CELEX: 51981DC0141
Language: en
Date: 1981-03-23
Title: TRANSFER OF APPROPRIATIONS No 3/81 (non-compulsory expenditure)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (81) 141
Vol. 1981/0036
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit
règlement.
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this
file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5
der genannten Verordnung freigegeben.
 ---pagebreak---      COMMISSION OF THE EUROPEAN COMMUNITIES
GENERAL BUDGET - FINANCIAL YEAR 1981              COM(81)141 final
SECTION III - COMMISSION
                                                  Brussels - 23rd March 1981
                                               /
                        TRANSFER OF APPROPRIATIONS No 3 / 81
                           ( non-compulsory expenditure )
               fx - !.:. %y
                 \           '
   C0M(81 ) 141 final
 ---pagebreak---                                                      Ο&λλ Λ4 Α
 GENERAL BUEGET - FINANCIAL YEAR 1981
 SECTION III ( COMMISSION)
                     TRANSFER OF APPROPRIATIONS No 3/81
                        ( non-compul sory expenditure )
FROM CHAPTER 100                           PROVISIONAL APPROPRIATIONS
Line 10 – Article 206
TO CHAPTER 20                              IMMOVABLE PROPERTY INVESTMENTS ,
                                           RENTAL OF BUILDINGS AND
                                           ASSOCIATED EXPENSES
Article 207                                Construction or buildings
                                                                            526 000 ECU
The Financial Controller endorsed this proposal in accordance with Article 21(4 )
of the Financial Regulation , certifying that the appropriations are available ,
on 17 February 1981 .
 ---pagebreak---                                    GROUNDS
1.    In October 1979 "the Council approved the principle of a Commission
Etelegation being opened, in Canberra , Australia.     In July 1980 , when both
the 1980 budget and the memorandum of agreement between the Commission and
the Australian Government had been signed , the local authorities and a
number of embassies assisted investigations into the question of siting
the Delegation .
(a )   The Department of the Capital Territory exercises strict planning control
       over Canberra : the national institutions and government departments are
       sited in what is commonly known as the " parliamentary triangle ", the
       south-west extension of which is reserved for diplomatic missions which
       may not , under any circumstances , be located in the residential areas .
( b ) Chancelleries may, however , be situated in business areas although this
       has been difficult as Canberra was planned as an administrative city of
       25 000 inhabitants .    The economic difficulties which have since arisen
       have delayed the development of these areas , though rents and property
       prices have risen sharply as a result of recent government decisions :
       aimed at stimulating economic activity.
(c)    Since the Federal Government has only recently dropped its policy of
       reserving almost all the dwelling houses ( generally in the suburbs )
       for its own employees , houses are not available except in the very rare
       cases where , civil servants on a two - or three-year posting move on ."
       Nevertheless , the commissioning of a new development programme has given
       rise to a speculative market on which small prefabricated houses are
       being offered for sale at exorbitant prices .                          ^
2.    None of the buildings visited was suitable for the Commission Delegation .
The most advanced building projects would not be completed until 1982 .         With
the assistance of the local authorities , the Commission succeeded in renting
an area of some 1 100 sq m in a small building under construction which had
originally been intended for business use .       It should be finished at the
end of February 1981 .      The lease runs for five years from 1 March 19 8l and
the position with regard to the offices is now settled for the time being .
The Head of Delegation must be provided with a residence , but we must avoid
renting a vast property at a prohibitive price and having to do a considerable
amount of work on it .
3 . . The Australian Government usually provides diplomatic missions in Canberra
with plots of land on a ninety-nine year lease , the mission being obliged to
build its Chancellery or the residence of its Head of Delegation or both on
that site within 18 months to three years .       The mission is also responsible
for laying out and maintaining the gardens .
 ---pagebreak---  Of the ten Member States , Belgium , France , Germany and Italy already have
 large areas on which both chancellery and residence are sited , and Greece
 has just acquired a plot . The Department of Foreign Affairs and the embassies
 of the Member States agree that , even in the short term , this is the most
economic solution .
The Australian Government has informed the diplomatic missions sited in the
residential zones of the Australian Capital Territory (ACT ) that they are
in breach of regulations and will not be allowed to remain after 1 9^7 -
This affects , inter alia , Denmark .
4°   For the sake of efficiency , the Delegation of the Commission and the
residence should be sited in one of the areas close to the embassies and
the parliamentary triangle . Land in that area is at a premium because
the new Australian Parliament buildings will be built there before 1990 .
The Commission took advantage of the Australian Government 's offer of a
7 553 sq m plot at an annual rent of about S>A 6 000 (about 5 400 ECU ) subject
to review evei-y twenty years . This, area is similar to that occupied by the
Netherlands , smaller than those of Ireland and Greece , about half the size
of that rented by Germany and. a quarter of the size of those occupied by
France and Belgium .
5.   The Commission 's first obligation is to have a building constructed within
eighteen months of signing the lease . In view of the difficult and uncertain
nature of the rented market in Canberra , the Commission intends 'to build
both offices and a residence for the. Hea.d of Delegation. One of the largest
Australian "building, firms has prepared studies which show that :
(a) a building of 1 100 sq m for the Delegation ^rould cost pi 65 0 000
       ( 584 000 ECU at December 1 9S0 rates );
(b) a building with 550 sq m of living space would cost $A 538 000
      ,(483 000 ECU at December 198O rates ) including -preparation of the land .
The annexed comparison between renting and building COSTS shows that the
investment would be amortized in under five years from the completion of
construction in the case of the offices and in under six years in the case
of the residence . These periods are to be extended by two years if the loss
of interest on the money spent is included .
                                                                  /
The Commission will , in any event , continue its efforts to find the most
advantageous solution .
 ---pagebreak---                                      - 3 -
 6 . Since office space for the Delegation has been secured until February 19 86 ,
the Commission proposes to build a residence for the Head of the Delegation
in 1981 . This should take eight months .   In 19^3 , it will begin work on the
building to house the Delegation offices .
Since at Chapter 100 of the budget for 1981 there is a provisional appropriation"
of 1 500 000 ECU for the purchase of building land or buildings , the Commission
proposes that the budgetary authority authorize' the transfer of 526 000 ECU
to Article 207 ( construction of buildings ), which at present has only a token
entry .
 ---pagebreak---                           Comparative costs of renting and, building ( in ECU )
                                             I.    Residence
                            rent ^                     Total building costs
                   Cost of
     Year                                           Expenditure                     Cumulât ive
                                                                      „ Conraound   grand
                 per year     cumulât ive
                                            per year      cumulât ive    interest   total
                                total
                                                             total
          !
    1981 !         75 000 ï         75 000 606 400(3 )     606 400        34 541      640 941
   1982 !''
                   82 500 I        157 500   5 400         611  800       63 549      709 890
■  1983 1'         90 700 !        248 200   5 400         617 200        60 721      776 011
                          I
:  1984-           99 800 !        348 000   5 400         622 600        56 343      837 754
   1985 ! :       109 800 I        457.800   5 400         628 000        50 096      893 250
   1986 '         120 800 !        578 600   5 400         633 400        40 006      938 656
   1987 '         132 800          711 400   5 400         638 800        24 428      963 484
                          I
   1988           146 000          857 400   5 400         644 200        12 230      986 114
   1989           160 600 ;    1 018 000     5 400         649 600      - 2 781       988 733
  1
     Assuming that rents    rise by 10% per year .
  •¿
     Assuming a notional loss of interest at the following rates :      13% to 1985 ,
     12 .5% in 1986 and 10.5# from I987 .
     Breakdown :   Rent for the residence                               75 000
                   Ground rent               5 400
                   Building costs          362 000
                   Approaches              164 000                     531 400
                                                                       606 400
     Building costs are based on 109% of December I98O prices .
 ---pagebreak---                          Comparative costs of renting and "building ( in ECU)
                                             II #   Delegation
                                                                               2
                                                        Total  "building costs
                  Cost of rent ^
 Year
                                           ■  Expenditure ( including        Compound ,      Cumulative
                                              rem 1
                                                                              interest       ^ra.U.U.
              per year       CUE ulative .      per year      cumulât ive                    tot ai
                               t otal                            total
  1981           Ί31 500   1     131 500         131 500           131 500                        131 500
  1982           131 500         263 000 "       131 500           263 000                        263 000
  1983           157 800         420 800         321 800           584 800 -      21 320          606 120
  1984 J |       157 800 ,       578 600         515 300        1 100 100         70 566       1  191 986
  1985   !' '
                 157 800         736 400         515 300        1 615 400       126 215        1 833 501
  1986         . 189 400         925 800             -
                                                                1 615 400       113 462        1 946 963
  1987· !;       189 400      1 115 200              -
                                                                1 615 400         87  335' .   2 034 298
  1988 1         189 400      1 304 600            : -          1 615 400    -    76 618       2 110 916
  1989 · Í       227 000      1 531 600              -          1 615 400         60 828       2 171  '.'4 U
  1990   |.      227 000      1 758 600                         1 615 400         43 380       2 215 1 ?4
  1991   !'      227 000 .    1 985 600                         1 615 400         24 100       2 239 224
         I
  1992   ;       272 000      2 257 600              ·*         1 615 400       - 1 929        2 237 295
          •
  ►
 Assuming a rent increase of 20$ after the first two years and of 20$ every
 three years from 1983 »                                                        -
^Building costs "based on December 1980 prices (584 000 ECU) plus 12$
 per year until 1983 and 9$ in 1984*           Payment : 20$ ( 164 000 ECU) in 1983 ,
 40$ ( 357 000 ECU) each in 1 984 and 1985 -                                        -
^Assuming a notional loss of interest at the following rates : 13$ to 1985 ,
 12.5$ in 1986 and 10.5$ from 1987 .
 ---pagebreak---                                                - 3 -                       ANNEX . ( cont }
                             Calculation of corrraound interest
                                        I. Residence
                                                                                    ECU ,
               531 400 χ 0,13 χ 0,5 =                                              34 541
: 1981
i
' 1982         531 400 + 34 541 + 5 400 - 82 500 =              488 841
                                                                χ 0*130 =          63 549
  1983         488 841 + 63 549 + 5 400 - 90 700 = 467 090
                                                                χ 0.130 =          60 721
  1984
  1984         46? 090 + 60 721 ++55 400 - 99 800 = 433 411
                                                                χ 0.130 =           56 343
                           !'      v
  1985
  1985         433 411 + 56 343 + 5 400 - 109 800 < =            385 354
                                                                 χ 0.130            50 096
  1986
  1986         385 354 + 50 096 + 5 400 - 120 800 = 320 050
                      -    !   .             ■  ■                χ 0.125            40 006
                           t
  1987
  1987 '       320 050 + 40 006 + 5 400 - 132 800              = 232 656
                           h                      •               χ 0.105           24 428
  1988         232 656 + 24 428 + 5 400 - 146 000              = 116 484
                                                                  χ 0.105           12 230
      ;      .      ■      j•                       ■
  1989          116 484 + 12 230 + 5 400 - 160 600             = - 26 486
                                                                  χ 0 ,105        - 2 781
                                                      Total interest              339 133
                                         II . Delegation
   1981          ( zero )
    1982         ( zero )
                                                                                     21 320
    1983        164 000 x 0,130
    1984        164 000 +        21 320 + 357 500       542 820
                                                        χ 0,130                      70 5*6
    l
     1985       542 820 +        70 566 + 357 500 = 970 886
                                                        χ- 0.130                   126 215
      1986      970 886 + 126 215 - 189 400 =           907 701
                                                        χ 0.125·                   113 462
        1987    907 701 + 113 462 - 189 400 =           831 763
                                                        χ 0.105                      87 335
        1988    831 763 +        87 335 - 189 400 =     729 698
                                                         χ 0.105                     76 613
  ; 1 989       729 698 +        76 618 - 227 000 = 579 316
                                                         χ 0.105                     60 828
  I
  j              1       I           '
        1990     579 316 +       60 828 - 227 000 =     413 144
                                                         χ. 0.105                    43 380
  i
  ' 1991         413 144 +       43 380 " 227 000 = 229 524
                                                         χ 0·;105                    24 100
        1992     229 524 +       24 100 - 272 000 = - 18 376
                                                                                   - 1 9^9
                                                         χ 0,105
                                                                                   621 895