Submission from the Parliamentary Unit,
Department of Energy and Climate Change
INTERNATIONAL ATOMIC ENERGY AGENCY (IAEA)
THE UK'S
CURRENT FINANCIAL
CONTRIBUTION TO
THE IAEA'S
WORK
The UK is the fourth largest contributor to
the IAEA regular budget, a sum of €15.2 million and US$3.75
million for FY 2009 (6.64%). Relative contributions of each member
are derived from the UN's Regular Budget scale, as adopted by
the General Assembly. The UK is also one of the largest contributors
to IAEA voluntary funds—notably the Technical Cooperation
Fund (US$5.1 million in 2008) and the Nuclear Security Fund (£2
million so far since 2007).
The implications of the current weakness in
Sterling in relation to these commitments.
Clearly the extent of the fall in the value
of Sterling—over 30% since the budget was set—presents
difficulties, as the UK has a legal commitment for regular budget
contributions. Any unavoidable and significant overspend can undermine
priority setting and the financial planning process, and can affect
the UK's potential to pay voluntary contributions, both now and
in following years. There is, however, some limited scope to mitigate
currency rate effects through changes in the timing of payments.
As a matter of priority the Department is exploring, with others,
ways to handle similar problems in future. But any specific financial
measure, including hedging, would need to be balanced against
the cost and other implications.
The Government's position in relation to the
suggestion that the IAEA's budget should be increased dramatically,
as set out in the Report by the independent Commission appointed
by the IAEA Director-General entitled "Reinforcing the
Global Nuclear Order for Peace and Prosperity, the Role of the
IAEA to 2020 and beyond", published in May 2008.
As a committed Board member, the UK seeks to
ensure that the Agency has the necessary resources to do its job
effectively. The Department is currently looking closely at future
Agency funding, in preparation for Budget Committee discussions
commencing in mid February. Several issues need to be considered.
While the grounds for more resources—for example to support
a greater number of IAEA inspections of nuclear facilities in
future—are clear, the "2020 Report" itself acknowledged
that the IAEA should prioritise those areas where it can make
the most difference and explore efficiency gains using up to date
management and communications. Timing is also key, to ensure that
funding is available when it is needed, and that rebates are minimised,
since they represent an opportunity cost. Not least the UK makes
a major contribution-in-kind to the Agency's work through the
engagement of UK experts and provides a support programme on safeguards,
including the training of inspectors—activities that will
continue to be strengthened and developed to support future IAEA
work.
27 February 2009
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