130. The Finance Committee had examined and noted within-Chapter transfers and those from Contingencies and had approved the between-Chapter transfers in accordance with the relevant Financial Regulations.
131. The Programme Committee had agreed with this action.
132. In view of a sudden further change occurring in the situation in September 1973, the Finance Committee had agreed that the Director-General could make the further necessary between-Chapter transfers to cover these unbudgeted extra costs prior to obtaining its approval, emphasizing that no precedent should be created thereby.
133. The Council approved the Finance Committee's report and action.
2 CL 61/3 and CL 61/3-Corr. 1.
134. The Council noted that as of 8 November 1973 unpaid contributions totalled $ 6 459 327, of which $ 754 317 represented arrears of contributions due for 1972 or earlier years.
1 CL 61/3, CL 61/3-Corr.1, CL 61/LIM/1 and CL 61/PV/9
CONTRIBUTIONS OUTSTANDING AT 8 NOVEMBER 1973
(Excluding instalments of arrears payable in 1974 and future years)
|ANNUAL ASSESSMENTS AND ARREARS INSTALMENTS|
|Payable in 1972 and Prior||Payable in 1973||TOTAL|
|Central African Republic||15,763||15,864||31,627|
|Syrian Arab Republic||-||15,864||15,864|
|Yemen Arab Republic||23,744||15,864||39,608|
|Minor Exchange Diff.||354||614||968|
a Amounts overdue in accordance with Conference decisions.
135. The Council also noted that amounts payable by Bolivia, Haiti and Paraguay in accordance with Conference Resolutions 33/65, 25/71 and 26/71 respectively were overdue. By these Resolutions, the Conference accepted the proposal of each Member that it liquidate it arrears of contributions over a ten year period while at the same time paying its current contributions in the year of assessment. Amounts presently overdue from Bolivia, Haiti and Paraguay were $ 34 426, $ 20 893 and $ 23 182 respectively.
136. The Council further noted that as the arrears of the Dominican Republic exceeded the contributions due from it for the two preceding calendar years, it risked losing its vote at the forthcoming Session of the Conference in accordance with Article III.4 of the Constitution. The amounts due from Bolivia also exceeded its contributions for the two preceding calendar years.
137. In view of the continuing financial difficulties facing the Organization, the Council recommended to the Conference that it appeal to Member Nations for the prompt payment of contributions in future biennia to ensure a satisfactory cash flow, and thereby permit the fulfilment of the Organization's Programme of Work.
138. The Council noted that as at 30 September 1973 obligations incurred by the Organization for the period 1 January 1972 to 30 September 1973 totalled some $ 77 966 000 against the budget for the biennium of $ 81 660 000. The Council also noted that the cost of support in Chapter II to field programmes in excess of Agency Cost earnings was now shown in the accounts as a separate item and that this reflected a change in the Organization's policy, implemented as from 1 January 1973, to debit programmes and sub-programmes with the cost of time spent thereon (based on time reports and other cost distribution data) rather than with the cost of posts funded from the Regular Programme, as had been done in 1972. The Council took note that this expenditure item, amounting to some $ 1 500 000 at 30 September, reflected accounting-wise for 1973 the situation already revealed by the 1972 Impact Survey Report.
139. The Council noted that the withdrawal from the Working Capital Fund of $ 900 000 for emergency operations in the Sahelian Zone sanctioned by it at its Sixtieth Session 1 had been reimbursed to the Fund in June 1973 upon receipt of adequate cash contributions to the FAO Sahelian Zone Trust Fund.
140. The Programme and Finance Committees had been informed that additional unbudgeted costs had to be met towards the end of 1973 due to further post adjustments and wage index increases, and that the Director-General expected to cover these expenditure without recourse to withdrawals from the Working Capital Fund, provided that neither the currency situation nor the cost of living level deteriorated further. The Council noted this situation.
141. The Council recalled, that at its Sixtieth Session, it had reviewed document CL 60/8 which had already been considered by the Twenty-Ninth Session of the Finance Committee (April 1973). The document summarized the provisions of the FAO Basic Texts and Conference decisions regarding the establishment of the FAO Scale of Contributions in past biennia, and also contained the text of three recent resolutions adopted by the UN General Assembly relating to the UN Scale of Assessments for 1974 and onwards. These Resolutions 3 were reproduced in Appendix J to the Report of the Sixtieth Council Session.
1 CL 60/REP, para. 107.
2 CL 61/3, CL 61/3-Corr.1 and CL 61/PV/5.
3 Resolutions 2961 B, 2961 C and 2961 D (XXVII) adopted by the UN General Assembly on 13 December 1972, appear in that respective order in CL 60/REP, Appendix J.
142. The Council recalled that because of the many unknowns existing at the time of the Finance Committee's Twenty-Ninth Session the Committee had deferred making any recommendations to the Sixtieth Session of the Council on the Scale of Contributions to be adopted for 1974–75. The Committee had decided instead to return to this question at its Thirtieth Session by which time further information, including the Report of the UN Committee on Contributions, might be available.
143. With regard to the basis of the FAO Scale, the Council, in considering the Report of the Thirtieth Session of the Finance Committee 1, recalled that the Eighth Session of the Conference (1955) had considered that
“the United Nations Committee on Contributions is the most qualified body for assessing Member Governments' ability to pay as well as all the other factors entering in the computation of an equitable scale of contributions.”
and that, by Resolution 42/55, the Eighth Session of the Conference had also decided that the FAO Scales of Contributions would, in future, be derived directly from the Scale of Assessment as in force during the calendar year of the UN Conference Session, and would be applicable to the two following fiscal years.
144. Some members proposed that it would be more appropriate for the Organization to develop its own Scale of Contributions bearing in mind the situation of the developing countries and the special role FAO had to play with regard to them, rather than basing its Scale on that of the United Nations. This procedure it was suggested would be compatible with the objectives set out in the Preamble to the Constitution of the Organization.
145. The Council, however, agreed that the FAO Scale of Contributions should continue to be derived from the UN Scale of Assessments. It recognized that the UN Scales, as recommended by the Committee on Contributions and as adopted by the General Assembly, took into account the wishes of Member Governments concerning the various problems and difficulties involved in the computation of equitable Scales and that, as such, the UN Scale represented the most suitable basis for determining FAO Scales of Contributions. This method of establishing the FAO Scale of Contributions was also consonant with past recommendations of the UN General Assembly and ECOSOC that the specialized agencies bring their Scales into harmony with the United Nations Scale.
146. In view of the foregoing the Council took note of the possible FAO Scale of Contributions for 1974–75 which had been derived from the UN Scale of Assessments in force in 1973 and which was attached as Appendix P to the Report of the Thirtieth Session of the Finance Committee 2.
147. The Council however recalled that the Conference in adopting Scales for the 1956–57, 1958–59 and 1962–63 biennia had, because of substantial changes in the membership of the United Nations, decided to base those Scales on the UN Scale of Assessments for the calendar years following that of the Conference Session.
148. The Council, recognizing that the proposed UN Scale of Assessments for 1974–76 reflected not only substantial changes in membership in that Organization but also important modifications arising from the implementation of the three General Assembly Resolutions referred to in para 141 above, concurred with the Finance Committee that in the circumstances, it would be appropriate to base the FAO Scale of Contributions for 1974–75 on the UN Scale for 1974–76.
1 CL 61/3 paras. 3.48 – 3.59 and Appendices P and Q.
2 CL 61/3.
149. As to the basis of preparing the United Nations Scale itself, the Council noted the summary contained in para. 11 of Appendix P to the Report of the Thirtieth Session of the Finance Committee 1.
150. It further noted from para. 8 of Appendix Q to the same Report, that the UN Committee on Contributions in preparing the proposed UN Scale of Assessments for 1974–76 had changed “the elements of the low per capita income allowance formula so as to adjust it to the changing world economic conditions” as requested in UN General Assembly Resolution 2961 C (XXVII) referred to in para. 141 above.
151. The Council then considered the questions of principle arising from General Assembly Resolutions 2961 B and D (XXVII), also referred to in para. 141 above, namely:
whether, in principle, the maximum rate of contribution should be reduced to 25 percent as was to be the case in the United Nations as a consequence of UN General Assembly Resolution 2961 B (XXVII) of 13 December 1972;
whether it would be appropriate that the minimum rate of assessment in FAO, for 1974 and onwards, be reduced from 0.04 percent to 0.02 percent as was to be the case in the United Nations as a consequence of UN General Assembly Resolution 2961 D (XXVII) of 13 December 1972.
152. The Council concurred with the following recommendations of the Thirtieth Session of the Finance Committee with regard to these questions of principle:
that, as a matter of principle, the maximum contribution of any one Member Nation shall not exceed 25 percent of the total. On no account however should the percentage contributions of present Member Nations be increased over their present rates of assessment as a consequence of reducing the rate of assessment of the maximum contributor.
that new assessments appearing in the FAO Scale for 1974–75 and future biennia, (over and above those members assessed in the 1972–73 Scale of Contributions as adopted by the Sixteenth Session of the Conference) be utilized to the extent necessary to reduce to 25 percent the percentage contribution of the Member Nation paying the maximum contribution.
that the minimum rate of assessment of Member Nations in the FAO Scale of Contributions should henceforth be 0.02 percent compared to the present 0.04 percent. As heretofore the coefficient to allow for differences in membership between the UN and FAO should be applied to all rates of assessment other than the minimum and maximum rates.
153. The Council then examined the Scale of Contributions for 1974–75 recommended by the Thirtieth Session of the Finance Committee which reflected the principles recommended above. This Scale is based on the UN Scale of Assessments proposed by the UN Committee on Contributions for 1974–76.
154. The Council noted that the rate of assessment of the maximum contributor was reduced to 25 percent in application of Recommendations (a) and (b) contained in para. 152 above. This reduction was achieved without consequential increases in the present rate of assessment of other Member Nations.
155. It further noted that all Members now assessed at the present minimum rate of 0.04 percent would be assessed at 0.02 percent in the new FAO Scale as a consequence of Recommendation (c) in para. 152 above.
1 CL 61/3
156. In conclusion the Council proposed that the Conference adopt for 1974–75 the Scale of Contributions set out in Appendix H to this Report which had been derived directly from the proposed UN Scale of Assessments for 1974–76, subject to any adjustments that might arise from the admission of new Members at the Seventeenth Session of the Conference and such adjustments as may be required should the Twenty-Eighth Session of the UN General Assembly amend the Scale proposed by the UN Committee on Contributions.
157. The Council accordingly recommended the following draft resolution for adoption by the Conference:
DRAFT RESOLUTION FOR THE CONFERENCE
Scale of Contributions 1974–75
Having considered the Report of the Sixty-First Session of the Council,
Decides to adopt for use in 1974–75 the Scale of Contributions set out in Appendix … which is derived directly from the United Nations Scale of Assessments for 1974–76.
158. The Council noted the extent of support of field programmes by the Regular Programme of some $ 6 million in 1972 and the Finance Committee's concern that criteria to determine how such support should be financed were not clear. It was further noted that the Finance Committee was also concerned about the accuracy of the data used to estimate the cost of support, but recognized that the system was being progressively improved and could perhaps be considered sufficiently informative for the purposes required, if regarded with caution.
159. The Council considered that the various field programmes - UNDP, Trust Funds, WFP, and UNEP - and their methods of financing agency overheads could be treated differently and should be analysed separately. Headquarters work in connection with Trust Funds and UNEP projects was closely related to the Regular Programme.
160. The Council recognized that this situation, coupled with the current and expected difficulties with respect to project delivery, made it very difficult for the Organization to project and budget for future expenditures and therefore recommended that specific criteria concerning what should be reimbursed should be developed, that the pre-project delivery activities should be analysed, and that the Programme and Finance Committees should continue to review the situation.
161. The Council reviewed the above Accounts together with the External Auditor's Report on the Regular Programme Accounts for 1972. The Council noted the comments made by the External Auditor concerning the introduction of programme budgeting and the related issues of the revised form of the budget, the control over commitments and the adaptation of the general accounting system. The Council also noted with concern the comments of the External Auditor concerning the examination of field and suspense accounts. The Council noted furthermore the External Auditor's comments in respect of the relaxations in the conditions of entitlement to allowances arising from non-resident status and urged that this matter be placed on the agenda of the International Civil Service Commission as a priority item for advice and decision as soon as the UN General Assembly had established the Commission. The Council stressed that this was not merely a financial matter and attached importance to the principle of a common system within the UN family.
1 C 73/8.
2 C 73/9.
162. The Council forwarded these Accounts and its Report thereon, together with those it had reviewed at its Fifty-Ninth Session 1 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
Having considered the reports of the Fifty-Ninth and Sixty-First Sessions of the Council,
Having examined the following audited accounts and the External Auditor's Reports thereon:
|Regular Programme 1970–71||C 73/5|
|United Nations Development Programme 1971 and 1972||C 73/6; C 73/8|
|World Food Programme 1971 and 1972||C 73/7; C 73/9,|
Adopts the above audited accounts.
163. The Council noted the views of the Finance Committee on the losses incurred as a result of inadequate arrangements for reviewing field accounts and supported their recommendation that urgent steps should be taken to provide effective financial machinery. The Council also noted that the problem of effective accounting controls was not limited to the field accounts, and that all aspects of the work of the Financial Services Division were suffering. They noted that the Director-General's proposals for temporary assistance in 1974 contained in the supplementary Programme of Work and Budget amounted to only partial restoration of cuts made in the Division's staffing during 1972–73. While not going into the details of the proposed strengthening, the Council recognized that some strengthening was essential.
164. The Finance Committee had examined a comparison of the application of the Lapse Factor in the UN, UNDP and the major UN Agencies. The Lapse Factor is the reduction made in budgetary estimates for Personal Services to take into consideration the effect of delayed recruitment, turnover and separations. The Committee felt that this analysis would also be of interest to the Council and attached the document as Appendix M to the Report of its Thirtieth Session. The Council noted the information in the document.
1 CL 59/REP paras. 299–303.
165. The Council was informed that the owners of Building F had accepted FAO's proposal to extend the rental contract under existing terms and conditions until 31 December 1976 and that rental costs had been included in the 1974/75 budgetary estimates of the Regular Programme and Agency Overhead Funds. The Council was also informed that the Italian Government would, within the framework of the Headquarters Agreement, assume financial responsibility for some necessary modifications in Building D. Discussions were continuing between FAO and the appropriate authorities of the Italian Government with a view to reaching agreement on these modifications.
166. The Council recalled that at the time of its last Session a theoretical assessment rate for Bangladesh, which had applied for membership in the Organization, had not yet been established by the UN Committee on Contributions. Based on a UN assessment rate of 0.15 percent subsequently supplied by the UN Committee on Contributions, the assessment rate for Bangladesh in FAO for 1973 was 0.19 percent, due to application of the FAO coefficient to allow for differences in membership between FAO and the UN. As a consequence the contribution for the last quarter of 1973 for Bangladesh would be $18 800 and the advance due by it to the Working Capital Fund would be $8 550.
167. The Council was informed that application for membership in the Organization had also been received from Mongolia. The Committee noted that as the assessment rate for Mongolia in the United Nations was 0.04 percent, the same minimum rate would apply in FAO for 1973. The Council further noted that the contribution from Mongolia for the last quarter of 1973 would thus be $4 000 in accordance with established principles and practice. The advance due by it to the Working Capital Fund would amount to $1 800.
168. The Council endorsed the Commission's budget for 1974–75 in accordance with Regulation 3.5 of the Commission's Financial Regulations.
169. The Council noted that the Director-General had decided to implement the Staff Evaluation System throughout Headquarters following the completion of a trial run in two divisions. It took note that a programme of training for supervisors up to, and including division directors to involve them in the System was now under way and that subsequently they would assist in the training of their subordinate staff members. The Council noted that the Director-General would submit a further report to the Autumn 1974 session of the Finance Committee.
170. The Council was informed that the elections to the Staff Council, which had been deferred since January 1973 had been held on 30 October 1973, according to the formula endorsed by the Council at its Sixtieth Session 2, which had been considered to be “equitable” in the sense of the Staff Regulations and, in those circumstances, the most practical solution. It was also informed that, as a result of decisions taken at assemblies of the local and non-local staff, the number of voters from these categories had been low. A further election would be held in January 1974 to replace members whose terms would be expiring at that time.
171. The Council was also informed that, in the Referendum held on 20 September 1973 under Article 10 of the Statutes of the Staff Organization, the proposal for the establishment of three semi-autonomous associations with a central Staff Council for matters of common interest had not been adopted.
1 CL 61/3, CL 61/3-Corr.1, CL 61/4, CL 61/4-Corr.1 and CL 61/PV/9.
2 CL 60/REP, para. 295.
172. The Council considered the Reports of the Finance Committee and the CCLM concerning the progress made towards the establishment of an International Civil Service Commission (ICSC). It recommended that the Conference approve the changes, as proposed by the CCLM, which would be required in the General Rules of the Organization and the Staff Regulations should the Organization accept the Statute of the ICSC.
173. The Council agreed that acceptance of the Statute of the ICSC would be fully consistent with the policy enunciated in Article XI of the Agreement between FAO and the UN. However, it noted that because of the timing of the Sessions of the FAO Conference and of the UN General Assembly, it was doubtful whether the General Assembly would have considered the Statute before the end of the FAO Conference. The Council therefore recommended that the Conference authorize the Director-General to effect FAO's acceptance of the Statute in accordance with Article I(c) thereof, provided that the draft statute was approved by the UN General Assembly without, in the Director-General's opinion, any important substantive change.
174. The Council accordingly recommended the following draft resolution, proposed by the CCLM, for adoption by the Conference:
DRAFT RESOLUTION FOR THE CONFERENCE
Statute of the International Civil Service Commission
Noting Article XI of the Agreement between the United Nations and FAO which provides that the two organizations recognize that the eventual development of a single unified international civil service is desirable and agree to cooperate to the fullest extent possible in achieving this end;
Considering that the establishment of an International Civil Service Commission would promote the formulation and application of common personnel standards, methods and arrangements among organizations forming part of the United Nations system, and thus contribute to the implementation of the objectives set forth in Article XI of the Agreement between the United Nations and FAO;
Having examined the draft Statute for the International Civil Service Commission submitted to it in document C 73/....;
Noting that the draft Statute of the International Civil Service Commission has not yet been approved by the General Assembly of the United Nations;
Authorizes the Director-General to accept on behalf of FAO the Statute of the International Civil Service Commission, the text of which is reproduced in Appendix ...... as soon as it has been approved by the General Assembly of the United Nations, it being understood that, if the General Assembly of the United Nations introduces amendments to the text which the Director-General considers to be of an important substantive character, he shall refer the matter to the Council for a decision as to whether FAO should accept the Statute of the Commission;
Considering that acceptance of the Statute of the International Civil Service Commission would entail certain amendments to the General Rules of the Organization and the Staff Regulations in order to take into account the functions to be entrusted to that body;
Decides that, as from the date on which FAO will have accepted the Statute of the International Civil Service Commission, the General Rules of the Organization and the Staff Regulations shall be amended as follows:
|“Rule XXIV-3(j)||consider and approve recommendations of the Finance Committee or the International Civil Service Commission regarding the scale of salaries and the conditions of employment of the staff and recommendations of the Finance Committee on the general structure of the administrative and technical services of the Organization.”|
Add the following new sub-paragraph;
|“Rule XXIV-3(k)||consider any observations of the Finance Committee on decisions taken by the International Civil Service Commission in accordance with its Statute.”|
(The existing sub-paragraphs 3(k) to 3(m) become 3(l) to 3(n)
|“Rule XXVII-7(r)||to consider proposals of the Director-General and recomendations of the International Civil Service Commission on the scale of salaries and conditions of employment of the staff and proposals of the Director-General on the general structure of the administrative and technical services of the Organization.”|
Add the following new sub-paragraph:
|“Rule XXVII-7(s)||to consider reports by the Director-General on decisions taken by the International Civil Service Commission in accordance with its Statute, and to submit any observation thereon to the Council.”|
(The existing sub-paragraphs 7(s) to 7(u) become 7(t) to 7(v))
|“Rule XXXVIII - 2||The Director-General shall submit proposals to the Finance Committee on the scale of salaries and conditions of recruitment and service of the staff and shall report to the Finance Committee and the Council any decisions or recommendations of the International Civil Service Commission relating to such matters. He shall submit proposals to the Finance Committee on the general structure of the administrative and technical services of the Organization …”|
Add the following words at the end of the present text:
|“Rule XXXVIII - 3||The Director-General shall have authority to promulgate Staff Regulations to give effect to decisions of the International Civil Service Commission. He shall report the promulgation of such Staff Regulations to the Council.”|
Add the following new Staff Regulation:
“Staff Regulation 301.122
The application of, and all amendments to, these Staff Regulations and any Rules issued thereunder, shall be in conformity with the relevant decisions of the International Civil Service Commission. As provided in Rule XXXVIII of the General Rules of the Organization, the Director-General shall have authority to amend the Staff Regulations as may be required to give effect to such decisions.”
175. The Council recalled the decision of its Sixtieth Session that a salary survey on prevailing conditions of employment in Rome should be conducted as soon as possible and that until such time as a decision had been taken on the basis of this survey future wage index increases would be paid at the rate of 3 percent rather than at the 5 percent rate in the present system. It further recalled that an Ad Hoc Panel with experience in personnel and wage administration would be appointed to conduct the survey. It noted that the Panel had now been appointed, its members being Pascal Frochaux (Switzerland), Jules Milliez (France) and Bruce Turner (New Zealand). It further noted that the Panel had met from 15 to 19 October 1973, had selected the firm Hay Italiana to conduct the salary survey, had largely agreed with the Director-General and staff representatives on a list of fifteen firms to be surveyed, and had identified the bench-mark jobs in FAO which would be used for comparison with similar jobs in outside firms.
176. The following time schedule had been established for the survey:
Job comparison and collection of data to be completed by Hay Italiana not later than 21 January 1974;
Second Meeting of Panel to commence 21 January 1974;
Analysis of data by Hay Italiana to ensure comparability to be completed not later than 18 February 1974;
Third Meeting of Panel to commence 18 February 1974 to prepare recommendations;
Panel recommendations to be submitted to Director-General at beginning of March 1974.
177. The Council, noting that its 1974 session would probably not take place until November, authorized the Finance Committee to take decisions on the proposed new salary schedule, and on any retroactive differential payments which might be due, and requested the Committee to report on the matter to that Council session.
178. The Council was informed that the Programme of Work and Budget had been based on estimated movements in the salaries index on the presently existing basis, since it was not possible to forecast the outcome of the survey.
179. The Council recalled that at previous sessions it had requested a study of criteria for determining posts considered suitable for fixed-term and permanent appointments. It noted that the Thirtieth Session of the Finance Committee, after learning that 75 percent of the staff held permanent appointments, which was a higher proportion than in other organizations, had accepted the Director-General's suggestion that a study be undertaken of the guidelines needed to provide a proper mix of permanent and fixed-term appointments, it being understood that in their application the guidelines might lead to criteria suitable for specifying the posts in which fixed-term and permanent appointments were appropriate. Meanwhile the Council noted that the Director-General had no intention of making exceptions to his policy of granting only fixed-term appointments and extensions in this biennium, and that in the next biennium he would consider granting a permanent appointment only in an exceptional case when it was manifestly in the best interests of the Organization to do so. In this connection the Council believed it was important that such decisions should be based on clear criteria and was informed that these were in course of preparation.
180. The Council also recalled that at its Sixtieth Session it had noted a decline in the number of staff in the lower grades and a simultaneous increase in the number of senior posts, but had welcomed the Director-General's assurance that he would continue to keep in mind the need for a balanced grade structure. It now noted with approval that the Thirtieth Session of the Finance Committee had requested the Director-General to report at its 1974 spring session on the background which had led to the present grade structure.
181. The Council stressed the importance of achieving a satisfactory balance of appointments and an appropriate grade structure as soon as possible and requested to be kept informed of progress toward these goals.
182. The Council noted the establishment within the Regional Office for Africa of a P-5 Special Adviser to the Permanent Inter-State Committee for the Sahelian Zone, with duty station at Ouagadougou, Upper Volta, to be charged to the Regular Programme for approximately one year. The Council endorsed the Finance Committee recommendation that the cost of the post be transferred to the Sahelian Trust Fund as soon as possible.
183. The Council noted that General Service salaries for Rome were increased by 5 percent on 1 May 1973 after a rise of 5 percent on the FAO Salary Index for Italy, and that two salary increases had fallen due in August and September at the rate of 3 percent each for every 5 percent rise in the Salary Index, in accordance with the decision of the Council at its Sixtieth Session.
184. The Council also noted that the Post Adjustment classification for Rome, which had been class 7 for the period March-August 1973, had reached class 9 as of September 1973, when the operating rate of the lira was changed from 590 to 563 lire to the US dollar.
185. The Council further noted that a proposal would be placed before the UN General Assembly for the incorporation of five classes of Post Adjustment into base salaries for the Professional, Director and Assistant Director-General categories, effective 1 January 1974. The incorporation of 5 Post Adjustments was not an addition to net take home pay, but conversion of a non-pensionable element in pay to pensionable. Since the decision of the UN General Assembly might not be known until after the FAO Council has concluded its Sixty-First Session, the Council agreed that FAO follow the decision of the UN General Assembly should it approve the incorporation of Post Adjustment classes into the base salaries.
186. As consequence of this salary adjustment, and in line with action that would be taken by other UN Agencies, the Council agreed to similarly adjust the salary of the Deputy Director-General (and the Executive Director, WFP) applying the CCAQ formula, with the same effective date as for Professional, Director and Assistant Director-General categories. The incorporation of five classes would result in adding to the Deputy Director-General's present net salary of $ 28 850, the sum of $ 5 700, which was now part of the Post Adjustment, amounting to a new net salary of $34 550. The gross salary would be increased from $44 500 to $55 900 and the Post Adjustment for Class 1, dependency rate from $1 140 to $ 1 383.
187. The Council further noted that similar action with regard to the remuneration of the Director-General would result in adding to the present net salary of $34 600, the sum of $6 900 which was now part of the Post Adjustment, amounting to a new net salary of $41 500. The gross salary would be increased from $56 000 to $ 69 800 and the Post Adjustment for Class 1 dependency rate from $1 380 to $ 1 653. The Council accordingly recommended the following draft resolution for adoption by the Conference:
DRAFT RESOLUTION FOR THE CONFERENCE
Salary of the Director-General
Having noted that a proposal was being placed before the General Assembly of the United Nations to incorphorate five classes of Post Adjustment into the salaries of the Professional, Director and Assistant Director-General categories on 1 January 1974, that the FAO Council had decided to adjust those salaries and the salary of the Deputy Director-General accordingly should the General Assembly agree to the proposal, and that the FAO Conference would not meet in regular Session before the end of 1975,
Authorizes that the salary of the Director-General be adjusted in line with those in the Professional, Director and Assistant Director-General categories by applying the CCAQ standard formula and with the same effective date as decided by the UN General Assembly.
188. The Council noted the efforts of the Director-General through both selective recruitment and the Language Training Programme to increase the number of FAO staff members at all levels proficient in more than one official language of the Organization. It considered, however, that insofar as professional officers were concerned, there were also important matters of technical qualifications and balanced geographic representation to bear in mind. It was pointed out that the nationals of some countries already were handicapped by having to acquire one foreign language, which was not their own, and that it would be unreasonable to expect them to acquire two before they could be employed by FAO.