Addressing Member States in arrears James McLaren CIPM Secretary - PowerPoint PPT Presentation

Addressing Member States in arrears James McLaren CIPM Secretary 14 November 2018

Addressing Member States in arrears We are currently in a positive situation based on historical performance! We have two Member States (Pakistan and Tunisia) with one year of arrears (for 2017) amounting to approximately 1% of the 2017 dotation There are no outstanding contributions for prior years other than: – Venezuela which has arrears for 2012, 2013, 2014, 2015, 2016, 2017 and 2018 In 2012 a very small amount (1 848 euros) was paid - around 3% of the outstanding contribution for 2012 Almost seven years of arrears (around 558 000 euros) – Long term arrears due to extended periods of suspension (to be addressed under draft Resolution E) www.bipm.org 2

Exclusion of the Bolivarian Republic of Venezuela 3

Exclusion of Venezuela - procedure The many attempts by BIPM staff to resolve All procedural and diplomatic the situation have proven unfruitful aspects of Resolution 8 (2007) observed Decision CIPM/107-5 June 2018 … The CIPM noted that the Bolivarian Republic of Venezuela has not paid its contributions for six years. Pursuant to Resolution 8 adopted by the CGPM at its 23rd meeting (2007) it has been sent a formal notification inviting it to fulfil its financial obligations and reminding it of the procedure governing the recovery of arrears and exclusion. Th The CIPM decid ided to to recommend to to th the CGPM at at its ts 26 26th th meetin ting to to take a decision with ith regard to to th the exclu lusion on of of th the Boli olivarian an Republic ic of of Venezuela in in accordan ance with th Artic icle le 6 of of the he Regula latio ions annexed to to the he Metr tre Con onventi tion on. www.bipm.org 4

Proposed decision by the CGPM on the exclusion of Venezuela The CGPM notes the recommendation of the CIPM under Decision CIPM/107-05 of June 2018. The CGPM endorses this recommendation and decides that the Bolivarian Republic of Venezuela, which has persisted in its failure to fulfil its financial obligations, shall be excluded as a State Party to the Metre Convention with immediate effect. www.bipm.org 5

Introduction to Draft Resolution E: On financial arrears of Member States and the process of exclusion Barry Inglis CIPM President 14 November 2018

Exclusion issues – Metre Convention Recalling that ART. 6 paragraphs 6 to 8 (1921) of the Regulations annexed to the Metre Convention reads as follows: … If a State remains three years without paying its contribution, the said 6. contribution is distributed among the other States pro-rata to their own contributions. The supplementary sums thus paid by these States to make up the dotation of the Bureau are considered as advances made to the State in arrears, and are reimbursed to them in the event that it repays its arrears of contributions. The advantages and prerogatives conferred by accession to the Metre 7. Convention are suspended for those States in arrears by three years. After three more years, the State in arrears is excluded from the Convention and 8. the calculation of contributions is re-established in accordance with the provisions of Article 20 of the present Regulations. www.bipm.org 8

On the basis of Article 6 – ART. 6 (1921) Annexed Regulations How should exclusion work? Exclusion after 6 years of default, (no ‘decision’ required), calculation of contributions re- established Defaulting Member State 3 6 Year 1 Years: 1 – 2 - 3 Years: 4 – 5 – 6 contribution contribution Contribution “distributed” Contribution owed Default between to the BIPM begins Advantages Member States and Exclusion considered as advances, prerogatives reimbursed in the event of www.bipm.org suspended 9 repayment

Historical practice Defaulting Member State 3 6 1 X Years: 4 – 5 – 6 Years: 1 – 2 - 3 Years: 7 – 8 – xxxx contribution contribution contribution “Distributed” “Distributed” Owed the BIPM Default between between Member States begins Member States Advantages ‘ unjustified accumulation of arrears ’ and Excluded No Exclusion prerogatives Resolution 8 (2007) introduced suspended an exclusion procedure Resolution 8 (2007) partly addresses the historical situation www.bipm.org 10

Some elements of Resolution 8 (2007) have proven less than ideal formal notification inviting defaulting Member State to fulfil its financial obligations only initiated after 6 years of default! … opening a further period of negotiation introduces additional including the possibility to start discussions and procedural constraints conclude a rescheduling agreement with the CIPM requires a decision of the CGPM to exclude requires the CGPM to undertake an administrative task - based on a recommendation of the CIPM …which means a meeting of the CGPM www.bipm.org 12

Sur l les contributions arriérées des États M Membres et la On the financial arrears of Member States and the procédure d’exclusion process of exclusion Draft Resolution E E Projet d de résolution E La Conférence générale des poids et mesures (CGPM), à sa 26 e réunion, The General Conference on Weights and Measures (CGPM), at its 26th meeting, rappelant recalling that l’article 6, alinéas 6 à 8 (1921), du Règlement annexé à la Convention du Mètre Article 6 paragraphs 6 to 8 (1921) of the Regulations annexed to the Metre selon lequel : Convention reads as follows: « 6. Si un État est demeuré trois années sans effectuer le versement de sa « 6. Si un État est demeuré trois années sans effectuer le versement de sa contribution, celle-ci est répartie entre les autres États, au prorata de leurs contribution, celle-ci est répartie entre les autres États, au prorata de leurs propres contributions. Les sommes supplémentaires, versées ainsi par les propres contributions. Les sommes supplémentaires, versées ainsi par les États pour parfaire le montant de la dotation du Bureau, sont considérées États pour parfaire le montant de la dotation du Bureau, sont considérées comme une avance faite à l’État retardataire, et leur sont remboursées si comme une avance faite à l’État retardataire, et leur sont remboursées si celui-ci vient à acquitter ses contributions arriérées. celui-ci vient à acquitter ses contributions arriérées. 7. Les avantages et prérogatives conférés par l’adhésion à la Convention du 7. Les avantages et prérogatives conférés par l’adhésion à la Convention du Mètre sont suspendus à l’égard des États déficitaires de trois années. Mètre sont suspendus à l’égard des États déficitaires de trois années. 8. Après trois nouvelles années, l’État déficitaire est exclu de la Convention, 8. Après trois nouvelles années, l’État déficitaire est exclu de la Convention, et le calcul des contributions est rétabli conformément aux dispositions de et le calcul des contributions est rétabli conformément aux dispositions de l’article 20 du présent Règlement. » l’article 20 du présent Règlement. » 1 la Résolution 8 adoptée par la CGPM à sa 23 e réunion (2007) sur les Resolution 8 adopted by the CGPM at its 23rd meeting (2007) on financial contributions arriérées des États Membres, qui établit une procédure arrears of Member States sets a procedure concerning States who fail to fulfil concernant les États qui ne respectent pas leurs obligations financières, their financial obligations, 1 English translation for easy reference of the authoritative French version: 6. If a State remains three years without paying its contribution, the said contribution is distributed among the other States pro-rata to their own contributions. The supplementary sums thus paid by these States to make up the dotation of the Bureau are considered as advances made to the State in arrears, and are reimbursed to them in the event that it repays its arrears of contributions. 7. The advantages and prerogatives conferred by accession to the Metre Convention are suspended for those States in arrears by three years. 8. After three more years, the State in arrears is excluded from the Convention and the calculation of contributions is re-established in accordance with the provisions of Article 20 of the present Regulations.