Statistical Terms Glossary

Corporation C is said to be a subsidiary of corporation B when:

(a) Either corporation B controls more than half of the shareholders' voting power in corporation C; or

(b) Corporation B is a shareholder in corporation C with the right to appoint or remove a majority of the directors of corporation C.

Corporation B is said to be a subsidiary of corporation A when either:

(a) corporation A controls more than half of the shareholders’ voting power in corporation B; or

(b) corporation A is a shareholder in corporation B with the right to appoint or remove a majority of the directors of corporation B.

Subsidies are current unrequited payments that government units, including non-resident government units, make to enterprises on the basis of the levels of their production activities or the quantities or values of the goods or services which they produce, sell or import

Losses of government trading organisations consist of the losses incurred by government trading organisations whose function is to buy and sell the products of resident enterprises; when such organisations incur losses as a matter of deliberate government economic or social policy by selling at lower prices than those at which they purchased the goods, the difference between the purchase and the selling prices should be treated as a subsidy.

Subsidies on payroll or workforce consist of subsidies payable on the total wage or salary bill, or total workforce, or on the employment of particular types of persons such as physically handicapped persons or persons who have been unemployed for long periods.

Other subsidies on production consist of subsidies, except subsidies on products, which resident enterprises may receive as a consequence of engaging in production (e.g. subsidies on payroll or workforce or subsidies to reduce pollution)

Subsidies on products used domestically consist of subsidies payable to resident enterprises in respect of their outputs which are used or consumed within the economic territory.

Other subsidies on products (other than export or import subsidies) consist of subsidies on goods or services produced as the outputs of resident enterprises that become payable as a result of the production, sale, transfer, leasing or delivery of those goods or services, or as a result of their use for own consumption or own capital formation.

There are three broad categories:

(a) subsidies on products used domestically,
(b) losses of government trading organisations, and
(c) subsidies to public corporations and quasi- corporations.

Subsidies to public corporations and quasi- corporations consist of regular transfers paid to public corporations and quasi-corporations which are intended to compensate for persistent losses - i.e. negative operating surpluses - which they incur on their productive activities as a result of charging prices which are lower than their average costs of production as a matter of deliberate government economic and social policy; by convention, these subsidies are treated as subsidies on products.

Subsidies to reduce pollution consist of subsidies intended to cover some or all of the costs of additional processing undertaken to reduce or eliminate the discharge of pollutants into the environment.

Are wage subsidies for the recruitment of targeted workers or, in some cases, for continued employment of persons whose jobs are at risk. Grants aiming primarily to cover enterprises’ capital costs are not included, nor are general employment subsidies or subsidies paid for all workers in certain regions.

Are targeted measures to promote or provide employment for unemployed persons and other groups specified as labour market priorities (other than youth or the disabled).

Prices that differ from market prices in that some significant portion of variable and /or fixed costs are covered by a revenue source other than the selling price.

A subsidy on a product is a subsidy payable per unit of a good or service produced, either as a specific amount of money per unit of quantity of a good or service or as a specified percentage of the price per unit; it may also be calculated as the difference between a specified target price and the market price actually paid by a buyer.

Farming system emphasizing production for use rather than for sale.

Is fishing for personal consumption or traditional/ceremonial purposes.

Are workers who hold a self- employment job and in this capacity produce goods or services which are predominantly consumed by their own household and constitute an important basis for its livelihood.

Subsoil assets are proven reserves of mineral deposits located on or below the earth’s surface that are economically exploitable, given current technology and relative prices.

Subsoil assets are developed and undeveloped reserves of mineral deposits located on or below the earth’s surface

Application of water below the soil surface through emitters, with discharge rates generally in the same range as drip irrigation.

Are underground deposits of various minerals that provide raw materials and energy sources for humans.

A vessel that, through its physicalcondition, its operation or the activities of its crew, fails to meet basic standards of seaworthiness and thereby poses a threat to life and/or the environment. This would be evidenced by the failure of the vessel to meet regulationscontained in international maritime conventions to the extent that it would be considered unfit to sail by a reasonable flag state or port state inspection.