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1993 SNA Update Information - AEG recommendations for issue:
Private/public/government sectors delineation (sectorization boundaries)

Issue description
Issue description in [English] | [French] | [Russian] | [Spanish]
According to the 1993 SNA, two factors determine whether a corporation or non-profit institution is controlled by government and thus falls into the public sector. One factor is the degree of control exercised by government. Concern has been expressed about the “mainly financed” phrase cited in respect of non-profit institutions. The determination of control in respect of special purpose vehicles (SPVs), notably created in the context of public private partnerships (PPPs) or securitization, is not always clear cut. The second factor is about “economically significant prices.” Concern has also been expressed over possible ambiguity in this concept. Is it possible to give greater content to the description without going so far as to prescribe a fixed proportion of costs to be covered by sales?
AEG recommendations
Number of AEG recommendations for selected issue:2
  Corresponding meetingDate postedRecommendation
 Jan-Feb 20064/7/2006(a) The AEG agreed. The description of the decision tree, which relates to units and not production, should be set out in the chapter on government and the public sector. Further elaboration is required for quasi-corporations.
(b) The AEG agreed that the list of indicators is useful, but emphasised that they should be used in conjunction with each other in reaching a decision on control, rather than any one of them necessarily being definitive in its own right. The AEG felt that the text set out in the TFHPSA paper was too long to be incorporated directly into the SNA.
(c) The AEG agreed with the guidance set out to determine what constitutes “economically significant prices”. The AEG felt the SNA should avoid being prescriptive in relation to the use of a specific threshold (such as the ESA95 50% rule).
 July 20059/12/2005Following detailed discussions on the above recommendations and a broad level of support, the AEG decided that there are still a number of questions requiring further clarification before final decisions can be made. Therefore, the AEG chair requested members to send detailed comments to Lucie Laliberté and to Jean-Pierre Dupuis by the end of August. The authors should take into account these comments in conjunction with the comments made during the meeting to produce a revised version of the paper for e-discussion with the aim of finalising this question at the next AEG meeting.
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