Public Section Information Current situation in the EU III Aporta Meeting, Madrid Michael Nicholson Deputy Chair of the PSI Alliance Expert Member APPSI Managing Director, Intelligent Addressing Limited 9 th June 2009

What has changed over the past ten years? Internet has transformed communication Ability to store, manipulate and retrieve huge amounts of data has been revolutionized Technical competence has exploded

Internet has transformed communication

Ability to store, manipulate and retrieve huge amounts of data has been revolutionized

Technical competence has exploded

Has PSI re-use kept pace? The largest source of information in Europe (Review of Directive) Market size for re-use in 2006 was €27 billion (MEPSIR) But a fraction of what it could be ……… Market for value-added meteorological products (2006, Pettifer) USA- $1.4 billion pa EU - $372 million pa Why?...... Charging policies adopted in the EU Failure to exploit information assets costing UK €70billion pa (2008, Capgemini)

The largest source of information in Europe (Review of Directive)

Market size for re-use in 2006 was €27 billion (MEPSIR)

But a fraction of what it could be ………

Market for value-added meteorological products (2006, Pettifer)

USA- $1.4 billion pa

EU - $372 million pa

Why?...... Charging policies adopted in the EU

Failure to exploit information assets costing UK €70billion pa (2008, Capgemini)

What is the problem? PSI forms vital part of every nation’s information infrastructure PSI producers are natural public monopolies But who owns PSI? The State or Citizen? Some States attempt to exploit their PSI Exploiting PSI creates a burden on State and enterprise and is a barrier to innovation

PSI forms vital part of every nation’s information infrastructure

PSI producers are natural public monopolies

But who owns PSI? The State or Citizen?

Some States attempt to exploit their PSI

Exploiting PSI creates a burden on State and enterprise and is a barrier to innovation

Is it worth charging for PSI? Probably not! Eurostat calculates that 39.6% of private sector economic activity is returned in tax Public Sector should “control production” of “Public Task” data and the Private Sector should take risks and innovate However State should recover the costs of initial distribution or there is no incentive to do so Emotional attachment should be discouraged! The data belongs to the citizen …..

Probably not!

Eurostat calculates that 39.6% of private sector economic activity is returned in tax

Public Sector should “control production” of “Public Task” data and the Private Sector should take risks and innovate

However State should recover the costs of initial distribution or there is no incentive to do so

Emotional attachment should be discouraged! The data belongs to the citizen …..

Current situation on PSI re-use The Directive forced recognition of “an issue” Different understanding of the “issue” across the EU Different practices across the EU Lack of recognition of the scale of the problems Homogenous solution looks very difficult Especially at a time of financial crisis

The Directive forced recognition of “an issue”

Different understanding of the “issue” across the EU

Different practices across the EU

Lack of recognition of the scale of the problems

Homogenous solution looks very difficult

Especially at a time of financial crisis

Little protection for the re-user currently…. The PSI Directive is inadequate It only covers PSI activities that are part of Public Task It does not properly define Public Task It defines PSI as “documents” It allows for charging at more than Marginal Cost By implication, it permits product cross-subsidization

It only covers PSI activities that are part of Public Task

It does not properly define Public Task

It defines PSI as “documents”

It allows for charging at more than Marginal Cost

By implication, it permits product cross-subsidization

Policy proposals (1) State should first define what information it requires for good government and it should then procure it The definition of PSI should be decided by independent committee focusing on Statutory responsibility and market shortcomings The State should own PSI PSI should be available for re-use at the marginal cost of distribution

State should first define what information it requires for good government and it should then procure it

The definition of PSI should be decided by independent committee focusing on Statutory responsibility and market shortcomings

The State should own PSI

PSI should be available for re-use at the marginal cost of distribution

If State believes it must exploit PSI then alternatively….. Complete separation of upstream (raw/basic data) production activities from downstream (value-added) commercial activities Re-users must have access to upstream data on same terms as State resellers Must still define PSI and set boundaries to activity Must ensure accounting regime is based on true product cost Must ensure advice and decisions are not conflicted Must create a substantial Regulatory regime that works

Complete separation of upstream (raw/basic data) production activities from downstream (value-added) commercial activities

Re-users must have access to upstream data on same terms as State resellers

Must still define PSI and set boundaries to activity

Must ensure accounting regime is based on true product cost

Must ensure advice and decisions are not conflicted

Must create a substantial Regulatory regime that works

To summarise ….. Lack of recognition in most of the EU of the scale of the problem or its true cost Solutions not straightforward or quick to implement Lack of political will to fix problems Huge loss of opportunity

Lack of recognition in most of the EU of the scale of the problem or its true cost

Solutions not straightforward or quick to implement

Lack of political will to fix problems

Huge loss of opportunity