FIFTH COMMITTEE CONSIDERS SWISS OFFER OF RENT-FREE OFFICE SPACE FOR UNITED NATIONS BODIES AT PALAIS WILSON, GENEVA
Press Release
GA/AB/3217
FIFTH COMMITTEE CONSIDERS SWISS OFFER OF RENT-FREE OFFICE SPACE FOR UNITED NATIONS BODIES AT PALAIS WILSON, GENEVA
19980316 An offer by the Government of Switzerland to provide rent-free office space at the Palais Wilson in Geneva for several United Nations bodies currently meeting at the Palais des Nations received wide support this morning, as the Fifth Committee (Administrative and Budgetary) met to consider the Swiss proposal.The Swiss authorities propose to give that office space to the United Nations on a rent-free basis from 1998 to 2000, and intend to recommend that Parliament extend the arrangement thereafter. The cost of the move from current offices to that new location would amount to some $5.8 million, of which Switzerland would contribute some $3.8 million. The remainder, just under $2 million, would be absorbed from existing resources of the Organization.
While welcoming the Swiss offer, the representative of Cuba expressed regret that no cost-benefit analysis had been submitted regarding the Secretariat's plan to expand conference facilities at the Palais Wilson. She also questioned the proposal to transfer the offices of the International Decade for Natural Disaster Reduction to the new location, as their work was not mandated beyond 1999.
Several representatives asked where the nearly $2 million needed to make the move would be found. In response, United Nations Controller Jean-Pierre Halbwachs said the Organization's portion would be financed primarily from funds that had been earmarked for the Petit Saconnex annex in Geneva, which was being closed. All expenditures for refurbishing the new facility would be paid for by the Swiss Government.
Switzerland and the city of Geneva considered it an honour to provide the accommodation, the Observer for that country told the Committee. His Government was confident that the Swiss Parliament would approve continuation of the proposed rent-free arrangement.
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Statements on the Swiss offer were also made by the representatives of the United States, New Zealand, Canada, China, the United Kingdom (for the European Union and associated States), Egypt and Uganda. The Chairman of the Advisory Committee on Administrative and Budgetary Questions (ACABQ) presented that body's report on the matter.
Also this morning, the Committee concluded its consideration of the redirection of non-programme costs, hearing statements by the representatives of the Russian Federation, Cuba, Syria and Saudi Arabia.
The Fifth Committee will meet again at 10 a.m. on Thursday, 19 March, to consider United Nations human resources management and the pattern of conferences. It is also expected to take action regarding the proposed accommodations at the Palais Wilson.
Committee Work Programme
The Fifth Committee (Administrative and Budgetary) met this morning to continue discussing aspects of the programme budget for 1998-1999. Under that agenda item, it was scheduled to continue its consideration of the Secretary- General's proposals to reduce non-programme costs and redirect them to a development fund. (For background, see Press Release GA/AB/3213 of 10 March.)
The Committee was also scheduled to resume its consideration of an offer by the Swiss authorities to provide office accommodations for the United Nations at the Palais Wilson in Geneva. It had before it a report of the Secretary-General's on office accommodations at the Palais Wilson (document A/C.5/52/19 and Add.1 and Add.1/Corr.1), in which he seeks the General Assembly's concurrence for acceptance of the proposal of the Swiss Federal Council to make that building available to the United Nations. It has sufficient space for the needs of the Office of the High Commissioner for Human Rights and could be occupied by mid-April 1998, he states.
The Palais would be granted rent-free, initially for the period from 1998 to 2000, with the intention of maintaining that arrangement indefinitely, according to the report. It would be managed by the Fondation des immeubles pour les organisations internationales, which would be responsible for building and technical services installations. The costs of those services would be paid by the United Nations Office at Geneva at a fixed rate $930,000 per year.
The move to the Palais Wilson would have some one-time and recurrent costs, totalling about $6.1 million, the Secretary-General states. The $3.4 million one-time costs include those for conference rooms and related equipment; for security-related changes that would involve fencing, reinforcing window panes and installing cameras and metal detectors; and for structural changes. The $2.6 million recurrent costs include staff costs and maintenance.
Under the funding arrangement proposed by Swiss authorities, they would cover about $3.9 million of the costs of the move, according to the report. The balance of some $2.1 million would be met from the Organization's existing and projected resources. While no additional resources are requested for 1998-1999, the recurrent costs of operating the building would be reflected in the proposed budget for United Nations Administration at Geneva.
In the addendum to his report, the Secretary-General states that the Swiss authorities have offered accommodation at the Palais Wilson on a rent-free basis for the initial period from 1998 to 2000. They have indicated that the Government of Switzerland will in due time recommend to Parliament the continuation of this rent-free arrangement after the year 2000. The
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contribution of the Swiss authorities would also include $54 million of expenditures relating to one-time renovation and refurbishment of the premises, and maintenance costs for the 1998-1999 biennium.
The Secretary-General states that should the General Assembly approve the offer, Palais Wilson would be occupied by 1 July 1998 -- that is, for 18 months of the biennium, as opposed to the 20 months originally provided for in his 14 November 1997 report on the subject. Accordingly, the revised total cost estimates of the move to Palais Wilson would amount to some $5.8 million, of which a contribution for that purpose from the Government of Switzerland would account for some $3.8 million. The residual -- approximately $2 million -- would be absorbed from existing resources of the Organization. Thus, no additional resources would be required for the biennium.
Bearing in mind the foregoing, and the accommodation needs of the Organization, the Secretary-General remains of the view that comparable space cannot be located in close proximity to the Palais des Nations at the cost estimated for the move to Palais Wilson. He therefore suggests that the Assembly accept the Swiss offer of the building.
The Committee also had before it a report of the Advisory Committee on Administrative and Budgetary Questions (ACABQ) on office accommodation at the Palais Wilson (document A/52/7/Add.4). In it, the ACABQ recommends that the Assembly should encourage the Secretary-General to continue negotiating with the Swiss authorities on their offer and report to the Assembly for a final decision. The ACABQ comments on, among other things, the seemingly high $1.2 million general cost for maintenance, renovation and cleaning of the Palais.
Advisory Committee Statement
C.S.M. MSELLE, Chairman of the ACABQ, introduced that body's report on office accommodation at the Palais Wilson. He said that the Secretary- General's report on the subject provided information and clarification on issues raised by the Advisory Committee in its report of 8 December.
He said the Advisory Committee had noted that, should the General Assembly approve the offer by the Swiss authorities, the Palais Wilson would be occupied by 1 July 1998, that is for 18 months rather than 20 months of the 1998-1999 biennium as had been initially anticipated. The Committee had been informed that, accordingly, the revised total cost estimates of the move to the Palais Wilson would amount to some $5.8 million, of which the contribution from the Government of Switzerland would amount to about $3.8 million. The balance of almost $2 million would be covered from existing resources. Therefore, no additional resources would be required for the 1998-1999 biennium.
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He said the Advisory Committee agreed with the view of the Secretary- General that, bearing in mind the accommodation needs of the Organization, particularly with the closure of other of its accommodations, it was unlikely that the Organization would locate comparable space in close proximity to the Palais des Nations at a cost which would be more favourable than that associated with the move to the Palais Wilson. The Committee, therefore recommended that the General Assembly approve the Secretary-General's proposal to accept the offer of the Swiss authorities.
Redirection of Non-Programme Costs
ALEXEI A. DVINIANINE (Russian Federation) said the question of redirecting non-programme costs ultimately related to a broad range of measures for increasing the Organization's efficiency. He welcomed the Secretariat's initiative and intended to participate actively in the discussion on implementing the recommendations in the Secretary-General's report. The Russian Federation broadly supported the recommendations contained in the report of the ACABQ.
The Organization's financial and staff rules should be simplified, but also strictly observed, he said. There was need to draw a clear line between different kinds of savings. A surplus in funds from currency fluctuations should be credited back to Member States. It would be useful to return to the question at a later date, after the Secretary-General's report on the modalities of the development fund had been issued.
EVA SILOT BRAVO (Cuba) said her delegation had studied the Secretary- General's report and regretted that it did not respond to the guidelines approved by the Assembly in its resolution 52/220, which endorsed the recommendations of the ACABQ on the subject as contained in document A/52/7/Add.10.
The deficiencies in the Secretary-General's document were a source of concern, since the Cuban delegation had hoped to receive justification for the proposal on reducing the percentage of administrative costs, she said. The Assembly, in resolution 52/12 B, had referred to possible reductions in administrative costs but had not adopted any particular percentage.
She expressed the hope that the Secretary-General's upcoming report would present a realistic figure for possible reductions. That report should also indicate the number of posts being considered for abolition, as well as the areas of work to be effected. It should include an evaluation of the possible programmatic impact of the reductions, as well as the possibility of rationalizing the work of the Secretariat in the political area, taking into account the possible duplications in the work of the Department of Political Affairs and the Department of Peacekeeping Operations.
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The United Nations primary objective was to provide services to Member States, in relation to the objectives enshrined in the Charter, she said. Any exercise to achieve savings must be based on the need to maintain and improve the services rendered. Efficiency measures must not be goals in and of themselves. Instead, they should be a means to ensure that the Organization performed its functions more effectively. The Cuban delegation was awaiting the Secretary-General's proposals on the development fund with particular interest. Any decision on the matter should be postponed until that additional report was received.
TAMMAM SULAIMAN (Syria) said he supported the statement made last week on behalf of the "Group of 77" developing countries and China on the redirection of non-programme costs. When the General Assembly discussed the reform of the United Nations, Syria had fully supported the Secretary- General's proposals, which needed further discussion. His country was extremely concerned by the new concept of "non-programme" costs, which set up a new categorization for United Nations activities. The creation of a distinction between what was "non-programme" and "programme" created an imbalance in the very structure of the Organization. Syria agreed with the view of the Advisory Committee that the distinction between "non-programme" and "programme" costs was blurred.
Addressing the subject of the Office of Communications and Public Information (OCPI), he said the Secretary-General had proposed a reclassification of the director of that Office from Assistant Secretary- General to Under-Secretary-General, a move which Syria had supported. However, to consider the activities of the Office as independent from those of the United Nations seemed contrary to the important work it carried out.
The work of the United Nations relied heavily on conference services, he said. How could they be considered to be non-programmatic? The report on reform had stated that the opinions of the Member States would be taken into account. Member States had clearly indicated that when the reforms were implemented, they should not negatively affect the work of the United Nations in any way.
AHMED FARID (Saudi Arabia) said his delegation also supported the statement made on behalf of the "Group of 77" and China. It agreed with the ACABQ that no distinction should be drawn between non-programme and programme costs. In addition, OCPI should not fall under the first category.
He said his country found it hard to believe that conference services would be cut. In addition, the targeted reduction of documentation by 25 per cent would not lead to the expected savings. Saudi Arabia urged the expeditious implementation of cost accounting systems. It was hoped that work was under way on the report on conference services, which was due 31 July.
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Office Accommodation at Palais Wilson
Ms. SILOT BRAVO (Cuba) welcomed the Swiss Government's offer to make available the premises at the Palais Wilson. Having heard the oral presentation of the Advisory Committee, she was struck by the fact that it had not followed-up on its own recommendations. She had not discovered any need for increased space for the Office of the High Commissioner for Human Rights. The proposal was to transfer to the Palais Wilson part of the work of the Division of the International Decade for Natural Disaster Reduction, which began its 10-year programme in 1990. There was need for clarification on the logic of transferring part of that body to the Palais Wilson while locating another part at the Palais des Nations.
She expressed regret that no cost-benefit analysis had been submitted for the two contemplated conference rooms, nor had the need for them been justified. On the cost of the transfer, she said the report had indicated that no additional resources would be required for the 1998-1999 biennium. How would the cost of the transfer be covered. Also, she was still awaiting issuance of the text of the agreement on the United Nations use of the Palais Wilson.
Cuba accepted the transfer of the Office of the High Commissioner to the Palais Wilson, she said. However, the additional two conference rooms should not be built until sufficient justification was provided. The Secretariat should reconsider which bodies were to be transferred to the Palais Wilson, bearing in mind the temporary nature of the secretariat of the Decade for the Prevention of Natural Disasters.
SUSAN M. SHEAROUSE (United States) said that, given the Organization's need for additional office accommodations, it appeared reasonable to relocate the Centre for Human Rights and the Division of the International Decade to the Palais Wilson. The Secretary-General should continue discussions with the Swiss authorities to ensure that costs were minimized. In particular, those costs should not be greater than comparable office space in Geneva.
WEN CHIN POWLES (New Zealand) said her delegation agreed with the recommendation of the ACABQ in its oral presentation. Without the offer of space in the Palais Wilson, the Organization would have to provide an additional amount of more than $1 million a year. The offer by the Swiss Government was appreciated.
SAMUEL HANSON (Canada) also expressed appreciation for the Swiss offer. In light of the clarifications provided and the Advisory Committee's recommendation, the Fifth Committee was now in a position to move expeditiously towards a decision on the matter.
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ZHANG WANHAI (China) said he agreed with the views expressed by the Cuban delegation, particularly regarding the information in the Secretary- General's report that almost $2 million would be drawn from existing resources. Was that amount to be taken from the entire Organization or from a particular department? he asked.
NICOLAS THORNE (United Kingdom), speaking on behalf of the European Union, Hungary, Poland, Romania and Slovakia, said the Union welcomed the conclusion of the agreement between the Secretariat and the Swiss Government regarding the Palais Wilson and approved of the arrangements, which seemed to be entirely acceptable. Like the Advisory Committee, the Union had considered the proposal on its administrative and financial merits and in the light of the current circumstances in Geneva and the alternative options. Having done so, the Union concurred with the Advisory Committee's recommendation that the Secretary-General's proposal should be approved.
AHMED H. DARWISH (Egypt) also supported the offer of office space in the Palais Wilson for the Human Rights Commission and thanked the Swiss Government. It was hoped that the Secretariat would take the necessary measure to rationalize expenses following the move.
NESTER ODAGA-JALOMAYO (Uganda) extended his delegation's appreciation to the Swiss Government for its offer. His country supported the Secretary- General's initiative to establish a human rights house in Geneva. It was hoped that after the year 2000, the Swiss Parliament would be kind enough to allow the continuance of the rent free arrangement. However, the amount needed for the move, some $2 million, was a matter of concern. Where exactly would that money be coming from? he asked.
JULIUS ANDEREGG, Observer for Switzerland, said that last December, the Advisory Committee and the Fifth Committee had raised many relevant questions regarding the offer of accommodation. His country was grateful to the Controller's office for all the information it had provided.
He said that Switzerland and the city of Geneva considered it an honour to provide the accommodation. Regarding continuation of the rent free arrangement, he said that was a normal procedure. His Government was more than confident that Parliament would approve continuation of the arrangement.
JEAN-PIERRE HALBWACHS, United Nations Controller, said his office was happy with the conclusion of the Advisory Committee, that comparable space could not be found near the Palais des Nations at a more favourable price.
On the question raised regarding the human rights offices, he said they would have slightly more space in the new arrangement. There had been an increase in staff, who were currently in cramped quarters; the move would ease
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that problem. Regarding the Division for Natural Disaster Reduction, he said that entire office was being moved. The logic behind that decision had been to find an office that fit the remaining space in the Palais Wilson.
He said the Advisory Committee had been provided with additional information on meetings in the Palais des Nations, whose number had been increasing steadily. The request for meeting space was more acute during the summer months, and it had not been possible to accommodate requests for a number of meetings. The move of the human rights office would help free up space.
Regarding the additional resources needed to make the move, he said the money earmarked for the Petit Saconnex -- United Nations offices that are to be closed -- would be used to provide the nearly $2 million. All expenditures for refurbishing the new facility would be paid for by the Swiss Government. He said the Palais Wilson agreement had not been circulated because the Committee had not asked for it. A copy of the draft was available if delegations wished to see it.
Ms. SILOT BRAVO (Cuba) said that while some of her delegation's concerns had been answered, others remained. On the issue of giving more space to the Office of the High Commissioner for Human Rights, how many people were involved and in what context had that staff been approved? The matter had not been raised in the original discussion on the Palais Wilson. Also, it did not seem logical to transfer the secretariat of the International Decade to the Palais Wilson, since that body was not permanent; it would cease to exist in 1999. If there was to be a transfer, a more permanent body or institution should be moved, to justify the use of the space. If the secretariat of the International Decade closed shop in 1999, space would become available. What would it be used for?
Annex I of the Secretary-General's report indicated that part of the International Decade's secretariat would be moved to Palais des Nations, while Annex IV indicated that another part would be moved to Palais Wilson, she said. That contradicted the information the Committee had just received on the transfer of its entire secretariat to the Palais Wilson.
The Controller's information on conference services had not been based on a cost-benefit analysis, she said. What conference rooms would be made available as a result of the move from Palais des Nations? The Organization should not be building new conference rooms without a careful analysis. Also, why was there a difference between the cost of the space and the amount which the United Nations would have to pay?
Mr. HALBWACHS, United Nations Controller, said the Organization would be financing the cost of the Palais Wilson primarily from funds earmarked for the Petit Saconnex annex. In addition, a few extrabudgetary entities would be moving to the Palais, and providing payment. The secretariat had looked for
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an entity that would fit into the Palais Wilson and the Centre for Human Rights met that criteria. In 1993-1994, the Centre's personnel had been increased. They would now have more space and their working environment would be enhanced. All of the Centre personnel located in Geneva, comprising roughly 140 regular budget posts and 50 extrabudgetary posts, would be moving from the Palais des Nations to the Palais Wilson.
The secretariat had provided information on the conference rooms and the Advisory Committee had endorsed its conclusions, he said. Annex I of the report might contain an error, because it was the full secretariat of the International Decade that was to move. Two conference rooms already existed; the third room would be paid for by the Government of Switzerland.
Ms. SILOT BRAVO (Cuba) said that increased meetings had been cited by the Secretary-General to explain the need for building two additional conference rooms. How could that increase be justified when the meetings of the Commission for Human Rights were to be held at the Palais des Nations? The proposal was not to build one room. Two rooms were to be built, yet the main body was not being transferred to the Palais Wilson.
When the secretariat of the International Decade ceased its work, how would the space it occupied be used? she asked. Her delegation awaited information on that matter before deciding on the offer. The General Assembly had said in an earlier debate that there was a need to use the space made available to the two bodies as economically as possible.
ANWARUL KARIM CHOWDHURY (Bangladesh), Committee Chairman, summarized the questions which had been raised. First, there was need for information on what would happen to the space at the Palais Wilson after 1999 if the secretariat of the International Decade did not continue to exist. On the conference rooms, he said that the oral report of the ACABQ Chairman had mentioned three conference rooms: two main rooms and a third, smaller room. The question was whether one main room existed and two had to be prepared, or whether two existed and one had to be made ready.
Ms. SILOT BRAVO (Cuba) said the Secretary-General's report said there was one conference room. Two additional rooms were proposed for construction. If one of the principle human rights bodies remained in the Palais des Nations, how could the two additional rooms be justified? How would the newly available space in the Palais des Nations be used?
Mr. HALBWACHS, United Nations Controller, drew attention to paragraph 10 of the Secretary-General's report, which stated that one conference room with a seating capacity of 100 to 120 delegates currently existed. Of the proposed two additional conference rooms, the smaller conference room -- to seat between 60 and 80 delegates -- would not involve construction or structural changes to the current space. The larger conference room would require some structural changes and construction.
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He said the Commission for Human Rights would continue to meet at the Palais des Nations. The other meetings would take place at the Palais Wilson. The calendar of mandated meetings required approximately 85 weeks of conference servicing. He repeated that there had been a significant increase in meetings at the Palais des Nations. Between June and August, requests for meetings often had to be turned down. Moving the Human Rights Centre would help provide more flexibility.
Mr. CHOWDHURY (Bangladesh), Committee Chairman, proposed that the Committee recommend that the offer of accommodation be accepted. A draft decision on the question could take note of the reports of the Secretary- General and the Advisory Committee. Note would also be taken of the costs of the move and that no additional resources would be required for it.
Ms. SILOT BRAVO (Cuba) said that a cost-benefit study regarding the proposed conference room be made.
Mr. CHOWDHURY (Bangladesh), Committee Chairman, said that a draft text would be presented at the Committee's next formal meeting.
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