TERMS AND DEFINITIONS Industry Classification and Descriptions National Accounts Industry Description of the Type of Economic NZSNA Industry Groups Reference NZSIC Activity Market Industries 1 Agriculture Sheep, beef and mixed livestock 1.1 1112, 1113, 11141 Raising of sheep, beef and mixed livestock. Dairy 1.2 1111 Dairy farming. Horticulture 1.3 1115 & 1117 Growing of horticultural crops and fruit. Other farming 1.4 1114, 1116, 1119 Raising of other animals, cropping and [excl. 11141] other farming. Services to agriculture 1.5 112 Agricultural services such as fencing, shearing, top dressing etc. 2 Fishing and Hunting Fishing and hunting 2.0 113, 131,132, Hunting, trapping and noxious animal 133 control; all commercial fishing activity. 3 Forestry Forestry and logging 3.0 12 Ownership and management of forests; forestry (planting, thinning etc); logging (felling trees and hauling logs - carried out in the bush separate from the sawmill); and consultancy services. 4 Mining and Quarrying Oil and gas exploration and 4.1 2201, 2202 Exploration and drilling for crude extraction petroleum and natural gas; extraction of crude petroleum and natural gas. Includes the operation of oil and gas undertakings up to the point of shipment from the producing area, both on and off shore . Other mining and quarrying 4.2 21, 23, 29 Mining including extraction, crushing and purifying of coal, metal ore, stone, clay, fertilisers, salt etc; and mining consultancy. 5 Food, Beverages and Tobacco Meat and meat products 5.1 3111 Slaughtering and processing of meat. Dairy products 5.2 3112 Production and packaging of milk, cream, ice cream and other dairy products. Other food manufacture 5.3 3113-3122 Processing of fruit, vegetables, fish and shell fish; grain milling, baking, sugar and confectionery manufacture; animal feed manufacture. Beverage manufacture 5.4 313 Production of beverages. Tobacco manufacture 5.5 314 Manufacture of tobacco products. 6 Textiles, Clothing and Footwear Textile and apparel manufacture 6.0 321 - 324 Scouring of yarn, spinning and weaving of textiles; dyeing and printing of materials; manufacture of carpet, rope, canvas etc; manufacture of clothing, tanning, tailoring and garment production; manufacture of footwear. National Accounts Industry Description of the Type of Economic NZSNA Industry Groups Reference NZSIC Activity 7 Wood and Wood Products Wood and wood products 7.0 33 Sawmilling, planing, preserving, chipping manufacture etc of timber; manufacture of prefabricated and pre-cut buildings, plywood, carpentry, and joinery; caneware, cork products, and wooden containers; wooden furniture and fixtures (including car upholstery and mattress making). 8 Pulp and Paper Products, Printing and Publishing Paper and paper product 8.1 3411, 3412, Production of pulp, paper and manufacture 3419 paperboard; manufacture of paper bags and paperboard containers etc; wallpaper and other pulp, paper and paperboard articles. Printing and publishing 8.2 342 Printing and publishing (including newspapers, periodicals and books) and allied industries. 9 Petroleum, Chemical, Plastics and Rubber Products Petroleum, coal and basic 9.1 351, 353, 354 Production of basic industrial chemicals chemical manufacture (including fertiliser and pesticide production; manufacture of synthetic resins, plastic materials and man-made fibres except glass); petroleum refining; production of miscellaneous products of petroleum and coal. Rubber, plastic and other 9.2 352, 355, 356 Manufacture of paints, varnishes, chemical products lacquers, drugs and medicines, soap, cleaning products, perfumes and cosmetics; manufacture of tyres and tubes including retreading and vulcanising, and other rubber products; plastic products not elsewhere classified. 10 Non-metallic Mineral Products Non-metallic minerals 10.0 36 Manufacture of concrete, clay, glass, manufacture plaster, masonry, asbestos, lime and related mineral products. 11 Basic Metal Products Basic metal industries 11.0 37 Manufacture of ferrous and non-ferrous metal from the smelting stage through to rough forging and casting. 12 Fabricated Metal Products, Machinery and Equipment Fabricated metal products 12.1 381 Manufacture of almost all fabricated manufacture metal products including: household and kitchen utensils, and hardware; metal furniture and fittings; structural metal products; and wirework, nails and fasteners. Transport equipment manufacture 12.2 384 Transport equipment including ship building and repair, railroad equipment, motor vehicles, motorcycles, bicycles and aircraft. National Accounts Industry Description of the Type of Economic NZSNA Industry Groups Reference NZSIC Activity Machinery and equipment 12.3 382, 383, 385 Production of: engines including manufacture reconditioning; office computing and accounting machinery; agricultural machinery and equipment; tool, die and jig making, and metal and woodworking machinery; electrical industrial machinery and apparatus, radio, television and communications equipment, domestic electrical appliances and other electrical apparatus and supplies; professional and scientific measuring and controlling equipment, and photographic and optical goods. 13 Other Manufacturing Other manufacturing 13.0 39 Manufacture of jewellery, musical instruments, sporting and athletic goods, and sundry items such as brushes, brooms, toys, souvenirs etc. 14 Electricity Gas and Water Electricity supply 14.1 4101 Electricity generation and distribution. Gas supply 14.2 4102 Gas treatment and distribution. Water supply 14.3 4200 Water works and supply including the collection, purification and distribution of water. 15 Construction Construction 15.0 51, 52, 53 Construction, alteration, renovation, repair and maintenance of buildings including ancillary building and construction services such as brick and block laying, carpentry, painting, plastering, glazing, roofing, electrical and plumbing work, installation of heating, air conditioning, floor covering, and insulation and other building and construction services; construction and project management for work other than building, including work on structures such as dams, roads, pipelines, tunnels, bridges, power transmission lines and flood and drainage facilities. Also includes the construction of any building by a person, or enterprise, who undertakes construction work for their own use whether or not the owner physically does any building work. National Accounts Industry Description of the Type of Economic NZSNA Industry Groups Reference NZSIC Activity 16 Distribution Wholesale trade 16.1 61 Distribution and sale (without transformation) of large quantities of all types of new or used goods for resale (including petroleum and the activities of producer boards). Includes assembly, sorting, breaking down of bulk goods and repackaging activity. Retail trade 16.2 62 Sale of goods without transformation, predominantly to final consumers. Accommodation, cafes and 16.3 63 Operation of restaurants including restaurants tearooms, takeaway food stores, cafes, etc and catering; the provision of accommodation including the operation of hotels, motels, hostels, motor camps etc. 17 Transport and Storage Rail transport 17.1 7111 Transportation of freight and passengers by rail. Excludes railways workshop activity, intermediary activity by firms arranging rail freight, and the construction and maintenance of track. Road transport 17.2 7112, 7113, Transportation of passengers on 7114 scheduled and chartered bus services including the operation of bus terminals and railways bus services; the provision of cars with drivers for hire by the public excluding taxi communication services; the operation of school bus contractors; freight transport by road including logging, stock and refrigerated haulage, furniture removal and general freight carriage. Water transport 17.3 712 Ocean, coastal and inland water transport of passengers and freight including rail ferry operation; supporting services to water transport such as harbour operations, maritime safety, stevedoring etc. Air transport 17.4 713 Transport by air of passengers and freight; aero club, aircraft rental, and airport operations activity. Services to transport 17.5 7116-7, 719 Vehicle parking, metering and toll operations; car and truck rental services; other services allied to transport including travel operators and agents, storage and warehousing, freight agents, aircraft and shipping brokers, freight packing and crating services, and container rental services. National Accounts Industry Description of the Type of Economic NZSNA Industry Groups Reference NZSIC Activity 18 Communication Communication services 18.0 72002, 72003 Transmission of sound, images or other information via cable; answering and radio communications services; postal activities and courier services. 19 Finance, Insurance, Real Estate and Business Services Finance 19.1 811, 812, Operation of the central bank, trading 81330 banks and of recognised savings banks; other financial activities including the acceptance of deposits from the public and businesses; loan and credit operations; and enterprises that are engaged in investing money on their own account. Insurance 19.2 821, 822 Provision of life insurance and life re-insurance including mortgage repayment insurance; superannuation and mutual fund operation not separately administered; provision of fire and other accident insurance; provision of medical, hospital and dental insurance; employee benefit funds, welfare societies and friendly societies; operation of separately administered superannuation and pension funds. Excludes funds managed on a fee or contract basis. Services to finance and 19.3 81310, 814 Trustee operations including the insurance [excl 81492], redistribution of income from assets 823 under administration on behalf of estates and other investors; other services to finance and investment including broking, dealing and underwriting stocks, shares and securities services, mortgage and finance broking etc; insurance broking and agency services, adjustment, assessing and consultant services and the management of pension and superannuation funds on a commission or fee basis; and the activities of self-employed insurance commission agents. Real estate 19.4 831 Activities of real estate agents, valuers, excl 83122 appraisers and property management on a fee or contract basis; ownership of property for leasing and rental including activity of property developers. Business services 19.5 832, 833 Business services such as legal, accounting, data processing, engineering, architectural and advertising services; machinery and equipment rental and leasing excluding the rental of transport vehicles. National Accounts Industry Description of the Type of Economic NZSNA Industry Groups Reference NZSIC Activity 20 Ownership of Owner - Occupied Dwellings Ownership of owner-occupied 20.0 83122 Households which own their own homes dwellings and notionally rent them back to themselves. 21 Community, Social and Personal Services Education services 21.1 93101 - 93104, Except where provided as a government 93109, 9320 service by a central or local government organisation, otherwise incudes kindergartens and play centres but excluding day nurseries and creches; primary and secondary education; universities, technical institutes, polytechnics etc; private tertiary and vocationally orientated education including private handicapped and disabled education; activities of research and scientific institutes. Health and community services 21.2 933 excl 9333, Except where provided as a government 9340 service by a central or local government organisation, otherwise incudes medical, dental and related health services; old peoples’ licensed rest homes, day care centre, creches and other welfare institutions. Cultural and recreation services 21.3 94 Except where provided as a government service by a central or local government organisation, otherwise incudes recreational and cultural services such as motion picture production and projection, racing, radio and television broadcasting etc. Personal and other services 21.4 92, 9333, 9350, 95 Except where provided as a government excl 953 service by a central or local government organisation, otherwise incudes sanitary, cleaning and pest control services; business, professional and labour associations; veterinary services; and personal and household services such as repair services, photography, hairdressing, dry cleaning, funeral direction and health studio services. National Accounts Industry Description of the Type of Economic NZSNA Industry Groups Reference NZSIC Activity Non-market Industries 22 Central Government Services Central government services 22.0 9101 plus any Central government administration, other economic defence, and fire services etc including activity from the administration of health, education NZSIC 111 to 959 and welfare services. which is provided as a 'government service' by a central government organisation 23 Local Government Services Local government services 23.0 9102 plus any Local government administration and other economic regulation and the operation of activity from recreational and cultural facilities, NZSIC 111 to 959 sewerage and drainage, refuse collection, which is provided river maintenance etc. as a 'government service' by a local government organisation 24 Private Non-Profit Services to Households Private non-profit services to 24.0 93101 - 93104, Education, health, and welfare services; households 93109, 932 - 935, business, professional and labour 939, 941 - 945 associations; religious, cultural, (excl 9415, 943, amusement, recreation, social and 94401), 95 excl community services. 953 25 Domestic Services of households Domestic Services of Households 25.0 953 Gardeners, housekeepers, home companions, baby sitters etc. 1 New Zealand Institutional Sector Classification 1990 1.00 Producer Enterprises 1.10 Private 1.11 Corporate 1.12 Non-corporate 1.20 Producer Boards 1.30 Government Enterprises 1.31 Central Government 1.32 Local Government 2.00 Financial Intermediaries 2.10 Central Bank 2.20 Financial Institutions providing current account facilities operated by cheque 2.21 Central Government 2.29 Private 2.30 Other Financial Intermediaries except insurance and pension funds 2.31 Central Government 2.32 Local Government 2.39 Private 2.40 Insurance and Pension Funds 2.41 Central Government 2.42 Local Government 2.49 Private 3.00 General Government 3.10 Central Government 3.11 Central Government (excluding Funded Social Security Schemes) 3.12 Funded Social Security Schemes 3.20 Local Government 3.21 Regional Authorities 3.29 Other Local Authorities 3.30 Runanga Iwi 4.00 Private Non-Profit Organisations Serving Households 5.00 Households 1 This classification was revised in 1996 to take effect in Statistic New Zealand’s Business Frame from December 1997. It will be implemented in the department’s major economic statistics series from February 1998. 6.00 Rest Of World Institutional Sector and Sector of Ownership It is important to distinguish between the previously published sector of ownership classification and the institutional sector classification outlined above. The sector of ownership classification groups accounting units into three sectors: private central government, and local government. The objective of the classification is to provide ownership detail within an industry framework. Each accounting unit is allocated to the sector which owns more than 50 percent of that entity. The institutional sector classification has an entirely different focus. Within this classification enterprises are grouped according to their economic roles. Industry affiliation is irrelevant, the economic role played by the enterprise is crucial. A secondary breakdown of ownership is available within this framework. The sectors and sub-sectors of the classification bring together transactors which play similar roles in the economic process of the nation and which can be expected to have similar reactions to market, fiscal and monetary policy stimuli. Glossary of Transactions Principal totals Gross Domestic Product (GDP) The total market value of goods and services produced in New Zealand after deducting the cost of goods and services utilised in the process of production, but before deducting allowances for the consumption of fixed capital. Gross National Expenditure The total final expenditure within a given period on goods and services by New Zealand residents (ie excluding goods and services used up during the process of production). Gross National Product (GNP) The income accruing within a given period to New Zealand residents from their services in supplying factors of production in New Zealand and overseas, plus net indirect taxes, and before the deduction of allowances for the consumption of fixed capital. In the 1993 SNA this is, more correctly, renamed Gross National Income. National Income This aggregate is equivalent to gross national product after the deduction of allowances for consumption of fixed capital. It is a measure of income accruing to New Zealanders from supplying factors of production in New Zealand and overseas, plus net indirect taxes. In the 1993 SNA this is, more correctly, renamed Net National Income. National Disposable Income The total income of New Zealand residents from all sources available for final consumption or savings. In the 1993 SNA this is, more correctly, renamed Net National Disposable Income. The main NZSNA totals, using 1993 SNA terminology, are therefore linked as follows: Gross National Expenditure plus Exports of goods and services less Imports of goods and services equals Gross Domestic Product plus Net factor receipts from the rest of the world equals Gross National Income (Gross National Product) plus Net other current transfers from the rest of the world equals Gross National Disposable Income less Consumption of fixed capital equals Net National Disposable Income less Final consumption expenditure equals Savings Other transactions Capital Transfers From The Rest Of The World, Net The excess of capital transfers by non-residents to New Zealand residents over the value of similar transfers by residents to non-residents. Capital transfers are unrequited transfers in cash or in kind which are not considered by the recipient as adding to current income, nor by the donor as reducing current income. Examples are unilateral transfers of capital goods, legacies, investment grants, and transfers of migrants' funds. In the NZSNA it has only been possible to separately identify some of these flows since 1984/85, otherwise they have been included in current transfers to/from the rest of the world. Compensation Of Employees Payments of salaries and wages whether in cash or in kind (such as fringe benefits) to employees. Includes contributions paid on employees' behalf to superannuation funds, private pension schemes, the Accident Compensation Corporation, casualty and life insurance schemes, etc. Compensation Of Employees To/From The Rest Of The World In principle, these items cover the compensation residents of one country earn from employment in another where, because their stay is for a period of less than 12 months, they are classed as non-resident. In practice, data available does not permit estimates of these items. Compulsory Fees These are payments made to either central or local government by households for regulatory services, eg passport fees and dog licence fees. The payments are obligatory and unavoidable, and their value bears no relation to the cost of providing the service. Consumption Of Fixed Capital The value of depreciation at ordinary rates allowed for taxation purposes, plus an estimate of the normal rate of accidental damage. No estimates are at present calculated for general government services (production groups 22 and 23) since, historically, the source data has been in the form of cash accounts. For the household sector, consumption of fixed capital represents depreciation on owner-occupied dwellings. Current Transfers From The Rest Of The World, Net See other current transfers to/from the rest of the world. Dividends See property income. Entrepreneurial Income The net current income of unincorporated businesses, plus salaries and wages paid to working proprietors of private companies. In the case of the latter, these payments are regarded to be more in the nature of a proprietorial withdrawal than a wage payment. The unincorporated businesses are those owned and operated by households, either as sole proprietorships or as partnerships. Exports Of Goods And Services All goods and services produced by New Zealand residents and purchased by the rest of the world. Exports of merchandise are valued free-on-board (f.o.b.). Final Consumption Expenditure: 1. Private Households - All outlays on consumer goods and services, including expenditure on durables such as motor vehicles and furniture, payments made by the government on behalf of households, and the imputed rent of owner-occupied dwellings. Households consist of New Zealand resident individuals and families and consumption expenditure relates to their outlays both within New Zealand and overseas. 2. General (Central and Local) Government Services and Private Non-Profit Services to Households - Total current expenditure by these producers less the value of any sales or own account capital formation (that is, the total net current costs incurred in providing the services). Gross Fixed Capital Formation The outlays of producers on durable real assets, such as buildings, motor vehicles, plant and machinery, hydro-electric construction, roading, and improvements to land. In measuring the outlays, sales of similar goods are deducted. Land is excluded from gross fixed capital formation. Included is the value of construction work done by a firm's own employees. The term "gross" indicates that consumption of fixed capital has not been deducted from the value of the outlays. For the household sector gross fixed capital formation consists solely of net capital expenditure on owner-occupied dwellings. Gross Output At Producer's Values: 1. Market Production Groups - The total market value including commodity taxes of all goods and services produced during the year, including stocks of work-in-progress. Included is the production of goods and services for sale in the market, and for capital formation on own account. 2. Non-market Production Groups - These producers may sell a proportion of their output in the market, and such receipts are included in total output. Most of the services produced, however, represent unmarketed output and are valued at cost price. This assumption is necessary because there is no other basis for valuation. In both cases, an adjustment has been made to gross output for goods and services that have been provided to employees free of charge, or at a markedly reduced cost. These goods and services (or fringe benefits) have been revalued at the cost of production and are included in gross output. A similar amount is included in compensation of employees. GST On Production The Goods and Services Tax (GST) was introduced on 1 October 1986 and is imposed on all goods and services supplied in New Zealand, other than exempt supply. Registered suppliers of taxable goods and services pay GST on their intermediate purchases but credit may be claimed for this tax. As a result of this credit-offset mechanism, the final expense of GST levied on the supplies of registered producers is, in general, borne by the domestic consumer. GST is not a cost to businesses unless the business deals in or purchases exempt goods and services, provides employee fringe benefits, or does not register. The NZSNA reflects these valuations. The transactions of registered producers are recorded excluding GST while those of final consumers (including producers of exempt goods and services) are recorded at actual market prices. The potential imbalance between the value of goods and services produced and the value ultimately consumed is removed by including the item "GST on production" in the GDP account. This item produces a measure of the amount of GST included in the valuation of the final demand categories. Import Duties And Other Unallocated Indirect Taxes These indirect taxes are levied on the purchaser of the taxed commodity and not on the seller so they are not recorded in the production accounts as a charge against the value of output. Consequently when GDP is derived by consolidating production accounts, the indirect taxes excluded must be added on. Import duties also appear as part of intermediate and final consumption, and stamp duty on purchases of land and buildings forms part of gross fixed capital formation. Imports Of Goods And Services All goods and services produced by the rest of the world and purchased by New Zealand residents. Imports of merchandise are valued at cost, including insurance and freight (c.i.f.). Imputed interest See property income. Income Tax In the Household Income and Outlay Account (Table 4.1), this item relates to income tax paid by resident households. It is the cash amount received by the Inland Revenue Department during that year. No adjustments have been made to allow for timing differences with other items in the account. Increase In Stocks In the tables, this transaction is termed ‘Value of the Physical Increase in Stocks’ to distinguish it from the book value changes recorded in most business accounting records. It is equivalent to the book value change less a stock valuation adjustment which removes the capital gains and losses that may arise through holding stocks purchased at prices either higher or lower than those ruling during the period of account. The value of the physical increase in stocks effectively values the change in stocks at the average prices for the period. Indirect Taxes Taxes which are assessed on producers in respect of the production, sale, purchase and use of goods and services, and which add to the market prices of those goods and services. Includes sales tax, local authority rates, import and excise duties, fringe benefits tax, and also registration fees such as motor vehicle registration, which are paid by producers. In the consolidated accounts of the nation this figure includes goods and services tax. Interest received/paid See property income. Intermediate Consumption The value of non-durable goods and services used in production. Valuation is at purchaser's values. Net Acquisition Of Foreign Financial Assets The change in actual claims by New Zealanders on non-residents. It relates to the purchase, less the sale, of financial claims, such as those described below for the net incurrence of foreign liabilities. It also includes changes in New Zealand's holdings of special drawing rights in its reserve position at the International Monetary Fund, and in the assets of the New Zealand banking system. Net Incurrence Of Foreign Liabilities The change in actual indebtedness of New Zealanders to non-residents. It relates to the issue, less the redemption, of financial claims, such as currency and transferable deposits, bonds, corporate equities, loans, and long-term trade credits. Changes in the holdings of paid-up capital of companies, and changes in inter-company indebtedness are also included. Net Capital Taxes (Household sector only) This measures death duties paid on deceased persons' estates. Net Capital Transfers Received (Household sector only) This includes migrants' transfers which have been allocated to households. The value for all other capital transfers received is equal to the claims paid by the Earthquake and War Damages Commission. Net Lending (Household sector only) This represents the excess of households' net acquisition of financial assets over their net incurrence of liabilities. Net Lending To The Rest Of The World The excess of New Zealand's net acquisition of financial assets over its net incurrence of liabilities, recorded in the National Capital Finance Account (Table 1.3). Net Purchases Of Land (Household sector only) This measures purchases of undeveloped (vacant) land less sales. Nominal Industry (Bank Service Charge) A large proportion of the income of banks and financial institutions consists of an excess of interest and other property income over payments rather than from direct charges for services. As NZSNA records this income in the income and outlay accounts rather than as an item of gross output in the production account, operating surplus would be negative. To overcome this a service charge is imputed, equal to net interest and other property income. Conceptual problems of how to allocate the charge to the users of services provided by financial institutions, (such as whether to allocate on the basis of the number or value of loan transactions), are overcome by creating a nominal industry which pays the total charge. The nominal industry has no gross output and makes a negative contribution to GDP. Its negative operating surplus counteracts the increased operating surplus of all other industries which are not recorded as paying any of the imputed bank service charge. Operating Surplus This is a residual item, being gross output at producer's values less the sum of intermediate consumption, compensation of employees, consumption of fixed capital, and indirect taxes net of subsidies. It is approximately equal to accounting profit before the deduction of direct taxes, dividends, interest paid and bad debts, and before the addition of interest and dividends received. For Owner-Occupied Dwellings, the item represents the surplus, inclusive of interest paid, from the notional activity of the operation of owner-occupied dwellings. Other Current Transfers These include all transfers of income not specifically included in other categories of the household income and outlay account. The transfers are made from current income of households and add to the current income of recipients for such purposes as consumption or production expenditure, eg gifts, net casualty insurance premiums and insurance claims. Other Current Transfers To/From The Rest Of The World Conceptually, these items cover all current transfers other than property and entrepreneurial income. However, in practice, it has not been possible to identify all these transfers separately, and the figures are deficient in two respects. First, not all current transfers can be identified. Prior to 1989, those associated with insurance transactions were omitted, since all insurance flows are recorded as either exports or imports of services. Second, it has proved difficult to distinguish between current and capital transfers to the rest of the world, and in the NZSNA some of these transactions are treated as current. Producer's Value The equivalent of purchaser’s values (see below) reduced by the trade and transport margins for delivering the items from the producers to the purchasers. This effectively gives the market sales value for the producer at the factory door, farm gate, mine head, etc. For services, the producer’s value is the same as the purchaser’s value since services are produced and consumed at the same time. Production Groups Accounting units of production grouped on the basis of their predominant activity. There are four main categories. Industries (groups 1 to 21) dispose of most of their output in the market. The other three categories do not sell all of their output on the market. They are classified as producers of government services (groups 22, 23), producers of private non-profit services to households (group 24) and domestic services of households (group 25). Property Income - as income Property income refers to transfers of income accruing to the owners of financial assets, intangible assets such as patents, copyrights and concessions, and mineral rights. This income is mainly in the form of interest, dividends and royalties. In the household income and outlay account, interest received is split between "actual" and "imputed". Imputed interest consists of the earnings of life insurance and pension funds which are imputed to households who, following the UNSNA guidelines, are considered to be the owners of the fund's assets. This imputed interest flow is then reinvested, via savings, in householders' financial assets, namely "net equity in life insurance reserves and pension funds". - as outlays Outlays of property income include interest, dividends and royalties paid. In the Household Income and Outlay Account, interest paid is split between consumer debt interest and other interest. Consumer debt interest consists of interest paid on hire purchase, credit advances, etc. Other interest relates to interest paid through home ownership, such as mortgage interest, and includes the value of interest concessions. Property And Entrepreneurial Income To/From The Rest Of The World The property income component of these items is defined above (excluding any imputed interest which is entirely a resident-to-resident flow). The entrepreneurial income refers to the actual withdrawals of income from enterprises operating overseas, such as overseas branches of New Zealand companies. Retained earnings are excluded from these flows. Purchase Of Intangible Assets From The Rest Of The World, Net The value of purchases by residents from non-residents of intangible assets, less sales of such assets by residents to non-residents. Examples of these types of assets are mineral rights, fishing quotas, patents, copyrights, and trademarks. In the NZSNA, flows associated with this item are not distinguishable in the source data and consequently are included in exports/imports of goods and services. Purchaser's Value The costs in the market of goods and services on the delivery to the purchaser. For services, the purchaser’s value is the same as the producer’s value since services are produced and consumed at the same time. Savings The residual item in both the national and household income and outlay accounts after all current receipts and disbursements have been accounted for. Note, however, that savings in the National Income and Outlay Account is net of consumption of fixed capital, whereas because operating surplus from the ownership of owner-occupied homes is measured gross in the Household Income and Outlay Account, savings in this account is gross of consumption of fixed capital. Sector Of Ownership Ownership of production in the New Zealand economy is classified to central government, local government or private (including overseas). As a general rule, fifty percent or more of the share holding or control is necessary. Social Assistance Grants Includes all monetary benefits paid to individuals and households by public authorities, private non-profit organisations and private enterprises, eg unemployment benefits, national superannuation and education scholarships. Also includes grants paid directly to providers of services on behalf of households, eg pharmaceutical benefits and free medical care for under-six year-olds. Social Security Benefits And Contributions These consist of receipts from, and contributions to, the Accident Compensation Corporation (ACC) which is classified as a social security fund. Statistical Discrepancy In the NZSNA, the items making up GDP and Expenditure on GDP are estimated independently, using diverse data sources. The combination of survey and other measurement and timing errors in the various components results in a difference between the estimates, known as the statistical discrepancy. In the past the statistical discrepancy has been included on the expenditure side of the consolidated GDP account (Table 1.2). This practice was the result of convention and did not imply that one side of this account was more accurate than the other. The presentation of the statistical discrepancy has been reorganised to more clearly illustrate the independence of the two estimates of GDP and the difference that exists between them. Expenditure on GDP is now calculated as the sum of expenditure components. The discrepancy is now outside the GDP and expenditure on GDP calculations. This format more clearly illustrates the true nature of the relationship between the two estimates. It also has the advantage of removing any distortion associated with the previous practice of including the discrepancy within the expenditure on GDP series. The statistical discrepancy has a counter entry in the National Capital Finance Account (Table 1.4). Subsidies Grants made by Government to market-oriented producers who regard the transfers as an addition to income from current production. These grants include payments to ensure a guaranteed price, or to enable market prices of goods and services to be held below the cost of production. Transfers made by local authorities out of rates receipts to finance the losses of their trading departments, and deliberately incurred losses of government trading organisations are also included. Surplus Of The Nation On Current Transactions The excess in the External Transactions Account of current receipts over current disbursements. Taxes On The Use Of Goods These are levies, designed primarily to raise revenue, made by Government on the possession or use of goods by households. They include motor vehicle registration and licence fees. Type Of Capital Good Major groupings of fixed assets, eg residential buildings, transport equipment, etc, as defined in the department's manual, Capital Formation: Definition and Classification in Integrated Economic Statistics of New Zealand (December 1980). Value Added The amount added to goods and services by the contributions of capital and labour (ie the value of output after the cost of bought-in materials and services has been deducted).
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