We discuss the issue of observables in general-relativistic perturbation th
eory, adopting the view that any observable in general relativity is repres
ented by a scalar field on spacetime. In the context of perturbation theory
, an observable is therefore a scalar field on the perturbed spacetime, and
as such is gauge invariant in an exact sense (to all orders), as one would
expect. However, perturbations are usually represented by fields on the ba
ckground spacetime, and expanded at different orders into contributions tha
t may or may not be gauge independent. We show that perturbations of scalar
quantities are observable if they are first-order gauge invariant, even if
they are gauge dependent at higher order. Gauge invariance to first order
therefore plays an important conceptual role in the theory, for it selects
the perturbations with direct physical meaning from those having only a mat
hematical status. The so-called 'gauge problem', and the relationship betwe
en measured fluctuations and gauge-dependent perturbations that are compute
d in the theory are also clarified.