Business compliance

 Reduce the time and frequency of participation by business in surveys by working with other government organisations to:

• collaborate and share information; and
• synchronise information gathering so that business has to provide information only once.

Statistics New Zealand (SNZ) has continued to expand the use of administrative data, particularly tax data, to supplement or substitute for existing direct surveys. GST returns have been introduced as a component in the redesigned Wholesale Trade Survey thereby reducing the number of survey respondents by over 600 each quarter (a 36% reduction). In addition the use of GST returns in the Quarterly Survey of Manufacturing allowed the number of businesses surveyed to be reduced by 450 (a 28% reduction). A similar approach is planned for the re-developed Retail Trade Survey in August 2003. With the re-design it is anticipated that there will be a substantial percentage reduction in businesses surveyed.

Changes proposed for the Annual Business Frame Updating Survey in February 2004 will make use of tax data. As a consequence, 10,000 fewer firms will be surveyed each year. The use of tax data is expected to reduce the number of businesses surveyed for the Monthly Business Frame Update Survey by approximately 2000 per month (a 40% reduction).

As noted in Striking the Balance, SNZ is unable to fully implement the Panel's recommendation on sharing individual's survey information among government organisations. The Statistics Act 1975 provides for the protection of the confidentiality of data supplied by respondents to SNZ surveys. Therefore individual respondent data can only be shared with other government agencies where those respondents have given their express consent.

Express consent was sought from respondents to the Agriculture Census 2002 to allow their contact and production details to be made available to AgriQuality, so that its database could be updated. Only 60% of respondents agreed to their information being shared with AgriQuality.

Good progress has been made on making use of tax data for new statistical series, notably Injury Statistics and the Linked Employer/Employee Database.

 Increase early and ongoing consultation with business over survey design.

The recommendations relating to the communication with business in the development of surveys, are being progressed as part of SNZ's ongoing programme of re-developing its sample sub-annual financial surveys.

A key part of this programme is the consultation with users (internal and external) as well as business. Consultation with business has taken a number of forms:

• Consultation with relevant business representative organisations (e.g. Business NZ)
• Consultation with individual business as part of questionnaire development and testing
• Provision of re-design information on the web, and calling for submissions.

During consultation for the re-design of the Wholesale Trade Survey, business respondents indicated that answering some proposed questions would be difficult. As a result, the number of questions asked dropped from seven to three.

 Use information for surveys that is easily obtained from standard, good practice business records.

SNZ has been investigating how international accounting developments may enable SNZ to use standard business accounting records for statistical purposes. The main work of evaluating the data extraction and identification process, known as XBRL, is at an early stage. Indications are that it could, in time, produce significant compliance cost reductions.

SNZ attempts to align questions in financial surveys to maximise the use of standard business reporting. For instance, the quarterly questionnaire developed for the Quarterly Manufacturing Survey rationalised the range data items collected from respondents. The questions asked now are conceptually simple and the questionnaire was tested with respondents to ensure their ability to provide the information requested.

 Develop a timeline for implementing e-technology solutions.

Publish plans for development of a secure response Internet system.

Improve information flows and consultation using web-based technology.

Speed up the process of ensuring secure transfer of data and provide the means for business to supply information via business records with no liability of security falling on the respondent.

Provide a help-line to assist with the transition to electronic transmission.

The Panel recommended that SNZ make greater use of e-technology for collecting data from business respondents. In 2001/2002 SNZ commenced an e-technology data collection project to address the Panel's recommendations 91-95.

Initially SNZ addressed recommendation 94 through the introduction of a new secure response Internet system facility, 'Statsgate', in February 2002. This provides a convenient, internet-based method for respondents to submit data using standard software. 'Statsgate' affords security during data transfer by Secure Socket Layers (SSL). SSL is a standard internet protocol for encrypting data. Access to the system is user and password protected, with SNZ maintaining responsibility for password maintenance.

As part of the introduction of 'Statsgate', a help-line was provided to assist with transition to electronic data transmission. This facility, in accordance with recommendation 95, continues to be offered to respondents as they convert to electronic data transmission. SNZ, in lieu of publishing plans for the development of the secure response Internet system (recommendation 92), contacted individual respondents to explain the benefits of using 'Statsgate'. Thus, SNZ's communication with respondents matched its ability to provide this service.

Efforts have been primarily focussed on large businesses that have the technological capacity to exchange data electronically. To date, approximately 320 businesses have chosen to make use of 'Statsgate'. SNZ is currently contacting respondents in the Quarterly Employment and Monthly Retail Trade Survey to determine whether they wish to supply data via 'Statsgate'.

Moving respondents into using 'Statsgate' has turned out to be resource intensive. SNZ took the view that there was little point in advertising a facility and risk not being able to meet the demand to use it. SNZ has looked to steadily expand the use of the facility with existing respondents as resources have permitted.

Recommendation 91 has not been implemented as the substantial investment required to progress the e-technology projects did not eventuate. It was inappropriate to publish a timeline for a project that was unlikely to proceed within existing resources.

 Develop better information programmes and improved liaison with business.

The focus of SNZ's work has been to communicate with businesses at the time when the communication is most useful to them. Consequently, SNZ has concentrated on providing telephone assistance in relation to individual concerns rather than general written material. Feedback has suggested that businesses have appreciated this individual contact.

For newly introduced surveys, SNZ has increased its respondent communication. In the case of the Agriculture Census 2002 for instance, considerable advance publicity through farming media, attendance at the New Zealand National Agricultural Fieldays at Mystery Creek, and radio publicity helped inform the farming community about the need and purpose of the Census.

During the operation of the Agriculture Census 2002, SNZ operated an extended hours call facility. This service allowed farmers to contact SNZ outside standard business hours. Feedback from farmers indicated that they appreciated this service which will be offered again for Agriculture Survey 2003.

SNZ has also made special efforts to contact respondents who are selected into new or existing surveys. This is usually by way of an introductory telephone conversation. For the recently redeveloped Wholesale Quarterly Survey and the Quarterly Manufacturing Survey all new respondents were contacted by telephone and thank you letters were sent to business being taken out of the sample.

 Provide businesses before a survey is sent out with such details as:

• how long they are expected to remain in the survey sample;
• what information will be required of them; and
• how the information will be used.

SNZ's practice is to provide information to businesses about their statistical reporting obligations. SNZ provides information on:

• How long businesses are expected to remain in the survey sample where it is practical to do so. The normal time in a survey is five to seven years. With recent survey re-designs for the Quarterly Wholesale, Manufacturing and Employment Surveys, SNZ advised how long respondents would remain in the sample. SNZ, however, cannot always guarantee the exact length of time any respondent will be expected to remain in a specific survey. Large or unusual businesses may contribute so significantly that it is not possible to remove them from some surveys
• What information will be required from respondents. Before the survey commences, SNZ provides advice to respondents that outlines the content and timetable for the survey cycle; and
• How the information will be used. A series of covering leaflets explain who will make use of the survey results and for what purpose. These leaflets also stress that SNZ only publishes aggregate results, thus protecting the confidentiality of data from individual businesses.

 Develop the capability to provide respondents, on a confidential basis, with individualised information.

SNZ acknowledged in Striking the Balance that there was potential to expand the provision of individualised feedback of results to respondents. To do so, however, will present some very significant challenges in managing confidentiality concerns. As noted in the report, SNZ considers implementing this recommendation has a lower priority than other recommendations and thus may introduce it progressively in line with systems/survey upgrades.

 Provide incentives to those businesses that are required to participate in surveys.

To date, SNZ has not progressed the Panel's recommendation of offering incentives to those businesses that are required to participate in surveys. SNZ's consideration of these issues has highlighted that:

• The only incentives SNZ has to offer are discounts on information products and services.
• Businesses in general, and SMEs in particular, have not been very extensive users of these products and services over time.
• For the products SMEs tend to prefer, SNZ's dissemination strategy has been to increase the range of statistical outputs available freely through its website.

This approach is consistent with the e-government initiatives of improved free public access for all New Zealanders. For example, new developments for Census 2001 introduced a table builder facility that allows users to overlay and manipulate data for their own business purposes. These developments give all businesses an opportunity to readily access information relevant to them, and use it in new and innovative ways.