FIFTH COMMITTEE COMPLETES FIRST READING OF 1996-1997 BUDGET SECTIONS

7 November 1995

Press Release
GA/AB/3039

FIFTH COMMITTEE COMPLETES FIRST READING OF 1996-1997 BUDGET SECTIONS

19951107 Concludes Initial Reading of Final Sections on Construction, Technological Innovations, Staff Assessment, and Seabed Authority

The Fifth Committee (Administrative and Budgetary) this afternoon concluded the first reading of the proposed United Nations budget for 1996- 1997 and would begin informal consultations on it next week.

The Committee completed the first reading after reviewing sections 30, on technological innovations; 31, on construction and major maintenance; 32, staff assessment; and 33, the International Seabed Authority. It also concluded the review of the three income sections -- general income, staff assessments income, and income from services to the public. (For information on the four sections, see Press Release GA/AB/3038 issued today.)

The sums proposed for the expenditure sections, after adjusting for factors such as inflation and exchange rate fluctuations, are $21.9 million for technological innovations; $46.4 million for construction and maintenance; $368.6 for staff assessment; and $776,000 for International Seabed Authority. The Advisory Committee on Administrative and Budgetary Questions (ACABQ) has proposed reductions to $42.8 million for construction and maintenance activities, and to $367.5 million as spending on staff assessment.

As for income estimates, the Secretary-General forecast $373.6 million from staff assessments, while the ACABQ estimates $372.5 million. Both agree on expected incomes of $81.8 million from general income and almost $6 million from services to the public.

As for the overall budget, the Secretary-General proposes about $2.69 billion and the ACABQ recommends $2.67 billion, after adjustments for inflation and currency fluctuations.

The budget's first reading is meant to help the Committee identify difficult points in it that would eventually be resolved in informal consultations. At the end of the first reading and the first round of informal consultations, the Committee would put together amounts approved for each section and those approved in respect of revised estimates and programme budget implications. In second reading, each section's total appropriation would be approved. The entire exercise is expected to produce a package, which would form the programme budget for 1996-1997.

A Vice-Chairman of the Committee, Ammar Amari (Tunisia), informed the Committee that informal consultations on the proposed budget would be conducted by Martin Sharp (Australia).

Statements were made this afternoon by the representatives of the United States, Russian Federation, Jamaica, Indonesia, Japan and Tunisia. The United Nations Controller, Yukio Takasu responded to questions raised by Committee members.

The Committee will meet again at 3 p.m. tomorrow, 8 November, to take up financial statements and reports by the Board of Auditors.

Statements on Construction and Maintenance

Speaking on section 31 -- construction, alteration, improvement and major maintenance -- SUSAN SHEAROUSE (United States) said that some maintenance projects such as cosmetic restorations could be deferred. The Secretary-General should identify work that could be deferred without negatively affecting United Nations buildings.

YUKIO TAKASU, United Nations Controller, said a detailed breakdown of the projects to be undertaken was available. The amount under the section had been reduced and limited to urgent projects that could not be postponed.

Ms. SHEAROUSE (United States) said the information she had sought was essential and should be provided at informal consultations.

The Committee concluded the first reading of that section.

Statements on Seabed Authority

Speaking on section 33 -- International Seabed Authority -- VLADIMIR KOUZNETSOV (Russian Federation) said all the spending relating to the functioning of bodies of the United Nations Convention on the Law of the Sea, including the Authority, should be borne by parties to the Convention. Budget should not provide for the administrative costs of the Authority for a long time; all spending should be taken over by the Convention's participants and that section should ultimately be deleted.

Fifth Committee - 3 - Press Release GA/AB/3039 24th Meeting (PM) 7 November 1995

PATRICIA HOLLAND (United Kingdom) asked for clarification as to when the Committee could expect the Authority's budget for 1996.

SHEILA SEALY MONTEITH (Jamaica) said her delegation attached great importance to the Authority and to its appropriate funding. The provisions in the regular budget had been made, pending the submission of the budget of the Authority. The proposed budget should be revised to reflect the Authority's requirement for a full year.

PRAYONO ATIYANTO (Indonesia) said that following the entry into force of the Convention, the Authority had been set up in Kingston to handle activities in seabed mining. It had not been able to elect the members of its Council and its Secretary-General. Further attempt would be made in that regard in two substantive meetings -- for three weeks from 11 March 1996 and up to two weeks from 5 August 1996 in Kingston. In that regard, the Authority had asked for the United Nations Secretary-General to submit a draft budget for the Authority's administrative expenses for 1996. In doing that he should be guided by the document elaborating the Authority requirement. His preparations should take into account the fact that the Secretary-General of the Authority could not be elected before the meeting of the Assembly of the Authority in March 1996.

Mr. TAKASU said the inclusion of the Authority's expenses in the budget had been approved by the General Assembly. The Secretary-General had previously provided the budget implications of that decision. When he prepared the budget, it had been assumed that a Secretary-General would have been elected for the Authority. That had not occurred and the United Nations Secretary-General would present estimates for 1996 in the next few days. For the remaining two months of this year, it was anticipated that current appropriations would suffice, without disrupting the Authority's work.

HIDEKI GODA (Japan) said he looked forward to receiving more information. He would reserve his comments for the informal consultations.

The Committee concluded its first reading of section 33 on the International Seabed Authority.

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