WT/BFA/114
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Organization / RESTRICTED
WT/BFA/114
8 December 2009
(09-6348)
Committee on Budget, Finance and Administration
rEPORT OF THE MEETINGs HELD ON 5, 12, 19, 24 November,
4 and 7december2009
1. The WTO Committee on Budget, Finance and Administration met on 5, 12, 19 and 24November, 4 and 7 December2009 under the chairmanship of Ambassador Marie-Claire SwärdCapra (Sweden). The terms of reference and composition of the Committee are set out in document WT/L/44/Rev.1. The agenda contained in document WTO/AIR/3463/Rev.1 was adopted.
I. Director General's Budget Proposals for the Biennium 2010-2011
2. A member of the Secretariat presented the Director-General's budget proposals for the biennium 2010-2011. The Committee was informed that these budget proposals flowed from the Director-General's address to the General Council in April 2009, in which he had presented Members with his priorities for the Secretariat to meet the challenges faced by the WTO in the global economy. The Committee was informed that the budget proposals contained provisions for enhancing the role of the WTO in monitoring, surveillance and trade intelligence, together with a strengthened capacity in outreach. The Secretariat continued to apply high standards of efficiency and respect for the environment.
3. Conscious of the financial constraints confronting Members in the global financial crisis, the Director-General's budget proposals for the biennium 2010-2011 amounted to an overall increase of 3.37 and 3.16 per cent for each of the respective years. These budget proposals also contained the budget proposals of the International Trade Centre (ITC) regular budget, which represented an increase of 8.21 and 5.86 per cent for 2010 and 2011, respectively.
4. With the exception of the increase for the ITC, the Secretariat summarized the WTO increases for the biennium as primarily: (i) statutory, in order to honour existing commitments with respect to the salary adjustment methodology, health insurance premiums and pension benefits; (ii) staff increases, namely two additional posts in 2010 and a further four in 2011, with increases in temporary assistance to meet special needs; and (iii) other, comprising increases of CHF0.4million and CHF1,7million for 2010 and 2011, respectively, including the proposed increases of CHF1,4million and CHF1,1million, respectively, in the ITC budget.
5. The Committee was informed that, in addition to the funding of the budget through Member contributions and miscellaneous income, the Director-General proposed to refund part of the overall 2008 surplus, in the amount of CHF2,800,000.
6. The Members, after having debated and sought additional explanations to the different issues raised during the examination of the budget proposals, were presented with a revised proposal amounting to 2.50 and 2.54 per cent for each of the respective years 2010 and 2011, inclusive of the provision for the ITC.
7. This revised proposal included: (i) a reduction in the ITC budgetary provision; (ii) an adjustment of the provisions made for statutory increases in the light of more recent information; (iii)a reduction in the funding requested for new posts by the equivalent of three posts; (iv) the cost- neutral conversion of two director posts to five new posts at the junior professional grade 6; (v) a reduction of the initial temporary assistance allocation; (vi)an increase in the vacancy factor to 1.88per cent of established posts; (vii) the foreclosure of an existing leasing arrangement; and (viii)the removal, at the request of Members, of the funding related to the CO2 financial offset initiative.
8. After additional discussions, and at the request of one Member supported by other Members, the Chair proposed that the Secretariat further reduce its proposals in order to limit the increase of the WTO portion of the budget (i.e. excluding the ITC portion of the budget) to 4per cent over the biennium. The Chair suggested two reductions: first, to apply the same estimated salary adjustment in 2011 as in 2010, and, secondly, to reduce expenditure for reproduction in 2011.
9. Members of the Committee took note of the Director General's intention to reallocate 18existing posts to new functions in order to meet the evolving priorities of the Organization. Members were assured by the Secretariat that this reallocation of existing posts in order to cover new staffing requirements would not lead to the creation of new temporary assistance positions that would later become the subject of requests for permanent posts.
10. One Member expressed concerns that budgetary savings could impact upon the resources available for the official language interpretation available during meetings. The Secretariat provided an assurance that there was no intention to reduce resources for interpretation services.
11. Members generally supported the initiative to make the Secretariat a greener organization. However, some Members considered the purchase of CO2 financial offsets premature.
12. Members also expressed their concern over the lengthy delay in presentation and complicated examination of the ITC budget proposals. Several Members called for a thorough review of this process in 2010.
13. The Committee concluded with the approval of the following recommendation.
A. Budget estimates for 2010
14. The Committee submits to the General Council for consideration and approval the following draft resolution on the expenditure of the World Trade Organization in 2010 and the ways and means to meet such expenditure.
The General Council,
HAVING CONSIDERED,
The Estimates of expenditure of the Secretariat of the World Trade Organization for 2010 (CHF188,483,400) and for the Appellate Body and its Secretariat for 2010 (CHF5,506,100) amounting to a total of CHF193,989,500as set forth in the Schedules I-A, I-B and I-C annexed to this Resolution.
RESOLVE that,
1. The financing of the amount of CHF193,989,500 with regard to the Secretariat of the WTO and the Appellate Body and its Secretariat referred to above shall be as follows:
(a) by contributions from Members, on the basis of a minimum contribution of 0.015percent, in the amount of CHF189,400,000 (ScheduleII);
(b) by use of the 2008 Surplus in the amount of CHF2,800,000, and
(c) by miscellaneous income estimated at CHF1,789,500 (Schedule III).
2. The contributions of the Members shall be assessed in accordance with the attached scale of contributions. Contributions from Members in respect of the 2010 budget are considered as due and payable in full as at 1 January 2010.
B. Budget estimates for 2011
15. The Committee, bearing in mind the guidelines on biennial budgeting (WT/BFA/W/105/Rev.1) approved by the General Council (WT/GC/M/82), including the reference to revisions to the second year of the biennium,[1] recommends to the General Council for consideration and approval the following draft resolution on the expenditure of the World Trade Organization in 2011 and the ways and means to meet such expenditure.
The General Council,
HAVING CONSIDERED,
The Estimates of expenditure of the Secretariat of the World Trade Organization for 2011 (CHF192,521,200), and for the Appellate Body and its Secretariat for 2011 (CHF5,683,400) amounting to a total of CHF198,204,600 as set forth in the Schedules I-A, I-B and I-C annexed to this Resolution.
RESOLVE that,
1. The financing of the amount of CHF198,204,600 with regard to the Secretariat of the WTO and the Appellate Body and its Secretariat referred to above shall be as follows:
(a) by contributions from Members, on the basis of a minimum contribution of 0.015percent, in the amount of CHF196,300,000; and
(b) by miscellaneous income estimated at CHF1,904,600 (Schedule III).
2. The contributions of the Members shall be assessed in 2010 based on the up-dated trade statistics in 2010 as foreseen in Regulation 12.3(b) of the revised Financial Regulations of the WTO, document WT/L/156/Rev.2. Contributions from Members in respect of the 2011 budget are considered as due and payable in full as at 1 January 2011.
3. In accordance with Regulations 6 and 10 of the revised Financial Regulations of the WTO, any revision of the 2011 budget estimates shall be submitted in 2010 to the Committee on Budget, Finance and Administration for its examination and formulation of a recommendation for consideration by the General Council.
WT/BFA/114
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SCHEDULE I – A
2010-2011 PROPOSED REVISED CONSOLIDATED WTO BUDGET FOR
THE WTO SECRETARIAT AND THE APPELLATE BODY AND ITS SECRETARIAT
(in Swiss Francs)
Part / Section/Line / 2009 / Inc/Dec 2010 / 2010 / Inc/Dec 2011 / 2011 / Diff. 2010 / Diff. 2011A / Sect 1 Work Years
(a) Salary / 86,811,900 / 1,619,400 / 88,431,300 / 2,386,800 / 90,818,100 / 1.87% / 2.70%
(b) Pension / 17,639,300 / 1,239,200 / 18,878,500 / 304,700 / 19,183,200 / 7.03% / 1.61%
(c) Common Staff Costs / 16,986,000 / 1,303,500 / 18,289,500 / 216,700 / 18,506,200 / 7.67% / 1.18%
Sect 2 Temporary Assistance / 14,975,500 / 899,800 / 15,875,300 / 117,400 / 15,992,700 / 6.01% / 0.74%
B / Sect 3 Communications
(a) Telecommunications / 506,500 / (20,000) / 486,500 / 20,000 / 506,500 / (3.95%) / 4.11%
(b) Postal Charges / 1,305,000 / (5,000) / 1,300,000 / (20,000) / 1,280,000 / (0.38%) / (1.54%)
Sect 4 Building Facilities
(a) Rental / 609,000 / 11,000 / 620,000 / 5,000 / 625,000 / 1.81% / 0.81%
(b) Utilities / 1,876,000 / 38,000 / 1,914,000 / 15,000 / 1,929,000 / 2.03% / 0.78%
(c) Maintenance and Insurance / 1,211,000 / 98,000 / 1,309,000 / 3,000 / 1,312,000 / 8.09% / 0.23%
Sect 5 Permanent Equipment
(a) Permanent Equipment / 1,266,000 / (263,000) / 1,003,000 / 22,000 / 1,025,000 / (20.77%) / 2.19%
(b) Perm. Equipment Lease / 932,000 / (805,000) / 127,000 / (63,000) / 64,000 / (86.37%) / (49.61%)
Sect 6 Expendable Supplies / 1,305,000 / (114,000) / 1,191,000 / 90,000 / 1,281,000 / (8.74%) / 7.56%
Sect 7 Contractual Services
(a) Reproduction / 1,425,000 / (20,000) / 1,405,000 / 215,600 / 1,620,600 / (1.40%) / 15.35%
(b) Office Automation / 3,756,000 / 35,000 / 3,791,000 / (426,000) / 3,365,000 / 0.93% / (11.24%)
(c) Other / 282,000 / (63,000) / 219,000 / 19,000 / 238,000 / (22.34%) / 8.68%
(d) Security Outsourcing / 3,787,000 / 96,000 / 3,883,000 / 130,000 / 4,013,000 / 2.53% / 3.35%
C / Sect 8 Staff Overheads
(a) Training / 1,775,000 / (250,000) / 1,525,000 / 0 / 1,525,000 / (14.08%) / 0.00%
(b) Insurance / 2,622,500 / 185,500 / 2,808,000 / 203,000 / 3,011,000 / 7.07% / 7.23%
(c) Joint Services / 204,000 / 51,000 / 255,000 / 0 / 255,000 / 25.00% / 0.00%
(d) Miscellaneous / 32,000 / 4,000 / 36,000 / 0 / 36,000 / 12.50% / 0.00%
Sect 9 Missions
(a) Missions Official / 1,533,000 / 0 / 1,533,000 / 0 / 1,533,000 / 0.00% / 0.00%
(b) Missions Technical / 1,406,000 / 0 / 1,406,000 / 0 / 1,406,000 / 0.00% / 0.00%
Sect 10 Trade Policy Courses / 3,823,600 / (508,600) / 3,315,000 / 0 / 3,315,000 / (13.30%) / 0.00%
Sect 11 Various
(a) Representation and
Hospitality / 299,000 / 0 / 299,000 / 0 / 299,000 / 0.00% / 0.00%
(b) Dispute Settlement Panels / 1,247,000 / (260,000) / 987,000 / 0 / 987,000 / (20.85%) / 0.00%
(c) Experts / 50,000 / 0 / 50,000 / 0 / 50,000 / 0.00% / 0.00%
(d) Appellate Body Members / 789,700 / 3,800 / 793,500 / 3,800 / 797,300 / 0.48% / 0.48%
(e) Library / 700,000 / 0 / 700,000 / 0 / 700,000 / 0.00% / 0.00%
(f) Publications / 790,000 / 13,000 / 803,000 / 0 / 803,000 / 1.65% / 0.00%
(g) Public Information Activities / 270,000 / 110,000 / 380,000 / 0 / 380,000 / 40.74% / 0.00%
(h) External Auditors / 40,000 / 10,000 / 50,000 / 0 / 50,000 / 25.00% / 0.00%
(i) Ministerial Operating Fund / 0 / 600,000 / 600,000 / 0 / 600,000 / 0.00% / 0.00%
(j) ISO / 57,000 / 0 / 57,000 / 0 / 57,000 / 0.00% / 0.00%
(k) Other / 80,000 / 50,000 / 130,000 / 0 / 130,000 / 62.50% / 0.00%
(l) Appellate Body Operating
Fund / 1,575,700 / (75,700) / 1,500,000 / 100,000 / 1,600,000 / (4.80%) / 6.67%
(m) Security Enhancement
Programme / 330,000 / (330,000) / 0 / 0 / 0 / (100.00%) / 0.00%
Sect 12 Unforeseen / 100,000 / (100,000) / 0 / 0 / 0 / (100.00%) / 0.00%
D / Sect 13 ITC / 16,859,900 / 1,179,000 / 18,038,900 / 872,100 / 18,911,000 / 6.99% / 4.83%
Grand Total / 189,257,600 / 4,731,900 / 193,989,500 / 4,215,100 / 198,204,600 / 2.50% / 2.17%
SCHEDULE I – B
2010-2011 PROPOSED REVISED BUDGET FOR
THE WTO SECRETARIAT
(in Swiss Francs)
Part / Section/Line / 2009 / Inc/Dec 2010 / 2010 / Inc/Dec 2011 / 2011 / Diff. 2010 / Diff. 2011A / Sect 1 Work Years
(a) Salary / 84,732,900 / 1,608,900 / 86,341,800 / 2,328,300 / 88,670,100 / 1.90% / 2.70%
(b) Pension / 17,216,300 / 1,216,700 / 18,433,000 / 294,200 / 18,727,200 / 7.07% / 1.60%
(c) Common Staff Costs / 16,587,000 / 1,272,000 / 17,859,000 / 212,200 / 18,071,200 / 7.67% / 1.19%
Sect 2 Temporary Assistance / 14,909,900 / 899,800 / 15,809,700 / 117,400 / 15,927,100 / 6.03% / 0.74%
B / Sect 3 Communications
(a) Telecommunications / 500,000 / (20,000) / 480,000 / 20,000 / 500,000 / (4.00%) / 4.17%
(b) Postal Charges / 1,305,000 / (5,000) / 1,300,000 / (20,000) / 1,280,000 / (0.38%) / (1.54%)
Sect 4 Building Facilities
(a) Rental / 609,000 / 11,000 / 620,000 / 5,000 / 625,000 / 1.81% / 0.81%
(b) Utilities / 1,863,000 / 38,000 / 1,901,000 / 15,000 / 1,916,000 / 2.04% / 0.79%
(c) Maintenance and Insurance / 1,206,000 / 98,000 / 1,304,000 / 3,000 / 1,307,000 / 8.13% / 0.23%
Sect 5 Permanent Equipment
(a) Permanent Equipment / 1,241,000 / (263,000) / 978,000 / 22,000 / 1,000,000 / (21.19%) / 2.25%
(b) Perm. Equipment Lease / 932,000 / (805,000) / 127,000 / (63,000) / 64,000 / (86.37%) / (49.61%)
Sect 6 Expendable Supplies / 1,285,000 / (114,000) / 1,171,000 / 90,000 / 1,261,000 / (8.87%) / 7.69%
Sect 7 Contractual Services
(a) Reproduction / 1,410,000 / (20,000) / 1,390,000 / 215,600 / 1,605,600 / (1.42%) / 15.51%
(b) Office Automation / 3,746,000 / 35,000 / 3,781,000 / (426,000) / 3,355,000 / 0.93% / (11.27%)
(c) Other / 282,000 / (63,000) / 219,000 / 19,000 / 238,000 / (22.34%) / 8.68%
(d) Security Outsourcing / 3,787,000 / 96,000 / 3,883,000 / 130,000 / 4,013,000 / 2.53% / 3.35%
C / Sect 8 Staff Overheads
(a) Training / 1,750,000 / (250,000) / 1,500,000 / 0 / 1,500,000 / (14.29%) / 0.00%
(b) Insurance / 2,610,500 / 185,500 / 2,796,000 / 203,000 / 2,999,000 / 7.11% / 7.26%
(c) Joint Services / 204,000 / 51,000 / 255,000 / 0 / 255,000 / 25.00% / 0.00%
(d) Miscellaneous / 30,000 / 4,000 / 34,000 / 0 / 34,000 / 13.33% / 0.00%
Sect 9 Missions
(a) Missions Official / 1,496,000 / 0 / 1,496,000 / 0 / 1,496,000 / 0.00% / 0.00%
(b) Missions Technical / 1,406,000 / 0 / 1,406,000 / 0 / 1,406,000 / 0.00% / 0.00%
Sect 10 Trade Policy Courses / 3,823,600 / (508,600) / 3,315,000 / 0 / 3,315,000 / (13.30%) / 0.00%
Sect 11 Various
(a) Representation and
Hospitality / 298,000 / 0 / 298,000 / 0 / 298,000 / 0.00% / 0.00%
(b) Dispute Settlement Panels / 1,247,000 / (260,000) / 987,000 / 0 / 987,000 / (20.85%) / 0.00%
(c) Experts / 50,000 / 0 / 50,000 / 0 / 50,000 / 0.00% / 0.00%
(e) Library / 690,000 / 0 / 690,000 / 0 / 690,000 / 0.00% / 0.00%
(f) Publications / 790,000 / 13,000 / 803,000 / 0 / 803,000 / 1.65% / 0.00%
(g) Public Information
Activities / 270,000 / 110,000 / 380,000 / 0 / 380,000 / 40.74% / 0.00%
(h) External Auditors / 40,000 / 10,000 / 50,000 / 0 / 50,000 / 25.00% / 0.00%
(i) Ministerial Operating Fund / 0 / 600,000 / 600,000 / 0 / 600,000 / 0.00% / 0.00%
(j) ISO / 57,000 / 0 / 57,000 / 0 / 57,000 / 0.00% / 0.00%
(k) Other / 80,000 / 50,000 / 130,000 / 0 / 130,000 / 62.50% / 0.00%
(m) Security Enhancement
Programme / 330,000 / (330,000) / 0 / 0 / 0 / (100.00%) / 0.00%
Sect 12 Unforeseen / 100,000 / (100,000) / 0 / 0 / 0 / (100.00%) / 0.00%
D / Sect 13 ITC / 16,859,900 / 1,179,000 / 18,038,900 / 872,100 / 18,911,000 / 6.99% / 4.83%
Grand Total / 183,744,100 / 4,739,300 / 188,483,400 / 4,037,800 / 192,521,200 / 2.58% / 2.14%
SCHEDULE I – C