Revisions to industrial production figures
O'Kennedy questioned why later industrial production figures differed from the provisional series and whether the revisions undermined confidence in the original statistics. Barrett said the later figures used fuller information, disclaimed responsibility for the pattern, and offered to arrange a fuller explanation; O'Kennedy urged greater accuracy and warned that provisional figures could mislead.
asked the Taoiseach if he will explain the lack of correlation between the figures for industrial production for 1980 as published in February 1981 (new series detailed industry figures from July 1975 to September 1980) and those published in June 1983; whether such wholesale revisions are a regular occurrence; and, if so, the value that can be attached to the original statistics.
Comment on this
(Dún Laoghaire): It is presumed that, in referring to figures published in June 1983, the Deputy has in mind the statistical release “Industrial Production Index, March 1983” dated 10 June 1983 which contained the latest indices for the volume of industrial production. This release included a quarterly series retrospective to 1980 for manufacturing and for transportable goods industries.
These 1980 figures are based on fuller information than the estimates for the first three quarters contained in the release of February 1981 to which the Deputy refers, but the extent of the revisions are relatively slight as the following index numbers (base 1973 = 100) for transportable goods industries show:
Minor revisions of this order of magnitude are a normal feature when results of a short-term sample inquiry are adjusted to take account of results of full-scale censuses. They do not in any way invalidate the usefulnes of the initial results in indicating trends. I agree with Deputy O'Kennedy that the publication and the way in which it is made out may mislead people somewhat and I am assuming the question refers to the information I have given here.
Comment on this
The Minister is right in his assumption but will he acknowledge that the figures for manufacturing industry generally were not quoted by him in his reply? There is a downward trend in the third and fourth quarters of 1981 from 6.3 and 7.3 per cent as initially indicated in the provisional figures to 5.6 per cent and 5.8 per cent. That has been the pattern over the last number of years. The final figures always show a drop in the actual level of industrial production as distinct from the provisional figures and would the Minister try to ensure — it is a matter of statistical accuracy — that the original figures will be more precise and accurate? In the last few years, and particularly now, when the final figures come in they show a downward adjustment of up to 2 per cent. That is quite significant in many cases. That is the first point. The second point is in view of the fact there is in the final analysis perhaps a two year lacuna showing a downward revision, ultimately of 2 per cent, would be advise his colleagues, particularly the Taoiseach and the Minister for Finance, against relying on the provisional figures, such as these March figures, when they come out in order to imply there is a big boost in industrial production, the more so since the percentage for January last year, when we almost had a freeze-up, shows the percentage is totally misleading when the final figures come out later?
Comment on this
As the man in charge of statistics would the Minister bring that to their attention?
Comment on this
(Dún Laoghaire): If the Deputy wants a fuller explanation I will arrange to get it for him.