FIFTH COMMITTEE ALLOCATES $242 MILLION TO PEACE-KEEPING MISSIONS IN FORMER YUGOSLAVIA FOR FIRST HALF OF 1997

Press Release
GA/AB/3123

FIFTH COMMITTEE ALLOCATES $242 MILLION TO PEACE-KEEPING MISSIONS IN FORMER YUGOSLAVIA FOR FIRST HALF OF 1997

The General Assembly would appropriate and apportion almost $242 million gross to maintain three peace-keeping missions in the former Yugoslavia for the first half of 1997, if it adopts three draft resolutions approved without a vote this morning by its Fifth Committee (Administrative and Budgetary).

The sum would be an addition to the $242.5 million in total appropriations granted last June to those operations for the period from July to December. The missions are the United Nations Transitional Administration for Eastern Slavonia, Baranja and Western Sirmium (UNTAES), United Nations Mission in Bosnia and Herzegovina (UNMIBH) and the United Nations Preventive Deployment Force (UNPREDEP).

According to the drafts, the Assembly would appropriate:

-- $140.5 million gross ($136.1 million net) for UNTAES; -- $75.6 million gross ($72.2 million net) for UNMIBH; and -- $25.4 million gross ($24.6 million net) for UNPREDEP.

Speaking in explanation of position after the texts' approval, Germany's representative said that those amounts would not be covered fully by Member States contributions since one country had announced that it would cut what it gave missions to a level it found convenient. That unilateral action would worsen the Organization's difficult cash-flow situation and jeopardize peace- keeping missions.

The drafts were introduced by Armenia's representative, who had conducted informal negotiations on them.

Also this morning, the Committee took up the Secretary-General's report on the ratio between career and fixed-term appointments, under the agenda item on human resources management. It also discussed the United Nations common and pension systems.

Speaking on the common system, the representative of the United States rejected the pay increases recommended for United Nations staff, stating that they had been based on an inappropriate methodology used by the International Civil Service Commission (ICSC). Moreover, the increases would cost some $16 million which would have to be found by cutting United Nations programmes. "This means staff would be paid more to do less", he added.

Expressing his view on the pension system, the representative of the Russian Federation said that the proposed Agreement between his country and the United Nations Joint Staff Pension Board was meant to partially restore the pension rights of some former Fund participants affected by the 1981 Transfer Agreements between the Fund and the former Soviet Union, the Ukrainian SSR and the Byelorussian SSR. It was a first step which would be followed by others.

Statements on the common and the pension systems were also made by Sierra Leone, Australia, Guyana, Ukraine, Bahamas, Colombia and Latvia.

Speaking on the ratio between career and fixed-term appointments, Germany's representative said that candidates from the "G to P" and the national competitive examinations should be treated equally in the granting of permanent contracts. In other words, successful General Service staff should not become Professionals with their permanent contracts intact, a benefit they should earn in the Professional category.

The representatives of the Russian Federation, United States, Japan and New Zealand also spoke on the matter.

The Assistant Secretary-General for Human Resources Management, Denis Halliday, introduced the report on the ratio between career and fixed-term employment.

The Committee is scheduled to meet again at 3:00 p.m., on Wednesday, 11 December, to continue discussing the United Nations common and pension systems and take up several new items. The meeting is expected to hear a statement by Under-Secretary-General for Administration and Management, Joseph E. Connor, on the United Nations financial situation and then take up several financial reports. Those include the first performance report on the 1996- 1997 budget, the outline for the proposed 1998-1999 budget and reports on the financing of the International Tribunals for the Former Yugoslavia and for Rwanda, and of the United Nations Angola Verification Mission (UNAVEM III). It is also scheduled to consider procurement reforms in the Secretariat and the budgetary implications of some draft resolutions before the Assembly.

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Committee Work Programme

The Fifth Committee (Administrative and Budgetary) met this morning to take action on three draft resolutions on the financing of the United Nations Transitional Administration for Eastern Slavonia, Baranja and Western Sirmium (UNTAES), United Nations Mission in Bosnia and Herzegovina (UNMIBH) and the United Nations Disengagement Observer Force (UNDOF). The Committee was also expected to continue discussion on the United Nations common and pension systems, and human resources management under which a new report would be introduced.

Financing of UNMIBH, UNTAES and UNPREDEP

The draft resolution on the financing of UNMIBH (document A/C.5/51/L.12) would have the General Assembly appropriate $75.6 million gross ($72.2 million net) for the 12-month period from 1 July 1996 to 30 June 1997 and apportion it on an ad hoc basis at a monthly rate of $12.6 million gross ($12 million net) should the Security Council extend the mission beyond 20 December. The amount -- which includes $1.9 million for the support account for peace- keeping operations -- would be an addition to the $75.6 million gross ($72.2 million net) appropriated and assessed last June for the rest of 1996.

The draft text on UNTAES (document A/C.5/51/L.11) would have the Assembly appropriate $140.5 million gross ($136.1 million net) and apportion it on an ad hoc basis for the same 12-month period. The sum -- which includes $3.4 million for the support account -- would be an addition to the $140.5 million gross ($136.1 million net) appropriated and assessed last June for the rest of 1996. By the terms of the draft on the United Nations Preventive Deployment Force (UNPREDEP) (document A/C.5/51/L.13), the Assembly would appropriate $25.4 million gross ($24.6 million net) for the mission for the period from 1 July 1996 to 30 June 1997. The sum would be apportioned on an ad hoc basis at a monthly rate of $4.2 million gross ($4.1 million net), should the Council extend the Force beyond 31 May 1997. The appropriation -- which includes $632,400 for the support account -- would be an addition to the $26.3 million gross ($25.5 million net) previously appropriated for the second half of 1996. Human Resources Management A report by the Secretary-General on the ratio between career and fixed- term appointments (document A/C.5/51/34) proposes three possible approaches, which could be adopted individually or in combination, to address the question of proportion of the two types of appointments in the Organization. He suggests that, in order to rationalize the current system of appointments and make it responsive to budgetary constraints, the Assembly may wish to establish an overall limit on the number of career appointments that would be directly related to the expected long-term resources of the Organization.

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That proposal is one of three suggested by the Secretary-General with no change to the existing types or conditions of appointments, the report states. The Assembly may wish to establish the proportion of career appointments on the basis of the number of established posts in the regular budget, so as to relate to the long-term resources of the Organization, the overall number of long-term contractual commitments given to staff members. Within that limit, most staff members would be placed against regular budget posts; a smaller number would continue to be placed against extrabudgetary posts when consistent with the nature of the functions and the funding of the post in question.

The second proposal would call for Assembly resolution 37/126 (by which the Assembly decided that staff members on fixed-term appointments were to be considered for a career appointment after five years of continuing good service) to be clarified to specify an additional criteria that would entitle staff members to be considered for conversion to career appointment -- when the work and functions to be performed are of a continuing nature. If the Assembly decides to set a desirable proportion as in the first proposal, resolution 37/126 should be further elaborated to specify that the number of career appointments should not exceed the resulting overall limit.

By his third proposal the Secretary-General recommends the introduction of a dual-track system of career and non-career appointments with new types of appointments better suited than the existing ones to the present and future needs of the Organization. One track would lead to a career with the Organization; the other would not. A dual-track system would make a distinction among all of those situations, and would permit each staff member to have a status reflecting more accurately than is at present possible, his or her true career expectations.

Newly-recruited staff placed directly on the career track would receive an initial pre-career appointment for a duration of up to two years with an expectancy of renewal for another three years, subject to performance meeting the requisite standards, says the report. Mobility would also be encouraged across occupational groups for those staff members having the necessary qualifications and experience. Subject to performance and the needs of the Organization, the pre-career appointment would be converted to a career/permanent appointment that would have no expiry date and would not change, provided that the performance of that staff member remained at or above the requisite level.

Entry-level Professional staff as well as Professional staff at higher levels would be placed on the career track, the report states. For the General Service and related staff, there would be no initial career track appointment, but movement to the career track would be considered based on the achievement of the standards of performance set by the Organization, the performance of continuing core functions, and subject to the proportion of

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career staff and the number of regular budget posts. The non-career track would be used for staff who are recruited to perform work of a non-continuing nature or services limited by reason of their funding, the expected time of delivery or completion or other factors.

It is the view of the Secretary-General that in the long term, the dual- track system would reinforce and refocus the concept of career service, and introduce for the future, a framework that would enhance the career international civil service by making it more responsive to ongoing mandates and programme needs. That approach would allow for a more effective application of the applicable standards of performance and a better management of human resources. It would have enough flexibility to ensure that the present and future needs of the Organization and its constraints are taken into account, while protecting the legitimate rights and expectations of the staff. The report states that the concept of career service was adopted by the Organization from its inception. The Secretary-General is committed to the protection of that concept which is a key factor in ensuring the independence of the international civil service required by the United Nations Charter. However, it has become increasingly difficult to differentiate career from non-career staff on the basis on the type of appointment they hold, since many on "fixed-term" appointments continue to serve the Organization for extended periods of time. Staff with "career" (permanent and leading to permanent) appointments were expected to serve the Organization for a substantial number of years, as opposed to those on fixed-term appointments who were expected to remain for a limited number of years, says the report. However, as a result of a number of factors, including decisions from the United Nations Administrative Tribunal, staff serving on a fixed-term appointment under the 100 series for five years or more are de facto also on a career track. The 100 series of Staff Rules apply to staff appointed by the Secretary-General, except technical assistance project personnel and staff members on short-term contracts. The 200 series relate to personnel appointed to technical assistance projects. The 300 series of staff rules apply to staff engaged in assignments of limited duration. Data provided in the report show that at 30 June, of the number of staff in the entire Secretariat (15,178) those traditionally associated with "career" appointments total 7,486 -- (6,943 on permanent contracts, 106 on probationary and 437 on indefinite appointments). The number of staff on other appointments, predominantly fixed term, is 7,692 -- (6,184 under the 100 series, 591 under the 200 series, and all others, including the 300 series - 917). The percentage of "career" appointments of the total number of staff is 49.3 per cent. The percentage of all staff potentially on a career track as a result of the provisions of resolution 37/126, including fixed-term staff serving under the 100 series, assuming they meet or will meet the condition of 5 years of good service, is 90.1 per cent.

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The need to ensure a geographical distribution as wide as possible is taken into account in the recruitment of all international staff, in accordance Article 101 of the United Nations Charter and staff regulation 4.1, whether or not the appointment is subject to the application of desirable ranges for each Member State. However, of the total number of staff in the entire Secretariat (15,178), a small fraction of the number -- 17 per cent (2,514) -- represents "staff in posts subject to geographical distribution". The number of those staff members with permanent appointments is 1,809, those on probationary appointments is 97, and 608 are on fixed-term appointments.

The present report has been distributed to staff representative bodies throughout the Secretariat for information pending guidance by the Assembly and its decision on the preferred approach or approaches, says the Secretary- General. Thereafter, staff representative bodies will be consulted on the implementation of the decision taken by the Assembly, to the full extent envisaged by article 8 of the Staff Regulations and chapter VIII of the Staff Rules.

Statement on United Nations Common System JAMES JONAH (Sierra Leone) said in the current highly politicized environment under which the United Nations administrative policy was formulated, approved and implemented, the value of an impartial mechanism like the International Civil Service Commission (ICSC) for the determination of the conditions of service could not be overestimated. It was essential to depoliticize the pay-setting process through the use of a review mechanism which would ensure that both human resource requirements as well as financial realities were given balanced consideration. It was important to have appropriate conditions of service to attract and retain in staff of the highest standards of efficiency, competence and integrity, he said. To meet its objectives, the Organization must ensure that it was equipped with a fair remuneration package. Otherwise, it would doom itself to failure and attract only underqualified personnel or gratis personnel and staff in receipt of supplementary payments. It was important to ensure that the Organization could compete with other international employers for well-qualified internationally mobile personnel. Regarding the recommendations for General Service staff, he said the Committee should agree to them to the extent that they were based on a fair and judicious application of the Flemming principle [which provides for conditions of service based on the best prevailing local conditions]. However, he cautioned that the constant re-examination of the basic principles and their means of application appeared to have created a negative and unstable environment over the last five years. The General Service staff appeared to have been under constant siege resulting in conflict between employer and employee. There was now a need for a period of stability in which the General Service category could look forward to a predictable, consistent and transparent system for determination of their remuneration.

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The Commission's recommendations for dependency allowances and education grant served to maintain the real value of those allowances in the face of changes in external factors including inflation, social security and tax abatement systems, he continued. The cost to the regular budget would be about $0.6 million. They were reasonable and reflected the proper operation of a clear and transparent review system which the Commission had operated since 1990 in a sound and impartial manner. Those maintenance adjustments for 1997 should be supported by the Committee.

The Commission recommendation on the mobility and hardship scheme for internationally recruited staff appeared to be objectively determined, he continued. He would go along with them, as painful as they might be to those directly affected. He called for the Committee to recognize the Commission's technical competence on that and other elements of the 1996 recommendations. Regarding the restoration in 1997 of the desirable mid-point of 115 for the United Nations/United States federal civil service net remuneration margin, he recalled that an Assembly decision in 1985 had resulted in a significant pay freeze for all professionals worldwide from 1984 to 1988 so that the desirable mid-point would have been achieved. It was achieved with a loss in the Organization's competitiveness, he added.

Now that the Commission's 1996 recommendation would lead to an increase in pay, an appropriate recommendation had been made for the second year and in the face of clear political pressure, he said. The Commission had clearly agonized over its own position. What should the Fifth Committee do in the face of those recommendations that had a clear and substantial merit but cost $15 million? he asked. The recommendations had been made at the request of the Assembly. The Commission had clearly demonstrated that other competitors, such as the World Bank, the Organisation for Economic Cooperation and Development (OECD), and another civil service were paying above the comparator civil service in terms of net remuneration. Was the Organization going to continue to fudge the issue and maintain a position of denial? "The latter might appear to be an economical route to take in the short-term, but we can be sure this would be costly in the long term."

He said he would support the Commission's recommendations both for and against the improvement in individual conditions of service since he did not believe in second guessing the Commission. To do so would be to defeat the purpose for which that body had been established. The recommendations were critical to the maintenance of a competent, impartial and effective international civil service as the instrument for effectively executing the wishes of the Member States.

JAMES B. BOND (United States) said that according to the Noblemaire principle which was the basis for salaries for the international civil service, staff salaries should be sufficient to attract candidates from all Member States including the highest-paid nations. To accomplish that, staff

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salaries were set at a level that was 10 to 20 per cent above that of the highest-paid national civil service. Since 1945, the United States civil service had been the comparator for the international civil service. The determination of the net remuneration levels of the comparator civil service was key to establishing the margin, which was the ratio between the international civil service and the comparator. The Commission had used a misrepresentative methodology in making its determination related to the margin, he said. The United States rejected the method that was used by the ICSC on two counts: the weighting of the various United States pay systems and the applicability of bonuses and awards. In the past, the ICSC had previously weighted data to reflect the relative dominance among the pay systems according to the number of people in each pay system. However, it presently wanted to weigh all the systems equally, which distorted net remuneration levels so much that the margin would seem smaller. The new method was not transparent. It also masked reality. Also, the Commission should not have used bonuses and performance awards in determining net remuneration. The representative said that there did not seem to be significant difficulties in hiring and keeping staff in the United Nations system, despite the statement of the Administrative Committee on Coordination (ACC) to the contrary. The ICSC recommendations would increase the current budget by almost $16 million. And, since the $2.61 billion budget ceiling was inviolable, any increases must be met by cuts elsewhere. Since about 70 per cent of the United Nations costs were personnel-related, any personnel cost increases would reduce what was available for programmes. "This means staff would be paid more to do less." The impact of those programmes would decrease if they were cut back, hurting the people they were designed to help and many Member States could not afford increased dues. "We would consider it beyond reason to grant any salary increases based on the use of an inappropriate methodology", he said. Since his Government was facing a serious budget situation, it could not accept spending money where it was not warranted. It rejected the ICSC's recommendation for pay increases since it had been based on inappropriate methodology. Turning to the issue of the 1981 Transfer Agreements between the United Nations Joint Staff Pension Fund and the former Union of Soviet Socialist Republics (USSR) and two of its former Republics, the representative welcomed the progress made between the Russian Government and the Pension Board on the matter. That support was based on an understanding that the proposed Agreement between the two sides was self-contained and would make it clear that the rights granted did not flow from the regulations of the Pension Fund. Limited as it was, the proposed Agreement was an important development in resolving the claims of the former participants concerned. A comprehensive solution covering all affected participants from the former USSR would have been ideal. Steps should be taken to resolve the claims of those not covered by the proposed Agreement and the Governments concerned should resolve the issues bilaterally.

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YEVGUENI DEINEKO (Russian Federation) said that urgent measures should be taken to seek solutions to the differences on pay issues between the ICSC and the United Nations Educational, Scientific and Cultural Organization (UNESCO). The Commission's recommendations on common systems could serve as a good basis for the Committee's discussions. The proposals on the pay of Professional and higher category staff were among the most important of the Commission's recommendations.

But, the Commission's conclusions on the matter had included logical and technical inconsistencies, he continued. The ICSC should consider upgrading the methods it used in determining the comparator's net remuneration. It had indicated that the German civil service was better paid than its United States counterpart. A provision for using the German civil service as a comparator had been included in the discussions segment of the Commission's report and not in the relevant conclusions. The Russian Federation would not accept references to any civil service other than the current comparator -- the United States civil service. It would not like to hear comparisons with the World Bank or the OECD either. The conclusions of the ICSC on other aspects of its report also seemed to escape logic. The Commission had also failed to implement the mandate it had received from the Assembly.

The representative said he was ready to discuss salary increases which were impeccable from technical standpoints or due to problems of hiring. "However, we think it would be a mistake if the General Assembly agreed to rubber stamp technically flawed proposals which are based on obvious methodological manipulations and have multimillion dollar implications." As far as the substance of the Commission recommendations was concerned, "ICSC methodological novelties are groundless and they should not be taken into account in margin calculations", he said.

Turning to the issue of the pension system, the representative supported the income-replacement approach and grossing-up factors for pensionable salaries of staff. As for the development of a common scale of staff assessments, he said that the method used for recording the tax data for the employees in the seven duty stations was technically more precise than the recording of retiree data.

On the issue of the 1981 Transfer Agreements between the United Nations Joint Staff Pension Fund and the former USSR and two of its former Republics, he said that the Assembly's approval was being sought for the proposed Agreement between the Russian Federation and the Pension Board. The proposed Agreement was the result of hard work. The arrangement for partial restoration of pension rights of some former Fund participants could not be seen as a reverse transfer agreement under the Fund's regulations. The arrangement was a good-will gesture on the part of the Russian Federation and was a first step which would be followed by others. It should not be scandalized.

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MILES ARMITAGE (Australia) said that the Commission should simplify the technical method it used in making its recommendations, especially those relating to the pay scales of the United States federal civil service. The ICSC had used elements of margin methodology that distorted the Noblemaire principle.

The representative said he could not separate the issue of remuneration from that of enhanced productivity. In the Australian federal system, across- the-board civil service pay increases must be offset against agency specific productivity or efficiency gains, with the agency being responsible for identifying the offsets. That was separate from the issue of pay for the performance of individuals. A linkage should be made between administrative efficiencies achieved in each agency and the base/floor salary. Enhanced productivity could then be used to reward those within the improved structure. He agreed with the European Union on the need to link pay increases with intensified efforts to improve accountability and responsibility.

In determining the appropriate offsets/linkages to efficiency, Member States must address the question of whether they could afford a pay increase at the present time, he said. There was a need to accept the fact that the resources of the United Nations agencies were under pressure and diminishing, with budgetary discipline being a necessary way of life. "It is therefore not responsible for the managers of the common system, the Member States, to agree to salary increases the United Nations system cannot ultimately afford." However, he was ready to be flexible over the issue. The question of affordability could be addressed by setting a limit on the total amount of money that would be allocated for salary increases. He would have difficulty in accepting any modest increase without that provision, which should be included in the Committee's resolution on the issue. In order to avoid impact of programmes, there should be no increase in the total amount provided for salaries in the biennium.

K. SIMON (Guyana) welcomed the accomplishments of the Secretary-General, the Investments Committee and all others concerned in securing positive returns for the Pension Fund over the past fourteen years. She hoped that favourable consideration would be given to the Board's recommendations regarding staffing in the Investments Committee, which would enable that Committee to function more efficiently.

She referred to the issue of measures for dealing with the financial obligations of a pensioner to his or her spouse that in some cases gave rise to serious hardship, she continued. The issue had been discussed on several occasions by the Pension Board. The strict requirement of confidentiality under one of the Board's rules of procedure had been one factor hampering attempts by national courts to do justice in administering the law with regard to alimony or divorce settlement obligations of former spouses.

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Except for one member, the Board had agreed in principle in its last session that its Standing Committee should consider modifying the relevant rule, she said. The Board had also requested the Standing Committee to pursue at its 1997 session the possibility of having a World Bank-type arrangement for support payments in cases where the retiree was legally required to provide support to a former or legally separated spouse. She hoped that the issue would be pursued by the Standing Committee in 1997. It might be useful to adopt a resolution incorporating all decisions taken by the Board at its last session regarding matters which the Standing Committee should examine in 1997. There might also be some merit in the proposal for the revision of the relevant regulations to ensure fair treatment of the families of pensioners.

VLADYSLAV DROZDOV (Ukraine) said that one of the statements he had heard this morning was offensive to his delegation and an independent State. It could not be accepted.

NGONI FRANCIS SENGWE (Zimbabwe) interrupted Ukraine's representative. He said it was not the time for a right of reply.

MR. DROZDOV (Ukraine) said his comment was not a right of reply. It was a brief comment. He wanted to save time and not a make a scandal by defending the interests of his State. He would not allow statements to be made that reflected a historical situation that had gone forever into history. He said he knew the limits of ethics.

YURI BOHAYEVSKY (Ukraine) then spoke on the common system on behalf of his delegation. He stressed that the Organization's staff was an important asset. The proper conditions of service were the major prerequisite for the United Nations staff to efficiently perform their duties. He reiterated his support of the Noblemaire principle. However, he was not in a position to endorse any modifications or innovations, "allegedly designed to properly apply the Noblemaire principle", which were based on technical assumptions of somewhat doubtful nature. He maintained the position that the post adjustment system should be operating exclusively to compensate price differentials between duty stations. All relevant decisions should be subject to approval by the Assembly. Simply reconfirming last year's proposals by elaborating a new reasoning, the ICSC displayed a lack of realism with regard to the financial impact of their implementation. The proposal to absorb the additional costs would aggravate the acute cash-flow crisis of the Organization and its agencies. The implementation of the ICSC's proposals should be an integral part of the whole process of reforms which included enhancement of efficiency of staff performance as well as the final establishment of an effective system of accountability and responsibility. In that way competitiveness and attractiveness of the common system might be enhanced, and not simply by an increase in remuneration.

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Many highly qualified experts in his country and in many other Member States wished to join the United Nations, he continued. They were fully convinced that the common system was already competitive and attractive. On the issue of UNESCO's response to the ICSC's recommendation for an increase in post adjustment for staff in Paris, he said it was time for the Assembly to send a clear signal to the UNESCO Director General and the UNESCO governing body regarding the ICSC's role and mandate. He regretted that the consultative process between the Commission and the staff associations had not been functioning properly. The proper functioning of such a process would contribute to the enhancement of the common system in general including its attractiveness and competitiveness.

MARILYN ZONICLE (Bahamas) spoke on both the common system and the report of the pension board. The two most contentious issues regarding the common system were the recommended increase in the professional base/floor salary scale and the recommendation on the post adjustment classification for UNESCO staff in Paris. They were contentious because of the opposing signals being sent out on the issues. The Commission was zealously defending its mandated duty to regulate the conditions of service of the common system. The ACC was fully endorsing the Commission's recommendations and giving clear direction for the restoration of the common system's competitive edge. The staff representatives had noted that the staff's purchasing power had dwindled, while some Member States had criticized the ICSC's methodology.

On the first issue and the second -- the UNESCO Director General's rejection of the Commission's proposal for the post adjustment increase for Paris, she said that in advising the Commission, the Fifth Committee had to be objective and clear in responding to the conflicting danger signals. Such directives should take account of some of the developments in the comparator civil service remuneration system as well as the need to apply the Noblemaire principle to reflect other competitors such as the World Bank. The Commission must be reminded that its mandate was not limited to technical quantitative exercises but should also extend to evaluation of staff. In addition, Member organizations of the common system must be reminded of their obligations under the standard agreements between them and the United Nations. Member States should ensure that the common system was given direction and was able to maximally achieve the vision set out in the United Nations Charter.

Turning to the pension system, she commended the Investments Committee for the sustained growth of the Pension Fund's assets, including diversification in developing countries. She also commended the Pension Board for its demonstrated social conscience in considering possible limited amendment of the relevant rules to reduce the hardship for some close relatives of retirees.

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AURELIO IRAGORRI (Colombia) expressed support for the statement that the representative of Bolivia made last month on the common system. The need for a capable Secretariat with competent staff had been stressed during the debates on that very important agenda item. The decisions of the Fifth Committee on the matter would affect not only the United Nations, but also its specialized agencies. Therefore, the Committee should schedule a resumed meeting to consider the matter thoroughly. The staff representative had given him the impression that they had not agreed with the policy followed on the matter. He had the impression that United Nations staff were not motivated for many reasons. It was the obligation of the Committee to devote attention to the matter as a demoralized staff could not live up to expectations. Even though salaries were not the only tools that could be used to motivate staff, they did have significant weight. The representative said it seemed that the current financial crisis was isolated when some recommendations were made even when they were not consistent with the situation the Organization was facing. The specific financial conditions of each specialized agency should be considered whenever recommendations affecting them were made. There was a need to determine immediately whether it was necessary to find new ways of presenting ICSC recommendations so as to take full account of the views of the specialized agencies. The Committee had heard the views of staff representatives which should be factored into its decisions. The Committee should devote sufficient time to debating the common system. ULDIS BLUKIS (Latvia) spoke on the pension system and the proposed Agreement between the Pension Board and the Russian Federation. He said that a transferee affected by the 1981 Transfer Agreements was living in Latvia. Additional transferees might be identified by the Pension Board. Latvia became independent and joined the United Nations in 1991 and was no more a participant in the three Transfer Agreements. Since those covered by the Transfer Agreements were citizens of the former Soviet Union, Latvia could help secure the rights of some transferees and their survivors. Latvia sympathized with the financial needs of the transferees covered by the proposed Agreements, as well as those left out of it, he said. Issues should be explored further. For example, what grounds existed for discriminating among transferees who had participated in the Fund as citizens of the former USSR, he asked. He also asked why the proposed Agreement would not leave out the funding of all transferees who had been covered by the original Transfer Agreements with the former USSR. If the old Agreements were abolished by the new proposed Agreement, he asked, how would the rights of transferees not covered by the proposed Agreement be safeguarded? Statements on Ratio of Fixed-Term/Career Appointments

DENIS HALLIDAY, Assistant Secretary-General for Human Resources Management, introduced the Secretary-General's report on ratio between career and fixed-term appointments, reviewing some of its contents and the three approaches it proposed on the ratio.

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MR. DEINEKO (Russian Federation) said that a desirable proportion should be set in the ratio between career and fixed-term appointments. Career appointments should be an important tool for attracting and retaining qualified staff. But what happened was that career appointments were sometimes handed out automatically under staff pressure. Assembly resolution 37/126 had had some negative results and its provisions should be improved. The Secretariat should be given more flexibility on the issue of which posts would be subject to equitable geographical representation, he said. An appropriate ratio between career and fixed-term should be proposed for all categories of staff. He was ready to consider the dual-track system of career and fixed-term appointments. There should be regular reviews and checks on the work of the staff members. Legal protection should be enacted to that ensure that there would be no cost in separating staff who did not meet the criteria and expectations of productivity. WOLFGANG STOECKL (Germany) said the Secretary-General's proposal to reform the career appointments were acceptable to his delegation since it would set a limit to permanent appointments in relation to regular budget posts and make the distinction between career and non-career appointments. In advising on the proposals, the Committee should ensure that the advantage of the successful candidates of the national competitive examinations to obtain permanent contracts should be maintained in relation to those with fixed-term contracts. There should be proportionate amount of time for the various categories of staff to become eligible for permanent contracts. Candidates from the "G-to-P" and the national competitive examinations should be treated equally in the granting of permanent contracts, he said. Successful General Service staff should not enter the professional category with their permanent contracts intact. They should be earned in their exercise of professional functions. He asked for clarification on the total number of staff in the entire Secretariat. A figure of 14,188 had been given to correspondents in February, while the Secretary-General's report had a figure of 15,175. MR. BOND (United States) also questioned the figures in the report, especially following the reductions in staff this year. He asked for a breakdown of career and fixed-term appointments based on budgetary resources. HIDEKI GODA (Japan) said the report had failed to provide a comprehensive analysis of the issue. He highlighted some of its shortcomings, including the lack of identification of budgetary resources for the different types of appointments. He had doubts about setting a limit on the number of career posts. The report lacked an analysis of the kind of staff and the functions for which career appointments would be appropriate. There were some functions for which it would be better to maintain fixed-term appointments and there could be some functions for which staff should not receive permanent contracts. The issue as dealt with in the report needs further explanation. The Secretariat should provide a more thorough review of it.

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MR. HALLIDAY, Assistant Secretary-General for Human Resources Management, responding to Germany, said the figure of the total number of staff given in February represented staff with contracts of one year or more. The figure of 15,178 included staff with contracts of less than 12 months.

Responding to the United States, he provided the following figures for the breakdown of staff by budgetary resources: for the regular budget, the total was 8,572 staff -- 5,736 of which had career appointments; for extrabudgetary resources, the total was 3,271, of which 830 had career appointments; for peace-keeping budgets, there was a total of 2,319 staff members, of which 762 had career appointments. The total number of staff was 14,162, as of October.

DENISE ALMAO (New Zealand) asked when the Committee would receive a document containing the considered views of the Secretary-General relating to the report of the Joint Inspection Unit (JIU) on the United Nations system of placement and promotions.

MR. HALLIDAY said the report was in its final form, needing only editing and translations. It would be ready by the middle of next week.

MS. ALMAO (New Zealand) said that the report should be introduced during a formal meeting. NGONI FRANCIS SENGWE (Zimbabwe) said the Assembly was expected to close on 17 December, and the ratio between career and fixed-term staff could be considered in informal consultations. Action on Financing of Missions to Former Yugoslavia

MOVSES ABELIAN (Armenia), who had conducted informal consultations on the drafts on the UNMIBH, UNTAES and UNPREDEP, introduced them and asked for their approval without a vote.

The Committee then approved the three texts without a vote.

HENRIETTA RIECK (Germany) said that the amounts approved for the missions would not be fully covered by Member States' contributions, since one country had announced that it would cut what it paid to missions to a level it found convenient. That unilateral action would worsen the Organization's difficult cash-flow situation and in the long-run, jeopardize the implementation of all peace-keeping operations. The Secretary-General's commitment authority for every mission's budget would have to be adjusted to the predictable income level. Germany had joined the consensus because it supported the three missions in question. However, it would not stand for the non-payment of dues by other Member States or accept a change in its effective share in the current scale of assessments.

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