Estimates of the Capital Stock of Fixed Assets 2008

New Capital Stock estimates

New estimates published today show that dwellings (valued at €302.477b.) accounted for more than 60% of the total net stock of fixed capital assets of the nation (estimated at €477b.) at the end of 2008. Other buildings and structures accounted for a further 26%. Machinery and equipment accounted for 6% while Transport equipment constituted almost
4% of the total.

This new report presents the first estimates by the Central Statistics Office (CSO) of the capital stock of fixed assets. The results are compiled in accordance with EU regulation 2223/96 on the European System of Accounts (ESA) which sets out the definition and scope of fixed assets together with the requirement that member states estimate the value of these assets annually.

Produced Fixed Assets

Produced fixed assets are assets which result from human effort. They exclude natural assets such as land, mineral deposits etc. They also exclude legal constructs such as patents, leases etc. Produced fixed assets comprise

• 1. Dwellings and other buildings and structures (excluding the land on which they are built)
• 2. Machinery and equipment (including transport equipment)
• 3. Cultivated assets (e.g. Livestock for breeding such as dairy cattle etc.)
• 4. Intangible fixed assets (only a limited number of intangibles are recognised in the ESA 95 classification i.e. Computer software, Original works of art including musical and literary works, Mineral exploration)

Industrial sector

Details are provided of the industrial and services sectors which use the assets. Due to the predominance of dwellings among the assets the Real Estate Activities sector (which includes home owners in their capacity as landlords to themselves) accounts for the largest share of the assets at 64%. The Public Administration and Defence sector who have responsibility for roads among other assets account for the next largest share at 8% while the manufacturing sector at 5% accounts for the third largest share of capital assets.

Growth in Stock levels

The growth of net capital assets in the economy classified by asset type when price effects have been removed is also shown. In the ten years 1999 to 2008 there has been a very significant increase in capital assets. The total net stock of capital assets increased by 67% (from €303b to €504b in constant 2007 prices) during these ten years. The net stock of Transport Equipment (business cars, trucks, aeroplanes) more than doubled during this period. Dwellings increased by two thirds and account for more than 60% of the overall increase in assets during this period. Other buildings and structures increased by 68% while other machinery and equipment rose by 54% over this ten year period. These
developments took place during a period of rapid growth in the economy during which time GDP rose by 86%.

Growth by Sector

Estimates of the growth in the net stock of capital assets by industrial sector of use when the effects of price changes over the years have been eliminated shows that the net capital stock in use by the wholesale and retail sectors increased by 176% over the period 1999 to 2008. The net stock in the electricity and gas sectors increased by 118% while the transport sector and water and waste management sectors each showed growth in assets of 92% during this ten year period.

Gross/Net

There are two common valuations of assets i.e. gross and net. The gross stock of assets ignores decay of assets and considers past investments as new – only retirement is taken into account. In practice fixed assets normally decline in value over time due to factors such as wear and tear and obsolescence. Taking this declining value into account together with retirements give rise to the Net value of the stock of assets. Estimates are provided in the report using both valuation concepts.

Current and Constant prices

For statistical and economic purposes the stock of assets can be shown in current or constant prices. Valuation in current prices implies that all the assets accumulated over the years are valued at the prices obtaining in the year for which the estimates are given. Valuation at constant prices represents the stock of capital assets in the price of the stated reference year (2007) in these tables.

Depreciation

The depreciation or consumption of fixed capital of the various asset types are also provided. In contrast to the tables on the stock levels, the depreciation on dwellings does not dominate to the same extent here. This is due to the short time for which many of them have existed. Dwellings account for 30% of the total depreciation. Other buildings account for almost as much at 28% while transport equipment and other machinery and equipment account for 19% and 18% respectively.

For copies of the publication contact:

Central Statistics Office, Information Section, Skehard Road, Cork or

Government Publications Sales Office, Sun Alliance House, Molesworth Street, Dublin 2

Price: €10

Copies and data can be downloaded from the CSO website http://www.cso.ie

For further information contact:

Kieran Culhane (Statistician) at 01 498 4361 or Paddy McDonald (Senior Statistician) at 01 498 4320

LoCall 1890 313 414 extension 4361 or 4320
E-mail nat_acc@cso.ie

23 December 2009

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