FIFTH COMMITTEE ASKS ASSEMBLY TO NOTE REVISED ESTIMATES FROM DECISIONS BY ECONOMIC AND SOCIAL COUNCIL

Press Release
GA/AB/3119

FIFTH COMMITTEE ASKS ASSEMBLY TO NOTE REVISED ESTIMATES FROM DECISIONS BY ECONOMIC AND SOCIAL COUNCIL

The General Assembly would take note of the revised estimates emanating from decisions adopted by the Economic and Social Council on the understanding that the additional appropriations would be determined according to the procedures for using the contingency fund, if it adopts a draft decision approved without a vote this morning by the Fifth Committee (Administrative and Budgetary).

The United Nations budget includes a contingency fund, set at 0.75 per cent of the overall budget level, to accommodate additional expenditures relating to the biennium derived from legislative mandates not provided for in an original proposed budget, or from revised estimates. The fund has currently a balance of about $19.4 million.

The estimates the Assembly would note, under the text approved by the Committee, would total about $1.1 million falling almost equally under the United Nations budget sections for crime control and international drug control.

The draft was approved as the Committee considered some issues related to the 1996-1997 regular budget, which included also the International Seabed Authority's 1997 budget.

The Committee's action was taken after the representative of the United States said he would neither take part in nor block the draft's approval. An overwhelming majority of delegations supported the Committee's action. Statements were made by the representatives of Uganda, Cuba, Mexico, Egypt, Canada, China, Ireland (for the European Union), Sierra Leone, Germany, Japan, Marshall Islands, Colombia and Brazil.

Also this morning, the Committee discussed administrative and budgetary aspects of the financing of peace-keeping operations. Cuba's representative said that the United Nations should freeze the number of officers loaned to it

Fifth Committee - 1a - Press Release GA/AB/3119 33rd Meeting (AM) 27 November 1996

by Member States until the Assembly had considered the issue. The representative of Singapore asked the Organization to develop a uniform scale for death and disability benefits in place of the current system which paid some States more than 20 times the amounts others received. He called on the Committee to act quickly on the requests by the Czech Republic, Slovakia and Zambia to be moved to the groups of States charged lower rates for peace- keeping missions.

The representatives of Pakistan, Algeria, Ireland, China, Nigeria, Egypt, Zambia, Saudi Arabia, Canada and Uganda also spoke on the administrative and budgetary aspects of peace-keeping financing.

Further this morning, the Committee discussed the budget of the International Seabed Authority. The representative of Jamaica said that the Committee should approve the Authority's budget of some $4.2 million and use the contingency fund to finance the Authority's administrative expenses of about $2.8 million. The Authority's conference-servicing costs would be absorbed in the United Nations budget.

Support for the Authority's budget and the recommendations on it by the Advisory Committee on Administrative and Budgetary Questions (ACABQ) was expressed by the representatives of the Marshall Islands, Indonesia, Japan, Bangladesh, Philippines, Cuba, Tunisia, Germany, Kenya, Ghana, China, Colombia, Egypt, Mexico, Australia, Papua New Guinea, New Zealand, Haiti, South Africa, Algeria, Cyprus and Senegal.

The expressions of support were voiced after the United States' representative proposed, before the formal introduction of the Secretary- General's and the ACABQ's reports on the Authority's budget, that the item be referred to informal consultations to clarify some discrepancies.

The United Nations Controller, Yukio Takasu, explained the differences that had emerged in the amounts proposed for general temporary assistance. The Seabed Authority, he emphasized, was an independent body with its own decision-making processes.

Submitting the Authority's budget to informal consultations, the Committee's Chairman, Ngoni Francis Sengwe (Zimbabwe), said it would be discussed in the context of the 1996-1997 United Nations appropriations.

As the Committee continued its consideration of human resources management also this morning, the representative of Bolivia, speaking for the Rio Group, said that the Committee should act quickly to forestall the emergence of a greater gap between the pay of the United Nations common system and that of the United States federal civil service.

Fifth Committee - 1b - Press Release GA/AB/3119 33rd Meeting (AM) 27 November 1996

Statements were also made by the President of the Coordinating Committee for International Staff Unions Associations (CCISUA), Tarek Sharaf, who said that staff purchasing power had dwindled by 18 per cent over the last 10 years. His counterpart from the Federation of International Civil Servants Associations (FICSA), Wayne Dixon, called for consultations and said that the distinctive needs of the specialized agencies required equal consideration.

The Committee is scheduled to meet again at 10 a.m. on Friday, 29 November, to continue discussing the pensions and common systems, and to take up the financing of the United Nations Mission in Bosnia and Herzegovina (UNMIBH), United Nations Transitional Administration for Eastern Slavonia, Baranja and Western Sirmium (UNTAES), United Nations Preventive Deployment Force (UNPREDEP) and the United Nations Iraq-Kuwait Observation Mission (UNIKOM).

Committee Work Programme

The Fifth Committee (Administrative and Budgetary) met this morning to consider the budget proposals for the International Seabed Authority. It was also scheduled to continue discussing the revised estimates of resolutions and decisions of the Economic and Social Council; administrative and budgetary aspects of peace-keeping operations; the United Nations common system; the Organization's pension system; the Secretary-General's report of the Office of Internal Oversight; and human resources management.

Human Resources Management

Under human resources management, the Committee has before it a Joint Inspection Unit (JIU) report, entitled "Inspection of the application of United Nations recruitment, placement and promotion policies (Part II. Placement and promotions)" (document A/51/656).

The JIU report states that the functioning of the current placement and promotion system suffered from most of the flaws and deficiencies which were characteristic of the previous systems. Limited promotion possibilities are further aggravated by circumvention of recruitment policies through the use of short-term appointment at the entry and higher levels, followed by so-called "regularization" of temporary staff. Despite criticism by Member States and the JIU -- and in contravention of Administrative Instruction ST/AI/413, which governs the promotion and placement system -- the practice of placing, on a temporary basis, some staff members against vacant posts at levels higher than their own grade for long periods continues to persist and damage the careers of other eligible staff.

It adds that in quite a number of cases, placement on higher level posts has been made without announcing vacancies internally, which is at variance with United Nations policy. It is noted that the Department of Administration and Management which enforces personnel procedures and policies, and the Department of Political Affairs are the departments that abused that practice most.

The current recruitment, placement and promotion system still lacks objective criteria, the report states. In the context of achieving gender parity, the Secretary-General has introduced a number of measures which are "discriminatory towards male candidates". Such action, and a temporary suspension of recruitment of men, are seen by the JIU and the United Nations Administrative Tribunal as diluting the United Nations Charter's fundamental principle of "securing the highest standards of efficiency, competence and integrity".

The report states that another deficiency of the current promotion system is the absence of criteria for accelerated promotion. There are no systematic means for ensuring that equally qualified people fill the same or comparable posts within the various occupational groups. "Promotions may be

Fifth Committee - 3 - Press Release GA/AB/3119 33rd Meeting (AM) 27 November 1996

granted either in a rigorous or open-handed basis, which depends on the individual supervisor but also on the presence or absence of powerful patrons elsewhere, both inside and outside the Organization." That statement is supported by the results of a 1995 world-wide survey of United Nations staff which reveals that "having friends higher up is by far the decisive factor in promotion" -- according to 66 per cent of 4,252 of the survey respondents. Government support is ranked the second main factor (26 per cent). Overall, 21 per cent of respondents cited competence as the main factor, while 20 per cent cited seniority.

The JIU makes three recommendations in the report to improve recruitment, placement and promotion policies and procedures. In its first recommendation, the Unit states that the Secretary-General should take urgent measures to review and improve all personnel policies and procedures, with special emphasis on the authority of the Office of Human Resources Management to enforce recruitment, placement and promotion policies through the Secretariat. The Secretary-General should also ban the practices of granting temporary appointments at the P-2 and P-3 levels for periods longer than three months (if they were not related to replacement of staff serving on missions) and extending or renewing those temporary appointments over the three-month period.

Other measures proposed in the first recommendation include that the Secretary-General should ensure strict implementation of the policy that entry-level appointments are made exclusively through competitive examinations and through G to P promotion; and forbid the so-called "regularization" of temporary contracts. In addition, the Secretary-General should ban the practice of placing staff members on vacant posts which are at a higher level for more than three months -- except in case of staff on mission, and consider staff members placed on these posts for longer periods as non-eligible for promotion against them.

In addition, the recommendation calls on the Secretary-General to cancel all provisions giving automatic preferences either in recruitment, placement or promotion based on gender; ensure strict application of requirements concerning education standards in recruitment for posts in the Professional category; and introduce specific criteria for accelerated promotion.

Addressing career development, the JIU stresses that it "has to be considered one of the most disappointing administrative policy efforts in the United Nations history". Consequently, in its second recommendation, the Unit states that the Secretary-General should explain to the Assembly why a career development system has neither been put in place nor has been included in the proposed medium-term plan for the period 1998-2001. The Secretary-General should also inform the Assembly on what policies, staffing and programmes will replace a comprehensive career development system, with time-limited objectives for achieving those actions.

According to the report, other deficiencies of the current system include the lack of encouragement of mobility; the difficulty of the appointment and promotion bodies to appraise a candidate's technical

Fifth Committee - 4 - Press Release GA/AB/3119 33rd Meeting (AM) 27 November 1996

proficiency since those bodies are not composed along occupational lines; and the lack of consultative/conciliatory or resolution procedures to deal with cases of conflicting recommendations made by field appointment and promotion committees, the Appointment and Promotion Boards and/or programme managers.

Noting the high number of placement and promotion-related grievances and the proportion of decisions by the internal justice bodies in appellants' favour, the JIU states that it is the Organization, not the respective managers, that is paying the price, including financial compensation. In that connection, there has to be a systematic programme of action to ensure that programme managers play their critical leadership role in developing a new management culture and increasing transparency.

Therefore, in its third and final recommendation on placement and promotion policies, the JIU states that the Secretary-General should issue a specific guidance to clearly establish responsibility and accountability of programme managers for proper use of human resources as well as sanctions for non-performance. Those sanctions should include reimbursement in accordance with the relevant Staff Rule (112.3) for any financial loss suffered by the Organization as a result of gross negligence, such as improper motivation, wilful violation, or reckless disregard of Staff Rules and Regulations and established policies regulating recruitment, placement and promotion.

Statements on Peace-keeping Financing

ANA SILVIA RODRIGUEZ ABASCAL (Cuba) said that the agenda item contained many important issues requiring scrupulous scrutiny by Member States. The Organization's current financial situation also had an adverse effect on peace-keeping operations, in particular on the troop- and equipment- contributing States that were developing countries. The solution to the problems lay in the full and timely payment of assessments without conditions. That was why Cuba rejected the unilateral decision of the major contributor to cut its peace-keeping assessment rate to 25 per cent, from above 30 per cent. That action had affected troop-contributing States.

She expressed concern about the wide use of the gratis officers, which departed from provisions of the United Nations Charter that had spelt out the international character the officials of the Organization should have. The use of such personnel, mostly from the developed countries, meant that both the geographical and the political balance were tilted. She expressed concern about the effect of those officers on the morale of regular United Nations staff. The Secretariat should assess the personnel needs of the Department of Peace-keeping Operations and submit proposals in the context of the next submission of the support account for peace-keeping operations. She expressed regret that the report on the gratis officers was published late. Therefore, the Secretariat should freeze the use of such officers at existing levels, pending the consideration of the issue by the Assembly. She supported the proposal by Zambia that it be moved from group "c" to "d" of Member States assessed at lower rates for peace-keeping operations.

ZEE YOONG KANG (Singapore) said that the current ad hoc system of paying

Fifth Committee - 5 - Press Release GA/AB/3119 33rd Meeting (AM) 27 November 1996

compensation for death and disability, which gave some troop-contributing States more than 20 times the amounts paid to others was a serious departure from the principle of equal treatment of Member States. It was alarming that more than 70 per cent of the fatalities in 1995 were sustained by contingents from the less developed nations. "I am not suggesting that this is due to the current system of death and disability benefits, or that troops from developing countries have been deliberately deployed for the more dangerous activities. However, death and disability benefits should not be such as to make it systematically less costly for some contingents to undertake the more hazardous operations. This, unfortunately, is one feature of our current system of death and disability benefits."

The representative said that the gap between the highest and lowest rates of compensation should be narrowed. He endorsed the position of the Non-Aligned Movement that the United Nations should move towards a uniform scale of benefits. If Member States were not able to agree on a uniform scale for benefits, a way out would be to consider alternatives involving a uniform rate plus a small, variable component reflecting cost differences between States. Option 2 as proposed in a report of the Secretary-General could serve as an interim measure, while the establishment of a uniform scale was being considered.

The burden of compensation should be borne by the United Nations, not by commercial insurers, he said. On the issue of gratis officers, he said that such personnel should not excessively outnumber regular budget officers or those financed by the support account for peace-keeping missions. The principle of equitable geographical representation should also be taken into account. The Committee should act as soon as possible on the requests of the Czech Republic and Slovakia to be moved to a group of Member States that were charged at lower rates for peace-keeping missions. Zambia's similar request should be acted on quickly.

MIAN NADEEM IJAZ AHMAD (Pakistan) said that the Secretary-General's report on loaned personnel had been issued only on Monday, even though it had been requested years ago. The delay in submitting the report should not prevent the Committee from discussing it in the current session, after receiving the views of the Advisory Committee on Administrative and Budgetary Questions (ACABQ).

DJAMMEL MOKTEFI (Algeria) said he had been astonished by the contents of the report on loaned officers. He said that paragraph 3 had called attention to some of the implications of their use. [Note: The paragraph calls attention to the status and accountability of gratis personnel, financial implications and related budgetary and financial issues, as well as implications for personnel policies, including geographical balance in the Secretariat. Particular emphasis was placed on the need for the establishment of uniform policies to guide the acceptance of such personnel and their utilization. Special attention was given to the importance of preserving the exclusively international character of the responsibilities of the Secretariat.]

Fifth Committee - 6 - Press Release GA/AB/3119 33rd Meeting (AM) 27 November 1996

The Committee should look at the issue seriously and efforts should be made to limit the use of such officers during this session of the Fifth Committee, he said.

NGONI FRANCIS SENGWE (Zimbabwe), the Chairman of the Committee, said that the report had not yet been considered by the ACABQ.

PATRICK KELLY (Ireland) said that the report required very careful consideration by Member States. The European Union would insist that the proper procedures be followed in considering it, including the formal submission of both the report and that of the ACABQ to the Committee.

CHOU FEI (China) supported the view expressed by Pakistan. Since the matter was very urgent, it should be addressed as soon as possible. He supported the request by Zambia for relegation from group "c" to "d".

MUHAMMAD LAWAL SULAIMAN (Nigeria) supported the proposal made by Pakistan.

NESTER ODAGA-JALOMAYO (Uganda) expressed support for the view by Ireland. The Chairman of the Committee should ensure that the processes mentioned by the Irish representative were followed swiftly.

Mr. MOKTEFI (Algeria) said that, since the document had been published, his delegation had the right to make some comments and call particular attention to it. His statement would not affect the Committee's procedure since it was merely the expression of concern by a delegation.

AMR NOUR (Egypt) said that the report on the loaned staff should be considered seriously and quickly. The ACABQ should present its report to allow the Assembly to settle the issue once and for all.

ALBERT MUCHANGA (Zambia) expressed appreciation for the support declared for his delegation's request to be moved from group "c" to group "d". He asked how the matter would be taken further to ensure that the relegation would be disposed of at this session.

AHMED FARID (Saudi Arabia) said he supported the views of Egypt, Pakistan, Uganda and Algeria on the issue of loaned officers.

Mr. SENGWE (Zimbabwe), Committee Chairman, said the views expressed by Member States would be forwarded to the Chairman of the ACABQ. The issue of gratis military officers would be taken up as soon as the ACABQ's report was made available to the Committee.

YUKIO TAKASU, United Nations Controller, informed the Committee that he had responded in writing to all their questions on administrative and budgetary aspects of the financing of peace-keeping operations. The document had been circulated to Committee members.

GABRIELLE DUSCHNER (Canada) asked for clarification on the issue of the

Fifth Committee - 7 - Press Release GA/AB/3119 33rd Meeting (AM) 27 November 1996

cost of travel of the gratis military officers. She asked whether the costs would not have been incurred if the officers were not in the Organization. She also asked about an issue related to contingent-owned equipment.

NESTER ODAGA-JALOMAYO (Uganda) said the questions he had asked on the gratis military officers had not been answered satisfactorily. He again asked about the progress on the implementation of the North Atlantic Treaty Organization (NATO) codification system for inventory control. He also asked for more information on the transfer of assets of liquidated missions.

Mr. SENGWE (Zimbabwe), Committee Chairman, said the responses would have to be provided by experts in the Department of Peace-keeping Operations at a later date.

Statements on 1996-1997 Programme Budget

Mr. SENGWE (Zimbabwe), Committee Chairman, proposed that the Fifth Committee recommend that the Assembly adopt a draft decision on the revised estimates resulting from Economic and Social Council resolutions and decisions.

By the draft decision, the Assembly would be asked to take note of the estimate of $501,000 under section 13 (Crime control) and of $595,200 under section 14 (International drug control). Such action would be taken on the understanding that such additional appropriations, as may be necessary, would be determined in accordance with the procedures for the use and operation of the contingency fund, taking into account the results of the first performance report on the budget for the 1996-1997 biennium.

DONALD GELBER (United States) said, having considered the language of the draft decision, he could not at this time agree to it. He urged that the draft text be considered together with all the programme budget implications from the Main Committees and other necessary information on the budget so that the Fifth Committee could make an appropriate judgement on the matter. The Organization must live within Assembly resolution 50/215 (which contains the 1996-1997 budget) and the Committee should not take any action that ran counter to that resolution. The issue was not the contingency fund.

Mr. ODAGA-JALOMAYO (Uganda), welcoming the draft decision, said he had no problem with approving the draft decision. In view of the statement by the United States delegation, he could look at the text again. However, he cautioned that resolution 50/215 should not be looked at in isolation. "I don't know what kind of Macarena we are dancing now." What the Committee had to bear in mind was that both budget resolutions -- 50/215 and 50/214 -- had to be considered together. The Committee's action should take account of resolution 41/213 (on the budgetary process) and all aspects of resolution 50/215. Therefore, the draft decision was not very far from the reality. He expressed the hope that the decision would be approved.

Ms. RODRIGUEZ ABASCAL (Cuba) said "the Fifth Committee was dancing its own Macarena". She agreed with the comments of Uganda's representative. The

Fifth Committee - 8 - Press Release GA/AB/3119 33rd Meeting (AM) 27 November 1996

Committee should respect the established budgetary procedures and use the contingency fund for the Economic and Social Council revised estimates. There was no need to await the first performance report before using the contingency fund.

Regarding the programme budget implications from the Assembly's Main Committees, she recalled that the Assembly's President had asked all the Main Committees to meet a deadline for the completion of their work. Delays in the approval of programme budget implications would hold up the Main Committees' work. In that connection, she asked when the first performance report would be ready. Since there was general agreement on the use of the contingency fund, the Fifth Committee was in a position to approve the draft text based on the guidelines for the use of the contingency fund.

Mr. SENGWE (Zimbabwe), Committee Chairman, said the deadline for all the Main Committees to conclude their work was 17 December. Therefore, "the stakes were high for the Fifth Committee to complete its work".

MARTA PENA (Mexico) said her delegation saw no problem in the Committee approving the draft decision before it. It was surprising that the Fifth Committee could not take action which merely took note of the revised estimates. In the light of the Controller's comments on the difference between the programme budget implications and revised estimates, it was paradoxical that the Assembly faced the present situation.

It was to be noted that one delegation could adopt an attitude which would cause delays in the Assembly's work which would result in more expenses for the Organization, she continued. She wondered how much the delays in the approval of programme budget implications would cost the Organization. She expressed unease with the situation and said she was ready to consider a compromise solution which would respect the budgetary procedures, as stated in resolutions 41/213 and 42/211. Those were the most appropriate regulations to guide the Assembly in those matters.

Mr. SENGWE (Zimbabwe), Committee Chairman, said since there were existing regulations for financial procedures and on the difference between a programme budget implication and revised estimates, the Committee should not begin to make linkages with other aspects of the budgetary process. It should follow the financial procedures faithfully.

AMR NOUR (Eygpt) said he supported the draft decision and was surprised about the delay in taking action. The action would respect resolution 41/213.

SAM HANSON (Canada) said the Controller had pointed out the difference between programme budget implications and revised estimates. It was fortunate that the Economic and Social Council was not awaiting the Fifth Committee's approval to take its decision. He welcomed the draft decision. Since it would have the Committee take note of the revised estimates, he did not object to it. It should be approved.

CHEN YUE (China) said she supported previous delegations who supported

Fifth Committee - 9 - Press Release GA/AB/3119 33rd Meeting (AM) 27 November 1996

the draft decision and had no problem accepting it.

PATRICK KELLY (Ireland) said the European Union had no difficulty in taking a decision on the revised estimates.

Mr. SENGWE (Zimbabwe), Committee Chairman, asked the United States delegate if he had anything to add since the other delegations were overwhelmingly supporting the action proposed. He did not want to put the delegate on the spot "but it was inevitable".

Mr. GELBER (United States) said the Committee was looking at a matter that would result in the $2.608 million 1996-1997 budget being exceeded. He understood that other delegations had a different attitude to that issue. However, he would be remiss if he did not alert them to the results of such action. Since his country's laws prohibited him from taking such action, he would disassociate himself from the decision if it were taken.

Mr. SENGWE (Zimbabwe), Committee Chairman, noted that the delegate had said he would not be a part of the consensus but would not object to the action being taken. The Committee would therefore proceed to take action on the draft text.

Mr. GELBER (United States) said he wanted the record to show that he had disassociated himself from the action that was about to be taken.

JAMES JONAH (Sierra Leone) said, in view of the United States comments, he would support the approval of the draft decision.

KLAUS-DIETER STEIN (Germany), Committee Vice-Chairman, said, as coordinator of the agenda item, he was concerned about the development in the Committee regarding the budget. It was a really complex issue which the Committee would have to steer through. He did not want to see the emergence of a climate that would make that task more difficult than it already was. Although he wanted action to be taken on the draft decision now, he had noted the Canadian delegate's statement that the decision was not being awaited by a committee. That meant that there was still a chance for a consensus at a later stage. He called for a deferral of action on the decision so that a consensus could be reached.

Mr. SENGWE (Zimbabwe), Committee Chairman, reminded the German delegate that only three weeks remained for the Assembly to conclude its work. Time was running out.

Mr. ODAGA-JALOMAYO (Uganda) asked for clarification as to whether the Economic and Social Council resolutions and decisions had already been adopted by the Assembly, and if not, when they would be adopted.

FUMIAKI TOYA (Japan) said, although he supported the programmes in sections 13 and 14 of the budget, he would like to support Germany's position that the Committee should reach a consensus on the draft decision.

Fifth Committee - 10 - Press Release GA/AB/3119 33rd Meeting (AM) 27 November 1996

Ms. PENA (Mexico) said she still could not understand what was happening. The text of the draft decision did not call for a final position. It only took note of the revised estimates. She failed to grasp the reasons for not approving it. She asked the Secretariat to answer Uganda's questions. The United States' delegate did not oppose the use of the contingency fund but he had said that the appropriation for the biennium should not be exceeded. That delegate should shed some light on the matter so that the Committee could understand the logic of what was happening this morning.

Mr. JONAH (Sierra Leone) said, since he had been away for two years, he was at a loss as to what was occurring regarding the decision. He recalled that, in the past, when a Committee Chairman made a proposal, Member States, out of courtesy, would respond positively to it. The Committee must bear in mind that to allow one or two Member States to hold up a process was a trend that could be damaging to the United Nations in the long run.

JOSEPH ACAKPO-SATCHIVI, Committee Secretary, responding to Uganda's questions as to whether the decisions had already been adopted by the Assembly, said the Economic and Social Council decisions did not go before the Assembly. The final decisions covered by the revised estimates had already been adopted by the Council.

Mr. ODAGA-JALOMAYO (Uganda) said he had taken note of the statement by Canada. The Committee's budgetary procedure was key and should not be changed. The Committee should not waste scarce resources on something that was already a foregone conclusion, that was, the decisions of the Economic and Social Council. The Fifth Committee, as a financial watchdog, should be keen about saving the Organization's resources. The veto power conferred on Member States by the consensus-seeking procedures of the Fifth Committee should not be overused.

Ms. RODRIGUEZ ABASCAL (Cuba) said that information from the Committee's Secretary had clarified the situation. It was not up to the Fifth Committee to contest the decisions of the Economic and Social Council, which was a principal organ of the United Nations. The Fifth Committee should not contest or question the decisions already taken by the Economic and Social Council. Not even the Council could contest the decisions it had already taken. She supported the view expressed by Sierra Leone.

ESPEN RONNEBERG (Marshall Islands) supported the view expressed by the representative of Sierra Leone. He found it surprising that such a large delegation was not able to keep track of various decisions regarding the budget. He supported the draft decision proposed by the Chairman.

AURELIO IRAGORRI (Colombia) said that the question before the Committee was whether to approve the draft decision or to defer it. The position of the United States should be taken into account as the view of a Member State. The Fifth Committee might have to be involved in decisions of other Main Committees that had budgetary implications. Ultimately, the Secretariat might

Fifth Committee - 11 - Press Release GA/AB/3119 33rd Meeting (AM) 27 November 1996

be asked to absorb the additional costs only to be asked later to explain why some programmes had not been implemented fully. The Secretariat could not be expected to continue absorbing new demands without being given more resources. The Assembly might have to revise or change programmes by itself, absolving the Secretariat of the need to do so.

JOSE ANTONIO MARCONDES DE CARVALHO (Brazil) said he understood that the United States would not block a decision. Therefore, the Committee could go ahead and decide on the issue.

Mr. SENGWE (Zimbabwe), the Chairman of the Committee, presented the draft decision.

The Committee approved it without a vote.

Statements on International Seabed Authority's Budget

Mr. GELBER (United States) said that the budget should be referred to informal consultations to facilitate the clarification of some matters and for a review of the financial arrangements being made for the International Seabed Authority. There were some discrepancies between some of the documents on the budget which should be clarified.

SHEILA SEALY MONTEITH (Jamaica) said that provisions for the Authority for 1996 had been absorbed in the regular budget of the United Nations. But provisions for the Authority for 1997 had not been made in the regular budget. With the elections of a secretary-general for the Authority this year, a modest budget for the Authority had been proposed, which had been scrutinized by the ACABQ. The Fifth Committee should approve the budget of about $4.2 million for the Authority. She expressed the hope that the administrative expenses would be provided from the contingency fund.

Mr. RONNEBERG (Marshall Islands) supported the statement by Jamaica and the budget proposed by the Authority. The year 1997 would be critical, as it would be the last in which the International Seabed Authority would be funded from the United Nations regular budget, and also the year in which it would start substantive work. The budget proposed would allow the body to start a minimum of its substantive work. He endorsed the Secretary-General's advice that provisions for conference-servicing costs would be absorbed into the United Nations budget. He supported the use of the contingency fund to meet the 1997 expenses. The budget should be approved without delay to avoid negative consequences for the International Seabed Authority.

PRAYONO ATIYANTO (Indonesia) said he supported his Jamaican colleague.

FUMIAKI TOYA (Japan) said he had noted that the conference-servicing costs would be absorbed in the United Nations budget and that the Authority's overall budget had been reduced. The Authority's budget should be accorded high priority.

SYED RAFIQUL ALOM (Bangladesh) endorsed the International Seabed

Fifth Committee - 12 - Press Release GA/AB/3119 33rd Meeting (AM) 27 November 1996

Authority's budget. He did not object to the request for substantial negotiations on the matter, which he would join on the understanding that the budget amounts would be approved as submitted.

MARY JO ARAGON (Philippines) supported the budget proposals, as recommended by the ACABQ and Jamaica's statement.

Ms. RODRIGUEZ ABASCAL (Cuba) fully supported Jamaica.

RADHIA ACHOURI (Tunisia) said that the Seabed Authority's budget was to be funded by the United Nations until the end of 1997. She supported the recommendations of the ACABQ that the Assembly approve the proposed $2,750,500 for the administrative expenses of the Authority for the period 1 January to 31 December 1997.

HENRIETTA RIECK (Germany) expressed support for the approval of the Seabed Authority's budget, as recommended by the ACABQ. She recalled that the General Assembly had decided to fund the Seabed Authority until the end of 1997.

AKITCH OKOLA (Kenya) said the budget was the result of extensive consultations and some reductions. He reviewed some of the steps and procedures that had been followed in reaching the current proposals. The budget had been approved by the Seabed Authority's Finance Committee and Assembly as a modest proposal. Kenya accepted the recommendations of the ACABQ because the United Nations would, for the first time, be relieving itself of the need to finance all matters related to the Law of the Sea. The Authority would be funded from the assessments of its members States or from what was accrued from sea mining.

HANSON HALL (Ghana) supported the views of Jamaica, Kenya and the recommendations of the ACABQ. The Seabed Authority's budget should be funded from the contingency fund.

CHEN YUE (China) said that the budget would be very important to the Authority's work, especially as 1997 would be the first year of substantive work. The budget should be approved quickly since it had been reduced after taking account of the United Nations current financial crisis. It should be funded from the contingency fund.

Mr. IRAGORRI (Colombia) supported Jamaica's statement. The contingency fund should be used to finance the Authority.

Mr. NOUR (Egypt) supported the views expressed by Jamaica, Kenya and others concerning the ACABQ recommendations.

J.M. GONZALES BUSTOS (Mexico) said there was no need for further in-depth examination of the budget since it had gone through the review of experts, and the ACABQ had approved it. The costs should be borne by the

Fifth Committee - 13 - Press Release GA/AB/3119 33rd Meeting (AM) 27 November 1996

contingency fund.

MILES ARMITAGE (Australia) said he would go along with the ACABQ recommendations. He could also go along with the United States request for further consultations to clarify certain issues. Greater clarity could be ensured during informal consultations. The matter should be resolved early.

ALISON BROOKS (Papua New Guinea) supported the views expressed by Jamaica and the Marshall Islands and the ACABQ recommendations.

DENISE ALMAO (New Zealand) said she supported the approval of the budget of the Authority. The means of financing the budget should be settled quickly to ensure the Authority the funds it needed to work.

JOSEPH INNOCENT (Haiti) supported Jamaica's statement.

P.G. SOAL (South Africa) said he supported a speedy approval of the budget, adding that his delegation served on the Council of the International Seabed Authority.

Mr. GELBER (United States) said that the budget submitted by the Authority proposed $10,000 for general temporary assistance. But the document presented to the Committee had raised that sum to about $163,000. Such changes made clarifications in the informal meetings necessary.

MANOUK SOMAKIAN (Cyprus) backed the ACABQ's recommendations.

ALI SEYE (Senegal) associated his delegation with others who would like to see the budget approved without delay.

Mr. MOKTEFI (Algeria) added his delegation's name to the long list of delegations that had expressed support for the approval of the International Seabed Authority's budget.

YUKIO TAKASU, United Nations Controller, emphasized that the budget was that of an independent, autonomous body with its decision-making processes. The United Nations commitment to fund the budget was based on a 1994 Assembly resolution, a commitment that would be ending in 1997. On the issue of the cost of general temporary assistance, he said the document before the Committee was the final version of the budget which had been reduced by the Finance Committee of the Authority to some $4.2 million. He explained how the financial proposals for general temporary assistance were arrived at.

Mr. SENGWE (Zimbabwe), the Chairman of the Committee, said that the matter would be discussed in informal consultations in the context of the 1996-1997 United Nations regular budget.

Statements on United Nations Common System

MARTHA MONTANO (Bolivia), speaking on behalf of the Rio Group -- Brazil, Chile, Colombia, Costa Rica (on behalf of Central American countries),

Fifth Committee - 14 - Press Release GA/AB/3119 33rd Meeting (AM) 27 November 1996

Ecuador, Mexico, Panama, Paraguay, Peru, Uruguay and Venezuela -- welcomed the report of the International Civil Service Commission (ICSC). She noted that three ICSC reports were being considered at the current session -- the 1995 report and its addenda and the 1996 report. The most important issue to the Rio Group was the analysis and the applicability of the Noblemaire principle. Its importance demanded detailed analysis. Undoubtedly the Commission had taken the study seriously. One could not question the methodology of the report on the matter. The Commission had been asked to review the method of calculating the margin.

Reviewing the reasons for the analysis of the Noblemaire principle, she stressed the urgency of the study as requested by Member States. It was a clear request to ensure the competitivity of the common system. As a result, in its 1995 report, the ICSC had made a recommendation for an increase in the salaries of Professional and higher categories of staff, which had been updated in 1996 to a 4.1 per cent increase in net remuneration for that category of staff. There was widespread unease in the common system at this time when organizations faced financial constraints. The Administrative Committee on Coordination (ACC) had repeatedly stressed the need to review the remuneration of Professional staff. The lack of competitivity of the remuneration could result in withdrawals from the common system. She cited the most recent case, that of the World Trade Organization.

She noted the problems that the comparator (the United States civil service) had faced in its own remuneration packages. Gaps had developed between their remuneration and those dictated by the market. That gap had continued to increase by about 30 per cent country wide -- 31 per cent for Washington, D.C. and 40 per cent in New York. The comparator therefore had access to the lowest 20 per cent of its labour market. The ICSC was faced with the problem of looking at better potential comparators.

Regarding the base/floor salary scale, she said there was a lag of 26 months between the common system's existing scale and that of the comparator. The Assembly must take a decision now to avoid a greater lag and to maintain the relationship between the comparator's remuneration and that of the common system. Referring to other aspects of the 1996 ICSC report, she said she had no objection to the recommendations on the dependency allowance and the education grant.

She regretted that the representatives of the staff associations had not rejoined the ICSC's work. All the concerned parties would gain by active staff participation in the Commission's sessions. She requested that the Commission facilitate the staff's participation and urged the staff associations to resume their participation.

TAREK SHARAF, President of the Coordinating Committee for Independent Staff Unions and Associations (CCISUA), addressed the issues of the independence, security and survival of the international civil service and the relationship with the ICSC. Citing Articles 100 and 101 of the United Nations Charter, which govern the international civil service, he said that the main element of independence and undivided loyalty was the source of entitlement

Fifth Committee - 15 - Press Release GA/AB/3119 33rd Meeting (AM) 27 November 1996

-- which must be the United Nations alone. Therefore, it was necessary to curb the tendency towards secondment of staff by governments to the United Nations system and to stop additional subsidies by governments to international civil servants.

Regarding security, he stressed the importance of job security within the Organization. It was the duty of staff representatives to protect staff interests, including job security and the preservation of entitlement. He appealed to the Fifth Committee to defend "our jobs, our families and our future", not only out of humanitarian consideration but rather because of the real and genuine importance of the United Nations in its supreme role as guarantor of international peace and security.

He asked what would have been the result of crises in places like the Middle East, Mozambique, Somalia and Bosnia and Herzegovina without United Nations staff members. The staff had served diligently, honestly and enthusiastically day and night "in the heat of the desert and the swamps of the jungle" and even in the jungle of the big cities like New York or the expensive cities like Geneva, Paris and Vienna. The staff's purchasing power had dwindled by 18 per cent over the last 10 years -- one fifth of its earnings. It had not complained.

The mandate given to the Secretariat to identify possible savings in the 1996-1997 budget had been translated into directives for the present biennium and for the proposed 1998-1999 budget, he said. The effect of such interpretation on the staff's morale had been catastrophic. The proposed reduction reflected a 11.8 per cent reduction in posts. Abolition of posts was the prerogative of the Assembly alone. In that connection, he saluted the efforts of the Fifth Committee and the ACABQ in helping the threatened staff members. It would be extremely difficult to restore staff morale. The CCISUA had followed with apprehension and misgivings the efforts of the World Trade Organization to stay out of the common system.

Regarding relations with the ICSC, he reviewed the chain of events leading to the breakdown of the consultation process in 1995. The Commission had insisted on maintaining a comparator that it had admitted was not the best. Staff had felt powerless to object to decisions affecting their conditions of employment. Technical considerations had not been taken into account. In that connection, he said the sanctions against staff members had now become a recurring affair. He cited the case of the First Vice-President of the New York Staff Committee who had been issued a written reprimand when the Assistant Secretary-General for Conference and Support Services disagreed with the contents of a newsletter.

Recalling recent developments related to the consultative process, he said the Coordinating Committee was apprehensive that without the Fifth Committee's intervention there would be no change of the Commission's attitude. They counted on the Fifth Committee to restore the situation.

WAYNE DIXON, President of the Federation of International Civil Servants Associations (FICSA), speaking on behalf of its 30,00O members, said his body

Fifth Committee - 16 - Press Release GA/AB/3119 33rd Meeting (AM) 27 November 1996

was asking the Fifth Committee to give serious consideration to its proposal for a workable alternative to the current consultative process. The Commission's statutory role as a regulatory body precluded genuine consultation with its partners. The FICSA's proposal addressed that structural anomaly.

The Federation fully supported a common system of terms and conditions of service within the United Nations organizations to ensure their effective functioning. The distinctive needs of the specialized agencies required equal consideration. "A functioning system must not neglect any of its constituent parts."

He said in recent months several initiatives taken by the United Nations administration in New York appeared to have been efforts to circumvent the collegiality of the system. He expressed concern at such actions as proposed revisions to the Code of Conduct for International Civil Servants by the United Nations administration without consultation with representatives of the specialized agencies and technical programmes. The Code of Conduct, which was established in 1954 and reaffirmed at the common system level in 1982, was and should remain a common system issue.

Other actions of concern were the proposed modification of the functioning of the United Nations Administrative Tribunal without consultation with the International Civil Aviation Organization (ICAO) and the International Maritime Organization (IMO), two specialized agencies served by the Tribunal, he continued. With regard to the consultative process, the view had been put forward that the Fifth Committee should limit itself to the priorities set by and the needs identified by the Organization's administration in New York. The downsizing of the Organization had been made solely to cut costs, which indicated that the Assembly's mandate to make savings had been misguidedly interpreted as an instruction to downsize.

The present financial constraints had led organizations to look increasingly inward to address their own difficulties, he continued. He cautioned that the system must guard against making decisions from that protectionist position. He cited the recent decision by the Director-General of the United Nations Educational, Scientific and Cultural Organization (UNESCO) to apply a post adjustment index which was at variance with the common system methodology. It was the international civil service in its entirety that was seeking to respond to the challenges posed by Member States, rather than each organization going its own way.

He stressed that full consultation was required throughout the system, amongst Member States, representatives of the organizations and inter-agency bodies with the full participation of staff. The "small international public service will not survive into the twenty-first century unless we open new channels of communication and collaboration". He requested a meeting early next year with representatives of the Fifth Committee and the administrations to exchange views on issues of mutual concern.

* *** *

Fifth Committee - 17 - Press Release GA/AB/3119 33rd Meeting (AM) 27 November 1996