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SECTION 4: STATISTICAL MODEL AND DATA SOURCES
The contribution of tourism to cultural and creative activity would be implicitly captured within the industry supply chain estimates. Within the ABS’ tourism satellite account this contribution is already drawn out in estimates of ‘cultural services’ output and GVA, which are based on visitor spending allocated to heritage and the creative and performing arts. These estimates are thought sufficient to meet stakeholder needs.
State and territory splits of the industry supply chains component could potentially be developed using a method similar to how the ABS’ state accounts are constructed17. Input-output tables would allow GVA for each Australian industry in the cultural and creative satellite accounts to be decomposed into their primary inputs:
These primary inputs of each industry could potentially then be split by state and territory based on their shares of national indicators.
This possible method of producing state and territory splits would need to be assessed further once Australian estimates are developed since there may be unforseen issues with the quality of the underlying data. Also, while this method may be suitable for constructing Australian cultural and creative activity satellite accounts, it should be noted this is not necessarily suitable for broader application, particularly for industries that have many large multi state businesses.
CULTURAL AND CREATIVE OCCUPATIONS IN OTHER INDUSTRIES
The cultural and creative activity undertaken outside of the cultural and creative industry supply chains is proposed to be valued as a share of the COE aggregates in the ABS’ input-output tables. COE is the total remuneration payable by enterprises to employees, in cash or in kind, comprised of wages and salaries, and employers’ social contributions (the latter includes contributions towards retirement benefits such as superannuation).
An argument can be made that the value of this activity should also include shares of GOS and GMI, which represent returns to the capital used by workers. It is not proposed to do this in the Australian satellite accounts as there are considerable conceptual and practical difficulties with identifying how the use of capital is spread within an industry across different types of workers.
COE for each industry is proposed to be apportioned to cultural and creative activity by estimating the share of total employee remuneration payable to people employed in cultural and creative occupations. Multiple jobholding is prevalent among cultural and creative occupations and consequently this estimate would factor in main jobs and secondary jobs.
The Australian estimates for this component of the satellite accounts could potentially be split by state and territory using the Census employment profiles of each jurisdiction, coupled with adjustments for the differences in average wages by state using Average Weekly Earnings, Australia (cat. no. 6302.0). This method has not been previously trialled but is expected to be feasible.
VOLUNTEER SERVICES TO CULTURAL AND CREATIVE INSTITUTIONS
The value of volunteer services in Australian cultural and creative satellite accounts is proposed to be estimated using the ‘replacement cost’ method that is used by the ABS’ non-profit institutions Satellite Account, based on the United Nations’ Handbook. In this method, each hour of a volunteer’s time is valued at what it would cost to replace with paid labour21.
Data on volunteers are collected periodically in the ABS’ General Social Survey (GSS)22. In this survey people are asked about the type of organisations they volunteered for, the number of hours they worked unpaid and the types of work activities they performed. The number of hours volunteered with the ‘arts/heritage’ organisation type would be multiplied by replacement wage rate assumptions based on Employee Earnings and Hours Survey data. The replacement wage rate assumptions would vary with the work activities the volunteers performed and the occupation categories to which these activities match.
The volunteer hours data required for this estimate was last collected in 2006, but may be collected again in the survey scheduled for 2014. For the reference periods in between, volunteer hours could be estimated by applying the volunteering rates from the 2006 survey to the changed Australian population levels.
Australian estimates of volunteer hours in ‘arts/heritage’ could potentially be split by state and territory using the GSS’ state level estimates. Some of the relative standard errors on these estimates were high in the 2006 GSS and consequently it may be more appropriate to estimate volunteer hours by applying the Australian volunteering rates to each jurisdiction’s population. These methods have not been trialled previously but are expected to be feasible. The replacement wage rate assumptions applied to the state estimates would be adjusted for state differences in average wages based on Average Weekly Earnings, Australia (cat. no. 6302.0).
NON-MARKET OUTPUT OF MARKET PRODUCERS
As explained in section 3, the non-market output of market producers has previously been estimated in the ABS’ non profit institutions satellite account and the same method is proposed for use in Australian cultural and creative activity satellite accounts.
Non-market output of market producers would be valued as the difference between the output of market units when calculated by cost summation (the standard national accounts valuation method for non-market units), and output as calculated by sales value (the standard national accounts method for market units). Where output on a cost valuation basis exceeds output on a sales valuation basis, the difference is taken to be the non-market output of market producers. Where output on a sales basis exceeds output on a cost basis, non-market output of market producers is assumed to equal zero23. This is represented in figure 7 below.
Figure 7: Valuation of market and non-market outputThe estimate of this component would be compiled for cultural and creative industries using BAS data for individual entities, like in the Australian non-profit institutions satellite account. The estimate would be restricted to market producers that are non-profit institutions.
State and territory splits of the Australian estimate could potentially be constructed using the BAS data and EAS data. EAS directly collects state details for significant businesses and this could enable the non-market output of multi-state businesses to be assigned. However, the data sources have not previously been used for this purpose and there could be unforseen issues.
Some of the more detailed data sought by stakeholders about the composition of Australian cultural and creative activity can be developed from existing statistical collections, while others would require new collections to be undertaken, as explained below.
Data on the types of incomes received and expenses incurred by entities are collected as part of the ABS’ rolling EAS program and in selected cases data about their assets and liabilities are also collected. The range of data items in the standard EAS questionnaire are not as detailed as desired by stakeholders, however with funding, additional data items could be added to the questionnaire. The EAS produces Australian estimates for ANZSIC subdivisions, which are two levels of aggregation higher than ANZSIC classes. This delivers detail for some of the ANZSIC class aggregations in the cultural and creative industry supply chains, but not a majority. Finer industry breakdowns can become available for years when the EAS rolling program specifically targets parts of the culture and creative industries supply chain (e.g. the survey of businesses in film, television and digital games run for 2011-12). State estimates can become available in those years at ANZSIC subdivisions or lower (they are available annually for divisions with the items limited to wages and salaries, employment and sales income). In the future it may be possible for the ABS to make available details of income, expenses, assets and liabilities at finer industry levels using ATO business tax data.
Details on Research and Development (R&D) expenditure in Australia are collected annually by the ABS from businesses, government, higher education and private non-profit organisations24. These collections aim to be near-complete enumerations of R&D expenditure and provide a high level of industry detail, including estimates for ANZSIC classes where confidentiality standards allow. It could be possible to use this data to compile R&D expenditure for the aggregations of ANZSIC classes which make up the cultural and creative industry supply chains, both for Australia and a split by state and territory. However, the compilation process would be fairly resource intensive.
Details on the number and size of entities in each industry can be compiled from the ABS’ Business Register. Entity counts are possible for each state and territory according to each entity’s main location of operation. This would be compiled consistently with the data for businesses (a subset of all entities) which the ABS currently publishes annually in Counts of Australian Businesses, including Entries and Exits (cat. no. 8165.0).
Following the estimation of cultural and creative activity by ANZSIC class, it would be possible to extend these estimates further to construct an Australian supply-use table describing the linkages between cultural and creative industries and the rest of the economy. An example of the structure of a supply-use table is given by table 14 in Appendix 1.
In the supply-use framework, product groups and primary inputs are shown in the table rows, and industries and final use categories in the columns. Figures in rows show the total supply of products, whether locally produced or imported, and how these products are used by industries as intermediate inputs to production, or consumed as final demand. At the bottom of a supply-use table, the rows show the primary inputs purchased by industries, and by final demand. Reading down the columns shows the inputs (intermediate and primary) into each industry, and the composition of each final demand category. Therefore all flows of goods and services in the economy are covered.
Construction of this table for cultural and creative activity in Australia would begin with the ABS’ published supply-use table for Australia. GVA and output for IOIGs would be split and redefined according to the estimates of activity for cultural and creative industry supply chains. Intermediate uses would be reallocated across IOIGs in the same proportions as output.
14 European Commission, International Monetary Fund, Organisation for Economic Co-operation and Development, United Nations and World Bank (2009), System of National Accounts, 2008, <http://unstats.un.org/unsd/nationalaccount/docs/SNA2008.pdf>.
15 An IOIG to ANZSIC concordance is contained in Australian National Accounts: Input-Output Tables (Product Details) (cat. no. 5215.0.55.001), Table 2. IOPG to IOPC Concordance.
16 See Australian National Accounts: Tourism Satellite Account (cat. no. 5249.0), explanatory note 78.
17 See chapter 21 of Australian System of National Accounts: Concepts, Sources and Methods (cat. no. 5216.0).
18 See technical notes 1 and 3 in the Explanatory Notes of Australian Industry (cat. no. 8155.0).
19 Published in Employee Earnings and Hours, Australia (cat. no. 6306.0).
20 Published in Employment Arrangements, Retirement and Superannuation, Australia (cat. no. 6361.0).
21 Australian National Accounts: Non-Profit Institutions Satellite Account (cat. no. 5256.0), p35-36.
22 Published in General Social Survey: Summary Results, Australia (cat. no. 4159.0) and Voluntary Work, Australia (cat. no. 4441.0)
23 Australian National Accounts: Non-Profit Institutions Satellite Account (cat. no. 5256.0), p35.
24 Published in Research and Experimental Development, All Sector Summary, Australia (cat. no. 8112.0); Research and Experimental Development, Businesses, Australia (cat. no. 8104.0); Research and Experimental Development, Higher Education Organisations, Australia (cat. no. 8111.0); and Research and Experimental Development, Government and Private Non-Profit Organisations, Australia (8109.0).
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