhealthy" to include the broader social and political context in which they live (such as poverty, war, social unrest etc.). It is not possible to detect any evidence in this material of extracurricular health activities (i.e.: the health clubs which are supposed to be starting up). 2.3.2 Children's understanding of AIDS/HIV Table 8: Frequency table showing what children say they have heard about aids \| issue \| frequency \| % frequency \| \|-----------------------------------------------------------------------\|-----------\|-------------\| \| AIDS is a dreadful disease/killing many people/epidemic/spreading fast \| 510 \| 38% \| \| AIDS is spread by contact with people (i.e.: through air. spit. urine. being close) and through dirt generally \| 381 \| 28.4% \| \| To avoid AIDS, ensure that doctors use new/sterile needles in hospital \| 367 \| 27.4% \| \| Reference to AIDS being sexually transmitted \| 350 \| 26.1% \| \| Do not know anything about AIDS/sheet left blank \| 144 \| 10.7% \| Despite lack of systematic AIDS education in schools, or a particularly active AIDS awareness campaign, many children have heard something about AIDS with only 10.7% responding that they know nothing, or simply leaving their paper blank. There are others who are able to give quite detailed information on AIDS, showing an awareness of the three main ways it is spread, how it affects the immune system, the fact that a person may be a carrier without showing symptoms of the disease for many years and the extent of the global crises. The people of the world should cooperate to prevent this disease. (boy 13yrs H9) The "don't knows" are more likely to be boys (13% of boys and 7% of girls were unable to respond to the AIDS question), and more likely to be in grades 6 and 7 (17% of grades 6&7 unable to respond vs. 6% of grades 8-10). Misconceptions about AIDS Over a quarter have misconceived ideas about AIDS being spread through daily contact with people, through the air, through food and through dirty environment. This view is significantly more prevalent amongst girls than boys (34% vs. 24%) and amongst grade 8-10 pupils than amongst grade 6/7 children (35% vs. 21%). Misconceptions about transmission and prevention of infection include: ... through the clothes, the food, water etc. (girl 13yrs) When a person gets this disease we should not go near the person. We should not eat the left overs of this patient. Either we should dig a hole and put left over in this hole and cover it up or burning the stuff is the best thing to do. Do not mix clothes of this patient with clothes of another patient (girl 12yrs H8) ..When he coughs he should close his mouth otherwise the disease will spread to other people... (girl 13yrs H8) Some misconceived ideas of causation include: - vomiting of the aids patient. - smoking and taking liquor. - the Aides mosquito. - those who stand near the Aides affected people is to get the disease - inhaling the smoke of vehicles and trains. - it occurs where there is some kind of fusion between the male and female gamete. Some misconceived ideas about cure include: - eating jackfruit is a good treatment for aids... - AIDS is a deadly disease but treatment has been developed for it. - only if you take the patients to the hospital can they be cured of this disease - recently we heard on TV and read in the newspapers that Indian systems of medicine has some treatment for it. This hopefully will end in the goodness of this country - it can be cured by radiation. On the other hand, there are children who are already quite clear that AIDS is NOT caused by close proximity with people, dirt etc. Transmission through sharp objects 27.4% of the sample know about the dangers of unsterile needles, often also tying this up with dangers of blood transfusions. There are a few stories about AIDS being passed on through unfortunate coincidences (i.e.: a person with AIDS being shaved by a barber, and getting a cut, and then someone else coming along and having the infection passed on). These are quite infrequent (compared, for example, with Ghana, where this is a common concept). In most cases, the infected person is seen to be a "foreigner" - with Europe, the USA and Africa being seen as the places AIDS comes from. Transmission through sexual contact Around a quarter of the sample know that AIDS is sexually transmitted, or at least transmitted through man/woman relationships. Several of these don't directly refer to sex, but talk of "mingling", "bad connections with women", "private contact of one person with another" - the majority including a connotation that it is only "bad women" (and rather less often "bad men") who are at risk. Pregnant women are seen to be particularly at risk. Children's ideas about who is at risk: - mostly people who are in hotels - adultery is its main cause and it is very common in Western countries - AIDS is caused when someone relates to prostitutes. - relation with bad women. - in some places like Bombay there are many girls selling their body for money. They are illiterate. Children's ideas on how you can protect yourself: - Not doing sex - Don't have sex with dirty men. Don't have sex with dirty women. When having sex with such persons, don't allow sperm and ovum get in contact - Monogamy should be made compulsory to avoid aids. Even though a number of these young people have some awareness of sexual transmission, very few talk about condoms, and those who do simply mention them rather than showing any insight into how they are used. As anticipated, boys are more likely to mention condoms than girls (6.3% of boys vs. 0.3% of girls), and older students more likely to mention it than younger ones. Children are clearly quite frightened by what they have heard about AIDS, and some think it is an infectious disease, with infection caused by day to day contact, for example: Don't befriend AIDS patients. AIDS patients should not sit or sleep with others. AIDS patients, while travelling in bus, should not smoke, because it has bacteria in it. When AIDS patients speak to others, germs will spread to others (girl 13yrs) However, there is very little outright rejection of people with AIDS, and these are outweighed by those who say that we must treat people with AIDS with compassion: It is not true that AIDS spreads from one person to other when are sit near them. The people who are affected are consider outcasts from society. We must not treat them like that. We must go near them, console them and make yourself happy by making them happy (boy 13yr.) Summary of what school pupils know about AIDS in Kerala From the draw and write data on AIDS, there is clearly a lot of basic ground work on AIDS awareness still needed in Kerala (the Bombay data is also similar) - although those who took part in the research were surprised at what young people do already appear to know. Level of schooling is clearly significant, with pupils in higher grades having both more correct understandings and more misconceptions than their younger school mates. Whilst this may be because the older ones are more prepared to guess at how the disease is transmitted - and to base it on their understanding of how other common diseases are transmitted, there are some suggestions in the data that parents and the media are either passing on incorrect information, or that the young people are misunderstanding what they hear. Figure 11 Children's understanding of AIDS (India. Kerala) ### 2.4 Opportunities for development Research and evaluation of health education in schools As already noted, there has been no systematic baseline work on the health of school aged children, or on the potential of the school system to sustain an effective comprehensive health education programme. There has been a preliminary survey to support AIDS IEC work, in a health centre where HIV/AIDS is suspected to be relatively high. The survey consisted of a structured questionnaire, initially formulated by the medical school, adapted and pre-tested by the IEC department. Following the pre-test, some questions, such as "Have you had any pre-marital sex and, if so, how often with how many partners?" were deleted because they were regarded as too sensitive. No qualitative research was carried out to develop the questionnaire. Results of this study are not yet available. Although there is no evidence of any current monitoring and evaluation work related to health in schools, monitoring of health clubs initiative is anticipated. Teacher, parents and pupils support for development in health education When teachers were asked about what they feel children should learn about health at school, the general view was that there should be a bit more, made more practical. Some suggested improving teaching on hygiene, others see no real need to change what they are doing - as the general opinion put forward by teachers is that teaching on health is "no problem" - with the common comment: "When children ask, their doubts are cleared for them by the teachers". The only issue which did get special mention in three of the schools was sex education, with two of those groups mentioning difficulties with embarrassment on the side of both teacher and pupils. Two of the schools specifically raised the need for sex education, and a third talked of the need for guidance of girls coming into puberty. Amongst parents, all groups agreed that children should be taught disease prevention and health promotion. Particular topics mentioned were: food and nutrition (especially for girls), first aid, contagious/common diseases, water borne disease, pollution, sanitation, functions of the human body. Specific mention of sex education was absent. Teacher, parent and student support for development in AIDS education When asked what school students should be taught about AIDS, teachers seemed to agree that AIDS should be taught, with Standard 10 (13-15 year old) being suggested as the appropriate age to start. Two said they already mentioned it - though with very little detail (mainly emphasising that it is a disease without a cure). These same teachers also felt that children already had some awareness of AIDS from the media, but did not know how much children know. One teacher mentioned that the health science text is going to be revised, and a topic on AIDS is going to be included, in which case "we can give the students more information about this disease". When questioned more deeply on whether teachers should tackle the sexual transmission of AIDS, and prevention through use of condoms, teachers expressed reluctance. Perhaps most important are the views of those who already teach about reproduction: "We can teach them but there are certain things that they have not experienced so they will find it difficult to understand these facts and we will find it difficult to clear their doubts.... By talking about condoms and the use of it, we are giving them a licence to use it and thus giving them the wrong idea. This topic gives an encouragement to them. It is good to give them a warning." "I do not face any problem in teaching about reproduction in the classes. I assume a mother's role in the class and teach them about this topic and the students listen to me. But regarding AIDS being spread through sexual contact and teaching the student about such details is not necessary as they are not going for it." Biology teachers were felt to be the most appropriate ones to teach about AIDS (as part of the health science text). However, it was felt that they themselves would need some further training and information. There seemed to be general agreement amongst parents that children should be taught about AIDS - causes, spread, prevention and consequences of the disease. They emphasised that it should be taught at the appropriate level and with appreciation of the highly conservative culture in Kerala. One group noted that children already get a lot of information through the media about AIDS, and they are inquisitive. It is better that they are taught by the teachers in the school rather than gaining incorrect or partial information from the media. Another group noted that the children should be allowed to ask questions and details about AIDS infection and consequences. Teachers also did not anticipate problems with teaching about AIDS in schools - since they say that parents "do not interfere" in school activities. This is mainly explained as being due to the illiteracy of the parents, who are only happy that their children are being educated. From the point of view of the school students themselves, like the groups in the other countries, they had many questions they wanted answered about AIDS. The questions young people have centre around: the spread and origin of the disease; diagnosis and symptoms; if there is a cure; how HIV/AIDS is transmitted and how it can be prevented. Promising options for development Despite constraints there are possible entry points for strengthening the innovative initiatives already started in school health education and for developing a programme in AIDS education in schools. 1. Strengthening existing initiatives in health education. There is a clear interest in the Directorate of Education and the Directorate of Health Services to strengthen the health education component in schools. The school health education unit of the Directorate of Health Services has recently been established, the new school health education programme has just started and the health clubs as planned seem a worthwhile initiative. To enable these programmes to be implemented successfully it will be important to increase the expertise of key staff in the use of interactive teaching methods and also to ensure proper resourcing of health clubs. UNICEF is already supporting further development of school health education through the financing of training seminars. The following possibilities seem to be valuable to explore further: - Develop greater collaboration between the new school health programme in the Directorate of Health Services and the UNICEF School health scheme in the Directorate of Education. - Establish a co-ordinating committee and advisory panel for school health at State level. One of the first tasks would be to develop a clear role for the different services. - Secure resources for training, follow up, monitoring and evaluation of the youth club programme. - Support the school health services. This has the advantage of increasing regular health check ups and supporting the teachers in dealing with issues they feel as yet not comfortable about. Doctors are encouraged to become members of health clubs to provide specialist information. 2. Developing AIDS education programmes. The threat of HIV/AIDS could provide a new motivation to look seriously at a new approach to health education in schools. In Bombay, where HIV/AIDS is more widespread and urbanisation is more explicitly changing sexual practices of young people, the need for sex education is strongly promoted by the medical school health services which are based in the Institute of Education. At State level in Kerala there is a clear commitment to include HIV/AIDS education in schools. The emphasis at the moment is merely on providing correct knowledge and information although some key informants realise that effective health education needs to go beyond didactic teaching of facts. It is likely that emphasis will be put on responsible behaviour i.e.: delaying sex (abstinence) which is already strongly promoted by parents and teachers. However, the information about use of condoms and sexual practices disseminated by the media will leave young people with questions that need to be clarified. There is also concern that this type of education will leave the growing group of sexually active young people at risk without a chance to reflect on and discuss how to negotiate sexual behaviour and practices. Therefore there is a need to start looking at ways to enhance the ability of pupils and students to discuss issues around sexuality and interpersonal relationships. The best option forward seems to be: a) Urgently develop a teacher training and AIDS education programme which provides basic knowledge on HIV/AIDS for standard 10 onwards. b) Start developing a more comprehensive programme in collaboration with the health club initiative and initiatives implemented by UNICEF and NGO's such as HEAL. The following possibilities seem valuable to investigate: - Identify key personnel involved in school health education to be trained in interactive methods to address health education issues with an emphasis on sex education in relation to HIV/AIDS. - At the moment there is consensus to start with mentioning sexually transmitted diseases in grade 10 (13-14 years old). It might be helpful to involve NGO's such as HEAL who have gathered some experience promoting dialogue around issues of sexuality with parents and young people. - Develop qualitative formative research skills to implement action research programmes. Case study 3: Uganda 3.1 The general context 3.2 Health and AIDS education: curriculum activities 3.3 The concerns of young people 3.4 Opportunities for development The Uganda study was conducted in July 1993 in collaboration with the Institute of Public Health, Makarere University. The study focuses on Kampala, but the basic policy information is relevant to the country as a whole. 3.1 The general context Health and AIDS situation The current population estimate for Uganda is 17.6 million, with an annual growth rate of 2.9% (Census 1991). Roughly 50% of the population are in the age group of 0-15 years. The infant mortality rate reported from the 1991 national census is 122 infant deaths per 1000 live births. Diseases which affect children especially are related to nutrition, water and sanitation, and natural and domestic environments. Overall, about 45% of all children in Uganda are chronically undernourished and stunted. The common causes of child and infant illnesses are malaria, acute respiratory infections and diarrhoea. Leading causes for under five mortality are malaria, nutritional deficiencies, diarrhoea acute respiratory infections and measles.10 10 Uganda National Situation Analysis of Women and Children, Issue paper August 1993. Most women (80% in several studies) are aware of one or more contraceptive methods but only 21% have ever used a contraceptive and only 50% are currently using a method.11 11 UHD’s 1988/89 in issue paper on Uganda National Situational Analysis of Women and Children, August 1993. Unlike the other three countries included in this study, AIDS is the number one health priority in Uganda\\textsuperscript{12}, being the leading cause of adult death with reported cases doubling every 12 months, and the sixth leading cause of death among the children under five. In mid-1991 an estimated 1.5 million Ugandans (20% of the sexually active population) were HIV+. AIDS cases officially reported were 24,977. AIDS incidence peaks in the 25-29 yr. age group for males and in the 20-24 yr. age group for females - almost six times as many girls as boys have AIDS in the 15-19 yr. age group, and almost twice as many in the 20-24 yr. age group. Although it is known that some young girls do have older partners, there is as yet insufficient understanding as to why the disparity is so great. \\textsuperscript{12} Subsequent data on AIDS in Uganda are taken from: UNICEF's response to HIV/AIDS in Uganda Update February 1993. There is enormous geographical variation, with infection rates as low as 2% of sexually active adults in some areas, and as high as over 30% in others (including urban Kampala, where the-in-depth school studies were carried out). Rates are also high in areas which have suffered considerable civil unrest in the past ten years. A consequence of both the civil unrest and AIDS is the very high level of children who have lost one or both parents. The 1991 census recorded 1.5 million children below 19yrs. who had lost one or both parents. USAID, UNICEF and SCF estimate that there are now in the region of 115,000 AIDS orphans, and that this will increase five-fold in the next five years. Health education in Uganda: an overview Health education in Uganda is implemented through the Health Education Division of the Ministry of Health. As well as having a central health education unit, the division is responsible for the Health Education Network (HEN), which is coordinated by the National Health Education Steering Committee. HEN was established in 1987, to give health education a more prominent role in supporting ongoing and new health projects within the primary health care strategy. Key concerns when HEN was set up were to reduce mortality and morbidity among children and promote other health activities among the general public. HEN has started to create a cadre of health educators at district level. At the moment 40 district health educators and 66 assistant health educators are based in the districts. The target is to train enough assistant health educators to place one at each sub-county (totalling 760 AHEs). Health educators are involved in a wide range of activities which are implemented at district level, including school health education programmes aimed at AIDS prevention, water and sanitation, communicable disease control. Health educators are members of the training teams for school teachers. Health educators are supposed to support school health through school visits and monitoring of what is taught. The Ministry of Health is also responsible for school health services - but does not have a fully operational programme. Within the Ministry of Education and Sport there is the School Health Education Project (SHEP). SHEP, like HEN, was launched in 1987. Its objectives are: • To develop a curricula for health education in schools and integrate health education into the existing primary school curricula. • To teach school children life-skills in health in a way that will stimulate them to change their behaviour and also to pass their knowledge on to parents and other children. • To integrate AIDS prevention in the school curriculum SHEP is coordinated by the Inter-Ministerial Advisory Panel (IMAP). Members of IMAP include technical staff from the Ministry of Education and Sports (MoES), Ministry of Health (MoH), Ministry of Agriculture (MoA), Ministry of Women In Development (MWID), Ministry of Local Government (MoLG), and representatives of UNICEF, WHO, AMREF, Child-to-child, the Medical School of Makerere University, and Uganda Red Cross. There appear to be some disagreements about the role and status of IMAP. However, one important viewpoint is that the coordinating office of SHEP should be confined to organising national level training courses, production and distribution of SHEP materials. Responsibility for supervision and monitoring of the project implementation should be at the District Education Office with funds for fuel and vehicles managed at district level. This seems a worthwhile proposal. Both SHEP and HEN attract substantial donor support. UNICEF, CIDA, SIDA and USAID are covering programme costs, with the government funding staff salaries. The World Bank is expected to fund a new diploma course in health education in Makerere University. In addition to SHEP and HEN, there is also an extensive Child-to-Child programme. This is primarily a donor-driven programme, (ODA, UNICEF and a Norwegian agency) implemented by the Institute of Teacher Education in Kyambogo (ITEK) Kampala. It is based on the UK Child-to-Child Trust ideas aimed at promoting the health of children, their families and communities, through the active participation of children in health issues. Child-to-Child again has a national steering committee, chaired by the principal of ITEK. Other members include representatives from the MoH, MoES, MoLG, NGO's, the Vice Chancellor of Makerere University and the Head of the Child Health Development Centre. Several of these members are also part of the IMAP. Child-to-Child also has a National Coordination Committee which consists of 15 zone coordinators plus the coordinator of the Child-to-Child programme and 4 members of the steering committee. Decentralisation of monitoring and supervision is recommended by the Child-to-Child programmes and the ones implemented in Kabale and Jinja, where Child-to-Child programmes work in close cooperation with the District Education Office, are perceived as doing well. Child-to-Child collaborates with a number of other non-government organisations - for example: • AMREF on Child-to-Child and health education in schools, • RED BARNA on AIDS orphans, • SCF on Child-to-Child in children's homes • Uganda Red Cross on Safety, AIDS Control Programme, • Minds Across on children writing for children, • International Christian Children on Productive Education, self confidence building and self reliance for out of school children. Two teacher training colleges along with eight associated schools are involved in the Child-to-Child project: Buloba Teachers college and Nzigo Teachers College. They work through child-to-child activities across the curriculum, explore collaboration with MoH activities and stimulate outreach activities. At least 181 known schools participate in so called "self-generated" Child-to-Child activities. These schools take it upon themselves to organise Child-to-Child activities which are recorded in school action plans. Activities are chosen to be in line with the SHEP health education curriculum. Children make posters, songs and drama related to health education messages. Links between the AIDS control programme and education It is not coincidental that 1987, the year that the health education initiatives described above were started, is also the year that the Uganda AIDS Control Programme (ACP) was started. AIDS has been seen by several key informants to have been the catalyst for many of the health education developments and innovations, which have yet to emerge in the other countries included in this study. Public health education was a major ACP component from the start, and has been subjected to monitoring and evaluation at several points. Recommendations from the 1991 review(^\\text{13}) indicated that public awareness of the disease is high, but that "AIDS educational activities should move from the focus of information provision to the open discussion of sexuality and sexual behaviours and the personalization of risk of HIV/AIDS so that all efforts are concentrated on supporting and maintaining realistic and culturally relevant options of sexual behaviour. The information collected in this evaluation exercise...indicates very strongly the need to offer a multiplicity of behavioural options in order to control the spread of AIDS" (^{13}) An evaluation study of Uganda AIDS Control Programme's IEC activities Draft report This statement has important implications for the content and style of AIDS education in schools, stressing as it does the importance of moving on from transmission of the basic facts about HIV/AIDS, to discussion of sexual behaviour. There are close connections between the ACP and SHEP, and HIV/AIDS is addressed in the school curriculum. The other main connection between school education and AIDS work is the Safeguard Youth From AIDS (SYFA) movement. This is a combined initiative of UNICEF, Uganda AIDS commission, the AIDS control programme and the AIDS information Centre, which aims to reach in and out of school adolescents. Schools are stimulated to help establish health clubs, hold drama competitions, establish fellowships. SYFA is supporting research into how young people can protect themselves against AIDS, and organisations whose target group is working with young people. Health and AIDS education needs assessment for curriculum development To date, neither the Ministry of Health nor the Ministry of Education and Sport have undertaken any kind of detailed health survey focused on school-aged children. Main causes of mortality and morbidity can only be extrapolated from general population data. However, there is a considerable body of evidence on adolescent sexuality which could be used by curriculum planners. Much of this has been brought together in a comprehensive review carried out by Barton and Olowo Freers (1992). It shows that acknowledgement of pre-marital sexual experiences differs by region (for example 18.5% in Northern Madi, 44% in Kampala). Findings of different studies carried out in Kampala show an average age for first sexual experiences ranging between 13.6 and 15.7, with some children starting as young as 10yrs. There are many Knowledge, Attitude and Practice (KAP) studies related to HIV/AIDS. An example of such a study was carried out by AMREF among primary school students in Kabale District (Bagarukayo et al 1992). This study also shows that there is a high level of sexual activity in Primary level 7 (average age 13.94) with 38.5% of females and 61.5% of males stating that they had already experienced sexual intercourse. A worrying factor is the stated increase of forced sexual activity since 1989. 49% of the sexually active girls and 20% of the males reported being forced to have sexual intercourse and 22% of the females said they had received gifts or rewards. 3.2 Health and AIDS education: curriculum activities Health education curriculum and textbook contents In 1987 health education was integrated into the basic science curriculum on a basis of 40% health education and 60% science. A syllabus, teacher guide, pupil text books, school health kits (on AIDS, water and sanitation, diarrhoeal diseases, and immunisation), Primary Leaver Examination (PLE) syllabus and specimen paper, and a consolidated PLE syllabus 1991-1995 were developed. Subjects taught as part of the Basic Science and Health Education Curriculum at primary schools are: - Hygiene and Sanitation - Common Diseases - Primary Health Care - Food and Nutrition - Immunisation - Family Health and Social Problems - Accidents and First Aid. Education on HIV/AIDS is integrated in grade 6 and 7 of primary schools as part of the teaching on STD's. At secondary level, health education does not form a distinct part of the curriculum, but is integrated into science subjects (especially biology). AIDS is included in the biology syllabus, within a section on common diseases. A special AIDS pack, A safer living, safer loving has been produced for secondary level students by Macmillan's publishers, in conjunction with TASO (the AIDS support organisation). Evidence from the policy analysis and from the teachers suggests that most of the teaching around health focuses on: 1. issues concerned with personal health and hygiene, such as mention of specific diseases, disease vectors, personal cleanliness, diet and food hygiene, drugs (including smoking and alcohol), exercise, accidents 2. issues concerned with personal relationships (with parents, with friends, and with self 3. issues concerned with the environment (both local - such as sanitation facilities, housing, refuse disposal, water quality and more general - such as pollution from traffic and industry, and deforestation) Health and AIDS education practice Teachers perceptions of what is taught Evidence from discussions with teachers confirms the conclusions of the "policy" document that health issues are quite extensively covered within the school curricula - both primary and secondary. Health issues specifically mentioned by teachers included: - nutrition: how to obtain food; why is it important; balanced; diet nutrition related diseases - diseases: how caused (eg: bacteria, viruses, houseflies, mosquitoes); the different organs affected; diseases like AIDS, common diseases like diarrhoea, typhoid, cholera etc. Also diseases caused by poor conditions of living, dirty water and the like - cleanliness, personal hygiene, sanitation, - physiology of humans. How different parts work. We discuss reproduction, how to build up a good family, control of birth. Teachers also confirm their role in AIDS education, with some being very clear of its importance: "It is a matter of survival so then it must taught. If you want to perish then leave it. Be it in or outside class. A class environment is ideal. " (primary school teacher) Teachers from the SHEP "model" school, and from one other secondary school also confirmed their involvement in extra-curricular activities, including "Hydra", a drama competition (this is picked up later in the children's responses). General teaching methods In general, teaching methods in Ugandan schools are didactic and teacher centred. Large classes (for example 100-150 children in one class in a Kampala school), and limited teacher training and resources militate against innovation. Reviews of in-service training where participatory methods have been introduced show that, when teachers are subsequently followed up, the majority have lapsed back to basic "chalk and talk". However, this general picture should not overshadow the efforts of some teachers, who attempt more participatory teaching styles (eg: involvement in the Hydra drama competition mentioned above). There are examples also of support for more active teaching in the SHEP materials. The secondary level book: A safer living, safer loving, for example, encourages "participatory learning through the use of active learning methods, such as role play, small group discussions, case studies and interactive radio and community action projects, which go beyond the classroom and can help pupils to explore and practice positive health behaviours." Teacher preparation Pre-1987, teacher preparation for health education was limited, and ad hoc. With the start of SHEP, a 5-day in-service programme was introduced for primary school teachers. This was extended to a 10-day course in 1989. There are 37 facilitators at national level available to run these training courses. There are now moves to introduce health education into basic teacher training, as a specialist subject area. Work on this was started in 1992, and was due for implementation in 1993/4. Already, 50 college tutors have received training. Preparation for teaching about AIDS takes up one day in the 10-day primary teacher programme. Secondary teachers were given a "crash course" by a Ministry of Health task force in 1989. The other form of teacher preparation is for the Child-to-Child programme. The Institute of Teacher Education (ITEK) provides a one week course for zonal coordinators, who then train teachers in their own zones. Two other training colleges are also involved in this programme. There is clearly a lot of activity and thought that has gone into teacher training for health, and especially for AIDS education. However, there are still problems with it. SHEP requires considerable adaptability and energy on the part of teachers, and appears to work most effectively in areas where there is good NGO support to schools. Another problem is that there are few female teachers involved in AIDS education in schools - they rarely are selected for in-service training. Supportive environments School environment Teachers see the problem of teaching children about health in an essentially unhealthy environment - and when teachers and parents themselves often demonstrate unhealthy behaviour: "Smoking is bad but..." [teachers still smoke] "Pollution is bad and yet when they go out the students see that nobody cares" "We talk about balanced diet - when the school meal is beans and posho (maize meal); tell them to drink boiled water when the school itself does not provide boiled water." During visits to schools researchers made a note of toilet facilities for the children. Numbers ranged from 150-200 children per toilet - and cleaned at best once per day. Whilst all the schools visited were in good condition and quite well maintained, the comparison between urban and rural schools indicates quite different standards. Additional support for health and AIDS education within the school context There are a wide range of innovative activities - either organised as extracurricular or out of school activities sponsored by a range of government and non-government organisations Health workers and specially trained AIDS counsellors do special sessions on AIDS in schools. For example, TASO (the AIDS Support Organisation) has trainers who will go to schools on request. SHEP produces a magazine, which, amongst other things, encourages children to talk about different health issues, including AIDS. Drama is seen as an important medium for AIDS education. In 1991 a drama competition was organised. Two plays were written: Hydra for secondary schools and the Riddle for Primary schools. The primary school drama script was prepared by a group of professionals and given an open ending. The children are then expected to design their own endings. Drama is seen as a medium to address issues that cannot be addressed in the classroom. Situations out of control of the children such as sexual abuse and economic needs are addressed in the play the Riddle. TASO is also planning to use drama in AIDS education. Essay competitions have been organised. These could provide a fascinating data base of children's experiences of AIDS, if analysed carefully. Clubs are also proving popular. Both TASO and the Safeguard Youth from AIDS (SYFA) movement are actively involved in establishing and maintaining these clubs. TASO has just started forming Youth AIDS challenge clubs. The initiative started with young secondary school youth who had lost at least one parent. The methods used are participatory and start with what the participants want to know. Discussion is focused on expelling myths about the disease and providing a comfortable climate in which to discuss questions about their own sexuality: How do they feel? What do they think about having sex at this time in their lives? At least 181 known schools participate in so called "self-generated" Child-to-Child activities. One encouraging initiative is AMREF's special project in collaboration with SHEP (1992-95) to combat the spread of AIDS in the primary schools of Kabale District, using a Child-to-Child approach. ### 3.3 The concerns of young people #### 3.3.1 General Health concerns Table 9: What do children think makes them "unhappy and unhealthy"? \| Issue (including most salient sub-issues. Note: a pupil may mention more than one sub-issue) \| Total number of pupils who mention the issue \| % frequency N=688 \| \|---\|---\|---\| \| food hygiene \| 344 \| 50% \| \| uncovered food/flies on food \| 224 \| \| \| contaminated drinking water \| 196 \| \| \| Topic \| Count \| Percentage \| \|--------------------------------------------\|-------\|------------\| \| unwashed food \| 75 \| \| \| latrines/water sources \| 339 \| 49% \| \| broken latrines/urinating outside \| 170 \| \| \| dirty water sources \| 159 \| \| \| dirty pit latrines \| 135 \| \| \| relationships with parents \| 336 \| 49% \| \| death of parents (actual and feared) \| 173 \| \| \| beating/abuse from parents \| 92 \| \| \| local environmental hygiene \| 265 \| 39% \| \| dirty surroundings \| 140 \| \| \| poor housing \| 105 \| \| \| rubbish everywhere \| 61 \| \| \| specific diseases \| 246 \| 36% \| \| AIDS \| 162 \| \| \| diet \| 207 \| 30% \| \| not enough food/starvation/famine \| 115 \| \| \| unbalanced diet \| 70 \| \| \| vectors \| 206 \| 30% \| \| flies \| 93 \| \| \| mosquitoes \| 60 \| \| \| problems at school \| 166 \| 24% \| \| fear of failure/bad marks \| 68 \| \| \| problems with teachers (beating; teachers absent; favouritism) \| 47 \| \| \| accidents \| 164 \| 24% \| \| road traffic accidents (cars and bicycles) \| 115 \| \| \| political/social issues \| 161 \| 24% \| \| poverty \| 83 \| \| \| relationships with friends \| 140 \| 20% \| \| quarrelling/bad friends/bullying \| 95 \| \| \| drugs \| 135 \| 20% \| \| smoking \| 80 \| \| From the summary in table 9 it is clear that the children associate many of the issues taught and raised by the teachers with what makes them unhappy/unhealthy. Whether they raise these issues because they are taught or because they are concerned about them cannot be distinguished easily. However it is more likely that issues which are not taught but spontaneously raised by the children are issues that they strongly associate with health and happiness. The summary statistics mask the richness of the children's responses. The following extracts from children's drawings and comments give some flavour of their views and an idea of how health teaching is conducted. Children's concerns related to familiar health education Hygiene Someone who is eating hates seeing someone who is defecating in front of him because it is unhygienic. - it flies carry germs from faeces and urine to the food another person is supposed to eat, that person may come without washing the hands and eats the food. On eating the food, the germs go into the person's stomach and can easily cause disease" (boy, 12yr..) The health environment of schools and localities The views expressed in the following quotations give some insight into the "health environment" of schools and of localities. Our school toilets should be repaired, the pits are broken there is no water for cleaning the toilets after use, our urinals are so dirty to look at, they have green plants grow on them the urine can't pass through because where the urine is to pass it is blocked....our latrines should be built far away from water source because when the urine is blocked all the faeces will move to the water source. (boy 12yrs) Things that make me sick and unhappy are: dust bins which are not cared for by city council, poor sanitation, unprotected container filled filled with garbage, these things make me sick in the way that if these things are not cared for well, people around this place will get diseases e.g.: i) diarrhoea ii) malaria iii) cholera iv) trachoma etc." (boy 14yr.) Figure 12 Children's awareness of personal hygiene, diet and health (Uganda) Concerns which are not directly related to health education teaching Problems with parents Of the concerns mentioned which are not directly related to the textbooks almost 50% of the young people involved in the study describe concerns about their parents. Many express a general worry about parents dying. In most cases this appears to be something which worries them rather than something which has What can make me unhappy is over beating in both homes and schools. Most parents and teachers do like beating too much. And the beating is not the one to three they say the least is three If eel that beating a child without making he/she understand that he has done is bad. (boy 15yr.) Another source of unhappiness is related to how the children see their status in relation to others in the household: we some of us who are staying with in laws - sisters - you find that you can be coming from school you are very hungry but you find your sister in law taking evening tea. Instead of welcoming you just say get a paper bag to go to the market to buy food....Not only that but again when you will come back from market, you will still get her on her mat and tell you I want to take a bath. And meanwhile you have finished taking water she goes to bath only bathing will finish 3hrs. You will prepare supper to take to the bedroom for her afterwards. She will start complaining that the food is not ready is even burnt, who will eat this, then she say go and buy for me bread. Quickly even if its dark but you have to go. If you refuse she start abusing you then I start crying after that she say I count 1,2 when all your tears has disappeared." (girl 15yrs) What mostly makes me unhappy is a family in which I come from. I am living with a cousin of mine but his wife makes me sick. She doesn't want me to sit down and concentrate on my books. All the time she wants me to do house work when I try to sit and read my books she comes pointing at me pouring out bitter words, really my dear friend I don't know what to do about this."(boy 16yr..) Figure 14 Worries about parents and relationships Concern about drugs 19.6% of respondents included various forms of drug addiction in their views of what makes them unhappy and unhealthy. Smoking predominated, followed by alcohol. Some also mention passive smoking and related smoking to diseases, especially cancer. Most images and comments on alcohol were general. However, several associated it with fathers drinking beer and then becoming abusive with their wives and children. In the children's comments on AIDS, alcohol is also seen as a "danger problem" as it is associated with discos, other drugs and sex. Figure 15 Children's awareness of the dangers of drugs and alcohol (Uganda) Concern about accidents Just under a quarter of the pupils involved in the draw and write exercise refer to accidents - the majority of these being road traffic accidents. Other accidents include getting burnt on fires, injuries from playing and poisoning. Figure 16 Worry about accidents (Uganda) Concern about pregnancy Unwanted pregnancy was a concern expressed by about a quarter of the girls in the sample. Fears around this focus on the isolation of the girls: several of the images of pregnant teenagers show a girl on her knees in front of an angry parent, ready to beat her, others talk of persuasion tactics of young men trying to encourage them to have sex - and then dumping them when they become pregnant; some mention how pregnant girls can be "chased away from school". For the care of the pregnant girl, I think she need more love that ever because in her solitude she fails to notice any love - which she needs most - the whole world is against her - so death is the solution she gets which is very unfair (girl 16yrs) Some of the boys also mentioned pregnancy as a problem but their view of it appeared to exclude the role of boys in teenage pregnancies. It appears to be seen as "their (i.e. girls) problem": They are brought into troubles because they cant say no to sex or they tell their faithful partners to get rid of the use of a condom (boy 16yrs) ...school girls who produce unwanted babies and then throw then in pit latrines after seeing that they are bad (boy 16yr..) Figure 17 Fear and worries about pregnancy (Uganda) 3.3.2 Children's understanding of AIDS/HIV 194 (28.2%) of the young people who took part in the draw and write exercise specifically mentioned AIDS as something which makes them unhappy/unhealthy - before they were aware that they were going to be asked to give further information on their awareness of AIDS. Secondary school children were much more likely to mention AIDS (40% of them raised it as an issue compared with only 8% of primary school children). If one combines mention of use of condoms, HIV testing before sex, and other comments on sexual practice, over 80% of the sample specifically talk about the connection between sex and AIDS - and most of those who don't mention sex directly imply it. Ideas about prevention When asked to draw and write about how they can protect themselves from AIDS, all were able to write something, and the majority of the sample could put forward at least six different ideas on how to protect themselves. Girls tended to put forward more ideas than boys. Table 10: Ranking of ideas put forward by the total sample \| School pupils' ideas on how they can protect themselves from AIDS (Issues raised by 20% or more of the children) \| Number of pupils raising the idea \| % Frequency N=688 \| \|---------------------------------------------------------------\|---------------------------------\|-------------------\| \| using condoms for protection \| 417 \| 60.6% \| \| taking care in hospitals - ensuring new needles used/equipment properly sterilised \| 391 \| 56.8% \| \| having blood tested (blood transfusions and also HIV testing for sexual partners) \| 317 \| 46% \| \| abstaining from sex/keeping to one faithful partner/avoiding casual sex, \| 233 \| 33.9% \| \| promiscuity, adultery avoiding people with AIDS (PWA)/segregating certain groups eg: prostitutes and PWA \| 177 \| 25.7% \| \| HIV tests (NB: subset of the third item. referring to frequent testing of sexual partners/testing before sex or before marriage) \| 137 \| 19.9% \| One thing which is significant to note is the very small number of pupils who put forward misconceived ideas about how to protect themselves from AIDS. A total of 11 suggest that you can protect yourself through contraceptives other than the condom (the diaphragm, coil and pill are mentioned), or by using tampons. Only 22 talk about avoiding close contact with people - eg: not sharing food, standing close to people, etc. The students who put forward these ideas were from across the seven schools, with only two or three per school. Protection against AIDS: use of condoms 60% of the children participating in the draw and write exercise talked about the use of condoms in AIDS prevention. There was some difference between primary and secondary groups but the difference is not significant when you compare by age group (using 14yrs as the cut off point) - indicating that the difference is more "school related", with one of the primary schools showing a substantially lower frequency of mentioning condoms than the other. Boys were more likely to talk about condoms than were girls. In many cases the idea was simply portrayed by writing "using a condom", often with an image of a male with erect penis, or of a condom packet. Several of those who drew condoms or condom packets also included brand names - especially "protector" and "sultan", and quite often with "made in the USA" written on them. A few boys gave long lists of condom brand names. There is also some confirmation from teachers, through the focus group discussions, that boys not only know about but buy and use condoms: "at least every week five pupils buy condoms in a nearby shop - the pregnancy rate has dropped tremendously, maybe it is because of HIV infection, use of condoms, financial hardships of male students i.e.: they don't go in for female students" A number of boys expressed some distrust in the safety of condoms, believing that "A condom may be 90 percent safe but not a hundred correct safe because it may be dangerous to use a condom which has past from date shown on the bag" and that condoms can have perforations which renders them unsafe. Figure 18 Children's knowledge about condoms Ensuring good practice in hospitals, and testing blood for HIV 56% of the sample include one or more ideas related to the use of sterile instruments in hospital - ensuring that new needles are used, that instruments are properly sterilised, or that you take your own needles to hospital. The girls mentioned these ideas more than the boys and they were also mentioned more frequently by primary school children than secondary school children. 46% also mention the importance of checking blood for HIV. Around half of these refer to checking blood used in transfusions. The rest talk of HIV testing before sex, before marriage, or regular testing for couples. Neither the general issue of blood testing, nor testing connected with sexual relationships differ significantly by age or sex. Arising out of this data are two issues which may cause concern to educators: i) a number of comments associated with the notion that some health personnel are actively trying to infect people with AIDS ii) the apparent trust in HIV testing as a form of "protection" - and, if these young people actually follow through what they are saying with action, the massive strain there would be on HIV testing. Figure 19 Hospitals, blood tests and AIDS/HIV Protection by abstinence ('avoiding temptation') and monogamy ('zero grazing') One third of the sample talk about abstaining from sex, sticking to a single partner, not indulging in casual sex or committing adultery. This view is more common amongst primary than secondary school children. It would be best for one not to play sex at all then when you've got a partner who has proposed marriage and your willing, you go for an HIV test and if you are both negative you can get happily married. 3. Avoid accepting boyfriends who have so many other girl friends and indulge into promiscuous sex exploits when they are still young because if your to marry such a man with a teenage background of that kind he is very likely to be unfaithful during your marriage life." (girl 15yrs) Only 7% specifically talk about avoiding sex with prostitutes or homosexuals. 17% of the sample make the connection between sex and discos bars drinking - saying that to avoid AIDS you need to avoid places where you are likely to be tempted to have sex. There are a few pictures of the media phrase "zero grazing" showing a tethered cow - with explanation to its meaning. Figure 20 Protection through abstinence and monogamy (Uganda) Girls' perception of their vulnerability, and their ideas on how to protect themselves It is interesting to note the that girls' feelings of vulnerability to the threat of pregnancy is frequently linked to a fear of becoming infected with HIV/AIDS. The threat of rape, persuasion tactics of young men, material "bait" offered by adult men (a couple specifically mention teachers getting sexually involved with pupils) are some of the concerns expressed in the images and comments. ...I feel unhappy when a boy runs after me really also me feel sick because this time is an aids era when you see like boy wanting to make love to you, you know he wants you to die which I dislike so much. On addition to that it is so amusing to that a boy can make a girl pregnant and afterwards denies the pregnancy. (Girl 19yrs) Being raped by adult people who some times have got aids... some parents don't give their children things they need when sometimes their useful so children end up looking for people who will provide then money where by they get pregnancy because you cant take peoples money for nothing who is not our mother or father. You can imagine nowadays thing changed even cousins don't respect each other (girl 15yrs) What can girls do to protect themselves? Inform adults of boy's advances Some try to protect themselves by telling their parents or teachers. ...By giving any letter I receive from a boy to my mother because I don't fill with a letter from a boy. I give it to my mother to know the boy who disturbs me, he can rape me and I get pregnant and he refuses the baby. I will have evidence to show that he is the father of the baby my mother will know everything that he used to write and talk. (girl 15yrs) Avoid bad company Some recommend avoiding bad company: You may have a friend of yours who is very interested in sex affairs. This friend is not a good friend because she might lead you into problems. Supposing she might be a victim, and she might want you to also get affected. So what she does is to find you a boyfriend whom she is sure is a victim. She might also tell you that the guy is HIV negative. In the end you end up by getting affected too. This can be avoided by abstracting from such friends and stay with those who are interested in studies." (girl 17yr) Figure 21 Girls' perception of their vulnerability and what they can do to protect themselves Where do children learn about AIDS? Children from all schools volunteer the idea that you can protect yourself from AIDS through learning more about it from school and images of AIDS education in a formal classroom setting are common. However, there are also very many references to mass media AIDS slogans - such as "zero grazing" and "love carefully", and it is impossible in this study to be able to assess what the children have picked up from the media, what they have picked up from friends and through hearsay, and what they have learnt at school. 3.4 Opportunities for development Evaluation of health and AIDS education in schools There is plenty of evidence to show that evaluation is included in both the School Health Education Project (1991 internal review and 1993 external review), and in the AIDS control programme IEC efforts (1991 external review). The internal review of the SHEP programme in 1991, as was mentioned earlier, highlighted problems in teacher training. The discovery of problems in teacher training has led to the development of a health education training module. The 1993 review of SHEP indicated the success of the project, but also highlighted some problems which need to be addressed. These include: involving a much wider range of people in the initial development of syllabi and materials; establishing effective follow-up support mechanisms; addressing the gender problem - where there are few female teachers involved in the project. On the issue of materials development the 1993 review states that the target audience, school inspectors, National Curriculum Development Council staff, SHEP project staff and teachers should be involved in the development of the secondary school syllabus and teacher training guides, and in the revision of materials which have already been produced. The 1993 review also raised the problem of materials getting to the right place fading that some schools get too many books and others not enough. In some areas books intended for free distribution are sold in commercial book stores. A co-ordinated district focused system of distribution of materials to all schools needs to be put into place. A number of key informants reiterated problems of follow-up mentioned by the 1993 review team. Sustainable follow-up of schools by a team of school inspectors and health educators at district level has failed, due to a complex of reasons: lack of transport and finances for allowances; under staffing at district level; and lack of training in follow-up of SHEP activities. SHEP has also evaluated the impact of specific activities. For example, a study was carried out as a follow-up to the drama competition. Child-to-Child has also undertaken an evaluation (1992). From the above, it is clear that evaluation reports are seen as important for further programme development, and do lead to change and development. One example of this is the developments in-service training in the SHEP programme. Another is SHEP's involvement of teachers and teacher trainers in current work on the health education curriculum and materials for secondary schools. Teacher support for developments in health education The general view of teachers is that there should be more of what is already taught. Some also say that there should be a separate health science subject in secondary school. Teachers do suggest changes to current teaching, to make it more relevant and practical. They also put a strong emphasis on prevention, especially focused on hygiene (which, from the draw and write, appears to be important already). Several refer to the importance of teaching about AIDS - with some feeling it should start from the first year of primary school. Others talk more generally of teaching related to sexual health and relationships. The constraints they mention are primarily to do with resources - for example: lack of suitable textbooks, lack of sufficient information about certain "killer" diseases, lack of practical equipment, lack of visual aids, no curriculum guidance on family planning and not clear syllabus. Teacher support for development in AIDS education From discussions with the teachers, there is general agreement of the need to tackle "all aspects of AIDS" (in which they include: causes, transmission, behaviour change, care of people with AIDS). Teachers feel that AIDS teaching must take into account the age of the child, but could start at P1. Some teachers are still cautious about teaching the use of condoms - expressing the fear, which seems common the world over, that young people will experiment with sex if they are taught "too much". "For example about the condom - the children should be given the knowledge but as for demonstration on how it should be used, it should be left to the adults." "Students are inquisitive. Once they taste the facts they want to find out more. Then they want to experiment. You encourage them." "Condoms were never made to prevent AIDS. They were made for family planning. It is not advisable to teach students about the use of condoms." However, others agree that condoms must be taught and taught practically: "...the condom is not the problem, but how it is used. Even adults don't know how to use it....adolescents should be given time to know how a condom should be used and its shortcomings. But information on condoms should not be given prominence or priority." "I feel on the issue of condoms. Condoms bought should have a model. Shows how to use it. If somebody has the guts to go and buy them they should be taught." Teachers seem to be prepared to continue with AIDS education but add the following suggestions: • outsiders with special expertise may be useful, and people with AIDS could be encouraged to become involved. • children should learn about AIDS from same sex teachers (which therefore means that the gender disparity in in-service training on AIDS must be addressed). • parents do not have a major role to play in AIDS education because of the difficulties parents seem to have in talking to their children about sex. • resistance from parents on teaching about AIDS is unlikely - except possibly if there is explicit teaching on the use of condoms Promising options for development of health education including AIDS education in Uganda Before highlighting a number of promising options for further development, it is useful at this stage to summarise some of the current constraints: - There is still considerable ambivalence about discussing sex openly in school (and, for example, to ensure that young people know about and are able to make proper use of condoms). There are also potential barriers from both religious quarters and from parents. - The large classes, limited human resources and low salaries of teachers makes it unlikely that small discussion groups of same sex pupils and teachers can be held on a regular basis. The curriculum is already full and teachers are unlikely to spend time outside school hours without some incentives. - Voluntary action by teachers who get involved in clubs and other extra curricular activities does take place but cannot be expected to take place on a large scale unless a reward is offered. - Few female teachers are trained which also limits the number of small groups that can be organised for female pupils. - Involvement of male teachers to discuss sensitive issues around sexuality with girls is not recommended for two reasons: 1. the potentially mixed role of a trusted counsellor who may at the same time be having sexual contact with girls and 2. the difference in experience of and outlook on sexuality between men and women. That said, we can look optimistically at opportunities for consolidation of school health education programmes and development of extra curricular activities which have already started. The opportunities mentioned here are presented in relation to on going programmes and activities and are intended to strengthen these activities rather than provide a range of new initiatives. 1. SHEP programme Recommendations for the SHEP made by the external review in 1993 need to be put into place. Special emphasis should be placed on formulating objectives in behavioural terms, improving distribution of materials, decentralising supervision and monitoring, and co-ordinating responsibility for teacher in-service training. A review of the relevant studies into sexuality and adolescents, and an analysis of students' essays submitted for the competition could provide valuable information on which to base behavioural objectives. The action research strategies developed by AMREF and SYFA could help in formulating specific objectives in the different districts and regions. 2. Review of the health education syllabus Some of the teachers indicated that not all of the content in the syllabus is relevant. A careful review of the teaching content might provide some space in the already full curriculum. 3. School health services The potential of school health services and environmental conditions need to be looked at in greater depth than was possible in this study. Collaboration at district level between MCH teams, assistant health educators and schools could be improved to ensure at least one school check and immunisation programme per school per year. Another recurrent issue is the availability of sufficient functioning toilets and water points for pupils. 4. Counselling roles of female teachers in schools Opportunities for increased training of female teachers should be sought. Establishment of counselling roles for female and male teachers should be encouraged. The initiative of the Shimono Model school in Kampala is a promising example. This school has a deputy female director to whom pupils can go on a confidential basis to discuss problems they encounter with teachers, other adults and peers who pressurise them into sexual activities. The school has established a public code of conduct which discourages pupils to be alone with teachers. Result of these improvements are likely to produce a more open climate to discuss difficulties pupils have to protect themselves from HIV/AIDS. 5. Extra curricula activities The formal didactic style of teaching constitutes a serious barrier to the introduction of more interactive methods for discussing problems students have raised in this study. E.g.: relationships with parents and teachers, questions around use of condoms, sexuality, and social political issues. The best option seems the further development of extracurricular activities. The Child-to-Child programmes, SYFA, and the drama project of SHEP offer promising opportunities to develop youth clubs and extra curricular activities. Comprehensive sex education, which includes: - small group discussions between members of the same sex about public, peer and personal codes of conduct; negotiating sexual relationships and use of condoms; • public discussions on the radio, within the resistance councils, and between other community leaders, teachers and health workers. 6. Use of study findings to trigger discussions in schools and between schools and communities Research programmes need to ensure sufficient resources for dissemination of results to all relevant institutions. The discussion of results by community groups, youth clubs, parent and teacher associations and teachers would provide a basis to develop further initiatives and, especially in relation to HIV/AIDS, would help schools, communities and individuals to create a supportive environment to protect each other and themselves better. ODA could play a leading role and start with making money available for the discussion of this study with the schools and pupils involved. The experience in operational research being developed in the SYFA programme in collaboration with Universities and the training programmes already developed by the Child and Development Institute, could provide the basis for the development of training programmes in action research methods. 7. Take account of the views of teachers, parents and pupils on how to move forward on AIDS education From the draw and write data, it would seem that children from Primary 6 upwards already have quite detailed knowledge about AIDS and how to protect themselves from it. Several describe different situations in which they might find themselves faced with saying "no" to sex, and appear to have given some thought to their responses. They want to know more and a number of them spontaneously volunteer teachers as a source of information. They also respond to the drama events concerned with AIDS. There is little evidence of commonly held misconceptions - which are clearly evident in the data from other countries. There is a strong focus on the sexual transmission of HIV, and hence on condom use or on the need to change/limit sexual behaviour. There is also an understanding that whilst condoms are better than no protection, they do not afford 100% protection. Underlying much of what is written about sexual contact is some understanding that people who are infected with HIV may well look healthy. From this it can be concluded that AIDS education - whether it is coming from the mass media, from school or from other sources, has certainly been effective in awareness raising. The question now is whether both students and teachers feel ready to take AIDS education further - with a much clearer focus on developing practical skills such as dealing with sexual relationships, making proper use of condoms, and ensuring safe treatment by health personnel. As for the young people themselves, they still have many questions they want answered. During focus group discussions they put forward a number of questions, some of which go beyond standard factual information. The girls in particular are asking for help to deal with problems in the home and with dealing with their relations with men. These questions echo some of the concerns they raise in the "unhappy" data - suggesting a need for paying rather more attention to a more individualised counselling and guidance service in schools, as well as continuing to develop formal classroom teaching around AIDS. Table 11: Questions asked by boys and girls \| Questions asked by boys \| Questions asked by girls \| \|--------------------------------------------------------------\|--------------------------------------------------------------\| \| • proper use of condoms \| • what advice can you give to girls to avoid suffering at home\| \| • advantages and disadvantages of blood testing \| • how can the step mother problem be solved? \| \| • life span of the virus \| • how to get men to stop disturbing them \| \| • AIDS symptoms \| • how to prevent pregnancy \| \| • educator on dangerous cultural practices that can transmit the virus \| • do contraceptive pills cause infertility? \| \| • alternative behaviour to sex \| • advise parents not to mistreat their children: e.g.: "Some children have parents who are very free with their children and give them freedom as if they are big girls. And most of those parents use alcohol. When he is drunk, he will rape her" \| \| • how to know if blood is safe \| \| The debate about who should teach children about sexual matters is already openly aired. Many of the comments offered during the study carry a sense of urgency; in the words of one teacher "time is running out" and "with the high rate of spread and the death toll", all avenues to educate young people in the broadest sense must be exploited. Figure 23 Case study 4: Ghana 4.1 The general context 4.2 Health and AIDS education: Curriculum activities 4.3 The concerns of young people 4.4 Opportunities for development The Ghana study was conducted in October 1993, in collaboration with the Health Research Unit in Accra. The study focuses primarily on Accra, although data was also collected from schools in a rural area between Accra and Kumasi. The policy information is generally applicable to the country as a whole. 4.1 The general context Education and health Ghana has a population of around 15.55 million with 45% aged between 5-19yrs. 67% of 6-11 yr. olds are enrolled in school, and 51% of 12-14 yr. olds. There are over 21,600 schools around the country. The government is increasing the percentage of GDP it is investing in education. There is also substantial donor investment. This is an attempt to overcome several years of severe underfunding, during which the education system reached near collapse. Despite the current activity, there is still a long way to go in re-establishing a functioning education system. Evidence suggests that, especially in rural areas, whilst there may now be buildings, the teaching that goes on within them is at best rudimentary. Turning to health, by far the most serious problem, in terms of out-patient and in-patient statistics, is malaria. Main causes of morbidity include respiratory infection and diarrhoea. Anaemia is the most frequently recorded cause of death, followed by malaria, with pneumonia and diarrhoea also presenting a serious threat. Sexually transmitted diseases are not recorded amongst the top ten causes of either mortality or morbidity. AIDS does not yet feature high on the mortality or morbidity statistics, but is clearly on the increase, and is seen as an important emerging disease. The first case was identified in 1986, with over 11,000 recorded AIDS cases by April 1993. Health education in Ghana: and overview Health education in Ghana is at an early stage of development. This is evident from the limited resources and staff with responsibility for it, the lack of any established, operational policies, and the weak linkage between the health and education sectors. At central level, there are three bodies with some responsibility for health education: - the Technical Co-ordination and Research Division (TCRD) of the Ministry of Health, which has overall responsibility for health education within the ministry. - the Maternal and Child Health/Family Planning wing of the MoH, responsible for the School Health Service - The School Health Programme within Ghana Education Service (GES). There is a School Health Steering committee, with representatives from both health and education. However, it is not clear from this committee where responsibility for action and development lies. TCRD's involvement appears to be limited to a central health education resource at the main teaching hospital in Accra. The School Health Service has more obvious grass-roots contact with schools (although no clear linkage with the education sector at central level). The School Health Programme is very new, and at the time of the study had no staff with specialist training or expertise in health education. The only other evidence of health education activity at regional level is the health education unit in Kumasi (partially funded by ODA). This operates within the Metropolitan Authority. There are few regional health staff and no district staff with special expertise in health education, either in the health or the education sectors. Donor interest and support for health education programmes is limited. UNICEF has some involvement both with curriculum development related to lifeskills in primary education, and in Child-to-Child developments. The ODA teacher education project is working with UNICEF on developments in Child-to-Child. Links between the National AIDS control programme and the education sector. The picture already described of the link between education and health is repeated when looking at the link between education and AIDS control. The National AIDS Control Programme was set up following first case identification in 1986. A medium term plan was prepared. This included objectives related to Information, Education and Communication (IEC), but did not make special reference to schools. It did, however, target 15-30 yr olds, and saw schools as a possible vehicle for its mass media efforts. In addition to the mass media campaign, there have been a variety of other activities focusing on young people including a workshop for Youth Leaders, a materials development workshop for street youth, a street youth education programme, a drama group for AIDS education and an AIDS poem cassette. None of these link directly with schools - focusing as they do on out-of-school youth. Reviews of the National AIDS Control Programme have made specific mention of the lack of co-ordination between the Ministries of Health and Education, noting that teachers have not been well briefed or trained in guidance and counselling. They include in their recommendations the need for a policy on AIDS in schools, and more collaboration between researchers and implementers around AIDS. Health and AIDS education needs assessment for curriculum development Although policy development and co-ordination between the health and education sectors appears weak, there is a growing body of research data available in Ghana on the health of school children, and on the sexual health knowledge and practices (including AIDS awareness) of young people. Some of this has been undertaken specifically to inform the development of school health education. Others provide data which could be used in this way. The current study is the first of which we are aware that focuses on the views and concerns of young people, rather than taking a more "directive" approach, aimed at measuring pre-defined issues. The health survey to inform school health policy was undertaken in 1990. The study involved 1,620 junior secondary school pupils and 104 teachers, from 16 schools, in four different regions. Results indicated poor environmental conditions in the schools, and minimal time devoted to teaching around health issues. The study also noted low involvement of parents in school life. Health issues identified in the study included: dental caries, upper respiratory tract infection, ringworm, head lice and intestinal worms. Solutions suggested included: 1. provision of health information to schools (on diseases, sex, drug abuse, nutrition) 2. community mobilisation to support the school health programme 3. the establishment of health clubs 4. teachers to be trained in health, and health studies to be incorporated into initial training 5. first aid boxes to be supplied to schools 6. parent education on child neglect, child labour and family planning 7. health workers to provide health education in schools. These recommendations have yet to be implemented - but indicate an understanding amongst those concerned of a range of important components in establishing an effective school health education programme. A more comprehensive and systematic study of the health needs of school aged children (both those in and those out of school) is underway. This study is connected to a health intervention programme in schools, concerned with deworming, and micronutrient supplementation. Both studies have been carried out by the Health Research Unit, within the Ministry of Health, in close co-operation with the School Health Programme - forming a useful alliance between the two sectors. On sexual health, there have been studies on the sexual experiences of junior secondary school pupils (Adomako 1991) and adolescent pregnancy. These studies suggest that by 15yrs, at least one third of girls are sexually active, and that education on contraception is very limited. On AIDS, Anarfi14 (1993) carried out a baseline study amongst 15-20 yr. olds in two regions, repeated twelve months later following a mass media campaign. This found awareness of AIDS focused on sexual transmission and condom use. Another study (Ametwee 1993) of universities and secondary schools found high awareness of AIDS prevention, low condom promotion, and a wide range of negative attitudes towards people with AIDS. 14 From: 3rd National Seminar on AIDS. MoH Ghana, September 1992. The sexual health and AIDS studies are available to curriculum planners - but it is not clear whether they are actually used in this way. They certainly provide the potential for increasing the relevance of what is taught, by focusing health education on the health priorities identified. 4.2 Health and AIDS education: Curriculum activities Health education curriculum and textbook content Schooling has recently been restructured into a three tier system of primary (P1-P6), junior secondary (JSS1-JSS3) and senior secondary (SSS1-SSS3). At primary and junior secondary level there are nine subjects taught: Maths, English, Agriculture, Science, Social Studies, Cultural Studies, Ghanaian languages, Life Skills, PE. All teachers teach all subjects. Health education is "integrated" into various subjects, but is most prominent in Life Skills. The most substantial "health input" can be seen in the JSS Life Skills book 3 (see below). \| Life Skills for Junior Secondary Schools - Pupil's books 1-3 \| \|-------------------------------------------------------------\| \| Book 1 \| \| Chap 1: Individual development (inc. puberty, menstruation and moral values) \| \| Chap 2: The food we eat - balanced diet \| \| Chap 4: Food preparation (this is mainly cookery/recipes) \| As can be seen in the Book 3 section on health care, all the elements of the Facts for Life book are incorporated which was achieved with encouragement from UNICEF. There is a lot in here of why you should do healthy things, but rather less on what to do or what to expect. At SSS level, students have seven core compulsory subjects (English, Ghanaian, Science, Maths, Agriculture and Environmental Science, Life Skills, PE). They then choose from 5 broad programmes of specialisation: agriculture, technical, vocational, business, general arts/science - within which there are various options (e.g.: under "science" you can select and combine any three of the following: biology, chemistry, maths, physics). Under the "vocational" home economics option, you select and combine: management in living (which has quite a strong health component), clothing and textiles, food and nutrition, general art. All students receive some input on health in the Life Skills classes, and those taking the vocational options (especially management in living, and food and nutrition) and science options (especially biology) will get further input. Whilst this coverage looks quite comprehensive, and there appears to be quite a substantial amount of health input across the curriculum, a quotation from the Director General of GES on sex education is worth keeping in mind: "Well, we are not talking about it very openly" The sections where sex education and contraceptive education might seem relevant do not address these issues. AIDS education in the curriculum and text books AIDS does get mentioned in existing textbooks - again, as part of the Life Skills course. The box below gives an outline of what is included. Specifics on AIDS: (from Life Skills book 3 chapter 9) On AIDS (about 1 page): - new disease, acquired immune deficiency syndrome, virus, no cure, kills, not spread by shaking hands, spread by sexual contact with infected persons, spread by shared needles, sharp instruments, mother to baby transmission, can look well for 3-5 yrs and still spread the disease, use condoms, stick to one partner. Symptoms: tiredness, cough, weight loss, diarrhoea, recurrent shingles, fever, headache, painless swellings. Precautions condoms, 1 partner, injections only from hospitals, don't share blades/toothbrushes. Health education: Practice Teacher, parent and pupil evidence on how the curriculum is implemented. Taking an overview of the data from: - what teachers say they teach - the issues young people highlight as making them "unhappy/unhealthy" - what parents think their children are taught about health, there seems to be general agreement at grassroots level that issues around personal hygiene, local environmental sanitation, and the basics of diet and food hygiene do receive some attention - all of which appear in the textbooks. These issues also relate to some of the health problems highlighted in the school health survey. Coverage, or reference to major communicable and locally endemic diseases is very limited. It certainly gives no impression that young people are aware that malaria is the major cause of mortality or morbidity in the country indeed when groups were asked what the major health problems in Ghana today are, AIDS and Burueli ulcer were top of the list. This indicates the power of the media - given that these two diseases have received considerable mass media coverage. There is limited sex education provision within the Life Skills textbook, and several teachers mention covering this material with students. However, they acknowledged that coverage is at best superficial and "avoids any practical details". Many teachers express embarrassment about teaching sex education. They note that where possible, external speakers are brought in to give "special sessions". Only one parent mentioned sex education. Amongst the young people, there were clear differences by grade, with only 5% of the primary and junior secondary students referring to issues around sex and pregnancy, as compared with 19% of the senior secondary students. Other issues which are generally recommended for inclusion in school health education programmes get little attention. Drugs (including smoking, alcohol) is referred to in the curriculum, but not mentioned at all by parents, referred to by very few teachers (who again say it is dealt with by outside speakers) and raised by only 18% of the young people. There is virtually no reference to exercise or accidents. The above description covers the traditional "health education" topics one might expect to find within the curriculum. However, it masks an important emphasis in the data from the Ghanaian school students. In many cases, they made a clear distinction between what makes them "unhappy" and what makes them "unhealthy". Under "unhealthy" there tended to be a somewhat cursory list, with a heavy emphasis on personal hygiene. Under "unhappy" came many issues to do with personal relationships, worries and concerns, as well as broader social and political concerns. Whilst some of these were simply presented as lists of ideas, a substantial proportion included quite detailed thought - as can be seen from the images and views presented in the section reporting on The concerns of young people. Teacher, parent and pupil evidence on AIDS education. The "priority" given to AIDS by young people can to some extent be seen in the small numbers (8 students (1.7%)) who specifically referred to it in the initial "unhappy/unhealthy" data. Reviewing the data from teachers, textbooks, parents and the young people confirms the findings of other studies in Ghana that there is a basic level of general awareness about HIV/AIDS. However, all parties also agree that this awareness comes primarily from the mass media effort, and from discussion at home and with health workers, rather than from school. Whilst there is some school coverage, it is minimal. At best, it takes the form of health workers coming to provide one-off sessions. ### 4.3 The concerns of young people #### 4.3.1 General health concerns Table 12: Things which make the children "unhappy and unhealthy" \| Issue \| Frequency \| Percentage (total n =478) \| \|--------------------------------------\|-----------\|---------------------------\| \| Issues related to "traditional" health education topics \| \| \| \| diet \| 214 \| 45% (higher amongst SSS students) \| \| environmental sanitation \| 177 \| 37% (higher amongst SSS students) \| \| diseases (inc. "being ill") \| 147 \| 31% \| \| personal hygiene \| 136 \| 28.5% \| \| food hygiene \| 99 \| 21% \| \| Issues related to personal concerns \| \| \| \| relationships with parents \| 227 \| 47% \| As can be seen from the above summary, personal problems at home and at school present much greater challenges to the young people than do issues around physical health and hygiene. The following quotations by the children illustrate the strength of some of these concerns. Problems at home I would emphasise on the aspect unhappiness. I was very young when my mother died. Since she was the bread winner of the family I lacked certain things that I do not get what I want. Though I have been lucky that I have some benefactors, yet I have spend some of my studies time on them by assisting them in house and workplace as well. (boy 21yrs) Problems at school As a boarder I have been facing many problems especially financially... as a boarder I have to pay some amount of money for the hall prefect immediately we re-open the school which to him means "Buying freedom" for the term. But this is wrong because after giving him this amount he becomes your companion for just a short time and the rest of the term becomes your worst enemy (boy 16yr.) Emotional/sexual worries It is very difficult for my parents to offer me all my needs, for instance [money] for school....because of this I became in love with a boy who at times provide me some of my needs but I have taught that as a Christian it is adultery to God so I have decided to stop and accept what my father gives me because this makes me unhealthy. (girl 21yrs) Figure 24 Problems with parents (Ghana) Issues relating to physical health and personal hygiene There are a lot of things that make me unhealthy. For example if I do not take proper care of my body such like bathing regularly, cutting off hair to prevent lice, easing myself properly to prevent headache and taking good care of pubic hairs that grow around armpits and sex organs. Regular brushing of teeth and caring of finger nails (boy 18yrs) Issues relating to environmental hygiene What makes me unhappy is when my surroundings are dirty and the gutters choked with rubbish and mosquitoes. To see children eating by rubbish and people dumping rubbish around.... Some people don't know what they are doing, but others know and just don't care and that makes me very unhappy. (girl 10yrs) When I pass through some town in Accra the capital of Ghana, I see standing water and also people selling near this water which can cause harm to the human body. I will be very grateful if the Public Water department will take their work serious because the government pays them to see to these things. (boy 16yrs.) Gender and age differences in the data Detailed analysis of the young people's data showed no obvious sex differences. There were some differences in emphasis by grade - with older students talking more about diet, environmental sanitation, and issues around sex and pregnancy. Younger children (primary and JSS level) talked more about problems with parents (64% vs. 49%). One school stood out as very different from the others in terms of the quality and type of response from the young people. This was a Moslem school, in a low income area. This may partly be a problem of the data collection approach used - since the children seemed unable to express themselves as well in writing as those from the other primary schools. It may however also be indicative of a school which does not use the standard school curriculum, but instead places much greater emphasis on religious teaching. Figure 25 Children's pictures reflecting more traditional health concerns: physical health, personal hygiene and environmental hygiene (Ghana) 4.3.2 Children's understanding of AIDS/HIV For the draw and write exercise, young people were asked to say what they knew about AIDS, especially about how they could prevent themselves from catching it. The majority could put forward between four and eight distinct ideas about HIV/AIDS, often including details on prevention, transmission, and on how the disease affects the body. There was no obvious sex difference in responses about AIDS. On the issues raised there were also no apparent age differences - indicating the likelihood that the majority are getting their information from the same (mass media) source. The only apparent difference was in terms of variety of ideas put forward - with senior secondary pupils tending to express a wider variety of ideas than did primary or junior secondary pupils. Table 13: Most commonly expressed idea on AIDS \| issue \| percentage (total n = 478) \| \|----------------------------------------------------------------------\|-----------------------------\| \| AIDS transmitted sexually/prevented through limiting sexual partners, avoiding casual sex, sticking with your partner etc. \| 75.9% \| \| using condoms as a way of preventing AIDS \| 49.8% \| \| ensuring sterile techniques used in hospital/spread through use of contaminated needles etc. \| 36.2% \| \| avoiding sharp things (razor blades, tooth brush etc.)/spread through cuts etc. \| 31.8% \| misconceptions \| 31% describing various symptoms related to AIDS \| 27.4% describing AIDS as affecting a large part of the population/being a very serious problem \| 22.6% Sexual transmission From the data it is clear that the majority are aware that HIV is passed between men and women, and many talk and draw about sexual transmission, for example: If a man sleep with a woman and his friend a new wife and he sleep with that woman and he get a new wife and he sleep with that new woman it can bring AIDS or if the new woman have a old husband and he sleep new woman that one can also bring aids...(etc.).. or if a 20 years old boy went to a dance and he take a girl to dance next time the boy going to other girl to dance, that one also brought aids (boy 12yr..) Figure 26 Coupled with this they talk about sticking to a single partner, avoiding "bad women" or "discos" or "bad men". The boys that go after girl like a frog should stop at once because if they don't stop it will spread all over the world. (girl 10yrs) Some of the drawings clearly show a basic understanding of sexual intercourse. However, discussion groups often showed some confusion about the exact nature of sexual transmission which suggests that the understanding some young people have is superficial, and has either not been explained at all, or only in very general terms. Figure 27 Children's understanding of sexual transmission of HIV (Ghana) Other ideas of transmission Whilst basic knowledge that AIDS is sexually transmitted is clearly evident in what the students say, it is dealt with in very little detail. On the other hand, when it comes to discussing the spread of AIDS through blood contamination and the sharing of sharp things (such as razors), many students go into lengthy stories of somewhat unlikely series of events. This is a very distinctive feature of the Ghanaian data, which is not found to anything like this degree in Uganda or India. This example gives a flavour of what is written: It can be passed on to people when a person has aids and accidentally cut him or herself with a knife and bleeds. When another person without aids also cuts himself on the same knife the person will definitely get aids. Another way is... for example children could be playing if one gets hurt and person is nursing the child has aids and at the same time has a cut on his hand if their blood gets together the child could also catch aids. (Girl) Other circumstances in which children think AIDS is transmitted via non-sexual contact include: - Drinking from same cup...if the fellow is suffering from gum bleeding - If there is an accident and people are wounded and some have this AIDS ...and they lied closer at one place - If one with AIDS is injected and the same injection is used on you will get it - If somebody get AIDS and she use blade to cut her finger and you also go and take that blade and cut yours I think you will get AIDS Figure 28 Children's ideas about non-sexual transmission of AIDS/HIV Misconceptions about how AIDS is spread Almost one third of the sample show evidence of misunderstanding about how AIDS is transmitted. Most of these are related either to basic hygiene and cleanliness, or more specifically on the kind of contact which is "safe" to have with people with AIDS. - Kisses also is one of the ways you can affect by AIDS - When you bath in the river you will get Aids. - When you are stabbed by a knife you will get Aids. - When you are suffering from your eyes it means you have Aids. - If you do not sweep your house you will get AIDS. - If you do not wash your plates you will get aids. - You can get Aids in the car if somebody is sweating and you sit beside that person - You can get it through urinate because if you urinate on the toilet and you sit on it you get it. Prevention: condoms A similar picture emerges when the young people talk about condoms - in the majority of cases, they simply state that condoms protect you from AIDS, but offer no further detail (unlike Uganda, where young people can name many different brands, and frequently provide graphic illustrations of condom use). Where young people do supply more details on condom use, it frequently takes the form of highlighting problems with the safety of condoms. Others come up with suggestions for distribution - possibly indicating that they might use them if they were easy to get hold of. As a man you must always have condoms. They should also give condoms to boys. I think every Friday health educators should come to talk to students about AIDS and sex education. That will let them know what sex is about, and they can take the right decision. They should have right ideas. They must be given condoms." (focus group) Prevention: abstinence I will recommend that every student abstaining from premarital sex which is possible, because personally I'm still a virgin and hope to keep it till my marriage with the help of God. (boy) I have to be careful. If I do not follow men I will not have aid and if I don't have sex with men I will not have aid. (girl 17yr..) Figure 29 How children think they can protect themselves Misconceptions about treatment for AIDS At the time of the study, there were many references on the radio to a herbal cure said to have been found by a Ghanaian, Nana Drobo, who subsequently died. In the programmes, the point was made that if he had indeed found a cure, the recipe had gone with him - and that there is still no cure for AIDS. This point had clearly been taken up by the young people, with a number of them talking about Nana Drobo. Attitudes towards people with AIDS Through much of the data there was indirect reference to people with AIDS, and of the need to avoid having sex with them, or of having anything to do with them. A small proportion (13.6%) took this a step further, expressing particularly hostile views about people with AIDS, saying they should be isolated, or even killed. AIDS patients should be dumped elsewhere. NO, they should be imprisoned with hard labour." (focus group discussion) When someone have aids the person should be kill.. if you are a doctor.. and you have note that the person has aids you give the person should be injected with strong chemical and kill he/she to avoid the spreading of aids. (boy 17yrs) Only 6% expressed the view that AIDS is not spread through normal daily contact with people with AIDS, and the following quotes on caring for people with AIDS were extremely rare: AIDS as far as I know can not be transmitted through: social gatherings, hand shakes, sharing of cups, spoons etc. Those with AIDS need special attention especially love so that they can feel a part of the community and not lived a lonely life and die through grief and suffering. Those who have AIDS need not feel shy but come out and empress this menace so that other people will not fall into such trouble and eventually die. People with aids should be given the chance to go on doing their work so that they do not feel the community has neglected them. (boy 17yrs) Reference to AIDS education: School Only 10% of the sample make any reference to AIDS education. A few talk about the AIDS education they have got through school and from parents - noting in some cases that this has not been as detailed or helpful as it might have been! Aids is something I heard of when I was in the Junior secondary school that was said to be a dangerous disease that whenever someone had it or acquired it, never went free....not able to live longer than five years... Later I came to senior secondary, I met people who told me it was through having sex that the disease is contracted. There and then I asked my father...he confirmed it saying it did not concern my age group. When asked why, he told me that children could only get the disease either from birth, meaning his or her parents, or through disobedience. (boy 17yrs) Reference to AIDS education: media There are also some mentions of media input, both in text and in some of the illustrations, with the slogan: "Don't be careless, get protection". ...a lot of programmes and talks are been held on the TV, radio and especially in our schools and not least from my parents.. (girl 15yrs) An advice is given every day from the television, radio... a man is talking to his child saying my son you may be heading for trouble, have you heard the disease AIDS and the easy way of getting is by chasing sexual partners left and right and the boys said sir but how can a nice looking girls have the AIDS virus and the man said think about it. (boy) Young people's expressed desire to learn more about AIDS There were a number of requests and suggestions for improving AIDS education - with a notable emphasis by the young people on a desire to be able to talk to their parents more openly about such matters: If I get AIDS I will start a programme to educate other people about the disease Aids. I will tell everybody how Aids can be got, and how to protect themselves (girl 11yrs) Parents should have time to talk to their children about this dangerous disease (boy 11yrs) I know that it is easily and widely spread through sex. What I think can be done about this is to educate people especially the youth on the effects of the disease. I said the youth because they are ignorant about everything and want to "enjoy life" as they say. This leads them (especially young girls) to accept proposals from males (especially those who would be giving them money). (girl 18yr.) Other concerns around AIDS Students raise a number of other issues concerning AIDS - for example many talk about what a dreadful disease it is, and how it is affecting many people. HIV testing is raised, but not in detail. The issue of ensuring good practice, in hospital is also present, along with the recommendation of avoiding "quack" doctors. However, the view that health workers are actively negligent, or even guilty of maliciously spreading the disease - which is found in the Uganda data - is absent here. 4.4 Opportunities for development Research and evaluation To date there has been no evaluation of the impact of teaching on health education generally - either in terms of its educational quality, or its impact on health. Rouse\\textsuperscript{15} (1992) carried out a detailed study of the JSS family life education programme (which encompasses family planning, STDs, human biology, teenage pregnancy) in Kumasi. The results of the study indicate that lack of resources, parental disapproval and teachers' attitudes are major blocks to development - with the view that "sex education increases promiscuity" being commonly held. \\textsuperscript{15} Rouse, F. An analysis of the practice of family life education in JSS schools of Kumasi District, Ghana. Msc dissertation, Leeds Polytechnic, June 1992. There have been a number of AIDS knowledge, attitudes and practice (KAP) evaluation studies related to the National AIDS Control Programme. A review of these studies (1988 to 1991\\textsuperscript{16}) indicates a quite high degree of AIDS awareness, but also a number of misconceptions - including belief that AIDS is curable, and that it only affects "high risk groups". \\textsuperscript{16} Health education experiences in the Kumasi district 1991-1994. Kumasi Health Education Project. As the School Health Programme develops, it will be important to use the findings of these studies, along with the needs assessment work which has also been done. Current health education teaching is considered to be sufficient. Teacher and Parental support for health education in schools Teachers stress the importance of hygiene education and express embarrassment and some reluctance about teaching sex education - but agree that it should be in the curriculum. Parents support the importance of hygiene education but again suggest little further. A small number suggested the importance of sex education (none seemed opposed to it). Several, when probed on specific diseases, felt AIDS should be addressed. The following points summarise the main points for consideration if school health education is to be strengthened: - Possibilities for implementation are frequently constrained by resources, and by parental and teacher resistance with the commonly held view that "sex education increases promiscuity". - Teachers and parents agreed that AIDS should be addressed through schools - with age 12yrs being seen as the time to start teaching "in detail". - Teachers accept that sexual aspects of AIDS must be addressed - but feel they need help on this (and prefer to involve health workers) - Parents express a diversity of views, from some happy for their children to be given explicit and practical detail on (for example) condom usage, through to others who feel that information on how to prevent sexual transmission of HIV should not be addressed until later on in senior secondary school - believing that mentioning this earlier will lead to experimentation by young people. Promising options for development It is important to build on and develop existing structures and provision further, rather than attempting further innovation. In particular: - strengthening the School Health Programme (SHP), and developing its link with the Ministry of Health. - ensuring that the SHP makes full use of the available needs assessment data for curriculum planning and materials development. - strengthening the School Health Service, again in close collaboration with the SHP. - ensuring widespread dissemination through both health and education of the results of the school health intervention initiatives, in order to assess its future potential. • addressing a current overemphasis in AIDS education of transmission of HIV through blood (e.g.: open cuts, shared razors at barbers etc.), and to re-focus on sexual transmission. 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(1995) 'Evaluation techniques for the Healthy School Project in Yugoslavia' Health Promotion International, 9 (2), 73-79.	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/4530-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 164, "total-input-tokens": 316551, "total-output-tokens": 69348, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 626, 1 ], [ 626, 1845, 2 ], [ 1845, 2379, 3 ], [ 2379, 2591, 4 ], [ 2591, 4655, 5 ], [ 4655, 6014, 6 ], [ 6014, 8193, 7 ], [ 8193, 10871, 8 ], [ 10871, 13850, 9 ], [ 13850, 16961, 10 ], [ 16961, 16961, 11 ], [ 16961, 17501, 12 ], [ 17501, 19312, 13 ], [ 19312, 20665, 14 ], [ 20665, 22552, 15 ], [ 22552, 24966, 16 ], [ 24966, 27564, 17 ], [ 27564, 29371, 18 ], [ 29371, 31602, 19 ], [ 31602, 34307, 20 ], [ 34307, 36924, 21 ], [ 36924, 39526, 22 ], [ 39526, 41993, 23 ], [ 41993, 43899, 24 ], [ 43899, 46134, 25 ], [ 46134, 49165, 26 ], [ 49165, 51529, 27 ], [ 51529, 53578, 28 ], [ 53578, 55665, 29 ], [ 55665, 57785, 30 ], [ 57785, 60558, 31 ], [ 60558, 62870, 32 ], [ 62870, 65738, 33 ], [ 65738, 68387, 34 ], [ 68387, 70729, 35 ], [ 70729, 72973, 36 ], [ 72973, 75786, 37 ], [ 75786, 77860, 38 ], [ 77860, 80358, 39 ], [ 80358, 83254, 40 ], [ 83254, 86106, 41 ], [ 86106, 87278, 42 ], [ 87278, 88692, 43 ], [ 88692, 90136, 44 ], [ 90136, 92881, 45 ], [ 92881, 95137, 46 ], [ 95137, 97480, 47 ], [ 97480, 99590, 48 ], [ 99590, 100925, 49 ], [ 100925, 101909, 50 ], [ 101909, 103027, 51 ], [ 103027, 104564, 52 ], [ 104564, 104725, 53 ], [ 104725, 106492, 54 ], [ 106492, 108651, 55 ], [ 108651, 109054, 56 ], [ 109054, 109685, 57 ], [ 109685, 110948, 58 ], [ 110948, 112560, 59 ], [ 112560, 114048, 60 ], [ 114048, 115931, 61 ], [ 115931, 118566, 62 ], [ 118566, 119354, 63 ], [ 119354, 121343, 64 ], [ 121343, 123591, 65 ], [ 123591, 124948, 66 ], [ 124948, 126015, 67 ], [ 126015, 127795, 68 ], [ 127795, 128590, 69 ], [ 128590, 129833, 70 ], [ 129833, 130963, 71 ], [ 130963, 131541, 72 ], [ 131541, 132922, 73 ], [ 132922, 134682, 74 ], [ 134682, 136033, 75 ], [ 136033, 137150, 76 ], [ 137150, 139324, 77 ], [ 139324, 140564, 78 ], [ 140564, 141628, 79 ], [ 141628, 143139, 80 ], [ 143139, 146143, 81 ], [ 146143, 148763, 82 ], [ 148763, 150990, 83 ], [ 150990, 154014, 84 ], [ 154014, 156082, 85 ], [ 156082, 157309, 86 ], [ 157309, 158514, 87 ], [ 158514, 159852, 88 ], [ 159852, 162513, 89 ], [ 162513, 164487, 90 ], [ 164487, 166205, 91 ], [ 166205, 169052, 92 ], [ 169052, 171140, 93 ], [ 171140, 173932, 94 ], [ 173932, 175731, 95 ], [ 175731, 178503, 96 ], [ 178503, 180910, 97 ], [ 180910, 182480, 98 ], [ 182480, 183375, 99 ], [ 183375, 184531, 100 ], [ 184531, 185618, 101 ], [ 185618, 187447, 102 ], [ 187447, 188841, 103 ], [ 188841, 191354, 104 ], [ 191354, 192685, 105 ], [ 192685, 194511, 106 ], [ 194511, 197125, 107 ], [ 197125, 199840, 108 ], [ 199840, 202804, 109 ], [ 202804, 205345, 110 ], [ 205345, 205969, 111 ], [ 205969, 207623, 112 ], [ 207623, 210785, 113 ], [ 210785, 213590, 114 ], [ 213590, 215932, 115 ], [ 215932, 218778, 116 ], [ 218778, 220557, 117 ], [ 220557, 223074, 118 ], [ 223074, 225383, 119 ], [ 225383, 227835, 120 ], [ 227835, 230087, 121 ], [ 230087, 232244, 122 ], [ 232244, 232647, 123 ], [ 232647, 234348, 124 ], [ 234348, 234993, 125 ], [ 234993, 235293, 126 ], [ 235293, 236551, 127 ], [ 236551, 239102, 128 ], [ 239102, 240993, 129 ], [ 240993, 241987, 130 ], [ 241987, 242890, 131 ], [ 242890, 243667, 132 ], [ 243667, 245868, 133 ], [ 245868, 246424, 134 ], [ 246424, 246970, 135 ], [ 246970, 249973, 136 ], [ 249973, 252195, 137 ], [ 252195, 254378, 138 ], [ 254378, 256837, 139 ], [ 256837, 260058, 140 ], [ 260058, 261879, 141 ], [ 261879, 261879, 142 ], [ 261879, 263788, 143 ], [ 263788, 266044, 144 ], [ 266044, 269056, 145 ], [ 269056, 271655, 146 ], [ 271655, 273372, 147 ], [ 273372, 275847, 148 ], [ 275847, 278693, 149 ], [ 278693, 280185, 150 ], [ 280185, 280940, 151 ], [ 280940, 283862, 152 ], [ 283862, 285309, 153 ], [ 285309, 286239, 154 ], [ 286239, 288306, 155 ], [ 288306, 290495, 156 ], [ 290495, 293038, 157 ], [ 293038, 295545, 158 ], [ 295545, 297625, 159 ], [ 297625, 298303, 160 ], [ 298303, 299919, 161 ], [ 299919, 301782, 162 ], [ 301782, 303880, 163 ], [ 303880, 304820, 164 ] ] }
be7f3eb910fb8a3d02bb96e2b9426d84953e56ea	Sector Wide Approaches to Education - A Strategic Analysis - Education Research Paper No. 32, 1999, 104 p. Table of Contents EDUCATION RESEARCH Mike Ratcliffe and Murray Macrae (Ratcliffe Macrae Associates) August 1999 Serial No. 32 ISBN: 1 86192 131 4 Department For International Development DEPARTMENT FOR INTERNATIONAL DEVELOPMENT EDUCATION PAPERS This is one of a series of Education Papers issued from time to time by the Education Department of the Department For International Development. Each paper represents a study or piece of commissioned research on some aspect of education and training in developing countries. Most of the studies were undertaken in order to provide informed judgements from which policy decisions could be drawn, but in each case it has become apparent that the material produced would be of interest to a wider audience, particularly those whose work focuses on developing countries. Each paper is numbered serially, and further copies can be obtained through the DFID's Education Department, 94 Victoria Street, London SW1E 5JL, subject to availability. A full list appears overleaf. Although these papers are issued by the DFID, the views expressed in them are entirely those of the authors and do not necessarily represent the DFID's own policies or views. Any discussion of their content should therefore be addressed to the authors and not to the DFID. Table of Contents List of Other DFID Education Papers Available in This Series Abbreviations Executive Summary Introduction: Study purpose and process The impetus for education Sector Wide Approaches Sector Wide Approaches: Conceptual issues 1. Introduction: Study Purpose and Process Study purpose Study process 2. The Impetus for Education Sector Wide Approaches Disillusionment with existing approaches Questions of growth Changing policy environments What might make a difference Planning the sector Taking a global view Entry points: When and how to start 3. Sector Wide Approaches: Conceptual Issues Defining Sector Wide Approaches (SWA) Different forms of financing instruments Project aid and SWA Programme aid and SWA SWA models SWA: Other sector comparisons SWA and the private sector Enabling broader community development SWA SWA: Perceived advantages 4. Funding Agencies: Education Policies, Strategies and Approaches DFID Evolution of DFID policy/strategy Implications for design/appraisal processes Broad DFID strategic directions Overview of current DFID approaches Bilateral funding agencies: Issues and strategies European Union initiatives Bilateral funding agencies that are uncertain about SWA The lending banks The UN agencies: Strengthening their role 5. Strengths and Weaknesses of Sector Wide Approaches The consultation process Funding agency discussions: Overall findings Impetus for SWA to education Using Government systems SWA: Potential constraints and risks Raising potential 6. New Government-Funding Agency Partnerships Transition towards SWA Statement of intent Collaborative programmes of work Memorandum of understanding Codes of practice Strengthening field monitoring systems Technical assistance: Roles and management Partnership principles 7. Sector Wide Approaches to Education: Lessons Learned Historical perspectives Enabling national ownership/leadership Community consultation Analysis of policy and strategy requirements Design and planning structures: Strengths and limitations Institutional reform and capacity building SWA and decentralisation Strengthening SWA finance/budget planning Strengthening financial management/tracking systems SWA implementation: Management structures SWA: Changing organisation/management cultures Performance monitoring/evaluation system development Some lessons learned Annex 1: Education SWA - A Bibliography Documents not in the public domain Country List of Programmes/Projects Annex 2: Education SWA - Study Informants # List of Other DFID Education Papers Available in This Series \| No. \| Author(s) \| Title \| ISBN \| \|-----\|-----------\|-------\|------\| \| 1 \| Pennycuick, D. \| 'SCHOOL EFFECTIVENESS IN DEVELOPING COUNTRIES: A SUMMARY OF THE RESEARCH EVIDENCE' \| 0 90250 061 9 \| \| 2 \| Hough, J.R. \| 'EDUCATIONAL COST-BENEFIT ANALYSIS' \| 0 90250 062 7 \| \| 3 \| Gray, L. et al \| 'REDUCING THE COST OF TECHNICAL AND VOCATIONAL EDUCATION' \| 0 90250 063 5 \| \| 4 \| Williams, E. \| 'REPORT ON READING ENGLISH IN PRIMARY SCHOOLS IN MALAWI' \| 0 90250 064 3 (See also No. 24) \| \| 5 \| Williams, E. \| 'REPORT ON READING ENGLISH IN PRIMARY SCHOOLS IN ZAMBIA' \| 0 90250 065 1 (See also No. 24) \| \| 6 \| Lewin, K. \| 'EDUCATION AND DEVELOPMENT: THE ISSUES AND THE EVIDENCE' \| 0 90250 066 X \| \| 7 \| Penrose, P. \| 'PLANNING AND FINANCING: SUSTAINABLE EDUCATION SYSTEMS IN SUB-SAHARAN AFRICA' \| 0 90250 067 8 \| \| 8 \| (not issued) \| \| \| \| 9 \| Brock, C. Cammish, N. \| 'FACTORS AFFECTING FEMALE PARTICIPATION IN EDUCATION IN SEVEN DEVELOPING COUNTRIES' \| 1 86192 065 2 \| \| 10 \| Rogers, A. \| 'USING LITERACY: A NEW APPROACH TO POST-LITERACY METHODS' \| 1 86192 070 9 (see also No. 29) \| \| No. \| Title \| Author(s) \| Year \| ISBN \| \|------\|----------------------------------------------------------------------\|-----------------------------------------------\|------\|-----------------------------\| \| 11 \| EDUCATION AND TRAINING FOR THE INFORMAL SECTOR \| McGrath, S. King, K. et al. \| 1995 \| 1 86192 090 3 \| \| 12 \| MULTI-GRADE TEACHING: A REVIEW OF RESEARCH AND PRACTICE \| Little, A. \| 1995 \| 0 90250 058 9 \| \| 13 \| DISTANCE EDUCATION IN ENGINEERING FOR DEVELOPING COUNTRIES \| Bilham, T. Gilmour, R. \| 1995 \| 0 90250 068 6 \| \| 14 \| HEALTH & HIV/AIDS EDUCATION IN PRIMARY & SECONDARY SCHOOLS IN AFRICA & ASIA \| Barnett, E. de Koning, K. Francis, V. \| 1995 \| 0 90250 069 4 \| \| 15 \| LABOUR MARKET SIGNALS & INDICATORS \| Gray, L. Warrender, A.M. Davies, P. Hurley, G. Manton, C. \| 1995 \| 0 90250 070 8 \| \| 16 \| IN-SERVICE SUPPORT FOR A TECHNOLOGICAL APPROACH TO SCIENCE EDUCATION \| Lubben, F. Campbell R. Dlamini B. \| 1995 \| 0 90250 071 6 \| \| 17 \| ACTION RESEARCH REPORT ON REFLECT \| Archer, D. Cottingham, S \| 1996 \| 0 90250 072 4 \| \| 18 \| THE EDUCATION AND TRAINING OF ARTISANS FOR THE INFORMAL SECTOR IN TANZANIA \| Kent, D. Mushi, P. \| 1996 \| 0 90250 074 0 \| \| 19 \| GENDER, EDUCATION AND DEVELOPMENT - A PARTIALLY ANNOTATED AND SELECTIVE BIBLIOGRAPHY \| Brock, C. Cammish, N. \| 1997 \| 0 90250 076 7 \| \| 20 \| CONTEXTUALISING TEACHING AND LEARNING IN RURAL PRIMARY SCHOOLS: USING AGRICULTURAL EXPERIENCE \| Taylor, P. Mulhall, A. \| 1997 \| 1 861920 45 8 \| \| \| Vol. 1 ISBN: 1 861920 45 8 Vol. 2 (Case Studies) ISBN: 1 861920504 \| \| \| \| \| 21 \| GENDER AND SCHOOL ACHIEVEMENT IN THE CARIBBEAN \| Kutnick, P. Jules, V. Layne, A. \| 1997 \| 1 86192 080 6 \| \| 22 \| SCHOOL-BASED UNDERSTANDING OF HUMAN RIGHTS IN FOUR COUNTRIES: A COMMONWEALTH STUDY \| Bourne, R. Gundara, J. Dev, A. Ratsoma, N. Rukanda, M. Smith, A. Birthistle, U. \| 1997 \| 1 861920954 \| \| No. 23 \| Stephens, D. 1998 'GIRLS AND BASIC EDUCATION: A CULTURAL ENQUIRY' ISBN: 1 86192 036 9 \| \| No. 24 \| Williams, E. 1998 'INVESTIGATING BILINGUAL LITERACY: EVIDENCE FROM MALAWI AND ZAMBIA' (Updated and combined reissue of Serial No. 4 & 5) ISBN: 1 86192 041 5 \| \| No. 25 \| Swainson, N. Bendera, S. Gordan, R. Kadzamira, E. 1998 'PROMOTING GIRLS' EDUCATION IN AFRICA: THE DESIGN AND IMPLEMENTATION OF POLICY INTERVENTIONS' ISBN: 1 86192 046 6 \| \| No. 26 \| Rosenberg, D. Sidibé, A. Radebe, T. Amaral, W. Odini, C. 1998 'GETTING BOOKS TO SCHOOL PUPILS IN AFRICA' ISBN: 1 86192 051 2 \| \| No. 27 \| Penrose, P. 1998 'COST SHARING IN EDUCATION' ISBN: 1 86192 056 3 \| \| No. 28 \| Bennell, P. Bendera, S. Kanyenze, G. Kimambo, E. Kiwia, S. Mbiriyakura, T. Mukyanuzi, F. Munetsi, N. Muzulu, J. Parsalaw, W. Temu, J. 1999 'VOCATIONAL EDUCATION AND TRAINING IN TANZANIA AND ZIMBABWE IN THE CONTEXT OF ECONOMIC REFORM' ISBN: 1 86192 061 X \| \| No. 29 \| Rogers, A. Maddox, B. Millican, J. Newell Jones, K. Papen, U. Robinson-Pant, A. 1999 'RE-DEFINING POST-LITERACY IN A CHANGING WORLD' ISBN: 1 86192 069 5 \| \| No. 30 \| Monk, M. 1999 'IN SERVICE FOR TEACHER DEVELOPMENT IN SUB-SAHARAN AFRICA' ISBN: 1 86192074 1 \| \| No. 31 \| Carter I. 1999 'LOCALLY GENERATED PRINTED MATERIALS IN AGRICULTURE: EXPERIENCE FROM UGANA AND GHANA' ISBN: 1 86192 079 2 \| \| No. 34 \| Knamiller G. Fairhurst G. (editors), Gibbs W. Welford G. Wiegand P. 1999 'THE EFFECTIVENESS OF TEACHER RESOURCE CENTRE STRATEGY' ISBN: 1 86192 141 1 \| \| No. 35 \| McKay V. Treffgarne C. (eds) 1999 'EVALUATING IMPACTS' ISBN: 1 86192 191 8 \| \| No. 36 \| Alemna A. Chifwepa V. Rosenberg D. 1999 'AFRICAN JOURNALS - AN EVALUATION OF THE USE MADE OF AFRICAN-PUBLISHED JOURNALS IN AFRICAN UNIVERSITIES' ISBN: 1 86192 157 8 \| OTHER DFID EDUCATION STUDIES ALSO AVAILABLE Swainson, N. 1995 'REDRESSING GENDER INEQUALITIES IN EDUCATION' Wynd, S. 1995 'FACTORS AFFECTING GIRLS' ACCESS TO SCHOOLING IN NIGER' Phillips, D. Arnhold, N. Bekker, J. Kersh, N. McLeish, E. 1996 'EDUCATION FOR RECONSTRUCTION' Rosenberg, D. 1996 'AFRICAN JOURNAL DISTRIBUTION PROGRAMME: EVALUATION OF 1994 PILOT PROJECT' Jessop, T. 1998 'A MODEL OF BEST PRACTICE AT LORETO DAY SCHOOL, SEALDAH, CALCUTTA' All available free of charge from DFID Education Department, 94 Victoria Street, London SW1E 5JL ## Abbreviations \| Abbreviation \| Description \| \|--------------\|-------------\| \| ADB \| Asian Development Bank \| \| ADEA \| Association for Development in Education in Africa \| \| AfDB \| African Development Bank \| \| AMO \| Aid Management Office(s) \| \| ARM \| Annual Review Mission \| \| ASIP \| Agriculture Sector Investment Programme \| \| BESDP \| Basic Education Sector Development Plan \| \| BESIP \| Basic Education Sector Investment Plan \| \| BME \| Benefit Monitoring and Evaluation \| \| CAPE \| Centre for Analysis of Public Expenditure \| \| CDB \| Caribbean Development Bank \| \| CBO \| Community Based Organisation(s) \| \| CIDA \| Canadian International Development Agency \| \| CSR \| Civil Service Reform \| \| DAC \| Development Assistance Committee \| \| DANIDA \| Danish International Development Agency \| \| DEO \| District Education Officer \| \| DFID \| Department for International Development \| \| EC \| European Commission \| \| EMIS \| Education Management Information System \| \| ESCC \| Education Sector Co-ordinating Committee \| \| ESDP \| Education Sector Development Programme \| \| ESIP \| Education Sector Investment Plan \| \| ESIP \| Education Strategic Investment Plan (Uganda) \| \| Abbreviation \| Full Form \| \|--------------\|-----------\| \| ESSP \| Education Sector Strategic Plan \| \| EU \| European Union \| \| GDP \| Gross Domestic Product \| \| GTZ \| German Technical Co-operation Agency \| \| HDI \| Human Development Index \| \| HQ \| Headquarters \| \| IADB \| Inter-American Development Bank \| \| IMG \| Implementation Monitoring Group \| \| ITWG \| International Technical Working Groups (health) \| \| JICA \| Japanese International Co-operation Agency \| \| JRMI \| Joint Review Mission \| \| MoE \| Ministry of Education \| \| MoF \| Ministry of Finance \| \| MoU \| Memorandum of Understanding \| \| MTBF \| Medium Term Budget Framework \| \| MTEF \| Medium Term Expenditure Framework \| \| NGO \| Non-Governmental Organisation(s) \| \| NORAD \| Norwegian Agency for Development \| \| ODA \| Official Development Assistance \| \| ODA \| Overseas Development Administration (now DFID) \| \| ODI \| Overseas Development Institute \| \| OECD \| Organisation for Economic Co-operation and Dev't \| \| OECF \| Overseas Economics Co-operation Fund (Japan) \| \| PAP \| Programme Action Plan \| \| PDR \| People's Democratic Republic \| \| PER \| Public Expenditure Review \| \| PIM \| Programme Implementation Manual \| \| PIU \| Programme/Project Implementation Unit \| \| PMU \| Programme/Project Management Unit \| \| PNG \| Papua New Guinea \| \| Acronym \| Description \| \|---------\|-------------\| \| PRISFAC \| Primary School Facilities \| \| RWSS \| Rural Water Supplies and Sanitation \| \| SAP \| Social Action Programme \| \| SAPP \| SAP Project \| \| SASP \| Sector Adjustment Support Programme(s) \| \| SBS \| Sector Budget Support \| \| SDL \| Sector Development Loan(s) \| \| SDP \| Sector Development Plan(s)/Programme(s) \| \| SFG \| School Facilities Grant \| \| SIDA \| Swedish International Development Agency \| \| SIP \| Sector Investment Plan(s)/Programme(s) \| \| SPRED \| Strengthening of Primary Education \| \| SSDP \| Social Sector Development Plan \| \| SSP \| Sector Support Programme(s) \| \| SWA \| Sector Wide Approach(es) \| \| TA \| Technical Assistance/Assistant(s) \| \| TC \| Technical Co-operation \| \| UN \| United Nations \| \| UNDP \| United Nations Development Programme \| \| UNESCO \| United Nations Education and Science Organisation \| \| UNICEF \| United Nations Children's Fund \| \| UPE \| Universal Primary Education \| \| USAID \| United States Agency for International Development \| \| WB \| World Bank \| Executive Summary Introduction: Study purpose and process The impetus for education Sector Wide Approaches Sector Wide Approaches: Conceptual issues Funding agencies: Education policies, strategies and approaches Strengths and weaknesses of sector wide approaches New Government-funding agency partnerships Sector Wide Approaches to Education: Lessons learned Introduction: Study purpose and process Despite the growth in the planning and implementation of sector wide approaches (SWA) to education, debate currently tends to be at the level of general discussion rather than being focused on specific operational issues and the resolution of Government-funding agency tensions. To move the debate forward, DFID Education Division commissioned this study in September 1998. Its purpose was to address issues relating to the nature of SWA, their relevance to poverty reduction targets and their general modus operandi. Its intended audience are those involved with educational development, including providers and recipients of technical and financial support. Most current education SWA are at the planning or early start-up stage. Accordingly, it is too early for this study either to advocate SWA as a panacea or to be a handbook. Its aim is to examine whether a SWA (particularly the SWA process) is more likely to contribute to effective education development partnerships. Individual country judgements are critical, often involving complex political, strategic and tactical assessments. The study investigates whether a SWA better informs these judgements and contributes to more effective education design/appraisal processes. The study process has been as comprehensive as time and resources allow, including reference to SWA-related literature, analysis of the views of key informants and some field visits. The findings also draw on the authors' direct involvement in a number of SWA in Africa, Asia, Caribbean and Pacific. Perspectives on other sectors (e.g. health, agriculture) and cross-cutting disciplines (e.g. institutional, economic, social) were gained from directions provided by a DFID inter-disciplinary steering committee and from many other informants. There are two caveats: education programme designs often necessitate subtle policy and institutional judgements not easily captured through case study analysis and interviews; country situations and education support programme processes are increasingly fluid and dynamic. In some instances, therefore, the following analysis can represent only a snapshot. The impetus for education Sector Wide Approaches The main driving force behind SWA is Government and funding agency dissatisfaction with the impact of education sector outcomes on poverty reduction. The study indicates that: - the correlation between GDP per capita and education indicators is not very strong; • poverty reduction and better education standards have less to do with education spending volumes and more to do with spending effectiveness; • effective spending necessitates real commitment to reform, willingness to make hard choices affecting strong vested interests and a capacity to make open and transparent managerial decisions and to improve institutional quality; • education aid, like other sector support, is more likely to be effective in a strong policy and macro-economic environment, incorporating the views and interests of civil society and the private sector; • countries with prolonged political or bureaucratic histories that appear suspicious of open debate (e.g. Ethiopia, Tanzania, Indo China) are amongst those with the poorest education indicators; • ironically, countries emerging from conflict (e.g. Rwanda, Uganda Cambodia) may be in a stronger position for speedy reform and improvement. The broad message is that effective education aid cannot be achieved overnight nor in sectoral isolation. In education, as in other sectors, effective reform needs champions with long-term vision. It is necessary to nurture these reformers, who may come from outside the sector, through exposing them to successful innovations elsewhere. Therefore, the use of political and professional networks is critical. Commitment to macro-economic stability, effective governance manifested through realistic sectoral expenditure frameworks and open dissemination of education information are equally important. ISSUES TO EXPLORE 1. The formulation of 15 to 20-year education reform perspectives, including linkages with long-term expenditure projections and public service/local Government reforms; 2. Nurturing new capacity building initiatives and programmes; 3. Promotion of the capacity building of international and regional political/professional networks (e.g. regional development banks, prestigious UN agencies and regional education ministers' conferences) as part of championing reforms. Sector Wide Approaches: Conceptual issues An education SWA is essentially a process with three main phases: 1. An initial loose Government-funding agency agreement to work together to make education aid more effective (sometimes encapsulated in a Statement of Intent); 2. A subsequent framework for co-operation, which subsumes individual agendas within a common agenda for education reform; 3. The structuring of a fairly tight operational programme, led and managed by Governments, often expressed in terms of a Memorandum of Understanding, a common Work Plan and, ideally, a Code of Practice, formally agreed by all parties. Common features of an education SWA are: - a sustainable partnership, long-term vision and agreed targets for education reform, incorporating civil society. Government and funding agencies; - a well-defined sector or sub-sector, incorporating macro and sectoral, institutional and financial policies and structures; - a forward looking work programme for medium and long-term sector strategy formulation, preparation of medium to long-term expenditure frameworks, common Government-funding agency management arrangements and capacity building programmes; - strategic negotiation and annual sector performance review mechanisms, jointly agreed between Government and funding agencies. Box (i) encapsulates these and other features of a SWA. BOX (i) MAIN FEATURES OF A SWA: A MINISTER'S VIEW A SWA focuses on: - Policy Objectives... rather than Operational Activity - Programme Outcomes... rather than Project Inputs - Broad budgetary Support... rather than Project Input Accounting - A National Financing Framework... rather than Individual Contracts - Sustained Broad Partnership... rather than Individual 'Deals' - Review of Sector Performance... rather than Project Performance - Common Management Arrangements... rather than Disparate Systems Source: Minister of Education and Sports, Address to Funding Agencies, Uganda, August, 1998 Funding agencies: Education policies, strategies and approaches Policies and strategies of many funding agencies in the past 15 years have shifted towards many of the aforementioned SWA features and characteristics. Effective partnerships are central to development support, incorporating broad-based stakeholders. Pro-poor education strategies are reflected in the growing funding agency priority for basic education support, including countries emerging from civil strife. Policy and strategy development aimed at school improvement is a central policy platform, linked to on-going monitoring and evaluation of current programmes and innovations. Notwithstanding this broad consistency, there are some areas where current design/appraisal processes may be improved: - the longer-term context for short run support programmes could be made clearer in some cases, especially where technical and financial sustainability are concerned; - the assessment of the impact of education programmes on the poor could be better defined; - the assessment of institutional quality and capacity could be more explicit, especially in relation to macro-economic prospects and links with public sector management reforms; - the process of feedback of monitoring/evaluation studies into future strategy could be clearer in some instances; - above all, the long-term nature of the Government-funding agency partnership could be made more explicit. Assessments of the planning/design of education and other sector SWA reveal some key concerns. In many cases there appears to be: - a lack of a long-term strategic vision; • a lack of linkage with public expenditure review (PER) exercises; • a lack of effective poverty assessments for ensuring pro-poor sectoral strategies; • an absence of an integrated institutional development and capacity building strategy, incorporating broader public sector management reforms and incentive structures; • limited attention to the preparation of phased and sequenced sector performance-monitoring frameworks; • limited involvement of community groups in sector policy and planning; • insufficient analysis of the impact of other sectors on student performance and attendance (e.g. health - diarrhoea, malaria, malnutrition; transport - poor rural roads). The nineties have seen a shift in many funding agency education support packages away from comparatively small, often stand-alone education projects towards larger, broad-based system support programmes. In addition, the balance of education aid has shifted towards basic education, with declining support for secondary, higher and technical education. In broad terms, design and appraisal processes have paid growing attention to economic/finance, social and institutional appraisal issues. ISSUES TO EXPLORE 1. Incorporation into funding-agency strategy and policy the main features of an education SWA; this should be reflected in country readiness and programme screening and appraisal criteria; 2. The careful integration of cross-cutting issues into forward country strategy and work programmes; 3. The value of working towards the evolving SDP approach; 4. The adoption of education SWA as a long-term operational strategy, setting out clear milestones and work programmes for the transition; 5. The development of work programmes that include well defined targets based on operational partnership arrangements (e.g. signing Statements of Intent, Memoranda of Understanding, Codes of Conduct); 6. Ensuring that contributions to development are carefully graduated on a country-by-country basis according to projected volumes of assistance, time scales, advisory capacity and the absorption capacity of the countries concerned; 7. The subordination of technical concerns (which were paramount under projects) to broader poverty/social, economic and institutional considerations; 8. Funding Agency recruitment criteria and regional/country deployment policy in the light of evolving SWA to education. Strengths and weaknesses of sector wide approaches Despite a tendency to polarise SWA into two models, the blueprint SIP model and the organic SDP model, in practice all countries develop their own model, an expediency model, that usually combines features of both extremes. The blueprint/SIP model essentially treats the sector as a project with pre-defined activities and inputs, heavy emphasis on activity/input accounting and common financial management procedures. Performance monitoring focuses on sector performance targets at the end of the five-year period. Financing plans are largely pre-defined. In summary, the SIP model appears to be reinventing projects in a more complicated guise. The evolving/SDP model involves less pre-definition and is guided by a longer-term vision of the outcomes and processes of the sector. There is less of a focus on inputs, more on outcomes, linked to annual performance review and strategy adjustment. Budgetary support is tranched against annual review of financing requirements and shortfalls. Capacity building objectives are central to strategy and monitoring. It is not uncommon for an education SWA to exhibit features of both models, particularly during a period of transition to a SWA. On the whole, funding agency attributed projects undermine Government leadership, contribute to policy fragmentation, duplicate approaches, distort spending priorities and insufficiently address institutional development and sustainability issues. The tradition of stand-alone programme implementation units (PIUs) drains capacity of Government's own management systems, creates managerial overload fielding separate funding agency missions and distorts salary scales and other incentives. Programme aid, though more flexible, creates uneven, unpredictable stop/start financing of education reforms with additional difficulties in relating budget support to sectoral outcomes. For Governments, these uncertainties undermine commitment to reform and confidence in the rewards for making hard decisions. Although an effective SWA undoubtedly has the greater potential for addressing the above risks, there remain a number of worries about SWA: - SWA complexity and potential delay in implementation (preparation may take up to 3 years); - funding agency advisers may face disbursement pressure from programme managers (a common problem within the multi-lateral lending banks with rigid loan pipelines); - the multi-disciplinary environment of SWA can undermine education advisers' professional identity (usually lodged in knowledge of the sector) creating uncertainty and caution. ISSUES TO EXPLORE 1. How and when strategic negotiations and annual review processes should take place; 2. Financial commitment and design of modalities; 3. Appropriate incentives and sanctions; 4. The development of realistic conditionalities or 'undertakings' that focus on how SWA negotiation will include the process and procedures for linking achievement of targets to budget releases; 5. Transparency, particularly in the negotiation process and technical and financial monitoring and reporting procedures; 6. operational plans that detail new forms of joint undertakings, especially issues of negotiation process, partnership arrangements and monitoring/reporting procedures, as opposed to narrower sectoral management/implementation issues. New Government-funding agency partnerships There does not appear to be a common formula for the start-up or transition towards an Education SWA. However, two approaches seem to be emerging: 1. a signing on or 'pledging' approach, (e.g. Cambodia, Ghana, and Ethiopia), often, but not necessarily, linked to the preparation of a blueprint SIP and Government/funding agency round table; 2. a more ragged rolling start, (e.g. Uganda, India, Mozambique), often based around a few funding agency allies. A common feature is that Government-funding agency tensions and inter-funding agency tensions grow as the process develops. One major source of tension appears to be when individual funding agencies have to subsume their own agendas and projects within a common agenda and process. A second source is concern over funding agency labelling that is often manifested through anxieties over management and audit of their own funds. Several lessons are emerging on the process of SWA start-up and transition: • strong leadership and openness within Government is essential to maintain confidence in the process; • formal signing up to agreed procedures seems to help secure relations (although surprisingly few examples of such formalities exist at present); • both sides of the partnership can find it difficult to come to terms with what strategic negotiation actually means in practice (and dominant Government partners can present just as much a threat as over-bearing funding agency groups); • the process requires frequent on-the-ground presence with authority for negotiation being ceded to a funding agencies representative; • the need to formalise these processes as quickly as possible in order to secure an effective process to facilitate the transition from a loose agreement to common development agendas, tighter operational instruments and conflict resolution (through country discussions, Government-funding agency consultative groups, the use of instruments such as Statement of Intent, Memorandum of Understanding, Collaborative Work Programme, Code of Conduct). Nurturing these partnerships has significant implications for funding agency staffing arrangements. In instances where technical assistance is used or in-house staff are seconded, Government needs to know the extent to which they are delegated to speak and act authoritatively. At present such authority is unclear and in some instances leads to misunderstandings within Government and the funding agency community. SWA have significant implications for the role and management of consultancy and technical assistance. The way in which SWA have developed to date suggest that many funding agency advisory staff will increasingly act in a consultancy role. The skill mix of consultants is already shifting towards supporting Government policy/strategy analysis, helping to set up performance monitoring systems, designing financial management/tracking systems and facilitating annual review exercises. Increasingly Government is managing consultancy support, rather than using external managing agents. SWA require advisers and long-term in-country technical assistants with broad-based negotiation and professional skills rather than traditional sectoral experience. As is already happening, sourcing of staff will become more diversified, looking increasingly towards international management consulting firms, specialist groups and development institutes rather than relying on university education departments and education authorities. Any role for managing agents or international consortia will depend on their ability to provide new skills and assist in building up Government's capacity to manage/monitor TA support. Sector Wide Approaches to Education: Lessons learned There appear to be roughly 25 - 30 education SWA in progress, mainly in African and Asian countries. Information on developments in South America, Caribbean and Pacific is more patchy. The vast majority of examples remain at design or pre-implementation stages, meaning that lessons learned to date are mostly concerned with design, appraisal and planning issues. ISSUES AND RECOMMENDATIONS TO EXPLORE The following points are in the form of recommendations and are based on wide-ranging experience accumulated in recent years. They may be considered as minimum necessary conditions for SWA and are directed towards funding agencies and their employees. 01. The provision of support for national leadership and champions of reform, including support for (and from) key politicians, sector specialists, community groups and finance ministries; 02. Formulation of a long-term vision and strategy for reform that focuses on changes in service quality and processes, and that is flexible enough to allow for regular strategy adjustment; 03. The management of SWA planning needs through existing governmental structures rather than inventing parallel structures; 04. Supporting Government management systems, through early incorporation of capacity building strategies and outcomes into SWA designs; 05. The development of joint agreements on interim and long-term arrangements for strengthening financial management and monitoring systems; 06. The strengthening of SWA financial/budget planning systems, including setting SWA within a broader MTEF, carefully linking strategic targets to forward budget plans and promoting a sense of budget realism within education ministries; 07. The development of country specific solutions to management problems; 08. The negotiation of procedures that avoid funding agency attribution; 09. The careful development of and support for management processes and capacity building ahead of and during planning and implementation (SWA cannot easily be bolted on to top-down, command and control bureaucracies); 10. The strengthening of education sector performance monitoring systems (not just macro-targets, but service quality indicators, changes in planning/management processes at all levels and regular surveys of service satisfaction with parents and communities); 11. The design of effective incentives for system performance and individuals (linked to broader long-term public service pay policies). 1) Introduction: Study Purpose and Process Study purpose The purpose of this study is to provide guidance to those involved with educational development, including providers and recipients of technical and financial support. In particular the study examines the strengths and limitations of sector wide approaches (SWA) to education sector development. Drawing on current international evidence, the study assesses whether sector wide approaches are more or less likely than other approaches to reach the education development and poverty reduction targets that are set by national Governments and development agencies. An associated purpose is to consider whether SWA (in their various forms and interpretations) provide an effective way of forging strong partnerships with Governments, civil society and the international community in meeting agreed international targets. The study analyses factors such as public sector management, governance issues and multi-sectoral evidence (e.g. health and water supply), that may enable education sector developments to contribute more effectively to poverty reduction. The review draws on current practice and case studies from Africa, Asia, Caribbean, South and Central America and Pacific regions. A more specific objective is to summarise the lessons learned from current official development assistance (ODA) funding approaches to strengthening effectiveness in promoting partnerships and achieving national and international policy objectives. Cross-sectoral linkages and management and organisational development of SWA are discussed. This takes account of a number of evaluation studies and working documents used in the development of education and other SWA. It should be established at the outset that the purpose of the study is not to propose or advocate a SWA as a panacea for reform of broad education strategy and design/appraisal processes. Nor will the study attempt to prescribe a 'road map' for SWA development. As a number of funding agency development policy papers emphasise (Asian Development Bank, 1996, Department for International Development Co-operation, Finland, 1998, Secretary of State for International Development, UK, 1997), detailed approaches need to be determined on a country by country basis. This will involve political, strategic and tactical judgements about the most effective partnerships and approaches to assistance and listening to Governments, civil society and other funding agencies. Nevertheless, it is our expectation that the study will inform these judgements. Finally, it is acknowledged that the conceptual framework for SWA, e.g. sector investment plans (SIP), sector development programmes (SDP), is becoming clearer in some respects, more diffuse in others, especially in operational aspects. Moreover, knowledge and understanding of the practice on the ground of negotiating, planning and implementing education SWA remain in their infancy. A sound understanding requires an intimate knowledge of the policy and institutional environments and the political and organisational histories and cultures in individual countries. The challenge to all aid practitioners will be to listen humbly and learn while avoiding prescriptions and conventional Study process A number of standard approaches for information collection and analysis were used, including review of a number of case study documents, Annex 1, and a survey using a postal questionnaire and semi-structured interviews with key Government and funding agency officials. The study also draws on our own experience and close involvement in recent education sector development planning, including BESIP (Cambodia), ESDP (Ethiopia), ESDP (Tanzania), SSDP (Thailand), ESIP (Uganda). Where appropriate, while working in those and other countries, opportunities were taken to extend the scope of the survey. A list of those consulted is attached at Annex 2. The study was funded by the UK Department for International Development (DFID) and for this reason there is special emphasis on DFID policy and practice in Chapter 4. The development of the study was broadly guided by a multi-disciplinary DFID Steering Committee, including agriculture, economic, education, engineering, health, institutional and social development advisers. As the following pages will reflect, this kind of multi-sectoral and cross-cutting approach is central to optimising aid effectiveness. The intention, therefore, is to present broad views and not to be restricted to narrowly defined technical sector issues. There are two caveats: 1. It is becoming increasingly evident that effective aid for education involves subtle, often difficult, judgements of political will, the commitment of key players to policy reform, the macro-economic policy environment and local management and implementation capacity. Therefore there are dangers in making firm deductions from case study material and selected interviews. 2. The study appears at a time when the development of SWA is currently about to expand quite dramatically. It follows that much of what appears in the following pages may be subject to review as a result of normal change processes. Despite the above, in some instances we draw conclusions where we consider it appropriate to do so; these are likely, however, to benefit from close scrutiny and further investigation. In other cases, it was considered to be more appropriate to raise issues and offer directions for future strategic analysis rather than to attempt to provide answers. The views reflected in this study are those of the authors. Unless otherwise stated, they do not necessarily reflect DFID policy or practice. 2. The Impetus for Education Sector Wide Approaches Disillusionment with existing approaches Questions of growth Changing policy environments What might make a difference Planning the sector Taking a global view Entry points: When and how to start Disillusionment with existing approaches The main impetus behind SWA is the general dissatisfaction of most stakeholders with the impact of aid on poverty reduction and the quality of life of the people in developing countries. "Advances have not been uniform and poverty remains pervasive. We have gone forward and backward over the past 50 years." Clare Short, 26 June 1997 There appears to be only limited correlation, if any, between prosperity, economic growth rates and human development indicators. This can be illustrated by an examination of the differences between Gross Domestic Product (GDP) and Human Development Index (HDI). Where the difference is positive, human development outstrips economic progress as in countries such as Tajikistan (+35), Vietnam (+26), Costa Rica (+27). However, in other countries, such as Namibia (-35), Lao PDR (-23) and Senegal (-26), prosperity has not been raised by improved education and health outcomes. Questions of growth The key question is: what are the underlying causes of these differences? Possible explanations may include differences in leadership and commitment to reform, lack of accountability to civil society in delivering education services, variations in overall health and education spending volumes and poor design and appraisal of aid interventions. At a more sectoral and technical level, the causes may be differences in how policy and strategy reforms are prioritised and sequenced on variable management and implementation capabilities, including poor linkages with other sectoral developments. From a pragmatic point of view, the overriding question is: what are the key levers to pull in order to achieve long-term effective and sustainable education outcomes? And an associated question for this study is: does a SWA provide a better prospect for poverty reduction than other approaches? The apparent absence of strong correlation between economic and human capital development is confirmed by recent studies (Asian Development Bank, 1997; Dollar and Pritchett, 1998). These indicate that initial conditions, geography and resource availability appear to be marginal compared to demographic and broader policy variables, especially sound economic management, saving rates and institutional quality [Box 1]. Pressing questions arise: are these issues being fundamentally addressed?, does an education SWA help to put these important building blocks in place?, and do education sector developments take a sufficiently long-term view when these demographic trends (especially changing dependency rates and household discretionary spending patterns) become pivotal in education policy and strategy reforms? Box 1 EXPLAINING DIFFERENCES IN GROWTH: KEY FACTORS EAST/SOUTH EAST ASIA VS. SOUTH ASIA (1965-1990) An ADB study, Emerging Asia, analysed variables which could explain why East and South East Asia country economic growth rates have been from 2% to 3% higher per annum than those of their South Asian neighbours. This analysis, undertaken by the Harvard Development Institute, reinforces current thinking that policy/institutional/demographic factors weigh heavily in differences between economic growth rates across regions, sub-regions and countries. \| Factor \| Change in Growth Rate (%) \| \|---------------------------------------------\|---------------------------\| \| Policy Variables (Government Savings Rate, Openness, Institutional Quality) \| +2.1 \| \| Demography (Life Expectancy, Workforce Size, Population Growth) \| +0.9 \| \| Initial Conditions (GDP, Schooling) \| -0.3 \| \| Resources and Geography (Endowments, Tropics) \| -0.2 \| \| Predicted Differences \| +2.5 \| Changing policy environments The impetus for the shift towards various forms of education SWA appears to arise mainly from changes in the political and macro-economic environment. For example, in some African countries confidence in the political leadership and strength of macro-economic reforms is a key consideration (e.g. Ghana, Mozambique, Uganda); this reflects the findings of Dollar and Pritchett (1998), In SE Asia (e.g. Indonesia, Thailand), the 1998 economic downturn helped to create a policy environment conducive to policy-based, SWA-type reforms (e.g. Social Sector Development Programmes), led by World Bank and Asian Development Bank. In ex-Eastern bloc countries, the withdrawal of Soviet aid provided an impetus for radical education sector structural reforms, a reflection of the unsustainability of previous systems. Recent examples include education SDPs in Mongolia and Uzbekhistan led by ADB. In some instances, political and civil reforms and relatively weak institutions (e.g. in Cambodia, Lao PDR, Vietnam) appear to have increased the impetus for radical education reforms. Paradoxically, states emerging from conflict (e.g. Cambodia, Rwanda), given positive leadership, may offer good environments for sustainable education reform programmes [Box 2]. In contrast, as Fig 2.1 shows, Governments that stay in power for too long appear to lose their capacity for successful reform, non-elected Governments performing less well than those that are elected. Box 2 EMERGING FROM CONFLICT: WHERE TO START? A body of experience is emerging oft how best to assist countries emerging from conflict and sodal upheaval. The broad strategy is to assure predictable macro-economic conditions as a platform for pro-poor sectoral development programmes. For example, in Cambodia the funding agency 'community' focused on strengthening financial and budget planning, development of a medium term expenditure framework and public investment programme through the Cambodia Council for Reconstruction and Development. In Rwanda DFID has provided assistance with the Public Expenditure Review focusing on the social sectors through the Ministry of Finance. It should be noted, however, that this strategy may possibly have an adverse effect on local ownership and longer-term sustainability. It is clear that to support education policy reforms requires a mix of ideas and finance. In addition, they will require countries to raise their effectiveness by implementing the principles of professionally managed Government: i.e. the development of a national plan, political will and commitment, a decentralisation policy, political accountability and sound resource management (Commonwealth Secretariat, 1997). "... we will only eliminate poverty through strong and effective states" Clare Short, 30 June 1997 What might make a difference An important finding is that the factors that make a difference for overall growth seem to lie as much with central Government decisions as with sectoral Ministry interventions. Dollar and Pritchett (1998) suggest that improved education and health reforms correlate with a good policy environment that is underpinned by effective institutions and capacity building [Box 3]. The view that 'aid only works where the policy environment is sound' (Foster, 1999) challenges the received wisdom that improved social sector performance, especially in education and health, necessarily involves increased spending and/or additional aid flows. It remains to be seen whether or not SWA (or more traditional approaches) sufficiently address these issues. BOX 3 ASSESSING AID: OPTIMISING IMPACT - Financial aid works best in a conducive policy environment; broad growth and sectoral outcomes correlate most strongly with policy and institutional variables. - Health and education outcomes do not correlate strongly with GDP sectoral shares, but rather policy commitment and institutional quality. - The main value of development project assistance is to strengthen policy and commitment, alongside key institution building efforts for improved service delivery. - A positive enabling environment can crowd in private investment in social sectors, bad policies crowd out participation. - Commitment to policy reforms is more likely in democratically elected Governments, especially in the early years of office. - Stimulating debate in civil society and information dissemination about policy is one way for development assistance to influence policy and governance reform. - Project funding is not necessarily translated into increased spending on the sector, sub-sector or specified activities - money is fungible. - Project success is more likely with strong beneficiary participation in planning, implementation and monitoring. - Technical assistance focused on influencing policy/strategy reform and institution building has more impact than project design/planning TA. Source: Dollar and Pritchett, 1998 Another important finding, noted in Box 3, is that effective aid can actually 'crowd-in', or encourage, private investment (including investment from the social sectors) as long as there exists an effective enabling environment (especially the establishment of quality standards and regulation and monitoring systems). In contrast, there is a danger that without such an environment, external assistance crowds out private investment, reinforcing Government's provider role. This finding argues for greater focus on institutional and governance issues, including programme designs that capture greater community/civil society participation in planning, implementation and management. A critical issue is whether an education SWA sufficiently addresses these issues, especially in the light of dramatic demographic changes projected over the next 20 - 30 years. The challenge will be to take forward education sector development in difficult environments, usually where needs and inequities are greatest. It appears that a number of strategies may support this process. An important factor will be to identify key players willing and able to champion and influence reform, alongside offering real incentives (possibly through aid) to do so. An associated feature is a vision of long-term system change, focusing on outcomes and processes rather than on short-term activities and inputs. Often resistance to change is due to lack of knowledge about what might work. Providing opportunities for key players to share ideas with and learn from others (particularly from regional neighbours and neutral informants) builds the confidence to carry out reform. Experience and evidence suggest that engagement of civil society in the reform process provides lasting results. However, many of the countries with the poorest social indicators have political cultures that are suspicious of private sector policy in education provision (e.g. Indo China). In others, (e.g. Rwanda, Sierra Leone), civil society has currently (early 1999) broken down, yet, paradoxically, such countries may provide real opportunities for reform. Countries with similar recent histories have often shown remarkable resilience in keeping rudimentary education services going (e.g. Cambodia, Ethiopia, Uganda), demonstrating latent community commitment and capability. Countries in which educational reform is more difficult may be those where strong, bureaucratic, regulating cultures persist (e.g. Tanzania), whose function is to protect central, organisational vested interests. Planning the sector A further stimulus for the adoption of an education SWA is that it provides an opportunity for whole sector planning that ensures that broad national goals and issues such as poverty reduction, improved governance and civil service reform, decentralisation, local Government and community development, equity/gender, privatisation can be factored into and financed within a comprehensive national education framework. In many countries there has been a recent history of education planning and financing apparently stumbling from one crisis to another and where more significant issues are lost or not catered for in a systematic way. In contrast, education SWA are underpinned by broad national goals. For example, the Uganda ESIP is predicated upon Uganda's Vision 2025 Poverty Eradication Plans. In effect this means that education planning and implementation becomes accountable in terms of equity improvement, removal of disadvantage and the raising of quality. In connection with this, it is notable that at the April 1999 ESIP Review a presentation by the Uganda Participatory Poverty Assessment Project, Perspectives on Communities on Education, 1999, was made as part of a Ministry of Finance input (an example which highlights cross-Ministerial participation, another strength of a SWA). Likewise, poverty assessment formed part of Tanzania's recent SDP appraisal (April 1999). Returning to the concern for poverty issues raised at the beginning of this chapter: a coherently planned SWA makes it possible to ensure that education-related poverty issues such as: - education for basic skills as a poverty reducer; - zero and low levels of education as indicators of poverty; - the real cost of education in relation to opportunity cost benefits; - poverty factors (e.g. malnourishment, illness) that cause low educational attainment; - education factors (e.g. cost to parents) that cause poverty; - poverty as a barrier to taking up educational opportunities; - negative returns for personal investments in education. Bird (1999) can be addressed at a national level within the education framework. Taking a global view A broader issue arises from a growing recognition that trying to improve education services in isolation is unlikely to optimise impact. Social and community cultural patterns and behaviours may create unforeseen barriers. For example, family demands on children to undertake seasonal or domestic work often undermine regular school attendance. Malaria prevalence and high incidence of diarrhoea (due to unsafe water and sanitation) are frequent causes of irregular school attendance and under-performance. Difficult terrain and absence of good roads cause erratic attendance of both pupils and teachers. These argue for a multi-sectoral approach to education development, especially integrated health and education planning, where primary school networks can be used to deliver effective 'messages' and stage interventions. A key question remains: what kind of assistance modalities can achieve these outcomes and overcome barriers most effectively? A social fund approach (Box 4) may provide a solution. BOX 4 SOCIAL FUNDS: A MULTI-SECTORAL MODALITY? Some Asian, South American and West African countries (e.g. Vietnam, Ecuador, Senegal) have adopted 'social funds' as a means of creating a critical mass of cross-cutting social-sector support initiatives. The majority operate on a demand-basis with small-scale health, education and water-supply initiatives identified and implemented by community groups. The role of Government is then to enable and monitor. The advantages of the social-fund approach are the broadening and deepening of implementation capability, together with direct community involvement. A potential disadvantage is weak linkage with broader sectoral and poverty alleviation frameworks unless multi-sectoral co-ordination mechanisms are established in advance. Entry points: When and how to start As with most aspects of SWA, is not yet possible to generalise when and how an education SWA should start. In practice the initial driving force appears to arise from a build up of dissatisfaction and frustration with the status quo and an agreement to re-visit education planning, including financial planning. The trigger for a clear movement towards a SWA is almost invariably a political decision requiring strong national leadership and understanding at ministerial level or higher. What is clear is that after the decision is taken, start-up and continuation depend on a number of issues: - political acceptability and commitment; - positive macro-level financial conditions; - sector level financing, particularly recurrent budget mechanisms; - resource identification, needs and utilisation; - identification of stakeholders and partnership arrangements; - management arrangements; - institutional strengthening and capacity building. It will be observed that these are mostly general issues of institutional process: issues that are not specifically educational in nature. One of the aims of the following chapters is to illuminate this process within the education context. Start-up issues are further discussed in Chapter 6. 3. Sector Wide Approaches: Conceptual Issues Defining Sector Wide Approaches (SWA) Different forms of financing instruments Project aid and SWA Programme aid and SWA SWA models SWA: Other sector comparisons SWA and the private sector Enabling broader community development SWA SWA: Perceived advantages Defining Sector Wide Approaches (SWA) The current movement towards SWA arose in response to a new development agenda and strategy, in part derived from features already perceived within policy-based programme lending and project assistance. Previously, development practice focused mainly on economic growth. Today there is growing recognition that better incomes need to be linked to improved quality of life, including reduced poverty, better education, improved health and more effective institutions. Cassels (1997), writing about the health sector, identifies properties of SWA that apply equally to other social sectors, particularly education [Box 5]. BOX 5 A SECTOR WIDE APPROACH ⇒ A sustained partnership, led by national authorities, involving different arms of Government, groups in civil society and one or more funding agencies ⇒ With the goal of achieving improvements in people's health and contributing to national human development objectives ⇒ In the context of a coherent sector, defined by an appropriate institutional structure and national financing programme ⇒ Through a collaborative programme of work focusing on: - the development of sectoral policies and strategies, which define the roles of the public and private sector in relation to the financing and provision of services and to provide a basis for prioritising public expenditures - the preparation of medium-term projections of resource availability and sector financing and spending plans, consistent with a sound public expenditure framework - the establishment of management systems, by national Governments and funding agencies, which will facilitate the introduction of common arrangements for the disbursement and accounting of funds; procurement of goods and services and monitoring sectoral performance - institutional reform and capacity building in line with sectoral policy and the need for systems development ⇒ with established structures and processes for negotiating strategic and management issues and reviewing sectoral performance against The International Working Group on Health SWA (1997) has attempted to analyse the theme of sustained partnership through SWA. An analysis by Asamoa-Baah and Nabarro (1998) observes that development patterns reveal three different views of SWA and its processes: a) SWA as a new way of working together, in order to improve working relationships, to enhance the efficiency of development assistance and, ideally, to improve relations with national authorities; b) SWA as a new framework for development assistance, including a process for funding agencies and national authorities to establish agreed plans of action rather than following separate agendas; c) SWA as a new instrument for development assistance, promoting sector reforms through specific, commonly agreed operational commitments (e.g. a SIP - Sector Investment Programme) and devolving greater authority to national Governments in resource decisions. In practice, there is no right or wrong SWA. What is clear, however, is that the process is currently evolving in different ways in different places and has to account to different circumstances (EU Horizon 2000, October 1996 and November 1997). Type (a) above represents a jumping off-point, based on partnership principles, with evolution to type (c) dependent on in-country dialogue between development partners. Any evolution to type (c) will only take place effectively if there is openness and trust on all sides with no hidden agendas, developing into an operationally useful assistance instrument. In a study commissioned in 1997 by the UK Overseas Development Administration (now DFID), the Oxford Policy Management Group defined the elements of a Sector Investment Programme as: - a strategy for the sector; - a Government expenditure programme; - a management framework providing for common implementation procedures; - funding commitments from funding agencies and recipients. This definition emphasises another major attribute of a SWA: the need for an agreed financing and budgeting framework. For most practical purposes this manifests itself in a projection of how support will be absorbed within the national budget through a Medium Term Budget Framework (Penrose, 1998). Moreover, since the budget belongs to Government, "the recipient is in the proverbial driver's seat" (Gould, Takala and Nokkala, 1998). Different forms of financing instruments As mentioned in Chapter 2, a prime impetus behind SWA is a general dissatisfaction with existing project and programme assistance modalities. Previously, Government-funding agency dialogue predominantly focused on macro-economic issues and/or narrow education sectoral concerns with little linkage between the two. Discussions now centre upon improved public expenditure management and the role of Government in service provision (including education), rather than structural adjustment. Alongside, there is growing recognition that the effectiveness of individual projects and programme support is constrained by the political, economic and institutional environment. Project aid and SWA The limitations of stand-alone, discrete project assistance are well documented. A proliferation of projects can lead to policy and strategy fragmentation, duplicated approaches leading to waste, Government-funding agency disagreements over spending priorities and weak sustainability of outcomes. Additional arguments against project assistance include lack of national ownership, managerial overload through servicing funding agency missions, creation of non-typical and not-easily-replicated 'islands of excellence' and uncertain, often slow, disbursement of aid. The tradition of Project Implementation Units (PIU) contribute to distortions in staff incentive packages and tendencies for over-centralised planning, management and implementation processes, often inconsistent with broader public service and local Government reform polices, plans and pay norms. Nevertheless, these negatives do not constitute an argument that projects have no place in a sector wide approach. The key issue is whether and when traditional project assistance is most appropriate. Equally, it is vital that any project assistance is consistent with broad education policy and budget frameworks and does not conflict with agreed Government policies and strategies. In particular, projects should not be used to avoid dealing with central issues such as weak Government, budget and management systems, including funding agency co-ordination. In particular, projects should not be used to allow individual funding agencies to follow their own agendas, nor should secondary and higher education projects be used by Government to avoid hard sectoral financing decisions. In such cases, the acid test for a Government embarking on a SWA is, "Would you say 'no' to a project?" (Tuomas Takala, in discussion, 1998). Programme aid and SWA While programme aid has the potential advantages of more flexibility, rapid disbursement and less distortion of annual budgets, it does have limitations in a sector context. Experience points to the difficulty in correlating general budget support with achievement of education sector performance targets due in part to problems of fungibility - the movement of money within budgets - and tracking. Linking programme support only to macro-economic targets (rather than sectoral ones) can create difficulties arising from uneven, stop-start financing of education reform plans. Such budgetary uncertainties can undermine the confidence of sector planners and managers in undertaking continuous longer-term planning, can interfere with programme implementation and distort forward education budget plans. These limitations have led to a new generation of financing instruments, which recognise the need for less distortion in forward budget planning, provide longer-term assurances of support and acknowledge the need for selective recurrent budget support. Such instruments include World Bank sector investment programmes (SIP), Danish and Swedish sector support programmes (SSP), UK and Netherlands sector budget support (SBS), counterpart funds from European Union structural adjustment support programmes (SASP) and Asian Development Bank sector development loans (SDL). While these developments facilitate implementation of the broad features of a sector wide approach, they still remain largely independent of broader sector policy and strategy frameworks, institutional considerations and the much more comprehensive working arrangements needed for a SWA. SWA models It is possible to identify emerging models for education SWA. The first model is best characterised as a Sector Investment Programme (SIP). A SIP essentially treats the sector as a large-scale project with pre-defined activities over a limited lifetime (often five years) linked to a project-style management blueprint that is adopted by all stakeholders. The advantages of this approach are broad familiarity (a project writ large), limited need for management change and continued use of traditional financing instruments (a tool that satisfies lenders). The primary disadvantages of the SIP model are: - a danger that the weaknesses of a project approach could be reinvented; - limited opportunities for continual strategic review and/or negotiation; - little incentive for regular monitoring/review. Moreover, since SIPs, like all SWA approaches, are relatively untried, experience with them 'is quite limited' (Bhatia and Okidegbe, 1997). The second model can be characterised as education sector and budget support: the Sector Development Programme (SDP) model. The main features of a SDP are: less pre-defined activities, a greater focus on outcomes and broad strategic frameworks with less earmarking of funding agency support programmes. The advantages of this model are more flexibility in responding to changes in the financing outlook, facilitation of regular strategic reviews, reduction in funding agency attribution and consequent opportunities for greater Government leadership. The disadvantages and potential risks are: - uncertain Government leadership capability; - the need for new financial management and tracking systems; - unpredictable disbursement patterns allied to weak absorptive capacity; - resistance by vested interests (e.g. project unit staff) and, as with SIPs, - Government and funding agency uncertainty arising out of unfamiliarity and lack of experience of the process. A potential for tension between these two models is emerging in several countries, especially those accommodating budget support programmes within a SIP. For example, in Ethiopia there is a debate over the pragmatic arrangements of having a 'three-track model' of financial support (budget support, project support through Government, project support outside Government) set in place to accommodate funding agency reluctance to support financial tracking systems that they themselves have not designed. In the Nepal and Ghana education SDPs/SIPs, the debate focuses on splitting funding agency assistance between budgetary and project support. In Tanzania's ESDP and Uganda's ESIP, the point at issue is how much detailing of programmes is required in advance of support. A cross-cutting issue is the uncertainty over the capability of Government financial management and audit systems to handle non-earmarked funding agency support. This is not to say that these tensions cannot be resolved [Box 6]. The challenge will be to design transitional arrangements towards complete use of Government systems, alongside mutual trust in their use and effectiveness. BOX 6 RESOLVING SIP/SDP TENSIONS: BUILDING MUTUAL TRUST - Open exchange of views on concerns over Government's management systems (e.g. through Joint Steering Committees and annual review exercises) - Gradual dovetailing of existing project assistance within agreed policy/strategy frameworks and targets - Agreed timetables for phasing out of multi-track financing mechanisms, including funding agencies with greatest current uncertainties (e.g. GTZ, JICA, CIDA) Early institutional assessments and capacity building strategies for ESIPs/ESDPs, including agreed capacity building outcomes and targets Possible use of pre-investment capacity building strategies and activities, focusing on financial tracking and management systems Selective, limited support programmes alongside capacity building to maintain Government confidence in ESDP approach, with jointly agreed risk management strategies Source: Bhatia and Okidegbe, 1997 It would be misleading to leave readers with the impression that education SWA can be neatly categorised within one of the above models or another. In practice, it would be more accurate to say that each country develops its own Expediency Model that contains elements of SIPs and SDPs, not to mention traditional projects, especially during inception. SWA: Other sector comparisons Gould, Takala and Nokkala (1998) note that SWA are found predominantly in the social and infrastructure sectors. Their study shows that in Africa, the spread of SDPs/SIPs is in social sectors (48%), infrastructure (38%) and agriculture (14%). This pattern is similar for Asian Development Bank support programmes in Asia, where the majority of SWA are in the health, education and energy sectors. Several issues arise from these patterns. Firstly, SDPs/SIPs are predominantly in those sectors where the public sector role is dominant. There is a danger that, without adequate involvement of the private sector, NGOs and local communities, SDPs will reinforce centralisation and Government administrative structures when the objective is the reverse. A recent analysis in Indo China (Asian Development Bank, 1999) also suggests that the channelling of external assistance through the central Government budget is reinforcing centralisation and acting as a barrier to decentralisation. SWA and the private sector A second issue is that there is a tendency to overlook private contributions to social sector development and financing, when, for example, the private financing of health and education services can be as high as 70% - 80% in certain subsectors and regions. The marginalisation of the private sector and local communities in education is in danger of being exacerbated by an international inclination to focus on basic education, i.e. subsectoral SIPs/SDPs (e.g. Zambia BESIP, Nepal BESIP). There is a danger that the growing frequency of BESIPs reflects Governmental unwillingness to address key financing and institutional reforms associated with secondary, technical and higher education, an unwillingness often fuelled by external agencies who regard these subsectors as being of less importance. The dangers in the health sector are similar where resolving institutional and financing issues associated with curative services are vital to sustainable reforms. Cassels and Janovsky (1998) note the growing school of thought that in developing a health SWA one of the main issues is to 'broadly decide the kinds of services that should be privately financed'. A lesson that should not be lost on education. Recent evaluations of agriculture SDPs/SIPs highlight the importance of involving the private sector, NGOs and community groups in the planning and delivery of reforms. A review conducted in Zambia (Agriculture SIP Workshop, 1997) points to the critical importance of developing private sector and NGO capacity in planning and delivering sector reforms. If capacity building efforts are restricted to the public sector, there is a distinct danger that public sector reform efforts will be undermined, especially if there is a central focus on policy/monitoring with management delegated to lower levels. A later study, also involving Zambia's ASIP, proposes that one essential milestone to be covered is the development of 'clear roles and responsibilities of and between the private and public sector' (SPM Consultants, October 1998). There is a similar danger that education SIPs/SDPs could become a vehicle for reinforcing central control. To avoid this, planners need to take account of a number of strategic considerations. Firstly, BESIPs/BESDPs could be formulated within a broader sectoral framework, including clear financing policies and plans, for post-primary provision. In essence, BESIPs might be seen as a first phase in a sequenced sectoral programme rather than stand-alone initiatives. Clear policy targets for secondary/technical/higher education reform need to be built into the initial SDP framework rather than be put to one side because they may otherwise be difficult to resolve. Ongoing dialogue on such issues needs to be part of the initial work programme. Secondly, institutional assessments and capacity building needs of the private sector and NGOs should be incorporated early into any education sector programmes. This should include early consultation with these groups about reform planning processes. Most of the ESIPs/ESDPs tend to show the reverse (e.g. Uganda ESIP, Mozambique ESSP, Zambia ESIP). In contrast, the Tanzania ESDP process has attempted to generate an ESDP/NGO Partnership Paper. Useful lessons could be learnt from health SIPs/SDPs (e.g. Uganda, Niger, and Zambia), where the role of the NGOs and communities in service delivery were specified at the inception stage. A related issue is the tendency within education SWA to focus on centrally planned, supply-side and top-down programming. In order to capture private sector and community participation, programme designs need to stimulate the bottom-up demand side. There are several useful examples of this approach, including community-based primary school facilities programmes, whereby communities identify their own needs [Box 7]. A variation is the use of demand-driven community education funds in Indonesia's ESDP with ADB/World Bank support and in Kenya SPRED II with DFID support. The challenge will be to use these specific programmes as both a vehicle and catalyst for promoting and implementing broader education management decentralisation policies and plans. Enabling broader community development SWA DFID's Social Development Division offer a timely warning that development cooperation policies 'have tended to focus on the delivery of "aid" to "sectors" rather than enabling people to take greater control of their lives', (Social Development Division, DFID, 1998). In support of this view, there is growing evidence that improved education provision and participation correlate strongly with broader poverty reduction, family health, nutrition and family planning gains. Likewise, improved education participation (especially literacy improvement) is a pivotal feature of community empowerment and enabling decentralisation of the planning and management of social services and rural income generation schemes. Another key consideration is that wide dissemination of information to communities on education standards and school effectiveness is critical in capturing community involvement and stimulating improved community governance of school systems. BOX 7 MEETING COMMUNITY-DRIVEN DEMANDS Primary School Facilities (PRISFAC) Programmes Several ESDP/ESIPs incorporate community-driven schools facilities programmes whereby classrooms, school furniture and sanitation are provided to meet expanded primary enrolment (e.g. Cambodia, Lao PDR, Tanzania, Uganda). One model is outlined below. PRISFAC is a DFID-supported primary school facilities building programme in Uganda. It forms a template for the national provision of classrooms as part of UPE expansion under ESIP. It provides management and financing systems to enable communities to access funding and undertake construction using local contractors. The overall framework of PRISFAC responsibilities is: a) MoES is responsible for setting policy, monitoring performance and audit, b) Districts are responsible for controlling and supervising PRISFAC activities, c) School Communities and contractors are responsible for identifying needs and implementing project activities. A Schools Facilities Grants (SFG) utilises the following process: 1. School communities (at local, county, district levels) and/or NGO/other relevant groupings apply for a grant; 2. Applications are processed by the DEO and screened according to national criteria; 3. Applications are then ranked, costed and appraised and presented to the District Committee for approval; 4. Contract work is undertaken, supervised by engineers appointed by the district. SFG is financed through a MoF account to which DFID provides budget support, with disbursements following procedures used for Conditional Grants. These programmes are viewed as a key component of broader decentralisation plans within SWA. At present there are few reliable mechanisms for translating education decentralisation policies into practice. In practice, few of the current ESIPs/ESDPs focus on these issues. A number of strategies could be considered to set ESDPs within a broader community development setting. One approach is to formulate cross social sector programmes (e.g. the Pakistan Social Action Programme and Thailand Social Sector Programme), where the links between education and other social sectors are clearly defined [Box 8]. The benefits of the social-sector approach arise from the opportunities afforded for integration of hitherto apparently disparate activities, such as linking education and health in a more productive way. SWA: Perceived advantages In conclusion, the process and outcomes of a SWA offer two broad advantages. Firstly, a SWA focuses greater attention on education sector performance, outcomes and service quality through a greater emphasis on policy, budgetary and institutional concerns and arrangements. Secondly, the intention of a SWA is to provide an opportunity for more effective relationships between national Governments and funding agencies, including increased national leadership, ownership of reform plans, revised mechanisms for joint Government-funding agency strategic negotiations and performance review. BOX 8 CROSS SECTORAL PROGRAMMES 1 Pakistan: The Social Action Programme (SAP) "The SAP Project (SAPP) is probably the purest example of operations meant to assist entire programs across all four major social sectors (elementary education, primary health, population welfare and RWSS [rural water supplies and sanitation]). Rather than 'cherry picking' - financing only the attractive parts of, say, elementary education - they assist elementary education as a whole. Moreover, having one operation that covers all four social sectors permits addressing problems that cut across the sectors [...] SAPP takes on the policy framework, the financing arrangements and the implementation system as a whole for all four social sectors. [...] financial aid under SAPP is a financing item in the Government budget." 2 Thailand: The Social Sector Program Loan (SSPL) [The SSPL will] "provide opportunities for accelerating decentralisation in the planning, management and delivery of social services. A greater emphasis as community-based, demand-driven assistance programs (e.g. social funds, community water/sanitation programs) and integrated primary health/education initiatives (e.g. using schools to deliver mother/child health programs) could underpin Government's decentralisation efforts." Source: (1) Morris, 1998, (2) Asian Development Bank, 1999 The next chapter will discuss the extent to which current funding agency policies and practices incorporate the perceived positive features of SWA. 4. Funding Agencies: Education Policies, Strategies and Approaches DFID Evolution of DFID policy/strategy Implications for design/appraisal processes Broad DFID strategic directions Overview of current DFID approaches Bilateral funding agencies: Issues and strategies European Union initiatives Bilateral funding agencies that are uncertain about SWA The lending banks The UN agencies: Strengthening their role DFID Whereas this chapter reviews the policies and strategies of a broad spectrum of multilateral and bilateral funding agencies, the first few sections are specific to the UK Department for International Development (DFID). Evolution of DFID policy/strategy Within DFID/ODA, education policies and strategies have evolved significantly since the eighties and throughout the nineties. In the early eighties, policy and strategy could be characterised as being fairly narrowly focused on educational technical issues with a broadly opportunistic strategy of filling investment gaps. The consequence was a patchwork of projects covering primary, secondary, technical and higher education. Little explicit reference was made to cross-cutting issues or funding agency co-ordination. Into the Nineties: an Educational Policy for British Aid (ODA, 1990) represented a major shift. The broad policy objective was to contribute to poverty reduction, with a consequent shift in broad strategy towards quality basic education services. The consequence was an increased emphasis on primary/lower secondary education provision and targeted support for instructional materials and teacher development. The need to address institutional, gender and financing issues received prominence, alongside a growing recognition of the importance of effective funding agency co-ordination. Education Division's next policy paper, Aid to Education in 1993 and Beyond (ODA, 1994) broadened the policy agenda further. The overall policy alleviation goal was reaffirmed, alongside a shift towards broader human development and human capital objectives. The critical importance of strong economic management, good governance and cross-cutting social development and gender issues became more central, alongside a firmer acknowledgement of the need for strong Government/funding agency dialogue and coordination. The need to base assistance programmes on national leadership of agreed policy reforms became more explicit and the scope for sector aid packages (including current budget support) was recognised. The 1997 White Paper took the agenda significantly further forward. Assurances of strong Government/funding agency partnerships (based largely on policy commitment and institutional criteria) became central to overall policy. The implication was that strong macro economic management and assured national policy leadership was fundamental to achieving jointly shared poverty reduction and specific education sector reforms and targets. A second implication was that education aid had to contribute to achievement of broader DFID policy objectives, including involvement with civil society and health, population and employment generation goals. A fundamental change was the setting of clear development targets (based on agreed OECD/DAC targets). The most significant implication was that all development partners would share responsibility and be jointly accountable for achieving them, including poverty, sectoral and cross-sectoral targets [Box 9]. This required the development of systems for information dissemination, progress/impact monitoring and evaluation. Sector wide approaches through sector aid packages became more central to overall strategy. BOX 9 BROAD DFID EDUCATION STRATEGIES We also intend to strengthen and extend partnerships to support a range of innovative strategies. These will induce: - development of policies and practices to improve schools, educational opportunities and achievement within education systems - involvement of local communities in developing and managing schools to increase local participation and accountability - creation of new opportunities for the poor to participate in education at all levels - reconstruction of education systems in poor countries emerging from acute social upheaval - promotion of scholarship and research to improve our knowledge and understanding of how education can contribute to the elimination of poverty In line with the 1997 White Paper, Education Division's current policy framework, Learning Opportunities for All (DFID, 1999) gives prominence to education for the elimination of poverty, while stressing equitable, high-quality, effective systems that will deliver knowledge and skills development. Key benchmarks against which to assess investments in education will be Universal Primary Education and the removal of gender disparities in primary and secondary schooling. The policy framework notes that the 'scale of the poverty agenda... require[s] new development arrangements' and that 'in education, as well as other sectors, DFID will move towards sector wide support for educational development and in countries where there is a strong commitment to this approach'. Implications for design/appraisal processes The implications of the 1997 White Paper for DFID operational strategy are profound. Firstly, the broad strategy implies a long-term systemic view to reform, with policy-led assistance programmes. This highlights the operational importance of a long-term planned transition for reform, including dovetailing existing projects and assistance programmes within a firm policy framework. Secondly, it highlights the need to make economic management, social, gender and institutional considerations central to design and appraisal processes and to involve the poor and local communities in them. Thirdly, it reinforces the pivotal importance of strong monitoring/evaluation components that address policy, technical, financial and institutional building outcomes. As a consequence, the strengthening of central/sectoral governance and management systems together with assessment of policy leadership and commitment for education reforms become the overarching design/appraisal consideration. Another consideration is a careful analysis of the extent to which the proposed education reforms can contribute to longer term poverty reduction, improved equity of access to education and broader social services, as well as to DFID's public sector management and governance objectives. This argues for a cross-cutting approach incorporating careful institutional, social and economic appraisal, alongside traditional technical design/appraisal approaches. Broad DFID strategic directions The 1998 evaluation by Al-Samarrai, Bennell and Colclough of DFID support for primary education highlights the changes in DFID strategy for education development. Firstly, there has been a marked shift towards support for primary education with declining secondary, higher and technical education aid volumes. Secondly, the early to mid nineties heralded a movement towards higher aid volume and more systemic approaches (e.g. Andhra Pradesh, SPRED II Kenya). Thirdly, design and appraisal processes demonstrated increased concern over issues that address poverty, inequity (including gender), macro-economics, institutional reform and capacity building. The mid to late nineties has seen a further consolidation of broader sectoral development, system-based approaches. In East Africa, DFID has been at the forefront of sector wide approaches (e.g. ESDP Tanzania, ESIP Uganda), alongside providing support for the ESDP in Ethiopia. In Southern Africa, DFID has been a key participant in sectoral and sub-sectoral development programmes in Malawi, Mozambique and Zambia. In West Africa, DFID became an early supporter of the Ghana ESDP. Similarly, DFID has provided significant support for the multi-sectoral Social Action Programme (SAP) in Pakistan and the implementation of decentralised education support programmes in some Indian states. DFID strategy elsewhere (e.g. SE Asia, Pacific, Caribbean) appears more variable and opportunistic, due in part, perhaps, to lower prioritisation and spending volumes. The publication in May 1999 of DFID Education Division's policy framework, indicates a clear shift towards adoption of sector wide approaches as a development policy where in-country commitment is likely to be reciprocated. Four interpretations of the current position can be considered: 1. SWA is simply a process for ensuring more rigorous design and appraisal of stand-alone sector support programmes, especially to ensure that support is cost-effective and sustainable within a broader institutional and financial context. 2. SWA is a response to growing dissatisfaction with projects and programme aid approaches, including limited impact on policy reforms. 3. SWA represents a mechanism for better funding agency coordination through formal Government/funding agency agreements (e.g. Partnership Papers, Codes of Conduct). The impetus for this strategic position may be correlated with levels of expertise and in regions where DFID anticipates large spending volumes for education (e.g. Eastern and Southern Africa and the Indian sub-continent). 4. DFID education strategy has hitherto moved towards adoption of a sector wide approach and the current position is a pragmatic, transitional arrangement towards education SWA. Education Division's policy paper clarifies DFID's approach to education/poverty alleviation links and, implicitly, will help to shape its relationships with other funding agencies. Most importantly, it should provide a coherent framework for Government/DFID arrangements in future education partnerships. Overview of current DFID approaches Education SWA remain in their infancy in most countries. Equally, DFID education strategy on the ground appears to be in a state of transition with significant regional/country variations. Current approaches may be characterised in four ways: - Intrinsic: A sector wide, 'pure' SWA approach (e.g. Uganda, Tanzania, Zambia, Mozambique) - Supportive: Sub-sectoral SWA approaches, within a broader policy/institutional framework (e.g. Ghana, Malawi, Nepal, Pakistan, Belize) - Transitional: A transition to a sector wide approach, involving discrete programmes/projects within a broad sector policy framework (e.g. Bangladesh, Kenya, India) - Traditional: Discrete projects, with a variable degree of broader policy settings (e.g. Caribbean, Pacific, West Africa, SE Asia) In anticipation of how the recently published education policy (DFID, 1999) will manifest itself in the immediate short term, DFID advisers have already identified a number of issues regarding SWA (Box 10). BOX 10 DFID ADVISERS: SOME SWA ISSUES SWA Design Issues - Need to establish clear links between SWA design and sectoral decentralisation - Need to incorporate Public Expenditure Review framework as part of SWA design - The need to establish sound dialogue between Education and Finance ministries • Underdeveloped involvement of NGO and private sectors, especially at the design stage Implementation Issues: • Insufficient attention paid to institutional and management issues • Lack of agreed (or well chosen) performance indicators - leading to poor monitoring • Monitoring systems yet to be developed properly, especially those that check on poverty alleviation • A need for strong EMIS to be developed • Where SWA is devolved provincially (e.g. Ethiopia, Pakistan), there needs to be clarification of roles of the federal and provincial Governments (often a need to develop a shared vision of SWA) Poverty Issues: • How can poverty analysis be factored into SWA? • What can be achieved by the education sector in terms of poverty alleviation? • Consideration of differential impact monitoring and evaluation in the poorer areas of countries Funding Agency Issues: • Lack of discipline from funding agency groups, especially in appreciating the need to work at the client's pace • Inflexibility of funding agencies can hinder just as much as that of Governments Source: Discussions with DFID Advisers, October 1998 Bilateral funding agencies: Issues and strategies Like DFID, other funding agencies are increasingly recognising that education support programmes cannot be developed in isolation. There is a broad shift, both within Governments and funding agencies, away from specialist, often narrow, education programmes towards broader policy and strategic support. This is reflected in the new financing modalities that are emerging (e.g. the previously mentioned SIP, SASP, SBS, SSP, etc.). Discussions with a number of funding agencies reveal very similar concerns to those expressed within DFID, with the need for the development of sound indicators and follow-up monitoring and evaluation procedures well to the fore. Compare Box 10 with Box 11. Policies and strategies vary across funding agencies. For example, of the Nordic Group, Denmark, Norway and Sweden have adopted pro-SWA policies. In strategic terms, Finland recognises that SWA represent 'a practical solution to the problem of translating political and economic dialogue into a long-term development programme' (Department of International Development Co-operation, 1998) and provides significant support to sector and sub-sector programmes in Ethiopia, Mozambique, Nepal and Zambia. Despite this, they have yet to adopt SWA as policy. Although Denmark has a pro-SWA policy, in practice DANIDA supports SWA approaches in some countries (Nepal and Mozambique) but not in others (e.g. Uganda). BOX 11 FUNDING AGENCIES: SOME SWA ISSUES • Funding agency inflexibility can threaten SWA (e.g. the multilateral lending banks which often appear to keep to their own priorities regardless of specific country problems). Bilaterals can also be inflexible. • SWA demands effective decentralisation, especially in countries with federal systems. • Since indicators appear to drive the SWA process, they need to be well chosen and corresponding monitoring systems established. • Whereas Impact Monitoring is often seen as a justification for SWA, there is little evidence of how effective it is. • How can parental, private and community involvement be calibrated and counted in? Source: Discussions with Finnish and Swedish Officials, November 1998 In some ways USA and France play a unique role in development. Both countries have global reach. USAID, for example, has very strong policy leverage, a long history of programme support and is playing a lead role in debt-relief initiatives. Box 12 provides a summary of USAID conditionalities for sector support to education. BOX 12 USAID PRECONDITIONS FOR EDUCATION SECTOR SUPPORT - Macro-economic policies and economic performance should be favourable. - An authentic sector reform should be under way - The political environment should be moving towards greater civic participation in policy formation. - A public policy review and analysis process should be in place (or planned) in the education sector - The MoE should have committed leadership and a reform strategy - The sector should have feasible plans to develop the necessary institutional capacity - There should be sufficient information to monitor change at both process and student level Source: Derived from Al-Samarrai, Bennell and Colclough, 1998 French Aid remains particularly influential in Francophone Africa and Indo China; this includes a number of countries with SDPs/SIPs in preparation (Mali, Cote D'Ivoire, Senegal). There are indications that both USA and France are increasingly willing to join SWA partnerships, e.g. USAID in Uganda and French Aid in Cambodia. However it should be noted that while USAID per se may be keen to support a SWA approach, Washington’s State Department may intervene to prevent it (as in Ethiopia). It is also reported that French Government policy is to strengthen development co-operation mechanisms with other funding agency partners. On a different strategic plane, there is a tendency for smaller funding agencies to group together for certain purposes (e.g. the Nordic Group with Ireland and Netherlands). This raises the question of whether such groupings may eventually constitute 'mini-multi-nationals' 2 with the subordination of national policies to broad approaches to development of the kind which SWA appear to offer. 2 The authors are grateful to Professor Tuomas Takala, University of Tampere, for this phrase There may be a pivotal role for 'small' funding agencies in nurturing effective SWA partnerships. It is interesting that in several countries, funding agencies of countries such as Finland, Ireland and Netherlands are perceived by Governments as honest brokers. The reasons for this vary but include perceptions of having no explicit agenda, well-focused country priorities, non-alignment and as a consequence are seen as neutral supporters and partners. For example in Tanzania’s and Uganda's education SWA, Finland-Ireland and Ireland-Netherlands respectively were early supporters of common TA funds and common work programmes. Fig 4.1 EDUCATION SECTOR CO-ORDINATING COMMITTEE The concern of both the DFID and Nordic Group officers regarding funding agency inflexibility [Boxes 10 and 11] clearly reflects past negative experiences. This may be linked to frequently received reports that the success or otherwise of introducing SWA can hinge on the personalities of regional representatives of funding agencies. Where relationships are healthy, the introduction of a SWA is likely to be a productive exercise. Fig 4.1 shows the organisation of a typical Education Sector Co-ordinating Committee and the active part that can be played by funding agencies on that committee and on the working groups that inform it. Such an approach, however, will not work without partnerships between funding agencies (as well as with Governments). European Union initiatives The European Union has played a constructive role in terms of both co-ordination of European funding agency SWA policy and strategy and in-country operations. The EU Horizon 2000 initiative has effectively acted as a discussion forum and clearing house for learning lessons and forward planning of ESDP/ESIP initiatives. EU technical advisers gave an early lead in the development of operational instruments (e.g. Code of Conduct, see Box 27). The annual Horizon 2000 meetings have also provided a forum for face-to-face discussions between partner Governments and funding agencies. For example, the draft education SWA Code of Conduct was tabled at the annual ADEA meeting of Ministers of Education (Entebbe, April 1998) resulting in positive feedback and an emerging consensus. As with the UN and Regional Banks, the EU has a comparative advantage, appearing as a neutral but influential broker that is not involved with narrow issues and perceived national agendas. Despite this, however, there remains a need to build up a critical mass of educational expertise within the EU. DFID provides some direct support to EU by financing both Brussels-based and in-country education advisers. There is a strong argument for other European funding agencies providing similar support, possibly linked to strengthening of the EU role as an education SWA clearing house. Bilateral funding agencies that are uncertain about SWA While many funding agencies are increasingly embracing the SWA as a broad strategy, a number of agencies remain unconvinced (e.g. CIDA, GTZ, JICA). Their main reasons are possibly an adherence to familiar processes, lack of attribution, the need for policy control, a lack of understanding of (or belief in) financial safeguard systems and issues of fungibility. These agencies appear to prefer to support education sector reform through projects. A typical question raised as an argument against giving budget support to a SDP is 'How do we know the money will not go towards the purchase of weapons?' (discussion with CIDA official, 1999); a question that was widely aired in connection with SWA support when Pakistan recently tested its nuclear weapon capability. There is no reason, nevertheless, to suppose that this position will remain static [Box 13]. The lending banks The World Bank occupies a special position in any discussion on sector wide support. Already, through structural adjustment programmes, the World Bank is providing de facto support to sector development in many countries. In addition, Harrold's (1995) paper on SIPs may justifiably be considered as an important contribution to the current debate. The position outlined by Harrold has been revisited subsequently by a number of World Bank officials (Noman, 1996, Pena 1996, Cleaver, 1996, Adalbert and Okidegbe, 1997, Demery and Walton, 1997, Orbach, 1997, Bhatia and Okidegbe, 1997). BOX 13 FUNDING AGENCY PRACTICES IN TRANSITION: JICA JICA appear to be considering transition towards SWA. To date, the JICA stance has been cautious for reasons of attribution, uncertainties over fungibility of funds and in particular their own internal technical capacity to participate in strategic dialogue at the field level. The strong tendency to rely on Japanese contractors and rigid procurement policies create additional difficulties. Nonetheless a recent JICA study (US Office, 1998) charts a possible strategy for increased participation in SWA partnerships, including new collaboration mechanisms, strengthening local JICA field expertise and a proposed SWA programme grant mechanism. This kind of transparency in acknowledging real difficulties and constraints should be welcomed. In reality, especially at the country/field office level, other funding agencies express the same concerns. As Noonan (1997) points out, there remains a significant reality gap between HQ policy and field operations. In many instances, the World Bank treats a SIP as a project, requiring a detailed 'blueprint' of proposed actions over a given time span, e.g. over five years, but often much longer (10 - 20 years). In the views of many officers from funding agencies, the World Bank frequently appears inflexible, maintaining its own priorities and not taking the particular circumstances of client countries into enough consideration [Box 14]. Nevertheless the World Bank co-operates with funding agencies in a number of education SWA programmes (Ethiopia, Ghana, Uganda). BOX 14 WORLD BANK AND SWA: THEORY AND PRACTICE World Bank have been at the forefront of SWA. Harrold (1995) identified key features of SWA as comprising: sector wide, policy based, locally owned and led, funding agencies signing up to common processes and little foreign TA. Some funding agency perceptions are that World Bank theory and practice are not always fully consistent with these principles. WB-financed TA frequently appears to marginalise other funding agencies: 'harmonisation of processes' often means that other funding agencies have to follow bank procedures rather than negotiated country-specific solutions. Others observe that few SIPs appear to include scope for performance-led budget tranching due to uncertainties over appropriate bank lending modalities. WB-led SIPs tend to view capacity building in terms of adequate arrangements for project management rather than taking a broader view. Though by no means atone in this, one tendency of the WB is for it to negotiate its own agreements with Governments in isolate This can create a climate of mistrust and suspicion. In Ethiopia, the Government, which very much in charge of the SWA, forced the pace which suited the WB who were keen to disburse quickly. This was interpreted by other funding agencies as not providing 'enough space' for thorough consultation (Linda, 1998), though it should be noted that repeated offers by WB to step aside as lead agency were never taken up. Despite funding agency concerns, the challenge will be to forge effective working relations with World Bank and other agencies. A clear message is that such relations are facilitated by strong Government leadership. The Asian Development Bank's (ADB) position towards SDPs is spelled out in its 1996 Review of Program-Lending Policies. In broad terms ADB, like the World Bank, supports the use of 'pure program loans' especially where 'a sector requires both large-scale investment lending and substantive policy reform' (op. cit.). Increasingly ADB is examining the scope for using SDP loans that are a hybrid of programme support, discrete investments and capacity-building TA as a means of increasing the policy focus [Box 15]. BOX 15 ASIA AND THE PACIFIC: CHANGING PERSPECTIVES Asian Development Bank (ADB) has become a major lender in the education sector in the past ten years. The ADB target is to reach 50% of lending for social infrastructure. Bank portfolio reviews, the 1997/98 economic crisis in South and East Asia and the withdrawal of Eastern bloc aid to Central Asia have created impetus for new education assistance approaches, especially tranched sector budget support. In Thailand, the ADB provided a US$500 million social sector loan, managed by the Fiscal Policy Office (Ministry of Finance), aimed at fundamental, institutional and financing reforms in health and education. The Indonesia ESDP aims to protect primary school enrolment through a assistance to poor families channelled directly to community groups. In both cases support will be tranched against agreed performance targets alongside TA for strengthening monitoring operations. In several Central Asian republics the aim is to put education on a sustainable financial footing. ESDPs are under way in Mongolia and Kurgistan (planned in Uzbekistan) with tranched support against an agreed policy menu and targets. In the small South Pacific countries ADB is examining the efficacy of small-scale innovation loans focused on key institutional and capacity building reforms. Source: Selected ADB loan documentation, 1997-1999 Much of the debate over funding agency partnerships has paid insufficient attention to a potentially important role for the regional development banks, e.g. African Development Bank (AfDB), Caribbean Development Bank (CDB) and Inter-American Development Bank (IADB). The partnership arrangements appear mixed. For example it is reported that CDB and IADB are increasingly active in sector policy development in the Caribbean (Guyana, Jamaica). In contrast, the ESDPs in many African countries appear to enjoy only marginal AfDB support. The regional banks have strong political/professional networks amongst regional members, are seen as 'one of us', are not perceived as having external agendas and, as a consequence, have significant credibility. Channelled and nurtured effectively, they represent a potentially strong, professional and financial partner for SWA. The challenge to funding agencies will be to nurture effective partnerships and strengthen their capacity, possibly through out-posted advisers, similar to current practice with the EU and, less formally, to provide support for regional working groups (ADEA, 1998). BOX 16 UNDP: AID ACCOUNTABILITY INITIATIVE In 1997 UNDP established an international working group on aid accountability, to address concerns over probity and transparency in accounting of aid finance. Ten guiding principles and protocols have been formulated, representing a virtual Code of Conduct for financial management. There may be scope for incorporating these principles into SWA education guidelines. At present it remains unclear what process will be adopted to translate principles into country-specific practices. Source: Sector Programming and Accountability Initiative, UNDP, 1997 The UN agencies: Strengthening their role Unlike the various working groups on health SWA, the UN agencies have not played a central role in education SWA policy/strategy deliberations, either at HQ or at in-country levels. This appears to be a missed opportunity. Like many of the regional development banks, the UN agencies could play a very powerful role in consolidating international and regional professional networks and SWA information exchange. In health, through the World Health Organisation, a number of funding agencies have been supporting regional and country advisers whose role is to stimulate debate on SWA. There may be scope for similar out-posted advisory arrangements in education through UNESCO, UNICEF and UNDP. Indeed, at a time when, for example, UNESCO is judged to lack vision and moral authority (Watson, 1999), to need restructuring and reform (Jones, 1999, Mundy, 1999) and to be unable even to guarantee the quality of its statistical data (Heyneman, 1999), there appears to be a very strong case for formal support of the kind outlined above. 5. Strengths and Weaknesses of Sector Wide Approaches The consultation process Funding agency discussions: Overall findings Impetus for SWA to education Using Government systems SWA: Potential constraints and risks Raising potential The consultation process The study incorporated a number of consultative processes with funding agency staff, field technical assistance and informal consultation with selected Government officials. A framework, summarised in Box 17 below, was used for data gathering of ongoing SWA type support programmes. BOX 17 SWA TO EDUCATION: A CONSULTATIVE FRAMEWORK • Ownership and Leadership: Government commitment, main champions, and pockets of resistance within Government and funding agencies? • Design and Planning: Government understanding and capacity, alternative design approaches, linkage with financial/institutional issues, forms of funding agency support for design process? • Cross-cutting Issues: Linkage with macro-economic framework and PER, effectiveness of poverty assessments and poverty reduction plans, effectiveness of institutional assessment and capacity building strategy? • Phasing and Sequencing: Evolving or blueprint approach, effectiveness of phasing and sequencing, attention to sector performance monitoring systems, attention to outcome-based technical/financial tracking systems? • Transitional Arrangements: Attention to transitional phase, incorporation of existing projects into SWA, various forms of transitional support, maintaining Government confidence in SWA? • Funding Agency Procedures: Effectiveness of funding agency co-operation, forms and efficiency of formal Government/funding agency partnerships, sources of funding agency tension? Summary of Case Study Review Instrument The consultation framework broadly focuses on the impetus behind SWA approaches, assessments of the degree of Government ownership and leadership and Governments' planning and design capabilities. It was designed to determine the degree of linkage between sectoral and cross-cutting institutional, social and financial issues, the attention given to sector performance monitoring, any planned transitional arrangements and the procedures for effective funding agency co-operation. Funding agency discussions: Overall findings Discussions with economic and institutional advisers of funding agencies confirm that the emergence of modified design and financing modalities (SIPs, SDP and SSPs) is a symptom of a shift in focus on macro-economic dialogue between Governments and funding agencies. Discussion now centres upon improved public expenditure management and the role of Government in public service provision rather than overall structural adjustment. Alongside, there is growing recognition that the effectiveness of individual projects is constrained by the policy, economic and institutional environment within which a project is implemented. A SWA is therefore largely a response to the limitations of project assistance and programme aid. These responses are succinctly encapsulated in Box 18. BOX 18 SECTOR APPROACHES: SOME EARLY LESSONS - SWA may be better placed to internalise external factors, especially macro-economic and institutional concerns - Flexible budgetary support needs to secure additionality to sector funding - A long term vision (not blueprint) is critical, showing clear linkage between strategic targets and realistic resource envelopes - SWA for education needs to be set within broader civil service and local Government reforms; sector ministries alone cannot lead reform processes - Greater attention needs to be given to outcomes and outputs, rather than simply resource shifts, linked to reliable data collection and monitoring systems • Early commitment to SWA can build up confidence, trust and capacity, while accepting the need for flexible adjustment to strategy and budgeting • Funding agencies need to show more trust in Government systems, linked to reasonable accountability and audit mechanisms within Government Source: Foster, 1998 Various evaluation exercises (e.g. World Bank 1998, DFID 1998) highlight the limitations of project assistance. A proliferation of projects can lead to policy fragmentation, resulting in conflicting or duplicated (sometime parallel) approaches, distortion of spending priorities and uncertain sustainability of outcomes and benefits. Additional arguments against a project approach include lack of national ownership, managerial overload through servicing funding agency missions, lack of flexibility in adjusting to changing policy environments and a tendency to create 'islands of excellence'. The tradition of stand-alone PIUs contributes to distortions in staff incentive packages, overburdening of key ministry staff and a danger of continued over-centralisation of management and implementation responsibilities, often inconsistent with public service and local Government reform policies. An over-arching concern is the likelihood of slow absorption and disbursement through the use of PIUs. Recent surveys (e.g. Uganda school facilities projects, 1998, ADB portfolio reviews 1996/7, World Bank, 1998) demonstrate that central procurement can result in low disbursement rates, often as low as 15 - 20% of targets. Use of PIUs often create parallel technical and financial management and accounting systems which drain the capacity of national systems and undermine aid capture within national education budgets. While programme aid has the potential advantages of more flexibility and rapid disbursement, it has limitations in a sector context. Several agency evaluations point to the difficulty in correlating general budget support with achievement of education sector performance targets, due in part to problems of fungibility and tracking. Linking budgetary support to macro-economic targets can create difficulties in uneven, stop/start financing for education reform. These budgetary uncertainties can undermine confidence and continuity, interfere with programme implementation and distort forward education budget planning. Impetus for SWA to education In general, agency advisers consider that the movement towards a sector-wide approach addresses these limitations. The main SWA characteristics are a sustained partnership arrangement (often formalised in a Memorandum of Understanding, e.g. Tanzania, Zambia) that aims to define sector scope, a collaborative work programme and agreed strategic negotiation/review structures. Work programmes increasingly focus on developing phased and sequenced sector policies and strategies, resource availability and expenditure projections, common management systems and institution building plans (e.g. Ghana, Uganda). Advisers' comments [Boxes 18, 19 and 20] and a growing literature (e.g. Harrold and Associates 1995, SIDA 1995, Eeckhout 1996, Oxford Policy Management Group 1997, Andersen and Christensen 1997, Bhatia and Okidegbe 1997, Cassels 1997, EU Horizon 2000 1996 & 1997, SPM Consultants 1998, Gould, Takala and Nokkala 1998) highlight the potential strengths of the SWA [our emphasis]. National leadership and the use of national systems are central to the SWA context of joint negotiation and collective responsibility. Secondly, a SWA is an evolving process, including phased and sequenced programmes, not a time-bound exercise. This allows for feedback review and flexible strategy adjustment as conditions change. Also, SWA are predicated upon a long term Government-funding agency commitment to achieving development objectives, reflected in joint responsibility to fulfil agreed medium and long term financing commitments. Another strength of an education SWA is its focus on output audit rather than input accounting, whereby flexible, high volume budgetary support can be tranched against achieving agreed milestones and targets (e.g. Uganda, ESIP April Review, 1999). BOX 19 DFID ADVISERS: IN SUPPORT OF SWA SWA has the potential to: - develop robust Government in terms of policy and ownership and future sustainability, - develop sustainable growth of the education sector, - strengthen Government macro-economic programmes, general budget preparation, expansion, auditing, accounting and expenditure systems, - produce transparent financing and accounting systems, - foster funding agency co-operation, - forge partnership arrangements, - save Government resources (time and human benefits from dealing with one group of funding agencies rather than separate funding agencies), - meet Governmental agendas (education expansion, equity, poverty reduction, manpower requirements), • meet funding agency agendas (poverty reduction, environmental protection, human rights, democracy, social sector improvement, decentralisation). Source: Discussions with DFID Advisers, 1998, 1999 BOX 20 OTHER AGENCIES: IN SUPPORT OF SWA SWA has the potential to: • improve absorptive capacity through recognition that more aid will ensue if absorptive capacity is raised, • develop the normative role of the Ministry of Education, leading to more professional Government, • be relatively impervious to changes of Government, • make funding agencies follow Government wishes through assumption of leadership by the Ministry of Education, • appropriate a form of credit to Government in a way that is also shared with the public, thereby creating wider ownership and national pride, • strengthen public ownership through the budget, • give all funding agencies a voice at meetings with Government, thereby making them stakeholders, • develop and enforce appropriate codes of conduct and memoranda of understanding, • promote and build competency and capacity. Using Government systems Use of Government systems is potentially more cost-efficient and inherently more capacity building than financing a proliferation of project management and implementation visits. Joint Government-funding agency review missions potentially reduce the dangers of funding agency competition and enhance cost-effectiveness in the use of Government senior management and agency advisers' time. Potentially, the percentage of costs spent on SWA development and management will be reduced significantly, particularly for high volume support programmes. SWA: Potential constraints and risks Discussions with funding agency officials also highlighted a number of potential limitations and risks for education SWA [Box 21]. A fundamental concern was lack of leadership, commitment and understanding within Governments and agencies to implement broad-based reforms (e.g. some Pacific countries, Tanzania ESDP). A second concern was the dangers of over-centralisation of SWA design/planning, including 'parallel' task forces and lack of involvement of MoE line directorates and other stakeholders (e.g. Ethiopia ESDP, Tanzania ESDP). In several instances (e.g. Ghana ESDP, Thailand/Indonesia SSDP), there were concerns over weak linkage and overloading of education budgets with medium term expenditure frameworks, potentially exacerbated by inflexible funding agency programming modalities. BOX 21 SWA: THE RISKS If the opportunities presented in Boxes 18, 19, 20 are not realised, they will present a formidable list of risks. In addition, a number of funding agency officers considered there could be a risk to SWA if: - weak leadership, commitment, ownership and management capacity exist at central and district levels, - there is under-involvement of NGO and private sectors, - funding agency groups act in an undisciplined way, - there is a persistence of projects and a tendency to focus on inputs rather than outputs, - education users are not consulted on the issues (especially with regard to equity and poverty), - there are not good links between the Ministry of Finance and the Ministry of Education, - traceability of money is subordinated to fungibility, - World Bank continues to appear inflexible in its approach, - information is not shared. [The risk arising from lack of funding agency attribution, frequently cited in the literature, was not regarded as a serious matter among respondents spoken to.] Source: Discussion with Funding Agency officers, 1998, 1999 Three main issues stand out as common concerns and potential risks covering the majority of SWA-type initiatives for education support. Firstly, there is the potential risk of weak national institutions and capacities to deliver programmes through central and decentralised Government systems, both technical and financial. Secondly, there is frequently a lack of agreement on realistic and achievable performance targets, alongside weak EMIS and monitoring/review systems. This second risk may be exacerbated by any blueprint approach that leaves less room for manoeuvre on strategic review and expenditure adjustments. A third risk appears to be an unwillingness of some funding agencies to sign up to an education SWA (including resistance to incorporating discrete funding agency-financed projects) for reasons of accountability. To summarise: the main risks are potential delay and perceived complexity. On the Government side, senior education policy-makers and managers face criticism if 'action on the ground' appears to be taking too long. The consequence could be declining commitment and confidence, especially if the 'reform group' is small. On the funding agency side, officers frequently face 'disbursement pressure' from programme managers, undermining confidence and resolve. Key risk management strategies include an effective advocacy and dissemination programme and early financial commitment (including a transitional programme), alongside pre-start up capacity building programmes at various levels. Another risk may arise if there is a failure to recognise that the SWA is an innovative process [Box 22]. SWA: A PROCESS - NOT A PANACEA This extract is from a report of a recent NORAD seminar on macro-economic concerns about SWA: "I emphasised the continuing rote of incentives and sanctions ('conditionality' in old speech), to protect funding agencies when the conditions of partnership were breached. I emphasised the need to focus conditionality more on issues of process, dialogue and transparency, to ensure that there was a shared vision and commitment at the outset, but to retain sanctions for tackling in particular decisions which were corruptly taken, or taken without due observation of the agreed procedure or 'compact'. Recent cases in Ghana and Zambia showed the need for explicit agreement on the rules of the game and the dispute resolution process. "Some good questions... focused on whether weak initial conditions meant we should not try sector programmes: [our emphasis]. I argued we should took for a process of change, which becomes closer to a full SIP as capacity develops. There was agreement on the need to deal with macro issues alongside sector specific ones, and on the need for incentives and sanctions on both sides, although we agreed it is difficult to impose conditions on the funding agencies. Concerns about visibility of each funding agency's support could be handled with careful presentation, highlighting the attractive sector-wide goals (e.g. we are helping to halve infant mortality), and making a virtue of working alongside other partners towards a common purpose. Others stressed the importance of bolstering the poverty content of sector programmes, and the need to ensure consistency with macro budgets and reform process." Mick Foster, 12 February 1999 Africa Economic Department, DFID Source: Foster, 1999 Raising potential Foster's summary points (Box 18) and analysis (Box 22) bear re-emphasis. The potential benefits from adopting an education SWA lie in the recognition of willingness by Governments and funding agencies to engage in a two-way process that demonstrates the following attributes: - Shared vision, commitment, confidence and trust through dialogue, transparency, accountability and explicit agreement about joint undertakings and the 'rules of the game'; - Internalisation of external influences, particularly macro-economic factors; - Flexibility, particularly in programme design, work planning, budgeting and budget support; - Output auditing rather than input accounting; - Consistency with national goals and broader reform processes (such as decentralisation, civil service reform and restructuring). Many of the characteristics of this process underpin the principles of partnership within a SWA and are re-visited in the next chapter. 6. New Government-Funding Agency Partnerships Transition towards SWA Statement of intent Collaborative programmes of work Memorandum of understanding Codes of practice Strengthening field monitoring systems Technical assistance: Roles and management Partnership principles Transition towards SWA There appear to be three broad phases in formulating an education SWA. The first phase is when Government/funding agencies jointly sign up to broad education development targets (e.g. OECD/DAC) as a basis for loosely guiding development assistance. At present, this phase is exemplified by the prevalence of basic education support programmes. The main motivation is to try to make education support more pro-poor and improve the efficiency of education assistance programmes. This loose SWA arrangement may raise few funding agency tensions although, increasingly, Governments express the view that the intense focus on basic education does not always reflect their own overall priorities. A second phase is broadly when Government and funding agencies jointly agree a broad education policy and strategic framework led by the Government. This SWA framework arrangement allows for different financing modalities, continued funding agency attribution of their activities and a mix of budgetary support and project aid mechanisms. The main difference from the first phase is that the framework confirms a joint Government-funding agency agenda rather than Government and individual funding agencies following their own separate agendas. Tensions and stand-offs can begin to emerge unless differences in priorities can be resolved through effective negotiation mechanisms. The third phase constitutes a SWA operational programme with common agendas, common operational instruments, common management arrangements and jointly agreed strategic negotiation mechanisms. In particular, this third phase is characterised by a jointly agreed common work programme. At this stage, the potential for growing Government/funding agency and inter funding agency tensions increases as funding agency attribution is eliminated and individual funding agencies become obliged to change their ways of working. In particular, issues of control over the use of resources (e.g. earmarking) and lack of trust in Government systems become more prevalent. The critical issue is what actions to take (e.g. negotiate or withdraw) if these difficulties cannot be resolved. This study has reported that countries moving towards a SWA are at varying phases in developing Government/funding agency partnerships (sometimes overlapping between the three phases). The critical issue will be to formulate mechanisms and processes that make these partnerships more effective. As the health SWA international technical working groups (ITWG) highlight, "it is unlikely they can be accommodated in a single partnership agreement. It is easier to think about several agreements serving a somewhat different purpose" (Cassels, 1997). The type of agreement will necessarily vary according to the phasing of SWA. formulation and country situations. Box 23 outlines some of the types currently to be found. BOX 23 DIFFERENT FORMS OF FORMAL PARTNERSHIP AGREEMENTS - A Statement of Intent to proceed with sector wide approach (e.g. Ghana, Indonesia; Mozambique) - A Collaborative Programme of Work, which will include annual agreements on performance objectives and milestones for each of its main components (e.g. Ghana, Tanzania, Uganda) - A formal Memorandum of Understanding between partners entering into common management arrangements - An agreed Code of Practice to cover more general issues relating to the behaviour of funding agencies and Government, which are not included in the specific memorandum of understanding (e.g. EU Horizon 2000, Draft Ethiopia ESDP/PAP) Source: based on Cassels, 1997 Statement of intent In many cases, Government and funding agencies initiate the SWA process by preparing a Statement of Intent, usually at an informal meeting or during round table discussions. Examples include the Tanzania ESDP pre-appraisal exercise (1998), Ethiopia ESDP joint consultations (1998/99), Cambodia ESIP round table (1995) and similar processes in Mozambique, Zambia and Nepal. The purpose is to proceed towards a SWA by providing a high level signal of intent to Government. Surprisingly it appears that only in Tanzania and Cambodia, has a formal signing up to an SWA type approach taken place. To avoid confusion (and/or rumour) and to ensure the inclusion of the major multi-lateral lending banks, it is advisable that a Statement of Intent is completed as a jumping off point for the later phases. Collaborative programmes of work A survey of available literature indicates that the formal preparation of collaborative programmes of work is somewhat patchy. In Tanzania, Uganda and Ghana, work plans have been formally prepared, approved and published. In other cases (e.g. Mozambique, Nepal, Zambia, Cambodia, Thailand), the process appears to have been much more informal with consequent uncertainties over the extent of acceptance. In Ethiopia, a programme of work is implied in the ESDP action plan and agreed joint review missions (JRM) and the annual review mission (ARM) exercises. However, without a publication of a work plan there is always concern that the reality may not match the rhetoric. One lesson learned is that it is helpful and more effective in the long-term if the design of the work programme is a multi-funding agency financed exercise. There is a danger that if only a small number of funding agencies support the planning process, suspicions may arise among stakeholders (whether Government or other funding agencies) that individual funding agencies are driving their own agendas. Particular examples include Ethiopia ESDP (World Bank), Tanzania ESDP (EU/DFID), and Cambodia BESIP (Asian Development Bank) and Nepal BESIP (DANIDA). The critical issue is not which funding agencies actually finance technical assistance, but that there is seen to be transparent sponsorship of the process by Government and, preferably a large number of funding agencies. Box 24 gives examples of multi-funding agency support. BOX 24 MULTI-FUNDING AGENCY TA FINANCING: TWO EXAMPLES Cambodia: Over 1995-1998 the BESIP management/monitoring unit received multi-funding agency support: \| Area \| Supporter \| \|-------------------------------------------\|--------------------\| \| Management and Organisation \| supported by ADB \| \| Aid Policy and Strategy \| supported by EU \| \| Programme Design/Appraisal \| supported by JICA \| \| Aid Finance/Planning \| supported by AusAid\| \| Sub-Sector Programme Planning \| supported by French Aid \| Uganda: Following identification of needs by Government, five full-time TA posts will support ESIP: \| Area \| Supporter \| \|-------------------------------------------\|--------------------\| \| Monitoring and evaluation \| supported by DFID \| \| Financial Planning and Management \| supported by Irish Aid \| \| Statistics and EMIS Preparation \| supported by EU \| \| Institutional Development \| supported by Netherlands \| \| Programme Planning \| supported by JICA \| A critical component of work collaboration is a joint appraisal exercise or review mission by Government and funding agencies. Periodic appraisals/reviews shape the agenda for future programmes of work and the setting of milestones and performance targets. Once again it is important that the terms of reference and anticipated outcomes of appraisal/review missions are shared by all stakeholders to avoid misunderstandings that the exercise is being driven by single or small group funding agency interests and disbursement pressures. A very important signal is that Government is seen to be in the 'driving seat' of these appraisal exercises. Memorandum of understanding A Memorandum of Understanding (MoU) moves the process forward towards a much tighter operational instrument. Key components of a MoU are outlined in Box 25. Amongst education SWA, there do not appear to be any examples of a tight, commonly agreed operational approach and in many cases (e.g. Ethiopia, Uganda) SWA often move into implementation without a MoU. The best example is probably the health SDP in Zambia. The various forms of SDP appraisal and partnership documents under the ESDPs in Ghana, Tanzania, Uganda, Mozambique and Zambia could quickly be converted into MoUs. Similarly the Programme Action Plan (PAP) and Programme Implementation Manual (PIM) under the Ethiopia ESDP also represents a useful basis for MoU preparation. Nevertheless, a precondition would appear to be formal signing up to a collaborative work programme. BOX 25 MEMORANDUM OF UNDERSTANDING: KEY COMPONENTS - Education Sector Financing (eligible expenditures, Government/community contributions and budget shares, funding agency commitments, sector policy and spending review mechanisms) - Disbursement Mechanisms (funding agency fund channels, common accounts, frequency of tranching, reporting procedures, proportion of funds through Government channels, audit procedures) - Procurement Systems (country solutions, resolution of tied aid problems, procedures for tender and award of contracts) - Negotiation/Review Mechanisms (negotiation mechanisms when circumstances change, links between annual review and budget process, annual performance review procedures) Source: Derived from Country ESDP/ESIP Documents, Codes of practice Formulating Codes of Practice reaches the heart of effective development partnerships. In the past, the tendency has been for funding agencies to use aid resources as conditionalities and leverage. An effective partnership will involve mutual recognition of each other's limitations and strengths. For example, funding agencies need to recognise the various national influences on sector priorities (especially the influence of well-connected, higher education officials), resource limitations and capacity building gaps. As the health ITWG points out, a key test of funding agency commitment to SWA is a willingness "to achieve their influence through dialogue, negotiation, transparency and, only at the last resort, through financial or political muscle". Box 26 outlines the key components of a Code of Practice. Box 27 is a Code of Conduct designed by EU that is already subscribed to in various forms in a number of countries. BOX 26 TOWARDS A CODE OF PRACTICE: KEY COMPONENTS - Handling disagreements - Appraisal, planning and review missions - Planning cycles and a phased approach to common funding - Focusing policy negotiations - The role of consultants and technical assistance - Staff time and continuity - Funding agency co-ordination Source: Cassels, 1997, Gould. Takala and Nokkala, 1998 CODE OF CONDUCT FOR EDUCATION SECTOR FUNDING AGENCIES 1. Ensure information on all relevant interventions in the sector (including consultancies, new project and programme initiatives, requests for assistance made by Government, project appraisals, implementation and progress reports, technical assistance reports, evaluation reports) are made available to Government and other funding agencies. 2. Strictly adhere to agreed maximum national/regional rates regarding remuneration and allowances for civil service employees agreed by funding agencies, remuneration of national consultants, payments for conferences, etc. Avoid 'buying out' civil servants for private funding agency consultancy and work towards eventually decreasing the imbalance between national and expatriate salaries and allowances. 3. Ensure that Technical Assistance: • is driven by Government priorities and absorption capacity, normally in response to the initial draft Terms of Reference that are normally provided by the Ministry of Education (MoE); • reports primarily to Government managers; • supports Government institutional capacity by focusing on skills transfer to civil servants in priority Government functions; • is not restricted to supporting individual funding agency projects or programmes; • gives preferential treatment to national and regional consultants; • ensures that expatriate assistance (when required) is complementary to and develops national and regional capacity and expertise. 4. Actively encourage national consensus building processes and support local co-ordination mechanisms (to encourage Government ownership and use as a means of exploring further options and modalities of support). 5. Work towards: • using the financial, procurement, monitoring and reporting procedures and guidelines which obtain in the MoE; • following the Government fiscal year and procedures for progress reports, financial reports and audits; • pooling resources for specific components of the education sector in anticipation of moving towards general budgetary support, once appropriate mechanisms for reporting and financial management are in place; • harmonised reporting procedures. 06. Work through existing structures in order to ensure maximum integration in MoE policy. 07. Ensure effective communications between the local funding agency offices and MoE. 08. Work towards joint appraisal missions, joint monitoring, joint auditing and evaluation, in accordance with the Government budget cycle and fiscal planning. 09. In consultation with the Government, schedule missions to fit the Government/MoE timetable and be at a level that is manageable and not intimidating for Government. 10. Secure Integration of gender aspects into any mission, study or related activities and gender expertise where needed. Secure integration of environmental aspects where appropriate into education-related activities. Source: EU, 1998 A lesson emerging from education SWA is that it is takes some time for Governments and development partners to come to terms with new forms of negotiations and handling disagreements. In the past, the relationship was largely framed within bilateral conditionalities on Government, whereas a SWA pre-supposes joint undertakings with shared responsibility for achieving outcomes. The main areas of disagreement focus around the linkage between policies and spending plans, especially avoiding unrealistic targets and recurrent budget expectations (e.g. Cambodia ESDP). A second area of disagreement is the viability of common management arrangements (especially financial management/reporting), exemplified by ongoing debates in the Tanzania and Ethiopia ESDP. There is no easy resolution of these disagreements. One way forward is to allow short-term continuation of parallel managed project assistance against an agreed timeframe for phasing out. Another solution (as adopted under the Nepal BESIP and Ghana ESDP) is to gradually channel increased amounts through Government system, making continuous judgement on the robustness of the system. The three-channel system under the Ethiopia ESDP represents a similar approach. The challenge to funding agencies is to define minimum accepted standards of management/reporting in advance of annual negotiations. Ultimately, if these minimum standards cannot be negotiated and fulfilled, there may be instances where funding agencies may decide to withdraw from ESDP/ESIP developments. Al-Samarrai, Bennell and Colclough clearly spell out the current uncertainty regarding this issue [Box 28]. BOX 28 SWA TO EDUCATION: SOME CHALLENGES "... the increased use of sector wide approaches will involve some shift in funding agency transaction costs, away from project administration towards achieving greater aid co-ordination. Since the introduction of joint-financed programmes is presently judged to be desirable [...], it is likely that new uncertainties for programme actively will be generated by the participation of other agencies, each having their separate sets of interests and constraints." "... new challenges are implied for the task of monitoring and evaluation.... [The] task of identifying the impact of contributions from an individual funding agency becomes almost impossible. All the agencies providing system-wide funding must, by implication, become content with system-wide monitoring. Whether this will satisfy the accounting and auditing requirements for the use of aid funds remains for the present, uncertain." Source: Al-Samarrai. Bennell and Colclough, 1998 Education SWA are already having significant impact on the structure and outcomes of appraisal and review missions. The frequency of missions by individual funding agencies is declining and being replaced by multi-funding agency annual review processes, exemplified through the JRM/ARM in Ethiopia, pre-appraisal/appraisal exercises in Tanzania, bi-annual reviews in Uganda and annual education roundtable/review exercises in other parts of Africa and Asia. It is becoming clear that these exercises will only be effective if Government/funding agencies agree the anticipated outcomes in advance, especially avoiding perceptions that such meetings are only 'concerned with funding agency pledging'. Secondly there needs to be a common understanding of the information to be presented by Government in advance, highlighting the importance for early strengthening of education performance monitoring systems. Strengthening field monitoring systems It is becoming clear that the move away from project assistance towards SWA represents significant risk but also substantial opportunity. The partnership arrangements will involve complex and subtle judgements on the macro-economic situation, leadership potential and commitment, capacity assessments and financial and technical progress being made. These negotiations will involve building up trust with key national players and influencing events in subtle ways through sharing of ideas and experiences. This argues for careful building up of in-country capacity and continuity for monitoring ESDP/ESIP progress. Assessments by the World Bank indicate that SWA staff workloads are far greater than in project support design. It is estimated that a SWA initiative will involve staff in workloads of 25 to 30 weeks per annum compared to half that for project assistance. In addition, the ongoing monitoring workloads are significantly greater, alongside the need for staff continuity and consolidated country experience. Opportunities for posting technical advisers in education ministries and/or in aid management offices are worthy of examination. There can be advantages and disadvantages in doing this. There is growing evidence that the critical factor is not location but the ability to network effectively with Governments and funding agencies, to build up trust and contribute effectively to the ongoing negotiations and debate. These social/technical skills, especially an understanding of the process of policy/strategy development, need to be central to recruitment/selection policy. There is a danger that appointing personnel with a project management background could be counterproductive. If technical personnel are to be effective, they need to be able to leave some of their old baggage behind and change any mindsets they may have. Technical assistance: Roles and management The shift away from project assistance has significant implications for the role, skill-mix and management of technical assistance. Project aid created a tendency towards funding agency client centredness, a focus on narrow technical specialisms (as opposed to broader sectoral analysis) and a culture of immediacy where quick-fix inputs took priority over longer-term sectoral development. Another consequence was the absence of a formal reporting and management channel within the Government system. As a result, there sometimes has been a degree of mistrust within Government of technical assistance, perceived to represent the interest of the funding agency rather than the recipient. Education SWA represent an opportunity to eliminate funding agency attribution of consultancy and technical assistance support, especially foreign consultants. One approach is to set up pooled funds for TA, managed by Government with jointly agreed procurement arrangements. To a degree, this was attempted under the Tanzania ESDP but floundered on continuing suspicions amongst Government and other funding agencies that the process was being driven by one agency's interests. A second concern is the capacity of some Governments to manage TA effectively, especially transparent selection and recruitment of best-qualified personnel. Growing evidence points to the importance of continuity in any consultancy support programme. Continuity provides an opportunity to reinforce a climate of trust, secure collegiality between Government technical staff and consultants, alongside creating confidence amongst other stakeholders with regards to independence and quality of advice. This can be helped if a number of funding agencies jointly sponsor a consultancy support programme [Box 24]. Government leadership and management of consultancy support programmes have implications for the relationships between consultants, technical advisers in aid management offices and funding agency professional advisers and programme managers. Under project aid, advisers could largely overrule consultancy advice that did not comply with funding agency positions. Under these new arrangements, Government is entitled to accept and use consultancy advice (financed by funding agencies), which may not be consistent with the funding agency position. This situation becomes simply one of transparent dialogue and negotiation. In these situations, it is critical that funding agencies provide the breathing space for consultants to provide independent advice, including avoiding the creation of parallel communication channels between the agency and the consultant. It is becoming increasingly evident that the shift towards ESDP/ESIP is placing a premium on policy/strategic analysis and capacity building assistance. In the longer-term, as strategic negotiations and performance review exercises consolidate, there will be a further premium on technical assistance that can facilitate this process. These changes have implications for the sourcing of appropriate support for SWA formulation. It is likely that traditional sources of technical support (e.g. university education departments, education authorities, project management firms) will be supplemented by other sources such as specialist consulting firms, international accounting groups and broader development institutes. International accounting firms (most of which have a locally-based management consulting expertise) represent an under-developed resource, with the ability to offset frequent Government anxieties over large numbers of foreign consultants. Traditionally under British project aid, a large proportion of the consultancy support has been managed by managing agents. Much of these agents' expertise centres around recruitment of narrow, technical skills and project management experience. If pooled TA funds, common procurement arrangements and Government management of TA develop, the need for traditional management agent functions may decline. There is a danger that managing agents (especially those associated with a particular country) may recreate perceptions of control and, as with the funding agencies themselves, this might raise questions about consultant loyalties. Such a situation would call into question the Government as client and the kind of accounting procedures that a SWA seeks to develop. TA management functions need to be linked to assurances that the Government is the client, alongside transparent recruitment and accounting procedures. In the near future, managing agents could fulfil a significant role in building up Government’s capacity to manage and monitor consultancy/TA support programmes, including establishing databases and selection/performance monitoring procedures. Partnership principles The foregoing pages indicate that partnerships within an education SWA should be based on the following principles: - A shared vision; - Commitment to the process; - Mutual confidence based on strong leadership from Government and openness between partners; - Mutual trust (that may be strengthened by formal signing up agreed procedures); - The subordination of external agendas to the specific in-country agenda; - A coming to terms with what strategic negotiation actually means in practice; - The use of processes that facilitate the transition from a loose agreement to common development agendas, tighter operational instruments and conflict resolution (typically through in-country discussions, Government-funding agency consultative groups, periodic planned reviews and, initially, the use of instruments such as Statement of Intent, Memorandum of Understanding, Collaborative Work Programme, Code of Conduct as in Boxes 25, 26 and 27). The above list is not exhaustive; it could well be augmented in line with the characteristics listed at the end of Chapter 5. 7. Sector Wide Approaches to Education: Lessons Learned Historical perspectives Enabling national ownership/leadership Community consultation Analysis of policy and strategy requirements Design and planning structures: Strengths and limitations Institutional reform and capacity building SWA and decentralisation Strengthening SWA finance/budget planning Strengthening financial management/tracking systems SWA implementation: Management structures SWA: Changing organisation/management cultures Performance monitoring/evaluation system development Some lessons learned Historical perspectives It bears re-emphasis that education SWA in the context of this study are in their infancy. Documentation review suggests that of countries currently receiving external support to education, there are about 25 - 30 instances of SWA (e.g. SDPs/SIPs), mainly in Africa and Asia. The experience recorded in recent reviews suggests that the design and planning phase of a SWA type sector support programme can take two to three years. As a result, virtually all of the present examples and case studies are in the design/planning phase. There is therefore little experience of actual implementation of education SWA. The lessons learned and case study reviews therefore largely focus on design and planning issues. Where possible, potential implications for management and monitoring of the implementation phase will be highlighted. 1 In richer countries, education development generally evolves through a sector wide approach controlled by principles of good governance, transparency and accountability. Penrose (1998) also reminds us that there are many examples of international provision of programme aid (characterised by budget and balance of payments support) that predate project aid. Therefore, to argue for a SWA is to argue for practices that have been and still are in operation in many places. Enabling national ownership/leadership A lesson emerging from SWA development is the critical importance of national Governments owning and leading the process, alongside well-articulated sector policies/strategies and adequate programme management capabilities. Strong personal engagement of senior officials (e.g. Minister of Education, Permanent Secretary, Ministry of Finance, Local Government) is an absolutely necessary ingredient. Education ministry leadership, without finance ministries' support, appears insufficient, especially in situations where there is regular turnover of ministers of education. Preliminary evidence suggests that to date the level of ownership and leadership in ESDP/ESIP development has been variable. In some countries (e.g. Ethiopia, Cambodia, Mozambique, Uganda), leadership has been reportedly strong. In others, leadership has been more patchy (e.g. Ghana, Nepal, Tanzania), due in part, to lack of real commitment to reform and changes in top management. Sometimes the need to convince the leadership of reform has created a slowdown in implementation. Nevertheless, in the long term, strong commitment should benefit effective programme implementation. Experience indicates that it is worth waiting for senior management to internalise the SWA process before rushing to acceptance and/or implementation [Box 28]. There are dangers for national ownership and leadership if this is not done [Box 29]. There may also be risks to ownership and national commitment from high volumes of external technical assistance during SWA design and development. BOX 28 INTERNALISING THE SWA PROCESS The Uganda ESIP was developed over a period of eighteen months from May 1997 to November 1998 by Senior Ministry planning officers in wide-ranging discussion and collaboration with Governmental and non-Governmental stakeholders. Towards the end of this period it was decided to call a retreat with funding agencies; a meeting of Top Management was called to discuss preparations. The meeting included several prominent but very recently appointed actors: the Minister of Education, two Ministers of State and the Permanent Secretary. It was quickly realised that the Ministry would not present itself well to external agencies until it had 'internalised' ESIP, so, under instructions torn the Minister, members of Top Management were instructed to read, understand and thereby own the policy framework. This quickly took place and the internalisation process is now seen as a turning point in taking forward ESIP. The word 'internalise' has now become part of the lexicon at senior levels in the Ministry. Several lessons can be learned on nurturing leadership and commitment. Firstly, informing senior leadership of the benefits of reform and successes elsewhere (e.g. via EU Horizon 2000 Consultations, African Ministers of Education Meetings) can reinforce commitment and understanding. Secondly, information exchange via regional political/policy networks (e.g. regional development banks, UN and other multilateral organisations) could be nurtured. Thirdly, it is critical that funding agencies nurture trust at senior Government levels and avoid perceptions of 'crowding' Government, especially bilateral agencies that rightly or wrongly are often perceived as having particular agendas. BOX 29 TANZANIA ESDP: LOST LEADERSHIP? In 1996 and 1997 the Tanzania ESDP showed signs of being a strong case study for Government-funding agency partnership processes. A common SOP work programme was designed and jointly endorsed at a 1997 conference. Following a pre-appraisal exercise in early 1998, many funding agencies signed up to a SOP partnership paper outlining the rules of engagement. Twelve months later, implementation has yet to begin. What went wrong? Evidence points to uncertain ownership and leadership within the education ministry. The Ministers involvement had been intermittent with limited funding agency engagement. Government-funding agency meetings were often chaired by mid-level technical staff. Consistency in leadership was undermined by turnover in policy-making staff. Potential champions of reform were increasingly marginalised as vested interests recognised the impact of reform. Hard decisions on teaching service rationalisation, secondary education financing and standards setting and regulation were sidelined. Lack of internalisation and engagement has been compounded by a "parallel" SDP planning/management process which largely marginalised line directorates. Community consultation It is generally the case that SWA planning and design have mostly arisen from negotiation and planning at central levels, involving key central players. In several instances, it is reported that ownership and understanding at lower levels (e.g. regional authorities in Ethiopia, district/community groups under Tanzania ESDP, Pakistan SAP, Cambodia ESIP) is limited. In Mozambique ESSP and Uganda ESIP, community consultation has been slightly more extensive. Nevertheless, many NGOs and other community based organisations (CBO) have commented that the SWA seems to be driving them out; this often seems to be the case at planning stage. Whether or not these limitations will be overcome at the implementation stage remains to be seen. On a more positive note, there does appear to be increased consultation with NGOs/CBOs during country programming missions (e.g. ADB, DFID, World Bank) and a growing tendency to place NGO coordinators in agency field offices (e.g. DFID, East Africa). Without wider consultation, there is a danger that the views of key stakeholders will be missed, critical barriers to service delivery overlooked and opportunities to 'crowd in' community and other NGO providers missed. There is certainly scope for CBO and NGO participation during SWA implementation. One necessary action is to include community mobilisation and effective information exchange (e.g. community meetings, newsletters, etc.) at the design stage [Box 28]. This was an early feature in Tanzania but was not followed through [c.f. Box 27]. BOX 30 SWA TO EDUCATION: COMMUNITY CONSULTATION AND RESEARCH Do ESDP plans reflect the real priorities of community groups, especially disadvantaged groups? The conventional wisdom that poor communities value education as a vehicle for poverty alleviation can be challenged. Community consultation and participatory research can help illuminate key issues: - What are the key barriers to access to education services facing specific groups? Analysis of policy and strategy requirements At the risk of oversimplifying what happens in practice, it is possible to divide the policy and strategic planning processes and outcomes in SWA into two broad categories. One approach, typically evolutionary and flexible, (e.g. Pakistan SAP, Thailand/Indonesia SSDP, Uganda ESIP) focuses on setting broad policy and strategic targets with strong linkage to resource envelopes and the budget process. A second approach, based on a blueprint design, is perhaps more suited to a sub-sectoral programme (e.g. Nepal ESIP) and essentially treats the sector or subsector as a project with pre-defined activities and inputs. The latter appears to leave less scope for evolution and adjustment of policy and strategy and undermines the case for flexible budgetary support instruments. In practice, however, as was argued in Chapter 3, many SWA have characteristics of both the evolutionary and blueprint approaches (e.g. Ethiopia ESDP). It is therefore probably too early in the development of SWA to attempt any rigid classification of approaches; indeed, as countries develop their own contingency models, such a classification is probably unnecessary. A broad feature of many of the ESDPs/ESIPs is the absence of a long-term strategic vision, e.g. to consider processes and targets beyond the achievement of UPE. There are certain dangers in having no long-term ESDP perspective plan. In particular: - long-term financing implications over a 10-20 year period are rarely addressed; • reduction of any incentive to examine long-term resource utilisation strategies (e.g. teacher/classroom deployment policies); • reinforcement of a tendency to set unrealistic policy goals and time frames; • budgets tend to be based on incremental changes derived from historic patterns. The critical lesson to be learned is to invest greater time and effort in formulating a sustainable policy and strategic framework, taking account of long term projections of available resources and proposed institutional changes. This argues for greater policy and strategic dialogue at design stage, including clear priority setting, clear definition of anticipated long-term outcomes, clear sequencing and, most importantly, avoidance of a restrictive blueprint. With regard to the latter point, there is a danger that a blueprint approach will reinforce a tendency to focus on short-term improvements (which may not be sustainable) and input accounting, rather than output audit. In essence, a rigid short timeframe blueprint approach (characterised by formulation of master plans, rather than strategic frameworks) could end up reinventing the project approach in a different guise. Box 31 contains perspectives on some of the concerns expressed in the preceding paragraphs. BOX 31 SWA POLICY AND STRATEGY • "Focus on vision not blueprint; policy and programme need to evolve with a clear link between strategy, resources and budget process." • "Need for sound Ministry of Education/Ministry of Finance dialogue on medium-term expenditure frameworks and forward budget plans." • "Concern that World Bank disbursement processes and blueprint design are dictating the SWA process." • "Don't look at educational issues in isolation; education needs to fit within the broader public expenditure review framework". • "We need to encourage a long-term strategic view, including closer co-operation between MoE and Planning/Finance Ministries" • "We need to think in terms of the global situation, a 30-year time frame and to answer the question, 'Where do we want to be in 10 years time?'" • "Greater attention needed to cost analysis in SWA, including clear definition of the role of Government, communities and funding agencies in financing services" • "Too much attention to resource shifts (e.g. salary/non-salary, primary/tertiary), too little attention to service delivery constraints and incentives" Source: Interviews with DFID Advisers, October 1998 Design and planning structures: Strengths and limitations One fundamental issue concerns the most effective management systems for both SWA design and its implementation. A number of approaches have been adopted. One response has been to form parallel management systems for the design phase 2 (e.g. sector management teams, Tanzania; technical working groups, Uganda, programme management unit, Cambodia, etc.). This has been normally linked to various forms of steering committees and review groups. A second approach (Ethiopia, Ghana, Mozambique, Nepal, Zambia, and, more recently, Uganda) has been to integrate ESDP/ESIP planning (and implementation) processes into the regular, routine functions of the MoE. This leads to a more effective way of working, particularly during implementation. 2 Note: These parallel management systems should not be confused with the Education Sector Co-ordinating Committee (Fig 4.1) which plays a central co-ordinating role for the various stakeholders involved (Ministries, NGOs, Funding Agencies). A common outcome of the first approach has been lack of ownership and commitment within line MoE directorates and lack of effective linkages with finance and local Government ministries planning structure. Line directorates can feel marginalised and become resistant to change, unless there is strong senior leadership. A second common outcome has been a tendency to proliferate parallel staff incentive packages, similar to PIU arrangements. The second approach appears to be more effective in ensuring broad ownership of the ESDP/ESIP planning process as long as the respective planning directorates and management groups are not overloaded by additional work. The broad lesson learned is that SWA design/planning processes need to be institutionalised within existing organisational structures. To be most effective, there needs to be a clear delineation between long-term strategic planning and day-to-day operational planning within line directorates. The challenge will be to reorient line directorates (e.g. primary, secondary, etc.) to see planning rather than management and administration as a core function. A second challenge will be to avoid strategic planning units being relegated to short-term project or programme planning and administration functions. A second lesson to be learned is that far greater attention needs to be paid to integrating MoE organisational reforms (including planning and design functions) into broader civil service reform (CSR) programmes. CSR initiatives, especially encouraging line ministries to focus on policy and monitoring functions rather than traditional management and administration, can provide the impetus for necessary planning reforms. A broad characteristic (e.g. in Zambia, Tanzania) has been significant education ministry resistance to central organisational change. Alternatively, even where changes have been agreed as necessary, unforeseen delays can arise from putting them into operation (e.g. ministry restructuring in Uganda). Institutional reform and capacity building International development experience suggests there are always dangers in creating new institutional structures in order to manage and implement reforms effectively. This is as much a concern in ESDPs/ESIPs as in project or programme aid approaches. In order to avoid dangers of organisational duplication or replication, it is critical that institutional reform and capacity building objectives, targets and processes are built in to the design and planning stage of education SWA, including strong linkages with local Government reform programmes. In terms of SWA, institutional development needs to focus on three main issues: 1. Government capacity to lead the sector development processes, including strategic analysis and budgetary/financial analysis; 2. The creation of structures, systems and incentives in both public and private sectors, to manage and deliver education services; 3. The establishment of management systems, both within Government and funding agencies, which facilitate common management systems, through Government processes and procedures. The review of ESDPs/ESIPs gives a somewhat mixed picture on these institutional/capacity-building considerations. In some cases (e.g. Tanzania ESDP, Uganda ESIP, Ghana ESDP), capacity building plans appear central to the overall reform process. In other cases (e.g. Ethiopia ESDP, Pakistan SAP, Nepal/Zambia ESDP), capacity building objectives and strategies are less clear. The lack of clarity is due in part to a lack of consensus between Governments and funding agencies on the extent to which Government systems (particularly financial management/reporting/audit) can be trusted. A second constraint arises out of uncertainties over the longer-term directions of public/private partnerships in the financing and management of services, particularly for secondary and higher education. A third constraint is lack of clarity on a stratagem for effectively involving civil society in the planning and management of sector reform programmes. The critical lesson learned is that institutional development and capacity building need to be central to SWA planning and design; it should not be an afterthought. In particular, Governments and funding agencies need to agree on the broad guiding principles and policies of SWA institutional development and to take a broad comprehensive view, beyond simply organisational re-equipping and staff training [Box 32]. Institutional development and capacity building targets and outcomes need to be incorporated into SWA planning, alongside the traditional setting of education access, quality and efficiency objectives and targets. A third lesson is that pro-active mechanisms need to be established to ensure that institutional reforms remain central to SWA planning. It also needs to be recognised that education ministries alone cannot implement many essential policy and institutional arrangements (e.g. managerial decentralisation, accounting reforms, and staff incentives). Ensuring that these institutional reforms are supported by other parts of Government is critical to the SWA design and appraisal process. Accordingly, existing steering and management committees (e.g. central steering committees, Ethiopia ESDP, education sector co-ordination... committee, Tanzania ESDP, Mozambique ESSP) need to be not only broadly representational but also proactive in addressing and managing crosscutting institutional reforms. Strengthening the capacity of these inter-ministerial steering committees is critical for SWA institutional reform objectives. SWA and decentralisation In many of the countries adopting education SWA, various forms of decentralisation are in process. In larger federal countries (e.g. Pakistan, India, Ethiopia), this amounts to direct political decentralisation. In smaller countries (e.g. Tanzania, Uganda), managerial decentralisation is ongoing. A potential difficulty is that block grants to lower levels of the system may not be allocated according to proposed SWA priorities. At the same time (e.g. in Ethiopia ESDP), central earmarking of funds and by-passing middle levels of Government (e.g. states in a federal system) makes sector-wide planning problematic and potentially undermines local autonomy. The solution may lie in negotiated agreements (including poverty and needs-linked resource allocation formulae) between central and local authorities. A second solution may be early design and start-up of financial channelling and tracking systems (linked to a combination of conditional and unconditional grants) acceptable to both Government funding agency authorities. A critical debate is whether funding agency assistance for capacity building, often with large technical co-operation (TC) inputs for local Government reform initiatives, should be located in the education ministry or Local Government ministry as a support component for education SWA. An associated issue is whether technical assistance funds should be channelled through Government systems, with appropriate earmarking at regional/provincial/district levels. Box 33 indicates other possibilities that are currently in operation. BOX 33 POSSIBLE RESPONSES TO SWA/DECENTRALISATION CONCERNS - Earmarking funding agency support programmes, both recurrent/development, channelled through finance ministries (e.g. Channel I/II Ethiopia ESDP) - Setting up systems of conditional recurrent/development grants (e.g. Uganda ESIP) - Establishing effective negotiation mechanisms between federal/regional and regional/provincial levels for block grant allocation (e.g. Vietnam) - Negotiating poverty and performance/needs based regional/provincial resource allocation formulae (e.g. Ethiopia, Vietnam, Tanzania) - Establishing regional/provincial/district managed capacity building funds, channelled through) central ministries (e.g. Indonesia SSDP) - Channelling capacity building funds direct to lower levels, outside the Government budget, essentially as a traditional TA project/programme Source: based on Cassels, 1997, EU Horizon 2000, 1997, Gould et al, 1998 Strengthening SWA finance/budget planning A major weakness of many sector-wide developments has been the absence of a clear medium term expenditure framework (MTEF), including education-spending projections. This situation is often exacerbated when finance ministries and funding agencies are reluctant to make long-term financial commitments. A further complication arises if levels of support are directly related to sector performance. Informants pointed to the lack of clear linkage between SWA strategy, resource availability and the budget process as a primary fundamental concern. Recent PER exercises (e.g. Tanzania, Ethiopia, Uganda) reflect these concerns [Box 34]. In contrast, in countries where SWA are beginning to be implemented successfully (Ghana and Uganda), the MTEF is central to the process. The critical lesson learned is that ESDP/ESIP financial planning cannot be conducted in isolation. A key constraint on improved finance/budget planning is the frequent absence of high-level finance/budget analysis and planning capacity within both finance and education ministries. This situation is exacerbated in federal states where such capabilities at regional/provincial levels tend to be weaker. In education ministries in particular, these limitations undermine effective advocacy and dialogues with finance ministries. BOX 34 PUBLIC EXPENDITURE REVIEWS "If Government has no effective framework that establishes consistency between its stated sector policies and the medium term strategy for public expenditure, the commitments regarding future financing of the sector lack any solid foundation [...] Overall budget strategy becomes driven more by funding agency reaction to shortfalls" "There remains the need for better co-ordination and synchronisation of the ongoing activities by the authorities on the implementation of a medium-term expenditure framework, public investment programme and the sector development programmes [...]. The role of increased private sector participation in the SDP sectors need to be assessed on a continuing basis." "Budget and release of funds will be in line with the rolling medium-term expenditure framework, maintaining a minimum 31% of recurrent discretionary expenditure for the education sector over 1998-2003 [...], extending the rolling MTBF and work plan to cover all development spending in line with the framework and A fundamental question is how can funding agencies best support improved finance planning within an SWA? One strategy (growing in frequency) is active support for and participation in annual Public Expenditure Review (PER) exercises. Effective examples of this approach include Ethiopia, Tanzania, Ghana, Uganda and Rwanda PER exercises in 1998/99. A second strategy is the active nurturing of finance ministry participation in ESDP/ESIP inter-ministerial planning and steering committees [Box 35]. Where accepted by Governments, a complementary approach is early capacity building (possibly via technical assistance) for education ministries. This may be complemented by short-term technical assistance (with an education brief) with the finance ministry itself. BOX 35 LINKAGES: MINISTRY OF EDUCATION - MINISTRY OF FINANCE Planning processes increasingly recognise the importance of joint education finance ministry partnerships in SWA. One mechanism is to provide support for the annual PER exercise, Recent examples where this has been done include Tanzania/Uganda 1998, Rwanda, 1998 and Ghana/Ethiopia 1998. As a Minister of Education recognises: "Although broad involvement has been a feature of the development of ESIP, In reality the success of the programme will very much depend on how well Government performs in the financing and budgeting arena. Thus, one of the most important partnerships is actually an inter-sectoral one: that between the Ministry of Finance, Planning and Economic Development and Ministry of Education and Sports." Professor A Nsibambi, Minister of Education and Sports, Uganda Address to Workshop of the Council for the Development of Social On a broader front, evidence and experience suggests that the strategic linkage between education sector planning and broader poverty alleviation strategies is, at best, tenuous. In most of the ESDP/ESIP documents, poverty/education linkages are implicit rather than explicit. There is an implied assumption that focusing on resource shifts (e.g. increased basic education spending shares) may be sufficient. There is growing evidence (e.g. Dollar and Pritchett, 1998) that social sector spending volumes do not correlate strongly with improved poverty reduction and sectoral outcomes. How can funding agencies best assist in securing effective linkage between education SWA and broader poverty eradication plans? One strategy is to support the redesign of poverty assessments so that they focus on poverty-related constraints to equitable access and quality in education service delivery. A second thrust might be support for more analytical work on poverty-indexed resource allocations and impact monitoring. Further analytical work is needed on a number of SWA/poverty issues. Firstly, can discrete poverty-focused programmes/projects for disadvantaged groups be reconciled within an education SWA? Secondly, if technical assistance is required is it best located within education ministries or elsewhere (e.g. planning commissions, poverty units)? Strengthening financial management/tracking systems A pure education SWA is fundamentally predicated on the assumption that funding agency support will be pooled and channelled through Government financial management systems. The reality and practice in current ESDP/ESIP plans is that many funding agencies do not consider Government financial management and reporting systems sufficiently robust. As a result, a number of hybrid systems have emerged. The danger is that if these parallel financial management systems are prolonged, the Government's own systems will be drained of capacity and the incentives to strengthen Government financial systems will wane. A number of compromises are currently in operation. Under the Ethiopia ESDP, there is a three-channel system (through MoF, through MoE and direct) with various degrees of earmarking. Another compromise is to restrict budget support to basic education only (e.g. BESIP, Nepal) with other sub-sectors funded through project modalities. Also in Nepal funding agencies are financing a percentage of support through Government systems (the rest through projects) in order to test the robustness of the system. In Ghana, some funding agencies give project funds: EC gives structural adjustment support while DFID provides finances through budgeted systems. In the Mozambique ESSP, a number of funding agencies are providing budget support with varying degrees of earmarking. In Uganda one purpose of the first review of ESIP performance (April 1999) was to propose the drawing up of a single set of undertakings to which Government and all budget-supporting funding agencies will sign up to, while Government maintains commitment to ongoing projects during transition. Whilst appreciating funding agency concerns over financial accountability and audit, continuation of a proliferation of financial management systems raises a number of concerns. Earmarking support for activities undermines Government ownership and decision making and essentially amounts to a set of co-ordinated projects rather than an SDP. In addition, earmarking continues the prevalence of funding agency attribution to activities and inputs, rather than shared Government/funding agency responsibility for achieving sectoral objectives and outcomes. It bears re-emphasis that various financial routes/channels reduce financial flexibility (undermining the basis of flexible budgetary support), increase the administrative overload and are inherently capacity draining. This continued funding agency concern over financial management matters perhaps makes too much over the issue of fungibility. There appears to be little correlation between earmarking education support and actual increased spending on the sector. In addition, improved sectoral outcomes are often more strongly correlated with Government commitment to reform than with targeting/earmarking education aid. Also, improved education outcomes appear to depend more on the quality and effectiveness of spending than on overall quantity. All aid is fungible, whether given as projects or as sector wide budget support [Box 36]. BOX 36 FUNGIBILITY: ARE FUNDING AGENCIES LOOKING THE WRONG WAY? "Funding agencies should take it for granted that their financing is fungible because that is reality." "Fungibility is an issue only if the objectives of funding agencies and recipients are different." "Funding agencies must form an opinion on the allocation and effectiveness of a country's public spending." Source: Dollar and Pritchett, 1998 In the medium to long-term, there is strong case (e.g. as in Uganda, ESIP, Thailand/Indonesia, SSDP, Pakistan SAP) for showing trust in and commitment to using Government fiscal channels. A critical issue here is the inclusion of financial management and reporting capacity building as a central part of programme design. DANIDA support for financial accounting (under Nepal ESIP) is a good example. A second issue is the introduction of regular monitoring-review of overall and sectoral expenditure patterns against agreed broad guidelines. These guidelines, which frequently appear in SWA literature [Box 37], should be jointly negotiated within clear financing formulae and information exchange systems. BOX 37 SWA TO EDUCATION: DEVELOPING FINANCIAL MANAGEMENT CAPACITY - Early funding agency commitment to use Government financial management channels, alongside agreed time frames for phasing out alternative routes - Agreements on broad and sectoral expenditure patterns linked to clear guidelines and financing formulae - Minimising subsequent departures from agreed budgetary allocations, alongside effective contingency planning for revenue shortfalls - Early implementation of capacity building plans for financial management and reporting - Negotiated agreements on timeliness of financial reports and independent financial audit mechanisms - Review and reform of funding agency financial management/audit systems, consistent with jointly agreed financial channelling/management reforms Source: extracted from EU Horizon 2000, 1997, Gould, Takala, Nokkala, 1998 SWA implementation: Management structures Many of the education SWA remain at the planning or pre-implementation stage. It is therefore premature to draw many firm lessons on appropriate and effective management arrangement structures for SWA implementation. Early signs suggest that agreeing common management structures will be a central issue [Boxes 38 39]. The emphasis to date has been on trying to harmonise funding agency procedures. Noonan (1997) highlights the divergence between funding agency statements and practice, especially regarding financial management and accounting. Another issue is that of attribution: the need, often for 'back home' political purposes, for funding agencies to be clearly associated with particular inputs/activities and outcomes. Although widely quoted as an issue, funding agencies seem to be polarised on this, some (GTZ, CIDA) using it as an argument to fuel broad concerns with the SWA, others not seeing it as a problem: "Which is better: we constructed five schools, or we developed the whole sector?" [Asko Luukkainen, Director for Sector Policy, Ministry of Foreign Affairs, Helsinki]. BOX 38 PROPOSED BESIP MANAGEMENT STRUCTURES, ZAMBIA - Joint Steering Committee Meeting: Meetings quarterly. Chaired by the Minister of Education, other participants: funding agency representatives, team leaders and a management team. Subject to produce bi-annual reviews. - Joint Programme Development and Implementation Monitoring Committee: Meetings monthly. Chaired by PS, other participants: funding agency representatives, team leaders and management team. - Ministry Senior Management Group: Meetings bi-monthly. Chaired by PS. - Interim BESIP Management Team: Chaired by DPS, other participants: head of finance and projects section, planning and research officer, technical assistance. Functions: finance and budget, advisory, decision making, project supervision and development, funding agency co-ordination, manage decentralisation, monitoring and evaluation, preparation of reports, liaise with planning/research. As with financial management, SWA should be predicated on the use of Government management systems. The above-mentioned concerns, combined with the existence of various funding agency-financed project/programme units during transition towards SWA, can create difficulties in resolving management issues. Various management strategies are being used. In the education SWA of Mozambique, Uganda, Ghana and Zambia, management is to be conducted through normal, education ministry management-organisational structures [Boxes 38, 39]. In other cases (e.g. Tanzania, Cambodia, Indonesia, Thailand), stand-alone 'super' PIUs/PMUs are being considered or are in place. These are normally extensions from the earlier planning/design phase and are often a funding agency response to the perceived weaknesses of ministries' management systems. In the longer-term, the use of strengthened education ministry management systems is critical. Continuation of 'super' PMUs will be capacity draining and may undermine ownership by line directorates, which feel marginalised by them. The critical issue will be to negotiate common country-specific, SWA management solutions between Governments and funding agencies. These solutions will need to include a clear timeframe for incorporating existing project units into an agreed structure and a well-designed, management capacity building programme. JOINT STATEMENT ON COMMON PROCEDURES FOR THE MOZAMBIQUE ESSP "To facilitate timely and efficient implementation of the programme, it will be implemented using Government procedures and management structures, where these are acceptable to funding agencies. In cases where the systems are not acceptable or where the effectiveness of the system is constrained by weak institutional capacity, funding agencies are willing to work with the Ministry to correct the problem. The attainment of common implementation procedures should be looked upon as a process and should not be forced. Should the use of Government procedures prove successful, all funding agencies would be encouraged to use them." Source: Five-Year Education Sector Strategy Plan for Mozambique, 1998 SWA: Changing organisation/management cultures Accepting the principle of using Government management structures does not imply that the existing management processes and organisational culture will be necessarily effective in implementing education SWA. The purer, more evolutionary SWA (as opposed to the blueprint SIP approach) creates a more uncertain planning environment. The somewhat bureaucratic, top-down management processes (which exist in Governments and funding agencies alike) will become increasingly inappropriate for SWA. The more adaptive SDPs (e.g. Uganda, Ghana, Indonesia, and Pakistan) will demand more adaptive, participatory and organic processes and structures (see Box 40). \| \| Mechanistic (blueprint) \| Adaptive (evolving) \| \|----------------------\|-------------------------\|---------------------\| \| Environment/Tasks \| Certain/routine \| Uncertain/innovative \| \| Planning \| Comprehensive \| Incremental \| \| Decision making \| Centralised \| Decentralised \| \| Leadership style \| Command \| Participatory \| \| Communication \| Vertical/formal \| Interactive/informal\| \| Staffing basis \| Functions \| Objectives \| \| Structures \| Power \| Knowledge \| \| Staff capacity \| Low tolerance of uncertainty/change \| High tolerance of uncertainty/change \| Source: Middleton et al, 1987 An historical review of ESIP/ESDP planning histories suggests that systematic assessment of management cultures is a somewhat neglected area. There is an assumption that innovative reforms can somehow be bolted on to existing bureaucracies. Particularly in bureaucracies with a long tradition of command/control (e.g. Cambodia, Tanzania), this has proved extremely problematic, especially at pre-implementation stage where the implications for individual power and influence become more apparent. There is a strong case, especially in evolutionary SWA type programmes to undertake an extensive change management assessment and process (as a central part of capacity building) in advance of implementation. This is recognised by many funding agencies, including World Bank [Box 40]. Performance monitoring/evaluation system development A major difference between SWA and traditional project/programme aid approaches is that the former places far greater emphasis on the monitoring/audit of outcomes and objectives as opposed to accounting for inputs and activities. An effective education SWA is predicated upon an agreed set of performance indicators and an adequate EMIS and monitoring and evaluation system. Experience suggests that monitoring needs to be kept simple and restricted to key indicators. Simultaneously, the performance indicators need to be comprehensive, including measures of legislative/regulatory, capacity building, and service quality and efficiency gains. Monitoring systems need to be broad, including scope for independent audit, beneficiary assessment and cross checking. Ongoing ESDPs/ESIPs show these broad features. In the Ethiopia ESDP, there are around twelve indicators focusing on access, quality, efficiency and budget shares. The Tanzania ESDP is similar but incorporates some management development indicators. Various BESIPS (e.g. Nepal, Zambia) focus on similar system performance indicators. A broad review of other sectoral and sub-sectoral ESDPs (e.g. Cambodia, Bangladesh, Belize, and Vanuatu, Malawi), adopt a similar format whereby performance targets at the end of a five-year period are specified with measurable indicators and verification measures. The Uganda ESIP and to some extent, Ghana ESDP and Mozambique ESSP adopt a different approach whereby performance indicators are reviewed and agreed on an annual basis, as part of the annual joint review process. These two distinct approaches to performance monitoring reflect the broad distinction between the more mechanistic blueprint approach and the adaptive evolutionary mechanisms. A potential advantage of the adaptive approach (especially when release of both Government/funding agency development spending is dependent upon achieving performance targets) is that there is a far greater incentive for both effective monitoring data collection and system development. The blueprint approach (where aid tranching is less prevalent) provides far less incentive for monitoring system development and implementation. There is a danger in the latter that plans and targets become 'cast in stone' undermining incentives for strategic review and revision of targets. according to changing circumstances. It can also be argued that monitoring and evaluation are too important to be left to planners [Box 41]. BOX 41 SWA PERFORMANCE MONITORING: SUSTAINABLE INSTITUTIONS A clear tendency is to locate a small monitoring capability within the education Planning Unit doing little more than analysis and collation of routine data. How can the scope be broadened and monitoring institutionalised? The case of Papua New Guinea provides useful pointers. In the early 1980's PNG embarked on a comprehensive sector reform programme. The need to institutionalise sector performance monitoring was recognised early. In 1992, the education ministry established a standing task force of very senior technical staff as an implementation Monitoring Group (IMG). The IMG, with multi-funding agency support, is responsible for preparing quarterly and annual performance reports for the Minister, drawing on the existing EMIS and special surveys and studies. The IMG is still functioning effectively in 1999. Source: ADB, 1999 A broad feature of ESDP/ESIP monitoring system development is the relatively little attention being paid to capacity building objectives and changing organisational/management processes, in particular, targets related to strengthening inter-ministerial co-ordination processes (education, finance and planning) are rarely specified. Similarly, targets related to improved regulatory frameworks and mechanisms (e.g. school inspection, school attendance, and dissemination of school effectiveness information) are rarely detailed. In broad terms, there is a need to design and implement a phased and sequenced ESDP/ESIP performance matrix, which sets out intermediate system performance targets and processes. During the design phase in Ghana and Uganda ESDP/ESIP Work Plans were developed in the form of policy matrices (later extended into Task Management tools which currently guides working groups in task identification, timing and action). On this basis, progress and performance can be monitored and evaluated against targets as a part of the process for budget release [Box 42]. In the preparation of action plans for monitoring/evaluation of education SWA, several monitoring issues need to be addressed. Very few of the ESDPs/ESIPs are far enough advanced to examine how far key monitoring issues are being addressed. One concern is whether or not difficult decisions (e.g. teaching service down-sizing) should be front-loaded in order to assess Government commitment. A second issue is whether or not benefit monitoring and evaluation (BME) capacity (including financial monitoring) should be a precondition to embarking on an education SWA. A third issue is whether or not BME operations (often seen as the schools inspectorate) should be re-positioned outside the education ministry, including broader stakeholder representation and audit functions. BOX 42 PERFORMANCE BASIS FOR ANNUAL BUDGET RELEASES - Budget and release funds in line with the rolling medium-term expenditure framework, maintaining a minimum agreed percentage of recurrent discretionary expenditure for the education sector over the period 1998-2003. - Extend the rolling medium-term expenditure framework and work plan to cover all development spending (GoU and funding agency) in education, prepare budget, make releases and demonstrate that expenditures have been made in line with the framework and sector Work Plan, without shifting expenditures to development activities outside the three year framework and Work Plan for education. - Convene meetings at regular periods (e.g. every six months) with education funding agencies to review progress reports on the achievement of time bound indicators as set out in the sector programme work plan and the education policy and strategic framework. - Convene meetings annually with relevant education funding agencies to share draft budget submissions and to agree performance indicators (conditions) for budget support, with interim monitoring missions as jointly agreed. Source: Education Sector Support Submissions Ghana and Uganda, DFID, 1998 Some lessons learned This chapter has argued that as sector wide approaches to education are beginning to shift from planning into implementation, a number of lessons are being learned. They include: - The importance of national governments owning and leading the SWA process; - The need to include decentralisation, community mobilisation and effective information exchange in the planning stages; - The need to allow time (up to two or three years) to develop a strategic framework that is based on a long term strategic vision and that is most expedient for the sector; - The need to build institutional reform and capacity building objectives, targets and processes into the design and planning stages of education SWA; - Decentralisation, political and managerial, strengthens the operational ability of countries undertaking education SWA; • Successful SWA implementation depends on there being a robust finance/budget planning system that includes an operational medium term budget framework and active participation in annual Public Expenditure Review exercises; • The importance of using strengthened education ministry management systems by all stakeholders (implying the avoidance of parallel management structures, the need to develop management capacity building programmes and active adoption of adaptive, participatory, organic management processes and structures); • An effective education SWA is predicated upon an agreed uncomplicated set of performance indicators and an adequate EMIS and monitoring and evaluation system. Lastly, there is a historical imperative for adopting sector wide approaches. They were used in support programmes in the 1940's and 1950's, usually following wars and other national disasters. They continue to be used internally by richer countries to manage the key human development sectors of health and education. We conclude, therefore, that it would be inconsistent to argue that a lesser approach is adequate for countries that wish to emerge from the shadow of a more pervasive disaster: overwhelming poverty. Annex 1: Education SWA - A Bibliography Documents not in the public domain Country List of Programmes/Projects There is a small but rapidly growing general literature on Sector Wide Approaches (SWA); likewise, but to a much smaller extent, for education SWA. As can be seen below, the majority of the literature is not in the public domain and is therefore not widely available. The authors wish to express their appreciation to the many people who generously shared documentation. The small 'archive' listed below ensured that the study was much better informed than it might otherwise have been. Documents in the public domain (or soon to be) Asian Development Bank (June 1996) Review of the Bank's Programme Lending Policies, ADB, Manila Asian Development Bank (1997) Emerging Asia, ADB, Manila Asian Development Bank (1998) Medium Term Strategic Framework: First Draft, ADB, Manila Asian Development Bank (1998) Support for Human Development, ADB, Manila Asian Development Bank (1999) Progress Report: Education Reform, Papua New Guinea, ADB, Manila Asian Development Bank (1999 in press) Key Governance Issues, ADB, Manila Asian Development Bank (1999 in press) Social Sector Profiles (Cambodia, Lao PDR, Vietnam, Thailand), ADB, Manila Asian Development Bank (1999 in press) Social Sector Profiles: Overview Paper, ADB, Manila Asian Development Bank (various years) Loan Documentation: Kyrgyz, Mongolia, Indonesia, Manila, ADB, Manila Association for the Development of Education in Africa, (1998) "ADEA Working Groups", ADEA Newsletter, Vol. 10, No 4, Oct-Dec 1998 Cassels, Andrew (1997) A Guide to Sector Wide Approaches for Health Development: Concepts, Issues and Working Arrangements, World Health Organisation (with DANIDA, DFID, EC), Washington Commonwealth Secretariat (1997) The Role of Professionally Managed Government: Action for Human Resource Development, Commonwealth Secretariat, London Department for International Development (November 1997) Eliminating World Poverty: A Challenge for the 21st Century: A Summary, DFID, London Department for International Development (May 1999) Learning Opportunities for All: A Policy Framework for Education, DFID, London Department for International Development Co-operation, (1998) Finland’s Development Policy 1997, Ministry of Foreign Affairs, Helsinki Department for International Development Co-operation, (1998) Finland’s Development Assistance 1996 and 1997, Ministry of Foreign Affairs, Helsinki Department for International Development Co-operation, (1998) Guidelines for Programme Design, Monitoring and Evaluation, Ministry of Foreign Affairs, Helsinki Dollar, David and Pritchett, Lant (1998) Assessing Aid: What Works, What Doesn’t, and Why, Oxford University Press for World Bank, Oxford and Washington Education Division, ODA (1990) Into the Nineties: an Education Policy for British Aid, ODA, London Education Division, ODA (January 1994) Aid to Education in 1993 and Beyond: an ODA Strategy Paper, ODA, London Gould, Jeremy, Takala, Tuomas and Nokkala, Marko (1998) How Sectoral Programs Work, Policy Papers 1/98, Institute of Development Studies, University of Helsinki, Helsinki Government of Uganda (1998) Education Strategic Investment Plan 1998 - 2003, Ministry of Education and Sports, Kampala Government of Uganda (1998) ESIP Work Plan, Education Planning Department, Ministry of Education and Sports, Kampala Harrold, Peter and Associates (1995) Sector Investment Programs, World Bank, Washington Heyneman, Stephen P. (1999) "The sad story of UNESCO's education statistics". International Journal for Educational Development, Vol. 19, No 1, 65 - 74 Jones, Phillip W., (1999) "Globalisation and the UNESCO mandate: multilateral prospects for educational development", International Journal for Educational Development, Vol. 19, No 1, 17 - 25 Middleton J. and Rondenelli D., (1987) Managing Change in Education Projects, World Bank, Washington Mundy, Karen (1999) "Educational multilateralism in a changing world order: Unesco and the limits of the possible". International Journal for Educational Development, Vol. 19, No 1, 27 - 52 Republic of Mozambique (April 1998) "Education Sector Strategic Plan 1997 - 2001: Reviving Schools and Expanding Opportunities", Ministry of Education, Maputo Secretary of State for International Development (1997) Eliminating World Poverty: A Challenge for the 21st Century, White Paper on International Development, Stationery Office, London Short, Clare (28 May 1997) "The role and functions of the Department for International Development", Speech at the School of Oriental and African Studies, University of London, DFID, London Short, Clare (26 June 1997) "Eliminating Poverty - A Challenge for the New Millennium", Speech at the Commonwealth Institute, DFID, London Short, Clare (30 June 1997) "Democracy, Human Rights and Governance", Speech at the University of Manchester, DFID, London Short, Clare (8 July 1997) "Development and the Private sector: a Partnership for Change", Speech at the Institute of Directors, DFID, London Short, Clare (10 July 1997) "World Population Day Address", Speech at the World Population Day Reception in the House of Lords, DFID, London Social Development Division, DFID (1998) Social Development: Factsheet, DFID, London UNESCO (1998) Inception Report: Monitoring of Education Reform: Kazakhstan, UNESCO, Paris Watson, Keith (1999) "UNESCO's vision for education in the twenty-first century: where is the moral high ground?". International Journal for Educational Development, Vol. 19, No 1, 7-16 World Bank (1998) Review of Public Finances, World Bank, Washington World Bank (1998) Public Expenditure Review: Tanzania, World Bank, Washington Documents not in the public domain [The following documents comprise seminar papers, official reports, internal memoranda, letters, e-mail communications and booklets, most of which originate from Governmental and agency sources. We are grateful to have received permission to use these papers, which, so far as we are aware, are not generally available.] Alexis, Marline (18 December 1997) "Next Steps in the Common Implementation Arrangements" E-mail to Mick Foster and others. World Bank Al-Samarrai, S., Colclough, C., and Bennell, P. (1998) An Evaluation of British Aid to Primary Schooling 1988 - 1998, DFID, London Andersen, Ole Winckler and Christensen, Olav Rex (June 1997) "Financial Accountability Aspects of Sector Programme Support: Danish Policies and Experience", Technical Advisory Services, DANIDA, Copenhagen Antoniou, Jim and Associates (undated, 1998?) The Sector Study, OHP Presentation, UNESCO Asamoa-Baah, A and Nabarro, D (1998) "Theme Group 1: How are the Development Partner (Donor) Agencies Changing their Practice?", International Technical Working group on Sector Wide Approaches for Health Development Bhatia, Anita and Okidegbe, Nwanze (May 1997) "Sector Investment Programs", SPA Donors Meeting June 1997, Africa Region 16 May 1997, World Bank Bird, Bella (March 1999) "Will the Poor Benefit? Some Key Questions to have Answered in a SWAp Process", DFID East Africa, unpublished Cassels, A and Janovsky, K (May 1998) "Sector Wide Approaches, Priority Programmes and Health Outcomes: An attempt to clarify (some of) the debate". Working Note, Geneva CEC (UK) and FTP (Finland) (June, 1998) "Proposal for learning and reflection process on the Education Sector Development Programme (ESDP) preparation in Ethiopia" Clarke, David J (19 August 1998) "Education Sector Wide Approach Study: (Notes on Bangladesh, Kiribati, Vanuatu)", Letter to M Seath DFID, unpublished Cunningham, Roger (16 July 1998) "Sector Wide Approaches: Notes on the Caribbean", E-mail to M. Seath, DFID, unpublished DAC Working Party on Gender Equality (May, 1998) "Workshop Document No 4: Sector Programme Support and Gender Analysis", Workshop on Integrating Gender Issues in Programme Aid, Sector Investment Programmes, Market Reform and other forms of Economic Policy Assistance, Paris Demery, Lionel and Walton, Michael (Draft, December, 1997) "Are Poverty and Social Targets for the 21st Century Attainable?", Paper prepared for DAC/Development Centre Seminar on Key Elements in Poverty Reduction Strategies, Paris, 4-5 December 1997, World Bank Department for International Development (1998) Education Sector Support, Programme Submissions (Ghana, Uganda), DFID, London, unpublished Department for International Development (March 1998) SAPPII Indicator Workshop 18-20 March 1998: Report, DFID, London Department for Policy and Legal Issues (July 1995) Sector Programme Support: Background Document to SIDA Policy, SIDA, Stockholm Dublin Theme Group 4 (D4) (9 June 1998) "SWAps and Intersectoral Dimensions of Health: Feedback on Geneva Brainstorming Workshop", Geneva Education and Culture Bureau, Gambela (1998) Gambela Peoples' Regional State Five-Year Educational Plan 1988-1992, Gambela, Ethiopia Education and Culture Bureau, Gambela (March 1998) Education Sector Development Program 1990-1994 E.C. (1997/98 - 2001/02), The Gambela Peoples' National Regional State, Gambela, Ethiopia Education Department, Punjab (undated, 1998?) "Restructuring, Strengthening and Decentralisation of Elementary Education in Punjab", Seminar Notes, Government of the Punjab Education Experts Group of the Commission and Member States (21 April 1998) "The Birth of a Code of Conduct", EU Horizon 2000 Meeting, Brussels Education Sector Development Program (11 - 29 May 1998) "Ethiopia Revised Aide-Memoire: Joint Donor Technical Assistance Mission for Support of the Ethiopian ESDP", Addis Ababa Education Sector Development Program (18 February 1998) "Ethiopia Aide-Memoire: Third Joint Donor Technical Assistance Mission for Support of the ESDP: Revised Draft", Addis Ababa Education Sector Development Program (19 February 1998) "Annex 3 - Implementation Arrangements for ESDP - Revision of the PAP: Draft", Addis Ababa Education Sector Development Program (1998?) "Annex 4 - Economic Assessment", Addis Ababa Education Sector Development Program (1998?) "Annex 7 - ESDP Key Performance Indicators", Addis Ababa Education Sector Development Program (2-20 February 1998) "Annex IIb - Comments on Regions' Plans: Capacity Building", Addis Ababa Education Sector Development Program (9/10/98) "Ethiopia Aide-Memoire: Second Joint Donor Technical Assistance Mission for Support of the ESDP: Draft", Addis Ababa Eeckhout, Marion (1996) Sectoral Budget Support, Economic Structure and Employment Department, Macro-economic Analysis Division, Ministry of Foreign Affairs, The Hague Elkjaer, Kjeld (March 1997) "Sector Programming", UNDP Accountability Initiative, Harare EU Development Council (1993?) "Resolution on Education and Training", Development Council Resolution, Brussels EU Development Council (November 1996) "Human and Social Development and EU Development Cooperation", Development Council Resolution, Brussels EU Horizon 2000 (April 1998) "The birth of a Code of Conduct", Meeting of Education Experts of the Commission and Member States, Brussels EU Horizon 2000 (November, 1997) "Establishing an Education Sector Development Programme: Provisional Guidelines", Meeting of Education Experts of the Commission and Member States, Brussels EU Horizon 2000 (October 1996) "Sectoral Development Programmes for Education: 'Platform' for SDPs", Meeting of Education Experts of the Commission and Member States, Brussels Foster, Mick (1994?) "Seminar on Deepening Structural Reforms and Policies for Growth in Africa: The Broad Sector Approach", ODA Foster, Mick (1998?) "What have we Learnt from Application of Sector Approaches in Africa?", Talk to Asia Regional Officers, DFID Foster, Mick (February 1999) "Seminar on Sector-Wide Approaches: Linking Macro-Economic Concerns with Sector Strategies and Objectives, Oslo 9-11 Feb 1999", Report circulated within DFID, unpublished Foster, Mick (October 1998) "Africa Division Economists Meeting, Wed 30th Sept 1998", Report on Meeting, DFID, unpublished Foster, Mick and Merotto, Dino (1998?) "Partnership for Development in Africa: A Framework for Flexible Funding", DFID, unpublished Government of Ethiopia (November 1996) "Education Sector Review: Synthesis and Summary", Ethiopia Social Sector Studies, PHRD Project Office, World Bank and Government of Ethiopia, Washington and Addis Ababa Government of Mozambique/Donor Agencies Group (Oct 1998) PROAGRI Mozambique: First review of Workplans and Budgets, Aide Memoire, Government of Mozambique, Maputo ITWG on Sector Wide Approaches for Health Development (1998) "Draft Programme of Work", International Technical Working Group on Sector Wide Approaches for Health Development ITWG on Sector Wide Approaches for Health Development (1998) "Terms of Reference", International Technical Working Group on Sector Wide Approaches for Health Development ITWG on Sector Wide Approaches for Health Development (1998) "Theme Group 2: Draft Scope of Work", International Technical Working group on Sector Wide Approaches for Health Development Lister, Stephen (January 1998) "Implementing Sector Development Programmes in Ethiopia: Draft", DFID, Government of Ethiopia McGurk, Deborah (31/12/97) "Tanzania: SPA Focal Cases for Common Implementation Arrangements", letter to Mick Foster, DFID, unpublished Ministry of Education and Sports, Uganda (1997-1999) Numerous Papers generated by Uganda ESIP (Source: Murray Macrae) Ministry of Education, Ethiopia (December 1997) Program Action Plan for the Education Sector Development Program, Republic of Ethiopia, Addis Ababa Ministry of Education, Ghana and DFID (June 1998) "Ghana: Education Sector Support", Accra and London Ministry of Education, Tanzania (1996-1999) Numerous Papers generated by Tanzania ESDP (Source: Mike Ratcliffe) Ministry of Finance, Ethiopia (8 July 1998) Financial Reporting Systems on the Use of Donor Funds: Interim Report, Ministry of Finance, Addis Ababa Morris, Ian P. (March 1998) "Education Reform in Pakistan: Pushing the Envelope: A review of Priorities and Strategies for Education under Pakistan's Social Action Program", Comparative and International Education Society Annual Conference, University of Buffalo, NY State Oksanen, Riita and Lonqvist Anders (18 May 1998) "Harmonising Requirements and Procedures among Potential Funding Agencies Supporting Education and Health Sector Development Programmes in Ethiopia: Final Report", FTP International Ltd Operations Evaluation Department, World Bank (1990) "The Sustainability of Investment Projects in Education", World Bank internal document, unpublished Orbach, Eliezer (?) (1997?) "Improving the Quality of Basic Education under the Partnership for Capacity Building in Africa", World Bank Oromia Education Bureau (March 1997) "Oromia Regional State Education Sector Five Year Plan (1998-2002)", Oromia Education Sector, Ethiopia Oromia Education Bureau (May 1998) "Oromia Regional State Education Sector Development Program (ESDP): Five Year Plan 1997/98 - 2001/02", Ethiopia Oromia Education Bureau (September-October 1997) "Oromia Region Workshop: Attachment 2", Ethiopia Oxford Policy Management (January 1997) "Sector Investment Programmes in Africa: Issues and Experience - Evidence from Case Studies", UK-ODA, Oxford Oxford Policy Management (January 1997) "Sector Investment Programmes in Africa: Issues and Experience - Final Report", UK-ODA, Oxford Penrose, Perran (January 1998) "Sector Development Programmes: Definitions and Issues", British Council, unpublished Pepperall, Jane (June 1998) "International Technical Working Group on Sector-Wide Approaches for Health Development, Helsinki, 8-9 June 1998", Health and Population Division, DFID, London SPM Consultants (October 1998) Is there an ideal SWAp? Findings of two case studies in Zambia, SIDA/Swedish Embassy (Lusaka), Stockholm Swift, Digby (1998) "New Modalities of Development Assistance: Sector Approach" [Powerpoint Presentation], DFID, London The Federal Democratic Republic of Ethiopia (November 1996) Education Sector Development Programme (1997-2001), Consultative Group Meeting, Addis Ababa Thornton, Paul (October 1998) "Pakistan Social Action Programme: DFID Background Note", DFID, unpublished Uganda Participatory Poverty Assessment Project (April 1999) "Perspectives of Communities on Education: A Briefing Paper for the Education Sector Review, April 1999", Ministry of Finance, Planning and Economic Development, Government of Uganda, Kampala Vereker, John (28 June 1998) "Can Poverty be eliminated through Development Co-operation?", Address to North South Roundtable, DFID, London Ward, Michael (October 1998) "Education Sector Planning in Pakistan - an Historical and Cultural Perspective", Discussion Paper for DFID SAPP Conference October 1998, DFID, unpublished Weissman, S (23 October 1997) "Common Implementation Arrangements Pilot", E-mail to SIPS Group, World Bank Worku, Shimeles (October 1998) "Education Sector Investment Program: an Ethiopian Experience", Paper presented to Ministry of Education and Sports (Uganda), Prime Minister's Office, Addis Ababa World Bank (27 February, 1998) Ethiopia Social Sector Note: Report No 16860-ET, World Bank, Washington Zoller, Peter (15 June 1998) "World Bank Policy Research Report: Rethinking Aid", Internal communication, Aid Policy and Resources Department, DFID, unpublished Country List of Programmes/Projects [The following country papers, reports and studies (some relating to non education sectors) also informed the development of the study. They are presented in country order. Those marked with \] are programmes or loan agreements that broadly take either a sector wide or sub sectoral approach to education development.\] Bangladesh* - Non-Formal Education Loan, ADB (1995) - Primary Education Development Programme, DFID (1997) - Primary Education Sector Development Loan, ADB (1990) - Primary Education Sector Development Loan, World Bank (1990) - Secondary Education Development Loan, ADB (1994) Education Sector Support Strategy Documents, UNICEF/UNPD (various years) Effective Schools through Enhanced Education Management (ESTEEM), DFID (1997) Expansion of Non-Formal Primary Education/BRAC, DFID (1994) Fourth Education (Primary Education) Project, World Bank (1992) Secondary Education Development Strategy Study, ADB (1993/4) Belize - Primary Education Development Loan, World Bank (1990) Primary Education Development Project, DFID (1990) Primary Education Development Project, Mid-term Review, DFID (1995) Cambodia - Basic Education Investment Plan 1994/1999, ADB (1994) Basic Education Support Programme, Annual Reviews, UNICEF/UNICEF/SIDA (various years) Higher Education Policy and Strategic Framework Study, World Bank/USAID/AUSAID (1996/7) Programme Management/monitoring System Development TA, ADB (199516) Social Sector Strategy Study: Cambodia, ADB (1999) Support for Primary Education Project, European Union (1995) Caribbean - Antigua: Secondary Education Support Programme, DFID (various years) - Dominica: Secondary Education Support Programme, DFID (1998) - Guyana: Education Sector Support Programme, World Bank/IADB and Various Funding Agencies (various years) - Jamaica: All Age Primary Schools Programme (draft), DFID (1998/9) - St Vincent: Secondary Education Support Programme, DFID (1988) Anguilla: Education Sector Review Studies, DFID (1998) Jamaica: Education Sector Strategic Reviews, World Bank/IADB/DFID (199819) Central America Inter America Development Bank Staff Appraisal Reports (various reports) Cote D'Ivoire Social Sector Development Strategy Papers, Government of Cote D'Ivoire (various years) Ethiopia - Education Sector Development Programme (ESDP), Government/Funding Agencies (1998) - ESDP Ethiopia: Strategic and Programme Framework, Government of Ethiopia (1999) Basic Education System Overhaul (BESO), USAID (1994) ESDP Ethiopia: Capacity Building Strategy Study, DFID (1999) ESDP Ethiopia: Internal Adviser's Reports, DFID (1998/9) ESDP Ethiopia: Project Implementation Manual, Government of Ethiopia (1999) ESDP Ethiopia: Staff Appraisal Report, World Bank (1998) Ghana - Education Sector Development Programme, World Bank (1998) - Education Sector Strategic Plan 1998/2003, Government of Ghana (1997/8) - Education Sector Support Programme, DFID (1998) First Education Sector Adjustment Credit: Audit, World Bank (1994) India Andhra Pradesh Primary Education Project, Review/Evaluation Reports, DFID (various years) West Bengal District Primary Education Project, DFID (1996) Indonesia - Social Protection Sector Loan, ADB (1998) Active Learning and Professional Support Project (ALPS), DFID (various years) Private Junior Secondary Education Project, ADB (1995) Social Sector Programme Monitoring TA, World Bank/ADB/DFID (1998/9) Kenya Primary Education Strengthening through Management (PRISM), DFID 1995/6 Strengthening of Primary Education (SPRED), Phases I and II 1993/6, DFID (1996-) Support for Primary Education, World Bank (various years) Lao PDR - Basic Education (Girls) Development Programme, ADB (1998) - Education Sector Development Programme (ESDP) TS, ADB (1999) - Higher Education Development Programme, ADB (1995/6) - Primary Education Investment Programme, World Bank (1994) Basic Education Support Programme, UNICEF (various years) Social Sector Strategy Study: Lao PDR, ADB (1999) Malawi - Education Sector Support Programme, World Bank (1994) - Policy and Investment Framework (PIF) for Education 1995/2005, Government of Malawi (1995) Girls Attainment in Basic Literacy and Education (GABLE), USAID Malawi School Support Systems Project (MSSSP), DFID (19995) MSSSP Mid-term Review Reports, DFIF (1998/9) Mali Urban Development and Decentralisation Programme, World Bank (1995/6) Mongolia - Education Sector Development Programme, ADB (1997) Employment Generation Sector Loan, ADB (1993) Health Sector Development Programme, ADB (1997) Mozambique - Education Sector Strategic Plan 1997/2001, Government of Mozambique (1998) - Education Sector Investment Programme Appraisal Reports, Various Funding Agencies (1998) Nepal - Basic and Primary Education Master Plan 1997/2002, Government of Nepal (1997) - Basic and Primary Education Programme (BPEP), Government of Nepal (1997) BPEP Joint Appraisal Mission, World Bank/Funding Agencies (1998) Niger Health, Nutrition and Development Plan and Programme, World Bank (1995/6) Pacific - Fiji: Primary Education Development Programme, World Bank (various years) - Kiribati: Primary/Secondary Education Development Programme, World Bank/DFID/NZODA/AusAID (1994 onwards) - Papua New Guinea: Primary Education Development Programme, World Bank (various years) Cook Islands Education Development Programme, ADB/NZODA (1995 onwards) Pacific Regional: Human Development in Small Island States, ADB (1995) Pakistan - Second Girls Primary Schools Sector Loan, ADB (1996) - Second Social Programme Sector Loan, ADB (1996) - Social Action Programme (SAP) Appraisal Reports, World Bank (various years) - Social Action Programme Sector Loan, ADB (1994) Education Reform under SAP, Some Priorities, World Bank (1998) Support for Primary Education, Lessons of Experience, NORAD (1998) Support for Primary Education, Mid-term Review, NORAD (1993) Rwanda - Education Sector Investment Programme (draft), UNESCO/UNICEF (1999) Education Sector Review Studies, DFID (1997/9) Public Expenditure Review Studies: Social Sectors, DFID/World Bank (1998/9) Senegal Population and Health Plan and Programme, Government of Senegal (1995/6) Sierra Leone Health Development and Action Plan, World Bank (1993) Health Sector Development Programme, World Bank/Other Funding Agencies (1994) Transport Sector Development Plan, World Bank (1994/5) South America Human Development Reports (various years) World Bank Development Reports (various years) Tanzania - Basic Education Investment Framework, Government of Tanzania (1997) - Education Sector Development Programme (ESDP): Programme and Strategic Framework, Government of Tanzania (1998) Education Sector Support Programme, Concept Note, DFID (1998) ESDP Joint Government/Donor Appraisal Reports, Government of Tanzania (1999) Fourth/Fifth/Seventh Education Project: Performance Audit Report, World Bank (1995) Secondary Education Issues and Options, Government of Tanzania (1997) Support for Higher and Technical Vocational Education, Annual Reviews, World Bank/NORAD (various years) Thailand - Higher Education Sector Development Loan, ADB (1996/7) - Social Sector Development Programme Loan (SSDPL), ADB (1997/8) Basic Skills Improvement Loan, ADB (1997/8) Social Sector Strategy Study: Thailand, ADB (1999) SSDPL Monitoring/Review Reports, ADB (1998 onwards) Uganda - Education Sector Assistance Programme (EDSAC), World Bank (1997/8) - Education Strategic Investment Plan (ESIP), Government of Uganda (1998/9) Education Sector Support Programme, DFID (1998) Education Sector Support Programme, USAID (1995/8) Uzbekistan - Education Development Programme (Secondary) TA, ADB (1999) - Education Sector Development Programme, ADB (1996/7) Education Sector Monitoring TA, ADB (1998) Vanuatu - Primary Education Development Programme, World Bank (various years) - Primary Schools Support Programme, European Union (1999) Primary Schools Support Programme, European Union (1993) Vietnam - Primary Education Development Programme, World Bank (1994/5) - Secondary Education Development Programme, ADB (1996/7) Country Assistance Plan: Social Sectors Component, World Bank (1998) Secondary Teacher Training Project TA, ADB (1998) Social Sector Strategy Study: Vietnam, ADB (1999) Zambia - Basic Education Sub-sector Investment Programme (BESIP), World Bank (1998) Action to Improve English/Maths/Science (AIEMS) Project, DFID (1997) Education Sector Investment Programme: Appraisal Report, World Bank (1997) Health Sector Investment Programme, Various Funding Agencies (various years) Annex 2: Education SWA - Study Informants The authors are grateful to the following for their formal and informal inputs to the study. DFID Steering Committee - Eamon Cassidy Evaluation Department - John Gordon Human Development Strategist - David Levesque Education Department - Tony Lloyd Jones Engineering Department - Gus Mackay Aid Policy Department - Michael Mutter Architectural/Physical Planning Adviser - Andrew Norton Social Development Department - Steve Packer Education Department - Elspeth Page Education Department - Alan Penny Education Department - Malcolm Seath Education Department (Co-ordinator) - Digby Swift Education Department (Co-ordinator) - Ceri Thompson Health Population Department - Carew Treffgarne Education Department Other DFID Officers - Terry Allsop Senior Education Adviser (DFIDSA) - David Bell DFID-AID, BHC, Tanzania - Bella Bird Social Development Adviser (DFIDEA) - Andy Cawthera Assistant Education Adviser - Jeremy Clarke Senior Institutional Adviser - Ewan Cummings Economics Assistant (Ethiopia) Nick Dyer Economics Adviser Marshall Elliott Senior Education Adviser (DFIDEA) David Fish Head of DFIDEA Mick Foster Senior Economics Adviser/CAPE-ODI Bill Fraser Institutions/Governance Adviser Amanda Hallinan Procurement Department Seamus Heaney Education Management Adviser Charlie Kirkcaldy Education Co-ordinator (DFIDEA) Stephen Lee Economics Adviser (DFIDEA) Marcus Manuel Senior Economic Adviser, Uganda Dino Merotto Economics Adviser Maureen Morrison DFID-AID, BHC, Uganda Barbara Payne Senior Education Adviser, India David Pedley Economics Adviser (DFIDSA) Amanda Seel Assistant Education Adviser (Uganda) Nicola Smithers Institutional Development Adviser Paul Thornton SAP Co-ordinator (Pakistan) DFID By Correspondence: Roger Cunningham Regional Education Adviser, DFIDCA David Clarke Regional Education Adviser, DFIDPA Steve Passingham Regional Education Adviser, DFIDSEA Other Donor/Funding Agencies Asian Development Bank Marc Cohen Education Adviser, Central Asia Charles Currin Senior Education Adviser, AEEH Brent Dark Senior Programme Officer, AWD Gudrun Forsberg Senior Education Adviser, AWEH Edward Haugh Manager, AWEH Michael Morrisey Consultant, Vietnam Brahm Prakesh Head, Policy Unit, AWD Steven van der Taak Senior Programme Adviser, Pacific Graham Walter\ Canada/CIDA\ Senior Evaluation Specialist Ute Gerbrandt\ First Secretary, Development, East Africa Dan Thakur\ Education Adviser, Uganda Evelyn Voigt\ Program Manager Heather Wall\ Senior Development Officer, Africa Denmark/DANIDA Mike Keirnan\ Regional Education Adviser, Africa Kirsten Kristensen\ Programme Co-ordinator, Uganda Mike Wurtz\ Programme Adviser, Tanzania European Union Alex Baum\ EC Delegation, Tanzania Catherine Dom\ Consultant, Uganda Philippe Loop\ EC Delegation, Uganda Wim Olthof\ Economic Adviser, Ethiopia Gerrard Renou\ EC Delegation, Cambodia Franz Ronsholt\ Programme Adviser, Tanzania Mark Todd\ Consultant, Uganda Eric Woods\ Education Adviser, Ethiopia Finland/Ministry of Foreign Affairs Nigel Billany\ Consultant, Cambodia/Tanzania Gisela Blumenthal\ Adviser, Social Development and Health Heikka Haila\ Counsellor, Ethiopia Pekka Hukka\ First Secretary Aid, Tanzania Kaisa Karttunen\ Adviser, Agriculture/Rural Development Heikki Kokkola\ Adviser, Education and Training Asko Luukkainen\ Director, Unit for Sector Policy Tuomas Takala\ Consultant, SWA Study, Finland GTZ Else Meinzer Irish Aid Paeder Cremin Liz Higgins Isolda Moylan Brendan Rogers Barbara Shuey Brian Wall Japan/JICA Norio Kato Mikiko Nishimura Netherlands Martin Koper Ana Rochkovski Sweden/SIDA Arne Carlsgard Ingemar Gustafsson Agneta Lind Christine McNab Sven Ake-Svennson UK Consulting Firms Sue Beaumont Tony Davison Peter Fell John Martin Harvey Smith David Theobald USAID Bill Brands Representative, Uganda Consultant, ESDP/Tanzania Education Adviser, Africa Charge d'Affaires, Tanzania Charge d'Affaires, Uganda Programme Operations, Uganda Head of Evaluation, Foreign Affairs Senior Education Adviser, Cambodia Education Sector Adviser, Uganda Counsellor, Uganda Regional Education Adviser, East Africa Senior Programme Officer, Ethiopia Assistant Head, DESO/SIDA Head Education Division, DESO/SIDA Counsellor, Tanzania Programme Manager, Cambodia Representative, British Council, Uganda Education Adviser, British Council Education Adviser, British Council Director, Cambridge Educn Consultants Consultant, CfBT Education Adviser, British Council Program Adviser, USAID, Uganda David Leong UN Agencies Carol Jaenson UNESCO Representative UNICEF Representative World Bank Ron Brigish Emmanuel Malangalila Harriet Nannyonjo Nigel Roberts Benno Ndulu Young Hoy Kimaro Director, Project Office, Cambodia Education Adviser, UNICEF, Uganda Ministry of Education Uganda Cambodia Resident Representative, Tanzania Programme Officer, Tanzania Operations Officer, Uganda Resident Representative, Ethiopia Lead Specialist, Tanzania Economist, Africa	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/4531-pdf.pdf", "olmocr-version": "0.1.60", 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d6b72112de634f0104222f7fcd02ac8e3d018a0d	In England there are over 10,000 local parishes, 16 charter trustees and 2 Temples of London. Of these, 8,805 parishes, charter trustees and Temples (local precepting authorities) instructed their billing authority to collect council tax on their behalf in 2013-14, with a collective taxbase of 7.3 million Band D equivalent properties. 241 of the 326 billing authorities have parishes. The number of parishes that require the collection of council tax within a local authority ranges from 1 to 238. The total council tax collected on behalf of parishes and charter trustees, and apportioned to Temples in 2013-14 is £367m, representing 1.6% of the total council tax requirement for England of £23.4bn. The average Band D council tax bill for local precepting authorities in 2013-14 is £50.19, which is an increase of £2.45, or 5.1% on the 2012-13 figures. 1. Introduction 2. This release provides information on individual local parishes and the amount of council tax collected on their behalf by their billing authorities in England, for the financial year 2013-14. 3. This is the first year that the Department for Communities and Local Government (DCLG) has collected data about individual parishes. Up to and including 2012-13 this information was collected by the Chartered Institute of Public Finance and Accountancy (CIPFA). 4. The information in this release is derived from the local precepting authorities section (lines 23, 24 and 25) submitted by all 326 billing authorities in England; and the individual local data section (lines 23x, 24x and 25x) of the Council Tax Requirement (CTR1) forms submitted by 241 parished billing authorities. The data are as reported by local authorities, and have been subjected to rigorous validation processes. 5. The release has been compiled by the Local Government Finance - Data Collection, Analysis and Accountancy division of the Department for Communities and Local Government. Parishes and other local precepting authorities in England, 2013-14 05. There are more than 10,000 parishes in England. A parish may be represented by a parish council, a town council or community council. In the case of small parishes, the parish meeting (an annual meeting of all electors in a parish) can take on the role of parish council. Parishes represent the most local level of Government in England - the third tier of local government. 06. In a small number of the un-parished areas bodies called “charter trustees” exist. These bodies exist to administer ceremonial functions, such as the appointment of a mayor, where there is no parish to administer them. There are currently 16 such bodies in England one less than in 2012-13 due to Crewe in Cheshire becoming a parish council on 4 April 2013. 07. There are two further local precepting authorities: the Inner and Middle Temples of London (“the Temples”) situated within the Temple area of the City of London. The Temples are different from parishes and charter trustees in that they perform the functions within their area that are performed by the City of London authority (“the City”). In exchange for performing these functions the City pays the Temples an annual precept apportioned from the council tax raised by the City. 08. Parish or village councils need funds to support their activities. These funds are raised by adding an extra cost known as a “precept” to each householder’s Council Tax bill. Parishes (together with charter trustees and the two Temples of London as described above) are collectively known as “local precepting authorities”. This means they have the power to raise a precept on properties in their area in order to finance the functions that they perform. Parish precepts are included separately on council tax bills and are collected by the billing authority on behalf of the parish. 09. Some smaller parishes may group together for precepting purposes and will perform this function as one local precepting authority and for the purposes of this release are counted as 1 parish. 10. Further information is provided in the Definitions section of this release. Special factors affecting comparability to previous years This is the first time DCLG has collected local parish council tax data. Changes to the council tax system and the method for collecting individual parish data mean these figures are not directly comparable to earlier years and caution must be taken when interpreting time trends. Significant factors which have affected comparability include: 1. Localisation of council tax support; a change in the way council tax benefit is paid. Council tax support is now paid in the form of a grant passed down to parishes from their billing authorities and is not included in the local precept. Previously individual council taxpayers might receive support to pay their council tax bill from DWP. The value of this support would have been included in the local precept. However, taxpayers now have their bills covered by council tax support and therefore are removed from the tax base, whereas under the old system they would previously have been included. The localisation of council tax support has reduced the local precept and the tax bases significantly compared to earlier years (see Definitions for further details). 2. Parish groupings; in some cases parishes have been grouped together for precepting purposes. This makes the number of parishes setting a precept in 2013-14 look smaller than in previous collections - for example data collected by CIPFA split all groupings and listed all parishes individually. Data previously published on local precepting authorities can be accessed here: https://www.gov.uk/government/publications/parishes-and-charter-trustees-in-england-2012-to-2013. Revisions This is a revised version of the original statistical release on Parishes and other local precepting authorities: 2013-14 England. The revisions are minor and do not change the headline figures. These adjustments correct for an error in the way the data were originally uploaded. The revisions affect Table 3 in this release and Table 5 on the main webpage. 2. Summary of parishes raising Council Tax 09. Parishes vary widely both in terms of the populations they represent and the functions they perform. Some have a very limited, local role while others are more active, carrying out activities similar to that of a smaller district council. Typical parish responsibilities include village halls, war memorials, cemeteries, allotments, open spaces, leisure facilities, playgrounds, maintenance of public footpaths and cultural projects. 10. In order to fund their activities parishes can instruct their billing authority to collect council tax on their behalf, which is known as a “local precept” (an extra cost added onto the council tax bill). The amounts collected for parishes vary considerably, from as much as £2m to as little as £20. 11. In England in 2013-14, 8,805 local precepting authorities have set a precept (non-zero) or have been apportioned council tax, the total amounting to £367m, paid across a tax base of 7.3 million Band D equivalent properties. The average Band D council tax for local precepting authorities is £50.19. 12. Table 1 shows the number, taxbase and average Band D local precept within the area of the parish and charter trustee that is charging a non-zero precept in 2013-14. These have been split out by class of authority and show Temples of London and charter trustees separately. \| Class of authority \| Number \| Taxbase (b) (thousands) \| Local Precept (c) (£ thousands) \| Average Band D (£) \| \|-----------------------------\|--------\|-------------------------\|---------------------------------\|-------------------\| \| England \| 8,805 \| 7,307.1 \| 366,763 \| 50.19 \| \| London Boroughs \| 2 \| 0.1 \| 322 \| 2,165.77 \| \| Metropolitan Areas \| 231 \| 411.1 \| 15,095 \| 36.72 \| \| Unitary Authorities \| 2,079 \| 2,018.6 \| 109,013 \| 54.01 \| \| Shire Districts \| 6,493 \| 4,877.4 \| 242,333 \| 49.69 \| \| Type of precepting authorities \| Number \| Taxbase (b) (thousands) \| Local Precept (c) (£ thousands) \| Average Band D (£) \| \|--------------------------------\|--------\|-------------------------\|---------------------------------\|-------------------\| \| Precepting Parishes \| 8,789 \| 7,103.0 \| 365,778 \| 51.50 \| \| Charter Trustees \| 14 \| 221.6 \| 663 \| 2.99 \| \| Temples of London \| 2 \| 0.1 \| 322 \| 2,165.77 \| Source: CTR1 form 2013-14 (a) Figures exclude council tax support grant (b) The sum of the taxbase for local precepting authorities by type does not total to the England figure because the taxbase for the Charter Trustees for the City of Durham overlaps with other parishes. (c) This is the total amount to be collected by billing authorities on behalf of parishes and charter trustees 3. Size of parishes 13. There are wide variations in size between parishes in terms of the population they serve, the precepts they raise and the functions they perform. 14. Local precepting authorities do not exist in all areas of England. For example, London is almost entirely un-parished. However, the Local Government and Public Involvement in Health Act 2007 made provision for the setting up of new local councils, and Queen’s Park established a parish council following a referendum in 2012. Many other Local Authorities in England also do not have any parishes. Out of the 326 local authorities in England, only 241 have local precepting authorities that raise a local precept. 15. The tax bases of individual local precepting authorities also vary significantly. The smallest local precepting authority which raised council tax in 2013-14 has a tax base of 1.38 Band D equivalent dwellings while the largest has a tax base of nearly 29,000 Band D equivalents. 16. Table 2 shows the percentage of total tax base covered by parishes, charter trustees and Temples by class of authority. \| Class of authority \| Parish tax base (thousands) \| Class tax base (thousands) \| Parish tax base as a % of class tax base (%) \| \|--------------------------\|-----------------------------\|-----------------------------\|---------------------------------------------\| \| England \| 7,307.1 \| 16,056.0 \| 45% \| \| London Boroughs \| 0.1 \| 2,574.3 \| 0% \| \| Metropolitan Areas \| 411.1 \| 2,797.7 \| 15% \| \| Unitary Authorities \| 2,018.6 \| 3,535.6 \| 57% \| \| Shire Districts \| 4,877.4 \| 7,148.4 \| 68% \| Source: CTR1 form 2013-14 (a) Figures exclude council tax support grant 17. The tax base covered by local precepting authorities represents 45% of the total tax base for England. However the proportion of the Council Tax base paying a parish precept varies considerably across different classes of authority. In Shire Districts 68% of the tax base is parished compared to just 15% in Metropolitan Districts. 18. 34% of local precepting authorities have a precept of less than £5,000, and 90% of less than £100,000. 1% have a precept of over £500,000 and two local precepting authorities have a precept in excess of £1.9 million which is similar to some district councils. 19. Chart A shows the distribution of local precepting authorities by the size of the precept raised in 2013-14. CHART A: Distribution of local precepting authorities by size of their precept ![Chart A](chart.png) Source: CTR1 Form 2013-14 The large range in precept size makes it difficult to represent them all on one chart. In order to do so here the 102 largest precepting authorities have been grouped into one category. This category covers a wide range of precepts, the largest being £1.9 million. This category has been shaded differently to distinguish it. 20. Because of the council tax support grant given to parishes by their billing authorities it is possible for a parish to have a negative precept as their grant over compensates for the amount of council tax they need to raise. Council tax support grant has reduced the overall Council Tax Requirement and the local parish precept compared to earlier years. 21. Parish Band D bills 22. The average Band D council tax for each local precepting authority can be calculated by dividing the local precept by the number of Band D equivalent dwellings. This is a standard measure used to compare council tax levels across England. 23. Table 3 shows the number and proportion of local precepting authorities that charge different levels of average Band D Council Tax to taxpayers in their area. \| Average Band D (£) \| Number of precepting parishes (R) \| Percentage of all precepting parishes \| Cumulative percentages \| \|--------------------\|-----------------------------------\|---------------------------------------\|------------------------\| \| less than or equal to £10 \| 553 \| 6% \| 6% \| \| £10-£20 \| 1,587 \| 18% \| 24% \| \| £20-£30 \| 1,972 \| 22% \| 47% \| \| £30-£40 \| 1,628 \| 18% \| 65% \| \| £40-£50 \| 1,100 \| 12% \| 78% \| \| £50-£60 \| 712 \| 8% \| 86% \| \| £60-£70 \| 433 \| 5% \| 91% \| \| £70-100 \| 551 \| 6% \| 97% \| \| Greater than £100 \| 269 \| 3% \| 100% \| Source: CTR1 form 2013-14 (R) Average Band D has been corrected for 26 local precepting authorities. These adjustments correct for an error in the way the data was originally uploaded 23. Almost half of local precepting authorities (47%) have an average Band D council tax bill of less than £30 while 97% charge less than £100. 24. The changes to the way data have been collected and in particular the grouping of parishes means that it is not possible to directly compare changes in average Band D at an individual parish level this year, but at an England level the Band D figures are comparable. 25. Table 4 shows the average Band D for local precepting authorities in England in 2012-13 and 2013-14. Table 4: Average Band D for local precepting bodies in England 2012-13 to 2013-14 (a) \| \| 2012-13 \| 2013-14 (R) \| \|--------------------------------\|---------\|-------------\| \| Total number non zero local preceptors (b) \| 9,065 \| 8,805 \| \| Tax base (thousands) (c) \| 8,046.2 \| 7,307.1 \| \| Aggregate of local precepts (£000) (c) \| 384,104 \| 366,763 \| \| Average parish precept per Band D (£) \| 47.74 \| 50.19 \| \| Change in average Band D precept (£) \| \| 2.45 \| \| Percentage change in average Band D precept \| \| 5.1% \| Source: CTR1 form 2013-14 (a) Figures exclude council tax support grant (b) Due to grouped parishes being treated as a single precept this figure will be lower than previous years (c) The impact of localising council tax support has reduced both the tax base and aggregate of local precepts compared to previous years 26. The average Band D for local precepting authorities in 2013-14 is £50.19, this is £2.45 (5.1%) higher than in 2012-13. 27. Data showing the tax base, precept and average Band D Council Tax charged by individual parishes, charter trustees and Temples are available in the table which accompanies this release (See Accompanying table for details). Accompanying table An accompanying table is available to download alongside this release. This is: Table 5: Individual parishes, charter trustees and Temples raising Council Tax in 2013-14 Related DCLG statistical releases are available at: https://www.gov.uk/government/organisations/department-for-communities-and-local-government/series/council-tax-statistics Definitions The terms used in this release are defined below. A list of further terms relating to local government finance is given in the glossary of Local Government Financial Statistics England No. 23 2013. This is accessible at: https://www.gov.uk/government/publications/local-government-financial-statistics-england-2013 Aggregate of local precepts This is the total amount collected by billing authorities on behalf of local precepting authorities in their area. Average Band D parish precept The aggregate amount collected on behalf of parishes and charter trustees (local precepts) divided by the total tax base of those parishes and charter trustees that have set a non-zero precept. These amounts are averages over all parishes in an area and will not represent the actual amount paid towards individual parishes or charter trustees in those areas. Calculations of average parish precepts exclude precepts for the City of London. Council tax is set on the basis of the number of Band D equivalent properties. Band D council tax This is the council tax payable on a Band D dwelling occupied as a main residence by two adults, before any reductions due to discounts, exemptions or council tax benefit. This definition is widely regarded as a benchmark when comparing council tax levels in different areas or over time. Band D equivalents The number of band D chargeable dwellings adjusted for council tax band e.g. a band H property is equivalent to two band D properties Billing authority Billing authorities are the 326 authorities (354 before 1 April 2009) that are empowered to set and collect council taxes, and manage the collection fund, on behalf of itself and other local authorities in its area. In England, metropolitan and shire districts, the Council of the Isles of Scilly, unitary authorities, London boroughs and the City of London are billing authorities. These are also sometimes known as lower-tier authorities. Budget requirement (BR) forms The predecessor to the current CTR forms, they were superseded in 2012-13. Similarly, they were a return that was completed by all billing and precepting authorities in England, giving information on the calculation of their council tax requirement and council tax. BR1 forms were completed by billing authorities, BR2 forms by major precepting authorities and the BR3 form was completed by the Greater London Authority. Some historical data used in this release were collected on the BR1 forms. Charter trustee A body of councillors charged with preserving the historic property, privileges, rights, status and traditions of areas which have been subsumed within larger authorities as a result of local government reform. Charter trustees cease to exist when a parish council is formed for the area. Council tax This is a local charge (or charges) set by the billing authority in order to collect sufficient revenue to meet their demand on the collection fund and the precepts issued by the precepting authorities. It replaced the community charge on 1 April 1993 and is based on the value of the property and the number of residents. The Valuation Office Agency assesses the properties in each district area and assigns each dwelling to one of eight valuation bands, A to H. The tax is set on the basis of the number of Band D equivalent properties. Tax levels for dwellings in other bands are set relative to the Band D baseline. Council tax band There are eight council tax bands, A to H. Each domestic dwelling is assigned a council tax band by the Valuation Office Agency (VOA). Council tax bands are based on the value of the dwelling as at 1 April 1991. Any dwelling built after this date is given a notional 1991 value for council tax purposes. Council tax requirement (CTR) forms A return completed by all billing and precepting authorities in England giving details of information on the calculation of their council tax requirement and council tax CTR1 forms are completed by billing authorities, CTR2 forms by major precepting authorities and the CTR3 form is completed by the Greater London Authority. The data used in this release were collected on the CTR1 forms. Localisation of council tax support Prior to 2013-14, local authorities were given a grant outside AEF by the Department for Work and Pensions (DWP) to cover the cost of council tax benefit in their area. In 2013-14, local authorities and local policing bodies in England will receive £3.7 billion towards the cost of local council tax support schemes. The funding is now provided as part of the revenue support grant system and reduces the council tax requirement to local authorities. Local precepting authority A body that has the power to raise a precept on council tax if it wants to, even if it has not previously. Parish / town / neighbourhood councils, chairmen of parish meetings, charter trustees and the treasurers of the Inner and Middle Temples. These local authorities can make a precept on the billing authority’s general fund. Parish The term parish used in this release means an English civil parish represented by a body able to raise a precept on council tax. A parish may be represented by a parish council or parish meeting. A parish council can resolve to have the status of a town council and can have city status conferred on it by royal prerogative. A parish council or parish meeting may resolve to adopt the style of a community, neighbourhood or village. They are local precepting authorities. Parish precepts Parish councils can raise a precept on the principal council (the billing authority). For the majority of parish councils this is the main source of income and the level of the precept is at the discretion of the parish. Parishes and charter trustees are local precepting authorities. Precept / local precept The amount of money (council tax) that a precepting authority has instructed the billing authority to collect and pay over to it in order to finance its net expenditure. Tax base This is the number of Band D equivalent dwellings in a local authority area. To calculate the tax base for an area, the number of dwellings in each council tax band is reduced to take account of discounts and exemptions. The resulting figure for each band is then multiplied by its proportion relative to Band D (from 6/9 for Band A to 18/9 for Band H) and the total across all eight bands is calculated. An adjustment is then made for the collection rate. The tax base figure that is used by a local authority when it sets its council tax uses an adjustment for the collection rate and the actual discount for second homes. Temples of London The Inner and Middle Temples are self-governing bodies located in the west of the City of London. The Temples were defined as local authorities with many of the same powers and responsibilities as the Inner London boroughs under the London Government Act 1963, except in relation to housing. The Inner Temple and Middle Temple, through powers vested in the Under Treasurer and Sub-Treasurer of the Middle and Inner Temple respectively, exercise a small number of local authority functions. All other functions fall under the responsibility of the City of London. Technical notes Symbols … = not available 0 = zero or negligible - = not relevant \|\| = discontinuity (R) = revised since the last statistical release Rounding Where figures have been rounded, there may be a slight discrepancy between the total and the sum of constituent parts. Data collection The information in this release is based on data returned to the Department for Communities and Local Government by English local authorities on the Council Tax Requirement (CTR1) forms. The data on the CTR1 form (with the exception of the Local Precepting Authorities section) are collected using legislative powers that require all billing authorities to return completed forms within seven days of setting their final budget for the coming year. This effectively ensures a 100% response rate. Data on the number and tax base of local precepting authorities were collected from billing authorities for the first time in March 2010, as part of the Budget Requirement (BR1) forms. Data on the number and tax base on individual parishes were collected for the first time this year for 2013-14. Data quality Figures provided by local authorities are subjected to rigorous validation tests and quality assurance checks in Department for Communities and Local Government as the data are received and stored. The statistics release document, once prepared, is also subject to intensive peer review before being cleared as fit for the purposes of publication. These checks indicate that all billing authorities have provided information of an acceptable standard. This is the first time data about individual parishes has been collected or published. Revisions policy This policy has been developed in accordance with the UK Statistics Authority Code of Practice for Official statistics and the Department for Communities and Local Government Revisions Policy (found at https://www.gov.uk/government/publications/statistical-notice-dclg-revisions-policy). There are two types of revisions that the policy covers: Non-Scheduled Revisions Where a substantial error has occurred as a result of the compilation, imputation or dissemination process, the statistical release, live tables and other accompanying releases will be updated with a correction notice as soon as is practical. Scheduled Revisions At time of publication there are no scheduled revisions for this series. Uses of the data This information will be used to inform the development of policy on parish council tax levels and to evaluate existing policies. Background Note 1. Further statistical information relating to council tax is available on the Department’s website at https://www.gov.uk/government/organisations/department-for-communities-and-local-government/series/council-tax-statistics 2. For a fuller picture of recent trends in local government finance, readers are directed to Local Government Financial Statistics England No.23 2013 which is available electronically in PDF format via the Department’s web site: https://www.gov.uk/government/publications/local-government-financial-statistics-england-2013 User engagement Users are encouraged to provide feedback on how these statistics are used and how well they meet user needs. Comments on any issues relating to this statistical release are welcomed and encouraged. Responses should be addressed to the “Public enquiries” contact given in the “Enquiries” section below. The Department’s engagement strategy to meet the needs of statistics users is published here: https://www.gov.uk/government/publications/engagement-strategy-to-meet-the-needs-of-statistics-users Enquiries Media enquiries: office hours: 0303 444 1157 0303 444 1159 out of hours: 0303 444 1201 Email: [email protected] Public enquiries and Responsible Statistician: Name: Mike Young on 0303 444 4387 or Email: [email protected]. Information on Official Statistics is available via the UK Statistics Authority website: www.statistics.gov.uk/hub/browse-by-theme/index.html Information about statistics at DCLG is available via the Department’s website: www.gov.uk/government/organisations/department-for-communities-and-local-government/about/statistics	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/4532-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 15, "total-input-tokens": 28023, "total-output-tokens": 7114, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 861, 1 ], [ 861, 4101, 2 ], [ 4101, 6123, 3 ], [ 6123, 9349, 4 ], [ 9349, 11990, 5 ], [ 11990, 13007, 6 ], [ 13007, 14705, 7 ], [ 14705, 16350, 8 ], [ 16350, 18824, 9 ], [ 18824, 21645, 10 ], [ 21645, 23567, 11 ], [ 23567, 25215, 12 ], [ 25215, 26659, 13 ], [ 26659, 27764, 14 ], [ 27764, 27764, 15 ] ] }
35c2d8add8b34968bfef7605a4ea798d63ae3ddf	Parking Spaces – Metadata About the Data: Title: Parking Spaces Alternative Title: N/A Abstract: Dataset of East Cambridgeshire District Council’s Parking Spaces as defined by the Code of Recommended Practice for Local Authorities Data Transparency 2014. Lineage: In line with the Governments requirement that Local Authorities publish details of their Parking Spaces, East Cambridgeshire District Council publishes this dataset on a yearly bases and has done so since the 27th January 2015 Topic Category: Car Parks Dataset Reference Dates: Creation Date: 27/01/2015 Publication Date: 27/01/2015 Revision Date: 27/01/2016 Frequency of Update: Annually Responsible Organisation: Responsible Party Role: Team Leader Town Centre Services Contact Position: Team Leader Town Centre Services Organisation Name: East Cambridgeshire District Council Full Postal Address: The Grange, Nutholt Lane, Ely, Cambridgeshire, CB7 4EE Telephone number: 01353 665555 Email address: [email protected]	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/4534-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 1, "total-input-tokens": 1542, "total-output-tokens": 298, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 991, 1 ] ] }
989e30d097928b9d4420391d76d55267a03b024e	PRODUCTION, DISTRIBUTION AND PUBLISHING FLOWCHART - updated February 2019 References to 'the framework supplier' mean the Lot 1 Supplier of the Managed Print and Digital Solutions Framework (RM3785) \| STAGE 1: Production planning \| STAGE 2: Production budgeting \| STAGE 3: Production decisions \| STAGE 4: Production \| STAGE 5: Distribution, laying and publication \| STAGE 6: Evaluation \| \|-------------------------------\|-------------------------------\|-------------------------------\|---------------------\|---------------------------------------------\|---------------------\| \| Command or House of Commons Paper details and procedure \| Publication date and production timeline \| Production services required, including; design, typesetting and printing \| Copyright and permissions \| Number of pages \| Action \| \| Decide paper type (Command Paper, House of Commons Paper, Un-numbered Act Paper etc.) and confirm requirements, including the publishing procedure. Follow the actions below to assemble data for Stage 2 \| Agree approximate publication date, generally this will be the same as the date the paper is laid before Parliament which might be dependant on a Number 10 grid date \| Agree approx. number of print copies needed by the organisation for internal and external stakeholders (excluding those in Parliament), for laying, file/library etc. Check the range of services offered by the framework supplier \| Check copyright status of main text (if possible, ensure it is Crown copyright). Identify any third-party material such as images, statistics etc. Take into account how the images might be re-used after publication \| Estimate the approx. number of pages in your paper - this will affect the production cost \| Action \| \| This document and The National Archives for Command Papers; Journal Office for House of Commons and Un-numbered Act Papers; publishing and/or parliamentary units \| Authoring team; parliamentary unit; communications team and private office \| Publications unit; communications team; the framework supplier \| Main text of report: This document; The National Archives; commissioning contract (if author not a civil servant). Images etc: Ask source(s) \| Authoring team; previous similar papers \| Action \| \| Using the outcomes of all Stage 1 planning actions, follow the actions below to obtain estimated production and distribution costs \| Draw up a production timeline \| Decide on which production options offered by the framework supplier are required, then obtain relevant quotes (for example design, typesetting and printing). If the framework supplier's 'distribution management service' is used, see below \| Obtain estimates for any images from commercial sources, \| Papers under 72pp can be saddle stitched. Papers over 72pp should be perfect bound which can increase production time \| Action \| \| Publishing unit; communications team; the framework supplier \| Publishing unit; communications team; the framework supplier \| Publishing unit; communications team; the framework supplier \| Publishing unit; communications team; the framework supplier \| Publishing unit; communications team; the framework supplier \| Action \| \| Up to a month before publication, obtain a Command Paper or House of Commons number. Using the costs obtained at Stage 2, choose production and distribution options. \| Finalise publication date and revise production timeline \| Decide on the services that will be bought from the framework supplier and any other suppliers (designers, typesetters, printers). Raise purchase orders \| When the Command or House of Commons Paper number has been received, obtain the current copyright statement and ISBN (collectively this is known as 'publication furniture') \| Make sure permission to use third-party images and data has been obtained. Compile any acknowledgements. Check, complete and proofread the title-verso page (page 2) \| Action \| \| Publishing unit or communications team; The National Archives for Command Papers; and Journal Office for House of Commons and Un-numbered Act Papers \| Authoring team; publishing unit; the framework supplier \| Publishing unit; communications team; the framework supplier \| Publishing unit; communications team; the framework supplier \| Supply a brief, the text, images, data and the framework supplier's publishing furniture to the typesetter or other supplier. Progress proofs and corrections. Sign off final proof. Issue delivery instructions \| Action \| \| Proof read Command, House of Commons or Un-numbered Act Paper details and that the 'publication furniture' is correct on proofs. Check a whether Written or Oral Ministerial Statement will accompany the paper and confirm the release time \| Authoring team; publishing unit; the framework supplier \| Publishing unit; communications team; the framework supplier \| Parliamentary Clerk lays copies in Journal Office. If Annual Report and Accounts being laid by HM Treasury or your parent department, arrange delivery of copies to HM Treasury or department \| Check that internal and laying copies have been delivered by the due time. \| Action \| \| Parliamentary Clerk lays copies in Journal Office. If Annual Report and Accounts being laid by HM Treasury or your parent department, arrange delivery of copies to HM Treasury or department \| Authoring team; publishing unit; the framework supplier \| Publishing unit; communications team; the framework supplier \| Supply a brief, the text, images, data and the framework supplier's publishing furniture to the typesetter or other supplier. Progress proofs and corrections. Sign off final proof. Issue delivery instructions \| Review whether the number of printed copies was appropriate. \| Action \| \| This flowchart had been created by Department for Transport and The National Archives \| Action \| Action \| Action \| Action \| Action \| \| Print copies for Members of Parliament (not laying copies) \| Action \| Where to obtain guidance \| Action \| Where to obtain guidance \| Action \| Where to obtain guidance \| Action \| Where to obtain guidance \| Action \| Where to obtain guidance \| Action \| Where to obtain guidance \| \|----------------------------------------------------------\|--------\|--------------------------\|--------\|--------------------------\|--------\|--------------------------\|--------\|--------------------------\|--------\|--------------------------\|--------\|--------------------------\| \| Check how many printed copies are needed for Parliament - Vote Offices (House of Commons) and Printed Paper Office (House of Lords) This is not necessary for numbered Command and House of Commons Papers, as the framework supplier will do this \| The framework supplier, The National Archives \| Government organisations do not generally pay for the print copies the framework supplier will sell to Parliament. However, organisations will need to pay for these if the framework supplier’s distribution management service is used \| Publishing unit; communications team; the framework supplier \| If the distribution management service is selected, then the organisation will need to confirm this with the framework supplier and agree when and how many print copies should be delivered to the framework supplier \| Publishing unit; the budget holder; the framework supplier \| If using the distribution management service, confirm that the printer has the framework supplier’s packaging and delivery instructions \| Publishing unit; the budget holder; the framework supplier \| The framework supplier delivers Parliament’s copies, embargoed until the agreed release time. If this is ‘on instruction’, phone the framework supplier to confirm actual time \| Publishing unit; the budget holder; the framework supplier \| Have we whether the ‘distribution management service’, if used, was appropriate \| \| Web publication \| Action \| Where to obtain guidance \| Action \| Where to obtain guidance \| Action \| Where to obtain guidance \| Action \| Where to obtain guidance \| Action \| Where to obtain guidance \| Action \| Where to obtain guidance \| \|-----------------\|--------\|--------------------------\|--------\|--------------------------\|--------\|--------------------------\|--------\|--------------------------\|--------\|--------------------------\|--------\|--------------------------\| \| Check the requirements, procedure and timelines for web publication on GOV.UK \| Digital team; publishing unit or communications team; Government Digital Service digital standards; the framework supplier \| Obtain estimates for any external services needed to comply with GDS requirements for web PDFs, and if relevant for HTML documents \| Relevant suppliers, digital team or communications team \| Identify the team or individual responsible for uploading the paper to GOV.UK. If your organisation does not have its own GOV.UK publishing rights this may mean contacting the digital team of your parent department \| Own digital team, or that of parent department \| Supply embargoed web PDF and print-ready PDF (and HTML version if relevant) to digital team for upload to GOV.UK with correct metadata included so that the paper can be published on the same day as laying \| Budget holder; relevant suppliers \| Authorise the files to be published on GOV.UK once the paper has been laid before Parliament \| Ask digital team for feedback on the process of publishing this paper on the web. Ensure alongside the published GOV.UK files that there is text stating whether the paper is a Command, House of Commons or unnumbered Act Paper, as per GDS guidance \| \| Launch event copies \| Action \| Where to obtain guidance \| Action \| Where to obtain guidance \| Action \| Where to obtain guidance \| Action \| Where to obtain guidance \| Action \| Where to obtain guidance \| Action \| Where to obtain guidance \| \|--------------------\|--------\|--------------------------\|--------\|--------------------------\|--------\|--------------------------\|--------\|--------------------------\|--------\|--------------------------\|--------\|--------------------------\| \| Agree whether and how many copies will be needed for a launch event, if relevant \| Publishing unit; communications team; the framework supplier or other relevant suppliers \| Obtain costs for printing the extra copies \| The framework supplier, other relevant suppliers \| Decide on any storage and distribution services and procure these. \| Budget holder; relevant suppliers \| Confirm numbers of attendees and obtain revised costs if necessary. \| Budget holder; relevant suppliers \| Arrange for delivery of copies to launch event. Be aware that the content of the paper should not be made more widely available until it has been laid in Parliament \| Authorise the alternative formats to be made available after the main paper is published \| Evaluate the work of suppliers and the cost of providing alternative formats \| \| Accessibility, translations and alternative formats \| Action \| Where to obtain guidance \| Action \| Where to obtain guidance \| Action \| Where to obtain guidance \| Action \| Where to obtain guidance \| Action \| Where to obtain guidance \| Action \| Where to obtain guidance \| \|-------------------------------------------------\|--------\|--------------------------\|--------\|--------------------------\|--------\|--------------------------\|--------\|--------------------------\|--------\|--------------------------\|--------\|--------------------------\| \| Check the need for alternative formats, e.g. Welsh or other translation, Braille, Easy Read etc. \| Publishing unit; communications team; the framework supplier \| Obtain estimates for any alternative formats \| Publishing unit; communications team; framework supplier and other relevant suppliers \| Decide on alternative formats and procure these \| Publishing unit; communications team; the budget holder; framework supplier and other relevant suppliers \| Supply a brief, text and any images. Check proofs. Sign off the final version \| Publishing unit; the budget holder; relevant suppliers \| Authorise the alternative formats to be made available after the main paper is published \| Evaluate the work of suppliers and the cost of providing alternative formats \| \| Mailings to own stakeholders (not Members of Parliament) \| Action \| Where to obtain guidance \| Action \| Where to obtain guidance \| Action \| Where to obtain guidance \| Action \| Where to obtain guidance \| Action \| Where to obtain guidance \| Action \| Where to obtain guidance \| \|--------------------------------------------------------\|--------\|--------------------------\|--------\|--------------------------\|--------\|--------------------------\|--------\|--------------------------\|--------\|--------------------------\|--------\|--------------------------\| \| Agree whether and how many copies need to be mailed out, e.g. with covering letter, when and how. It is best practice to email stakeholders a link to the paper online rather than producing hard copies to send out. \| Communications team \| Obtain estimates for any storage and distribution charges. \| Communications team; relevant suppliers \| Decide on any storage and distribution services and procure these. \| Publishing unit; the budget holder; relevant suppliers \| Re-check mailing details and obtain revised costs if necessary. Supply a brief and any covering letter, mailing list etc. \| Publishing unit; the budget holder; relevant suppliers \| Authorise copies to stakeholders to be mailed out, with enclosures as specified \| Evaluate the process and cost of mailing out copies \|	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/4535-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 4, "total-input-tokens": 9756, "total-output-tokens": 2635, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 5906, 1 ], [ 5906, 13519, 2 ], [ 13519, 13519, 3 ], [ 13519, 13519, 4 ] ] }
1c19d0d35660386201187c6eb6525c30fd72e3c3	Parliamentary papers guidance A guide to producing and publishing Command, House of Commons and un-numbered Act Papers (Last updated September 2015) © Crown copyright 2014 This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. Any queries regarding this publication should be sent to [email protected] This publication is available for download at nationalarchives.gov.uk. Contents Introduction ........................................................................................................................................... 4 The role of The National Archives ........................................................................................................ 4 Types of Parliamentary paper ................................................................................................................ 5 Numbered Command Papers .................................................................................................................. 5 Independent reviews and reports ........................................................................................................... 6 Why is publishing as a Command Paper important? ........................................................................... 6 Un-numbered Command Papers ........................................................................................................... 6 House of Commons Papers .................................................................................................................... 7 Un-numbered Act Papers ....................................................................................................................... 7 Command Paper requirements ............................................................................................................... 8 Should a document be a Command Paper? ............................................................................................ 8 Obtaining a Command Paper number .................................................................................................. 8 Selecting a title for a Command Paper .................................................................................................. 9 Formatting and laying of Command Papers .......................................................................................... 9 The Command Paper presentation line ................................................................................................. 10 Using the Royal Arms ............................................................................................................................ 10 Laying format .......................................................................................................................................... 10 Laying outside Westminster .................................................................................................................... 10 Publication ............................................................................................................................................... 10 Contract services .................................................................................................................................... 11 The Print Vendor Partner Contract (PVP) ............................................................................................... 11 Print copies .............................................................................................................................................. 11 Production and distribution services ..................................................................................................... 12 The ‘distribution-only’ option ................................................................................................................ 12 Useful contacts ....................................................................................................................................... 13 Parliamentary papers planning ........................................................................................................15 Who to consult? ..........................................................................................................................15 Production ......................................................................................................................................16 Publication and despatch ..............................................................................................................17 Controlling costs and schedules ..................................................................................................18 Production and publishing flowchart and planning checklist ......................................................19 Annual reports and accounts ........................................................................................................20 Checklist ....................................................................................................................................20 How copyright applies ..................................................................................................................22 Crown copyright .......................................................................................................................22 Copyright and Parliamentary Papers produced by non-Crown bodies ..................................22 Laying and publishing a paper .......................................................................................................23 Checking that a paper has been laid .........................................................................................23 Publishing the paper ..................................................................................................................23 Risks associated with not publishing documents correctly on GOV.UK..............................25 GOV.UK exceptions .....................................................................................................................26 Additional publishing information for un-numbered Act and un-numbered Command Papers .26 Publication and the evolution of policy .........................................................................................26 How to correct a paper ..................................................................................................................27 Stickering ..................................................................................................................................27 Correction slips ..........................................................................................................................28 Withdrawing and re-laying a paper ............................................................................................28 Costs to correct a paper .............................................................................................................29 After publishing a paper ...............................................................................................................30 Introduction This guidance will help you to understand the process of producing parliamentary papers, including Command, House of Commons and un-numbered Act papers. It explains the distinctions between the different types of papers, their significance in the parliamentary process and where to go for further advice and support. In the context of GOV.UK, these publications are referred to as ‘official documents’. The role of The National Archives The Controller of Her Majesty’s Stationery Office, an official operating within The National Archives, is responsible under a Letters Patent from Her Majesty The Queen for managing copyright on behalf of the Crown. The Letters Patent also confer upon the Controller the title of Queen’s Printer. The Queen’s Printer is responsible for setting the standards and overseeing the publication of certain government documents. These publications are: - legislation - statutory notices - parliamentary papers, including Command and House of Commons Papers Types of Parliamentary paper ‘Parliamentary paper’ is a term used to describe a document which is laid before Parliament. Most government organisations will produce at least one parliamentary paper per year. There are three categories of parliamentary papers covered by this guidance: - Command Papers - House of Commons Papers - Un-numbered Act Papers The National Archives provides government organisations with guidance and information on publishing parliamentary papers. In addition, The National Archives is responsible for ensuring that services for the production of these documents are available to government organisations. The services are currently provided through the cross-government Print Vendor Partner Contract, managed by the Crown Commercial Service (previously the Government Procurement Service). Numbered Command Papers The requirements for Command Papers are set by the Controller of Her Majesty's Stationery Office, an official operating within The National Archives. Command Papers are documents that set out and describe government initiatives, the content of which will be of interest to Parliament. Papers are laid nominally by command of the Sovereign, but in practice by a Government Minister. The term Command Paper derives from the original wording carried on documents: ‘Presented to Parliament by Command of His/Her Majesty’. Over time this wording has evolved, but the original wording is still used on a small number of documents. Command Papers form part of a continuous numbered series and cover a wide range of subject areas. Typically they include the following: - major policy proposals (‘white papers’) - consultation documents (‘green papers’) - government responses to consultations - responses to consultations (may be published as a summary document) - independent reviews - government responses to select committees - certain departmental reports (not resource accounts) - certain departmental reviews - diplomatic documents such as treaties - draft bills • reports of inquiries that are not to be published as House of Commons Papers may be published as Command Papers Independent reviews and reports High-profile independent reviews can also be published as Command Papers. If a large amount of media and public interest is expected, then the independent author and sponsoring department should consider formal publication of the report. Examples of independent reviews published as Command Papers include; • Professor Löfstedt's review of health and safety legislation (Cm 8219) • the review of the commercialisation and sexualisation of children (Cm 8078) • the review of police officers' pay and conditions (Cm 8024) Please note that presenting a paper as a Command Paper does not imply that its contents have been endorsed or are supported by government, especially if the material has been produced by an independent body. Why is publishing as a Command Paper important? Publication of major government proposals and initiatives supports the democratic process and helps to ensure that government is transparent in its decision making. This is particularly the case where the issues raised could result in legislation or impact on public finances. Publishing documents that can be easily accessed and have been produced to known standards ensures that MPs, citizens and businesses can engage with, and scrutinise, the work of government. Command Papers therefore need to be published using standard publishing industry processes. The application of standard publishing processes helps users find papers long after a document is first published, so providing an audit trail of policy development and a historic record. The Command Paper series provides a continuous record of government thinking since mid-nineteenth century and is an invaluable resource for researchers. If the content of a report meets any of the criteria listed under [Command Paper requirements](#) then it should be published as a numbered Command Paper. Un-numbered Command Papers The vast majority of Command Papers are numbered. However, there are a few Command Papers that are un-numbered. The most significant examples are explanatory memoranda to statutory instruments and the Queen's Speech. Other documents that may be published as un-numbered Command Papers are: - Contingent liability minutes - Treasury minutes concerning remission of outstanding debt, departmental minutes (regarding gifts to foreign countries, for example) - explanatory memoranda to treaties (which are themselves laid as numbered Command Papers) - reports of non-governmental bodies where government or Parliament has a major interest (such as the BBC’s annual report and accounts) Other than these examples it is not usually appropriate to publish important documents as un-numbered Command Papers. House of Commons Papers House of Commons (HC) Papers are parliamentary papers that are laid before Parliament that have been ordered to be printed by the House of Commons. Many HC Papers are produced in response to a statutory requirement. HC Papers include departmental annual reports and accounts and National Audit Office reports. Statutory inquiry reports and other reviews may also be published as HC Papers. HC Papers form part of a numbered series that is administered by the Journal Office in the House of Commons. The specific format and laying requirements of the HC Paper series are overseen by the Journal Office. HC Papers are covered by parliamentary privilege. The [Journal Office’s detailed guidance](#) on HC and un-numbered Act Papers is available on the Parliament website. Requests for HC numbers and other queries can be submitted to the Journal Office via email to [[email protected]](mailto:[email protected]) or by calling 020 7219 3361/3252. The Journal Office is the ultimate arbiter on whether a paper required to be laid by statute may be published as an HC Paper and therefore covered by parliamentary privilege. If you are unclear as to whether a paper should be an HC Paper, you should seek advice from your organisation’s legal advisers before you contact the Journal Office. If required, some HC Papers can also be presented to the House of Lords by Command if 'Parliament' is replaced with 'House of Lords' in the standard Command Paper presentation line. You should check with your parliamentary unit if this is a possibility. Un-numbered Act Papers Sometimes known as 'Act Papers', these are documents that must be laid in Parliament by statute but do not form part of the numbered series of HC Papers. The Journal Office defines the requirements for Act Papers, which, unlike HC Papers, are not subject to parliamentary privilege. You can obtain advice from the Journal Office on whether a document should be published as an un-numbered Act Paper. Command Paper requirements Command papers can cover a wide range of subjects, it is important to consider whether a document should be published as one at an early stage. Should a document be a Command Paper? In assessing whether a document should be published as a Command Paper, government organisations should use the criteria below, which also apply to cross-government reports, policy proposals and independent reviews: If the answer is yes to any questions below, then a document is a Command Paper: - Will it prompt an Oral Statement in the House of Commons? - Does it cover topics that might form the basis of a debate in Parliament? - Is it a consultation paper on proposed policies that might lead to future primary legislation (for example, a draft bill) or a significant piece of secondary legislation? - Will it include recommendations (for example, from a review or other inquiry) that might lead to the government bringing forward policy proposals or future legislation? - Will it be of constitutional importance? - Will it be of historical interest to researchers and likely to be included in library catalogues? Government departments' parliamentary units can usually advise as to whether a document should be published as a Command Paper. However, if there is any doubt, please contact The National Archives for advice. Command Papers do not attract parliamentary privilege. Therefore, if the content is of a sensitive nature, or includes criticism of individuals, you should consider publishing the document as an HC Paper. In such cases government organisations should first consult their legal advisers and then seek the views of the Journal Office as soon as possible. Obtaining a Command Paper number Government departments obtain Command Papers numbers from The National Archives. To request a number you will need to provide details of the document's title and proposed laying date. The laying date will generally be the same as the document's publication date. Please note that publication of documents before they have been laid before Parliament is considered discourteous. Numbers are issued up to a month in advance of publication. They can be issued on the basis of working titles. However, you must inform The National Archives when the title has been finalised. If, for whatever reason, the publication of a Command Paper is postponed or cancelled, you must inform The National Archives so that it can reallocate the number. Please email [email protected] to request a number. Numbers required urgently can be obtained by calling 020 8392 5218. Selecting a title for a Command Paper The best titles to use are those that state clearly the content or purpose of the paper. The National Archives strongly advises that the terms ‘green paper’ or ‘white paper’ are not used within the title. This is because these terms do not have any formal definition in the context of official publications and their use may lead to confusion. Formatting and laying of Command Papers While decisions about the design of Command Papers are left to the originating government organisation, you must follow some standard format and styling requirements so that the papers can be laid before Parliament. Command Papers are A4 (297x210mm) portrait, although landscape maps or diagrams may be included. They also have a title page (page 1) which has: - the Royal Arms at the top - the correct presentation line for Command Papers - the Command Paper number - text that is ideally 12pt, but at least 10pt They have a title verso page (page 2) including: - a current copyright and re-use statement - the web and print ISBNs - text indicating availability on www.gov.uk - recycled paper content; - printer line In addition they: - have a contents page (page 3) which will help users navigate the paper - have a back cover including the print barcode - are laid as print copies The Journal Office may refuse to accept documents for laying which do not meet these requirements. The Journal Office has produced detailed guidance on the procedures for laying parliamentary papers. The Command Paper presentation line The presentation line is included on the paper's the title page and follows this formula: 'Presented to Parliament by [minister/s titles] by Command of Her Majesty' Using the Royal Arms The Royal Arms must appear at the top of the title page without the department's name. No text or other imagery may appear above the Royal Arms and nothing may be superimposed over them. Read about the government identity system. Laying format Papers must be laid as printed copies, accompanied by an appropriate cover letter. The Journal Office will not accept electronic copies for laying purposes. Laying outside Westminster Most Command Papers are laid before the UK Parliament. However, in certain circumstances a paper may need to be laid before the legislatures of Scotland, Northern Ireland and/or Wales. If additional presentation is required, the paper should carry an appropriate presentation line and may also need to carry an additional series number. For further information, in the first instance please contact the parliamentary unit of your organisation, or that of its parent department. Publication Command Papers must published on GOV.UK after they have been laid before Parliament. Papers should not be published in hard copy or digitally prior to laying. Contract services A range of services are provided under contract to help government organisations make sure that their parliamentary papers are produced to the required standard. The Print Vendor Partner Contract (PVP) The National Archives is responsible for ensuring that services to produce documents for publication are available to government organisations. These services are currently provided through the cross-government Print Vendor Partner Contract (PVP), let to the Williams Lea Group and managed by the Crown Commercial Service (CCS). To access PVP contract services for parliamentary papers, organisations must formally join the PVP contract if they have not done so already. This is a brief administrative process facilitated by the CCS. For further information on the process please contact a CCS Print Category representative or call the CCS Service Desk on 0345 410 2222 well in advance of using contract services for the first time. Please also contact the CCS with any queries about the PVP contract’s fees and charges. With some exceptions it is possible to use as many, or as few, of the services offered under the PVP contract as necessary. In line with CCS requirements, it is possible to continue to use in-house services or purchase services such as design, typesetting and/or print services elsewhere and combine them with the PVP contract’s services. Print copies Print copies of Command and House of Commons Papers must be produced for laying, statutory legal deposit and any other requirements set by HM Treasury, organisations’ parent departments, or select committees. Where the PVP contract has been used by an organisation to print their documents, the contractor will produce print copies for Members of Parliament at no cost to the organisation. If the PVP contract is not used for print copies, organisations must supply their document’s print copies to the PVP contractor for onward delivery into Parliament and to legal deposit libraries. In such cases, please liaise with the contractor at the earliest opportunity to confirm that the document includes the required publication furniture and that up-to-date delivery information is obtained. See the ‘distribution-only’ option for further information on the steps required when the contractor’s print services are not being used. The PVP contractor will provide production and distribution services to ensure that the official versions of parliamentary papers are produced to standard. The distribution services must be used for House of Command and Command Papers. The services are optional for un-numbered Act Papers and un-numbered Command Papers and organisations may find the additional support useful. Production and distribution services The production and distribution services include: - expert advice about papers’ production and distribution specifications and processes - provision of quotations and timelines - provision and assurance of publication furniture including web and print ISBNs, and Crown copyright statements - publication furniture proofing - managing proofing and sign-off of content (if using PVP print services) - demand management of print copy quantities - print management (if using PVP print services) - provision of copies of print-ready PDFs and web-optimised PDFs (if using PVP print services) - [online notification](#) of laid papers - facilitation of the delivery of print copies for Parliament - bibliographic and information services - delivery of one print copy to each of the six Legal Deposit Libraries - delivery of one print copy to The National Archives - facilitation of three print copies for the contractor - access to other services, such as reprints and services to correct papers The ‘distribution-only’ option If an organisation has not used the contractor’s services to produce and print its document, then it will be necessary to use the PVP contract’s distribution-only option which includes the relevant services above. This will ensure that print copies of documents are available for Members of Parliament after laying and are distributed to the legal deposit libraries. Organisations using this option will need to contact the contractor to: - obtain and check the inclusion of print and web ISBNs and print ISBN barcode - check the inclusion of the most up to date Crown copyright and re-use statement if applicable - ascertain the number of print copies to be delivered to the contractor - ascertain the date and time print copies should be delivered, generally on the working day before laying - obtain labelling, packing and delivery instructions - deliver appropriately labelled and packaged print copies to the contractor ## Useful contacts There are a number of organisations who set standards, provide guidance and services related to the production of a parliamentary paper. \| Who \| Area of advice \| Contact details \| \|---------------------------\|-------------------------------------------------------------------------------\|--------------------------------------------------------------------------------\| \| Government organisations \| \| \| \| The National Archives \| Command Paper numbers and requirements \| [email protected] \| \| \| Publishing advice including the use of appropriate copyright and re-use statements \| 020 8392 5218 \| \| Cabinet Office \| Information on HM Government identity system and branding \| [email protected] \| \| \| \| communication.cabinetoffice.gov.uk/hmg \| \| Crown Commercial Service \| Information on using the PVP contract and contract fees and charges \| Contact existing departmental Crown Commercial Service Print Category team contacts or call 0345 410 2222 \| \| Government Digital Service\| Manages GOV.UK \| Contact existing Government Digital Service contacts (which maybe through a parent department if applicable) or email [email protected] \| \| \| Information on making web PDFs usable and accessible \| https://www.gov.uk/service-manual/user-centered-design/resources/creating-accessible-PDFs.html \| \| Office of Disability Issues\| Information on making publications accessible for disabled people \| odi.dwp.gov.uk/ \| ### Suppliers \| PVP contractor Command and House Papers Service Delivery Team \| Production services (print, creative and distribution) \| 1.1. [email protected] \| \|-------------------------------------------------------------\|--------------------------------------------------------\|-----------------------------------\| \| \| \| 1.2. 020 7394 4571 \| \| \| \| 1.3. Organisations should continue to liaise with their usual Command and House Papers contact on [email protected] or contact their Williams Lea Account Manager. Any initial queries about using the PVP contract and its charges and fees should be put to the Crown Commercial Service. \| \| Other suppliers \| Production services as necessary \| \|-----------------\|----------------------------------\| Parliamentary offices \| Journal Office \| House of Commons Paper numbers and requirements \| [email protected] \| \|----------------\|-----------------------------------------------\|-----------------------------\| \| \| Un-numbered Act Paper requirements \| 020 7219 3361/3252 \| \| \| Advice on laying procedures \| Guidance on laying parliamentary papers \| \| Vote Office \| Distributes print copies of papers to members of the House of Commons \| The PVP contractor is responsible for liaising with the Vote and Printed Paper Offices on the number of print copies they require. Generally, it should not be necessary for organisations to contact these offices directly on parliamentary papers. \| \| Printed Paper Office \| Distributes print copies of papers to members of the House of Lords \| For Annual Reports and Accounts, it may be necessary to consult the following organisations for advice: - Parent department (relevant to arm’s length bodies) - HM Treasury (generally central government departments and trading funds only) - National Audit Office Audit and accountancy services suppliers Parliamentary papers planning Parliamentary papers can be complex; it is important to plan the document’s production thoroughly and keep everyone involved informed of changes to the production schedule. This section explains in more detail the various stages and issues that you should consider. Government organisations should also consult any in-house publishing guidance and/or information provided by their parent department. Some papers are relatively complex, such as annual reports and accounts, and statutory inquiry reports, where further guidance will apply. In addition, it may be necessary to factor in an organisation’s own procedures and where responsibilities sit within different teams. In general, it is best to start planning and liaising with colleagues and potential suppliers as early as possible. Who to consult? In addition to those responsible for drafting the paper, input may be required from other teams within and outside a government organisation. Within an organisation, you may need to consult parliamentary, communications and/or publishing teams to confirm that a paper is being produced, the expected date of publication and to discuss any media publicity or digital engagement that may support the paper. You may also need to seek external advice from a number of organisations. Once there is agreement to publish a parliamentary paper, keep everyone involved informed of progress or any potential issues. Ensure that key contacts, including suppliers, have your up-to-date contact details. Gather cost estimates or quotes You should also obtain the necessary sign-off from the budget-holder for the likely total cost of the project. On request, the paper also needs to be available in Braille, large print, audio or British Sign Language, so include these in the plan and budget. Establish the project’s time frame Agree a schedule that allows enough time to circulate and check proofs. Overrunning projects mean greater expense. Ensure the commissioning agreement assigns the resultant copyright in the document to the Crown You must do this if an external author is being used to write a report, for example an independent review. Plan and agree the report’s content - Does the government organisation have a drafting template or branding guidelines for major reports? - Are there graphs, photographs, logos or other items? - Do you have permission to use any third party copyright material? - If there are photographs of identifiable individuals, have they signed a ‘model release’? Production Typesetting and printing the document and/or creating print and web PDFs - Will the report be printed in colour? Or in black and white (monochrome - which is cheaper than colour)? - Identify any professional services required to typeset the document and/or to create print and web PDFs. Is this done in house? - Most organisations publish their parliamentary papers in PDF format. To comply with Government Digital Service policy on open document formats organisations should be working to ensure that PDFs published on government websites adhere to the requirements for viewing government documents. The National Archives is liaising with the Crown Commercial Service to see whether PDFs produced for parliamentary papers through the PVP Contract adhere to these requirements by default. - Does a summary, or all of the report, need to be translated into Welsh? - Is an Easy Read edition required? Producing papers over 32 pages long Remember that papers over 32 pages long need a separate cover. Covers of papers published through the contract must not be laminated. This is because laminated covers are not recyclable. Allow sufficient time - Ensure that there is enough time to proof read the document for typographical and/or other errors before submitting the final file to print - Ensure that the suppliers are aware that the paper will be laid in Parliament. This will allow them to better manage their resources to assist • Allow time for ministerial submission and clearance. Cross-departmental approvals take longer and need to be factored into the schedule • Suppliers and colleagues need to be kept up to date with changes in the schedule. Some schedules may require out-of-hours working, which will change/increase costs and may require another spending approval • Please note that due to the practicalities of the print production process there will be a time beyond which a print schedule cannot be reduced further. In addition, while there may be sufficient time to print a paper, during busy times a supplier may not have enough capacity to print and deliver print copies to a fixed deadline, particularly when a paper’s sign off has been delayed Written Ministerial Statement or Oral Statement Confirm with the relevant parliamentary unit whether a Written Ministerial Statement or Oral Statement will be used to announce the laying of the document to the House. Submission to a select committee Check whether the paper must be submitted to a select committee prior to publication. Check how many print copies are required The contractor will supply copies to Vote Offices for MPs at no cost to you, so you don’t need to count and pay for MPs’ copies unless you have chosen the ‘publish-only’ option. How many copies are required by your organisation for laying, its select committee, the organisation’s own use and for distributing to stakeholders? Remind colleagues that it is cheaper to email a URL instead of sending everyone a printed copy. • Is a cover letter required for stakeholder copies? • Is the stakeholder list complete? • How will the organisation’s printed copies be mailed out? • Have the distribution costs been budgeted for? Publication and despatch Allow enough time to submit the final file to print, and for printing, binding, packing and despatch of printed copies. Contact your organisation’s digital team, or that of your parent department to alert them that you are planning to publish a document on GOV.UK Ensure that both the print-ready PDF and web-optimised PDF have been passed to your digital team, or that of your organisation’s parent department if you do not have access to GOV.UK, ahead of the document being laid. This will help to minimise the time between laying and subsequent publication on GOV.UK. Some documents’ files will include more than one web-optimised PDF and one print-ready PDF. Remember that some PDFs could be large files. There may be restrictions on the size of files that can be sent and received by email in your organisation. If these limits apply other arrangements will need to be made to ensure that the files are received in time for prompt publication. Alternatives to email could include the use of memory sticks/courier or your supplier’s FTP site. In addition, some organisations’ shared email accounts may allow larger files to be received than personal email accounts. Ensure that the arrangements provide the appropriate level of security and if this is unclear consult with your organisation’s security officer. Remember, the paper cannot be published online or otherwise distributed digitally or in hard copy until it has been laid before Parliament. Generally, publication should take place as soon as possible after laying. The version published online must be exactly the same as the version laid before Parliament. When published on GOV.UK, the document must be accompanied by the appropriate publication metadata. Controlling costs and schedules There are a number of steps that government organisations can take to keep down the production costs of parliamentary papers. Consider these if a paper is being produced to a very tight schedule: - Use monochrome (black and white) throughout which is cheaper and quicker than colour. Avoid grey tints and photos - in other words - keep any images such as graphs to black and white lines or dots so that the document can be printed on uncoated (cheaper) paper - Opt for colour only if colour images or graphics are necessary for understanding the content of the paper. If the paper is being typeset, avoid high correction charges by ensuring the text is as final as possible before it is sent to an external typesetter - Produce black and white documents in Word to remove the need for a typesetter. If you have the appropriate Adobe software, and the skill, produce web and print PDFs from the Word file. Or the contractor can produce them for you for a fee - Avoid trying to produce print PDFs directly from colour Word documents - have colour documents typeset. This ensures that colours, bleeds and so on are correctly specified for printing - Avoid solid opaque ink coverage over large areas. The print technology used for short print runs can result in the finish of printed documents being poor. Large areas of colour can also take longer to dry - Aim for extents fewer than 72 pages. Papers longer than 72 pages have additional binding requirements that increase cost and production time - Keep the number of print copies required as low as possible. Additional copies increase the overall cost and take longer to produce. After the document has been laid and published, email the paper's URL instead of posting printed copies to the stakeholders. Production and publishing flowchart and planning checklist The National Archives and Department for Transport have produced a production and publishing flowchart. The flowchart provides a detailed breakdown of the steps involved in the production and publication of parliamentary papers, particularly Command Papers. Not all documents or organisations will include all of the steps outlined here; for example not all papers will include third-party copyright photographs. In addition, some organisations' documents are produced in an in-house Word template which may mean that there is no need to purchase typesetting services. The flowchart will assist those who have no or limited publishing experience and can help ensure that no important steps are missed: [Parliamentary papers production flowchart](#) (XLS, 0.10Mb) Annual reports and accounts Generally government organisations’ annual reports and accounts are published as House of Commons (HC) or un-numbered Act Papers. The Journal Office sets the requirements for these parliamentary papers. Contact the office at [email protected] or call 020 7219 3361/3252. Much of the production and publishing information provided applies equally to annual reports and accounts. However, these papers have additional clearance procedures, and organisations may need to check with their parent department or, if a central government department, with HM Treasury to ensure that the correct processes are followed. You must factor in the additional clearance procedures when planning the production of annual reports and accounts. Checklist Government organisations have their own detailed project plans to produce the report and accounts - this summary highlights some of the steps involved. Government organisations may need to consider these: - Central departments should follow guidance from the HM Treasury - Ensure any standing templates are updated to reflect current guidance. Do not assume that previous years’ templates will still be correct - Identify and plan the National Audit Office input\* - Executive agencies and other arms-length bodies should prepare annual reports and accounts in accordance with their governing documents, relevant legislation and directions given by parent departments - Executive agencies and other arms-length bodies should confirm with their parent department the timelines for approval by the permanent secretary and relevant ministers - Obtain a spending controls exemption to produce and publish the report and accounts - Combine draft text and financial information - Confirm whether the design and layout of the report and accounts will be managed in house or given to an external design agency or typesetter - Review and agree on the design and layout of the document - Departments must obtain and include an HC number from HM Treasury. In some cases parent departments can obtain HC numbers for other organisations. Otherwise obtain numbers directly from the Journal Office - Check that the presentation line in the document is correct. If the report and accounts is an HC or Act Paper ensure that it is laid under the correct piece of legislation, consult with legal advisors if there is any doubt. It is the authoring organisation’s responsibility to ensure that the laying authority is correct - Obtain and include the necessary publication furniture including ISBNs, print ISBN barcode, copyright and re-use statement from the PVP contractor and submit the completed cover, title page and title verso to the Journal Office for approval - Liaise with external auditors to audit accounts. Bear in mind that more than one audit may take place - Review and manage report and accounts drafts leading up to final approval to publish - Ensure that the document has been proof read for typographical errors and to ensure that the correct copyright statement, ISBNs and barcode have been included before sending the document to the printers - Obtain final approval from relevant organisations (such as external auditors and parent department) to publish - Confirm how many print copies are required - If the publishing contractor is not being used to supply print copies, agree a print copy delivery date with the contractor. Obtain packing and labelling requirements - Send final print file to your print supplier - HM Treasury lays central departments’ annual reports and accounts. Departments should liaise with HM Treasury to ensure that copies of the report and accounts have reached the Treasury in time to meet the planned laying date - Executive agencies and other arms-length bodies should liaise with HM Treasury, or their parliamentary unit or that of their parent department, to ensure the report is laid in Parliament - Organisations without access to GOV.UK should liaise with their parent department’s digital team to ensure that the web PDF and print PDF of the annual report and accounts is published on GOV.UK - Remember, the version published online must be exactly the same the version laid before Parliament - Ensure that a web-optimised and a print-ready PDF of HC Papers, is published on GOV.UK as soon as possible after laying. Please note that some documents may have more than one web-optimised PDF and one print-ready PDF. There should not be a long delay between laying and publication \The NAO has prepared checklists which document all of the matters that should be addressed, where appropriate, in a set of annual reports and accounts. You or your colleagues should look at these checklists in advance to ensure that the timetables for laying accounts are not delayed because of omissions in the accounts. The NAO has also published a two page guide on governance statements. This guide has been prepared by reviewing a number of departments and arm’s length bodies across government and drawing out some of the key messages arising from the first year implementing the governance statements. You should engage with governance colleagues to ensure that the governance statements in their annual reports and accounts adhere to best practice. How copyright applies Copyright applies to parliamentary papers and must be indicated on a paper's title verso page (page 2). Placing the statement on the title verso page is standard publishing industry practice. The National Archives publishes guidance on the appropriate copyright and re-use statements to include in parliamentary papers and in other government publications. The statements allow for the owner of the copyright and the year that the paper is first published to be clearly identified and give the terms under which the content can be used by others. Crown copyright Most documents and website content produced by civil servants will be subject to Crown copyright. If a government organisation has commissioned a third party to author a document, for example an independent review or research, it should ensure that the copyright in the work is assigned to the Crown. To this document the government organisation should add the appropriate copyright and re-use statement. Further information relating to commissioning agreements and copyright is available in Publishing: a guide for government organisations. Using the appropriate statement allows the re-use of government information, both Crown and non-Crown, through the Open Government Licence. Copyright and Parliamentary Papers produced by non-Crown bodies Organisations which own their own copyright are encouraged to make their information available for use and re-use with the minimum of obstacles. This will contribute to greater transparency and openness and ensure that important documents are disseminated to as wide an audience as possible. One of the easy ways in which this can be achieved is by referencing the Open Government Licence in the copyright statement. Copyright statements for both Crown and non-Crown bodies can be found in Copyright statements in official publications. You can find further information about the Open Government Licence on our website. Publishing: a guide for government organisations Laying and publishing a paper Government organisations are responsible for ensuring that parliamentary papers are published correctly on GOV.UK. This section explains the steps that organisations need to take to ensure that end users can access their publications. Checking that a paper has been laid Parliamentary papers must be laid in the Journal Office before they are published or otherwise distributed. The act of laying is undertaken by your department's parliamentary clerk, or that of your parent department. Some annual reports and accounts however are laid by HM Treasury. Publishing before laying is considered discourteous to the House of Commons. Securely wrapped hard copies may be distributed under embargo before a document is laid, however the copies must not be unwrapped until after laying has taken place. You can check whether your organisation’s document has been laid by speaking to your department’s parliamentary clerk. In addition, notification of laying is available through the Journal Office System. Organisations can also confirm the laying of documents by referring to the Votes and Proceedings for the day on which the document was due to be laid in the House of Commons. The Votes and Proceedings can be found on Parliament’s website. Publishing the paper Organisations must publish their Command, House of Commons or un-numbered Act Paper on GOV.UK on the same day that it is laid before Parliament. The version published on GOV.UK should be the same as the version laid in Parliament. Organisations may co-ordinate publication so that it coincides with a major announcement or policy launch. It is the authoring organisation’s responsibility to ensure that the paper is published on GOV.UK. This requirement applies to papers published by organisations listed on GOV.UK. It also applies to organisations which have an exemption from publishing other content on GOV.UK. Exempt bodies will need to liaise with the digital teams in parent departments to arrange publication. It is strongly recommended that exempt bodies identify the appropriate contacts in advance of the paper being laid in Parliament. In the context of GOV.UK, Command, House of Commons and un-numbered Act Papers are referred to as ‘official documents’. The documents’ web-optimised PDF and print-ready PDF need to be published on GOV.UK. Web-optimised PDFs should meet Government Digital Service guidelines on creating accessible PDFs. More information can be found in the Government Service Design Manual. For a fee, the PVP contractor and other suppliers can provide services to create an accessible PDF. Most organisations publish their parliamentary papers in PDF format. To comply with Government Digital Service policy on open document formats organisations should be working to ensure that PDFs published on government websites adhere to the requirements for viewing government documents. The National Archives is liaising with the Crown Commercial Service to see whether PDFs produced for parliamentary papers through the PVP Contract adhere to these requirements by default. Organisations must obtain print-ready PDFs from their printer. The print-PDF is the file used by the printer to produce the copies that your organisation, or parent department will lay in Parliament. The publication of the print-ready PDFs will allow any supplier wishing to sell professionally printed copies to the public to do so. There is no official contracted print publisher, although organisations will be able to obtain print copies from their printer to give stakeholders or to use at press launches. Organisations should time the receipt of documents' final web-optimised PDFs and print-ready PDFs so that GOV.UK publication can take place on the same day as the document is laid before Parliament. It is strongly suggested that both web PDFs and print PDFs are received before laying to expedite publication. Parliamentary papers PDFs published on GOV.UK need to include specific metadata. Including the correct metadata, as advised by Government Digital Service, will ensure that your document can be found by the GOV.UK search functionality for official documents. The web-optimised PDF metadata includes the document’s: - web ISBN - HC number/Parliamentary Session or Command Paper number (where appropriate) - https://www.gov.uk/how-to-buy-printed-copies-of-official-documents in the ‘Order URL’ field, with the price field left blank Print PDFs of official documents uploaded to GOV.UK should include the: - document’s title in the relevant metadata field with ‘(print-ready PDF)’ inserted after the title - print ISBN - HC number/Parliamentary Session or Command Paper number It is suggested that the print PDF appears underneath the web-optimised version. When supplying the PDFs to digital teams you should include the print and web ISBNs, Cm number or HC number and Parliamentary Session years in the covering email. Organisations may also wish to supply extra explanatory text to include on the document’s page on GOV.UK. Further information on the metadata to be added can be found in the GOV.UK Publisher Manual. Publication metadata, such as the ISBN, HC number or Command Paper number are unique to particular publications. This information is used by researchers, students and librarians to identify specific publications, therefore it is important that it is included with every document published on GOV.UK. When uploading House of Commons Papers organisations must ensure that the correct Parliamentary Session is selected. For annual report and accounts, the Session that a document is laid in will not always be the same as the financial year that the report covers, For example; HM Treasury’s 2013-2014 annual report and accounts was laid in the 2014-2015 Parliamentary Session. Including the wrong Parliamentary Session can create difficulties for users trying to locate your document. If there is any doubt consult your organisation’s parliamentary unit or check the Parliamentary recess dates. These documents may also be published in on GOV.UK in additional formats and on organisations own websites, where they exist. If a paper has been distributed through the PVP contract, bibliographic information about the document will be available to users and statutory legal deposit (in print) will be undertaken on the organisation’s behalf. Risks associated with not publishing documents correctly on GOV.UK* Failure by organisations to publish promptly will result in the public, media, third-sector or businesses being unable to access the information. Details of documents laid before Parliament are publically available, therefore users of these documents expect to be able to find these documents once they have been laid. Failure to publish promptly may result in the content of documents being discussed in the media, but the wider public being unable to access the information. Organisations contact centres may also receive enquiries requesting copies of a document’s PDFs if these have not been made available on GOV.UK. GOV.UK exceptions Print-ready PDFs do not need to be uploaded to GOV.UK for un-numbered Act or un-numbered Command Papers. However, if these PDFs are available please consider whether their inclusion would be helpful for end users. A few organisations which produce House of Commons and un-numbered Act Papers should not publish documents on GOV.UK. This is because in the context of GOV.UK, they are not considered to be government organisations. These organisations are the: - National Audit Office - Electoral Commission - Local Government Boundary Commission England - Independent Parliamentary Standards Authority - House of Commons and House of Lords - medical professional bodies overseen by the Privy Council Office. Instead, these organisations should ensure that their papers are published on their own corporate websites, ensuring that papers' copyright statements refer availability on their own website instead of referencing GOV.UK. Additional publishing information for un-numbered Act and un-numbered Command Papers If an organisation is producing an un-numbered paper without using the PVP contract's services please ensure that the correct copyright and re-use statement is included within the document. Please also ensure that statutory legal deposit obligations are met by submitting printed copies of the document to the legal deposit libraries. Please see the Journal Office guidance for other information relating to un-numbered Act Papers. Publication and the evolution of policy Command and House of Commons papers must be published on GOV.UK. Information included when the documents are uploaded will ensure that users will be able to search for documents across the entire body of papers. As policies and priorities change, previously published Command or House of Commons papers may be superseded. Organisations should never remove superseded documents from GOV.UK. This will result in the paper no longer being searchable. If a document is superseded, organisations should archive the GOV.UK page which the document was originally published on. Alternatively, if the superseded document appears on a page with other material which is current, create a separate standalone page for the document and archive that. This will ensure the document remains available but will make it clear that the content no longer reflects current policy. How to correct a paper Errors in parliamentary papers are rare but there are services available to help correct a document appropriately. If an error or omission is noticed in a parliamentary paper once it has been laid, government organisations need to contact the Journal Office and the PVP contractor as a matter of urgency. Organisations with parent departments must also inform their parent departments of errors or omissions contained within laid documents. As a published paper must be the same as its laid version, organisations must not amend the online version without publishing a correction slip. An amendment can be included in several ways, depending on the change required: - ‘stickering’ - a correction slip (sometimes known as an erratum slip); or - withdrawing and re-laying the paper Any of these options may involve additional cost. Where possible, to minimise the cost, corrections should be dealt with before print copies are despatched to Parliament or stakeholders. Stickering ‘Stickering’ can take place if a minor error is identified after a document has been professionally printed, but generally prior to it being laid. If this is the case, the print copies (including the laid copies and those to be distributed on publication, where not already despatched from the contractor) should have a sticker with the correct text placed over the erroneous text. The online versions of the document including web-optimised PDFs and print-ready PDFs should also be corrected before publication. Correction slips Correction slips should be used where an error or omission is noticed after laying has taken place. Correction slips should be issued to Parliament and will include information related to the publication being corrected, and stating the text that is being corrected. Correction slips are usually used to correct typographical errors rather than factual inaccuracies. To ensure correction slips include the relevant publishing information, The National Archives provides correction slip templates for House of Commons and Command Papers ready for organisations to complete. Examples of filled out correction slips are also available. Blank templates can also be obtained from the PVP contractor. Organisations must obtain Journal Office approval before correction slips are distributed in print or online. Organisations must also ensure that the correction slip is uploaded where the paper is published online, including GOV.UK. It is recommended that organisations embed correction slips in papers’ web and print PDFs to ensure that the corrected information is not missed by users. Organisations will also need to indicate that the content of the PDFs has been updated through the ‘public change note’ on the document's page GOV.UK. In addition, printed correction slips must be distributed to the legal deposit libraries, and Parliament. The PVP contractor provides services to government organisations to ensure that this distribution and the issuing of updated bibliographic data takes place. Organisations should also ensure that correction slips are sent to stakeholders provided previously with print copies to ensure clarity on the document's final content. Withdrawing and re-laying a paper If the error or omission is significant, it may be necessary to withdraw and re-lay a new version of the paper. If the decision is taken to re-lay a withdrawn paper government organisations should ensure that the re-laid version has a new set of ISBNs. If a Command Paper is withdrawn and re-laid, then government organisations should request a new Command Paper number from The National Archives as well. If a House of Commons Paper has been withdraw and re-laid, then the Journal Office should be consulted on whether a new HC number is required. The application of new ISBNs and paper number will help users to distinguish between the different versions of the paper. In addition, a re-laid version of a paper should contain additional text on the title page explaining briefly that it is a new version of a previously laid and withdrawn document. The PVP contract provides services to support this process including replacement bibliographic data and legal deposit arrangements. If it is decided to withdraw a paper without re-laying another version the PVP contract provides services to cancel previously issued bibliographic data and the withdrawal of legal deposit copies. Costs to correct a paper If the error is the fault of the government organisation, it will be liable for any additional costs involved. If the error is the fault of a supplier then it will be liable for the costs involved. It is the responsibility of the authoring organisation to check the final proof of a paper and approve it for laying and publication. After publishing a paper Once a parliamentary paper has been produced organisations should review the process. Think about your organisation more broadly and the needs of colleagues who may be required to produce documents in future: - consider what went right and what needs to be managed differently in the future - check whether any guidance needs to be updated, including The National Archives’ publishing guidance, and advise those concerned - share information with colleagues to inform future papers - ensure relevant colleagues (including those in other public sector organisations) and suppliers are on The National Archives’ contact list for its guidance updates	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/4536-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 30, "total-input-tokens": 61010, "total-output-tokens": 12265, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 466, 1 ], [ 466, 4073, 2 ], [ 4073, 7259, 3 ], [ 7259, 8265, 4 ], [ 8265, 10277, 5 ], [ 10277, 12476, 6 ], [ 12476, 14913, 7 ], [ 14913, 17331, 8 ], [ 17331, 19075, 9 ], [ 19075, 20604, 10 ], [ 20604, 23213, 11 ], [ 23213, 25310, 12 ], [ 25310, 28628, 13 ], [ 28628, 29922, 14 ], [ 29922, 31900, 15 ], [ 31900, 33909, 16 ], [ 33909, 36126, 17 ], [ 36126, 38938, 18 ], [ 38938, 40028, 19 ], [ 40028, 42374, 20 ], [ 42374, 45287, 21 ], [ 45287, 47299, 22 ], [ 47299, 49743, 23 ], [ 49743, 52082, 24 ], [ 52082, 54383, 25 ], [ 54383, 56288, 26 ], [ 56288, 58292, 27 ], [ 58292, 60127, 28 ], [ 60127, 61563, 29 ], [ 61563, 62237, 30 ] ] }
465b00ac4fd75e4047cf48a847a8947953630410	Putting Parsimonious Preservation into Practice Recent Developments in Digital Preservation at The National Archives (UK) Tim Gollins Head of Digital Preservation, The National Archives, UK Abstract The principle of Parsimonious Preservation was developed at The National Archives (1) and now underpins advice and guidance given to the UK archive sector on digital preservation (2). The National Archives has recently applied this principle to the architecture and design of its next generation digital preservation environment, the Digital Records Infrastructure (DRI). This paper re-caps the principle and offers additional evidence in support of Parsimonious Preservation in larger institutions and archives. It describes some of the challenges now facing The National Archives in the field of digital preservation and how the archive has responded. While there are many and varied threats to the successful curation of digital material, the impression given by the current generation of digital preservation systems and by much of the “received wisdom” in the digital preservation community is that imminent technological (software/data format) obsolescence is the primary threat. This paper argues that, while the threat of technological obsolescence is real in some particular cases, a much more imminent threat is poor capture and inability to achieve safe and secure storage of the original material. Parsimonious Preservation challenges the assumptions of traditional digital preservation and offers a sustainable, realistic response, for large and small institutions to the doom laden views that pervade the more traditional literature in the field. The overriding message from Parsimonious Preservation is “Don't Panic!”. Introduction Apart from the obvious alliterative opportunities in the title, we choose to adopt the principle of parsimony (as first put forward in the 14th century by William of Occam) to guide our work on digital preservation. The word parsimony is defined as “economy in the use of means to an end; especially: economy of explanation in conformity with Occam’s razor” and that implies not looking for solutions to problems for which evidence is absent, and using only the minimum necessary intervention to secure our digital heritage for the next generation. This is not a “miserly” or “stingy” approach as some definitions of parsimony would imply, however it does have the benefit of thrift in these challenging economic times (3). To apply the principle of parsimony to digital preservation we need to consider our scope, our goals, and the evidence for actual threats to their achievement. We should also remember that the principle of parsimony is just that, a principle, an heuristic, a rule of thumb to help us understand and manage our world, but not a rigid doctrine. The Principle of Parsimonious Preservation The Goal - Forever! How long can an institution realistically plan to keep things for? It can set a long term aim; indeed its charter may require it to do so, but in practical terms how far ahead can it really plan? I contend that, while the overall aim may be (or in our case must be) for “permanent preservation”, “in perpetuity” or “forever”, the best we can do in our (or any) generation is to take a stewardship role. This role focuses on ensuring the survival of material for the next generation - in the digital context the next generation of systems. Here immediately the principle of parsimony can be applied; the minimal intervention implied means minimal alteration, which brings the benefits of maximum integrity and authenticity. It also means a minimal assumption as to what the future may bring or enable; the one thing history teaches us is that predicting the future is really problematic! This is the same principle that is applied by us in the care of a physical collection of artefacts (e.g. paper documents) (4). We should also remember that in the digital context the next generation may only be 5 to 10 years away! Threats – Real There are many complex and interacting threats to the long term survival of digital objects. However these threats tend to boil down to a combination of the following (in no particular order): - Media (removable) Decay / Obsolescence - Hardware Obsolescence - Software / Data Format Obsolescence - Online Storage disaster/decay - Incomplete / Inadequate capture All of these threats are real to a degree. However not all of them are immediate and pressing for the majority of institutions or the majority of data, even with material that is relatively old (in digital terms). First let us consider the decay or obsolescence of removable storage media. This is one of the most dangerous threats to digital data; it catches you unawares, and only manifests itself at the point when you can do very little about it! We all have them at home, the 3.5” floppy disk, the Zip Disk containing our dissertations, or at work the personal DVD back up we took only 4 years ago. It may already be too late! Media may not last as long as the manufacturers claim (5) and even if it does the devices to read it may no longer be available. Moving on to consider online storage disaster or decay (so called “bit rot”); although disaster is theoretically a significant threat (the consequences of an unmitigated storage hardware failure would be catastrophic), online storage environments are almost always managed to mitigate the risk of such failures (be that through use of RAID and/or offline back up regimes). Bit rot (where, as a result of random physical processes a bit of data is flipped from 0 to 1 or vice versa) is only an issue in the case of very large collections. In most practical circumstances, for smaller institutions, the measures already taken by a good IT services department will more than adequately mitigate these threats. We should now mention hardware obsolescence; when not directly associated with some form of removable media, is also a much less pressing problem, and tends to manifest in relatively rare circumstances where specialised hardware is needed to display unusual forms of data. For mainstream data on mainstream systems I contend that it is not a significant issue (6). Threats – Immediate However, the most pressing and immediate threat to digital data is incomplete or inadequate capture: - In other words “Don’t it always seem to go that you don’t know what you’ve got till it’s gone?” (7) - And as Bracton said in the 14th century “vulgariter dicitur, quod primo opportet cervum capere, et postea cum captus fuerit illum excoriare” or “it is commonly said that one must first catch the deer, and afterwards, when he has been caught, skin him” Although it turns out Mrs Beaten never did say “First catch your hare”! (8). This is so much a matter of common sense that it can be overlooked; we can only preserve and process what is captured! While this has always been the case even in the context of paper records, digital information brings with it opportunities that should be considered carefully, before blindly adopting existing capture policies. The National Archives have recently consulted on a new Record Collection Policy (9) with exactly this in mind. It is important to note that even with a good collection policy in place, practical considerations of getting data from the organisation that created it with sufficient contextual information can present significant issues; this is the vexed and controversial topic of “metadata”. Threats – Distant Finally we come to software (or data format) obsolescence; this is perceived to be a very significant and imminent threat. It is my contention that this threat is significantly smaller in practice, for the majority of data in the majority of institutions, than the perception or received wisdom would indicate. This view is based on the experience of The National Archives over the last 10 or so years, the experience we are beginning to get as we scale up our ability to accession new born digital records into the archive and more recently a survey of the records that we, as an administrative government department, create ourselves (see below). And it is not just our view; at the SUN Preservation Special Interest Group meeting in Malta (10) in 2009 David Rosenthal of Stanford University compared the stability of the UNIX File system interface with the vision of obsolescence envisioned by Jeff Rothenberg in 1995. Jeff’s vision (11) was that “… digital documents are evolving so rapidly that shifts in the forms of documents must inevitably arise. New forms do not necessarily subsume their predecessors or provide compatibility with previous formats.” Rosenthal characterised this as a view that “Incompatibility is inevitable, a force of nature”. In challenging this view Rosenthal observed the longevity of the UNIX file system. With a defined interface now some 30 years old, capable of handling disks 1,000,000 times bigger than when first created, and executed by new software at least 4 times bigger (but faster and more reliable) than the original, it is still capable of reading every single disk ever written in that 30 years (6). Looking back with 20/20 hindsight at Rothenberg’s paper Rosenthal concluded “Format obsolescence almost never happens”. More recently in a number of Blog articles Rosenthal has re-confirmed his views and updated his arguments (12) (13) (14), amongst other sources he draws on the carefully framed and executed research from Andy Jackson at the British Library concerning the distribution of formats over time in the UK web domain (15). Research on The National Archives Own Records Recently, colleagues in the Knowledge and Information management Team at The National Archives conducted a survey of the file formats (as file extensions) of all of the records held in our own EDRMS. To be clear these are the records that we produce as a government department in our work developing public policy, guidance, and delivering a public service. We believe them to be typical of a UK government department; this is not a survey of our “collection”. The survey reveals the extremely well known “long tail” distribution of file extensions that conforms to power law distribution. Over 80% of the data is contained in the top three extensions, and over 99% in the top 30 (see Figure 1 and Table 1); the tail continues for 800 extensions in total. ![File Formats- by extension - Top 30](image) Figure 1 \| Extension \| Count \| Type \| Cumulative % \| \|-----------\|---------\|--------------------\|--------------\| \| msg \| 1225790 \| Email \| 57.6% \| \| doc \| 437803 \| Word Processor \| 78.1% \| \| xls \| 135573 \| Spreadsheet \| 84.5% \| \| pdf \| 82524 \| PDF \| 88.4% \| \| jpeg \| 58748 \| Image \| 91.1% \| \| url \| 20701 \| Link \| 92.1% \| \| xlsx \| 16777 \| Spreadsheet \| 92.9% \| \| docx \| 16765 \| Word Processor \| 93.7% \| \| htm \| 15616 \| Web Page \| 94.4% \| \| txt \| 14199 \| Plain Text \| 95.1% \| \| ppt \| 12834 \| Presentation \| 95.7% \| \| gif \| 11154 \| Image \| 96.2% \| \| rtf \| 11046 \| Word Processor \| 96.7% \| \| tif \| 9293 \| Image \| 97.2% \| \| MBX \| 6044 \| Email \| 97.4% \| \| png \| 4812 \| Image \| 97.7% \| \| obr \| 4368 \| Link \| 97.9% \| \| bmp \| 3286 \| Image \| 98.0% \| \| zip \| 2499 \| Zip \| 98.1% \| \| html \| 2307 \| Web Page \| 98.2% \| \| csv \| 2266 \| Structured Text \| 98.4% \| \| vsd \| 2088 \| Visio \| 98.5% \| \| DAT \| 1972 \| Data \| 98.5% \| \| xml \| 1898 \| Structured Text \| 98.6% \| \| pptx \| 1700 \| Presentation \| 98.7% \| \| mpp \| 1557 \| Project \| 98.8% \| \| sql \| 1417 \| SQL (database query)\| 98.9% \| \| dot \| 1297 \| Word Processor Template \| 98.9% \| \| VMBX \| 1263 \| Email \| 99.0% \| \| \| 1134 \| (Blank) \| 99.0% \| \| dwg \| 1072 \| AutoCAD \| 99.1% \| Table 1 Examining the list of these top 30 formats we see things with which we are all familiar. We also observe that a number of these formats have been in existence for a long time (and many of the newer formats come from the same well respected sources). We further observe that these are formats that are common across the whole of the world and that without any action from even a national institution the data in these formats will be accessible for another 10 years at least. At this point we return to our goal; to keep material in good stewardship for the next generation of systems. If all our transferred data conforms to this pattern we will not need to intervene (in terms of transforming the data or translating it for our customers) as the material is already in a form that can be readily understood using ubiquitous internet or home computer facilities. We do not expect this situation to change during the life of the new DRI! Our Challenges The National Archives is faced by a number of significant challenges in terms of its work on digital preservation. While, even with the change from a 30 to 20 year rule (16), the first significant wave of digital records transferring from government departments is still some time away, other sources of digital records and other digital assets in need of preservation are already appearing. Some of these collections are in immediate danger of loss as the institutions that are creating them are themselves short lived. New collections arriving These collections (and indeed our view of the records we expect to see from government departments) are of a different shape to what was believed to be the situation when our earlier digital preservation systems were constructed. Our earlier system expected relatively small collections of records in a wide variety of "strange" formats. What we now see emerging are very large collections of records in a small number of common formats (in the case of digitised data vast collections in a single format). Our earlier system assumed the necessity for significant human oversight and intervention in the curation and processing of records, it is now abundantly clear that such an approach is both unnecessary and unsustainable; hence the creation of our new DRI. We are seeing very large collections of digitised material (both as digital records, where the paper original is not available and as digital surrogates where the paper record exists but would be too costly or fragile to re-digitise). We have one of the world’s largest publically accessible Web Archive collections in the UK Government Web archive that contains over 1.5 Billion web pages that we need to secure and preserve for the long term. We now expect relatively large collections of “administrative” documents form government departments in common and familiar formats. Institutions delivering records now In terms of short lived institutions, all significant public enquiries and inquests now operate online, collating and recording their evidence, deliberations and conclusions digitally; the 2012 London Olympic Games was planned managed and delivered digitally and we are the archive that will preserve these records for the future. These types of institutions are beginning to deliver large collections of records to The National Archives. This can create issues which in the past the passage of time would have resolved. For example very up to date data often has very particular sensitivities that is no longer present in older data (one of the reasons for the 30 – soon to be 20 - year rule). Also, the passage of time often allows a more sober reflection on the historical significance of records being selected, which is not necessarily possible very soon after an apparently momentous event. Wider context The National Archives is at a “tipping point” between paper and digital. Our digital collections (in particular the UK Government Web Archive) by some reckonings now equal our paper holdings (~1.5 billion web pages compared to ~ 1 billion sheets of paper in our paper repositories). Unfortunately the there is a further 20 years worth of paper records still to come from government at the same volume as before so we cannot simply shift our attention to the digital. We have to operate more smartly, reduce complexity in our systems, do the minimum necessary and appropriate, and focus on the goal; in other words we have to apply the principle of parsimony. Our Parsimonious Response I will now go on to describe in broad terms the new DRI system we are building and refer back as I do so to the sections above to illustrate how parsimonious preservation is enabling us to respond to the challenges we face. DRI – Overall structure In designing the DRI system we have started from the point of view of the “processes” and “outcomes” that the system has to support and implement. We have focused on 5 aspects and the structure of our new system reflects these aspects. These aspects are: - Transfer and Preparation - Implementing the concept of “Safe Custody” - Ingest and Accessioning - Storage considerations - Export In other words we are focusing on the goal! Transfer and Preparation In my 2009 paper to this conference (1) I took the view (repeated above) that the failure to capture digital material is the biggest single risk to its preservation; our work at The National Archives continues to point to and highlight this risk. In our work this manifests itself in difficulties in the “Transfer Process” when supplier organisations attempt to provide us with material to preserve. In the last year or two we have begun to apply the principle of Parsimony to this part of our work and in particular we are working to drastically simplify both the form and content of the metadata we require. For example our current plan (which will be finalised in guidance published on our website soon) for transfers from government departments focuses on only 6 metadata fields for each digital object transferred. 1. Title - A meaningful folder or file name. 2. Identifier - Not a system-generated ID number, but the filepath which supplies context for the record indicting its relationship to the activities of the organisation; this may be a URI or file-plan classification 3. Date - Note: this is not the date the record was copied to its current location; it should be the last date it was modified 4. Checksum - Generated using the SHA2 (256) algorithm. This guarantees the file has not changed during transfer. 5. Copyright – this will often be Crown Copyright 6. Closure status – This describes any sensitivity that may require the record to be closed for an extended period (e.g. the record contains personal data relating to a living individual) We have also recognised that the nearer that supplying organisations can get to providing data and metadata “right first time” in its structure and format the faster and more efficient both ours and their activities will be. With this in mind we encourage our suppliers to use our DROID tool (17) to examine the digital material they are considering for transfer. This enables them and us to determine as early as possible if there is material that is of high value that falls into the file format long tail and thus may require additional attention. We have developed a simple tool that enables suppliers to automatically generate 5 of the 6 fields we require directly from records in a shared folder file system and we are in the process of developing a tool that will enable suppliers to check for themselves that their submissions meet all of our metadata and format requirements. In our systems we also aim to carry out comprehensive checks very early in our processes so that any problems can be addressed as quickly and as comprehensively as possible before our or our supplier’s time has been unduly wasted. A quick reaction capability The risk to loss of data from short lived institutions is another area where vigorous application of the principle of parsimony is already delivering benefits in enabling the safe capture and custody of significant records. We may not have time to configure our full processing capability to accession new types or structures of records between the conclusion of an institutions work and it being disbanded. Therefore, we have identified a set of minimal actions that permit us to confidently accept records, and take them into our safe custody, in the knowledge that we can accession the collection in slower time. So what are these minimal actions? They are based on the observation that a parsimonious approach to digital preservation can be summed up in two lines - Know what you have got - Keep the bits safe And that the first of these can be divided into a further two points - Understand the file formats - Catalogue your data To achieve this we are deploying and developing a number of tools to process each batch of supplied data. First we carry out two independent virus checks. Then to produce a rapid inventory of a batch of transferred data and confirm the absence of unwanted or unexpected file formats we use our own DROID tool. To augment this and give is confidence in our ability to process the data in full we are developing a “metadata check” tool that will take a metadata template and establish that: - the metadata supplied conforms to the template, - all files supplied have an associated line of metadata, - all metadata lines supplied refer to one and only one file supplied - the hash value in the metadata line conforms to the hash value calculated for the file supplied Finally we have developed a capability that encapsulates the batch of data, and stores three copies on to a managed tape archive. The three copies are saved to two distinct media types - one copy on tape designed for enterprise access and two copies on media designed for backup – one of the backup media copies is then stored securely off site as a disaster recovery measure. Initially we expect these tools to be deployed and used manually; in the future we will develop a more automated environment to streamline this work. Ingest for Accessioning The main focus of this part of our system is the transformation of the metadata and record structures we receive to enable them to be listed in our overall catalogue and to render the material both safely preserved and discoverable. This involves a finer grain processing of the data than we need to secure safe custody in the quick reaction capability described above. This processing creates a structure that enables the secure and safe storage of the material together with properties needed to present the material to customers (in particular an identification of the file format so that the customer knows which software to use to view the data). The structure also allows for the data to be re-exported on demand in the form in which it was originally presented to the system. This fulfils another parsimonious principle that the system makes no irrevocable changes to the data and that as a “steward”, the data can be passed on to a subsequent system in good order. Storage It is well known in the storage engineering community that media failure is not random and that it largely arises from errors in manufacturing, in a very clear paper (5) Rosenthal argues that “Practical digital preservation systems must therefore: - Maintain more than one copy by replicating their data on multiple, ideally different, storage systems. - Audit or (scrub) the replicas to detect damage, and repair it by overwriting the known-bad copy with data from another.” We use a managed tape archive with exactly these properties: diverse media from different manufacturers and media monitoring to detect non catastrophic read errors which lets us correct or replace the faulty media detected. This tape archive has the added benefit of significantly reducing our carbon footprint and, in the knowledge that the master copies rarely require access, reflects an added benefit of parsimony in terms of cost compared to the unnecessarily functional disk based alternative. In a further application of parsimony, we do not preserve presentation copies since, as we know the master material is not obsolete, we could re-generate the presentation copies if they were to become lost. Our presentation systems are of course managed using good IT practices including robust data backup so the likelihood of needing to regenerate even these copies is very low. Something to Note In all of the above discussion readers familiar with digital preservation literature will perhaps be surprised not to see any mention or discussion of “Migration” vs. “Emulation” or indeed of “Significant Properties”. This is perhaps one of the greatest benefits we have derived from adopting our parsimonious approach – no such capability is needed! We do not expect that any data we have or will receive in the foreseeable future (5 to 10 years) will require either action during the life of the system we are building. A truly thrifty outcome! Conclusion I hope that I have demonstrated that the principle of Parsimonious Preservation originally developed in 2009 as an approach for small or medium sized institutions to permit them to begin work on digital preservation is also practical for large scale institutions. My aim in clarifying the core of digital preservation to the two steps “know what you have got” and “keep the bits safe” and in showing you how we at The National Archives are approaching our challenges, is to convince you that an appropriate response to digital preservation is indeed “Don't Panic!”; or perhaps “Keep Calm and Carry On”. Bibliography 01. Gollins, Tim. Parsimonious Preservation: Preventing Pointless Processes. The National Archives. [Online] December 2009. [Cited: 12 November 2012.] http://www.nationalarchives.gov.uk/documents/information-management/parsimonious-preservation.pdf. 02. The National Archives. Digital preservation FAQs, Technology. the National Archives. [Online] 18 October 2012. [Cited: 12 November 2012.] http://www.nationalarchives.gov.uk/information-management/projects-and-work/technology.htm. 03. Merriam-Webster Online Dictionary. parsimony. Merriam-Webster Online Dictionary. [Online] [Cited: 12 November 2012.] http://mw1.merriam-webster.com/dictionary/parsimony. 04. The National Archives. The National Archives Preservation Policy. The National Archives. [Online] 12 June 2009. [Cited: 12 November 2012.] http://www.nationalarchives.gov.uk/documents/tna-corporate-preservation-policy-2009-website-version.pdf. 05. Rosenthal, David. Keeping bits safe: how hard can it be? Commun. ACM. 2010, Vol. 53, 11, pp. 47--55. http://doi.acm.org/10.1145/1839676.1839692. 06. —. Presentations from the PASIG Summer Meetings in Malta. Stanford University Libraries and Academic Information Resources. [Online] 24 - 26 June 2009. [Cited: 13 November 2012.] http://lib.stanford.edu/files/rosenthal_pasig_lockss.pdf. 07. Mitchell, Joni. Big Yellow Taxi (lyrics). Roots of Bob Dylan. [Online] 1970. [Cited: 12 November 2012.] http://www.bobdylanroots.com/bigyellow.html. 08. Answers.com. First catch your hare. Answers.com. [Online] 2012. [Cited: 12 November 2012.] http://www.answers.com/topic/first-catch-your-hare. 09. The National Archives. Records collection policy. Plans, policies, performance and projects > Our policies > Draft policies. [Online] 16 July 2012. [Cited: 12 November 2012.] http://www.nationalarchives.gov.uk/documents/draft-records-collection-policy-2012.pdf. 10. Sun PASIG. Sun PASIG (Preservation Special Interest Group). St Juliens, Malta: Sun Microsystems, 24 - 26 June 2009. 11. Rothenberg, Jeff. Ensuring the Longevity of Digital Documents. Scientific American. January 1995, Vol. 272, 1. 12. Rosenthal, David. Format Obsolescence In The Wild? DSHR's Blog. [Online] 8 November 2012. [Cited: 13 November 2012.] http://blog.dshr.org/2012/11/format-obsolescence-in-wild.html. 13. —. Formats through time. DSHR's Blog. [Online] 9 October 2012. [Cited: 13 November 2012.] http://blog.dshr.org/2012/10/formats-through-time.html. 14. —. Cleaning up the "Formats through time" mess. DSHR's Blog. [Online] 13 October 2012. [Cited: 13 November 2012.] http://blog.dshr.org/2012/10/cleaning-up-formats-through-time-mess.html. 15. Jackson, Andrew. Formats over Time: Exploring UK Web History. Cornell University Library. [Online] 5 October 2012. [Cited: 13 November 2012.] presented at iPres 2012 in Toronto. http://arxiv.org/pdf/1210.1714v1.pdf. 16. The National Archives. 20 Year Rule. The National Archives, About Us, Our Projects. [Online] 11 July 2012. [Cited: 16 November 2012.] http://www.nationalarchives.gov.uk/about/20-year-rule.htm. 17. —. DROID download page. DROID (Digital Record and Object Identification), The National Archives, Digital Preservation. [Online] March 2013. [Cited: 7 March 2013.] http://www.nationalarchives.gov.uk/information-management/projects-and-work/droid.htm.	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/4537-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 11, "total-input-tokens": 29953, "total-output-tokens": 7203, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 2824, 1 ], [ 2824, 5860, 2 ], [ 5860, 9073, 3 ], [ 9073, 10491, 4 ], [ 10491, 12953, 5 ], [ 12953, 16256, 6 ], [ 16256, 19043, 7 ], [ 19043, 22088, 8 ], [ 22088, 24997, 9 ], [ 24997, 27876, 10 ], [ 27876, 29493, 11 ] ] }
62d1c6a75094a538b19b841062c855a7cfd46fe3	London Borough of Enfield Human Resources August 2001 Contents 1 Best Value 3 2 Summary 4 Recommendations 6 3 Report 7 3.1 Context 7 The Locality 7 The Council 8 Human Resources in the London Borough of Enfield 8 The Council’s Best Value Review 9 3.2 Findings: How good are the services? 11 Are the authority’s aims clear and challenging? 11 Does the service meet those aims? 12 How does the authority compare? 17 3.3 Findings: Is the service going to improve? 21 Does the best value process drive improvement? 21 How good is the improvement plan? 25 Will the authority deliver the improvements? 27 Appendix - What the inspectors did 29 Documents examined 29 Reality checks undertaken 29 Interviews conducted 29 1 Best Value The Government has placed a duty of best value on local authorities to deliver services to clear standards – of cost and quality – by the most economic, efficient and effective means available. Best value is a challenging new performance framework that requires authorities to publish annual best value performance plans and review all their services every five years. Authorities must show that they have applied the 4Cs of best value to every review: - challenging why and how a service is being provided - comparing their performance with others’ (including organisations in the private and voluntary sectors) - embracing fair competition as a means of securing efficient and effective services - consulting with local taxpayers, customers and the wider business community. Authorities must demonstrate to local people that they are achieving continuous improvement in all of their services. The Government has decided that each authority should be scrutinised by an independent inspectorate, so that the public will know whether best value is being achieved. The purpose of the inspection and of this report is to: - enable the public to see whether best value is being delivered - enable the inspected body to see how well it is doing - enable the Government to see how well its policies are working on the ground - identify failing services where remedial action may be necessary - identify and disseminate best practice. The Local Government Act 1999 requires all best value authorities to make arrangements to secure continuous improvement in the way their functions are exercised, having regard to a combination of economy, efficiency and effectiveness. From 1st April 2000, best value authorities must prepare best value performance plans for each financial year and conduct best value reviews for all their functions over a 5 year cycle. The Audit Commission is responsible for inspecting these reviews to determine whether authorities have complied with the requirements of the best value legislation and associated guidance. This report has been prepared by the Audit Commission (“the Commission”) following an inspection by the Commission under Section 10 of the Local Government Act 1999 (“the 1999 Act”). This report is issued by the Commission in accordance with its duty under Section 13 of the 1999 Act. 2 Summary 1 The London Borough of Enfield is a large outer London Borough to the north of the City of London. Enfield’s population is 259,000 (February 2000). Over 32 per cent of the population is from an ethnic minority, 1,900 people are in temporary accommodation, and the overall unemployment level is 5.6 per cent - with a disproportionate number coming from young, lone parents and ethnic minorities. 8,500 refugees live in the borough. Council housing stock accounts for 12 per cent of borough housing. 2 Labour who holds 43 of the 66 seats leads the council, with the opposition holding the remaining 23. 3 The human resources best value review covered strategy, organisation development and projects, and operational human resource services. 4 We judged the council’s Human Resources service as providing a “good” two star service(^1) that will “probably” improve. ______________________________________________________________________ 1 The scoring chart displays performance in two dimensions. The horizontal axis shows how good the service or function is now, on a scale ranging from no stars for a service that is poor (at the left-hand end) to three stars for an excellent service (right-hand end). The vertical axis shows the improvement prospects of the service, also on a four-point scale. 5 Our judgements are based on the evidence obtained during the inspection and are outlined below. 6 The positive aspects of the service included: - high customer satisfaction with the Human Resources service; - clarity around provision of the service; and - a professional and motivated staff team with strong leadership. 7 However a number of aspects require further attention: - effective data collection and monitoring is hindered by an inadequate information technology system; - Equalities is an area that Enfield is beginning to address but there is still some way to go; and - job evaluation is a process that is seen as slow by users. 8 We believe the service will probably improve. In particular we felt the following aspects to be positive: - the creation of local performance indicators which are key to users and members in determining how the service is performing; - all actions to date within the improvement plan have been completed within timescale; - there was significant Member involvement in the review; and - effective leadership of the service is apparent. 9 However the council needs to be mindful that: - The lack of an integrated IT system is a challenge which the service needs to overcome. - The service needs to actively “move forward” the eight future service delivery options presented to members. - The Race Relations (Amendment) Act 2001 imposes a duty on councils to promote racial equality. Currently the council does not have a complete picture of its workforce in terms of ethnicity. Recommendations 10 To rise to the challenge of continuous improvement authorities need inspection reports that offer practical pointers for improvement. In this context, the inspection team feel that the authority should now take action to resolve a number of general, political, managerial and partnership issues. 11 We recommend that the council should: - Develop an integrated IT system which allows access and sharing of data with other key services and the delivery of an improved and responsive seamless service to users. - Continue to develop work around equalities including working in partnership with local equalities groups. - Build on current successes such as the “How Do I?” guides and extend to other areas such as appraisal. This will help equip users with the skills they need to carry out their roles effectively. - Complete the final stages of the HR Strategy and publish by October 2001. This will visibly outline to users the future direction of the service. - Achieve or maintain top quartile position in all national performance indicators by 2005. - Agree targets for local performance indicators up to 2005 so that users can clearly see how the services delivered to them are performing. - Work on some “quick wins” by implementing a project plan for increasing user satisfaction with the job evaluation process and providing a regular update on progress to single status. We would like to thank the staff and councillors of LB Enfield who made us feel welcome and who met our requests efficiently and courteously. Mary Golden & Jackie Barry-Purssell Inspectors Email: [email protected] [email protected] For more information please contact BVIS Audit Commission London Region 17th Floor Millbank Tower Millbank London SW1P 4QP www.bestvalueinspections.gov.uk 020 7872 4900 3 Report 3.1 Context The Locality 12 The London Borough of Enfield is a large outer London borough to the north of the City of London. Enfield’s population is 259,000 (February 2000). Exhibit 1: LB Enfield 13 Over 32 per cent of the population is from an ethnic minority, 1,900 people are in temporary accommodation, and the overall unemployment level is 5.6 per cent - with a disproportionate number coming from young, lone parents and ethnic minorities. 8500 refugees live in the borough. Council housing stock accounts for 12 per cent of borough housing. The Council 14 The council adopted a vision statement – “Future Enfield” in November 2000. It contains eight long-term objectives which guide council decisions and the action it takes to improve services. These are: - Listening to and representing local people - Improving the environment - Excellent Services - Accessible services and information - Championing Equality - Learning for All - Safe and Supportive - Economic Success. 15 The council comprises 66 councillors and is controlled by the Labour party. Currently a Leader and Cabinet, with six Scrutiny Panels, govern the business of the council. 16 The council’s overall budget for the year 2001/02 is £293.6 million. In the previous financial year there had been a considerable overspending of £5.2 million on social services and housing homeless functions; considerable financial pressures remain. The current budget involved savings of £3.6 million though remaining balances of £3 million give the council little contingency over unforeseen events. 17 In addition to responding to the demands of new legislation, particularly the requirements of best value, the council has achieved CRE Level 2. Human Resources in the London Borough of Enfield 18 The Head of Human Resources reports directly to the Chief Executive, although she is not a member of the Council Management Team (CMT). In response to user feedback the Human Resources function was re-organised to a centralised service part-way through the BVR. 19 The Human Resource section covers the following areas: Strategic HR, Operational HR, Corporate Safety, Occupational Health, training and Development (including the Employment Training Service). The service is organised as follows: Exhibit 2: Structure LB Enfield Human Resources Structure ![Diagram of Human Resources Structure] 20 There is a budget of £1,980,490 for the financial year of 2001/02. The budget for the service has been reduced by over £232,000 in the last three years. The service is costed at £164 per employee. 21 The Human Resources service have identified its users as: Enfield residents and service users, The Council, Councillors, Council Management Team, Service Managers, Trade Unions, all Council staff, external partners such as Middlesex University, Government Departments and other public agencies. 22 Most services are delivered in-house. The recruitment advertising and Occupational Health Service are out-sourced to other organisations. 23 Partnership work has been undertaken with a number of organisations including Middlesex University. 24 The service has developed a high profile internally and takes a significant role in communication council-wide, recently carrying out an extensive communication audit. The Head of Service is active in the HR arena nationally. The Council’s Best Value Review 25 The council carried out a best value review (BVR) of the service in 1999 with the final report completed and reported to Members in February 2001. The review was in two parts: Performance Assessment Report completed in August 2000 Fundamental Service Review completed in December 2000. 26 The initial review resulted primarily in a re-organisation from a de-centralised to a centralised service. This was accomplished in June 2000. An interim action plan which followed highlighted that: - further data and analysis needed to be collated and analysed; - further external challenge on development of options appraisal needed to be undertaken; and - further consultation with users on options appraisal. 27 The final review resulted in an action plan that made recommendations for the future service delivery of Human Resources; under the headings of local performance indicators developed by the service, in addition to national performance indicators. These were under the broad headings of: - Joining Enfield - Being an employee of the organisation - Leaving London Borough of Enfield. 28 Options appraisals were explored and recommendations made. Members accepted these recommendations and these have been included in an improvement plan. The BVR Team consisted of: - Project Leader, Head of Human Resources - Project facilitator, internal consultant - Self-assessment co-ordinator, internal HR consultants - External GMT member, Assistant Director of Social services - Consultant co-ordinator, Assistant Head of Human Resources. The BVR Team consulted widely with users and staff in the formulation of the Action Plan. Members, officers and an AD from another council provided the element of challenge. 3.2 Findings: How good are the services? Are the authority’s aims clear and challenging? 29 Inspectors look to see how a council has agreed the key aims for the service being inspected, how clear these aims are to the people that receive the service and whether these reflect the corporate aims of the organisation as a whole. 30 Challenge is the key to achieving significant improvements in performance and targets set by the council and Government. Without challenge best value will be ineffective. It requires the council to consider and demonstrate how a service contributes to its wider corporate aims and community plans. 31 The council has eight key priorities and aims through “Future Enfield” (see paragraph 14). We found that these priorities formed the cornerstone of the best value performance Plan (BVPP) for 2001/02. The Council through a variety of consultation methods including questionnaires, resident panels, website comments, and random surveys developed these aims. 32 The key priorities and aims from “Future Enfield” that are most relevant to this service are identified in the Human Resources Core Unit Plan (2000/01) as: - Excellent customer services that provide best value – drawn from extensive user consultation. - Easy access to services and information – through the introduction of improved communication across the council and access by technology as well as more traditional methods. - Championing equality of opportunity – through developing closer working with local community groups and at a national level. Implementing more effective monitoring. - Learning for all – in particular Investors in People (IIP) and Lifelong Learning. - Safe and supportive – through effective Corporate Health and Safety and Occupational Health. - Economic success – particularly in the targeted use of the Employment Training Service for 17-25 year olds in Enfield. 33 The service has produced a Core Unit Plan for 2001/02, which states that “We knew that if Enfield wanted to fulfil its aims to be a forward looking, innovative and efficient authority, services would need to be provided by well-trained, knowledgeable, motivated and committed staff. Staff also need to be supported by a high quality, well implemented Human Resources policy framework that helps to achieve the Council’s vision and priorities. The realignment of the function which included bringing all staff together in one location and focussing on customer service goes some way towards achieving these objectives.” 34 The Core Unit Plan is clearly linked to the “Future Enfield” priorities: examples are provided in the plan as to how these links can be demonstrated. The introduction of the Equalities Audits for example, fits clearly with the Equality of Opportunity objective. 35 In particular, the excellent focus on the customer services priority underlines the importance of best value, quality initiatives and management of resources. 36 The council’s aims are clear and challenging and it is apparent that these are meaningful and valued by the Human Resource staff team. In conversations with us there was a clarity from staff about the aims of the service “we are clear now about where we are going”, although there was an acknowledgement that “we still have some way to go” (HR Staff). The agreement of the draft Human Resource Strategy may help to address this. 37 In conclusion, our view is that the corporate “Future Enfield” priorities have been successfully translated into service plans that emphasise quality, investment in staff and customer satisfaction. Does the service meet those aims? 38 Having considered the aims the council has set for the service, inspectors make an assessment of how well the council is meeting these aims. This includes an assessment of performance against specific standards and targets and the council’s approach to measuring whether it is actually delivering what it set out to do. 39 This question is considered under the headings of the aims of the service under the “Future Enfield” priorities. Excellent customer service that provide best value 40 We interviewed a wide variety of users to check whether the service meets the aims it sets out to deliver. It is very clear from all users that we spoke to that there has been a significant improvement in the service they receive. Comments such as “marked improvements” (users group) “you can see a change in the focus – a definite link between the objectives in written documentation and see it actually happening”(Chief Officer) were fairly commonplace. 41 In the past customer satisfaction has been variable. The Performance Assessment Report gives as evidence the results of a survey from 1999: - 15 per cent of managers saw the recruitment service as “good” compared to 59 per cent that saw it as “average”, 17 per cent as “fair” and 9 per cent as “poor”. - Only 11 per cent of managers and staff felt Training and Development had enhanced staff skills. 42 However, this perception appears to have changed. In user focus groups and with other reality checks, there was a clear consensus that the service had changed significantly for the better “they are much more customer focused” (users). In our view you have consulted widely with your users about the aims of the service and are responsive to their feedback. 43 The service is seen to be responsive to feedback and users are consulted on a regular basis, through an annual Customer survey. In response to user views that recruitment was taking too long, a recruitment project plan was recently introduced which has in some instances reduced recruitment from 16 to 8 weeks. 44 Users consider the service to have an effective and committed staff team. Many favourable comments were made such as “good staff, committed, professional, high level of expertise, sound advice you can rely on” (Chief Officer) 45 Formal and informal mechanisms for consulting with Trade Unions are in place and generally appear to work well. 46 Local performance indicators have been developed in consultation with users and these are covered more fully under question three. Easy access to services and information 47 With the introduction of such initiatives as HR briefings, HR Chronicle and, most recently a council newsletter (this is in response to the communication audit analysis) the service has developed a higher profile in Enfield over the last two years. Closer working with the local job centre has taken place and there is a close and positive partnership with Middlesex University. 48 This is also seen at a national level, the Head of Service is a member of the Society of Chief Personnel Officers (SOCPO), on the Policy Committee for SOCPO and is currently the Chair of the National Equalities Group. This group are currently being formally consulted with by the Commission for Racial Equality. 49 The council’s web-site is used for advertising job vacancies and the recent introduction of “How do I?” handbooks for managers, has been viewed as particularly helpful by users. Championing equality of opportunity 50 The service has recognised the need to move forward more pro-actively in this area, using as a base the Corporate Equalities Action Plan. Work is currently being undertaken on an Equalities Audit and this will be an ongoing process. A positive working relationship is being developed with Enfield Racial Equality Council. 51 This work has been recognised by the awarding of the “Best Local Authority” award in the British Diversity Awards 2000. The council was also given a Bronze Award for “Top Trend-setter”. 52 Equalities issues are also being addressed with the Enfield 21 Management Development Programme which has built in a positive action element to encourage women, black and minority ethnic and employees with disabilities to be given priority of access. An anti-harassment and friends support scheme has been introduced as well as a new redeployment scheme. Work is currently underway on improving work-life balance issues. Learning for all 53 The Training and Development part of the service is currently in the throes of being re-structured and the proposal was out for consultation with users whilst we were on site. The final paper is due to go to CMT in September 2001. However, it was clear to us that users considered the service to be much improved. 54 This part of the service has a key role in generating income for the service in the provision of training. Currently the service is heavily involved in the implementation of the Disability Discrimination Act. In November they will be holding a conference on design and accessibility. 55 The Development and Training Co-ordinator chairs the corporate IIP group and has been instrumental in achieving corporate status for the Council. 56 A performance management system for staff has been in place since 1997 and the service estimates that at least 75 per cent of staff are participating in this. In the HR service all staff are participating. This is currently being reviewed by the Training and Development section. Safe and supportive 57 Although the Corporate Safety Team was not included in this BVR, Occupational Health, which is out-sourced, is included here. We spoke to the Occupational Health contractor, a division of Swiss Life – Interact Health Management. There is a positive working relationship in partnership evident and many preventive initiatives are occurring. In recent months there has been a two-day Health Fair and outreach work for health assessments. There is a continuing publication of leaflets around areas of interest, the most recent being about Tuberculosis and manual working. Consultation with users takes place on a regular basis and there is a permanent contract officer in the human resources service who takes responsibility for monitoring the contract. 58 A Stress Management Policy is currently out with users for consultation. Economic success 59 The Employment Training Scheme is the community-facing aspect of training and development. The service deals with approximately 300 16-18 year olds. They are linked to New Deal programmes for young people living in Enfield. 60 However, key themes arose during our inspection which do need to be addressed by the council. 61 There is at all levels a debate about the role of HR and the role of the manager. Whilst some users had a clear understanding of this, we would consider there is still some work to do in this area. It should be stressed this is not just an Enfield issue but one that is on-going in HR circles nationally. 62 Although there is a draft in circulation that is currently being consulted on, we questioned the absence of an agreed HR strategy. The Head of Service has a view that all managers and staff need to know what an HR service can provide and be involved in drawing up the strategy, and that this takes time. Whilst we understand this perspective our view would be that this process now needs to be speeded up and an agreed strategic framework put in place so that users can more clearly see the future direction of the service. 63 The “Future Enfield” priority of easy access to services and information highlights modern technology as a means of achieving this. It is clear that the IT system currently in place, Midland Software, is not suitable for effective service provision. The BVR highlights this as a weakness in the service. “The lack of an adequate payroll/HR information system is causing immense difficulties in data collection and has not allowed for adequate efficiencies and improvements to the service to be made. This is a significant barrier to an improved modern HR service.” (BVR, FSR, para 3.4.4) 64 It was clear to us during our time on-site that users and staff see the absence of an integrated IT system as a barrier to providing a more effective service. 65 Users would like to see more user-friendly and helpful data provided to them or even to be able to access information about their own staff. One example is around sickness absence information. 66 Whilst regular information is provided to users, which is valued by them, there is clearly a desire from them for this to be more flexible and individual to their needs. The provision of such data would assist in meeting targets outlined in the Action Plan to reduce sickness absence from 10.83 per cent (number of working days lost to sickness absence) estimated 2000/1 to 9.1 per cent by 2004/5 and achieve savings of £45,000 by the successful introduction and implementation of the sickness project. 67 These targets have been set in line with DETR targets for local councils of 9.1 days per person per year and a Cabinet Office challenge of reducing levels of sickness absence of 20 per cent by 2001 and 30 per cent by 2003. 68 In terms of equalities, Enfield still has some way to go. Currently for example, the council does not have a complete picture of what it looks like in terms of ethnicity. Approximately 20 per cent of council staff have not provided ethnic origin information, although work is in hand in the human resources service to improve this. In the absence of this and a comprehensive IT system (see paragraph 60) it is difficult to progress work on more effective monitoring. Bearing in mind that the Race Relations (Amendment) Act 2000 imposes a duty on Local Authorities to promote racial equality. This is an issue that needs consistent commitment to moving forward. 69 The service has highlighted the need for “a performance management framework that demonstrates a clear link between the corporate objectives and performance appraisal”(^2). The Auditor’s Report to Enfield Borough Council on its BVPP also highlights that in a large and complex organisation such as the council, performance management needs to operate at both a service and a corporate level. The Training and Development section have included in their paper titled “Integrating Performance Management – the role of Human Resources” (June 2001) a project plan proposal to integrate the performance management framework by September 2002. 70 Whilst the Training and Development section are seen by users to be much improved there is still a view that there needs to be more clarity about the commissioning of training and the role of the manager and that of Training. We noted that the service has produced a draft re-structuring proposal that is currently being consulted upon. 71 There was general consensus between staff and users that monitoring of training and development needed to be more detailed. It is evident that there has been some progress in this area in the last two years and an annual profile of training undertaken has now been produced for managers. (^2) Integrating Performance Management – the role of Human Resources, discussion paper, June 2001 72 Users have been frustrated by the apparent slowness of the council’s move to single status for all staff. We recognise that this is a complex process and one that councils all over the country are currently working on. However, it seems that users would welcome updates on progress. 73 Although in the past the council has been successful in developing community groups, there was a view in the employment Training Service that their profile in this area could be raised. 74 An operational issue that arose time and again from users was concerned with Job Evaluation. The perception is that the system is outdated and that the process takes a long time. Since we were on site the service has worked to introduce a new system that will address these perceptions. 75 In summary, we found that the Human Resource Service was seen to have improved significantly over the last two years in providing a much more responsive service to users. However, there was agreement that there was still some way to go in fully meeting user needs. How does the authority compare? 76 In order to judge the quality of a council it is important to compare the performance of that council against others. The aim is not exact comparison, but an exploration of how similar councils perform in order to identify significant differences, the reasons for them, and the extent to which improvements are required. 77 Informed comparison is the basis of performance management and is also critical to an effective review. Councils should aim to compare their performance against other suppliers across a range of sectors. 78 The Human Resource function generally has little in the way of national performance indicators or benchmarking data from which to make comparisons. The function is often organised differently in authorities with different definitions of what constitutes the function and its various activities. 79 The national Best Value Performance Indicators are as follows: ### Exhibit 3: National Best Value Performance Indicators - HR \| Best Value performance indicator \| Enfield 2000/01 estimate \| 2001/02 \| 2002/03 \| 2003/04 \| 2004/05 \| Comments \| \|----------------------------------\|--------------------------\|---------\|---------\|---------\|---------\|----------\| \| Minority ethnic community staff as % of workforce \| 19% \| 20% \| 22% \| 23% \| 25% \| An estimate only, no black & minority ethnic employees at a senior level \| \| % of senior management posts filled by women \| 32% \| 34% \| 36% \| 38% \| 40% \| \| \| Proportion of working days/shifts lost to sickness absence \| 1.83days \| 10.4 \| 9.97 \| 9.53 \| 9.1 \| Targets in line with DETR and cabinet Office recommendation s \| \| Voluntary leavers as % of staff in post \| 1.06% \| 1.06% \| TBA \| TBA \| TA \| Will set targets when comparative data available \| \| Early retirements excluding ill health as % of total workforce \| 0.48% \| 0.48% \| 0.47% \| 0.46% \| 0.45% \| Tighter controls on early retirement \| \| Ill health retirements as % of total workforce \| 0.31% \| 0.31% \| 0.31% \| 0.31% \| 0.31% \| \| \| Members of staff declaring they meet DDA definition \| 1.2% \| 1.5% \| 2% \| 2.5% \| 3.5% \| \| We note that, in the absence of many national performance indicators the service has developed their own. These are currently being shared with other local authorities and this can be seen as an example of best practice. The service drew up a Performance Indicator Framework to start to make comparisons in depth and breadth. The indicators are designed to “follow the life cycle of Council employees and examine the impact of HR activity. These are as follows Joining Enfield - Includes advertising, recruitment and induction activities. Being an employee of Enfield - Redeployment: number of staff accessing redeployment process, percentage who obtain alternative employment, savings made on redundancy, average cost, views of staff and managers who use the process. - Performance management: identification of training and development needs, cost and effectiveness of development and training. - Contribution HR makes to performance management and council objectives: number of grievances, disciplinaries, days lost through absence, industrial action, accident statistics, management and employee satisfaction, levels. - Communication: how HR contributes to upward, downward, horizontal and cross cutting communication. Leaving Enfield - Includes percentage staff turnover rates, details of employment tribunals, cost of ill-health retirements, redundancy, and reasons for dismissals. 81 The data on the performance indicators is not complete in all cases and progress on this has been made more difficult by the absence of an integrated IT system. As this is the first year the data has been collected there is no basis for comparison. However, we considered this to be a most innovative initiative. We understand other London councils are interested in this work and the Head of Service has made presentations on the local indicators with a view to sharing and disseminating best practice. 82 There are no upper quartile figures available so the service has used a year on year improvement as a baseline for improvement in the first instance. The service also used some benchmarking data from a HR benchmarker that included Central Government, Local Government and private sector contributors. 3 Human Resources Performance Assessment Report, August 2000 In conclusion, the service has, in the absence of many performance indicators devised its own. This has been recognised at a national level and, currently other councils are interested in using them. The service has compared costs with other providers and identifies itself as a low cost service. Summary It is clear that users have seen a significant improvement in the Human Resource Service over the last two years. It is viewed as being more customer focused and responsive to feedback. However, there is a view amongst users and staff that there are still areas that need to be further developed in order to meet the key aims and priorities of “Future Enfield”. 3.3 Findings: Is the service going to improve? Does the best value process drive improvement? To help us assess whether Enfield will improve the Human Resource service we asked three questions: - Does the best value review drive improvements? - How good is the improvement plan? - Will the authority deliver the improvements? Best value reviews, (BVRs) are the mechanism for ensuring authorities deliver continuous improvement in the services they provide. Best value reviews have been mandatory since April 2000. Enfield’s review of the Human Resources service commenced in 1999 with the final report completed and reported to Members in February 2001. A best value reference group comprising staff, managers and a policy officer was established to lead the process. It should be noted that the review commenced before DETR and Audit Commission guidance to local authorities was published. We recognise that the early start of this review is a positive feature of Enfield’s approach to best value. The council has produced corporate guidance for staff who are carrying out best value reviews. The guidance meets the requirements of the legislation and incorporates the EFQM self-assessment model to identify areas for improvement within the service under review. These areas have subsequently been highlighted in the improvement plan. The corporate guidance has been revised following the first year of best value reviews which has led to current best value reviews being externally challenged by someone from outside the council. The Head of Human Resources led the review. Members of the team were drawn from other officers within the section. There were two additional members of the team; an assistant director from another council acting as an external challenger and an assistant director from the social services group acting as an internal challenger. During our inspection we asked key stakeholders what improvements were evident at ground level since the best value review had started. The following examples were cited as improvements which have been implemented and have benefited both staff and service users: - The restructuring of the service in 2000 which has resulted in increased strategic capacity and profile of the service. Users welcome this. “It is clear that the service saw the best value review as an opportunity to review both the structure and the way services were delivered. It seems to me that they have done well on both counts” User - The development of a core Human Resources plan which sets out to users what the service does and the standards they can expect. - Improved advice to users e.g. “How Do I” guides for managers outlining key issues relating to recruitment and selection. These are designed to demystify many of the HR procedures and provide managers with clear practical information and advice. From our interviews with Managers it was clear that this aim had been achieved. “The guides are easy to use and well focused. In my job there is not time to sift through an 80 page manual, so these guides are welcomed” A Manager - An increase in the impact of the service across the council. It is now actively involved in driving forward both service and corporate priorities e.g. the head of service forms part of the corporate communications group whose aim is to improve council-wide communication. - Increased community work with local colleges e.g. a joint appointment with Middlesex University with a focus on “growing your own” social workers. This includes the provision of placements and the recruitment and support of practice teachers. - The introduction of equalities audits across the council with the aim of ensuring that policies are consistently implemented. The first of these audits focused on recruitment and selection, appraisal and development, disciplinary, capability and grievances and were well received by users. - The introduction of an employee development handbook that sets out the training and development is available to users and the various options re commissioning trainers. - The service agreement for the operational human resources providing a clear statement to users of the service standards they will receive. It also outlines customer responsibilities and review timescales (every six months). - The development of local PIs based on “a journey through Enfield” which are both relevant to the corporate health of the council and users of the service. The service is visibly active at a national level. The Head of Service is chair of the national equalities group for SOCPO(^4). Members and senior officers within the council welcome this approach. 91 In the section below we provide a review of how Enfield applied the “4Cs”(^5) as tools to inform and drive improvement through this review. We regard the 4Cs as being inter-related. Challenge 92 Our assessment of the review is that it sought to fundamentally challenge the way the service to users was delivered, including the service structure. Midway through the review, it was decided by officers and members to restructure the service and to form one centralised service based at the Civic Centre. During our discussions with users, members and officers, it was clear that this was seen as a positive step. “There is more of a team spirit since we were centralised. We have a sense of direction and feel in a position to deliver our services effectively” An officer 93 Work on the public impact of the service and on the links with other services were beneficial in challenging the existing practice and service effectiveness. 94 Challenge was provided through an assistant director from the social services group, the Best Value Steering Group and Scrutiny Members. An Assistant Director from another council also played a key role in challenging the service. This is a difficult role but one that is essential to undertaking a successful review. 95 We conclude that the service was challenged both internally and externally to the council at all stages of the review. Feedback from these challenge exercises led to improvements in the recruitment process, improved communication with users and an options appraisal of future service delivery. Competition 96 There is a long tradition of human resources in local government procuring services from the private sector, especially in relation to training and development and recruitment advertising. There is a well-established market in these areas and also a rapidly growing market in respect of other aspects of human resources. There are now also providers able to undertake the ______________________________________________________________________ (^4) Society of Chief Personnel Officers (^5) Challenge, compare, compete and consult as set out in DETR circular 10/99 whole range of human resources activities on behalf of the council. It was evident during our inspection that a mixed economy existed within the Human Resources service, with recruitment activities being undertaken in-house whilst advertising was outsourced. 97 We found evidence that the service had contacted two private sector providers to evaluate the competitiveness of the in-house provision. These approaches in May 2001 were in relation to the response handling service for job advertisements based on advertising 400/550 jobs per annum. However it was evident that the results of this research have not yet led to changes in the way the service is provided. We see this as an issue which the council needs to address. Following an options appraisal undertaken during the review, eight future service provision options were presented to members in the final report. These have also been included in the improvement plan. From our interviews with Members and the trade unions it is evident that they are committed to further exploring these options. We view this as an area that needs to be explored in a timely fashion to reap the benefits from the work undertaken during the review. Consultation 98 The council’s consultation strategy 2001 – 2003 entitled “Engaging Enfield” was launched in June 2001. The primary objectives of the strategy are: - To develop a coherent approach to consultation; - To increase awareness of good practice and major consultation programmes; and - To improve the extent to which local people and stakeholders see Enfield as a listening and responsive council. 99 It is recognised within the strategy that all best value reviews conducted in year one (which includes human resources) included significant consultation. This view was supported by the users of the service we interviewed whilst on site. 100 It was evident that consultation was being used to establish service priorities and modify service levels. 101 The service has undertaken extensive consultation, both prior to and during the review that focused on the service delivered. This included ongoing dialogue with partners such as Middlesex University and the Enfield training centre based in Edmonton (the community facing aspect of training and development). This active and open approach to consultation was further evidenced during our meetings with the three trade unions active within the council. 102 The consultation exercises resulted in suggestions for improvements to the service, including a review of the recruitment and selection process and the introduction of a revised redeployment policy. Whilst we were on site we found evidence that the turnaround time for filling some posts had been reduced from 16 to 8 weeks, an area of concern for users at the start of the review. 103 A revised redeployment scheme has also been introduced with the emphasis on matching officers skills with vacancies within the council, where they otherwise would have been made redundant. 104 Consultation exercises also revealed that more use should be made of the local job centre. As part of our reality checks we contacted the local job centre and were informed that the council is currently an active participant in recruitment campaigns in particular in relation to posts which are hard to fill. Comparison 105 We have covered in some detail the work that the service has undertaken in comparing itself to both the private and public sector. These comparisons drove improvements in two key areas – the development of local PIs relevant to the council and key to users needs and a more customer focused approach in the services that are delivered to users. 106 In conclusion we feel that extensive consultation was carried out during the review which resulted in actions being implemented. Comparison with both the private and public sector had been undertaken and challenge provided during the best value review. However, the competitiveness of the service was not fully explored. How good is the improvement plan? 107 A Best Value Review should produce an improvement plan that sets out what needs to be improved and why and how improvements will be delivered. It should contain challenging targets which are not only challenging but also designed to demonstrate and ensure the continuous improvement necessary to put the service amongst the top 25 per cent of councils within five years. 108 The review resulted in a short-term improvement plan approved by Members in January 2001. This plan included 12 key areas of activity: - Corporate Health Indicators - Enfield Corporate Indicators - HR Customer Care - Joining Enfield – Advertising Recruitment and Selection Induction Redeployment Identification of development and training needs The cost and effectiveness of development and training The contribution HR makes to performance management and council objectives Communication Leaving Enfield. However, there are no five-year targets and the latest target date in the plan is January 2002. Our interviews revealed the belief that planning beyond a three-year period was hard if the plan was to remain useful. We recognise the need to have a plan that is useful but consider the introduction of medium and longer term targets to be in line with best practice and necessary to provide direction for services. The improvement plan is underpinned by quantitative and qualitative measures including targets e.g. percentage increase in customer satisfaction - target of 80 per cent as a minimum of all customers satisfied with the service they receive. The improvement plan contains lead officer accountabilities and time-scales. In general, actions are to be contained within current budgets. The plan contained a number of “quick wins” particularly in relation to local job centre advertising and a revised redeployment approach. The improvement plan is widely disseminated throughout the council. This was evidenced by our discussions with the Chief Executive, users, human resources service staff and members who were aware of the plan and their role in delivering the actions. The improvement plan is widely viewed as a “living” document. It is discussed at regular team meetings and in May 2001, a half-day away with the corporate management team was used to discuss the plan. During our inspection we tried to ascertain the links between the service plan for 2001/02 and the improvement plan which resulted from the best value review. It was evident that the needed improvements highlighted during the best value review were the basis for the human resources service plan. 115 We conclude that the member responsibility for the plan is clear and that actions within the plan are linked to a timetable. The improvement plan includes local indicators to measure performance and which are meaningful to users of the service. The plan also includes details on resources and encourages cross-departmental working. Will the authority deliver the improvements? 116 Inspectors look for evidence that a council will deliver what it has set out in the improvement plan. We look for a track record of managing change within the council. We also check that the plan has the necessary support from councillors, management, staff, the public and other stakeholders. Likelihood of further improvement will depend on the council implementing the recommendations contained in this report. 117 During our inspection we found evidence that the service had delivered within time-scale all of the actions due to be complete prior to our inspection. These included: - a profile of council staff which includes gender, ethnicity and disability details; - customer care development for all HR staff; - local job recruitment policy in place; - advertising contract reviewed; - annual customer surveys and focus groups to assess users needs; and - equalities development for all HR staff undertaken. 118 Member level monitoring responsibility for the plan is clear with progress reported to Members on a six-monthly basis. The head of service meets with members on a three-weekly basis and the improvement plan is a standing item on the agenda. The Members we spoke to were keen to deliver an effective service and saw their role in monitoring progress of the improvement plan as key to achieving this aim. 119 It was evident during our inspection that staff were motivated and committed to improving the service. Regular team meetings were welcomed by staff and were seen as providing a useful forum in which to discuss service improvements. 120 The Human Resources service has a track record of effectively managing both resource and structure changes over the past two years. Its profile within the organisation has increased since the best value review. This was supported by our interviews with users and members who clearly saw the service adding value to the organisation overall. Workshops entitled “Developing Managers HR Skills” commencing in September 2001, were being developed whilst we were on site. These workshops are designed to give managers the basic knowledge and understanding specifically needed to effectively implement the Council’s HR policies and procedures. They will build on the “How do I” approach, mentioned previously in this report. Whilst we were on site we were provided with a copy of the brief for these workshops presented to the Corporate Management team. Initially it is proposed that the workshops will be designed to develop managers skills in the following areas: - Managing attendance; - Dealing with unacceptable conduct; - Dealing with unsatisfactory performance; - Managing change; and - Resolution of grievances. We welcome the council’s approach in this area. A common theme highlighted by users and staff throughout our inspection was the lack of an effective integrated IT system. Examples were cited to us of data being compiled manually which was seen as cumbersome and ineffective. We recognise that the corporate management team in June 2001 agreed to explore options to overcome this challenge. We view the lack of an integrated IT system as a serious issue which the council needs to address. Summary In summary, the council has recognised the need to change elements of the human resources service. It was evident to us that the service “had moved on” since the review. We have concluded that the best value review addressed the current areas for development in human resources, and that good progress has been made on those actions. We found that key stakeholders have ownership of the improvements proposed. Local performance indicators have been developed. However, a lack of an effective integrated IT system is a challenge which needs to be overcome. Appendix - What the inspectors did The purpose of best value inspection is to make two judgements. The first is, how good is the service being inspected? The second is, how likely is it to improve? We carried out a range of different activities to enable us to reach our judgements. Documents examined Before going on site, the inspection team reviewed documentation which had been provided by the authority in advance. This included the Best Value Performance Plan (BVPP), the best value review and the improvement plan. This work helped us to decide on the focus of our inspection. Document Review included - Best value performance plan – “Future Enfield” - Management letter – December 2000 - Engaging Enfield – consultation strategy 2001 and beyond Reality checks undertaken - Walked the floor of the service - Telephoned 12 users across the council (chosen by Inspectors) - Requested information by telephone on four occasions - Held Focus Groups for staff, chief officers and heads of service Interviews conducted Internal to the council \| Name \| Position \| \|-----------------\|---------------------------\| \| David Plank \| Chief Executive \| \| Angela O’Connor \| Head of HR \| \| Margaret McHugh \| HR Consultant \| \| Ingrid Froyland \| HR Consultant \| \| Sandra Allen \| HR Consultant \| \| Tim Strong \| Assistant Head HR \| \| Name \| Position \| \|-------------------------------\|-----------------------------------------------\| \| Althea Loderick \| Assistant Head HR \| \| Pamela Standley \| HR Consultant \| \| Councillor Roger Buckley \| Member \| \| Councillor Andrew Stafford \| Member \| \| Sharon Dunn \| Policy Unit \| \| Roy Dunnett \| Trade Union \| \| Malcolm Featley \| Trade Union \| \| Councillor Edward Smith \| Member \| \| Gerry Glover \| Finance \| \| Steve England \| HR Consultant \| \| Chris Ellis \| Training and admin Support Manager \| \| Mark Clark \| IT \| \| Sue Chick \| HR Consultant \| \| Tony Hull \| Safety Adviser \| \| Karen Canterford \| Operations Manager \| \| Anne Mursell \| HR Adviser \| \| Dr Phil Slater \| Head of Student Union \| \| Dr Kathy Darby \| D & T Consultant Management Development \| \| Rosemary Arrowsmith-Oliver \| D & T Co-ordinator \| External to the council \| Name \| Position \| \|-------------------------------\|-----------------------------------------------\| \| Chandra Bhatia \| Enfield Council for Racial Equality \| \| Annie Cockcroft \| Occupational Health outsourcing provider \|	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/2471-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 30, "total-input-tokens": 53920, "total-output-tokens": 12322, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 56, 1 ], [ 56, 777, 2 ], [ 777, 3120, 3 ], [ 3120, 4367, 4 ], [ 4367, 5931, 5 ], [ 5931, 7774, 6 ], [ 7774, 8337, 7 ], [ 8337, 9816, 8 ], [ 9816, 11347, 9 ], [ 11347, 12885, 10 ], [ 12885, 14882, 11 ], [ 14882, 17480, 12 ], [ 17480, 19786, 13 ], [ 19786, 22257, 14 ], [ 22257, 25002, 15 ], [ 25002, 27778, 16 ], [ 27778, 29746, 17 ], [ 29746, 31273, 18 ], [ 31273, 33173, 19 ], [ 33173, 33842, 20 ], [ 33842, 36117, 21 ], [ 36117, 38300, 22 ], [ 38300, 40590, 23 ], [ 40590, 43005, 24 ], [ 43005, 45251, 25 ], [ 45251, 47203, 26 ], [ 47203, 49499, 27 ], [ 49499, 51330, 28 ], [ 51330, 52768, 29 ], [ 52768, 54834, 30 ] ] }
c13e34d7b1be3b2534ca7f204958f04b8b35763a	Engagement and consultations Our approach to consultations is explained in this policy statement, which informs how we seek and take into account views when we make legislation, guidance and policy decisions. It is our duty to ensure that decisions are properly informed, and consulting with those that have an interest is necessary to ensure that our decisions take account of relevant opinions and are evidence based. Who we consult We aim to reach stakeholders that are directly affected, or have specific expertise in the subject under consideration. We consider whether proposals might impact on specific stakeholder groups, including minority groups or those that might normally be less likely to respond to government consultations, and try to involve them in the consultation process. How we consult We will adapt our approach to the issue on which we are consulting and the key stakeholders we are trying to engage. Our aim is to undertake meaningful engagement with our stakeholders throughout the decision making process. For significant policy and legislative changes we will undertake a formal consultation. We publish all consultations on our website and alert stakeholders to this. Formal written consultation is not always the most appropriate approach and other engagement methods are better suited to deliver meaningful engagement. Other engagement methods we use include: - issuing letters to Interested Parties to obtain their views - face-to-face meetings with individuals or small groups of stakeholders - public meetings - focus groups, professional or social networks - social media and other on-line communication platforms We take into account access needs and can provide the consultation documents in alternative formats such as Braille. In our consultation documents, we aim to: - use plain English and avoid using jargon wherever possible, - be transparent about what decisions stakeholders can influence, by being clear about the scope of our consultations and what we are seeking views on, - provide clear information about how to respond and get involved, and - provide an assessment of the impact of any proposals to identify the benefits, costs and risks. We normally ask specific questions to focus attention on key issues and we encourage stakeholders to provide evidence and reasoning to support their views. Responding to consultations We aim to be flexible in how we receive consultation responses, including emails and letters but also by phone, or in person at a meeting where stakeholders make clear that they want their views captured as part of the consultation process. How responses are handled We aim to publish summary reports of responses on our website within three months of the closing date of the consultation. Information provided in response to FSA consultation may be subject to publication or release to other parties or to disclosure in accordance with the access to information regimes (these are primarily the Freedom of Information Act 2000 (FOIA), the Data Protection Act 2018 (DPA) and the Environmental Information Regulations 2004. Full details of how the FSA handles data received through consultation is published in the [consultations privacy notice](#) and included within our consultations. Welsh Language scheme Where appropriate we produce consultations in Welsh as well as English, and we do so simultaneously in accordance with our Welsh Language Scheme. The scheme allows exceptions to translation only when the document is of a technical nature or aimed at a specialist or limited audience. Annexes and Summaries of Responses are not translated. Access our consultations Our consultation process follows the Cabinet Office Consultation Principles and complies with The Regulators’ Code. [Search our recent Consultations](#) [Search our archived Consultations](#)	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/2472-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 2, "total-input-tokens": 3325, "total-output-tokens": 816, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 2290, 1 ], [ 2290, 3880, 2 ] ] }
0262bd7a7d07b408aee56e6dfca4705a9ae05df2	Dear Sir APPG for reform, decentralisation and devolution in the UK Better devolution for the whole UK enquiry As Chairman of the English Democrats I am writing to submit evidence to your enquiry. Here are some key facts about the English Democrats: The English Democrats launched in 2002 and are the only campaigning English nationalist Party. We campaign for a referendum for Independence for England; for St George’s Day to be England’s National holiday; for Jerusalem to be England’s National Anthem; to leave the EU; for an end to mass immigration; for the Cross of St George to be flown on all public buildings in England; and we supported a YES vote for Scottish Independence. The English Democrats are England’s answer to the Scottish National Party and to Plaid Cymru. The English Democrats’ greatest electoral successes to date include:- in the 2004 EU election we had 130,056 votes; winning the Directly Elected Executive Mayoralty of Doncaster Metropolitan Borough Council in 2009 and also the 2012 mayoralty referendum; in the 2009 EU election we gained 279,801 votes after a total ENGLISH DEMOCRATS PARTY Continued Date: 10/03/2016 EU campaign spend of less than £25,000; we won the 2012 referendum which gave Salford City an Elected Mayor; in 2012 we also saved all our deposits in the Police Commissioner elections and came second in South Yorkshire; and in the 2014 EU election we had 126,024 votes for a total campaign spend of about £40,000 (giving the English Democrats by far the most cost efficient electoral result of any serious Party in the UK!). In the 2015 General Election we had the 8th largest contingent of candidates in England. We would be happy to give oral evidence to the enquiry. OUR EVIDENCE In your Terms of Reference you have stated you want evidence on various defined areas:- 1) Devolved Nations; 2) Local Government; 3) Central Powers; and 4) Wider Constitutional Reform. The English Democrats on behalf of the Party itself and on behalf of the wider English nationalist movement would respond as follows:- 1. Devolved Nations ‘Devolution within England’ cannot properly be described as “Devolution” at all by comparison to Scottish and Welsh national devolution. The only devolution that would be properly so called for England would be of an English Parliament, First Minister and Government with at least the same powers as the Scottish ones within a Federal UK. It is the English Democrats opinion that the time for a Federal UK has already passed. For that to happen what should have happened in the first place when devolution occurred was that a coherent and fair national devolution for each of the constituent nations of the United Kingdom of Great Britain and Northern Ireland should have been set up with each assembly or parliament having the same powers and a defined relationship with central government, as per every proper Federal State in the world. The fact that this was not done and that England’s just and fair interests have been consistently ignored and derided has led to mounting resentment in England. It also would have been possible for the UK to have been turned into a Federal Regionalist State in conformity with the EU regionalist objectives but that would have required Scotland and Wales to have been regionalised and not for them to have national devolution. That window of opportunity has now firmly passed. EVEL or English Votes for English Laws is a bogus, populist positioning policy which does not even properly answer the representational element of the wider English question. The Conservative Government’s proposals are in any case the weakest of all the proposals for English Votes for English Laws. They will certainly disappoint all those people in England who think that the political system should allow a proper and fair voice for English interests to be expressed. The EVEL proposals do not of course even touch the executive side of the question as there is no proposal to have either a First Minister or Government for England, nor does it touch the administrative side of the question as there is no proposal to have an English Civil Service and not even to have a Secretary of State for England and therefore there is no parity with these proposals with what has been created for Scotland and Wales. 2. Local Government It is not part of England’s tradition for legislative competence to be devolved from the National Government. However it is part of England’s tradition for our local government structures to be as independent of central government as possible. It is partly the United Kingdom’s increasing obsession with centralisation which ENGLISH DEMOCRATS PARTY Continued Date: 10/03/2016 has created the demand for Decentralisation. The English Democrats would like to see traditional local government structures re-empowered and there to be a substantial decentralisation of powers. As the power to raise their own funds is an important part of the effectiveness and independence of governmental structures we would also support decentralisation of tax raising powers to enable local government to fund itself. Those aspects of so-called local government which are little more than local structures being deputised to do exactly what central government wants done should be dealt with by separate agencies rather than continuing with the pretence that they are genuinely part of local government. The governance of Local government should also be made more democratically accountable with the universal implementation of Directly Elected Executive Mayors for all principal local authorities. 3. Central Powers The role of Whitehall should be reduced and the role of the Houses of Parliament should be confined much more to those areas which under the current and evolving situation have not been devolved to Scotland. 4. Wider Constitutional Reform Electoral System Scotland’s electoral system has shown that despite the whiff of gerrymandering that accompanied the way it was set up, it has enabled a diversity of political opinion to be expressed in the Scottish Parliament. It is therefore to be preferred to an electoral system, such as the current first past the post system for the House ENGLISH DEMOCRATS PARTY Continued Date: 10/03/2016 of Commons which gives a bogus cloak of democratic majority to a party voted for by only 26% of the electorate in the last election and, with one sole exception, almost wholly denied representation for the votes of nearly 4 million voters. Such an electoral system is not only unfair but it is undemocratic. House of Lords The current composition of the House of Lords is completely unsatisfactory and too often appears to rest on cronyism, patronage and donations. Having moved from the original composition of mainly hereditary peers, there are only three options:- 1) Abolition of the House of Lords; 2) Reform to be a democratic UK Senate, as suggested by Lord Salisbury; or 3) A wholly elected Upper Chamber. Those are the basic submissions of the English Democrats which we would be happy to expand upon in oral evidence if called. Yours sincerely Robin Tilbrook Chairman Tel: 01277 896000 Email: [email protected]	olmocr	2025-03-31T00:00:00	2025-03-31T00:00:00	{ "Source-File": "/workspace/input-pdfs/2474-pdf.pdf", "olmocr-version": "0.1.60", "pdf-total-pages": 5, "total-input-tokens": 9038, "total-output-tokens": 1721, "total-fallback-pages": 0 }	{ "pdf_page_numbers": [ [ 0, 1099, 1 ], [ 1099, 2881, 2 ], [ 2881, 4659, 3 ], [ 4659, 6227, 4 ], [ 6227, 7209, 5 ] ] }
416b94a649f9f51ff21ef0605beb28adfaf34fda	The National Archives Education Service English Language GCSE - Places Using images for descriptive and narrative writing. Contents Teacher’s notes ........................................................................................................................................... 3 COPY1/461/577 Collapse of cliff by the Lord Nelson Public House at Lowestoft 1903 ................................................................. 5 A man peers over the edge of a cliff which has eroded to the door of the Lord Nelson Public House. COPY1/463/199 Burning of Cleethorpes pier, 1903 ................................................................. 7 Photograph of the burning of Cleethorpes Pier, June 1903 COPY 1/460/87 Men descending by aerial railway at Beachy Head lighthouse, 1903 ................................................................. 9 A group of men photographed as they take the aerial railway to the Beachy Head lighthouse. COPY 1/454/252 Market day, Taunton, 1902 ............................................................................. 11 Photograph of Market Day on the Parade, Taunton, taken from Market House COPY 1/376/116 Whitby Abbey, 1886 ..................................................................................... 13 A view of Whitby Abbey with pond and cattle across foreground, 1886. DSIR4/3628 Damage to structures by flood and gales during winter 1952-53 ................................................................. 15 A house showing substantial damage after the winter storms of 1952-53. COPY1/375 (67) Boat, house and windmill, Countryside scene, P H Emerson, 1886 surveys, 1953-1954 ................................................................. 17 A couple boating on the river in front of a house and windmill. INF9/706 St Ives, Cornwall, 1930s ..................................................................................... 19 A view of St Ives, Cornwall, from the water in the 1930s. INF9/683 Blackpool Pleasure Beach, Big Dipper and Boating Pool, 1930s ................................................................. 21 A view of Blackpool’s rides and boating pool from the water in the 1930s. This collection of photographs from The National Archives' image library has been collated to provide a resource for English Language GCSE. The images can be used for descriptive or narrative creative writing prompts, allowing students to consider a variety of historical scenes as inspiration for their writing. Each image has been presented as a full page spread before key areas have been extracted for close detail description and prompts for the imagination. These pages can be used as a ready-made resource or adapted to suit your own classroom purposes. A generic question page has also been provided to allow students to focus on their own details within the photographs, rather than those pre-selected. Whilst the resources have been designed with the English Language GCSE in mind, they can be used for other age groups to develop imagination when considering character and description. Each image has been provided with its original document reference and description to offer some context to the image if desired, such as time period and location. However, the descriptions are deliberately brief and there are no correct answers required in creative writing. The photographs are presented as prompts only and students are not required to write creatively about actual historical places, figures or events. Viewfinders Some students may find a viewfinder useful when trying to describe an image. Cut out a piece of paper of card in a shape similar to the one below. Students can then move this around the photograph to discover smaller interesting scenes to describe without the distraction of the rest of the detail. Only when they feel they have described the smaller scene in depth should they move on to select another area of the image. Questions What can you see? Where might this be? Why might this photograph have been taken? What happened just before the photograph was taken? What happened just after the photograph was taken? COPY1/461/577 Collapse of cliff by the Lord Nelson Public House at Lowestoft 1903 What can the man leaning over the edge see? What might he be feeling? What can he hear? What about the other people in the picture? The earth has settled at the bottom of the cliff, what sound might it have made when it fell? What smell might it have? What does it look like from the beach or above? The house at the end of the row is less affected. What might you see from the windows? Can you describe the way it sits compared to the pub next door? Burning of Cleethorpes pier, 1903 Can you describe the smoke – what does it look like? What might it smell like? What shape is it? Can you describe the pier – what is it made of? What shapes can you see? What might it feel like if you stood on it? Does it make any noise walking along it? There are crowds of people all over the bottom of the photograph. What might it feel like to be amongst them? What might they be saying? What might they be trying to do? COPY 1/460/87 Men descending by aerial railway at Beachy Head lighthouse, 1903 How many people are within the railway carriage? What might they be feeling on their journey? What can they see? Can you describe the shape of the cliff face? What does it look like? What colour is the stone? Can you describe the way the lighthouse sits in the sea? What might you be able to see from the top of the tower? How would you get from the landing station to the lighthouse? Market day, Taunton, 1902 COPY 1/454/252 Market day, Taunton, 1902 There are flags flying on the rooftops, can you describe the weather? What noise might the flags make? In the crowd there is a group of boys, a lady shopping and a very smartly dressed man. What might they be doing? How might they interact? What types of products are for sale at the market? What sounds, smells, flavours and colours might there be? How might the market sellers make sure they sell their products? Using images for descriptive and narrative writing Whitby Abbey, 1886 What is the abbey made from? What shapes can you see? What place does the ruin have in the landscape? The abbey is reflected in the water – can you describe this? Is the water calm or broken? What atmosphere might the place have? There are cows in the foreground of the picture – who might use this landscape. Does this match up with the state of the church? How do the two elements fit together? DSIR4/3628 Damage to structures by flood and gales during winter 1952-53 What damage can be seen on the left hand side of the building? Can you see the figure in the window? What are they looking at? How do they feel standing inside the house? The right side of the house was completely destroyed. Can you describe what is left? How might the man feel stood inside? The rest is rubble and dirt. Can you describe what you can see in this section of the picture? Try to use the senses to add detail. Using images for descriptive and narrative writing COPY1-375 (67) Boat with house and windmill in the background. Countryside scene. P H Emerson, 1886 surveys, 1953-1954 Focus on the cottage and the windmill—how does it move? Does it make noise? Can you describe it? What do the couple in the boat look like? What temperature is it there? How do you know? Look at the water—what is the weather like? What time of year is it? How do you know? How do the buildings fit into the landscape? What emotions are created by the scene? Using images for descriptive and narrative writing INF9-706 St Ives, Cornwall, 1930s INF9-706 St Ives, Cornwall, 1930s What can you see? What is going on? What is the weather like? How can you tell? How crowded together are the buildings? Can you spot the people? Can you see a flag? Describe the scene using the different senses. What kind of town is this? What industry do most people work in? Are the people rich or poor? What view might you have from the windows of the houses? Using images for descriptive and narrative writing INF9-683 Blackpool Pleasure Beach, Big Dipper and Boating pool, 1930s Can you describe the Big Dipper? What does it look like? How might it feel to ride the rollercoaster? Take a look at this section of the scene. How old are the people in the boat? What kind of boat is it? What sights, sounds and smells might they be experiencing? What can you see in the rest of the image? 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