AIDCP budget. Xx. Xxxx Xxx-Wade, of the Secretariat, presented Document MOP-27-06, highlighting the need for an increase in vessel assessments of US$ 2.66 per cubic meter (m3) of well volume, necessary to balance the AIDCP budget in 2014 while still providing the planned level of coverage. It was emphasized that the extraordinary additional assessment of US$ 1.00/m3 agreed in 2012 to defray the accumulated deficit of the IATTC program did not achieve its aim because, at the request of the national programs, it was divid- ed equally among the IATTC program and the national programs. The Parties discussed the budget, the observer program and the projected deficit at length. The matters discussed included the following:
1. The European Union considered that the information provided was not sound enough to take a deci- sion, and suggested that an audit of expenditures might be appropriate in order to dispel doubts re- xxxxxxx both the expenditures and the budget scenarios presented. The European Union was reminded that all expenditures are audited annually, and the corresponding report is delivered to the Parties. The EU clarified that it was not a financial audit of incurred expenses it was demanding, but an in-depth assessment of the efficiency of the organization, of costs and of possible savings.
2. Asked whether staff salaries had increased, the Secretariat responded that base salaries remained fro- zen, and that the only increases were a reflection of the increased cost of insurance.
3. Some Parties again proposed that the IATTC should contribute more than 30% of the AIDCP budget, since the work of the IATTC benefits in great measure from the services of the observer program. They pointed out that only about half the information collected by the observers is for AIDCP purposes, the rest is for IATTC research and management programs..
4. Some Parties stressed the importance of increasing observer salaries, since it is currently difficult to recruit observers in Ecuador and Panama due to the low level of the salaries. It was proposed that the national programs should hold a meeting to consider a possible standardization of salaries.
5. Some Parties proposed that the level of required observer coverage be reduced from 100% in order to reduce costs.
6. Some Parties also proposed that modern technology, such as video cameras, could also be used to do part of the observers’ work and therefore save costs. The European Union asked the Secretariat to in- vestigate this possibi...
AIDCP budget. Xx. Xxxx Xxx, of the Secretariat , presented Document AIDCP-42-01 AIDCP budget abstract. She reported on the result of the 2020 financial activity, reflecting a surplus of US$ 451,284, the projected budget for 2021 and the recommended budget for 2022. Additionally, this surplus was added to the 2019 surplus of US$ 2,144,071, for a total of US$ 2,595,355. US$207,269 were set aside for distribution to national programs, resulting in a surplus of US$2,388,086 as of 31 December. It was reported that, as of 31 July 2021, there were outstanding vessel assessments for US$ 616,723. These arrears include 1 vessel from Ecuador, 2 from Nicaragua, 1 from Panama, and 9 from Venezuela. Nicaragua, after requesting a correction in the table of vessels in arrears, pointed out that governments should be notified in advance when there are arrears so that payments can be settled before the meetings. Nicaragua also requested that, when there are payment arrangements between the Secretariat and the vessel owners, the respective governments' endorsement or agreement be notified and obtained. The Secretariat recognized that the governments are responsible for the payments to the AIDCP and would therefore ensure in the future that governments approve any possible payment arrangements that are established pragmatically with vessel owners. Venezuela reported that the vessels Albamar I and Tunapuy have had mechanical problems and have not been operating, so they have had trouble obtaining the resources to pay their financial contributions, but they were still required to make contributions to the program. The rest of the 7 vessels in arrears are in the process of paying. Ecuador reported that they are making arrangements for the outstanding payment of the vessel Xxxxxxx. The United States mentioned that In some cases the delays in payments were due to the fact that the vessels were listed as active in the Register even though they were not fishing, so it would make sense to either remove them from the Register. The Director stated that removing the vessel from the register when it is not operating so as not to increase its debts to the program may be one solution, but another is to classify it as inactive, since there is a considerable difference in payment if it is registered as active (US$ 14.95 per m3 of well volume) or inactive (US$ 1 per m3). Regarding the existing surplus, Colombia recalled that Resolution A-19-01 states that "the AIDCP allocate to the observer programs 10% of ...
AIDCP budget. Xx. Xxxx Xxx Wade, of the Secretariat, presented Document MOP-33-06 noting that this year the program had a surplus, and it is not necessary to increase vessel quotas. However, the current situation is extraordinary and unlikely to be repeated as overdue vessel payments for considerable amounts were received, so an increase might be needed in the near future. It was emphasized that is difficult to project future AIDCP budgetary needs and take into account the unpaid contributions. The Secretariat depends of the financial results of the previous year to forecast future needs, and the direct costs of observers on board can fluctuate depending on the number of trips made, the cost of travel, the availability of local observers, etc. Similarly, income can vary according to how much capacity is active in a given year, payment of outstanding balances of previous years, vessels paying surcharges for delay, and the full payment of all vessels contributions in a timely manner. Some delegations congratulated the Secretariat for the surplus reached this year, noting that reflects better management efforts. Others suggested that the surplus was due to the irregular circumstance of the activation and payment of assessments by vessels that were added to the register, but which utilized few services, and emphasized the importance of approving a budget amount and then adjusting the assessment rate accordingly. Guatemala highlighted the efforts of the owners to honor their outstanding contributions, especially on the case of Xxxxxxx vessel that made its outstanding payments despite it was reflagged. Several Parties highlighted the difficulties to plan the budget as a result of the changing nature of the fishery, the mobility of vessel in the regional register and payment arrears in some cases. The European Union noted that the Parties were approving to maintain an assessment rate and collect and spend the money that would result, and that what was missing was the approval of a budget amount based on projected needs. In response, the secretariat presented the expenses of the first months of 2016 along with a projection for costs for the remainder of the year. The United States and the EU supported further exploration of a mechanism to directly link the vessel assessment rates to the amount of the approved budget, which would help provide greater stability and predictability to the AIDCP budget process and alleviate the need for exhaustive reviews each year. Following a sugg...
AIDCP budget. Xx. Xxxx Xxx-Wade, of the Secretariat, presented Document MOP-30-INF B, which describes the way in which the vessel assessments are calculated and a mechanism for linking them to the amount of the budg- et approved by the Parties. She recalled that at the previous meeting of the Parties in July 2014, an in- crease in the vessel assessment from US$ 14.95 to US$ 17.81/m3 had been requested, in order to resolve the program’s current deficit. The Parties expressed interest in continuing to work with the scheme for linking vessel assessments to the AIDCP budget, and decided to postpone adjourning the meeting in order to consult in the margins about the amount of the assessments. The European Union reiterated that it would not accept increases if no progress was made on the assessment of the Secretariat’s performance, which was pending from the meet- ing in July. After an extensive discussion, only Ecuador was not able to join the consensus to increase the assessment rate to US$ 16.00/m3 as of 2015, so it remained at US$ 14.95.
AIDCP budget. The Secretariat noted that the funds available from the 2012 budget are almost exhausted, and the contri- butions received for 2013 would have to be used to continue operating the observer program for the rest of this year. The cumulative deficit since 2002 has reached a total of over US$ 700,000. Mexico noted that the practice of financing this year’s spending with the following year’s contributions is unsound. He reiterated that the IATTC should make a greater contribution to the AIDCP budget. After extensive discussions, it was agreed that all vessels, active and inactive, would make an exceptional contribution, for 2013 only, of US$ 1.00 per cubic meter (m3) of well volume, with the commitment by the Parties that at their meeting in 2013 the budget would be reengineered with the objective of limiting costs to the funds available. Colombia said it would not oppose the consensus on this decision, but that it approved it ad referendum. The one-time contribution of US$ 1/m3 must be paid by 1 December 2012 at the latest, together with the regular assessment for 2013.
AIDCP budget. Background 1
AIDCP budget. Xx. Xxxx Xxxxx, of the Secretariat, explained the problem with the recruitment and retention observers resulting from the low salaries they are paid. Current salaries range from US$ 28 to 32 per day at sea, while in the central and western Pacific the WCPFC1 pays US$ 65, and the observer program for carrier vessels US$ 185. With a view to resolving the problem, the Secretariat proposes that salaries be in- creased to US$ 48.00/day for new observers, and 55.00/day for more experienced observers, and intends to implement the increase regardless of whether the Parties decided to increase vessel assessments. Xx. Xxxxxx Xxxxxx, of the Secretariat, presented Document MOP-28-06, “Supplement to Document MOP-27-06, AIDCP budget”, noting the deficit of the AIDCP, which as of 31 December 2012 stood at US$ 456,647. If all vessel assessments were paid, with the extraordinary assessment of US$ 2 the deficit would be reduced to US$ 28,399. The planned increase in the observers salaries would increase the total costs of the program by about US$ 100,000 per year, so, in order to offset this additional cost, the Secre- tariat recommended that the current vessel assessments be increased by US$ 3.05, to US$ 18.00/m3. The European Union indicated that there was no readiness in the room to accept the increase in the as- sessments, due to the fact that the last increase agreed at the June meeting was understood to cover the remainder of 2013, that more information was necessary on a number of items, and that it was necessary to find a long-term solution to this recurrent problem instead of taking ad-hoc decisions each time. In this regard, the European Union proposed that the Secretariat prepare a comprehensive document that assesses each of the budget related questions (e.g., causes of the permanent deficit, observers salaries, national programs, delayed payment of assessments, etc) and put forward possible responses to find a permanent solution to solve the issue (e.g., increase in assessments with or without annual indexation, penalties for late payments of assessments, a proposal for a revision of the IATTC contribution to the AIDCP to be agreed by both organizations, etc), indicating their possible advantages and disadvantages, in order for a decision to be taken at the next meeting. The proposal was agreed. The European Union 1 Western and Central Pacific Fisheries Commission also looked forward to the AIDCP Secretariat’s institutional assessment agreed at the June meeting...
AIDCP budget. Xx. Xxxxx presented the salient information contained in Document MOP-16-05 regarding the AIDCP budget. This document presents the forecast expenditure and revenue for 2006 compared to that presented to the 15th Meeting of the Parties in June 2006. The 2005 Resolution on financing the AIDCP (A-05-01) raised the vessel assessment rate for 2006 from US$ 12.552 to US$ 14.184 per cubic meter of well volume; it also provided that the assessments of those vessels whose well volume had been verified should be based on that verified well volume rather than the estimated well volume, which was generally larger. An additional measure to balance the AIDCP budget was taken in the 2006 Resolution on financing the AIDCP (A-06-01) by immediately raising the rate from US$ 14.184 to US$ 14.95/m3. The information presented showed the predicted costs and revenues for 2006, and estimates updated through 31 August 2006. 2006 revenue is based on actual assessments paid by vessels covered by the AIDCP (over 363 t capacity) and small vessels, plus surcharges both paid and outstanding as of 31 August 2006. Xx. Xxxxx commented on the observation in the document that the current forecast projects a deficit of US$ 61,205 for 2006, with a total anticipated accumulated deficit at the end of 2006 of US$ 516,654. Xx. Xxxxx noted that the 15th Meeting of the Parties did not reach a decision on a recommendation by the Secretariat that the income from charges for small and inactive vessels and late payment fees remain with the Secretariat and no longer be included as part of the amount reimbursed to the national programs. In 2006, this would have resulted in retaining approximately US $50,000, thus converting the current year’s anticipated deficit into a surplus of about US$ 37,000. The meeting agreed that all fees for late payments and inactive vessels would be retained by the Secretariat, and that this policy would apply to those fees not yet paid for 2007, and would continue so long as there was a deficit in the program. This agreement was recorded in writing (Appendix 2); it also clarifies that vessels entering the fishery during the course of a year that did not fish in the Agreement Area during the previous year are not required to pay the surcharge of 10% of the assessment for late payment, regardless of their date of entry to the fishery.
AIDCP budget. Xx. Xxx of the Secretariat staff referred to Document MOP-39-01 AIDCP Budget, which had already been presented at the Bilbao meeting in July 2019, highlighting its most relevant parts. Nicaragua clarified that, with resolution A-19-01, the use of 10% of the surplus for national programs was approved, so that 10% of the surplus should be subtracted, leaving a surplus of US$1,865,421. It was pro- posed that a meeting of the national observer programs be held with the IATTC staff in order to define how the 10% of the surplus would be delivered to the national observer programs in accordance with resolution A-19-01. Venezuela asked that the information showing an outstanding assessment from the vessel Xxxxx Azul, which had already been paid, be corrected and that the vessel Las Aves be added to the list if it had an outstanding assessment. After it was recalled that, at the last meeting of the AIDCP held in Bilbao, it was noted that no increases in the budget or in the individual assessments would be approved and that the Secretariat should generate savings to increase the amount of payment to observers with the same budget as the previous year, the budget for 2020 was approved with the same amount as that for 2019 for US$ 3,314,674.
AIDCP budget. The Secretariat presented Document MOP-22-05 on the AIDCP budget, which again recommends a small increase in vessel fees to maintain a balanced budget, cover increases in costs for observer travel due to inflation, and continue to reduce the accumulated deficit. An increase of USD 1.55/m3 was recommend- ed, and it was noted that, if no increase in these fees were agreed, it is probable that it will be necessary to consider reducing or eliminating in the future services provided by the program. El Salvador asked whether the cost reduction previously proposed had been evaluated, given that the in- dustry would find it difficult to pay increases. The Secretariat stated that reductions have been made by avoiding salary increases for the staff and observers, and that also the costs of courses had been reduced, or else had been paid by the national programs. El Salvador noted that it could accept an increase in late fees to 20 percent. El Salvador mentioned the possibility of reducing the 100% observer coverage, which was supported by Mexico and the European Union (EU). The EU expressed difficulties in accepting increases in the con- tributions, and noted that the IATTC is almost alone in having 100% coverage; other organizations have alternative compliance schemes that could reduce the costs. Mexico added that it would not accept any increase in fees at this time. Colombia proposed reviewing the budget both within the IATTC and the AIDCP, which was supported by the EU. It was suggested that an analysis of the effect of reducing observer coverage should be done. However, the United States expressed disagreement with reducing the current level of coverage, commenting that the 100 percent coverage is considered in various international fora to be one of the strongest elements of the AIDCP and IATTC agreements, particularly in comparison with other agreements, and is widely praised. El Salvador pointed out that we would not be in this situation if the industry saw a real benefit in the markets as a result of the work carried out in the AIDCP. Panama added that the proposed reduction in the number of meetings would hinder the time for consider- ing possible infractions and have a negative effect on the overall response time associated with investiga- tions. Xx. Xxxxxxx stated that the Secretariat would work towards reducing the budget as much as possi- ble without jeopardizing the effectiveness of the AIDCP.
