PROGRAMME, BUDGETARY, FINANCIAL AND ADMINISTRATIVE MATTERS
35. The Council reviewed the Programme of Work and Budget 1982-83 and the Medium-Term Objectives1, together with an information document 2 which provided further information, particularly with regard to staff and exchange rates.
36. The Council recalled the views it had expressed during its Seventy-ninth Session on the Summary Programme of Work and Budget 1982-83 and generally supported the findings of the Programme and Finance Committees (CL 80/4) on the final proposals in the Director-General's Programme of Work and Budget for 1982-83 and on the Medium-Term Objectives.
37. It agreed that the presentation of the Programme of Work and Budget was much improved and was in line with Council recommendations. It also agreed that the general thrust of the strategies, priorities and means of action were appropriate and were well designed to implement the role of the Organization in agricultural development in developing countries, particularly in Africa. A few members, however, indicated their concerns about certain programmes which they would elaborate during the Conference.
38. The Council agreed that the programmes were fully appropriate to the role and capacity of FAO, which must continue to play a leading role within the United Nations system with regard to agricultural development. In this connection, many members made reference to the priority assigned to international cooperation in food and agricultural development at the Ottawa, Melbourne and Cancún Conferences of Heads of State, and considered that this fully justified support by all for FAO's Programme of Work and Budget 1982-83.
39. The great majority of the Council strongly supported the budget level proposed by the Director-General as realistic and as the minimum required in the circumstances. The concept of zero-growth was not acceptable to the vast majority of the Council, which felt that it was inappropriate in the case of FAO. They felt that a very substantial increase could be justified in view of the world food situation and the views expressed at the Ottawa, Melbourne and Cancún meetings, but they recognized the budgetary and financial constraints which affected a number of Member Governments, both developed and developing. They hoped therefore that those member countries which had so far reserved their positions on the budget level would, during the Conference, be able to join a consensus on the modest proposals of the Director-General, in order that FAO, whose record showed its economy, efficiency, and impact in the field, could play its rightful role in the forefront of accelerating agricultural development.
40. Three members indicated that they were unable to support the level of the proposed budget. Among the reasons given for this position were that during the current period of international economic problems that affect developed as well as developing countries, they believed it was appropriate for FAO to consolidate certain activities rather than to expand resources. These members, notwithstanding their support for FAO's priorities and strategies, felt that there were also areas in which the proposed budget could be reduced. One member pointed out that its position on the proposed biennial programme budget should in no way be construed as lack of its support for agricultural development and the battle against hunger. Other members reserved their position until the Conference.
41. During the discussion, it was suggested that some consideration might be given in future to the desirability of discontinuing the Medium-Term Objectives as a separate document and integrating its substance into the Programme of Work and Budget, and that this might be considered during the Conference.
42. The Council noted the views of the Programme and Finance Committees on the Review of the Regular Programme 1980-81 pending the full discussion of the document at the Twenty-first Session of the Conference.
43. The Council endorsed the report of the Programme and Finance Committees concerning document C 81/4 (Review of Field Programmes 1980-81).
44. In considering document C 81/28 (Development Assistance for Food Production and Rural Development), the Council noted that, while overall Official Development Assistance (ODA) commitments had increased in 1980, there appeared to be stagnation in the part of these commitments to agriculture. The latter had increased from.$7.1 billion in 1979 to $7.5 billion in 1980, a rise of only 5.6 percent which was less than the rate of inflation during the same period. The situation regarding the Least Developed Countries appeared however to have somewhat improved recently, their share in official agricultural commitments having increased from around 16 to 19 percent between 1979 and 1980.
45. The Council was informed of the deteriorating situation regarding field programmes supported by UNDP. It noted that UNDP's gloomy resource prospects, which had recently been confirmed, combined with a reduced FAO share of UNDP project execution and continuing variations in the level of allocations, seriously impeded the efficiency and economy of the management of this important part of FAO field programmes. As a result of these various factors, a marked reduction in FAO/UNDP field activities was expected in 1982 and 1983. The Council noted however that Trust Fund and TCP activities were progressing satisfactorily.
46. The Council noted the information provided in document C 81/INF/16, Support Costs, which would be submitted to the Conference.
(i) Status of Contributions to the Budget
47. The Council was informed of the status of contributions at 4 November 1981, compared to the same date in 1980, as follows, as well as the details of outstanding contributions of Member Nations on 4 November 1981, shown in Appendix D to this report.
| 21981 | 21980 | ||
| (for comparison) | |||
| US$ | US$ | ||
| - Amounts outstanding at 1 January | |||
| Amounts payable in current year | 137 293 919.37 | 137 293 919.37 | |
| Contributions in arrears Total | 22 053 748.23 | 4 570 567.69 | |
| Total | 159 347 667.60 | 141 864 487.06 | |
| Receipts 1 January - 4 November | |||
| Amounts payable in current year | 108 504 838.21 3 | 108 185 670.67 | |
| Contributions in arrears | 18 928 812.99 3 | 2 006 536.60 | |
| Total | 127 433 651.20 3 | 110 192 207.27 | |
| Amounts outstanding at 4 November | |||
| Amounts payable in current year | 28 789 081.16 4 | 29 108 248.70 | |
| Contributions in arrears | 3 124 935.24 4 | 2 564 031.09 | |
| Total | 31 914 016.40 4 | 31 672 279.79 |
2Excluding arrears instalments due in future years under Conference authorizations.
3 Receipts include distribution in January of surplus of 1978-79 biennium: $2 269 696.22 applied to current assessments (1.65 percent of 1981 assessments) and $2 075 934.78 to arrears.
4 See Appendix D.
(ii) Current Assessments
48. The Council, noting the unprecedented serious position of receipts of contributions throughout most of 1981 as compared with previous years, shared the deep concern expressed by the Finance Committee. The following table sets out the cumulative rates of receipts of current assessments over the last five years.
| 1981 | 1980 | 1979 | 1978 | 1977 | ||||||
| % | % | % | % | % | ||||||
| January | 7.43 | 4.71 | 17.30 | 5.35 | 12.47 | |||||
| February | 16.03 | 19.97 | 26.66 | 26.54 | 30.50 | |||||
| March | 22.72 | 34.03 | 31.44 | 36.83 | 38.52 | |||||
| April | 33.88 | 38.92 | 35.41 | 46.04 | 48.21 | |||||
| May | 38.37 | 55.80 | 38.86 | 57.25 | 51.23 | |||||
| June | 40.08 | 61.23 | 46.64 | 57.69 | 60.59 | |||||
| July | 46.72 | 71 .45 | 64.63 | 65.32 | 69.41 | |||||
| August | 54.79 | 75.88 | 80.86 | 74.93 | 72.29 | |||||
| September | 59.35 | 76.82 | 83.00 | 76.73 | 76.79 | |||||
| October | 72.34 | 78.81 | 94.83 | 78.17 | 92.30 | |||||
| November | -- | 84.21 | 95.68 | 91.30 | 94.45 | |||||
| December | -- | 85.71 | 97.17 | 94.04 | 97.54 |
49. On 4 November 79.03 percent of current assessments had been collected, compared to 78.81 percent at the same date in 1980, 94.83 percent in 1979, 78.17 percent in 1978 and 92.30 percent in 1977.
50. The rate of receipts in 1981, often lower than the proportional share of budgetary appropriations, compromised the Organization's capacity to carry out its programme.
51. The Council noted that eight contributors continued to owe current assessments of $1 million or more, these outstandings totalling about $25 million and constituting 88 percent of total current assessments outstanding. The Council was informed that several major contributors had significantly shifted their patterns of payment of contributions during 1981 against previous years and that the largest contributor had advised the Organization that in the future payment would normally be made in the fourth quarter of the calendar year.
52. In this connection the Council recalled that all Member Nations, on admission to membership, had undertaken to comply with the Constitution of the Organization and therefore had a legal obligation to pay assessed contributions in full within 30 days of receipt of the Director-General's communication calling for payment or as of the first day of January of the year to which they relate, whichever was later. All contributions should thus be received at the latest within February of each year.
53. All but one Member Nation felt that the consequences of a deterioration in payment of assessments necessitated actions which adversely affected the financial interests of all Member Nations, specifically in their having to provide the cash required to fund an increase in the level of the Working Capital Fund and in their having to share in meeting the added costs of borrowing monies to cover cash-flow requirements.
54. The Council commended the intensive and special efforts the Director-General had made in communicating personally in July with authorities of all Member Nations with amounts due and in following up that action in August by another plea for urgent personal intervention on the part of authorities of the largest contributors who had not finalized their contributions. The Council requested the Director-General to continue this strong pursuit of collection of amounts due. The Council considered it indispensable that Member Nations meet their obligations as quickly as possible.
(iii) Contributions in Arrears
55. The Council also noted with concern the substantial amount of uncollected arrears, $3 124 935, due from 21 Member Nations. This aggravated the Organization's difficult financial position. The Council again appealed to the Member Nations concerned to make every possible effort to effect payment without further delay.
56. The Council was informed that five Member Nations (Central African Republic, Chad, Comoros, Iran and Paraguay) continued to be in danger of losing the right to vote at the coming session of the Conference, in accordance with Article III.4 of the Constitution. In this connection, the Government of the Central African Republic had submitted a proposal for consideration by the Conference to pay its arrears of contributions in 10 annual instalments beginning in 1981, together with current contributions in the calendar year of assessment.
57. The Council appealed to the remaining Member Nations to regularize their positions and requested the Director-General to continue his efforts to overcome the problem.
(iv) Applications for Membership
58. The Council was informed that three additional applications for membership in the Organization had been received viz: from Bhutan, Saint Vincent and the Grenadines, and Zimbabwe. It noted that in accordance with the provisions of the Basic Texts as well as with past practice, these Governments would be called upon to pay a first contribution, to be determined by the Conference at the time of its decision on the application for membership and relating to the last quarter of 1981, as follows: Bhutan $ 3 400, Saint Vincent and the Grenadines, $ 3 400, Zimbabwe $ 6 800. Based on the present authorized level of the Working Capital Fund, $ 6 500 000, Bhutan and Saint Vincent and the Grenadines would be requested to advance the Fund $650 each and Zimbabwe $ 1 300.
59. The Council noted that as compared with the rate of Lit. 820 applied by the Conference to the current budget the UN exchange rate for the lira had since January 1980 moved from Lit. 800/US$1 to Lit.1 240/US$1 at 31 August 1981, i.e. an average for the 20-month period of Lit. 947. As result of this favourable trend, cumulative savings of staff costs amounting to $14 651 000 had so far been credited to the Special Reserve Account.
60. The Council noted that if favourable currency developments continued and the rate of exchange remained at about Lit. 1 200 to the dollar for the rest of the biennium, the balance on the Special Reserve Account would exceed $19 million, after financing unbudgeted extra costs in the amount of $5 575 000 in accordance with para. 2(c) of Conference Resolution 27/77.
61. In this connection, the Council recalled that at its Seventy-ninth Session it had endorsed a draft resolution which would, inter alia, raise the level of the Special Reserve Account to five percent of the total effective working budget and would provide for automatic replenishment of the account from the cash surplus at the end of the biennium. (Two delegations recalled their position that there was no need to change the provisions of the Special Reserve Account). As the budget level proposed for 1982-83 was $368 million at Lit.1 175 = US$1, the level of the Special Reserve Account at five percent would be $18 400 000. Funds available in the account at 31 December 1981 should therefore be sufficient to fund the proposed new level. The Council noted that any balance still remaining would be transferred to Miscellaneous Income.
(i) Status and Replenishment of the Working Capital Fund
62. The Council noted that the cash balance on the Working Capital Fund was $ 6 514 950 on 31 August 1981. It recalled that at its Seventy-ninth Session it had adopted Resolution 1/79 authorizing the Director-General to withdraw from the Working Capital Fund up to $5.925 million to cover unbudgeted extra costs.
63. The Council recalled that in accordance with Financial Regulation 6.5 (b) advances made from the Working Capital Fund to finance expenditures not provided for in the budget should be reimbursed by such method as the Conference determined.
64. The Council noted that if Member Nations paid their contributions promptly there would be sufficient cash surplus at 31 December 1981 to reimburse the amount withdrawn from the Working Capital Fund. The Council therefore recommended the following draft Resolution for adoption by the Conference:
REIMBURSEMENT OF WORKING CAPITAL FUND FROM CASH SURPLUS 1980-81
THE CONFERENCE,
Noting that the Director-General was authorized by Resolution 179 of the Seventy-ninth Session of the Council to withdraw an amount of up to $5.925 million from the Working Capital Fund to cover unbudgeted extra costs,
Noting that by 31 December 1981 it is expected that some $ will be required,
Further noting that if Member Nations pay their contributions promptly it is estimated that there will be a cash surplus in the 1980-81 biennium,
Recalling that, in accordance with Financial Regulation 6.5(b), advances made from the Working Capital Fund to finance emergency expenditures shall be reimbursed by such method as the Conference determines,
Decides that, notwithstanding the provisions of Financial Regulation 6.1(b), such portion of the surplus as is sufficient to cover the withdrawal shall be withheld and used to reimburse the Working Capital Fund.
(ii) Increase in the Level of the Working Capital Fund
65. The Council noted that as a result of the highly unsatisfactory status of contributions, the Organization was experiencing financial problems.
66. In this regard, the Council recalled that the Financial Regulations provided for payment of each year's assessment within 30 days of receipt of the Director-General's communication, or as of the first day of the calendar year to which they related, whichever was the later. Beyond such date contributions outstanding should be considered as overdue.
67. The Council noted with serious concern that the situation in the payment of contributions had not materially changed, despite the strong recommendations of the Finance Committee and the Council, and the special letters sent by the Director-General to Member Nations with large outstanding contributions. The Council was particularly concerned that a new pattern was developing in the payment of Member Nations' contributions, which might persist in the next few years. It therefore reiterated its appeal to Member Nations with current contributions still outstanding to meet their obligations as early as possible. Non-payment or delays were to the disadvantage of those who met their obligations promptly.
68. The first measure proposed by the Director-General was to increase the Working Capital Fund from the present level of $6.5 million to $13.25 million.
69. The Council recalled that the Working Capital Fund should be used as the first resort to cover any deficit in the cash flow of the Organization resulting from delays in the receipt of contributions; that whenever the Working Capital Fund was insufficient for this purpose, the Special Reserve Account would be used as a second resort, provided that funds in the Special Reserve Account had not already been committed or were not foreseen as likely to be required to finance unbudgeted costs due to adverse movements of currency exchange rates or unbudgeted extra costs; and that the separately proposed authority to borrow, if approved by the Council, would be used only as a last resort.
70. It was noted that the Director-General had not proposed that the Working Capital Fund should be set as a percentage of the effective working budget, but as a fixed amount. It would however represent approximately three percent of the proposed effective working budget level for 1982-83. The Council noted that this was lower than the level of similar funds in other UN Organizations.
71. The Council noted that the new assessment to finance the replenishment of, and proposed increase in, the Working Capital Fund to $13.25 million might be offset at least to some extent by the cash surplus which, according to current estimates, could still become available at the end of the current biennium.
72. Two Members could not support this proposal and a further Member reserved his Government's position. The great majority of the Council fully supported the proposal. The Council therefore agreed to recommend the following Draft Resolution for adoption by the Conference:
LEVEL OF THE WORKING CAPITAL FUND
THE CONFERENCE,
Recalling its Resolution 34/75, by which the level of the Working Capital Fund was fixed at $6 500 000,
Also recalling its Resolution 33/75, by which the Director-General was authorized to withdraw up to $1 000 000 from the Working Capital Fund for financing initial emergency measures for the control of livestock diseases and desert locusts,
Regretting that in spite of the repeated appeals of the Council, the rate of receipts of contributions to the Budget has seriously deteriorated in comparison with previous biennia, and that to some extent this may reflect a continuing pattern,
Considering that the Working Capital Fund should be the first source of finance for budgetary expenditures pending receipt of contributions and that other measures should, as far as possible, be. used only when serious cash flow problems occur despite withdrawals from the Working Capital Fund,
Noting that the present level of the Working Capital Fund constitutes only two percent of the present Budget level and that this percentage is much lower than in other comparable Organizations,
Having examined the recommendations made by the Council at its Eightieth Session,
Decides that as from 1 January 1982, the authorized level of the Working Capital Fund shall be $13 250 000, and that:
(a) Member Nations shall be reassessed in accordance with the provisions of Financial Regulation 6.2(b) (iv) and (v) as from 1 January 1982 on the basis of the Scale of Contributions for 1982-83;
(b) Notwithstanding the provisions of Financial Regulation 6.1(b), the portion of each Member Nation's share in any 1980-81 cash surplus as may be needed to bring up its advance to the Working Capital Fund after reassessment to the required level, shall be withheld and applied towards such advance as of 1 January 1982.
(d) Authority to Borrow 8
73. The Council had before it the recommendations of the Finance Committee and of the Committee on Constitutional and Legal Matters, which had reviewed the constitutional and legal aspects concerning the proposal to give the Director-General, in certain circumstances, authority to borrow.
74. The Council noted that, in addition to a general deterioration in the pattern of payments, the Director-General had recently been informed by the largest contributor of its intention to modify its practice regarding the remittance of contributions. The proposal, still subject to final legislative action, was to defer payment progressively within each calendar year, with the final objective of depositing the total annual contribution only in the last quarter of each year from 1983 onwards. Moreover, it had been indicated that part of the balance of this Member Nation's contribution for 1981 would not be remitted before 1982.
75. The Council noted that if the recent pattern in the payment of contributions were to continue and the major contributor carried out its intention to defer payments, serious shortfalls in the cash flow of the Organization could occur in 1982 and would in all likelihood occur in 1983. Such shortfalls could be in the region of $21 million in 1983 and of even larger proportions, possibly in the order of $30 - 40 million, after 1983.
76. The Council recalled that, under current provisions, shortfalls in the cash flow would firstly be covered from the Working Capital Fund (which under Conference Resolution 3375 also has to cover certain emergencies). The proposed increased level of $13.25 million in the Working Capital Fund would however still be insufficient to cover the exceptionally large shortfalls which would probably occur in 1983 and subsequent years.
77. The Council further recalled that the Special Reserve Account could also be used, as a second resort, in accordance with Conference Resolution 27/77, provided its balance had not been materially reduced or would not be required to cover adverse currency fluctuations or unbudgeted inflation.
78. In considering the draft Resolution set forth in the report of the Finance Committee, the Council noted that it was framed basically on the same lines as the authority granted on two previous occasions. The first occasion was in 1964 (Resolution 4/43 extended by Resolution 9/44) to cover delays in payments of several contributions, particularly that of the largest contributor, and the withdrawal from the Organization of one Member Nation; the second was in 1979 (Resolution 3/75) to cover the possible delay in receipt of the contribution of the largest contributor. The Council recalled that on both occasions the Director-General did not in fact use the authority and that the authority had lapsed. In the case of the current proposal, it was however proposed that the authority should continue without time limit. The Council noted that the CCLM had concluded that, from a legal and constitutional point of view, the proposed Resolution was correct in form and that its contents were consistent with the Basic Texts.
79. The Council noted that the primary source of such loans should be internal funds. This would include balances available in the Support Costs Account, in the Terminal Payments Fund which retains contributions for the deferred payment of Repatriation Grants, in the Separation Payments Fund which partly financed the separation payments of General Service staff, and in certain Trust Fund accounts where the particular legal arrangements covering them would permit. Interest would be payable on such loans and would be met from Miscellaneous Income, thus reducing interest accrued on the balances of contributions of those Member Nations who had met their financial obligations in due time.
80. Some Members considered that on the basis of periodic resource forecasts, the authority to borrow should - as in the past - be limited both in time and amount. Others felt that all borrowings should also be submitted for prior approval to the Finance Committee and/or Council. One Member also suggested that in case of need the Director-General should consult Member Nations of the Council by post in order to seek their concurrence with the use of the authority to borrow.
81. Some Members expressed the view that the resources available in the Working Capital Fund and Special Reserve Account would be adequate and that in its present form, the proposal might act as a disincentive for Member Nations to meet their obligations in a timely manner. One Member believed that the proposal offered FAO managers far more protection than managers in Governments themselves could expect under analogous circumstances; Management should not avoid making some decisions simply by resort to borrowing. Several Members considered that a decision should be delayed for further consideration by the Finance Committee. Some delegations opposed the draft resolution.
82. The majority of the Council felt that it was not possible to predict in advance the amount which the Director-General might require to borrow, nor was it feasible to anticipate the period during which such a measure would be needed. They also considered that the Director-General must have the flexibility to act urgently and that postal consultation would not be adequate. They endorsed however the view of the Finance Committee that great care and rigour would have to be exercised in the use of borrowing power and restricted to cases of strict need, only after using the Working Capital Fund and taking into account the best estimate of the funds which could be made available from the Special Reserve Account.
83. The majority of the Council considered that the authority to borrow was in the foreseeable circumstances essential to protect an approved programme. They recognized that since this was a measure to deal with a last-resort situation which could not be predicted in advance but might need to be dealt with immediately, it was not feasible to circumscribe rigidly the use of the authority, and that having regard to the record of FAO in responsible financial management, there must be flexibility, which the Council could allow, for the Director-General to use in his management of the finances of the Organization, if and as essential.
84. In conclusion, the Council generally agreed to adopt the following Resolution:
AUTHORITY TO BORROW
THE COUNCIL,
Noting a pattern of deterioration in the timing of the payment of contributions of a number of Member States and the declared intention of the largest contributor progressively to defer payment of its assessments,
Recalling that the Council had given authority to the Director-General to borrow on two previous occasions, in 1964 and 1979, in terms substantially similar to those in operative paragraphs 1-5 below,
Considering the necessity of maintaining sufficient cash flow to cover obligations and ensure implementation of the approved programme of work,
Bearing in mind that the Director-General keeps the Finance Committee regularly informed of the financial situation, including the cash flow and status of contributions,
1. Authorizes the Director-General in case of need to borrow monies to the extent necessary, after recourse as appropriate and feasible to the Working Capital Fund and the Special Reserve Account ;
2. Decides that such borrowing should be made from internal sources to the greatest extent possible;
3. Further authorizes the Director-General, in the event that it is not practicable to borrow from internal sources, to negotiate and contract loans with such external lenders as he may select, having due regard, in setting the terms thereof, to the necessity of keeping interest costs to a minimum;
4. Decides that any interest payable on such loans shall be charged to Miscellaneous Income ;
5. Requests the Director-General that without prejudice to the exercise by him at his discretion of the authority conferred in para.1 above, he should keep the Finance Committee fully informed of any prospective use of the authority and, to the extent that in his judgement the circumstances and time permit, should consult the Finance Committee in advance of such action, and he should in any case report "ex post-facto" on any borrowings made through the Finance Committee to the Council.
85. The Director-General formally assured the Council that in the biennium 1982-83, he would in fact consult the Finance Committee prior to exercising his authority, if necessary by calling a special session, and furthermore would make a report to the Council at the end of 1983 on any use of the authority to borrow, with a view to the Council deciding on the future of the authority as necessary and appropriate.
(i) United Nations Development Programme 1980
86. The Council reviewed the above accounts and noted the comments of the Finance Committee.
87. The Council endorsed the External Auditor's recommendations and noted the Director-General's measures to remedy the weaknesses mentioned in the External Auditor's report.
(ii) World Food Programme 1980
88. The Council reviewed the above accounts and noted that the Finance Committee had reported separately to the Committee on Food Aid Policies and Programmes on operational matters referred to in the External Auditor's report.
(iii) Submission of Audited Accounts to the Conference
89. The Council forwarded the above audited accounts together with those reviewed by it at its Seventy-eighth Session to the Conference in accordance with the provisions of Rule XXIV-3(b) GRO 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-eighth and Eightieth Sessions of the Council,
Having examined the following audited accounts and the External Auditor's Reports thereon : .
| Regular Programme 1978-79 | C 81/5 | |
| United Nations Development Programme 1979 and 1980 | C 81/6; | C 81/6(a) |
| World Food Programme 1979 and 1980 | C 81/7; | C 81/7(a) |
Adopts the above audited accounts.
(iv) Regular Programme - Interim Accounts 1980
90. 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.
91. The Council noted that the Finance Committee had considered that the emoluments of the Director-General should be brought in line with those of Executive Heads of other agencies, and had recommended a draft resolution for adoption by the Conference. One member reserved his Government's position on the resolution in conformity with their position in other international organizations.
92. The Council accordingly recommended the following draft resolution, for adoption by the Conference in accordance with General Rule XXXVI.1(c):
EMOLUMENTS OF THE DIRECTOR-GENERAL
THE CONFERENCE,
"Recalling that it had fixed the salary and allowances of the Director-General at its Nineteenth Session in accordance with operative paragraphs 1,2 and 3 of Resolution 28/77,
Noting that the General Assembly of the United Nations, at its Thirty-fifth Session, approved certain recommendations of the International Civil Service Commission affecting the salaries and allowances of staff in the Professional and higher categories,
Noting further that the Council, at its Seventieth Session, authorized the Director-General to amend the FAO Staff Regulations to give effect to the recommendations of the International Civil Service Commission, in the form which they had been approved by the General Assembly of the United Nations and with the same effective date,
Considering that the changes in entitlements of staff in the Professional and higher categories which were introduced in FAO with effect from 1 January 1981 should be applied retroactively to the Director-General, and that provision should be made whereby such changes in entitlements as in the future be introduced for the Professional and higher categories would automatically apply to the Director-General,
Considering also that in FAO the representation allowance of the Director-General had not been changed since it was established on 1 January 1977 at US$20 000,
Decide that :
1. The annual salary of the Director-General be retroactively adjusted from 1 January 1981 to the following amounts: gross salary US$125 400; net salary US$66 817 at the dependency rate, or US$60 177 at the single rate; post adjustment for one index point US$550 at the dependency rate, or US$496 at the single rate;
2. The system of allowances and benefits applicable to the Director-General be amended from 1 January 1981 in the same way as that of staff in the Professional and higher categories;
3. In the future the salary and allowances of the Director-General shall be adjusted in line with any revision of salaries and allowances of staff in the Professional and higher categories;
4. The representation allowance of the Director-General be increased to US$24 000 effective 1 January 1981.
93. The Council noted the recommendations of the Finance Committee, as outlined in the Committee's report of its Forty-eighth Session. It also noted that the only developments since that Session of the Committee were the possibility of the Host Government implementing one of the interim measures proposed by the Director-General, namely the construction of some 60 rooms on the roof of building D, and the welcome statement made on World Food Day (16 October 1981) by the President of the Council of Ministers of Italy regarding the Host Government's good intentions concerning the construction of a new building complex.
94. The Council noted however with concern that despite the Director-General's efforts, no concrete action had yet been taken by the Host Government in connection with the other interim measures which were also recognized by the Finance Committee as requiring urgent and simultaneous implementation, nor on the proposal for a new building complex.
95. The Council noted the views of the representative of the Host Government and recognized that in view of the pressing need for action, a more forceful approach by the Governing Bodies themselves was called for. The Council accordingly recommended the following draft Resolution for adoption by the Conference:
HEADQUARTERS ACCOMMODATION
THE CONFERENCE,
Recognizing that the buildings made available by the Italian Government at Viale delle Terme di Caracalla have long proved insufficient for accommodating the Headquarters staff of the Organization and the World Food Programme, this having necessitated the construction of temporary office accommodation in 1965 and the renting of additional premises since 1969,
Recalling the solution to the problem of Headquarters accommodation identified by the Director-General and supported by the Council at its Seventy-ninth Session.12
1. Decides to establish, under Article VI.5 of the Constitution, a working party consisting of seven Member Nations, comprising a representative from each of the seven FAO regions 13
2. Decides that the working party will comprise the following Member Nations:
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whose representatives should, in consultation with the Director-General, act as a delegation for the purpose of meeting the Italian Authorities at the highest level, with a view to requesting, as a matter of urgency, the implementation of both the interim and permanent solutions proposed by the Director-General and endorsed by the Council at its Seventy-ninth Session;
3. Authorizes the Director-General to convene meetings of the Working Party at such times as he may consider necessary or appropriate;
4. Requests the Working Party to report to the Council at its Eighty-second and Eighty-third Sessions and to the Conference at its Twenty-second Session on the progress made and on further steps that may be envisaged in order to achieve with the least possible delay a permanent solution to the accommodation problem.
96. The Council endorsed the views expressed in the reports of the Programme and Finance Committees concerning the operation of the Action Programme for the Prevention of Food Losses and the need for additional resources to finance project requests already received and continuation of the programme in the future.
1C 813; C 813 - Corr.1; C 813 - Corr.2 and Corr.3 (Spanish only); C 813 - Corr.4 (Arabic only); C 813 - Sup.1 and Sup.2; C 813 - Sup.2, Corr.1; CL 80/4, paras 1.1 -1.5, 2.4 - 2.65; 3.3 - 3.27; C 819; CL 80/PV/3; CL 80/PV/6.
2 C 81/INF/20.
3C 81/8; CL 80/4, paras 2.66 - 2.72, 3.110 - 3.112; CL 80/PV/5; CL 80/PV/6.
4C 81/4; CL 80/4, paras 2.73 to 2.90 and 3.113 to 3.126; CL 80/PV/5; CL 80/PV/6.
5CL 80/4 paras 3.31 - 3.38; CL 80/LIM/1; CL 80/PV/4; CL 80/PV/6.
6CL REP/79, para,178; CL 80/4, paras 3.45-3.49; CL 80/PV/4; CL 80/PV/6.
7CL 80/4, paras 3.50-3.61; CL 80/PV/4; CL 80/PV/6.
8CL 80/4, paras 3.62 - 3.73; CL 80/5, paras 1-10; CL 80/PV/4; CL 80/PV/6.
9CL 80/4, paras 3.74-3.88; CL 80/PV/5; CL 80/PV/6.
10See CL 80/4, paras 3.99 and 3.100; CL 80/PV/5; CL 80/PV/6.
11CL 80/4, paras 3.101 - 3.106; CL 80/PV/5; CL 80/PV/6.
12CL 79/REP, paras 197-200.
13 Africa, Asia, Europe, Latin America, Near East, North America, Southwest Pacific
14CL 80/4, paras 3.122-3. 126; C 77/REP. para. 54 and Res. 377; CL 80/PV/5; CL 80/PV/6.
