Dear GEA Members and Associates
I wish to advise that the GEA Board of Directors has recently conducted a careful review of spending and revenue in the course of framing the Association’s 2017-18 budget. This was not an easy task in light of Directors’ desire that our industry should continue to benefit from both LPG and natural gas fuels (ie LNG and CNG) advocacy, while maintaining the Association’s other core services which add value to all members’ and associates’ businesses. Last financial year, LPG advocacy was provided by Elgas, but this will end after 30 June 2017, and natural gas fuels advocacy was partly funded by members’ Industry Development Program (IDP) contributions.
In addition to making substantial cost savings in the Association’s operational budget, the Board reviewed contribution rates across all grades of membership with the goal of balancing the Association’s budget in 2017-18 firmly in mind. The Board, which includes an Advisory Council Member – Grade 3 (ACMG3) representative, concluded the relative annual contribution rate for an ACMG3 member fell short of the comparative rates for other grades. In response, it decided that the annual contribution rate for an ACMG3 member should increase to $9,700 in 2017-18. ACMG3 members were consulted as part of this process and I acknowledge some expressed concern about the magnitude of the increase.
Nevertheless, to balance the budget in 2017-18, this increase, along with a 5% across-the-board increase in contribution rates for all other grades of membership is required. And while this general increase is 3 percentage points in excess of the expected inflation rate, it should be noted that both these contribution rate increases cover less than 40% of the cost of future advocacy, with the majority coming from cost savings.
The 2017-18 annual contribution rates for different grades of GEA membership are shown below.
Executive member $217,413
Advisory Council member – Grade 1 $72,828
Advisory Council member – Grade 2 $28,917
Advisory Council member – Grade 3 $9,700
Executive Associate $115,668
Advisory Associate $57,834
Associate – Grade 1 $2,785
Associate – Grade 2 $536
Further, in an effort to generate new revenue and contain future contribution rate increases, the GEA Board of Directors has also decided to introduce a $500 annual fee for non-members to access the Saudi Contract Price (SCP) data the Association posts on its website. While the SCP data on LPG prices is the most popular source of hits on our website, we cannot be certain how much revenue the fee might generate and so did not rely on it to significantly help balance our budget.
I appreciate your understanding concerning these contribution rate increases and thank you for your ongoing support of the Association.
Chairman of the GEA Board of Directors
10 April 2017