To ask the Chancellor of the Exchequer what steps he is taking to ensure that the treatment of (a) extra-regio gross domestic product and (b) financial and investment services in Eurostat statistics for regional gross domestic product do not disadvantage UK regions with regard to the allocation of European regional aid funds.

The information requested falls within the responsibility of the National Statistician who has been asked to reply.

Letter from Len Cook to Mr. David Maclean, dated 27 June 2005

As National Statistician I have been asked to reply to your recent Parliamentary Question on what steps are being taken to ensure that the treatment of (a) extra-regio gross domestic product and (b) financial and investment services in Eurostat statistics do not disadvantage UK regions with regard to the allocation of European regional aid funds. (6125)

My responsibility is to ensure that proper statistical processes are followed, and that the statistics are the best that can be devised. To this end I have written to the Director General of Eurostat (MrHanreich) twice this year to express my concern at the approach adopted in the calculation of Regional GDP per capita. I have questioned the treatment of both Extra-Regio and FISIM (Financial Intermediation Services Indirectly Measured).

I last wrote to Mr Hanreich on 3 June and have yet to receive a reply.