Eurostat Task Force on Land and other non- financial assets Progress report and request for AEG advice Hans Wouters ESTAT, unit C.2

Eurostat Content 1.Background 2.Content compilation guide 3.First discussion selected topics 4.Valuation government owned land 5.Envisaged time schedule 6.Requests to Advisory Expert Group Item 7 AEG May '13

Eurostat 1. Background History: October 2011: OECD workshop on the implementation of the 2008 SNA November 2011: CWPS and NAWG discussions on table 26 Agreement to establish TF on Land and other non-financial assets 18 April 2012: agreement in NAWG establishment TF on Land and on draft mandate First and second TF meeting in July and December 2012 Item 7 AEG May '13

Eurostat 1. Background Composition and institutional arrangements: Joint OECD-ESTAT TF 20 members plus ESTAT/OECD staff Of which 11 EU members, 8 (other) OECD countries, ECB Chaired by ESTAT and OECD 2 meetings a year In addition: electronic discussions Start July 2012, finalization December 2014 Item 7 AEG May '13

Eurostat 2. Content compilation guide Introduction (preface, acknowledgements, summary) CH 1: Why do we need this manual? - OECD CH 2: Concepts and definitions - ESTAT CH 3: Classification of land – DE, AT, MX, NL, ES CH 4: Data sources – OECD CH : Direct estimates of land – DE, KR, FI CH 5.3 Indirect estimates of land – DK, IT, SI, CA CH 5.4 Depreciation aspects – US, KR, NL, CZ CH 6.1 Separation land and structures – DK, IT, SI, CA CH 6.2 Estimating land improvements – ESTAT Item 7 AEG May '13

Eurostat 2. Content compilation guide CH 6.3 Treatment of government owned land – NL CH 6.4 Value, price and volume changes – OECD CH 6.5 Sectorisation and cross classification – CA, UK CH 7.1 Housing bubbles – ECB CH 7.2 Valuation historical monuments – CZ CH 7.4 Dwellings as storage of wealth – MX CH 8: Country studies (using fixed formats: sources, methods, calculations, output) Overview of references, appendices Item 7 AEG May '13

Eurostat 3. First discussion selected topics Classification of land Proposal for breakdown land into subcategories Separation of land/structures Discussion on two approaches: residual approach and hedonic approach Questionnaire on service lives Focus on service lives of 'land related assets' Capturing housing bubbles Discussion on housing and households characteristics and housing market indicators Item 7 AEG May '13

Eurostat 4. Valuation government owned land Question: should government owned land be valued? Yes… Government can sell the land Government spends money on land with public function No… Value already included in adjacent land – double counting No real market value Measurement problems Item 7 AEG May '13

Eurostat 4. Valuation government owned land Questions: How does the AEG think about these pros and cons? Are there other pros or cons that should be considered? What is the final opinion of the AEG on the question wheter government owned land should be valued? Item 7 AEG May '13

Eurostat 5. Envisaged time schedule Item 7 AEG May '13 WhenWhat July 2012 (1 st TF meeting) Preliminary decisions on mandate (scope, organisation, output of TF) Establishment of 4 subgroups December 2012 (2 nd TF meeting) Proposals of 4 subgroups concerning the content of their studies Decision on content compilation guide Establishment of additional subgroups June 2013 (3 rd TF meeting) First drafts (made by subgroups) of all chapters/subjects addressed in compilation guide Presentation of analysed results questionnaire on service lives

Eurostat 5. Envisaged time schedule Item 7 AEG May '13 WhenWhat December 2013 (4 th TF meeting) Revised drafts (made by subgroups) of all chapters/subjects addressed in compilation guide July 2014 (5 th TF meeting) Final drafts (made by subgroups) of all subjects addressed in compilation guide October/Novem ber 2014 Discussion/approval of final draft compilation guide by National Accounts Working Groups of OECD and Eurostat Discussion/decision about possible continuation of TF work for other financial assets December 2014 (6 th TF meeting) Content and editorial work compilation guide finalised 2015?Continuation of TF work for other non-financial assets?

Eurostat 6. Requests to Advisory Expert Group What is the opinion of the AEG concerning the valuation of government owned land? Does the AEG have comments regarding the proposed content of the compilation guide? Does the AEG have comments concerning any other issue that has been or should be addressed by the TF on Land? Item 7 AEG May '13

Eurostat Task Force on Land and other non- financial assets Progress report and request for AEG advice Hans Wouters ESTAT, unit C.2