20.1 Amendments to the Provisions of the Special Reserve Account
20.1 Amendements des dispositions concernant le Compte de réserve
20.1 Enmiendas a las disposiciones de la Cuenta Especial de Reserva
The first item on the Agenda is 20.1, Amendments to the Provisions of the Special Reserve Account. I will give the floor to Mr. West, Assistant Director-General of FAO, and request him to brief the meeting.
E.M. WEST,(Assistant Director-General, Office of Programme, Budget and Evaluation): You have the document before you, C 81/LIM/2, which is an extract from the Report from the session of the Council a few days back which considered the matter and transmitted to you the Resolution which you find in the document.
Before the meeting of the Council the matter had been considered by the Finance Committee in its spring session, and their Report is to be found in CL 79/4, paragraphs 3.66 to 3.71. It has therefore been examined by the Finance Committee, which deals with such matters in detail, and then by the Council.
Returning to C 81/LIM/2, you will see that the Council noted the situation under which the Organization was operating, and paragraph 185 gives some details of this situation. Basically the situation is the same as described in paragraph 185. There are some variations of detail which are still in process and will continue to the end of the year, but the overall situation is exactly the same. In fact, on the expenditure side it may become a little worse, whereas on the currency side it may become a little better.
The underlying situation is still the extremely paradoxical and unsatisfactory one that under the present Regulations we have a situation in which the facility in the Sepcial Reserve Account for unbudgeted costs is extremely insufficient while at the same time currency gains are piling up in the Special Reserve Account, which cannot be used to offset unbugeted costs. Apart from this, the size of the Special Reserve Account has become much too small in proportion to the total of the budget. So the Resolution provides for three simple changes which are changes of detail rather than of substance except in regard to the availability of funds for offsetting unbudgeted costs, the three changes in paragraph 187 of the Council Report.
In sub-paragraphs (i), (ii) and (iii) of paragraph 187 of C 81/LIM/2 you see the substance of the changes proposed in the draft Resolution. As you will note, the large majority of members in the Council fully supported these proposals. The Director-General hopes therefore that the Conference will similarly support these proposals, since they are fundamental to the efficient management of the Organization's resources in the next biennium.
R.A. SORENSON (United States of America): My delegation has carefully studied Document C 81/LIM/2 containing proposed amendments to the provisions of the Special Reserve Account. We also attentively followed the discussion in the Council of this issue. In the light of this examination, my delegation has three main objectives to the proposed changes in the Special Reserve Account.
In the view of my delegation, the Reserve involved will, either directly or indirectly, constitute an additional and extra assessment to be borne by each of the Members of the Conference. We think that it should be clearly pointed out that this extra assessment in dollars will not carry with it any programme growth or benefit. Instead, each Member State will forego the return of the share of an accumulated cash surplus. FAO will retain this cash instead of easing the burden of contributions of all of us.
It might be argued that with the growth of inflation there is need to increase this fund. However, this fund is determined as an expressed percentage of the regular budget. Those who have followed the discussion of the regular budget in Commission II are well aware that the reason why the Secretariat claims a budget growth of only 6 percent instead of over 35 percent is that most of the larger figure is provision for inflation rather than programme growth. This means that the regular budget of the Organization already takes into account the best judgment of the Secretariat with respect to what the inflation picture is likely to be over the biennium. Thus it must be recognized that the Special Reserve Account which is a percentage of the regular budget grows as the overall level of the regular budget increases. Our view is that the Special Reserve Account is to protect the Organization against exchange rate fluctuations, and it has been proven adequate for this and these other purposes in the past. We believe that with the increase in the overall total of the regular budget there will be an adequate increase in the level of the Special Reserve Account to continue to meet the purposes for which we established that account in the first place and as it has in the past.
Finally, my delegation believes that we should avoid enlarging this account in a way that would protect the Organization from being required to make the tough decision that all of us sometimes make personally and that all of our governments make when faced with unforeseen economic difficulties.
A. PIRES (Cap-Vert): Ma délégation souhaite intervenir sur deux points qu'elle juge très importants.
Tout d'abord, je voudrais parler du Compte de réserve spécial. Ma délégation a étudié avec beaucoup d'attention le projet de résolution qui nous est soumis et qui apporte des modifications aux dispositions du Compte de réserve spécial. Comme à l'accoutumée, cette résolution est loin d'être une création ex nihilo, mais résulte des recommandations du dernier Conseil qui ont par ailleurs reçu l'aval du Comité financier et du Comité sur les questions juridiques constitutionnelles.
Nous avons donc tous disposé de beaucoup de temps et des informations nécessaires à notre prise de décision. Aussi, je suis convaincu que la Conférence parviendra rapidement à voter unanimement en faveur de cette résolution. Les faits et les arguments sont suffisamment parlants en eux-mêmes pour nous épargner d'inutiles discussions.
Dans sa forme actuelle, le Compte de réserve spécial ne sert pas les objectifs pour lesquels il a été créé. Il doit donc être amendé, et amendé d'urgence.
Je n'ai, pour ma part, aucune virgule à ajouter ou à retrancher aux amendements proposés par la résolution. Ces amendements sont justifiés et très raisonnables; et ils permettent surtout de sauvegarder l'intégrité du programme que nous avons appuyé. Nous ne tolérons pas en effet de rester impuissants devant les conséquences de l'inflation, alors que nous pouvons parfaitement les endiguer par ces moyens.
Si vous le permettez, j'aimerais en même temps intervenir sur le fonds de roulement, c'est à dire sur le document C 81/LIM/23. Nous pensons qu'à ce stade très avancé du débat il n'y a pas grand chose à ajouter à ce qui a été dit, sinon que mon gouvernement approuve totalement la proposition d'augmenter le fonds de roulement de 5 à 13,25 millions de dollars. Nous pensons que cette augmentation, comme beaucoup l'ont souligné, n'est qu'un réajustement proportionnel à l'augmentation des contributions qui sont dues à l'inflation.
Par ailleurs, cette mesure, tout comme celle concernant le Fonds de réserve spécial dont je viens de parler, ainsi que celle donnant au Directeur général l'autorité d'emprunter, répondent à un souci urgent et très justifié: celui de donner plus de flexibilité au Secrétariat dans sa gestion financière à un moment où la conjoncture interdit toute rigidité.
J'invite donc tous mes collègues ici présents à appuyer la proposition du Secrétariat.
G. LIEBER (original language German) (Germany, Federal Republic of): The proposed amendments of the rules for the Special Reserve Account on which we have to take a decision should in the opinion of my delegation be viewed in the broader context of the package of measures, destinated to protect the FAO Programme of Work and Budget 1982-83 against negative influences caused by monetary developments, inflationary cost increases and unforeseeable developments as for instance staff cost rises. The two other components of this package are the already approved - by the 80th Session of the Council -authorization for the Director-General to borrow money on the credit market and the Working Capital Fund of the Organization.
My delegation recognizes that in view of the given situation we are all confronted with the need for adequate security measures to safeguard FAO's Programme of Work and Budget. This goes without saying. We are, however, of the opinion that the proposed funding of this security package goes beyond the necessary level and that, consequently, considerable sums are blocked that could be used more effectively for development purposes.
We have consequently expressed this view in the past during the discussions on the Programme of Work and Budget and maintain it. We are, therefore, not in a position to support the resolution on the Special Reserve Account before us. We have expressed this view last at the 80th Session of the Council which preceded the Conference.
Under items 20.6 and 20.7 this Commission will also deal with the Working Capital Fund. In this context I would already now like to state that we, setting aside considerable reservations, will not oppose a consensus on the proposed increase of the level of this Fund. By this we would like to honour the attitude of the Secretariat that, as a consequence of the discussion during the 48th Session of the Finance Committee in September, agreed to a lower level of the WCF, as originally proposed. Unfortunately, the Secretariat did not show a similar attitude towards the Special Reserve Account.
S. DE MARE (Sweden): I am making this statement on behalf of the Nordic countries, Denmark, Finland, Norway and Sweden. Our delegations are in principle favourable to an increase of the means at the disposal of the FAO to cope with the effects of unbudgeted extra costs. This view has also been expressed by the Swedish delegation at the Seventy-Ninth Council meeting when the proposal to modify the Special Reserve Account was discussed. A drastic curtailment of agreed programmes due to the effects of inflation rates that cannot be anticipated and expected should in our view be avoided as far as possible. The Organization should on the other hand also be able to accumulate some price increases by making proper savings in its administrative and relief programmes. It is in this respect also necessary to forecast realistic costs increases for the coming biennia when preparing the budgets of FAO. The Nordic delegations would thus agree to an increase in the Special Reserve Account from 2.5 percent to 5 percent of the effective working budget, as proposed in document C 81/LIM/2 and the Draft Resolution. This implies a significant increase of the Reserve Account that will give sufficient protection in the future against unbudgeted costs. These sharp currency fluctuations that have occurred during many years and will certainly continue to do so in the future are causing difficult situations in the Organization.
It is thus very important to try to establish as realistic a lire rate as possible for the dollar when the budget is decided by the Conference. For these reasons, we also find it necessary to keep a certain limitation on the use of the account to cover unbudgeted costs due to inflation. According to the Nordic delegations, 20 percent of the increased Reserve Account must be kept exclusively to cover exchange rate fluctuations. This special currency reserve would amount to around $3.7 million for the next biennium when calculated on the budget level of $368 million.
The Nordic delegations consider such a particular reserve within the Special Reserve Account to be of great value despite its rather limited size, especially if all other measures are taken to mitigate as far as possible the exchange rate fluctuations.
One such measure which we feel could be further implemented by the Organization is the change from dollars to Special Drawing Rights (SDR's) as the basis for the FAO budget. As the SDR's are calculated on the weighted value of all the currencies among the members such a change would imply a high degree of stability within the present system. We would very much appreciate the Secretariat's comment on this question, and the meaningfulness of having it further elaborated by the competent bodies of FAO, at least the Finance Committee and the Council.
Finally, coming back to the more specific questions of the Special Reserve Accounts, the Nordic delegations could, but not without a certain hesitation, agree to approve withdrawals with respect to unbudgeted costs from the Council to the Programme and Finance Committees. The main reason for our hesitation at the present time is the cost it would entail.
J. PIRIZ JORGE (Uruguay): Muchas gracias señor Presidente, todos hemos exigido a la Secretaría la máxima eficiencia en su gestion con el fin de obtener los máximos resultados de los recursos disponibles que lamentablemente son, en términos reales, año tras año, más reducidos. Bien señor Presidente, si todos estamos de acuerdo en exigir mayor eficiencia y, en general, estamos de acuerdo en que la Organización ha cumplido satisfactoriamente dicha exigencia, no podemos, nosotros mismos, impedir a la Organización el ajustar los medios de que dispone para alcanzar los resultados que se le exigen. Más aún, señor Presidente, no podemos caer en la incoherencia de mantener una reglamentación de la Cuenta Especial de Reserva que resulta un factor de ineficacia. Nos parece una medida de pésima administración financiera el que, mientras por un lado, se recortan programas reduciendo su efectividad y se retiran sumas del Fondo de Operaciones para cubrir costos no presupuestados de más de 18 millones de dólares, por otro lado se acumulan fondos ociosos, como ingresos varios, por montos superiores.
Es indudable, señor Presidente, que en 1977, al adoptarse la Resolución 27/77, se subvaloraron tanto la evolución de la inflación como la fluctuación de cambios.
Creemos pues, que es necesario ajustar dicha Resolución y, en este sentido, apoyamos la propuesta de elevar la Cuenta Especial de Reserva al 5 por ciento del Presupuesto de Operaciones Efectivo. Podría preguntarse, señor Presidente, por qué un 5 por ciento y no un 4 o un 8. En ello no existen normas generales y debe considerarse, en cada situación, cuál es la reserva necesaria para este fin. El porcentaje propuesto nos parece razonable y si la Secretaría a la que hemos otorgado, en esta misma Conferencia, nuestro apoyo y confianza ha aceptado esta propuesta, debemos pensar que ha estudiado el problema a conciencia y que, por lo tanto, debemos otorgarle el mismo apoyo y la misma confianza cuando nos pide instrumentos para cumplir mejor con sus fines.
Además, señor Presidente, consideramos que una vez aprobado un Programa, el mismo debe ser ejecutado completamente, de modo que alcance sus mejores resultados. Es indudable que la acción en un momento en que nos enfrentamos a necesidades crecientes con recursos reales, cada vez más limitados, debe orientarse, más que nunca, hacia la obtención de los máximos resultados con el mínimo gasto. Pero por qué recortar programas mientras se dispone de fondos ociosos. Consideramos que los resultados de la Organización deben medirse en porcentajes de aumento de la producción o en disminución en los indicadores de la malnutrición, y no en intereses bancarios de depósitos.
Por ello señor Presidente, no encontramos tampoco ninguna justificación en la limitación al 4 por ciento del porcentaje de la reserva que puede ser utilizado para cubrir costos extraordinarios no presupuestados. Consideramos que dicho límite es arbitrario y debe ser limitado. El mismo, sólo se justificaría si nos encontráramos frente a una administración financiera que no contara con nuestra confianza y, al estar a lo que se ha expresado en los distintos órganos de este período de sesiones, éste no es el caso.
Por último, señor Presidente, es indudable que el establecimiento de mecanismos de supervisión y control es un principio de buena administración. Sin embargo, estos mecanismos no deben de ser tales que le den al uso de las reservas una rigidez tal que le quiten su efectividad. Los principios que guíen su funcionamiento deben de ser la seguridad y la agilidad. Consideramos que esto se logra facultando a los Comités de Programas y de Finanzas para utilizar las retiras de las cuentas de reserva tal como se propone en la Resolución. De esta forma, señor Presidente, consideramos que se logre un razonable nivel de seguridad ya que éstos son los órganos de consejo formados por representantes de los Países Miembros elegidos, además, por sus capacidades personales. Por otra parte, su funcionamiento es más flexible y ágil y, por tanto, adecuado a este fin.
Por todo lo expuesto, señor Presidente, nuestra delegación apoya la Resolución tal como se nos presenta.
A. AZEEZ (Maldives): Thank you for giving us the floor to speak on this important subject of amendments to the provisions of the Special Reserve Account. We have carefully considered the matter and find the current provisions, both on the level of the Special Reserve Account and the limitations of its use, unrealistic and unnecessarily restrictive, especially so in these days of unpredictable currency fluctuations and inflationary trends.
We should ensure that adequate cash resources are available to the Organization to implement the draft Programme of Work and Budget. Therefore we strongly support the amendments which prescribe the level of the Special Reserve Accounts be increased to five percent of the working budget, and that the limitation on the use of the account to cover unbudgeted extra costs be removed.
We also endorse that the provision for approval of withdrawal in respect of unbudgeted costs be entrusted to the Programme and Finance Committees.
R. ROUPHAEL (langue originale arabe) (Liban): Nous avons étudié le document C 81/LIM/2 avec beaucoup de soin. Et nous avons écouté avec beaucoup d'intérêt l'introduction qu'en a faite M. West.
Je souhaite très sincèrement que les amendements proposés soient acceptés unanimement, car il est de notre devoir à tous d'accepter cette proposition.
D'autre part, la situation à laquelle nous sommes confrontés aujourd'hui est celle d'un accroissement des activités face à un taux d'intérêt qui ne cesse de croître. Donc, il y a inflation et en même temps fluctuation des taux de change, et ces deux éléments ont augmenté les dépenses extra-budgétaires de la FAO.
Le compte de réserve spécial n'a rien de nouveau. Il a été créé il y a environ trois ans; il devait être de 5 millions de dollars, ressources renouvelables, et équivaloir à 2,5 pour cent du budget pour la période biennale. Mais, à ce moment là, personne ne s'attendait à ce phénomène d'accélération de l'inflation qui s'ajoutait aux fluctuations des taux de change. C'est pourquoi nous devons passer à 5 pour cent pour ce compte de réserve spécial car, étant donné la situation actuelle, le compte n'est pas suffisant et ne permet plus de financer les dépenses extra-budgétaires. En outre, il ne permet pas de nous protéger contre l'inflation ni contre la fluctuation des taux de change. Ceci d'autant plus que ces dépenses sont arrivées à 18,5 millions de dollars, ce qui a conduit le Directeur général à réduire les activités prévues au budget.
Nous ne devons pas mettre la FAO dans une situation critique, ni mettre des obstacles à la mise en oeuvre du budget. Ce compte ne devrait pas être gelé mais être porteur d'intérêts. Il doit avoir la possibilité de transférer et d'utiliser les fonds qui y sont déposés. En outre, je dois dire que nous ne devons pas donner au Directeur général une autorité particulière, considérant que l'autorité, pour l'approbation des programmes, relève de la Conférence.
Ces programmes ayant été approuvés, s'ils dépassent nos moyens, il nous appartient de trouver la solution aux problèmes de telle sorte que nos programmes restent dans le cadre de nos possibilités financières.
Pour toutes les raisons que j'ai exposées, ma délégation sera d'accord avec le projet de résolution. Nous espérons qu'elle sera unanimement appuyée, notamment pour que le Comité du Programme et le Comité Financier, dont la tache sera de faire ce travail, puissent le réaliser avec le maximum d'efficacité.
D.R. SHARMA (Nepal): My delegation is glad that Council at its 78th Session instructed the Director-General to review the current validity of the application and effectiveness of the Special Reserve Account with a view to submitting proposals to us at this Session and on the basis of that document the Director-General submitted it to the CCLM and Finance Committee and the Council at its 79th Session recommended that resolution to us. We believe this is an issue on which the Conference should rapidly reach a decision. The facts speak for themselves.
How can we continue to face a situation in this biennium in which currency gains pile up but cannot be used on unbudgeted costs to more than 2 percent of the effective working budget? Alternatively, how can we see the situation going in the reverse direction during the next two years, which could well be the case?
The Special Reserve Account was established four years ago at a level of $5 million with approval for subsequent replenishment in the working budget for the following biennium. At the same time, the Conference exercised its judgement on this level. At that time it was perhaps understandable that the Conference did not anticipate the great change in interest rates and the currency adjustments and inflation which came about during the current biennium.
It is an unprecedented but not necessarily a one-time occurrence that inflation rates have been running at 20 percent per annum for the last two years and may continue to do so for the next two years.
It is extraordinary but worrying that the dollar has gained 50 percent against the lira since the last Conference, mostly over these past few months. All this could change equally rapidly. It is quite clear that an amount which gives a margin for only 2.5 percent is now quite unrealistic. We are therefore glad that the large majority of the Council members agreed that the Special Reserve Account should be increased to at least 5 percent of the effective working budget. We think an even higher percentage could easily be justified and that 5 percent is the minimum level. My delegation agrees, of course, that the present limitation of 2 percent to finance unbudgeted extra costs of approved programmes due to unfortunate inflationary trends should be removed. We could not understand or support the view which we understand was expressed by a minority in the Finance Committee and Council that while the total should be increased to 5 percent, the use of the Special Reserve Account to cover unbudgeted extra costs should still be limited to 4 percent. This seems to be entirely arbitrary. Let us remember that we are not issuing a blank check to the Director-General or to anyone else, which I think the delegation of Lebanon has rightly expressed. We are not giving authority to the Director-General to add to the total appropriation resources for programmes which should be implemented in full.
If, however these approved programmes are affected by unbudgeted extra costs this would be protected within the entire limit of the resources of the Special Reserve Account.
We also fully agree that the approval of such results should be delegated by the Council to the Programme and Finance Committees. We have seen the rapidity of inflationary developments. The changes are so rapid and unpredictable that no one, least of all this Conference, can foresee at the time of the approval of the Programme of Work and Budget all the changes which might occur over the next two years. The Programme and Finance Committees are bodies of the Council itself, they have the ability to discharge their mandate and we should delegate this further responsibility to the Committees. Accordingly we fully agree with the draft resolution submitted to us by the Council and propose that the Conference adopt it.
M.E. DANHOUNSI (Benin): L'intervention de la delegation du Benin se situe une fois encore dans le cadre de son choix de lutter au coude à coude avec les organisations qui oeuvrent par tous les moyens en vue de l'établissement de la paix dans le monde.
Depuis le début de cette conférence, tout le monde s'accorde à reconnaître que la situation de l'alimentation et de l'agriculture est préoccupante. Chacun apprécie les efforts déployés par la FAO pour aider le monde entier à éviter une famine qui serait fatale pour les uns et pour les autres. Mais, dans la pratique, on se réfugie derrière de prétendus problèmes financiers pour réfuter en bloc la mise en oeuvre de mesures immédiates en vue de combattre la faim et la misère dans le monde.
Le problème que nous abordons ce matin porte sur l'amendement des dispositions concernant le compte de réserve spéciale. Cet amendement a été dicté par l'analyse de la situation faite par le Conseil et le résultat du retard des grands donateurs à verser leur contribution, mettant ainsi en difficulté la Direction générale de la FAO.
Les modifications proposées permettront de faire face efficacement aux effets néfastes de l'inflation. Elles ont aidé la FAO à réaliser dans ses grandes lignes le programme de travail que nous avons tous approuvé. L'expérience passée et les pronostics sur l'avenir, toujours plus assombris par l'inflation, nous amènent à penser que l'augmentation du montant actuel du compte de réserve spéciale jusqu'au niveau proposé, le 5 pour cent du budget opérationnel pour chaque exercice, est un niveau minimum.
Il faudrait par ailleurs sans aucun doute lever la restriction présente selon laquelle le montant, destiné à financer les dépenses supplémentaires non inscrites au budget et résultant de l'inflation, ne saurait dépasser 2 pour cent du budget opérationnel effectif. A cet égard, il est étonnant de constater que certaines délégations veulent imposer une nouvelle limitation, tout aussi arbitraire et injustifiée que la première, et fixant ce niveau à 4 pour cent.
Priorité à l'agriculture, non à la course aux armements. Les peuples veulent de la nourriture, non les bombes.
Pour terminer, Monsieur le Président, nous appuyons sans réserve la déclaration du délégué du Cap-Vert.
S. M. CAMARA (Guinée): Nous ne prenons pas la parole pour faire un commentaire qui risquerait de répéter ce qui a déjà été exprimé, étant donné que la délégation du Cap-Vert vient de développer, comme par télépathie, nos idées. Il nous reste à appuyer pleinement les deux points qui viennent d'être commentés par notre collègue du Cap-Vert. Notre délégation soutient le projet de résolution qui nous est ainsi soumis.
W. RUDDER (Trinidad and Tobago): My delegation makes a brief intervention at this particular point to indicate that we have followed quite closely the general discussion in the Plenary, the more detailed discussion in Commission I on the budget and the Programme of Work and the earlier discussions in this Commission which dealt with the financial management and accountability of the FAO Secretariat. In all these discussions it appeared to us that - and we share the apparent consensus - the FAO Secretariat had exhibited a high degree of efficiency and prudence in its management of the financial affairs of the Organization. Having regard to this and given particularly the uncertainty and the unpredictability of the day, we feel that while it is necessary to maintain vigilance over the operations of the Secretariat, particularly in respect of its financial administration - and we note that there are ample mechanisms for this - we ought not to unduly fetter the Organization in its day-to-day performance. Moreover, we feel that the Secretariat should continue to enjoy our trust.
Given all the circumstance, the delegation of Trinidad and Tobago unhesitatingly supports both the amendments and provisions of the Special Reserve Accounts and the increase in the level of the Working Capital Fund.
M. N. DIMITRIU (Roumanie): Prenant la parole pour la première fois, j'aimerais tout d'abord vous féliciter, Monsieur le Président, pour votre élection à la présidence de cette importante commission. Mes félicitations s'adressent aussi à tous les membres de son bureau.
Dans le contexte de la position constante de la Roumanie visant à l'appui du programme de travail et de budget de la FAO pour le biennium 1982/83, notre délégation a analysé attentivement le document se référant au point 20 de l'ordre du jour, notamment le point 20.1, Modification des dispositions relatives au compte de réserve spécial, 20.6, Reconduction du fonds de roulement et 20.7, Relèvement du niveau du fonds de roulement. Ma délégation exprime son accord sur les propositions du Directeur général contenues dans le document analysé. La délégation de la Roumanie appuie le projet de résolution.
M. C. LAMBERT (Canada): Nous avons à l'ordre du jour deux décisions financières importantes qui auront des répercussions non moins importantes sur la gestion. Nous ne saurions oublier non plus que le Conseil a approuvé, au début du mois de novembre, une résolution autorisant le Directeur général à emprunter. Ces trois mesures doivent être considérées comme formant un ensemble. La présentation qui nous est faite de ces trois solutions porte à croire que leur financement est facile, j'allais dire presque automatique et sans conséquence.
Ma délégation doit réaffirmer ici qu'elle est en désaccord avec cette interprétation. Les solutions proposées sont essentiellement justifiées par un taux d'inflation élevé et par les retards apportés dans les paiements des contributions. Sur ce dernier point, ma délégation a noté avec beaucoup de préoccupations les explications qui nous ont été données hier, d'après lesquelles le taux des rentrées est le plus bas que l'on ait connu depuis des années. En effet, quelque 40 % des membres accusent un retard partiel ou total dans le versement de leur contribution. Ces chiffres deviennent encore plus inquiétants si l'on considère que les contributions, pour le nouveau budget, seront augmentées de quelque 30 %.
Pour pallier cette situation, c'est-à-dire un rythme de rentrée des contributions qu'on prévoit encore plus lent, on nous propose de les augmenter indirectement. Est-ce bien logique ? En effet, il faut bien avouer, Monsieur le Président, que les recettes occasionnelles que les Etats Membres ne toucheront pas, les intérêts sur les emprunts, les sommes gelées dans un fonds de roulement, sont autant de formes de paiement à un budget accru pour des programmes qui eux ne le sont pas.
On nous dit, au paragraphe 190 de la résolution sur le compte de réserve spécial, que le maintien de la tendance actuelle rend improbables des contributions supplémentaires. Là encore, nous devons différer d'opinion. Nous savons tous malheureusement qu'il n'y a pas en économie de tendance permanente. Il faudra donc éventuellement envisager des contributions supplémentaires, ce qui contredit les arguments avancés qui sont à notre avis circonstanciels et ne tiennent pas compte du fait que ces résolutions sont adoptées pour un temps beaucoup plus long.
Il est un autre aspect qui nous préoccupe gravement: le train des mesures proposées aura aussi comme effet de pénaliser ceux qui paient leur contribution à temps. Et je dis ici avec fierté que le Canada est l'un des pays qui s'acquitte de sa contribution dès le mois de janvier de chaque année. A ces pays donc, on imposera des frais supplémentaires dûs aux retards des autres. Est-ce bien là une façon d'encourager les paiements hâtifs ? Il me semble au contraire que ces mesures atteindront l'objectif opposé à celui recherché.
Nous avons aussi entendu plusieurs orateurs ce matin nous dire que si les programmes avaient été approuvés tout devait être mis en oeuvre pour les réaliser. Je voudrais rappeler ici que les programmes et les budgets sont liés dans un même vote. Privilégier les uns aux dépens des autres est trahir l'intention du vote. L'ensemble des mesures proposées privilégie maintenant les programmes sans tenir compte du budget. Cette attitude nous préoccupe surtout dans la perspective d'une saine gestion.
Pour ces raisons, et celles que la délégation canadienne avait données à la 79ème session du Conseil en juin dernier, ma délégation ne peut appuyer la résolution sur le compte de réserve speciel telle qu'elle est présentement formulée.
P.A. MORALES CARBALLO (Cuba): Quiero agradecer, en primer lugar, la introducción que nos ha hecho el señor West, que, aunque de manera muy sintética, nos ha llevado a la mente de todos nosotros que este problema que se discutió hace ya algunos meses tiene plena vigencia.
Nuestra delegación quiere referirse, como hemos dicho, al Proyecto de Resolución sobre la Cuenta Especial de Reservas.
Al respecto comparte plenamente los aspectos indicados en el párrafo 185 del informe del 79° período de sesiones del Consejo, así como también los puntos detallados en su párrafo 187.
Por esas razones nuestra delegación apoya el Proyecto de Resolución que se nos propone sobre la Cuenta Especial de Reserva.
Como la mayoría de los miembros del Consejo en aquella ocasión, y ahora aquí en la Conferencia, consideramos esta propuesta como un medio flexible, rápido y práctico para garantizar la ejecución del programa ordinario contra la inflación y la falta de estabilidad monetaria.
Indudablemente que la acción que nos mueve a tomar esta decisión está basada en la experiencia de la Organización y la necesidad de darle un mínimo de seguridades a unas situaciones imposible de prever, y de acuerdo a la realidad económica y financiera actual.
Como han dicho otros oradores, esta propuesta ha recibido la aprobación del Comité de Finanzas y del Comité de Asuntos Constitucionales y Jurídicos. Por todo ello, señor Presidente, nuestra delegación apoya el Proyecto de Resolución que se nos presenta en el documento que estamos discutiendo.
M. NGA-MA MAPELA (Zaïre): Par suite des difficultés de circulation dans la ville, je n'ai pu arriver à temps, et je m'en excuse, pour écouter la présentation que M. West a faite sur la question dont nous discutons.
Cela dit, ma délégation voudrait très brièvement joindre sa voix à celle de toutes les délégations qui ont parlé avant elle, notamment les délégations du Cap-Vert, du Bénin, de la Guinée, du Liban, des Maldives, de Cuba, et tant d'autres, pour appuyer la proposition du Conseil tendant à relever le niveau du compte de réserve spécial.
En bref, nous donnons notre plein appui au projet de résolution contenu dans le document C 81/LIM/2.
L. STAMBUK (Yugoslavia): As we all know this matter was discussed at length on the Finance Committee, on CCLM and in the Council. We are well aware that in the last few bienniums FAO did not have sufficient safeguards to implement its Programme of Work and Budget, that is safeguards against the effects of unbudgeted cost increases, negative effects of inflation and of unpredicted fluctuation of currency exchange rates.
We believe that the only possible decision is that the Conference which adopts the Programme of Work and Budget must adopt such mechanisms which provide a reasonable assurance for the implementation of this Programme of Work and Budget. We do not accept the reasoning that this proposal renders undue safeguards to FAO as the Special Reserve Account can only be used under strictly defined conditions.
Before we reveal our position concerning the modifications suggested by the Nordic countries we would very much appreciate hearing the opinion of the Secretariat.
At the end I would like to stress the Yugoslavia delegation reiterates its position indicated in the Council session and fully endorses the proposed resolution.
J.C. SAINSBURY (Australia): Australia has given careful consideration to the changes proposed to the Special Reserve Account at Council and in the Finance Committee. While the Australian delegation understands some of the concerns expressed by several delegates this morning we, however, find ourselves in agreement with the Director-General that the current arrangements applying to the operation of the Special Reserve Account have aproved inadequate in dealing with unbudgeted costs. We recognize that unbudgeted costs, particularly inflation costs, can have a damaging effect on the implementation and effectiveness of work programmes of United Nations agencies, particularly as there are limitations on the extent to which such increases can be absorbed through economies in the regular programmes of those organizations. We had noted particularly that in recent years this has been especially a problem for FAO which has to deal with substantial inflation rates in Italy and often quite significant movements in the exchange rate of the lira. For 1980-81 we note that unbudgeted inflation costs has been estimated to reach 18.5 million as against 5.575 million, which is the maximum amount which can be drawn down from a special reserve account under existing arrangements.
Against this background we have no objection to the proposal that the level of the Special Reserve Account be increased from 2.5 percent to 5 percent of the effective working budget. While we have some reservations in respect to the proposal to transfer approval for withdrawals from the Council we can, however, go along with the proposal that approvals for withdrawals be entrusted to the Programme and Finance Committees.
H. CARANDANG (Philippines): My delegation can go along with the proposed amendment to the Special Reserve Account to render it more effective and responsive to the needs of the Organization.
It has been pointed out that the Special Reserve Account has been established to take care of currency fluctuations. At the time the Special Reserve Account was established we have to admit that the currency fluctuation was within narrower bands. Thus at the time the delegates to the Conference believed that a 2 percent Special Reserve Account was sufficient. But now times have changed, as everybody knows, the exchange rate from lira to the dollar has moved from about 800 lira to about 1,180 at present, which is a movement in the whereabouts of 48 percent. I do not know whether that is still so. The conditions therefore have changed very much. The 2 percent has been judged insufficient to cover such a wide band of fluctuations between foreign currency inflation.
Then it has also been pointed out that inflation has been budgeted for in the Programme of Work and Budget, therefore only 5.6 percent is regarded as real programme increase. Well, I think the provision here states that it is for unbudgeted cost. Therefore if there are no unbudgeted costs there will be no transfers from this Special Reserve Account. I believe we can trust our representatives in the Programmes and Finance Committees to see to it that if there are no unbudgeted costs there will be no transfers from the Special Reserve Account. I think we have sufficient trust in our representatives to this Committee. I therefore believe that the present arrangements have become inadequate and that the changes proposed are required for the efficient managment of the Organization and we can therefore go along with it.
Y. KUROKOCHI (Japan): My delegation would like to make a very brief observation on the proposed modification to the Special Reserve Account. The draft resolution proposed by the Council that is now before us introduces several changes to the current provisions. However, my delegation considers that the account is generally being operated adequately under the present system with the excellent management by the Director-General and his staff and supervision by the Council. Therefore, my delegation is not yet fully convinced of the reasons for amendments.
The Council in its 79th Session considered the proposed amendments and various views were expressed, as quoted in paragraphs 189 to 191 of the Report of the Council meeting. My delegation is of the view that efforts should never be spared to reach consensus among the Member States before deciding upon such an important issue as the one at present.
Having said this, I wish to state the position of my Government on the proposal. Firstly, we are reluctant to give full support to the proposal to raise the limitation to the withdrawal up to 5 percent of the total effective working budget. The increase from the present ceiling of 2.5 percent should, if any, be as small as possible.
Secondly, it is our understanding that despite some difficulties in the last biennium the Special Reserve Account has also functioned as a buffer for inflation and fluctuation in exchange rates and therefore the proposal to take off that limitation would be too drastic a modification and is not acceptable to my delegation.
Thirdly, and finally, since the question with regard to the operation of this account could be controversial, the right to approve the withdrawal should be reserved for the Council and should not be delegated to the Programme and Finance Committees.
RAMADHAR (India): On the item under discussion, my delegation notes that this is not for the first time that we are discussing this item. This matter has been discussed threadbare in the Programme and Finance Committees and also in the Seventy-ninth Session of the FAO Council. Our main concern should be to see how we can maintain the integrity of the programmes approved by the Conference. Experience has shown that in several recent biennia, the full programme has not been achieved owing to the programme cuts which have to be made in order to meet unbudgeted costs.
At present we have an anomalous situation. On the one hand we have $32 million in the Special Reserve Account and Miscellaneous Income; on the other hand we need $18.5 million to meet the unbudgeted costs. In this situation how can we continue to cling to the old restrictive provisions which might have been relevant at some point of time but have become obsolete and do not take the new realities of the new situation into consideration? Against this background my delegation reiterates its strong support of the proposal as well as the Resolution in document C 81/LIM/2.
P. KANGAO (Angola): La delegation a examiné avec une attention toute particulière le projet de résolution qui nous est soumis, étant donné son importance cruciale pour notre Organisation.
Cette question a déjà largement été discutée lors de la soixante-dix-neuvième session du Conseil et, après analyse et approbation du dernier Conseil, elle a notamment reçu l'appui du Comité financier et du Comité sur les questions constitutionnelles et juridiques, qui nous ont d'ailleurs fourni les éléments nécessaires à une réflexion objective et exhaustive. A cet égard, la leçon, tirée d'expériences nombreuses et répétées, est claire. Dans sa forme présente, le Compte de réserve spécial ne sert pas les objectifs pour lesquels il a été créé. Ma délégation ne pourrait s'empêcher, pour sa part, de considérer que s'opposer à la réforme de ce compte spécial ou même tenter d'atténuer certaines modifications proposées serait une attitude qui consisterait à tabler sournoisement sur les effets négatifs d'une forte inflation pour retirer à l'un ce que l'on donne à l'autre.
Parlant des points 26 et 27 sur la reconstitution du Fonds de roulement et du relèvement du niveau du Fonds de roulement, ma délégation approuve totalement la proposition d'augmenter le Fonds de roulement de 5 millions à 13 millions, et celle donnant aussi au Directeur général l'autorité d'emprunter.
Pour terminer, ma délégation approuve la proposition du Secrétariat.
M. GHAZZI (Original language Arabic) (Syria): My delegation has noted that a large majority of the delegations have expressed their support for the amendments to the provisions of the Special Reserve Account. We consider that these amendments will help us to face up to the effects of the financial inflation prevailing in the world today and help us to avoid any cutbacks in the adopted programmes. It should help to ensure the proper administration of the Organization's budget and provide the necessary flexibility in the implementation of programmes.
The experience of the past few years and the gloomy outlook as regards inflation lead us to believe that the proposed increase in the Special Reserve Account of 5 percent is the minimum required that we must adopt. Therefore my delegation supports the draft Resolution submitted on these amendments.
A.W. Bin ABDUL JALIL (Malaysia): I do not want to go into detail on the reasons necessitating the proposed modification to the Special Reserve Account, as these have been discussed and supported fully in previous Council sessions. The prevailing inflationary rates and other financial changes necessitate modification to the Special Reserve account. We therefore want to associate ourselves with other delegates in reiterating our support to the proposed amendments as contained in the draft Resolution.
G. OLIVEIRA (Guinée-Bissau): La délégation de la Guinée,ayant étudié attentivement les amendements proposés par le projet de résolution concernant le Compte de réserve spécial, pense qu'on doit les appuyer tels qu'ils sont présentés dans le document. Les modifications recommandées ne sont que des mesures pour sauvegarder l'intégrité du programme que nous avons approuvé. Toutes les justifications, présentées par les délégués qui m'ont précédé, appuyant cette résolution, sont bien claires. Nous appuyons fermement la proposition de la délégation du Cap-Vert et approuvons le projet de résolution.
P. WANG CHUK (Bhutan): The delegation of Bhutan associates itself with the views expressed by earlier speakers supporting the Director-General's proposal to establish the level of the Special Reserve Account at 5 percent of the effective working budget level. Obviously this proposal will simultaneously require that we remove the present 2 percent on the use of the Account to cover unbudgeted costs of the Organization.
We believe, as other delegations have expressed, that this proposal will give us more flexibility in handling problems that may be caused by inflationary trends and currency fluctuations.
Bhutan also fully supports the proposal that approval in respect of unbudgeted costs be entrusted to the Programme and Finance Committees. This proposal by the Director-General ensures that the Member States will have a say on how such expenditure is handled.
May I also say that the Bhutan joins those delegations which spoke earlier to give the Director-General authority to borrow an increased level of the working capital fund. There is no need to repeat the solid arguments offered by the Finance Committee on the validity of this proposal.
B.M. NAJEM (Langue originale arabe) (Maroc): La délégation du Maroc donne son appui à la proposition et aux amendements proposés par le projet de résolution pour ce qui est du compte de réserve spécial. Cela permettra à l'Organisation de surmonter les difficultés inhérentes aux fluctuations monétaires, à la pression inflationniste, et dues également au paiement tardif de certaines contributions par quelques pays.
Nous sommes également d'accord pour faire passer le plafond de 2,5 pour cent à 5 pour cent du budget opérationnel. Nous devons à notre avis fournir à l'Organisation la capacité de réaliser son programme dans les meilleures circonstances possibles, considérant notamment que ces autorisations tombent parfaitement dans le cadre des dispositions juridiques et légales de l'Organisation.
A. LOUCA (Cyprus): We have studied the document under discussion and we are satisfied with the reasons given in the document why the proposed changes to the Special Reserve Account should be brought about. Although we understand some Of the reservations expressed by some delegations, we find these changes reasonable and necessary to introduce flexibility in order to maintain the integrity of the programme and increase the efficiency of the Organization. Therefore my delegation supports the proposed amendments and the Resolution as it has been placed in front of us.
F. BREWSTER (Barbados): This matter of the amendments to the provisions of the Special Reserve Account was discussed and accepted in the Finance Committee and at the Seventy-ninth Council Session. My delegation considers that the amendments proposed would help the Organization to manage its financial responsabilities with sufficient flexibility to keep its work flowing.
My delegation is agreed that the Secretariat has demonstrated that it is adopting measures which are maximising its efficienty even in difficult circumstances. It is therefore reasonable to support the Resolution as presented. This measure, together with those proposed in Item 20.6, Replenishment of the Working Capital Fund, and Item 20.7, Increase in the Level of the Working Capital Fund, are designed as a package to deal with inflation and an expected short-fall of contributions.
The delegate of Benin has dealt with the latter point, which is to a large extent the heart of the matter. My delegation therefore fully supports the Resolution before us.
A. ÖZTÜRK (Turkey): On behalf of my delegation I wish to give our support to the proposal regarding the amendments to the provisions of the Special Reserve Account. This seems to us to be a very useful and practical measure.
S. AL-LOZI (Original language Arabic) (Jordan): I intended to speak at length on this subject. However, my colleagues who have preceded me have exhaustively covered all the points I wished to deal with. Therefore I can only join other delegations in expressing my delegation' support for the changes to be introduced as set out in the document before us.
H.L. CLAVERIE RODRIGUEZ (Venezuela): Muchas gracias señor Presidente, nuestra delegación ha analizado en todo su contexto las enmiendas propuestas por el Director General a la Cuenta de Reservas desde que las mismas fueron presentadas al Consejo de la FAO, y después de ser analizadas en profundidad por el Comité de Finanzas y el del Programa comprendemos, a cabalidad, las preocupaciones de orden administrativo que aluden algunos críticos a las mismas, pero en general opinamos que privan, dado lo que la experiencia de los últimos tiempos enseña, los criterios suscitados por el señor Director General.
En ese sentido, señor Presidente, nuestra delegación apoya el Proyecto de Resolución incluido en el Documento C 81/LIM/2 sobre la Cuenta Especial de Reserva, el cual autoriza al Director General a ampliar el 5 por ciento del nivel de dicha cuenta. Muchas gracias señor Presidente.
A.A. PASHA (Bangladesh): As regards the level of the Special Reserve Account, my delegation fully endorses the views expressed by many other delegations who support the increase in the level of the Special Reserve Account. As the increase proposed detailed discussion with the Finance and Programme Committees, this 5 percent increase in the level of the Special Reserve Account is proposed purely for the efficient functioning of the Organization. My delegation strongly supports the Draft Resolution before us as presented.
A general deterioration in the pattern of payments has been noted. Moreover, the Director-General was recently informed by some of the contributors regarding the modification of remittance of the contributions. The donor countries want to defer payments progressively within each calendar year. If this is the case in the present economic situation as regards the level of the Working Capital Fund, my delegation feels for a smooth functioning of the Organization that the increase proposed is absolutely reasonable. Previously, the level of the Working Capital Fund was fixed at 6.5 million. As the Working Capital Fund is the first source of finance for budgetary expenditure, and in view of the deteriorating pattern of contributions, the Working Capital Fund may be enhanced as proposed from $6.5 million to $13.25.
C.M. LINYAMA (Zambia): Mr. Chairman, you remember that this subject was discussed in the last Council meeting, and many Members supported it. It will be noted from paragraph 1.89 of C 81/LIM/2, many delegates have urged that the Director-General should consider an approach that might ensure unanimity on this subject, and at the same time most of the delegates and most of the Members have considered that the Account should actually be increased from 2.5 to 5 percent over the overall budget.
Without actually wasting a lot of time, I would like to support what has been said by the delegates of Benin, Guinea, Cuba and Zaire, and my delegation supports that the Draft Resolution before us should be adopted and at the same time the Reserve Account should be increased from 2.5 to 5 percent of the overall budget.
F.M. GUEYE (Sénégal) : Je serai bref pour ne pas répéter ce que les délégués qui m'ont précédé ont déjà exprimé. Je voudrais simplement donner mon appui au projet de résolution qui nous a été présenté par le Secrétariat; et je me joins également à ce qu'ont dit les délégués précédents.
P. ROSENNEGER (Austria) (original language German): The amendment of the Special Reserve Account which is proposed was already discussed at great length at the Council meeting, and this discussion led to the Draft Resolution. Our delegation also feels that in the light of the insecurity of future currency developments and fluctuations or inflation rates, and therefore also delays in contributions by Members, that because of all these facts the Special Reserve Account should be rendered more flexible in accordance with the proposal made by the Secretariat so that the work of the FAO, bearing in mind unforeseen circumstances, can take place without any friction.
Even though Austria certainly belongs to the very prompt payers of contributions, and as the delegate of Canada quite rightly said, we therefore indirectly are being punished by this proposal. In spite of this, we would like to support the proposed Draft Resolution in all its points as laid down in document C 81/LIM/2, because we feel that the FAO should have the possibility of operating without any difficulties. We believe that this is very important, and furthermore, we would like to say that the Secretariat of FAO enjoys our full trust.
O.A. JUMA (Tanzania): The Tanzanian delegation would like to add its support to the views already expressed by many speakers that the current provisions of the Special Reserve Account are inadequate to cope with inflation and other unbudgeted accounts. In this respect, we also share the concern of the Council that many programmes approved by the previous Conferences could not be fully implemented owing to the impact of programme cuts which had to be made to meet unbudgeted costs. This is very serious, because cutting of the Programme has damaging effects not only to the regular programmes but also to the field projects, some of which are ongoing.
We do not want to repeat points which have already been made by other delegates, but we fully support the views expressed by Cape Verde and Benin. The Tanzanian delegation therefore would like to support the proposed amendment and flexible arrangement for the Special Reserve Account including an increase in the level of the Account to 5 percent of the effective working budget, hence our support for the Draft Resolution.
Sra. M. IVANKOVICH DE AROSEMENA (Panamá): En esta oportunidad deseamos referirnos a las enmiendas a la disposición de la Cuenta Especial de Reserva. El documento nos detalla la situación que ya fue estudiada por el Comité de Finanzas y por el Consejo.
Mi delegación considera, y así lo manifestamos anteriormente, que las enmiendas sugeridas están encaminadas a hacer más efectiva la utilización de la Cuenta Especial de Reserva de forma que responda a las necesidades de la Organizacón y proteja el Programa de Labores contra los efectos de los gastos adicionales no presupuestados producidos por fluctuaciones monetarias adversas y tendencias inflacionarias imprevistas.
Mi delegación considera también que el aumento del nivel de la Cuenta Especial de Reserva al 5 por ciento es una garantía para el eficaz cumplimiento del Programa.
Estamos de acuerdo con que se eleve el nivel de la Cuenta Especial de Reserva y se elimine la limitación del uso de la Cuenta para sufragar gastos adicionales no presupuestados.
En conclusión, mi delegación está plenamente de acuerdo con el Proyecto de Resolución adjunto por considerarlo un mecanismo de garantía para la Organización.
M. CARRASCO-SAULNIER (France): Ma délégation a déjà eu l'occasion d'exprimer son opinion sur les propositions relatives au Compte de réserve spécial, lors des dernières sessions du Conseil. Je ne ferai donc que rappeler que nous avons déjà accepté le relèvement du niveau du compte, encore que nous aurions préféré que soit maintenu un plafond pour les prélèvements destinés à couvrir les dépenses supplémentaires non inscrites au budget. Cela dit, ma délégation est prête à se rallier à l'attitude de la majorité.
Puisque j'ai la parole et que le problème du retard apporté par certains pays à verser leurs contributions budgétaires a été soulevé ce matin par quelques délégations, je voudrais annoncer - et je pense que cette bonne nouvelle fera plaisir à Monsieur Skoufis - que la France est, depuis plus d'un mois, en règle avec ses obligations financières à l'égard de la FAO. En effet, la somme de 4 370 466 dollars qui restait due par mon pays pour l'année 1981 a été ordonnancée à Paris le 13 octobre. Cette somme doit ¿une se trouver, depuis quelque temps déjà, sur le compte de la FAO à la Chase Manhattan Bank à New York. Il conviendrait donc que les services compétents de la FAO s'en assurent.
K. TANDUCHEV (Bulgarie): Prenant pour la première fois la parole dans cette Commision je voudrais m'associer aux délégations déjà intervenues pour vous féliciter de votre nomination à la présidence de la Commission III.
Je ferai une très brève intervention. Constatant que les amendements proposés au Compte de réserve spécial ont pour but de faciliter la gestion de l'organisation et d'assurer l'accomplissement continu du programme de travail de la FAO, notre délégation appuie pleinement le projet de résolution traitant du Compte de réserve spécial dans le document C 81/LIM/2.
H. CARRION MC DONOUGH (Nicaragua): Mis felicitaciones al Presidente de esta Comisión y al señor West por su introducción al tema que nos ocupa.
Señor Presidente, deseo ser breve porque considero que muchas delegaciones han expresado ya opiniones, que la delegación de Nicaragua comparte plenamente. Me refiero a que mi delegación apoya la propuesta de Resolución sobre la Cuenta Especial de Reserva que ahora tenemos ante nosotros. El tema ha sido suficientemente discutido en el Comité de Finanzas del Programa y del CACJ y ha sido considerado por el Consejo.
Las propuestas de enmiendas a la Cuenta Especial de Reserva contenida en el documento C 81/LIM/2 y en su párrafo 187 refleja simplemente la necesidad de adecuar dicha Cuenta a una realidad económica y material.
Igualmente, mi delegación está de acuerdo con el Proyecto de Resolución sobre el reembolso del Fondo de Operaciones y sobre el aumento del Fondo de Operaciones contenido en el documento C 81/LIM/16 y 17.
T.E.C. PALMER (Siera Leone): If the FAO is expected to achieve maximum results it should be provided with adequate financial means to cover unbudgeted costs. Given the world currency fluctuations, it is my delegation's view that the most realistic way to provide support to the Organization is to approve an increase in the level of the Special Reserve Account to no less than 5 percent of the working budget.
In view of this, I wish to join my colleagues from Senegal, Tanzania and Zambia in supporting the draft resolution submitted to this Commission.
M. G. SILOU (Congo): Est-il besoin de rappeler que l'inflation ne cesse d'aggraver la situation monétaire mondiale? Il serait tout de même hasardeux que nous placions notre organisation dans une situation critique susceptible d'entraver son bon fonctionnement.
Notre délégation a examiné avec attention le document C 81/LIM/2 qui nous est soumis. Si nous tenons compte des fluctuations monétaires, le plafond actuel du fonds de réserve ne suffit plus pour couvrir les dépenses non inscrites au budget.
Nous nous rallions par conséquent à l'idée que le niveau du compte de réserve soit relevé à 5% pour rendre efficace l'application du programme. Nous estimons que c'est là un minimum nécessaire.
Nous avons confié au Directeur général une mission, celle qui consiste à réaliser dans l'espace et dans le temps le programme de travail qui a eu notre accord. Notre dernière attitude, raisonnable, est de mettre à sa disposition les moyens financiers nécessaires lui permettant de faire face aux situations critiques qui peuvent apparaître ici et là.
R. F. MEIRA FERREIRA (Portugal): My delegation would like to make a brief statement and say it is, in principle, in accordance with the spirit of the draft resolution regarding the amendments to the provisions of the Special Reserve Account, C 81/LIM/21.
Currency fluctuations and inflations are facts which cannot be denied; but the problem which we just face is also due to non-payment in time of the contributions of several Member Nations. We feel this situation is not sufficiently reflected in the draft resolution under consideration. Understanding the reservations of some delegations, we would like to make an appeal to the fellow members of this Organization that we should all give careful attention to the problem of payments of contributions and to avoid some of us being penalised by the position of others - as stated by the distinguished representative of Canada - although this is sometimes understandable due to momentaneous difficulties.
G: F. DLAMINI (Swaziland): My delegation has studied carefully the implications of the draft resolution as tabled in the document C 81/LIM/2, and I would like to state that the views of my delegation were well expressed by the delegations, from Benin and Cape Verde. Since brevity is the soul of wit, all that is left for my delegation is to support the draft resolution as it stands.
M. S. HALADOU (Niger): Nous restons surpris que nous nous attardions à spéculer sur une règle classique de gestion financière. Nous acceptons de geler les fonds et approuvons parallèlement une entente tacite dans le versement des contributions.
Les modalités de prélèvement dans le compte de réserve spécial sont bien précisées et ne modifient en aucun cas l'exécution du programme de l'Organisation.
Sans plus nous attarder, nous ne pouvons qu'appuyer sans réserve la déclaration de notre collègue du Cap-Vert.
Mrs. SAODAH SJAHRUDDIN (Indonesia): My delegation has studied the document C 81/LIM/2 carefully, and we feel that the proposed amendment will make the FAO more effective and solve the financial problems which will be faced by the Organization in the future. Therefore we have nothing to say but to reiterate our support, which was expressed during the last Council Meeting, on the proposals regarding the amendment to the provisions of the Special Reserve Account.
Hence we support the draft resolution for approval by the Conference.
SEÑORA. M. RUIZ ZAPATA (Mexico): Seré muy breve. Simplemente deseo reiterar que México, como lo ha manifestado en anteriores ocasiones, apoya el Proyecto de Resolución relativo a las enmiendas a la disposición de la Cuenta Especial de Reserva.
T. SIMIKI (Tonga): The delegation from Tonga joins those who spoke earlier who support the Director-General's proposals on both the Special Reserve Account and the Capital Working Fund. The Special Reserve Account, as you all recall, was set up almost four years ago with $5 million. At that time we wrote in a provision for subsequent replenishment at the level of 2.5 percent of the total effective working budget for the following biennium.
Experience of the past four years shows that this level is far from adequate. We simply did not anticipate the wide fluctuations of currency re-adjustments that occurred, especially during the present biennium. Double-digit inflation is a fact of life. The fact that the large majority of the Council members agree that the Special Reserve Account should be increased to at least 5 per cent of the effective budget is a simple recognition of the facts of economic life today.
We fully agree, therefore, with this upward adjustment and agree that approval for such withdrawals should be delegated to the Programme and Finance Committees by the Council.
During the Session we will be discussing a related item, namely the increase in the Working Capital Fund. The delegation of Tonga supports the views of the Finance Committee to increase the Capital Working Fund.
M. T. GLASSER (Suisse): Après tous les orateurs qui m'ont précédé, je n'ai pas de nouveaux éléments à apporter à ce débat. Je me limiterai donc à une remarque générale très brève. J'aimerais tout d'abord reprendre un élément de l'intervention du Canada, également mentionné par l'Autriche et le Portugal, d'après lequel les pays Membres qui respectent les règles et paient leur contribution à temps sont pratiquement pénalisés puisqu'ils doivent par la suite participer aux frais entraînés par les pays qui paient leurs contributions avec retard. Cet état de chose n'est pas satisfaisant et mériterait un examen plus approfondi.
Cela dit, Monsieur le Président, je reviens à la proposition qui est devant nous. Dans cette période économiquement incertaine et instable que nous vivons, le Secrétariat a certainement bien fait de nous . proposer des mesures de sécurité pour assurer une saine gestion financière de l'Organisation. Mais, avec les trois éléments proposés, on risque de dépasser le but et de bloquer plus de fonds qu'il ne serait nécessaire.
Les fonds limités dont dispose la FAO devraient être utilsés au maximum au profit des buts prioritaires de l'Organisation. Or, avec la proposition qui nous est maintenant soumise, j'ai l'impression qu'on s'offre une assurance un peu de luxe au détriment d'actions de programme plus prioritaires.
Y. GAGO (Costa Rica): Mi delegación quiere asociarse a las numerosas delegaciones que han apoyado el Proyecto de Resolución sobre la Cuenta Especial de Reserva.
No repetiremos los argumentos expuestos por numerosos delegados, y de esta forma quiero reiterar nuestro apoyo al Proyecto de Resolución contenido en el documento C 81/LIM/2 sobre la Cuenta Especial de Reserva.
IANG YUN (China) (Original language Chinese): In considering the present item Mr West has given us a very good explanation of the present proposal. In our view the Special Reserve Account could go a long way to resolving the problems brought about by inflation and the necessity to meet the unbudgeted costs. This is also a way to ensure that we would be in a position to effectively carry out the programme approved by the Conference.
Consequently, our delegation goes along with other delegations in supporting the proposals put forward in Document C 81/LIM/2 as well as the Draft Resolution contained in this document. It is very necessary to increase the level of the Special Reserve Account.
In our view this is also another measure to meet the cost of our activities in this Organization and in the short term it could also solve our financial difficulties.
C. SUVIPAKIT (Thailand): The Thai delegation associates itself with the previous speakers to increase the level of the Special Reserve Account from 2 percent to 5 percent for the carrying out of the effective Programme, so as to meet the expansion of food and agriculture production in the coming years. Thailand supports this proposal and we also support the increase of the Working Capital Fund.
C. FERROGGIARO (Chile): Deseo ser muy breve y sólo manifestar que mi delegación apoya el Proyecto de Resolución referido a la Cuenta Especial de Reserva, aumentándose estos fondos al 5 por ciento y otorgando al señor Director General la flexibilidad necesaria para su empleo, a fin de que pueda desarrollar los diferentes proyectos del Progama de Labores.
Refiriéndome a los aportes de los países que han mencionado delegaciones precedentes, deseo manifestar al señor Presidente, sin que esto se tome como una petulancia, que mi país ha anticipado parte del aporte en efectivo que le corresponde para el año 1982, por cuanto está consciente de las necesidades de la Organización.
J.W. HUTCHINSON (United Kingdom): My delegation would just like to repeat the reservations it expressed at the 79th Session of the Council. We consider that any increase in the Special Reserve Account should be kept to an absolute minimum. We also wish the Council to retain the right to approve the use of the Special Reserve Account. We consider that this responsibility should not be devolved to its subsidiary committees. The General Rules of the Organization provide for the Council to hold sessions as often as it considers necessary so, there should be no difficulty in arranging a special session quickly if an emergency arose.
J.F. MWENECHANYA (Malawi): Many delegates have given many good reasons for supporting this very important draft resolution. I do not propose to repeat any of the arguments so far given. All I would like to do is to ask you, Mr. Chairman, to put the Malawi delegation on record as being in support of the proposed draft resolution as it stands.
M.A. AZAMI (Afghanistan): In order to be brief and not repeat what other delegates have stated, I would like to mention that my delegation, too, fully supports the proposed amendments and the draft resolution before us.
S. GRASSOS (Original language Arabic)(Yemen, People's Democratic Republic of): After studying document C 81/LIM/2 with due attention, we would like to express our support what is in this document. We would like to provide the Organization with the means to respond to the difficulties it encounters. We can but support everything in this document, and that has been said by many other speakers.
H.S. BAR-SHAI (Israel): I would like to suggest to add to the draft resolution a clause to the effect that steps be taken to insure the value of surpluses which may occasionally accumulate for longer periods, for example a month or more, in the Special Reserve Account, for instance, such an amount can be invested in a certain basket of hard currency decided upon with the International Monetary Fund, so as to ensure as much as possible the real value of such surpluses. Of course this has to be based as much as possible on a forecast of incomes and expenses and in relation to the foreign exchange regulations of the host Government, but I am sure the Secretariat is in a much better position than I am to do this.
M.M.T. DIARRA (Mali): Permettez-moi, Monsieur le President, de vous adresser nos félicitations pour votre élection à la présidence de cette commission.
La délégation malienne a examiné avec attention le document C 81/LIM/2 relatif au compte de réserve spécial.
Ma délégation, considérant que les propositions d'amendements sont susceptibles de faciliter l'exécution par la direction de la FAO des différents programmes, joint sa voix à celle de la majorité pour appuyer entièrement le projet de résolution qui nous est soumis.
Mme G. ROSSI PEROTTI (Italy): My delegation would like to put on record our support of the draft resolutions concerning the Special Reserve Account and the Working Capital Fund contained in the document C 81/LIM/23.
A.M. FROMOYAN (Liberia): With regard to the amendment and particularly the request for an increase in the level of the Special Reserve Account, and in view of the situation with regard to inflation rates, my delegation reiterates without further detailed justification its support of the draft resolution before us.
A. EXARCHOS (Greece): I should like to express the support of our delegation for the draft resolution concerning the Special Reserve Account. The proposals before the Conference are the result of long and serious examination by the Finance Committee and the Council. With more special reserve to the Special Reserve Account, we think that the resolution provides a flexible and practical framework to protect the Programme against inflation and monetary instability, and gives the Director-General a wider possibility to cope with the exceptional situation.
P.M. AMUKOA (Kenya): I would like to join those who have supported the draft resolution on the Working Capital Fund and adjustment of the Special Reserve Account. We have done this before for reasons we gave at the time, and which have been given this time.
M.I. MAHDI (Original language Arabic) (Saudi Arabia): This question has been discussed in the Finance Committee and in the Council and we would like to reiterate our support for the two draft resolutions as per the recommendations of the Finance Committee during its 48th Session, which recommendations were adopted unanimously by the Council.
K.S. BINGANA (Botswana): My delegation fully supports the amendments to the provisions to the Special Reserve Account and the draft resolution thereon.
We fully support the replenishment of the Working Capital Fund and the increase in its level as proposed by the Secretariat.
M.F. DE MENEZES (Sao Tome-et-Principe): Comme celle-ci est la première fois que nous prenons la parole au sein de cette commission, permettez-nous Monsieur le Président, de vous féliciter ainsi que les autres membres du Secrétariat pour votre élection à la présidence de ses travaux.
Pour ce qui a trait au document que nous analysons actuellement, nous serons brefs et nous apportons notre appui aux propositions faites par les délégations du Cap-Vert, de l'Angola, de la Guinée-Bissau.
E. M. WEST (Assistant Director-General, Office of Programme, Budget and Evaluation): I think that out pressed their opposition or their reservations in one form or another. There are only a very few points I would like to deal with. First, on the subject of payment of contributions, of course we wholeheartedly agree with those who have urged other Member Governments to pay up promptly and I am very glad to hear the news from France. We have not yet found the cheque but we are trying hard. Perhaps it is somewhere in the Chase Manhattan Bank, but it is not with us. However, I accept the assurance, and that will help matters.
That leads me to the point that it is only a very few countries who actually account for the large amount of contributions still outstanding; and two who today have spoken against this proposal are in fact responsible for 46 percent of the outstanding contributions. If they paid up, then we would not have a problem with the contributions this year, of any significance. One of them, sitting over there, accounts for the greater part of that. I think I should point out to the delegate concerned that his Government owes us more than ten million dollars, and yet he is opposing these proposals.
The suggestion was made that we are asking for an excessive, even luxury, insurance. I would still say respectfully that what we are asking for is very modest and I think this has been endorsed by the great majority today.
The United Kingdom said that it would be easy to hold a special session of the Council. Well, I can only answer him that a two weeks session of the Council would now cost one million dollars; a one-week session would cost anything from a quarter of a million to half a million, dependent on the documentation to. be provided. Since the Conference elects a Council, which in turn elects a Finance Committee, I cannot myself recommend to the Director-General that it is worth spending half a million dollars to try and save a million, or two million or three million, or whatever it is. I do not think that is a very rational way of managing the Organization's finances.
I would also point out on the question of management, by the way, that if you look back to table Q on page 52, the Programme of Work and Budget, you will see how the Organization has been obliged to make, and has in fact always made, savings when necessary and the resolution before you still provides for the Secretariat to make all possible savings before using the Special Reserve Account.
Finally, an interesting suggestion was made about the use of SDRs or other means of trying to safeguard us against currency fluctuations. This was gone into at great length three or four years ago on behalf of the whole of the United Nations and a study was submitted to the General Assembly and it was felt then that the system would not be helpful in fact and that the best solution to the problem was for each organization to establish such reserve funds and as suited its circumstances. Now this could be looked at again in the future and we shall look at this together with other organizations in the United Nations system.
C. LAMBERT (Canada): J'essaierai d'être bref. Mais ce n'est pas la première fois que nous entendons le Secretariat nous rappeler - les pointant, à défaut du doigt, tout au moins du coude - que certaines délégations n'ont pas payé leurs contributions. Il nous parle de 46 pour cent. Ce sont effectivement des sommes importantes.
J'aimerais aussi, pour équilibrer cette déclaration, rappeler qu'il y a encore 54 pour cent qui ne sont pas payés. Le Canada a toujours soutenu le droit de toutes les délégations à avoir une voix égale dans les assemblées internationales. Nous nous sommes encore battus pour ce principe au Conseil de juin. Avec ce droit viennent, cependant, des responsabilités égales. Les contributions sont proportionnelles aux capacités de chaque Etat Membre à payer. Nous avons hier, dans cette même Commission, accepté l'échelle des contributions pour le prochain biennium. A l'exception d'une seule délégation, toutes les délégations ont accepté cette échelle. Cela répond donc à leur capacité à payer. Et j'aimerais donc, dans le cadre des appels lancés, soit par le Secrétariat soit par les membres, que l'appel soit lancé également à toutes les délégations pour que le paiement soit effectué. Nous avons besoin autant des 54 pour cent que des 46 pour cent.
20.6 Replenishment of the Working Capital Fund
20.6 Reconstitution du Fonds de roulement
20.6 Reposición del Fondo de Operaciones
20.7 Increase in the Level of the Working Capital Fund
20.7 Relèvement du niveau du Fonds de roulement
20.7 Aumento del nivel del Fondo de Operaciones
E. M. WEST (Assistant Director-General, Of fice of Programme, Budget and Evaluation): The basic reference for this is in the Finance Committee Report, CL 80/4 of the 3-5 November and the corresponding section of the Council report, of which I do not have the immediate reference, but I think you have it before you in a LIM document.
At the risk of being contradicted, this is a routine item. We obtained authority from the Council to make drawings up to 5.49 million dollars and these will have to be replaced at the end of the year. Thus the resolution is put before you and is in line with similar resolutions in the past.
Whilst I have the floor I will go on to the introduction of the next item, which is the increase of the level of the Working Capital Fund. The item I have just mentioned is for the Working Capital Fund at the end of this year. The increase in the level is proposed for the next biennium. This is explained in paragraphs 353-360 of the same Finance Committee Report and the corresponding section of the Council Report that follows. I do not think I need go into the reasons but the fact is that the present level of the Working Capital Fund is a very, very small proportion of the effective working budget. It is much smaller than is the case in other Organizations. We are not suggesting a fixed percentage in this case but an amount which will correspond to roughly 3 percent only of the effective working level and will not be affected by any change in the next biennium or after, unless further changedin the future. The need for it is exclusively, almost exclusively, the problem we are going to face with delays in payments of contributions. I do not think we need discuss this further because you have had a discussion about this already. As regards the point just made by the delegate of Canada, of course, I agree with it. It is incumbent upon those responsible for 54 percent of the total of the other outstanding contributions to pay just as much as it is for the others. There is no doubt about that. The point I was making was purely a statistical one.
With that I think I need not add to the time spent on this item. If necessary I will come back later.
R.A. SORENSON (United States of America): My delegation joins with other delegations to the 80th Council in thoroughly reviewing the draft resolution that we are considering with respect to the level of the Working Capital Fund and also with respect to its replenishment. While agreeing to the replenishment of the Working Capital Fund with respect to its enlargement the position of my Government remains as expressed in the Council. In our view the enlargement of the Working Capital Fund is the equivalent to an additional assessment on the Member states since a certain portion of each nation's share of FAO's cash surplus that could otherwise have been credited towards that country's assessment will now be captured and retained, sterilized if you will, in the larger Capital Working Fund. The real effect, therefore, is to levy an additional assessment on every Member state. Several members of this Commission have already expressed themselves of being in favour of enlarging the Working Capital Fund at the same time as they stated their positions on the Special Reserve Account. We hope that they understand that the additional 6,750,000 being requested will have to be found by their national treasuries, in addition to approximately $11 million for the Special Reserve Account and this will be based upon the United Nations scale of assessment and it will have nothing to do with effectively enlarging the Programme.
It is for these reasons that my Government cannot support the draft resolution under consideration.
D.R. SHARMA (Nepal): My delegation wishes to support the proposal to increase the Working Capital Fund from 6.5 million to $13.25 million. It would, of course, have been preferable if we had not been obliged to consider this matter but we have no alternative in view of the problems of contributions which have arisen this year and which will probably arise in the future. It is quite clear that it is necessary to increase the Working Capital Fund, even with an enlarged Special Reserve Account, and even if the Director-General is given authority to borrow.
The basic purpose of enlarging the Special Reserve Account is to allow room for the wide range that experience shows can occur in the accumulation of unbudgeted costs or in the effects of currency fluctuation. You should never overlook the possibility of a shortfall in contributions, which is a totally different matter. The main resource for coverage of unbudgeted contributions has always been the Working Capital Fund. It is now obviously much too small in relation to the budget level which has grown so much as the result of inflation. Unlike the Special Reserve Account the level of the Working Capital Fund is a fixed amount of $6.5 million and not the percentage of the budget level. This does not make sense whilst contributions which are also calculated in a percentage of the total budget are rising again mainly as a result of inflation. We are not advocating that the Working Capital Fund should be calculated as a percentage, but we do think that it ought to be nearer the level which exists in other organizations. We understand that this ranges from 2.23 percent to 14 percent in the largest organizations. From this point of view, therefore, we think that the Director-General's proposal to increasing the Working Capital Fund by an amount which will make it equivalent to 3.6 percent of the budget, as presented to us in C 81/3, is very reasonable. The new total of 13.25 million dollars will not, of course, cover outstanding contributions at the level experienced in the middle of 1981 but it is more realistic in relation to the kind of normal shortfall that can be expected.
It is regrettable, however, that we may be faced with an abnormal situation in which at least one major contributor intends to pay its contribution up to a year late. That is why we need to give the Director-General authority to borrow, as well as enlarging the Working Capital Fund. My delegation therefore strongly supports the proposal.
L. STAMBUK (Yugoslavia): I would like to say a few words on the Working Capital Fund first. Let us all be reminded that the level of the Working Capital Fund was fixed at the same level for a number of years. We are of the opinion that the Working Capital Fund should reach a level which would enable FAO to fulfill its committments in an efficient manner, especially if we have in mind the statement of some delegations that they will render the contribution in the last quarter of each year.
I would like to agree with the statement of the delegate of Nepal and to state that the Yugoslav delegation strongly supports the proposal.
P.A. MORALES CARBALLO (Cuba): Nuestra delegación quiere expresar su apoyo al proyecto de resolución sobre el aumento de la cuantía de Fondo de Operaciones.
Creemos que esta es una propuesta muy objetiva, sobre todo si se toma en cuenta la demora que viene presentándose en la recaudación de las cuotas, en niveles ya preocupantes. Es decir, que ante esta situación es necesario asegurarle al Director General de la FAO los mecanismos financieros necesarios que sirvan para afrontar esas situaciones negativas y garantizar la ejecución del Programa Ordinario.1/
A. Constitutional and Administrative Matters (continued)
A. Questions constitutionnelles et juridiques (suite)
A. Asuntos constitucionales y jurídicos (continuación)
17. Other Constitutional and Legal Questions (continued)
17. Autres questions constitutionnelles et juridiques (suite)
17. Otras cuestiones constitucionales y jurídicas (continuación)
CHAIRMAN: We still have an item listed on the agenda, Item 17, Other Constitutional and Legal Matters. Under this item nothing has been referred to the Committee so far and we have thus concluded our proceedings.
The Meeting rose at 12.15 hours.
La séance est levée à 12 h 15.
Se levanta la sesión a las 12.15 horas.
1/ Texto incluido en las actas a petición expresa.
