Annex XXXI
PROPOSED SCHEDULE OF GOVERNMENT CONTRIBUTIONS
TO THE INTERGOVERNMENTAL NACA

In June 1986, the Legal and Financial Working Group set up by the NACA Advisory Committee (now known as the Provisional Governing Council), developed an Agreement which would establish NACA as an autonomous and intergovernmental organization. This Agreement was subsequently adopted at the Conference of Plenipotentiaries held on 5–8 January 1988 in Bangkok, Thailand. It was opened for signature on 8 January 1988 in Bangkok and will remain open for signature thereafter at FAO Headquarters, Rome, until 7 January 1989. To date, four governments have signed the Agreement. Many other governments in the region are expected to sign soon.

Besides developing the Agreement on NACA, the Legal and Financial Working Group also studied the question of establishing a self-sustaining financial mechanism under which the Intergovernmental NACA would operate and manage its affairs. The Working Group reviewed the financial mechanisms of existing councils, commissions, and other existing intergovernmental bodies, particularly those which were established from UNDP/FAO programmes and projects.

Based on the data provided by 9 of the 11 participating governments, the Working Group noted wide disparities among the countries in respect of, for example, geographical area, population, gross domestic product (GDP), investment in the fisheries sector, and fish production. Several variants were also studied based on GDP, inland fish production and a combination of these two factors. After weighing the advantages and disadvantages of the various formulae which were developed, the Group concluded that a simple formula based on GDP, including the principle of a minimum contribution, would be the most realistic approach. Accordingly, the Group recommended that:

1. the participating governments be classified into five groups on the basis of their GDPs.

2. the annual contribution from each member government should be not less than 5 per cent and not more than 20 per cent of the total annual NACA budget for its core activities estimated at US$400,000.

Based on this recommendation, the levels of annual contributions by the 9 governments are listed as follows:

GROUP — A (a GDP of over US$100,000 million)

GROUP — B (a GDP from US$50,000 to 100,000 million)

GROUP — C (a GDP from US$15,000 to 50,000 million)

GROUP — D (a GDP from US$5,000 to 15,000 million)

GROUP — E (a GDP of less than US$5,000 million)

While the Provisional Governing Council endorsed the recommendation of the Working Group at its first meeting on 25–28 November 1986 in Surabaya, Indonesia, a few government representatives suggested that the Council take into consideration the question of the “ability-to-pay” and the overriding factors in the potential and relative importance of aquaculture development in city states or by urban governments.

At the recent meeting (on 29 September-4 October 1988 in Bangkok) of the Working Party which was constituted by the Provisional Governing Council at its second meeting on 12–15 January 1988 in Bangkok, Thailand, to prepare the future strategy and work programme of the Intergovernmental NACA, the subject on the levels of government contributions was also discussed. Although the matter was not within the terms of reference of the Working Party, it was brought up for informal discussion at the request of the NACA Coordinator. Several formulae were prepared, based on the following:

• weighting of per capita GDP and fish landing;

• importance of fish in national diet;

• weighting of GDP, fish landing and population;

• FAO schedule of government contribution;

• FAO schedule of government contribution plus importance of fish in national diet.

Wide disparities were again noted. The Working Party advised that the original formula endorsed by the Provisional Governing Council in Surabaya should be followed, taking into account the greater number of governments wishing to join NACA, the constraints of city states or governments and the abstract factor on the ‘ability-to-pay’.

Based on the above suggestion the NACA Secretariat has prepared an annual schedule of government contributions which collectively would enable the Intergovernmental NACA to operate its core activities at the present level. The proposed schedule is attached for the consideration of the governments which are expected to make a decision on it at the third meeting of the Provisional Governing Council to be held on 10–13 January 1989 at the FAO Regional Office, Bangkok, Thailand. Government contributions should be in convertible currency. However, the proposed schedule does not preclude additional contributions in the form of donations from governments in either convertible or local currencies.

PROPOSED SCHEDULE OF GOVERNMENT CONTRIBUTIONS* TO NACA

* Government obligatory contributions are in convertible currency. However, the proposed schedule does not preclude additional contribution from governments in the form of donations, in either convertible or local currencies.