35. The Council noted the views expressed in the joint and separate Reports of the Programme and Finance Committees and supported these.
36. In particular, the Council confirmed the views of the two Committees that the full Programme of Work and Budget followed the lines endorsed by the Council in the discussion at its Seventy—fifth Session. The Council also confirmed the validity of the strategies, priorities, and programmes proposed by the Director—General, on which there was full consensus.
37. Several members noted with concern that the budget level proposed (at 879 lire to the US dollar) remained the same notwithstanding developments in programme demands and in costs which would justify a higher level.
38. The great majority of the Council felt that the budget level proposed was the minimum necessary to meet the needs of countries and of the world food situation. It expressed the hope that those countries which had reserved their views on the budget level or who declared that it was still under consideration by their governments, would feel able during the Conference to join the consensus.
39. On this basis, the Council endorsed the Director-General’s proposals in their entirety and recommended them to the Conference for adoption.
40. The Council supported the views expressed by the Programme and Finance Committees on the first issue, covering the 1978—79 biennium, of the Review of the Regular Programme.
41. It noted that the document had been prepared in accordance with suggestions made at previous sessions of the Committees and of the Council and Conference, and felt that it constituted a good beginning.
42. The problem of overlapping with other documents had already been discussed earlier 3. It was also felt that the evaluation of impact had been difficult in view of the fact that the activities of the Regular Programme required considerable time before their impact was realized. It was considered therefore that it would be desirable to cover the progress of the programmes over a period longer than that of the biennium in question.
43. The Council felt that a constant effort should be made to deepen the analytical content of the Review, and agreed with the Programme Committee that in future it might be desirable to select, for in—depth examination, special topics which cut across programme lines.
44. The Council also noted that the evaluation process in FAO encompassed not only auto—evaluation by programme managers, which might not in all cases ensure full objectivity; the work of the Evaluation Service was another important component, and outside consultants were also called upon for special evaluation tasks such as the review carried out on the Technical Cooperation Programme.
45. In conclusion, the Council felt that the findings of the Review reflected the support which had been given by the Governing Bodies to the priority programmes of the Organization.
46. The Council agreed with the view of the Programme Committee that the Review of Field Programmes, 1978—79, had taken full account of the recommendations of th Nineteenth Session of the FAO Conference, particularly in regard to the inclusion of charts and summary tables in the text and the choice of special subjects. The Council felt that the document as presented provided a keen insight into the Organization’s field activities.
47. While the document would be commented on in detail during its review by the forthcoming session of the Conference, the Council expressed concern about the falling share of technical cooperation activities in the total allocations for official development assistance to agriculture. The Council was equally concerned with the stagnation in real terms in FAO’s extra—budgetary resources and its diminishing share as an executing agency in total UNDP allocations.
48. It was suggested that these trends should be analysed carefully on a continuing basis. It was also suggested that the FAO Conference might wish to stress the need to increase allocations for technical cooperation in the field of agriculture, recognising at the same time the key role of FAO as the international specialized agency competent to identify and execute agricultural projects.
49. The Council recognised the continuing improvements in the quality of field projects executed by FAO and expressed the conviction that the Director—General would go on taking appropriate steps to ensure that these improvements continued.
50. The Council emphasized the irnportance,value and cost—effectiveness of Technical Cooperation Programme (TCP) projects, the importance of training and institution building, the role of national directors and staff in the execution of field projects, the importance of women’s participation in development projects and the need to pay still more attention to nutritional considerations in the design of field projects.
51. The Council was informed that the Secretariat was preparing two comprehensive reports on training which would be submitted to the Programme Committee and the Council in the course of 1980.
52. The Council noted the views of the Programme and Finance Committees.
53. The request was made that inter alia FAO should continue to help reduce food dependency in the Third World, promote agrarian reform and rural development, forms of producers’ associations. adequate technologies and equitably owned agroindustries. It was also suggested that present and future generations would suffer if the world continued to have more war power than food power.
54. The Council further noted that the medium—term objectives would be discussed in depth at the Conference.
55. The Council considered the Progress Report on the Action Programme for the Prevention of Food Losses (PFL) and noted that by July 1979 a total amount of $12.1 million had been made available to the Special Account and that in addition specific pledges to a total amount of approximately $3.5 million had been made.
56. The Council further noted that in order to finance requests received to date, the resources available to the PFL Programme at present should be increased by at least ten million dollars, The Council welcomed the pledges made to the PFL Programme under Trust Fund arrangements, but stressed the importance of reaching the target of $20 million in voluntary contributions to the Special Account by the end of 1979,.and the same amount for future biennia as recommended by the Nineteenth Session of the FAO Conference and the Second Session of the Committee of the Whole of the UN General Assembly.
57. The Council further noted with interest the satisfactory results achieved in identifying and locating experienced manpower for the implementation of PFL projects and also that the experience available in national institutions was utilised in the execution of the Programme’s activities.
58. Under this item the Council noted the views of the Programme and Finance Committees on various matters. These comprised the overlapping in certain major Conference documents 8/; the Review of FAO Statutory Bodies; Programme and Budgetary Adjustments; the Status of Contributions; Contributions in Arrears; the Scale of Contributions; the Status and Replenishment of the Special Reserve Account; the Status and Replenishment of the Working Capital Fund; the Audited Accounts; the Actuarial Review of the Staff Compensation Plan and Headquarters Accommodation.
59. With regard to overlapping in major Conference documents, the Council agreed the subject should be reviewed in detail by the Programme and Finance Committees which should make recommendations to the Council at its session in November 1980.
60. The Council noted that as a result of the weakening of the US dollar substantial unbud— geted costs had been incurred. If the rate of exchange remained at its current level, these additional unbudgeted costs would be likely to reach some $3.5 million for the biennium.
61. The Council noted that,.in accordance with Conference Resolution 27/77, these costs would be charged to the Special Reserve Account leaving a balance on the account of about $1.5 million at 31 December 1979.
62. The Council recalled that, in accordance with Conference Resolution 27/77, the balance of funds remaining in the Special Reserve Account at the end of 1978—79 biennium would be carried forward for use in 1980—81 up to an amount equivalent to 2.5 percent of the total effective working budget for the biennium. In the event that the balance in the account at the end of the biennium should not attain the level of 2.5 percent of the effective working budget, proposals would have to be submitted through the Finance Committee and Council concerning ways and means of bringing the Special Reserve Account up to that level.
63. The Council, noting that a cash surplus was expected in the 1978—79 biennium, endorsed the Director—General’s proposal that the funds required to raise the Special Reserve Account to the level of 2.5 percent of the 1980—81 Budget be obtained from this cash surplus and recommended the following draft resolution for adoption by the Conference:
DRAFT RESOLUTION FOR THE CONFERENCE
REPLENISHMENT OF THE SPECIAL RESERVE ACCOUNT
THE CONFERENCE,
Recalling that at its Nineteenth Session it established a Special Reserve Account to assist in protecting the Organization’s programmes of work against the effects of unbudgeted extra costs that may arise in the 1978—79 biennium or in any subsequent biennia due to adverse currency fluctuations and unbudgeted inflationary trends,
Noting. that up to 30 September 1979 $2 496 000 had been withdrawn from the Account to cover unbudgeted extra costs arising from currency fluctuations,
Noting further that, provided the rate of exchange for the lira remains around I US$ = 830 lire for the remainder of 1979, further amounts would have to be withdrawn and that the balance in the Special Reserve Account at the end of 1979 was likely to be around $ 1 500 000,
Considering that in accordance with Conference Resolution 27/77, the level of the Special Reserve Account should be raised to a level calculated on the basis of 2.5 percent of the 1980—81 effective working budget at the lira rate as decided by the Conference,
Considering also that, provided Member Nations pay their contributions in good time, a cash surplus is expected,
Decides that, notwithstanding the provisions of Financial Regulation 6.1 (b), such portion of this cash surplus as is required to bring the level of the Special Reserve Account to 2.5 percent of the 1980—81 effective working budget shall be withheld and credited to the Special Reserve Account.
64. The Council noted that, in accordance with Conference Resolution 17/69, as amended by Conference Resolution 33/75, the Director—General had withdrawn in June 1978 the sum of $350 000 from the Working Capital Fund for emergency action against desert locusts in the Red Sea Area.
65. The Council agreed that as the countries affected were all included in the category of Least Developed Countries it would be unrealistic to expect reimbursement from these countries.
66. The Council, noting that a cash surplus was expected in the 1978—79 biennium, therefore proposed that the reimbursement to the Working Capital Fund be made from this cash surplus and recommended the following draft resolution for adoption by the Conference:
DRAFT RESOLUTION FOR THE CONFERENCE
REIMBURSEMENT OF WORKING CAPITAL FUND FROM CASH SURPLUS 1978-79
THE CONFERENCE,
Noting that the Director—General under the provisions of Conference Resolution 17/69, as amended by Conference Resolution 33/75, and acting on the recommendation of the Advisory Panel of Expert's set up to advise him on initial control activities against locusts and after consultation with the Chairman of the Finance Committee, had withdrawn $350 000 from the Working Capital Fund for emergency locust control operations in the Red Sea Area,
Noting that $350 000 had been expended out of this withdrawal,
Further noting that, if Member Nations pay their contributions in good time, it is estimated that there will be a cash surplus in the 1978—79 biennium,
Recalling that in accordance with Financial Regulation 6.5(b) advances made from the Working Capital Fund to finance emergency expenditure shall be reimbursed by such method as the Conference determines,
Decides that, notwithstanding the provisions of Financial Regulations 6.1 (b), $350 000 of that surplus shall be withheld and used to reimburse the Working Capital Fund.
67. The Council reviewed the above accounts and noted the comments of the Finance Committee.
68. The Council endorsed the External Auditor’s recommendations and noted the Director-General’s assurance that effective measures were now in force to remedy the deficiencies mentioned in the External Auditor’s report.
69. The Council reviewed the above accounts and noted that the Finance Committee had reported separately to the Committee on Food Aid Policies and Programmes (CFA) on operational matters referred to in the External Auditor’s report.
70. The Council forwarded the above audited accounts together with those reviewed by it at its Seventy—fourth Session to the Conference in accordance with the provisions of Rule XXIV—3(b) CR0 and recommended the following draft resolution for adoption by the Conference:
DRAFT RESOLUTION FOR THE CONFERENCE
AUDITED ACCOUNTS
THE CONFERENCE,
Having considered the reports of the Seventy—fourth and Seventy—sixth Sessions of the Council,
Having examined the following audited accounts and the External Auditor’s Reports thereon:
| Regular Programme 1976—77 | C 79/5 |
| United Nations Development Programme 1977 and 1978 | C 79/6; C 79/6(a) |
| World Food Programme 1977 and 1978 | C 79/7; C 79/7(a) |
Adopts the above audited accounts.
71. The Council endorsed the recommendations of the External Auditor contained in his report and noted the measures taken by the Secretariat in response to these recommendations.
72. The Council. took note of the comments of the Finance Committee on the Report on the Compensation Plan Reserve Fund submitted by the Consulting Actuary, based on the position of the Fund as of 31 December 1978.
73. The Council agreed that the funding position of the Compensation Plan should be brought into balance and accordingly endorsed the recommendations of the Finance Committee that:
74. The Council agreed with the recommendation of the Forty—fourth Session of the Finance Committee, which took cognizance of the fact that the UN Scale of Assessments for 1980—82 was based on the most recent and complete evaluation of Member Nations’ capacity to pay, and proposed that the Conference adopt for 1980—81 the Scale of Contributions given in Appendix D to this Report, which was derived directly from the United Nations Scale of Assessments for 1980—82 as approved by General Assembly Resolution 34!6A of 25 October 1979. This Scale would be subject, however, to any adjustments resulting from the admission of new Member Nations at the Twentieth Session of the Conference.
75. The Council accordingly recommended the following draft resolution for adoption by the Conference:
DRAFT RESOLUTION FOR THE CONFERENCE
SCALE OF CONTRIBUTIONS 1980—81
THE CONFERENCE,
Having noted the recommendations of the Seventy—sixth Session of the Council,
Considering that the United Nations Scale of Assessments for 1980—82 is based on the most recent and complete evaluation of Member Nations’ capacity to pay,
Confirming that as in the past FAO should follow the United Nations Scale of Assessments subject to adaptation for the different membership of FAO,
1. Decides that the FAO Scale of Contributions for 1980—81 should be derived directly from the United Nations Scale of Assessments for 1980—82 as adopted by General Assembly Resolu-tion 34/6A of 25 October 1979;
2. Adopts for use in 1980 and 1981 the Scale as set out in Appendix D of this Report.
76. A statement of contributions outstanding at 6 November 1979 is attached as Appendix E. A summary of the status of contributions at 6 November 1979, as compared with the same date in 1978, was as follows:
| 1978a/ | 1979a/ | ||
| US$ | US$ | ||
| - | Amounts outstanding at 1 January |
|
|
|
|
Amounts payable in current year |
104 610 176.35 | 104 592 283.20 |
|
|
Contributions in arrears |
2 436 735.00 |
7 319 532.40 |
|
|
|
107 046 911.35 |
111911 815.60 |
|
- |
Receipts to 6 November |
||
|
|
Amounts payable in current year |
81 777 474.19 |
99 173 537.58 b/ |
|
|
Contributions in arrears |
1 259 214.13 |
5 415 830.20 c/ |
|
|
|
83 036 688.32 |
104 589 367.78 |
|
- |
Amounts outstanding at 6 November |
|
|
|
|
Amounts payable in current year |
22 832 702.16 |
5 418 745.62 d/ |
|
|
Contributions in arrears |
1 177 520.87 |
1 903 702.20 d/ |
|
|
|
24 010 223.03 |
7 322 447.82 d/ |
a/ Excludes amounts payable in future years under various Conference resolutions.
b/ Includes $11 150 661.62 distributions as of 1 January 1979 of Surplus of Prior Biennium.
c/ Includes $1 004 203.38 distributions as of 1 January 1979 of Surplus of Prior Biennium, but excludes $49 676.00 received from the Dominican Republic payable in 1980 through 1984 under Conference Resolution 39/75.
d/ See Appendix E.
77. The Council noted with satisfaction that 94.83 percent of the current year’s assessments had been collected at 6 November compared to 78.19 percent at the same date in 1978 and 92.31 percent in 1977. Despite this comparatively satisfactory position, the Council expressed disappointment that amounts were still due from 58 Member Nations at 6 November 1979 and called upon these Member Nations to effect prompt payment of their obligations.
78. The Council further noted with concern that six Member Nations Bolivia , Central African Republic, Democratic Kampuchea, Grenada, Nicaragua and Paraguay ) continued to be in danger of losing their voting rights at the forthcoming session of the Conference in accordance with Article 111.4 of the Constitution. The Council observed that this situation prevailed in spite of the appeal of the Seventy—fifth Session of the Council that these Member Nations regularize their positions before the Twentieth Session of the Conference and the despatch by the Director—General of quarterly communications to each referring to the risk of loss of their voting rights.
79. With regard to Bolivia, the Council was advised that the Government had communicated with the Organization in September that payments sufficient to ensure Bolivia's right to vote would be forwarded during that month, but that the Secretariat was not aware of any such payment having been received.
80. In respect of Grenada , which had requested a waiver of all or a portion of its assessed contributions, the Council noted that no response had as yet been received to the Secretariat’s suggestion to the Government that it request the FAO Conference to approve an instalment plan to pay off its arrears over a 10—year period.
81. The Council was informed that an amount of Us$17 750.80 had only recently been received from the Central African Republic , but that the amount was insufficient to regularize the position of that Member Nation.
82. The Council suggested to the Conference that it make a special appeal to those Member Nations with outstanding arrears and/or current assessments to liquidate their obligations as soon as possible, and to all Member Nations to arrange for early payment of assessments in 1980 and 1981.
83. The Council was pleased to note that the Director—General would not need to avail him-self of the authority to borrow as authorized by Resolution 3/75 adopted at the Seventy—fifth Session of the Council.
84. The Council noted that, in addition to the application for membership by Samoa, which had been brought to its attention atits Seventy—fifth Session, an application had also been received from the Commonwealth of Dominica. The Council was informed that the 1979 UN assessment rate for Dominica was the minimum (0.01 percent) and that the same minimum rate applied in FAQ in 1979. The contribution for the last quarter of 1979 for Dominica on admission to membership would also therefore be US$2 600 in accordance with Financial Regula-tion 5.8. The advance due from it to the Working Capital Fund would be US$650.
85. The Council noted the comments made by the Finance Committee in the Report of its Forty—fourth Session and in particular the desirability to maintain the Italian special contribution as long as the Organization continued to pay rental for premises outside its main Headquarters and, if possible, to increase that contribution to compensatefor the effects of inflation. It agreed on the need for the Director—General to pursue his efforts to find a solution to these problems.
86. The delegate of Italy pointed out that the Italian Special Contribution had never been, and still was not, a legal obligation — under the Headquarters Agreement — but must be considered as a voluntary contribution unilaterally decided by the Italian Government. The total amount of this contribution from 1971 to 1979 was 2 700 million lire, in addition to the total expenditure for the restructuring of Building "D" that should be available by March/April 1980, which would amount to more than 7 000 million lire. The problems relating to office accommodation and to the Italian contribution would in any event be considered by the Government after having delivered Building "D".
1 C 79/3; C 79/3—Corr.1; C 79/3—Corr.2; C 79/3—Sup.1; C 79/3—Sup.2—Rev.1; CL 76/4; CL 76/PV/3; CL 76/PV/4; CL 76/PV/6.
2 C 79/8; CL 76/4, paras. 1.6—1.8, 2.193—2,203 and 3.136—3.137 CL 76/PV/3; CL 76/PV/6.
3 See para. 59 below.
4 C 79/4; CL 76/4; CL 76/PV/3;CL 76/PV/6.
5 CL 76/4 paras. 1.5, 2.170—2.179 and 3.132—3.135; C 79/9; C 79/9—Corr.1; CL 76/PV/2; CL 76/PV/6.
6 CL 76/4; CL 76/12; CL 76/PV/1; CL 76/PV/6.
7 CL 76/4; CL 76/PV/2; CL 76/PV/6.
8 Programme of Work and Budget (C 79/3); Medium—Term Objectives (C 79/9); Review of the Regular Programme (C 79/5); Review of Field Programmes (C 79/4).
9 CL 75/REP, paras 165—167 and Appendix F CL 76/4, paras 3.140—3.143 and Appendix B; CL 76/PV/2; CL 76/PV/6.
10 CL 76/4, paras 3.31—3.37 and Appendix A; CL 76/JLIM/1; CL 76/PV/2; CL 76/PV/6.
11 CL 76/4, paras 3.101—3.111 and 3.144—3.147; CL 76/PV/2; CL 76/PV/6.
