Review of the 2007 budget, draft 2008 budget and forecast budget for 2009

This paper is presented for the Commission’s consideration and sets out the projected outcome of the budget for 2007, a draft of the 2008 budget and an indicative forecast for the 2009 budget. The presentation is in the format determined by the Commission at its 2002 Meeting.
The expenditure for 2007 is not expected to exceed budget and carries forward a surplus of A$194 000 to 2008. The surplus includes an unbudgeted, half-year New Member Contribution of A$53 312 in respect of the People’s Republic of China, which applied to become a member of the Commission in July 2007.
General Services Staff salary increases in 2007 amounted to 6.5%, but part of this is offset by an increase in the Staff Assessment Levy. Each year the amount of income received from the Staff Assessment Levy continues to decrease as a proportion of total income as the result of reductions in the Australian Taxation Rates.
With the C-VMS now a key CCAMLR activity, the Commission may wish to revisit the budgetary implications of implementing the C-VMS in that contributions will increase beyond zero real growth for this function only to the extent previously identified by the Commission in 2003 (CCAMLR-XXII, paragraph 3.36). From 2005 to 2007 the C-VMS was funded from cost substitution savings achieved as a result of allocating new and exploratory fisheries expenditure against the income received from new and exploratory fisheries application fees. The 2008 budget has been framed on the basis of this cost substitution continuing, without any increase to Members’ contributions arising from C-VMS expenditure.
Following the relocation of the Secretariat to new premises, the rent will continue to be paid by the Australian and Tasmanian Governments. Payments are made through the Commission’s accounts and reflected in the Annual Financial Statements. As this is cost-neutral to the Commission, the receipt and payments have been ignored in the preparation of the review of the 2007 Budget, the 2008 Draft Budget and the Forecast Budget for 2009.
Income from forfeited New and Exploratory Fisheries funds relating to the 2006/07 fishing season are expected to amount to A$130 000 (A$190 000 in 2006). Income from this source may vary widely from year to year.
Two new budgetary initiatives are included for 2008: a one-off CCAMLR-IWC joint Workshop to Review Input Data for Antarctic Marine Ecosystem Models to be held in Hobart in August 2008 at a cost of A$120 500, and Interpreter Services for SCIC at a cost of A$88 000 in 2008, and approximately A$ 66 000 for 2009.
There is no overall increase in the 2008 Budget anticipated in respect of the current tasks to be undertaken by the Secretariat. Members’ Contributions for existing Members are held to an increase of 0.45% over 2007, compared to the inflation rate in Australia of 2.1%. Members’ Contributions in excess of the rate of inflation is required only in respect of the new budgetary initiatives should they be approved by the Commission.