Recommendation for a Council Decision concerning the participation of the Community in the International Rubber Study Group
Date: 2002-05-06
Institutions: European Commission
Subjects: international organisation, legal status, natural rubber, synthetic rubber, the EU's international role

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 06.05.2002
COM(2002) 223 final

Recommendation for a

COUNCIL DECISION

concerning the participation of the Community
in the International Rubber Study Group

(presented by the Commission)

1.

2.

3.

4.

5.

6.

7.

8.

EXPLANATORY MEMORANDUM

The International Rubber Study Group (IRSG) was founded in 1944. It does not have
a renewable International Agreement and it is not a body under the aegis of the
United Nations, but its operations and staff are regulated in a manner similar to other
UNCTAD commodity organisations. The Study Group provides a forum for the
discussion of matters affecting the supply and demand for both synthetic and natural
rubber. It covers all aspects of the world rubber industry,
including marketing,
shipping, distribution, trade in raw materials and the manufacture and sale of rubber
products.

The IRSG’s objective is to provide a forum for the discussion of matters affecting the
world-wide rubber industry between governments and between governments and
industry. It collects, validates and publishes the authoritative statistics on the
production, consumption and trade in natural and synthetic rubber and on related
industries. It also carries out statistical, economic and techno-economic studies on
factors affecting the rubber industry. The Group may provide advice and issue
recommendations, but these are not binding on Member Governments.

IRSG members represent 69 % of the world’s production of synthetic rubber, 74 % of
natural rubber production and 56 % of the world’s consumption of all elastomers.
Moreover, the activities of the IRSG are perfectly compatible with national economic
policies on rubber, and members can take advantage of a wide range of services
provided by the IRSG.

After final liquidation of the International Natural Rubber Council (INRO) on 31
August 2001, future dialogue between natural rubber exporting and importing
countries would best be achieved by strengthening the long existing IRSG, being the
forum for the discussion of matters affecting the supply and demand for both
synthetic and natural rubber.

Several EU Member States are member of the IRSG, namely: Belgium, France,
Germany, Italy, The Netherlands, Spain and the United Kingdom.

Membership is confined to Governments.

As the functions of the IRSG as described above cover issues related to trade and its
activities are therefore regulated by Article 133 of the EC Treaty, and as with the
entry into force of the WTO on 1 January 1995, the Community has become a party
to the GATT and a founder-member of the WTO itself, the Council has invited the
Commission to take the necessary steps to enable the European Community to join
the IRSG as a full member.

The attached Recommendation for a Council Decicion is designed to achieve this
aim.

2

Recommendation for a

COUNCIL DECISION

concerning the participation of the Community
in the International Rubber Study Group

(Text with EEA relevance)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular
Article 133 thereof;

Having regard to the proposal of the Commission;

Whereas:

(1)

(2)

(3)

(4)

The International Rubber Study Group (IRSG) was established in 1944 following the
termination of the International Rubber Regulation Scheme that had operated from
1934. Amendments to the Rules of Procedure were adopted by the Group at the
meetings of Heads of Delegations held during the thirty-sixth and thirty-seventh
Assemblies of Nations in Tokyo (March 1995) and Phuket (April 1996).

The IRSG is an Intergovernmental Organisation with the status of a recognised
international body, located in the United Kingdom, as formally established by a
Headquarters Agreement with the Government of the United Kingdom, signed on
14 February 1978, that defines the privileges and immunities enjoyed by the Group
and its Secretariat. The object of the Group is to:

“...provide a forum for the discussion of problems affecting the production and
consumption of, and trade in, natural and synthetic rubbers and to collect and
disseminate comprehensive statistical
information on the world rubber
industry.”

The Group is served by a Secretariat of which the Secretary-General, who is
responsible to the Group and the Executive Committee,
is the Executive head;
administratively the Secretary-General reports to the Executive Committee which
meets four to six times a year, comprising fourteen Member Governments elected at
the annual meeting. The Chairman of the Group is elected for two-year periods at
annual meetings and serves on the Executive Committee ex officio. The highest body
is the Heads of Delegations which meets at Annual Meetings or Special Meetings.

The Group’s activities provide a forum for the discussion of matters affecting the
world-wide rubber industry, collection, validating and publishing the authoritative
statistics on the production, consumption and trade in natural and synthetic rubber.
They are mainly financed by member Governments’ contributions. Of the approved
budget, 60 % shall be met by basic contributions as paid in equal amount by all
member Governments. The balance of 40 % shall be paid by member Governments in

3

proportion to their production or consumption (whichever is the larger) of new rubber
in the calendar year previous to the financial year in question.

(5)

(6)

(7)

future dialogue between natural

After final liquidation of the International Natural Rubber Council (INRO) on 31
rubber exporting and importing
August 2001,
countries would best be achieved by strengthening the long existing IRSG, being the
forum for the discussion of matters affecting the supply and demand for both synthetic
and natural rubber.

Several EU Member States are member of the IRSG, namely: Belgium, France,
Germany, Italy, The Netherlands, Spain and the United Kingdom.

The Council of the European Union on the basis of the recommendation of its
Working Party on Commodities has invited the Commission to take the necessary
steps to enable the European Community to join this Study Group as a full member.

HAS DECIDED AS FOLLOWS:

Article 1

The Constitution and the Rules of Procedure of the International Rubber Study Group are
hereby accepted by the European Community.

The text of the Constitution and the Rules of Procedure are annexed.

Article 2

The President of the Council is hereby authorised to designate the persons empowered to
lodge the procedure for joining the IRSG membership on behalf of the Community.

Done at Brussels,

For the Council
The President

4

Constitution and Rules of Procedure of the International Rubber Study Group

ANNEX I

Terms of Reference

C ON ST I T UT I ON

1.

2.

3.

4.

5.

6.

7.

8.

Membership of the International Rubber Study Group shall be open to countries
interested in the production or consumption of, or trade in, natural and synthetic
rubbers.

Members shall contribute on an agreed basis the income required for the activities of
the Group.

The headquarters of the Group shall be in London and the Group shall maintain there
a Secretariat for conducting its work, primarily for the collection and dissemination
of statistics.

The Group shall meet periodically at times and places convenient to members for the
purposes of reviewing the statistical position and of discussing common problems of
the rubber industry.

The Group shall make or commission such studies of the world rubber situation as it
sees fit, paying regard particularly to the provision of comprehensive information on
the supply and demand position and its probable development.

The Group shall consider measures designed to expand world consumption of
rubber.

The Group shall consider how best to deal with any special difficulties of concern to
members, and may submit reports and recommendations thereon.

Other governments and intergovernmental organisations which express an interest
may be informed of the studies made and of the results of discussions as thought fit.

Obligations of Members

9.

10.

11.

Members undertake in so far as possible to furnish the Secretariat with statistics
concerning the production and consumption of, and trade in, rubber for their
respective territories and with such other information as is pertinent to current
estimates and future trends.

Of the approved annual budget, 60 % shall be met by basic contributions as paid in
equal amount by all Member Governments.

The balance of 40 % of the approved budget shall be paid by Member Governments
in proportion to their production or consumption (whichever is the larger) of new
rubber in the calendar year previous to the financial year in question. Provided that if
the absence of the necessary statistics makes it impossible to assess a contribution
the Executive Committee shall determine by the best
according to this rule,

5

information available the contribution to be paid and shall invite the Government
concerned to agree to this assessment.

12.

New members joining the Group during the course of a financial year shall
contribute to the budget as follows:

i)

ii)

iii)

iv)

from 1st July to 30th September, the full basic contribution;

from 1st October to 31st December, three-quarters of the basic contribution;

from 1st January to 31st March, one-half of the basic contribution;

from 1st April to 30th June, one-quarter of the basic contribution.

13.

14.

All sums due from Member Governments shall be paid in their respective national
currencies if convertible into United Kingdom currency; otherwise in United
Kingdom currency.

Members with two years’ contributions unpaid shall, unless the Group otherwise
decides, cease to enjoy privileges of membership until arrears and contributions for
the current year have been met.

Organisation and Procedures

15.

16.

17.

18.

19.

20.

21.

22.

The Group shall meet at least once each calendar year and at such other times as the
Executive Committee may determine.

The Group shall meet
Committee may decide on the invitation of a Member Government.

in London or such other place as it or the Executive

The Member Governments constituting the Group shall each appoint one
representative who may be accompanied by advisers at any Group meeting.

If its representative is unable to be present at a meeting of the Group, any Member
Government may be represented by an alternate.

The presence of a simple majority of Group members including at least three natural
rubber producers and six consumers,
three synthetic rubber
producers, shall be necessary to constitute a quorum at any meeting of the Group.

including at

least

The officers of the Group shall comprise a Chairman, a Vice-Chairman and the
Secretary-General.

The Chairman and Vice-Chairman shall be elected by the Group and shall hold office
for two financial years of the Group; they shall be eligible for re-election. When in
any calendar year the Group's annual meeting takes place after the 30th June, the
current Chairman and Vice-Chairman shall continue to hold office until a new
Chairman and Vice-Chairman shall be elected at the next meeting of the Group.

The Group shall appoint the Secretary-General who shall be the executive head of
the Secretariat and shall be responsible to the Group and the Executive Committee
for its work.

6

23.

24.

25.

26.

The Group shall appoint an Executive Committee which shall exercise such powers,
for and on behalf of the Group, as the Group shall decide and delegate, and which is
empowered to act on urgent matters in a manner consistent with the objectives and
policies of the Group.

The Group may appoint such committees or advisory panels as may from time to
time be deemed necessary and shall determine their membership and functions.

The Group shall authorise the preparation and publishing of such studies of the world
rubber position and such other subjects as it sees fit.

An observer wishing to speak at a meeting of the Group shall inform the Chairman of
his wish to speak prior to the session and the Chairman may, at his discretion, invite
the observer to speak at an appropriate time. An observer may be invited by the
Chairman at a meeting of the Group to take part in the work of any committee.

27.

The Group may at any time amend or revise these Rules of Procedure

Finance Rules

28.

29.

The financial year shall run from the 1st July to the 30th June.

A banking account in the name of the Secretariat of the International Rubber Study
Group shall be maintained in London.

30.

The banking account shall be operated on cheques signed by:

i)

ii)

iii)

the Secretary-General or

in his absence by the Chairman or Vice-Chairman of the Group or of the
Executive Committee or

in their absence by any other substantive member of the Executive Committee.
Beyond a certain limit to be determined by the Executive Committee, the
cheques will require two signatures.

31.

32.

33.

34.

The accounts of the Secretariat shall be kept by the Secretary-General.

All monies received shall promptly be deposited in the Bank. An imprest account
shall be kept by the Secretary-General for petty cash payments and receipts to an
amount as decided by the Executive Committee.

Auditors shall be appointed by the Group.

The Secretary-General shall circulate to all Member Governments as soon as
possible after the end of the financial year an annual statement of accounts certified
by the Chairman or Vice-Chairman, the Secretary-General and the auditors.

7

35.

36.

37.

The Secretary-General shall be responsible for drawing up and submitting to the
Executive Committee not later than the 31st March each year a provisional budget for
the following financial year for approval by the Group. When in any calendar year
the Group's annual meeting takes place after the 30th June, the provisional budget
recommended for approval by the Executive Committee not later than the 31st March
shall be circulated to Member Governments for comments and the Executive
Committee shall be empowered to approve the budget for the ensuing year, taking
into account any comments received from Member Governments.

The Secretary-General shall be responsible for submitting to Member Governments
the approved budget and shall require payment of the total contribution due from
each government as set out in the said budget.

The travelling and subsistence expenses of members attending meetings of the Group
shall be borne by the respective Member Governments, and shall not be a charge on
the funds of the Group.

Executive Committee

38.

39.

40.

The Executive Committee shall consist of Member Governments who are elected at
the Group's annual meeting. The Chairman and Vice-Chairman of the Group shall be
members ex officio. All members of the Committee wishing to serve for a second or
subsequent year shall submit to re-election at the annual meeting.

The presence of a simple majority including two natural rubber producers and two
consumers (including at least one synthetic rubber producer) shall form a quorum.

The Chairman and the Vice-Chairman of the Committee shall be elected by the
members of the Committee at the meeting of the Committee immediately following
the annual meeting of the Group.

41.

The Committee shall be responsible for:

a)

b)

c)

d)

e)

reviewing progress on action outstanding between Group meetings and giving,
when necessary, further instructions thereon to the Secretary-General;

considering such other matters as may arise between meetings of the Group,
making such recommendations as may be appropriate (see paragraph 45
below), and, where necessary and urgent, taking such action as is consistent
with the objectives and policies of the Group;

exercising such supervision of the administrative and financial work of the
Secretariat as may be required;

recommending a budget for approval by the Group or, as by the provision of
paragraph 35 above, approving a budget for the ensuing year;

submitting to the Group's annual meeting a report on the activities since the
previous annual meeting of the Group;

f)

undertaking such other work for and on its behalf as the Group may decide.

8

42.

43.

44.

45.

The Committee shall meet at times to be decided by its members or as may be
convened by the Secretary-General and in any case within six months of the previous
annual Group meeting.

All Member Governments shall receive the agenda of meetings of the Committee in
advance and shall receive the Minutes of meetings when approved.

Any Member Government may, on request to the Chairman of the Committee, attend
any meeting of the Committee for a particular item or the whole meeting.

All recommendations of the Committee shall be circulated to Member Governments
of the Group by the Secretary-General before they are implemented, with sufficient
time for objections to be raised by any member if so desired.

Statistical Committee

46.

47.

The Statistical Committee shall consist of all members of the Group who wish to
serve on it, and it shall have the assistance of a Committee of Expert Rubber
Statisticians which shall be appointed annually by the Group on the recommendation
of the Statistical Committee.

The Committee shall elect its own Chairman who normally will also be Chairman of
the Committee of Expert Rubber Statisticians and who shall hold office for one
financial year and be eligible for re-election. When in any calendar year the Group's
annual meeting takes place after the 30th June, the current Chairman shall continue to
hold office until re-elected or a new Chairman is appointed at the next meeting of the
Group.

48.

The Committee shall be responsible for:

i)

ii)

reviewing and reporting on rubber supply/demand positions;

examining and reporting on any cognate subject referred to it by the Group.

49.

The Committee shall not issue press releases unless approved by the Group at a
meeting or at other times by the Executive Committee or by the Secretary-General.

The Secretary-General and the Secretariat

50.

51.

52.

The Secretary-General shall be the executive head of the Secretariat and responsible
to the Group for its work.

The detailed responsibilities of the Secretary-General on such matters as finance,
appointment of personnel, etc., shall be decided by the Executive Committee subject
to directive by the Group. In all such matters the Secretary-General is deemed to act
as an agent for all members of the Group.

The Secretariat shall carry out all its work impartially, shall not publish previously
unpublished material supplied by Member Governments without their prior approval,
and shall not initiate discussions on policy questions.

9

53.

The functions of the Secretariat are:

i)

ii)

to provide the Group with the best possible information on statistics and on
wider economic matters as these relate to rubber;

to provide a link between Member Governments on rubber matters between
meetings of the Group;

iii)

to make the necessary preparations for meetings of the Group;

iv)

v)

to maintain liaison with the other international organisations whose work is
relevant and of interest to the work of the Group;

to make such studies as the Group may direct in accordance with paragraphs 5
and 25.

10

R U L E S OF PR OCE D U RE

Amendments to the Rules of Procedure were adopted by the Group at the Meetings of Heads
of Delegations held during the 36th and 37th Assemblies of Nations in Tokyo and Phuket.
Rules 1 to 10 were adopted at the meeting on 1st and 2nd March, 1995 and became effective on
2nd March 1995. Rules 11 and 12 were adopted at the meeting on 15th and 16th April 1996,
and became effective on 16th April 1996.

Rule 1
Voting procedures

a)

b)

c)

d)

Decisions at all Group, Executive Committee, and Committee meetings shall,
whenever possible, be made by consensus without contrary votes, formal objections
or reservations of position. Chairmen of meetings shall at all times strive to obtain
consensus for all decisions, and where positions are reserved, sufficient time shall if
at all possible be allowed for compromise and consensus to be achieved.

If, in the opinion of the Chairman of the meeting there is no possibility of achieving
consensus on any matter, it shall be put to a vote.

Voting shall normally be conducted so as to maintain the maximum transparency in
decision-making, and shall at the sole discretion of the Chairman of the meeting be
by show of hands or by roll call. In exceptional circumstances the Chairman may,
with the approval of a simple majority of those present and voting, decide that a
secret ballot or a postal vote of the appropriate membership may be required.

Decisions by vote shall, subject to the provisions of (e) below, normally be made by
a simple majority of those present and voting, provided that a decision of the Group
shall require an affirmative vote from at least three natural rubber producers and
three rubber consumers,
including two synthetic rubber producers, and that a
decision of the Executive Committee shall require an affirmative vote from at least
two natural rubber producers and two consumers, including one synthetic rubber
producer.

e)

Decisions by vote concerning:

i)

ii)

approval or recommendation of the budget;

relief of obligations,
Governments,

suspension of

rights or

exclusion of Member

shall require a two-thirds majority of those present and voting provided that an
affirmative vote of a simple majority of natural rubber producers and of consumers
counted separately shall be required.

11

f)

Decisions by vote concerning

i)

ii)

revision or termination of the Headquarters Agreement;

amendment of the Constitution or the Rules of Procedure;

iii)

location of Headquarters,

shall be determined only by consensus.

g)

h)

i)

The Secretary-General may, with the consent of the Chairman of the Executive
Committee, submit a proposal to a postal vote of the Executive Committee when an
urgent decision is required. Members shall have the option of approval, disapproval
or reference to the next meeting of the Executive Committee. Approval shall require
affirmative votes as provided for in (d) and (e) above, except that if two natural
rubber producers and two consumers (including one synthetic rubber producer) so
require,
the decision shall be deferred to the next meeting of the Executive
Committee.

The Chairman of the Executive Committee may, with the approval of a simple
majority of the Executive Committee, refer any proposal to a postal vote of Members
of the Group. Members of the Group shall have the option of approval, disapproval
or reference to an Annual or Special Meeting of the Group. Approval shall require
affirmative votes as provided for in (d) and (e) above, provided that if three natural
rubber producers and three consumers (including two synthetic rubber producers) so
require the decision shall be referred to an Annual or Special Group Meeting.

The time period allowed for postal voting shall normally be thirty days from the date
of posting, but in cases of extreme urgency a shorter period of not less than seven
days may be approved by the Chairman of the Executive Committee.

Rule 2
Powers of the Executive Committee

Notwithstanding the powers conferred on it by Clauses 35 and 41 of the Constitution, the
Executive Committee shall not be empowered to make decisions upon:

a)

b)

c)

d)

e)

f)

g)

relief of Member Governments from obligations of membership;

suspension of rights of Member Government;

exclusion of Member Government;

renegotiation, extension or termination of the Headquarters Agreement;

amendment of the Constitution or the Rules of Procedure;

location of Headquarter;

appointment of the Secretary-Genera;

but may discuss all such matters with a view to making recommendations to Group Meetings.

12

a)

b)

c)

d)

e)

f)

g)

Rule 3
Membership contributions

Membership contributions shall be due on 1st July each year.

If a Member Government has not paid its contribution in full by 1st December, the
Secretary-General shall make an urgent request for immediate payment.

If payment is not made in full by 1st February, the Secretary-General shall report the
arrears
in the particular
circumstances it decides otherwise, recommend to the Group the suspension of all
voting rights of the Member Government.

to the Executive Committee which shall, unless

If payment is not made in full by 1st April, the Executive Committee shall, unless in
the particular circumstances it decides otherwise, recommend to the Group the
suspension of all Secretariat services to the Member Government.

The recommendations required under (c) and (d) above may be submitted to the
Group by postal ballot as provided for under Rule 1(h) above.

If a Member Government has not paid its contribution in full by the end of the
financial year the value of the payment due shall be maintained by increasing it by
the annual rate of inflation in the Headquarters country used in the calculation of the
budget for each year for which the payment remains in arrears. The revised payment
shall be calculated and notified to the Member Government by the Secretary-General
at the end of each quarter of the financial year provided that this provision shall not
apply to contributions due before 30 June 1995.

No decision or action taken under the provisions of this clause shall prejudice the
rights of the Member Government concerned to be represented at any Group Meeting
at which the conditions of its membership are to be discussed, or to make
representations to such meetings, nor shall such decisions or actions prevent or delay
the consideration by the Group of suspension of the Member Government as
provided under Clause 14 of the Constitution.

Rule 4
Re-admission to the Group

Any request for re-admission to the Group by a Government suspended under Clause 14 of
the Constitution with outstanding financial obligations shall be considered by the Executive
Committee with a view to reaching an agreement for the discharge of the financial
obligations. Any such agreement shall be submitted to a Group Meeting for approval.

Rule 5
Withdrawal from the Group

Notice of withdrawal by a Member Government shall be delivered in writing to the Secretary-
General by 1st February to be effective on 30th June and Member Governments giving notice
after 1st February shall be liable for the Membership Contribution for the next ensuing
financial year, except where the decision to withdraw is consequent upon changes to the
Constitution or Rules of Procedure unacceptable to the Member Government, whereupon the
requirements for notice and financial liability shall be waived. Any such notice of withdrawal

13

shall be communicated by the Secretary-General to other Member Governments as soon as
possible after its receipt.

a)

b)

a)

b)

c)

a)

b)

c)

d)

Rule 6
Appointment and terms of reference of auditors

The appointment of auditors under Clause 33 of the Constitution shall be made on
the recommendation of the Secretary-General who shall, in consultation with the
the Executive Committee, be responsible for monitoring the
Chairman of
performance of the auditors and inviting, at least every four years, competitive
tenders from legally qualified auditing companies.

The terms of appointment of the auditors shall be determined annually by the
Executive Committee bearing in mind the need to review the efficiency of the
administration and management of the Secretariat at appropriate intervals.

Rule 7
Annual Assembly

The Secretary-General shall provide in the budget a sum sufficient to hold a Group
Meeting in London.

When the Group holds an Assembly at the invitation of a Member Government, the
in
host Government shall undertake to meet all costs borne by the Secretariat
connection with the Assembly in excess of the budgetary provision.

Where the expenses incurred by the Secretariat in connection with the Assembly are
less than the amount provided in the budget, the balance shall be credited to the
Operating Fund.

Rule 8
Economic Committee

The Group shall establish an Economic Committee which shall meet at every
Assembly and Group Meeting. It shall comprise all Members of the Group who wish
to serve on it, and shall have the assistance of an Industry Advisory Panel.

The Chairman of the Economic Committee, who shall be a named individual, shall
be elected by the Committee from among its members for a term of two years.

The function of the Committee shall be to agree, monitor and review the economic
and techno-economic items on the Secretariat Work Programme and to make
to the Group concerning the initiation, continuation and
recommendations
publication of papers prepared in the Work Programme.

In its consideration of the Work Programme the Economic Committee shall take
account of any views and recommendations made to it by the Industry Advisory
Panel.

14

a)

b)

c)

d)

e)

a)

b)

Rule 9
Industry Advisory Panel

The Economic Committee shall establish an Industry Advisory Panel to provide a
channel of communication with and input from all sides of the rubber sector,
including industry, commerce, academy, research and technology, concerning the
direction and content of the Secretariat Work Programme, and to make comments
and recommendations thereon to the Economic Committee.

The Chairman of the Industry Advisory Panel shall be the Secretary-General.

Members of the Industry Advisory Panel shall be recommended to the Economic
Committee by the Secretariat and the Panel members, bearing in mind the need to
involve a wide cross-section of interests and the availability of members to
participate in meetings. An agreed list of members shall be submitted by the Panel to
every meeting of the Economic Committee for approval.

The Industry Advisory Panel shall meet immediately before every Assembly and
Group Meeting and to such other times as may be agreed by the Executive
Committee to:

i)

ii)

iii)

discuss the economic and techno-economic factors affecting the elastomer
industry, and its future development,

review and discuss the progress of the Secretariat Work Programme and to
make recommendations for the inclusion of items in the Programme,

review and monitor the progress of projects funded by the Common Fund for
Commodities or other bodies, and to review new proposals for submission for
funding,

iv) make reports and recommendations as considered appropriate to the Economic

Committee.

Members of the Industry Advisory Panel shall entitled to free attendance at the
International Rubber Forum if they attend the Panel meeting immediately before the
Forum

Rule 10
Panel of Associates

The Secretary-General shall establish a Panel of Associates to encourage interaction
between industry and the Secretariat. Membership shall be available to any company
or organisation with an interest in the rubber industry on payment of the appropriate
annual membership fee.

The annual membership fee shall be approved annually by the Executive Committee,
and shall be fixed with regard to the benefits of membership with an appropriate
differential between companies/organisations based in Member and non-Member
countries.

15

c)

Members of the Panel of Associates shall be entitled to the following benefits:

i)

free subscription to the Rubber Statistical Bulletin and International Rubber
Digest;

ii)

free copies of all Secretariat papers arising from the Work Programme;

iii)

free access of all Secretariat’s information data base and to information from
the Secretariat staff provided that the provision of this information is within the
normal workload of the staff concerne;

iv)

one free place at every International Rubber Forum;

v)

an invitation for one person to attend meetings if the Committee of Expert
Rubber Statisticians and the Industry Advisory Panel, provided that the cost of
attendance is borne by the Panel Member.

Entitlement to the benefits of Membership of the Panel of Associates shall be
forfeited if the annual fee is not paid within six months of the anniversary of
membership, and papers and reports shall not be provided until the membership fee
is paid.

Rule 11
Appointment of Vice-Chairman

A Vice-Chairman shall normally be appointed or elected for all committees or
advisory panels appointed by the Group pursuant to Clause 24 of the Constitution.
The Vice-Chairman shall act as Chairman of the committee or advisory panel in the
absence of the elected Chairman. If both are absent a Chairman shall be elected for
the meeting from among those present.

The Statistical Committee shall elect from its members at each meeting its own Vice-
Chairman who shall be a named individual and who shall hold office until the next
meeting of the Committee but who shall be eligible for re-election.

The Committee of Expert Rubber Statisticians shall elect from its members at each
meeting its own Vice-Chairman who shall be a named individual and who shall hold
office, subject to confirmation of the appointment by the Statistical Committee, until
the next annual meeting of the Committee of Expert Rubber Statisticians but shall be
eligible for re-election.

The Economic Committee shall elect from its members its own Vice-Chairman who
shall be a named individual and who shall hold office for a period of two years but
shall be eligible for re-election.

The Industry Advisory Panel shall elect from among its members its own Vice--
Chairman who shall be a named individual and who, subject to approval by the
Economic Committee, shall hold office until the next annual meeting of the Panel but
shall be eligible for re-election.

d)

a)

b)

c)

d)

e)

16

a)

b)

c)

d)

e)

f)

g)

h)

Rule 12
Appointment of the Secretary-General

The appointment of the Secretary-General by the Group pursuant to Clause 22 of the
Constitution shall, at a Special Group Meeting or Meeting of Heads of Delegation,
be made from not more than two candidates who shall be recommended to the Group
by a Selection Panel constituted for that purpose.

The Selection Panel shall be established by the Executive Committee, normally at
least
twelve months before the expiry of the term of office of the incumbent
Secretary-General.

The Selection Panel shall comprise the Chairman of the Group and the Chairman of
the Executive Committee who shall be Chairman and Vice-Chairman, respectively,
of the Panel, and such other members of the Executive Committee who indicate
willingness to attend. The incumbent Secretary-General shall attend meetings of the
Selection Panel as an adviser without voting rights. All costs and expenses incurred
in attendance at meetings of the Selection Panel and participation in the selection
procedure by their representation shall be met by Member Governments.

The Selection Panel shall agree the format of an advertisement for the post of
Secretary-General. The advertisement shall be inserted on two occasions in the
appropriate section of The Economist, and once in the Rubber Statistical Bulletin and
International Rubber Digest. Copies of the advertisement shall be made available to
all Member Governments who would ensure circulation within the rubber industry in
their countries.

The advertisement shall state inter alia that the appointment will be made for an
initial period of three years at a level equivalent to D1 of the United Nations system,
and that expenses incurred in attending interviews shall be borne by the applicants.

Applications shall be received by the Secretary-General who shall be responsible for
the administrative aspects of the recruitment process.

The Selection Panel shall meet as required to select a short list of not more than six
applicants for interview. In this selection process preference shall be given to
applicants who are nationals of member countries who possess a recognised
university or equivalent professional qualification in a relevant discipline, and who
have experience in the rubber industry.

Interviews with short-listed candidates shall be held with the objective of choosing
unanimously or by consensus a candidate with the necessary qualities of experience,
personality, impartiality and the ability to work effectively with senior officials of
member and other governments,
for
recommendation to the Group for appointment as Secretary-General. In the event
that a single candidate cannot be agreed, two candidates chosen by consensus may be
submitted to the Group. An alternate candidate shall normally be submitted in case
the selected candidate is prevented by ill-health or other reason for assuming the
post.

international and private organisations

17

i)

The appointment of the Secretary-General shall be made at a Special Meeting of the
Group or Meeting of Heads of Delegations which shall be specially convened as
necessary. In the event that an appointment cannot be agreed unanimously or by
consensus when two names are submitted by the Selection Panel, the decision shall
be made by vote under Rule 1(b) and (c) of the Rules of Procedure. The decision
shall require a two-thirds majority of those present and voting provided that an
affirmative vote of a simple majority of natural rubber producers and of consumers,
counted separately, shall be required. The decision shall not be made by postal vote.

18

LEGISLATIVE FINANCIAL STATEMENT

Policy area(s): Industrial Competitiveness

Activity(ies):

Title of action: Community Membership of the International Rubber Study Group

(IRSG)

1.

2.

2.1.

2.2.

BUDGET LINE(S) + HEADING(S) B5 3260

OVERALL FIGURES

Total allocation for action (Part B):

€

60.500 for commitment (yearly)

Period of application:

2002 – permanent character

2.3.

Overall multiannual estimate on expenditure:

a)

commitment
Schedule
intervention) (see point 6.1.1)

of

appropriations/payment

appropriations

(financial

Once the EC has joined the IRSG, membership contributions need to be made (due on 1st July
each year). Of the approved budget, 60% shall be met by basic contributions as paid in equal
amount by all member Governments. The balance shall be paid by member Governments in
proportion to their production or consumption (whichever is the largest) of new rubber in the
calendar year previous to the financial year in question. The EC will only pay an equal share
of the basic contribution. For the year 2002 this is estimated at 40 000

€
.

€

million (to 3rd decimal place)

YEAR N

N + 1

N + 2

N + 3

N + 4

Commitments

Payments

0,04

0,04

0,04

0,04

0,04

0,04

0,04

0,04

0,04

0,04

N + 5 AND
SUBS.
YEARS

0,04

0,04

TOTAL

0,24

0,24

b)

Technical and administrative assistance and support expenditure(see point 6.1.2)

Commitments

Payments

0

0

0

0

0

0

0

0

0

0

0

0

0

0

19

SUBTOTAL A + B

Commitments

Payments

0,04

0,04

0,04

0,04

0,04

0,04

0,04

0,04

0,04

0,04

0,04

0,04

0,24

0,24

c)

Overall financial impact of human resources and other administrative expenditure
(see points 7.2 and 7.3)

Commitments/
payments

TOTAL A + B + C

Commitments

Payments

0,02

0,02

0,02

0,02

0,02

0,02

0,12

0,06

0,06

0,06

0,06

0,06

0,06

0,06

0,06

0,06

0,06

0,06

0,06

0,36

0,36

2.4.

Compatibility with the financial programming and the financial perspective

X
(cid:1)

Proposal compatible with the existing financial programming

This proposal will entail reprogramming of the relevant heading in the financial

perspective
(cid:1)

This may entail application of the provisions of the Interinstitutional Agreement.

2.5.

Financial impact on revenue:

No financial implications (involves technical aspects regarding implementation of a

X
measure)

or
(cid:1)

Financial impact – the effect on revenue is as follows:

€

million (to 1 decimal place)

Budget line

Revenue

Prior to action
(Year n – 1)

Situation following action

Year n

n + 1

n + 2

n + 3

n + 4

n + 5

a) Revenue in absolute terms

b) Change in Revenue

D

20

3.

BUDGET CHARACTERISTICS

Type of expenditure

New

EFTA
participation

Participation
applicant
countries

Heading
Financial
Perspective

Comp/
Non-
comp

Diff/Non-
diff

YES/ NO

YES/NO

YES/NO

No

4.

LEGAL BASIS

Article 133

5.

DESCRIPTION AND GROUNDS

5.1.

Need for Community intervention

5.1.1. Objectives pursued

The International Rubber Study group was founded in 1944. The Study Group provides a
forum for the discussion of matters affecting the supply and demand for both synthetic and
natural rubber. It covers all aspects of the world rubber industry,
including marketing,
shipping distribution, trade in raw materials and the manufacture and sale of rubber products.

final

liquidation of

the International Natural Rubber Organisation (INRO) on
After
31 August 2001, future dialogue between natural rubber exporting and importing countries
would best be achieved by strengthening the long existing IRSG, being the forum for the
discussion of matters affecting the supply and demand for both synthetic and natural rubber.

Several EU Member States are already member of the IRSG, EC Membership will facilitate
co-ordination and developing of a common position in (yearly) meetings of the Executive
Committee.

5.1.2. Measures taken in connection with ex ante evaluation

The financial contribution to the IRSG only consists of the membership contribution.

The Secretary-General shall be responsible for drawing up and submitting to the Executive
Committee not later than the 31st March each year a provisional budget for the following
financial year for approval by the Group. The Secretary-General shall circulate to all Member
Governments as soon as possible after the end of the financial year an annual statement of the
accounts certified by the Chairman or Vice-Chairman, the Secretary-General and the auditors.

5.1.3. Measures taken following ex post evaluation

21

5.2.

Actions envisaged and arrangements for budget intervention

The participation of the Community in the study groups was set out in a Council statement in
an arrangement between the Council and the Commission. Each Member State may choose
whether to be a member of the study group; membership of the Community will be decided
by the Council. Participation will involve a common position with a single voice. The
Commission representative will normally be the spokesperson.

5.3.

Methods of implementation

Given that the study groups were created to provide transparency in commodity markets and
improve the global competitiveness of producers and transformers/consumers,
the
Commission’s participation is being assured by DG ENTR, given its knowledge of the
industrial sectors concerned. However, other DGs are invited to participate when dealing with
specific items, like environment, statistics and customs.

6.

FINANCIAL IMPACT

6.1.

Total financial impact on Part B (over the entire programming period)

The financial contribution to the IRSG only consists of the membership contribution.

6.1.1.

Financial intervention

Commitments in

€

million (to the 3rd decimal place)

BREAKDOWN

YEAR N

N + 1

N + 2

N + 3

N + 4

0,04

0,04

0,04

0,04

0,04

N + 5
AND
SUBS.
YEARS

0,04

TOTAL

0,24

Action 1

Action 2

Etc.

TOTAL

0,04

0,04

0,04

0,04

0,04

0,04

0,24

22

6.1.2.

Technical and administrative assistance, support expenditure and IT expenditure
(Commitment appropriations)

YEAR N

N + 1

N + 2

N + 3

N + 4

N + 5
AND
SUBS.
YEARS

TOTAL

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

1) Technical and
administrative assistance

a) Technical assistance
offices
b) Other technical and
administrative assistance:

- intra muros:

- extra muros:

of which for construction
and maintenance of
computerised
management systems

Subtotal 1

2) Support expenditure

a) Studies

b) Meetings of experts

c) Information and
publications

Subtotal 2

TOTAL

23

6.2.

Calculation of costs by measure envisaged in Part B (over the entire
programming period)

Commitments in

€

million (to the 3rd decimal place)

BREAKDOWN

TYPE OF OUTPUTS
(projects, files)

1

NUMBER
OF OUTPUTS

(total for years 1…n)
2

AVERAGE UNIT COST

TOTAL COST

(total for years 1…n)

3

4 = (2 · 3)

Action 1

- Measure 1

- Measure 2

Action 2

- Measure 1

- Measure 2

- Measure 3

Etc.

TOTAL COST

7.

IMPACT ON STAFF AND ADMINISTRATIVE EXPENDITURE

7.1.

Impact on human resources

Types of post

Staff to be assigned to management of the
action using existing and/or additional
resources

Number of
permanent posts

Number of
temporary posts

Permanent
officials or
Temporary staff

A

B

C

Other human resources

Total

0,2

0,2

Description of tasks deriving
from the action

If necessary, a fuller
description of the tasks may
be annexed.

Total

0,2

0,2

24

7.2.

Overall financial impact of human resources

Type of human resources

Officials

Temporary staff

Other human resources

€

Amount

20 000

Method of calculation *

(give budget line)

Total

20 000

The amounts are total expenditure for twelve months.

7.3.

Other administrative expenditure deriving from the action

€

Amount

Method of calculation

500

Budget line

(number and heading)

Overall allocation (Title A7)

A0701 – Missions

A07030 – Meetings

A07031 – Compulsory committees

A07032 – Non-compulsory committees

A07040 – Conferences

A0705 – Studies and consultations

… Other expenditure (state which)

Information systems (A-5001/A-4300)

Other expenditure - Part A (state which)

The amounts are total expenditure for twelve months.

Total

500

I.

II.

III.

Annual total (7.2 + 7.3)

Duration of action not determined

Total cost of action (I x II)

€

20 500

Not determined
€

25

8.

FOLLOW-UP AND EVALUATION

8.1.

Follow-up arrangements

The Commission representative will play an active role in the IRSG in order to safeguard
optimally the interests of the Community.

8.2.

Arrangements and schedule for the planned evaluation

Within three years after having joined the IRSG, Commission services will evaluate the
Community’s role in terms of inputs (human resources) and output (e.g. the number of joint
statements made, contacts with Secretary-General etc.).

9.

ANTI-FRAUD MEASURES

See “Constitution and Rules of Procedure” of the International Rubber Study Group.

26