Geneva, March 1997
|Programme, Financial and Administrative Committee||PFA|
SIXTH ITEM ON THE AGENDA
Programme and Budget proposals for 1998-99
The Director-General's proposals for further adjustments to the
Programme and Budget proposals for 1998-99
1. During the discussion in the Committee on 21 March of the Director-General's proposals to adjust the original proposals (GB.268/PFA/6/3) there appeared to be broad acceptance of most of the adjustments suggested, (notwithstanding certain hesitations, which will be recorded in the Third Report of the Committee), apart from that concerning the suppression of three senior posts associated with General Management. In order to advance the work of the Committee the present document presents three scenarios, as suggested by the representative of the Government of Germany towards the conclusion of the discussion, as follows:
|Scenario I:||No reductions other than those already accepted on 21 March.|
|Scenario II:||Further reductions as suggested by the Director-General in the course of the discussion on 21 March.|
|Scenario III:||Further reductions "across-the-board".|
Scenario I: No reductions other than those already accepted on 21 March
2. If no further reductions are agreed, then the acceptance of all the adjustments contained in categories A, B, D and E of GB.268/PFA/6/3 would imply an overall budget level of $549,298,824 in constant dollars (i.e. a reduction of 5.2 per cent in real terms), corresponding to $560,031,890 in nominal dollars at a constant exchange rate of 1.16 Swiss francs to the dollar (i.e. a decrease in nominal dollar terms of 3.4 per cent). At the rate of exchange prevailing on 19 March 1997 (1.44 Swiss francs to the dollar), the recosted budget would be approximately equivalent to $487 million or a reduction of 15.9 per cent compared with the corresponding level for the biennium 1996-97.
Scenario II: Further reductions as suggested by the Director-General in the course of the discussion on 21 March
3. The further adjustments suggested by the Director-General in his oral statements on 21 March are detailed in Appendix I attached. If these reductions were accepted, this would imply an overall budget level of $547,101,620 in constant dollars (i.e. a decrease of 5.6 per cent in real terms compared with the budget approved by the Conference in June 1995); which after providing for cost increases corresponds to $557,795,050 at an exchange of 1.16 Swiss francs to the dollar, (i.e. a decrease in nominal dollar terms of 3.75 per cent). At the rate of exchange prevailing on 19 March 1997 (1.44 Swiss francs to the dollar), the recosted budget would be equivalent to approximately $485 million or a reduction of 16.3 per cent compared with the corresponding level for the biennium 1996-97.
Scenario III: Further reductions "across-the-board"
4. The most neutral way of reducing budgetary provisions in the headquarters major programmes is to reduce the present provision for contractual services in the same proportion for each major programme. The main components in this object of expenditure are external collaboration, which includes consultancy services in specialist fields and external printing. In the regions it is envisaged to make a reduction in non-staff costs in proportion to the total budget for each region. (This reduction will in fact be considerably lower in proportion to the total budget for the regional major programmes than the corresponding proportion for headquarters major programmes.) Finally, in Scenario III it is suggested to maintain three reductions which already figure in Scenario II, namely: the elimination of any provision for the replenishment of the Building and Accommodation Fund; the deletion of one General Service post under major programme 220 (Relations, meetings and documents services); and the reduction of resources for the enhancement of the usefulness of ILO databases (under major programme 145). The reductions by major programme identified in this way are shown in Appendix II attached.
5. In Scenario III the overall level of the budget would be virtually identical to that indicated in paragraph 3 above.
6. When the work of the Committee has been concluded, a table will be prepared summarizing the total effect on the resource provision for each major programme of: the adjustments already agreed in principle, i.e. categories A, B, D and E of the earlier paper; and the decision now before it concerning the choice between Scenarios I, II and III. This summary table (similar in format to Summary Table 1 in the original proposals of the Director-General) will be attached to the Third Report of the Committee when it is submitted to the Governing Body.
7. The Committee may accordingly wish:
(a) to choose between Scenarios I, II and III summarized above and detailed in the appendices attached;
(b) to propose that the Governing Body recommend to the International Labour Conference at its 85th Session (June 1997) a provisional programme level of $...,...,...(1) estimated at the 1996-97 budget exchange rate of 1.16 Swiss francs to the US dollar, the final exchange rate and the corresponding US dollar level of the budget and Swiss franc assessment to be determined by the Conference;
(c) to submit to the Governing Body for proposal to the Conference at the same session a resolution for the adoption of the Programme and Budget for the 66th financial period (1998-99) and for the allocation of expenses among member States in that period in the following terms:
The General Conference of the International Labour Organization, in virtue of the Financial Regulations, adopts for the 66th financial period, ending 31 December 1999, the budget of expenditure for the International Labour Organization amounting to $......... and the budget of income amounting to $........., which, at the budget rate of exchange of .... Swiss francs to the US dollar, amounts to ............. Swiss francs.
Bearing in mind --
the General Conference resolves --
Geneva, 24 March 1997.
Point for decision: Paragraph 7.
Summary of programme reductions
|60, 65, 80, 85, 90, 110, 120, 125||-||Reductions in the technical major programmes in staff and non-staff costs to be determined by department directors||-||33||225,080||540,560|
|145||-||Reduce provision for the project on enhancing the usefulness of ILO databases||-||-||110,000||110,000|
|220||-||Reduce provision for typing services by one GS post||-||24||-||229,440|
|250-280||-||Reduce provisions for external collaboration, communications, supplies and equipment||-||-||500,000||500,000|
|290||-||Eliminate provision for the replenishment of the Building and Accommodation Fund||387,935||387,935|
|65 & 145||-||Delete provision for the ILO Social Forum and the ILO Enterprise Forum||8||-||293,570||406,466|
|225 & 230||-||Postpone the International Symposium on the Future of Employers' Organizations and the International Symposium on Trade Unions and the Informal Sector until the biennium 2000-01||4||-||394,394||450,842|
|100||-||Postpone one sectoral meeting until the biennium 2000-2001||-||-||430,500||430,500|
|145||Further modify the provision for the project on the enhancement of ILO databases by the amount necessary to realize the total reduction shown below|
The total shown above in constant dollars becomes $2.3 million when cost increases are incorporated.
Summary of programme reductions
|Major programme||Total reduction|
|10||International Labour Conference||145,000|
|30||Major Regional Meetings||10,456|
|50||International Labour Standards and Human Rights||46,180|
|60||Employment and Training||180,842|
|65||Enterprise and Cooperative Development||67,718|
|80||Industrial Relations and Labour Administration||51,185|
|90||Working Conditions and Environment||78,207|
|130||International Institute for Labour Studies||-|
|140||Equality for Women||3,374|
|185||Information Technology and Communications||24,266|
|190||Library and Documentation||43,944|
|200||Programming and Management||4,662|
|220||Relations, Meetings and Document Services||250,634|
|245||Active Partnership and Technical Cooperation||1,880|
|250||Field Programmes in Africa||89,500|
|260||Field Programmes in the Americas||79,000|
|265||Field Programmes in Arab States||18,000|
|270||Field Programmes in Asia & the Pacific||84,500|
|280||Field Programmes in Europe & Central Asia||29,000|
|290||Other Budgetary Provisions||387,935|