office of national statistics

Summary

The request sought documents regarding plans to rename the Economic Affairs Division and establish an independent Office of National Statistics. The authority disclosed a Council of Ministers paper rejecting the recommendation for full independence, citing the division's dual role in policy and statistics, while noting plans to improve perceived independence through publication schedules and a code of conduct.

Key Facts

• The Economic Affairs Division was moved from Treasury in 2014 to bring statistics closer to the center of government.
• The recommendation to make the Economic Affairs Division sit independently of government departments was rejected.
• The authority noted that the Statistics Jersey model is not equivalent to the UK Office for National Statistics.
• The size of the Isle of Man makes creating a fully arm's length body difficult as funding would still come from the government.
• Actions to improve the perception of independence include a 12-month publication schedule and a code of conduct for official statistics.

Data Disclosed

• 2014
• 21 November 2019
• December 2019
• 12 month
• 1992
• Paper No. 19/356

Original Request

What internal meeting discussion points, email threads, filenotes, reports, strategic and operatoonal plans, estimated or actual plans, etc and external key documents if not listed in any document bibliography have been considered to date to (a) rename the outdated Economic Affairs Division and (b) restructure the national statistics function into an arms length independent corporate Office of National Statistics in common with the structure in other leading jurisdictions and in compliance with the Fundamental Principles of Official Statistics declaration by the United Nations in 1992 and more recent declarations by the IMF, World Bank, European Commission, etc. and with the UK Ministry of Justice expectation re international standards and ultimate responsibility re good governance and (c) engage with relevant organisations such as the UK ONS, the UK GDS (world class data science CPD) and the United Nations Association and professional bodies to support evidence based policy research and development, policy analysis and the scrutiny process in parliament and an open government policy with real time normalised open data?

Data Tables (34)

Full Response Text

Confidential Page 1 of 7 Council of Ministers Paper No. 19/356 Paper for Council of Ministers Routine Business Department/Board/Office Cabinet Office Chief Officer Will Greenhow Responsible Officer Adam Smith Cut ups to be sent to As above Date of Council Meeting 21 November 2019 Title Council of Ministers response to the Select Committee on Poverty Report Collective Responsibility: (Mandatory field, please choose an option) Part of the Programme for Government Which of the 3 Government Strategic Objectives does this proposal comply with? Inclusive, Caring Society Which of the Council of Ministers Sub- Committees has considered this proposal? Social Policy & Children The proposal relates only to the Department’s core or statutory responsibilities
Not Applicable Has appropriate internal and/or public consultation taken place? Internal Are there any resource/personnel implications? Yes Has Treasury concurrence been obtained where necessary? Not applicable Is the Department acting within its legal powers or has legal advice been obtained? (If yes confirm and provide evidence within the paper) Not applicable Are there any inter-Departmental implications? Yes If yes, which other Departments are involved? Treasury, DHA, DESC, DHSC, DOI, CO What is the intention of this paper? Seek Approval Primary Legislation: Has Council Legislation Subcommittee approved the inclusion of the proposed Bill on the Legislative Programme. If Yes please give decision date:
Not Applicable Major Policy Proposal/Primary Legislation:
Have you completed an Impact Assessment? If yes please attach a copy as an Appendix to the paper. Not Applicable Have you taken appropriate Corporate Communications Service advice?
Not applicable Does this initiative/announcement have a communications plan? Not applicable Purpose of the Paper: To seek Council of Minister’s approval to lay the Council of Ministers response to the Select Committee on Poverty report at the December 2019 sitting of Tynwald. Confidential Page 3 of 7

Confidential Page 4 of 7

3.6

Confidential Page 5 of 7

Recommendation 6 – Economic Affairs Division should sit independently of Government departments 3.22 Whilst Economic Affairs produces a wide range of statistics regarding the Isle of Man, that is not the only purpose that it serves, with input into policy development as well. Economic Affairs was moved from Treasury in 2014 as part of the ‘Modernising Ministerial Government’ proposals for the purposes of bringing statistics and economic data closer to the centre of Government to improve decision making. Confidential Page 6 of 7 3.23 The Committee report references the Statistics Jersey model where there is a law in place to make the Statistics Jersey independent of Government. However functionally the division is still part of the Jersey Government and reports directly to the Chief Minister. It does place certain protections in law regarding how the division and the Island’s Chief Statistician work, but it does not place it on the same basis as the Office for National Statistics in the UK. 3.24 The size of the Isle of Man equally does not facilitate this easily, as whilst it would be possible to make Economic Affairs an arm’s length body or another structure, it’s funding would still come from Government and therefore be seen as Government. 3.25 Whilst it is proposed to reject this recommendation, there are some actions that can be taken, and are referenced in the commentary, to improve the perception of independence, including a 12 month publication schedule for all known statistical releases, so that reports are not being seen to be released when it is politically suitable to do so. A code of conduct for official statistics could also assist in this by making it clear how data is produce, and what, if any, political approval process it is subject to.

Confidential

1. Rejected: That the Economic Affairs Division of the Cabinet Office sits independently from any Government Department.

Council of Ministers

Response to the Select Committee on Poverty – First Report – Poverty Definitions and Data

To be laid before December 2019 Tynwald

December 2019 GD 2019/XX 1

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To The Hon Stephen Rodan MLC, President of Tynwald, and the Hon Council
and Keys in Tynwald assembled Foreword by the Minister for Policy and Reform The impact of poverty on a person, a family, and on society more generally cannot be underestimated. It is well established that poverty has a wide range of impacts - on health, both physical and mental, on education, on employment and on social inclusion. Moreover, the effects of poverty can continue well after an individual or family is no longer poor and therefore it is important to not just focus on those above or below a set threshold or measure but also on those who have been poor. That is why poverty and deprivation in the Island were issues that this Government recognised as needing to be addressed and actions were included in the Programme for Government at the beginning of 2017, and have been refreshed since, most notably with the Cold, Hunger and Homelessness Action Plan, September 2019. This action plan also endorses the actions identified by the Select Committee on Accommodation for Vulnerable Young People 2018-2019, supports the Housing Strategy work in progress within the Department of Infrastructure, and support for other initiatives like the Graih Emergency Night Shelter pilot. A Connected investigation was also conducted by the Director of Public Health, in her 2019 annual report - which explored health and socio-economic inequalities on the Isle of Man - and the recently published 2018/19 Household and Income Expenditure Survey. With this background of course Council of Ministers acknowledges the Select Committee on Poverty’s work, and welcomes its first report on Poverty Definitions and Data which it has considered in detail and notes Committee’s recognition of the complex nature of trying to define and measure poverty. This response to the Report was prepared for the Social Policy and Children’s Committee, a sub-committee of the Council of Ministers, given the cross Government nature of poverty and the implications of the recommendations contained within the report. The Council of Ministers supports two of the recommendations subject to caveats, proposes amendments to four more and rejects one of them. One recommendation is parliamentary. Whilst the work required to meet the commitments in the report’s recommendations will begin as soon as possible, it must be recognised that it will take time to gather, analyse and act upon the results. This, however, does not detract from the efforts of those in Government, the Third Sector and the public to help to alleviate those who find themselves struggling by, particularly those without permanent shelter.

Hon C Thomas MHK Minister for Policy and Reform

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Part 1 – General Response to the Select Committee on Poverty Report Whilst there may not be an official single measure of poverty on the Isle of Man, the Council of Minister’s recognises the impact that poverty can have on individuals, families and society as a whole in the Programme for Government and – consequently - has contributed to the calculation of the minimum wage, social security and pension levels and most recently minimum income standards for different types of households. Standard domains of deprivation were also investigated in 2013/14, and data was published as part of the Isle of Man Government Joint Strategic Needs Assessment 2014, and fuel poverty has also been estimated. It should also be noted that Cabinet Office will be undertaking interviewer-led research with individuals and families at risk of, or suffering from, poverty next year. But action matters most, and work has been on going throughout Government to achieve one of the key outcomes in the Programme for Government that ‘We are tackling the inequalities in our Island society’, with the principle policy statement to ‘…ensure our welfare system is providing better defined and more appropriate support’. Many parts of Government assist people that might be experiencing poverty directly, principally the social security system, but also other areas like public sector housing and free school meals. Other parts of Government are also involved in addressing both the circumstances that can cause poverty (such as debt counselling and the minimum and living wages), or the consequences of poverty, through the provision of health and social care and mental health services. Council of Ministers is considering developing an anti-poverty strategy, as outlined in the Cold Hunger and Homelessness Action Plan 2019. The Social Metrics Commission (SMC) acknowledges that its measure of poverty is not intended to be prescriptive and is in fact a framework that can be adapted by different countries to include costs or circumstances that are relevant to them. It is important then that the Isle of Man takes the opportunity to decide what, if any, other factors ought to be included within its measures of poverty.
This framework would combine well with the work that is being undertaken across Government to tackle the root causes of poverty and is line with the Public Health Directorate’s report about establishing a range of data in relation to deprivation and its impact upon health and wellbeing.
Developing policy requires an evidence base, and the Isle of Man, like other small nations or areas, presents a challenge with the relatively small number of people, households or companies to survey and a greater risk of survey fatigue. This also means that many surveys often have to have a greater number of purposes so that the best use is made of those that do take part in the surveys.
The Household Income and Expenditure Survey (HIES) is a prime example of this with its links to the Final Expenditure Revenue Sharing Agreement (FERSA) with the UK, which determines the Island’s share of VAT and shared duties. This process is reviewed every 5 years, on the basis of new data collected from survey and administrative data. Addressing poverty requires that Government work effectively in tackling both the causes and the consequences of poverty, which can often be long term. Rather than a Department, the Council of Minister’s Social Policy and Children’s Sub-Committee is best placed to lead 4

and co-ordinate in this area. This would bring together all of the policy options available across several departments, from social security in Treasury, Education, Home Affairs and Health and Social Care. There are a number of other organisations which work with, but independently of, Government to address poverty, and it is important that Government works with them all to come up with the best responses.
These organisations can be better placed than Government to respond, as they are often freer to act in ways that Government would not be able to. Whilst Graih is one of the main organisations that is active in this area, especially with the most vulnerable who may not have any shelter, there are others and it is important that they are also included in the process.
The final recommendation is a matter for Tynwald i.e. Tynwald itself needs to decide how it wishes to scrutinise how Government is measuring poverty and Council of Minster’s welcomes scrutiny from wherever.

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Part 2 – Specific Responses to the Select Committee on Poverty’s Recommendations The Select Committee on Poverty’s First Report – Poverty Definitions and Data made a number of recommendations, the Council of Ministers’ response to which, together with associated commentary, is set out below: Recommendation 1 That the Isle of Man Government adopts the Social Metrics Commission’s new measure of poverty for the UK for the purpose of measuring the extent of poverty in the Isle of Man.

Commentary The Director for Public Health’s Annual Report 2019 focuses on health and social inequalities, of which poverty is an important aspect.

The Council of Minister’s recognises that the impact of poverty is far reaching but also that is important to measure it in a way which is appropriate for a smaller country.

As the Annual Report highlights, designing and collecting all of the data that is required will take a long term commitment from many across Government and beyond, especially the Third Sector.

The Council of Minister’s is therefore committing to some of the recommendations in the Director for Public Health’s Annual Report 2019 about considering:  Working with Public Health England and the Local Government Association to keep up to date with the progress of work to develop a better understanding of deprivation in rural areas;
 Working with organisations such as the Health Equity Institute (to participate in networks of nations and cities which are applying the Marmot principles as a framework for policy and action), or the Commission for Social Metrics to develop measures of poverty that are most meaningful for our context;
 Working with the Crown Dependencies of Jersey and Guernsey to share capacity and improve understanding of the specific context of small nation islands. The Council of Ministers also notes the first calculation of a multiple index of deprivation in the Isle of Man in 2013/14, the use of such an analytical framework in Guernsey already, the work of the Office of National Statistics UK, and the slightly different frameworks used in Scotland and Wales. As Mr Oakley from Social Metric Commission stated, its measure is about “…a framework rather than a set of strict rules about how you measure poverty, is actually different things in different countries might be measured in different ways” and therefore it is important that any measure is adapted to the Isle of Man context. 6

Specifically, Council of Minister’s is committing to have developed measures of poverty by December 2020, led by the Public Health Directorate, working closely with Economic Affairs Division. Response Recommendation amended to:

That the Isle of Man Government develop a framework for the measurement of poverty, working with organisations such as the Social Metrics Commission and the Health Equity Institute to develop a

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