164. The Council began its consideration of the item with an introductory statement on behalf of the Director-General, and a presentation by the Chairman of the Finance Committee, on behalf of the Programme and Finance Committees, regarding the extensive review of proposals undertaken by the two Committees, first in their "Outline" form at a Joint Session in January and in the form of the Summary at their May Session.
165. The Council considered the merits of the procedure involving the additional step of an Outline, which it had decided on for the 1990-91 Programme of Work and Budget, on an experimental basis, at its Ninety-fourth Session.
166. There was general satisfaction with the new procedure and a number of countries expressed support for its eventual continuation into the next biennium, in as much as the Outline appeared to have permitted early consideration of the proposals and a fruitful dialogue between member countries and the Secretariat and thus paved the way for consensus on the proposed Programme of Work and Budget. Doubts however were expressed on the value of the procedure in that no consensus was yet evident, there were additional costs involved and that the objective might be reached through other ways. It was suggested that the crucial test of the value of this additional consultative step should take place at the Conference when it would consider and decide on the full Programme of Work and Budget proposals. The Council concluded that a final decision on this issue should therefore be taken at the Conference.
167. The Council expressed appreciation on the continuing improvements in the document, especially of the detailed information on shifts and net changes, now provided down to the programme element level. It agreed that these improvements contributed to enhanced transparency and facilitated consideration of the proposals.
168. The Council was informed that the proposals involved a net programme increase of US$ 5.5 million, i.e. 1 percent over the recosted 1988-89 budget base and that taking into account the absorption of US$ 3 million of cost increases, as proposed by the Director-General, the net increase would only be 0.45 percent. The Council welcomed the overall approach of directing additional resources to the technical and economic programmes of FAO.
169. The Council concurred that the proposals were the results of an active search for compromise. On the one hand, there were extensive requirements and genuine expectations for FAO action on a broad front of well-recognized problems, especially in the developing world, and on internationally-agreed issues. On the other hand, the Director-General had sought to limit the request for additional resources to a minimum. In the attempt to balance these conflicting factors, the Director-General's quest for consensus was widely appreciated by the Council.
170. The Council took note of the proposed net reduction in established posts. The Council also reiterated the importance of maintaining the technical capacity of FAO at a level permitting effective response to the requirements and expectations of Member Nations. The need for clear priority setting and flexibility in this regard was stressed by some members, so as to adjust FAO capabilities to changing circumstances.
171. The Council recalled that the proposals for the 1990-91 biennium needed to be seen in the context of the heavy cuts effected in the 1987-88 period, amounting to US$ 4 5 million. It was stressed that the negative effects of these cuts would be felt well beyond the period in which they were made. The Council underlined that assured and adequate resources were essential for FAO's long-term evolution and effectiveness.
172. In this respect, the Council noted that the Organization's financial situation was still fragile, albeit there was guarded optimism that further disruptions to its programmes would be avoided. The Council emphasized that the prime basis of the Organization's recovery was the prompt payment of contributions and settlement of arrears. It reiterated its strong appeal to all member countries to fulfil their financial obligations to the Organization with dispatch and in as predictable a manner as possible.
173. While accepting the proposed Summary Programme of Work and Budget the majority of members underlined the inadequacy of the proposed modest net increase, in the face of the unsatisfied demands for FAO assistance from the developing world. Examples were given of emerging situations which the Organization was called upon to address, e.g. the recent appearance of the American screwworm fly (Cochliomyia hominivorax) in Northern Africa and priorities referred to below.
174. Some members, however, considered that there was considerable scope to address the challenges confronting the Organization and to respond to new priorities by effecting more vigorous shifts in resources and terminating those programme activities which had outlived their usefulness. Some other members suggested that FAO priority setting could more appropriately be done in the medium-term perspective. The lessons learned from evaluation were stressed in this regard.
175. The Council gave its broad endorsement to the nine priority areas under Chapter 2: Technical and Economic Programmes, which were proposed to receive net additional resources: sustainable development; crop/weather monitoring; biotechnology; crop protection; agricultural data development; policy advice; women in development; aquaculture; and the Tropical Forestry Action Plan. It considered, however, that the above selection of priorities and the order in which they were listed in the document should not be construed as any
order of preference. Some members mentioned that they could not clearly assess the extent to which the cross-sectoral priorities had been effectively reflected in the summary proposals and looked forward to the full Programme of Work and Budget to shed more light on this aspect.
176. In connection with policy advice, the Council stressed the particular requirements of Member Governments for FAO support, upon request, in agricultural policy analysis and advice, and in particular to assess the implications of structural adjustment programmes on the food and agriculture sector. The close cooperation in this regard between FAO and financial institutions, such as the International Monetary Fund and the World Bank, was considered necessary.
177. In respect of the priority on sustainable development, the Council recognized that it included the important aspect of environmental protection. It stressed the need for continued close cooperation with UNEP in this regard, especially in the light of recent initiatives in the UNEP Governing Council. The Council stressed that pervasive poverty in many developing regions and the sheer survival needs of the rural poor were at the root of degradation and unsustainable use of natural resources. Accordingly, it was also underlined that the most effective solution rested on poverty alleviation and that the attention to sustainable development should not detract from support but rather should support overall development efforts. General support was expressed for the additional work proposed under the new Sub-programme 2.1.1.6: Sustaining Resource Potentials.
178. With regard to biotechnology, the Council considered that FAO's work should give special attention to the requirements and specific circumstances of developing Member Nations. The broad impact, positive as well as negative, of these emerging technologies should not be overlooked. Some members stressed that FAO should make full use of and complement the work of the broad range of institutions active in this area.
179. The Council recalled the adoption, at its last session, of the Plan of Action for the Integration of Women in Development. It considered that the priority on Women in Development was a welcome and well-timed response and it looked forward to the implementation of concrete activities in 1990-91, within the framework of the Plan of Action.
180. The Council endorsed the priority on agricultural data development which was one of FAO's essential and constitutional roles of collection and dissemination of information.
181. Bearing in mind the fact that aquaculture products would represent a growing and important source of nutrition and that there would be a need for FAO advice in a number of countries, the Council endorsed the priority given to aquaculture.
182. The Council regarded the Tropical Forestry Action Plan as a promising example of a new type of special action programme which could be followed in other concentrated efforts.
183. The Council reiterated its support for the TCP. Most members recalled that the TCP was often catalytic in generating larger and longer-term assistance and had a proven record of responsiveness to the urgent and felt requirements of beneficiary countries. While welcoming the net increase proposed for 1990-91, they expressed regret that the proposed increase was not higher and that the share of this programme, in the overall Regular Programme budget, had been declining. In this connection, it was suggested that in response to expressed needs the level of future TCP appropriations should see a steady expansion towards a given target percentage of the total budget.
184. While generally recognizing the importance attached to the TCP, some members nevertheless questioned the need for an increase in the level of its resources. Some of these called for greater transparency in its operation. Suggestions were also made that the activities under the TCP should conform to Regular Programme priorities or could be narrowed down, in particular to the preparation and support of special action programmes and emergencies.
185. Members provided diverse views on programme priorities and specific activities to which they attached importance and which form part of Council proceedings through its verbatim records. The Council recalled, in this connection, the detailed views on the proposals available in the reports of the Committee on Agriculture, the Committee on Fisheries and the Programme Committee. It was assured that the comments and recommendations would be carefully examined in the formulation of the full Programme of Work and Budget.
186. Numerous references were made to several cross-sectoral priorities, namely, food security, attention to small farmers and training, inter-country cooperation (ECDC/TCDC). Reference was also made to advice in the management of large-scale public sector farms. The essential role of FAO in the conservation of both plant and animal genetic resources was stressed, as well as the overall priority on Africa. The importance of maintaining FAO's presence through its publications was also emphasized.
187. The Council was satisfied that the proposals in the Summary Programme of Work and Budget were in broad accordance with guidance from FAO governing and advisory bodies, including Regional Conferences.
188. Many members made suggestions for increased activities and resources in a number of programmes. Some members also provided suggestions on areas where they felt reductions and savings could be considered, and which might permit reducing overall resource requirements. In this connection, it was observed that the overall increase of the number of programme elements risked to contribute to a dispersion of efforts. Others felt that the increase in the exhibition of programme elements was the result of the effort to achieve greater transparency and carried no risks of dispersion of efforts.
189. The Council stressed the need for close interaction between the Regular and Field Programmes, and underlined the contribution of Special Action Programmes in this regard which gave full expression to the catalytic effect of Regular Programme funds to mobilize extra-budgetary support. The Council welcomed the recent upturn in FAO/UNDP delivery and noted the satisfactory level of activity under Trust Fund arrangements.
190. Many members touched on the subject of FAO's Regional and Country Offices, either separately or in relation to each other. Several members reiterated the useful role which Regional Offices played in their respective regions. Other members considered that Country Offices should be the principal means of decentralization of FAO action to the field and required strengthening. The Council recognized that this aspect would form part of further discussions in connection with the FAO Review.
191. The Council noted that the estimates of cost increases given in the Summary Programme of Work and Budget had been made on the basis of the established methodology and had been subjected to a detailed review by the Finance Committee. It generally concurred with the view of the Finance Committee that these estimates had been calculated on a conservative basis, and were the best that could be made at this time.
192. In response to specific queries, some clarifications were provided on the rationale and calculation of the cost increases estimated. The Council noted that the Director-General had deliberately not made additional provision for some cost increases in order to contain their overall level, and that the cost increases would have to reflect the effects of the General Service salary survey to be conducted by the International Civil Service Commission (ICSC) as well as additional costs resulting from decisions of the UN General Assembly following the ICSC's comprehensive review of conditions of service of staff in the Professional and higher categories. It looked forward to an updated analysis in the full Programme of Work and Budget.
193. The Council recalled that the eventual effective working budget for 1990-91 would also depend on prevailing LiraUS dollar exchange rates at the time of the Conference. It noted that current rates were significantly higher than the rate of Lire 1 235 to US$ 1, adopted for the current Programme of Work and Budget, and that if such a differential were to continue, it would result in a lower budget level in US dollar terms at the time of adoption by the Twenty-fifth FAO Conference. A few members suggested that the merits of an average exchange rate for a representative period being adopted for the Programme of Work and Budget be explored, possibly by the Finance Committee.
194. The great majority of the members of the Council fully supported the Director-General's proposals, despite their wish to see a higher increase in the budget level than the modest increase proposed. A few members, while supporting the proposed programme increase in view of the extensive requirements for FAO action, expressed some concern at the impact of the proposed budget level on assessed contributions of developing countries facing economic and financial difficulties due, among other factors, to the burden of external debt. A few other members, while reiterating their governments' support for the Organization's programmes, indicated their governments' continued support for a policy of zero real growth and maximum absorption of cost increases for organizations of the UN System. Finally, a few members reserved their governments' positions on the budget level until the Conference.
195. The Council generally supported the Director-General's proposals for the Summary Programme of Work and Budget 1990-91. It accordingly invited the Director-General to proceed to finalize his proposals for the full Programme of Work and Budget, on the basis of the Summary and taking into consideration the reactions to it. The Gouncil shared the hope of the Director-General that at the Conference all Member Nations would adopt by consensus the Programme of Work and Budget for 1990-91.
196. The Council took note of the Programme Committee's report on its discussion of six reports of the UN Joint Inspection Unit and the Summary Programme of Work and Budget 1990-91, which had been considered in its Fifty-seventh Session.
197. The Council also received a report from the Programme and Finance Committees, supplemented by presentations by the Chairmen of the two Committees, on progress in implementing the Review of FAO under the terms of Resolution 6/87.
198. During their Third Special Joint Session, from 18 to 26 May 1989, the Committees had examined the reports of the expert groups on FAO's Objectives, Role, Priorities and Strategies, and FAO's Field Operations, as well as the Report of the Director-General. They had also considered the executive summaries of the consultants' reports for the FAO Management Review, with the, Director-General's preliminary comments thereon.
199. The Committees would meet again, from 25 to 29 September 1989, for their Fourth Special Joint Session, to complete their work by adopting their report to the Council. In the interim, the two Chairmen had been requested to prepare a draft of this report, which would be circulated to all members of the Committees and considered by a Drafting Support Group in late August-early September. Several members expressed concern about the agreed schedule, since they would have appreciated having more time for an in-depth exchange of views on the substantive issues of the Review.
200. The Council was informed that the cost of the Review itself had already passed the US$ 2 million mark, excluding Secretariat staff time and the time spent in debate in the Council and Conference.
201. The Council considered that its own discussion of the substantive issues in the Review would take place at its Ninety-sixth Session in November 1989, when both the reports of the two Committees and of the Director-General would be available. To allow more time for this substantive debate, it was suggested that the Ninety-sixth Session of the Council be suitably extended. It was stressed that distribution of the reports as soon as feasible after the Committees finished their work would also facilitate on-going informal contacts between Member Nations, and accordingly enhance the fruitfulness of the Council's debate.
202. Several members underlined the desirability of the experts' reports being formally released, as early as possible, to the Membership as a whole, perhaps as annexes to the Committees' report, in view of their relevance to the on-going review process and to parallel discussions taking place elsewhere in the UN System. Most members, however, were of the view that it was premature to consider the formal release of the experts' reports, and that this should be left to the two Committees to decide, if and when they deemed such release to be necessary and in such manner as they deemed fit. In the light of the discussion, the Council agreed that it was up to the two Committees to consider the question of the eventual release of the experts' reports.
203. The Council recalled the Director-General's view, as indicated in his opening address, that the Conference could consider a supplementary appropriation for the implementation of recommendations arising from the Review, and noted that he proposed to submit to the Programme and Finance Committees an estimate of the cost of implementing some of the measures under discussion. Several members stated that in their view such measures should result in increased efficiency which could lead to savings and not necessarily to additional costs. The majority was of the view that it would not be practical and realistic to exclude the need for supplementary resources. The Council agreed that a full discussion of the issue should await the Council and Conference in November 1989.
204. In conclusion, the Council welcomed the constructive spirit in which the two Committees were carrying out their task. It reaffirmed that the central objective of the Review was to strengthen the Organization, and reaffirmed the desire of all Members to reach a consensus on the means of achieving this objective.
205. The Council reviewed the report of the Finance Committee as presented in document CL 95/8 and noted the information regarding the evolution of the financial situation. The Council noted with appreciation the information provided by the Chairman of the Finance Committee as to the content of the Report in its introduction. It noted that in spite of its prior appeals, and those of the Conference, for timely payment of assessed contributions, the rate of receipt of contributions was still very unsatisfactory.
206. In this connection, the Council noted that a number of Member Nations were at risk of losing their voting rights at the next session of the Conference.
207. The Council took note of the 1988 Annual Report on Budgetary Performance to Member Nations and the views of the Finance Committee thereon. Questions were also raised in relation to the disbursement of TCP funds and some clarifications were given.
208. The Council expressed its support for FAO's active involvement in the development of new support cost arrangements for UNDP's Fifth Country Programming Cycle, from 1992 onwards (as described in paragraphs 3.59 to 3.64 of document CL 95/8). It noted that UNDP had engaged four outside experts to study various optional arrangements, in close liaison with FAO and other agencies, and that the report of these experts would be considered by the UNDP Special Governing Council Session of February 1990.
209. Among the issues noted by members were the need to seek reimbursement based on actual costs, to incorporate protection of the amount of reimbursement against the effect of currency fluctuations on costs, and to develop a structure which guaranteed the most effective use of FAO's capacities. It was also stressed that the arrangement should promote efficiency in the use of the resources.
210. A number of members emphasized that FAO should seek the fullest possible compensation for the support costs it incurred in executing UNDP projects. Several others however underlined that a substantial Regular Programme subsidy of such costs was inevitable, and generally acceptable since Field Programmes benefit the Regular Programme and since the two Organizations shared the same membership. In this connection, relevance of the UNDP arrangements to support cost reimbursement for Trust Fund projects was mentioned.
211. Members underlined that the Council should be kept informed of developments in this matter, and that FAO's Governing Bodies should be in a position to express their views fully on any proposed changes in UN System support cost reimbursement arrangements.
212. As regards the Headquarters Accommodation Project, the Council reiterated its thanks to the Host Government for financing the construction project and expressed the hope that the project would be completed expeditiously.
213. The Council noted the adoption by the UN General Assembly at its Forty third Session (1988) of recommendations by the International Civil Service Commission (ICSC) to increase the children's allowance for the Professional and higher categories, and the education grant. It further noted that the Director-General had introduced the increased children's allowance with effect 1 January 1989, and the revised education grant with effect from the school year in course on 1 January 1989 under the authority delegated to him by Staff Regulation 301.122, and that the Staff Regulations had been amended accordingly.
214. The Council noted the developments regarding the comprehensive review of conditions of service in the Professional and higher categories which had been undertaken by ICSC with the objective of establishing a sound and stable methodological basis for the remuneration of the staff in the UN Common System. It also noted that resolution 43/226 of the General Assembly had requested ICSC to give priority to this review in order to be able to submit a report to the Assembly at its Forty-fourth Session (1989).
215. The Council was informed of the special interest expressed by the Administrative Committee on Co-ordination in the subject of the comprehensive review. The ACC had decided to meet in special session in July 1989 in order to study the results/recommendations of a tripartite technical working group set up for the purpose of preparing basic documentation for the review.
The Council was also informed that the working group consisted of representatives from the International Civil Service Commission, organizations in the UN Common System and staff associations - the latter having resumed participation in the work of ICSC limited to the comprehensive review only.
216. The Council noted that ICSC would pursue collection of information on the practice by certain governments of making supplementary payments to or deductions from their nationals' salaries working in the Common System. The Council also noted the Committee's views that continuation of such practices would suggest that UN salaries were not competitive.
217. The Council was informed of the developments in conditions of service of the staff which had been reviewed by the Finance Committee. With regard to post adjustment, it noted that the findings of the November 1987 place-to-place survey conducted in Rome had resulted in transitional measures being applied by the ICSC, i.e. the freezing of take-home pay for Professional and higher categories serving at Headquarters. It further noted that these transitional measures had been lifted and the normal operation of the post adjustment system resumed with effect from 1 May 1989. In this connection, one member noted that the post adjustment class had remained rather stable in Rome over the last two years.
218. The Council noted that, in line with the methodology approved by the UN General Assembly and as a consequence of the granting of two new classes of post adjustment to New York, the scale of Pensional Remuneration for staff in the Professional and higher categories had been increased effective 1 January and 1 May 1989. It was also informed that the rate of contribution to the Pension Fund would be raised from 22.20 to 22.50 (15 percent paid by the Organization and 7.50 percent by staff participants) effective 1 July 1989.
219. The Council noted that the increase in staff costs and impact on the Budget resulting from the changes in pension matters, children's allowances and education grant mentioned above, had been brought to the attention of the Finance Committee, together with the assurance that these increases would be absorbed within the Regular Programme during 1989.
220. The Council noted the status of contributions at 16 June 1989, compared to the same date in 1988, as well as the details of amounts received from each Member Nation during 1989 and of outstanding contributions, as shown in Appendix G to this Report, as follows. In addition, the Council noted that two countries had paid their contributions in full and one country had paid part of its arrears between 16 and 23 June 1989.
| (for comparison) | ||
| 1989 | 1988 | |
| ________________ ab | ________________ | |
| US$ | US$ | |
| Amounts outstanding at 1 January | ||
| Current assessments | 240 920 000.00 c | 240 920 000.00 c |
| Contributions in arrears | 109 852 150.01 | 93 876 857.21 |
| Total | 350 772 150.01 | 334 796 857.21 |
| = = = = = = = = = | = = = = = = = = = | |
| Receipts 1 January to 16 June | ||
| Current assessments | 103 811 890.44 | 120 673 637.63 |
| Contributions in arrears | 9 258 383.54 | 4 931 018.28 |
| Total | 113 070 273.98 | 125 604 655.91 |
| = = = = = = = = = | = = = = = = = = = | |
| Amounts outstanding at 16 June | ||
| Current assessments | 137 108 109.56 | 120 246 362.37 |
| Contributions in arrears | 100 593 766.47 | 88 945 838.93 |
| Total | 237 701 876.03 | 209 192 201.30 |
| = = = = = = = = = | = = = = = = = = = |
________________
a/Appendix G sets out full details of receipts during 1989.
(US$ 113 070 273.98) and outstanding contributions of all Member Nations.
b/ Contributions in arrears include arrears payable under Conference
authorizations by instalments due in 1989 (in 1988 in comparative
figures) and in future years (on 1 January 1989, US$ 43 933.96 due in
1989 and US$ 2 23 891.02 due in future years).
c/ Of which US$ 600 000.00 relates to the Tax Equalization Fund.
221. The month-end cumulative percentages of 1989 assessments received during the five and a half months of 1989, as compared to percentage receipts during the preceding four years, was as follows:
(Cumulative - year to date)
|
1989 |
1988 |
1987 a |
1986 |
1985 b |
|
|
% |
% |
% |
% |
% |
|
|
January |
9.81 |
7.01 |
10.41 |
10.37 |
24.69 |
|
February |
24.28 |
20.62 |
24.25 |
15.89 |
28.25 |
|
March |
31.25 |
31.10 |
32.40 |
24.50 |
30.95 |
|
April |
34.60 |
33.94 |
44.75 |
30.26 |
37.31 |
|
May |
37.70 |
43.51 |
50.38 |
36.10 |
47.89 |
|
June |
43.58 c |
53.03 |
61.00 |
40.67 |
51.35 |
|
July |
54.38 |
63.25 |
62.48 |
59.63 |
|
|
August |
60.96 |
63.78 |
63.00 |
60.14 |
|
|
September |
61.89 |
64.47 |
63.40 |
63.33 |
|
|
October |
65.20 |
65.77 |
64.75 |
73.52 |
|
|
November |
65.23 |
66.15 |
65.86 |
91.35 |
|
|
December |
76.65 |
66.17 |
66.96 |
92.50 |
a Includes US$ 17 354 871.34 (8.73% of 1987 assessments) as distribution of the cash surplus of the 1984-85 biennium applied as of 1 January 1987.
b Includes US$ 41 005 487.00 (20.72% of 1985 assessments) as distribution of the cash surplus of the 1982-83 biennium applied as of 1 January 1985.
cReceipts at 16 June; preceding years at month end as well as at 31 December.
222. At 16 June 1989, the position of Member Nations (and the number of Member Nations with arrears) with comparative figures at the same date during the preceding four years, was as follows:
|
Number of Member Nations |
||||||
|
Current Assessments |
Arrears |
|||||
|
% |
Paid in |
Part |
No |
|||
|
Received |
Full |
Paid |
Payment |
Total |
||
|
1989 |
43.58 |
36 |
23 |
99 |
158 |
61 |
|
1988 |
47.05 |
35 |
42 |
81 |
158 |
53 |
|
1987 a1 |
57.40 |
52 |
20 |
86 |
158 |
55 |
|
1986 |
38.30 |
37 |
28 |
93 |
158 |
54 |
|
1985 b1 |
49.20 |
45 |
26 |
87 |
158 |
51 |
a1 To facilitate comparisons, applications of the cash surplus (9.20%) to
the current assessments of 80 Member Nations are excluded from the Number
of Member Nations.
b1 To facilitate comparisons, applications of the cash surplus (20.72%) to
the current assessments of 84 Member Nations are excluded from the Number
of Member Nations
(Cumulative - year to date)
Jan. Feb.Mar.Apr. May Jun.Jul.Aug. Sep. Oct. Nov.Dec. 1989 —! —! — 1988_______1987— — —
223. The Council was informed that receipts at 16 June 1989 of the 1989 assessments were more favourable than those of 1986 but less favourable than those of 1988 (comparable years without a cash surplus distribution).
2 24. Only 36 Member Nations had paid their assessments in full, while 23 Member Nations had made only a partial payment, leaving 99 Member Nations who had made no cash payment at all in 1989.
(Appendix G sets out details of amounts outstanding)
225. In this connection, the Council noted with concern that, at 16 June 1989, a total amount of US$ 100 593 766.47 of arrears of contributions remained outstanding, including US$ 78 090 211.57 overdue from the largest contributor. As of 16 June 1989, 37 Member Nations had made cash payments on arrears, of which 19 had paid their arrears in full. Arrears of more than US$ 1 million were due from eight Member Nations, totalling US$ 93 978 607.53 and representing 93 percent of arrears outstanding.
226. Of the total amounts due at 1 January 1989 amounting to US$ 4 461 624.57 and US$ 4 570 143.12 8/ to the SRA (Special Reserve Account) and WCF (Working Capital Fund) respectively, 46 Member Nations had by 16 June 1989 made cash payments, leaving balances of US$ 4 015 036.00 and US$ 3 289 697.00 respectively outstanding on 16 June 1989.
227. Notwithstanding the positive response made by many Member Nations to the Director-General's special appeals for payment of their arrears and outstanding contributions, the Council was informed that 122 Member Nations had made no payment, or only partial payment of 1989 assessed contributions, and 61 Member Nations owed arrears for 1988 and prior periods. Some members advised the Council of the situation regarding the payment of their contributions and arrears. The Council welcomed the information given by them. It, however, noted that there remained great uncertainty regarding the amount and timing of payment of the heavy overdues of current assessments and arrears owed to the Organization.
228. In this connection, the Council recalled that, in accordance with the Financial Regulations, assessed contributions of all Member Nations to the budget of the Organization were due and payable in full on 1 January 1989. As a consequence, the Council appealed to all Member Nations which had not yet fulfilled their financial obligations to the Organization to arrange to remit amounts due at the earliest possible date. Furthermore, the Council requested Member Nations to advise the Director-General as to the amounts and timing of their expected payment of the contributions and arrears outstanding.
229. The Council noted that as a result of some payments for replenishment of the Working Capital Fund and the Special Reserve Account, these showed balances of US$16.2 million and US$12.2 million at 31 March 1989 respectively, as opposed to their zero balances at 1 January 1988. It also noted that it would be necessary to use the balance remaining in the Working Capital Fund at year end to partially offset the expected deficit, unless sufficient payments of arrears by members were received.
230. The Council was informed of the financial situation of the Terminal Payment Fund and noted that, in relation to its excess of assets over liabilities, proposals regarding extension of its coverage would be reviewed by the Finance Committee at a future session.
231. The Council, noting the comments of the Finance Committee concerning the proposed FAO Scale of Contributions for 19 90-91, recalled that the Eighth Session of the FAO Conference (1955) had adopted a Resolution establishing that FAO Scales of Contributions in the future should be derived directly from the UN Scale of Assessments. In the interim, the FAO Conferences in 1975 and 1983 had reviewed and confirmed the validity of this practice.
2 32. Some members expressed concern that the Scale did not reflect recent changes in the economic positions of Member Nations and that owing to the time required to collect and analyse the data the ten-year statistical base period used to determine each Member Nation's current capacity to pay effectively ended with the year 1986. Notwithstanding these reservations, the members of the Council acknowledged that the UN Committee on Contributions was the most qualified body for assessing Member Nations' real ability to pay.
2 33. As a consequence, the Council recommended the following draft resolution for adoption by the Conference:
THE CONFERENCE,
Having noted the recommendations of the Ninety-fifth Session of the Council,
Confirming that, as in the past, FAO should follow the UN Scale of Assessments subject to adaptation to reflect the different membership of FAO:
1. Decides that the FAO Scale of Contributions for 1990-91 should be derived directly from the UN Scale of Asessments in force during 1989;
2. Adopts for use in 1990 and 1991 the Scale as set out in Appendix H of this report.
234. The Council approved with one change the revised 1988-89 Calendar of Sessions of the Council and of those Bodies which report to it. The Calendar as approved is given in Appendix I to this Report.
1CL 95/3; CL 95/3-Corr.l (E only); CL 95/4; CL 95/8; CL 95/8-Corr.1;CL 95/PV/5; CL 95/PV/6; CL 95/PV/7; CL 95/PV/8; CL 95/PV/9; CL 95/PV/18.
2 CL 95/8; CL 95/8-Corr.1; CL 95/PV/9; CL 95/PV/l0; CL 95/PV/18.
3 CL 95/8, paras. 3.18-3.21; CL 95/8, Appendix A; CL 95/PV/11; CL 95/PV/18.
4 CL 95/8; CL 95/8- Corr. 1; CL 95/PV/11; CL 95/PV/18.
7 CL 95/LIM/l; CL 95/PV/11; CL 95/PV/18.
8 Of which US$ 1 567 143.12 from 1988 call and US$ 3 003 000.00 from 1989 call.
10CL 95/8, paras. 3.45 - 3.49; CL 95/8-Corr. 1; CL 95/PV/11; CL 95/PV/18.
9CL 95.8, paras. 3.38-3.44 and 3.50-3.52; CL 95/PV/11; CL 95/PV/18.
11 CL 95/16; CL 95/PV/17; CL 95/PV/18.
5 CL 95/8, paras. 3.84.88; CL 95/PV/11; CL 95/PV/18.
6CL 95/8, paras. 3.71-3.83; CL 95/8-Corr. 1; CL 95/PV/11; CL 95/PV/18.
