the number of properties. we note there are some complex issues around the use of constant or current prices here. the lack of quality adjustment leads to an understatement of gdp. if we assume a similar growth path to australia for new zealand, we estimate the approximate ballpark for gdp could be 1. 5 percent higher. 5. new standards for measuring the economy statistical frameworks, like the sna, must be updated and revised to ensure that the statistics produced remain relevant and fit for use by policy and decision makers. however, with change comes a comparison issue, as countries progressively move to new standards. the international standard for sna was revised in 2008 and a number of conceptual changes were introduced. one of these changes was the move to capitalise research and development, which had previously been treated as an expense. this change means that research and development activity now counts as investment and adds to gdp, rather than subtracts from it. quality adjustment is also common practice in other countries. bis central bankers ’ speeches in 2009 australia implemented a number of new standards and classifications into its production of macroeconomic statistics, including the 2008 version of sna. in this, australia made changes earlier than any other country did. these changes resulted in significant revisions to national accounts and balance of payments statistics. the table below quantifies the revisions made to nominal gdp estimates. in the year ended june 2008 gdp estimated using the new version of sna ( and making adjustments to employment income ) was 4. 4 percent, or $ 50b aud higher, than the older version. bis central bankers ’ speeches the revision upwards of australian gdp results in an even wider gap between new zealand and australia gdp per capita measures. however, new zealand and australia, while still producing gdp estimates, are now producing these statistics on a different conceptual basis. they are no longer directly comparable. statistics nz plan to introduce sna 2008 in 2013 – 14. this is similar timing to other countries around the world. it is difficult to estimate the impact that new international standards will have on new zealand ’ s national accounts and gdp. we estimate approximately a 3 percent increase in gdp. 6. reconciling different measures of gdp a country ’ s gdp can be estimated three ways, using the production method, the income method, or the expenditure method. conceptually the three measures provide equal results. however, in practice, due to differing data sources and imperfect methodologies, this is rarely the case. statisticians use

working life, up to at least age 55 to supplement their retirement income. this is a great opportunity and challenge for the trust industry to design product choices that conform faithfully to the laudable objective of this new law. further, the improving economic prospects also set the stage for progressive liberalization of our foreign exchange regime to allow for greater flexibility in overseas investing. this should provide professional fund managers the necessary room to maneuver the diversification of their portfolios and to access a richer variety of qualified assets …. for the benefit of their customers. ladies and gentlemen. the reform agenda must be pursued vigorously …. if we are to secure the opportunities. at the financial market level, the bsp is closely collaborating with key market players through their respective industry associations, as well as with our fellow regulators particularly the sec ….. to achieve more transparent and investor - friendly markets. it is in this context, that we welcome the recent launch of the new government securities benchmark system that can promote fair price discovery, more effectively. we expect the trust industry to work within this new system so we can achieve full transparency and comparability of performance. the new benchmark should also assist in properly valuing debt securities and other financial products like derivatives, repos, as well as securities borrowing and lending arrangements … and thus promote their acceptability to the market. as the galaxy of available domestic capital market assets expands and the market deepens …. it is the trust industry that will be a clear winner. we are also working hard to constantly improve the payments and securities settlement systems. it is basic that we aspire to fully achieve efficient dvp settlement in all securities transactions …. in line with global standards in the area. this is critical to both investor protection and market stability. we also need to work closely to reform the trust industry itself. in that spirit, we are devoting dedicated resources at the bangko sentral … through our newly formed trust supervision group … to work closely with toap. their priorities include ( 1 ) basic trust department operating standards ; ( 2 ) risk management guidelines ; ( 3 ) trust department rating system ; ( 4 ) specialized examination procedures ; and ( 5 ) improvements to uitf regulations. at a more fundamental level, we are also reviewing the basic governance arrangements of the trust department …. as an entity within the bigger banking organization …. to minimize potential conflicts of interest, while preserving natural business synergies. this includes a closer look at the composition of the trust