Heuer's first email

-- 
Best regards,

        Frank

	Frank E. Taylor

        CERN                                      MIT 
        ATLAS Collaboration                       Bldg. 26 - Rm 569
        188-3-015                                 77 Mass. Ave.
        Route de Meyrin 385, CH-1211 Geneva 23    Cambridge, MA 02139
        Switzerland                               USA
        Office: +41-22-767-6373                   Office: 617-253-7249
        FAX: +41-22-767-8350                      FAX: 617-258-6923

        CELL:  781-484-8776 (USA & Europe) CERN CELL +41 76 487 3563
        email: [log in to unmask]
        web:   http://www2.lns.mit.edu/~fet/atlas_mit.html

---------- Forwarded message ----------
Date: Wed, 25 Aug 2010 15:43:43 +0200
From: Rolf Heuer <[log in to unmask]>
To: "cern-personnel (CERN Personnel - Members and Associate Members)"
    <[log in to unmask]>
Subject: [iso-8859-1] Today's Finance Committee meeting - Le Commité des
    finan[iso-8859-1] ces d'aujourd'hui

Version française ci-dessous

Dear Colleagues,

You are all aware that Finance Committee held an extra meeting today to
discuss CERN's medium-term plan (MTP) for the period 2011-2015. This is an
extraordinary move, but these are extraordinary times. All our Member
States are making significant budget cuts at the national level, and it is
difficult to argue why intergovernmental organizations such as CERN should
be exempt.

At its June meeting, Council asked us to make cost cutting proposals to be
discussed by Finance Committee today. Our strategy has been to protect the
LHC programme, and just as importantly to protect the long-term well being
of CERN and its personnel. The MTP we presented today is science-driven,
yet it reduces spending on research and consolidation through careful and
responsible adjustment of the pace originally foreseen. At the same time,
it increases the injection of capital into CERN's social security systems.
Taken together, these measures result in a reduction of the Organization's
budget deficit that is lower than anticipated in June, but acceptable in
the current financial climate. They represent a long-term view of CERN's
route through the financial crisis, protecting what we have today without
compromising our future.

Let me address these points in turn. Firstly, with the LHC now running it
is essential that we make full use of this remarkable research facility.
However, the upgrade programme, originally developed assuming a 2008 LHC
start-up, can proceed at a slower pace with minimal compromise to the
physics programme. Similarly, we can delay consolidation work on our
ageing accelerator chain without unduly risking the reliability of LHC
operations. Under the new plan, Linac4, for example, will be connected in
2016, one year later than originally planned.

The MTP presented today also protects the non-LHC programme, but with a
similar degree of compromise. There will be no running of the CERN
accelerators in 2012, for example, allowing us to make savings on running
costs while at the same time diverting manpower to consolidation of the
accelerator chain and preparation of the LHC for full energy running
starting in 2013.

Looking further ahead, the MTP has been designed to position CERN as a
strong bidder for any future energy frontier project in particle physics.
Here again, we can slow down the pace of R&D without jeopardising that
objective. The MTP therefore allows for continuing R&D on both CLIC and a
higher-energy proton machine, but at a slower pace. As part of this
vision, work on high-power proton sources will allow CERN to play its part
in global developments for neutrino physics, possibly leading to a future
intensity frontier to complement the energy frontier work currently
embodied by the LHC.

Finally, Council recognised in 2007 that measures were necessary to return
the CERN pension fund to financial equilibrium. This MTP earmarks funds
for CERN's social security systems, allowing us to begin the long-term
sustainable recapitalization of the pension fund, while at the same time
balancing the budget of the health insurance scheme.

Our proposals were well received by delegations, who overwhelmingly
recommend the revised MTP for approval to Council at its meeting on 16
September. Following that meeting, full details of all these measures will
be made available on the CERN Council website.

I firmly believe that basic science budgets must be protected even in, and
perhaps particularly in times of economic downturn. Basic science
underlies innovation and ultimately drives economic prosperity. But as a
publicly-funded body, we have to be realistic, and that is why we went to
Finance Committee today with a document that is science driven, but also
affordable.

Rolf Heuer