IMBALANCE BETWEEN UN SYSTEM SERVICE CONDITIONS AND CONDITIONS OFFERED BY OTHER MULTILATERAL ORGANIZATIONS SHOULD BE RECTIFIED, FIFTH COMMITTEE TOLD

Press Release
GA/AB/3256

IMBALANCE BETWEEN UN SYSTEM SERVICE CONDITIONS AND CONDITIONS OFFERED BY OTHER MULTILATERAL ORGANIZATIONS SHOULD BE RECTIFIED, FIFTH COMMITTEE TOLD

A competitive compensation package and a system that rewarded outstanding performance and addressed unsatisfactory performance would help develop and maintain a strong international civil service, the Fifth Committee (Administrative and Budgetary) was told this morning, as it continued its general discussion on the United Nations common system.

The representative of Norway also thanked the many dedicated, competent and hard working staff members that served the United Nations and its Member States, and said the imbalance between the common system conditions of service and the conditions offered by some other multilateral organizations should be rectified.

The representative of Japan expressed concerns about high resignation rates, but did not believe that was a consequence of salary levels. Rather, it was the result of other profound problems, such as a lack of career prospects. Additionally, he proposed the International Civil Service Commission (ICSC) develop guidelines for accountability of senior managers for improving geographical representation.

The Russian Federation was opposed to proposals to explore using a basket of comparators for determining conditions of service for staff at the Professional level and higher, because it was an unbalanced approach fraught with biases and possible manipulations, according to that country's representative. The current system of using a single comparator should be retained. He also warned against undue reliance on consultations in the work of the ICSC, saying that responsibility for ICSC recommendations lay with its members alone.

Also this morning, the representative of the United States spoke on the United Nations pension system.

When discussion turned to other matters, the representative of the United States told the Committee that the United States had recently paid some

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$164 million to the United Nations. Yesterday, the United States had delivered a further $197 million, bringing the total United States contributions for peacekeeping and regular budgets to roughly $560 million for the year. For three years, the United States had essentially delivered all the money it owed for current bills.

Under other matters, the representatives of Japan, Cuba, United Kingdom, Panama, Pakistan, Ireland and the Chairman, Movses Abelian (Armenia), also addressed the Committee.

The Fifth Committee will meet again at 10 a.m. on Friday, 4 November, to take up appointments to fill vacancies for a number of United Nations agencies, including the ACABQ and the Administrative Tribunal.

Fifth Committee Work Programme

The Fifth Committee (Administrative and Budgetary) met this morning to continue general discussion on the United Nations common system and the United Nations pension system.

(For background information on the United Nations common system and the United Nations pension system see press release GA/AB/3225 of 2 November.)

Statements on United Nations Common System

OLA BREVIK (Norway) thanked the many dedicated, competent and hardworking staff members that served the United Nations and its Member States. To develop and maintain a strong international civil service, the conditions of service of staff must be made more attractive and competitive, and he supported the recommendations of the International Civil Service Commission (ICSC) towards that aim. The imbalance between the common system and the conditions offered by some other multilateral organizations should be rectified, by ensuring the application of the Noblemaire principle. Norway would support the establishment of a competitive compensation package and a system that rewarded outstanding performance and addressed unsatisfactory performance.

[The Noblemaire principle is the basis used for determining conditions of service of staff in the Professional and higher categories. Under the application of the principle, salaries of those are determined by referring to those in the civil service of the country with the highest pay levels.]

He said he would comment on many central issues, such as recruitment, performance appraisal, and gender balance in the context of the Committee's consideration of human resources management. The ICSC's decision to create a working group to examine a framework for human resources management seemed a constructive initiative. Close consultations between the Office of Human Resources Management, staff representatives and the ICSC were important to successfully implement reforms. He welcomed the Commission's readiness to contribute to the reform process and looked forward to the reexamination of the composition, mandate and functioning of the ICSC, called for by the Secretary-General as part of the human resources management reform process.

Norway was greatly concerned about the security of United Nations staff, he said. He appealed to all Member States to sign and ratify the 1994 Convention on the Safety of United Nations and Associated Personnel.

Turning to the report on the United Nations Joint Staff Pension Board, he noted with satisfaction that for the first time in 20 years the actuarial valuation of the Fund was positive. He welcomed the progress made on administrative arrangements for the Staff Pension Fund and said the concept

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paper on a review of cost-sharing arrangements between the Fund and a revised cost-sharing formula provided a useful basis for deliberations.

KOJI YAMAGIWA (Japan) said that Japan supported the common system, which allowed participating organizations to avoid burdensome administrative arrangements, but also ensured equal and consistent conditions throughout the system, and thus eliminated unnecessary competition between international organizations. That was even more important given the Secretary-General's intent to increase mobility throughout the system. It was also important to maintain the role of the ICSC as an independent, technical and professional body serving the system. Japan would therefore like to be informed of the latest developments in work on reform of the ICSC. It was almost one year since the General Assembly requested work on reform following the Secretary- General's suggestion, in resolution 52/12B.

Japan appreciated ICSC efforts to progress the consultative process, including the establishment of the Working Group, he said. While noting the Working Group outcomes, Japan supported the decisions of the ICSC, in particular not to change the comparator for the Noblemaire system at present, and to study the idea of a basket of comparators. It shared the concerns of the staff associations about high resignation rates, but did not believe that was attributable to salary. Rather, it was a consequence of profound problems, such as lack of career prospects. Japan would also like to encourage the ICSC to further study the issue of the margin for non-expatriate staff members.

Japan was concerned about the ICSC dealings on the post adjustment issue, he said, noting the Board of Auditors reported a low response rate to the questionnaire on the important question of spending patterns of staff members. In the light of the Auditors' Board findings, some further measures should be taken to address the issue which could undermine the credibility of the system. Japan would like to hear ICSC responses to the Board of Auditors' concerns. It supported the ICSC on conditions of service for both categories of staff. It was gravely concerned about staff field security problems, and would therefore like the ICSC to examine, within its mandate, any measures, in addition to monthly hazard pay, to address the issue.

On the new framework of human resources presented in the ICSC report, Japan welcomed identification of recruitment, geographical balance and career development as priorities, he said. It would like to stress the importance of equitable geographical representation and looked forward to some progress on that. Japan requested that the Secretariat of the ICSC develop a set of guidelines for responsible senior officials to support accountability for improving geographical representation.

NIKOLAI LOZINSKY (Russian Federation) said that his delegation traditionally paid special attention to the work of the ICSC. It believed,

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under the reform process, the importance of the ICSC recommendations and noted that the extent of the task it faced was increasing. The Russian Federation intended to make detailed statements on recommendations during informal consultations. It reaffirmed the central role of the ICSC on conditions of service in the common system. It could not support attempts to call into question the ICSC's statutes, and did not share the view that there was need to review ICSC's stature and mandate, including the appointment of its members. Article 3 of the ICSC statute still remained valid.

As to the proposal to establish a group for the ICSC review, the ICSC report made convincing arguments in favour of a cautious approach, he said. Change should not be for its own sake, but should introduce improvements. On the Board of Auditors' report, a number of findings and recommendations made in it went beyond its mandate. The Russian Federation supported the ICSC view on that. All expert bodies of the United Nations should follow the mandates provided for them by the General Assembly.

The issue of the consultative process had occupied an important place in ICSC deliberations this year, he said. His delegation noted the flexibility of all parties. Given the far-reaching effect of decisions taken by the Commission on the issue, changes needed to be field-tested. He requested that the ICSC monitor that process, notably its effect on ICSC efficiency. The Russian Federation would also like information on the financial implications of changes proposed, and more detailed information on staff participation, which was not quite clear to it. Russia did not doubt the right of ICSC partners to define their involvement, but saw no need for further appeals to the partners to resume full participation in the process. On specific proposals for changes to ICSC rules, the Russian Federation would like a legal opinion.

He said that in general the ICSC report was balanced, reasonably technical and non-controversial. The Russian Federation supported most of the ICSC recommendations. Regarding conditions of service of professional and higher categories, it noted the ICSC recommendation to suspend annual reporting on the United States-German comparison until 2001. As had been noted repeatedly, the comparators still caused serious questions and the results of such comparisons would be unusable to the General Assembly until the questions regarding comparators were settled. The Russian Federation did not find the use of a basket of comparators appropriate, and could not support such an unbalanced approach fraught with biases and possible manipulations. The current system of using a single comparator should not be abolished.

His country looked forward to the earliest completion of the analysis of new approaches for human resources management, he said. It counted on ICSC input in this regard. It also noted the creation of the human resources management Working Group. The Russian Federation cautioned against under- reliance on tripartite consultations, without prejudging the decisions. The

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General Assembly needed to rely on its own expertise. The responsibility for ICSC recommendations lay with its members alone.

Statements on United Nations Pension System

SUSAN SHEAROUSE (United States) said it was important that a balance be maintained between ensuring the health of the Pension Fund and meeting the needs of its participants. Those who managed the Fund had done fine work: despite volatility in the financial markets, a real investment return of 18.9 per cent for the year ending 31 March 1998 marked the sixteenth consecutive year of positive return. The Fund's investment portfolio should continue to be widely diversified in order to reduce risks and improve long- term returns.

She noted the small actuarial surplus of 0.36 per cent of pensionable remuneration as of 31 December 1997, which was the first such surplus since 1978. While there were efforts by the Board to liberalize some of the benefits as a result of this actuarial valuation -- which was based largely on the strength of the dollar value -- she agreed with the view expressed by the Committee of Actuaries and the Advisory Committee on Administrative and Budgetary Questions (ACABQ) that that should not be the reason to make changes in the contribution rate or in benefits. Consideration of such changes should be subject to subsequent actuarial variations.

She then turned to entitlements for surviving spouses and former spouses. The Board's action was significant towards addressing a long-ignored family and social issue. While welcoming the new entitlements, her delegation urged further action so that the needs of those not addressed by the new entitlements could be addressed. On eliminating the remarriage penalty, she said some restrictions should be imposed on eligibility, and recommended that the Board remain seized with those issues without actuarial consequences.

She expressed disappointment with the lack of progress made between the Government of the Russian Federation and the Pension Board to resolve the issue regarding former participants in the Fund who were Russian citizens. She urged the Russian Federation to take the necessary steps to facilitate ratification of the agreement.

On the administrative arrangements between the Fund, the United Nations and other member organizations, she said she supported the Board's recommendations. Also, she supported the recommendation that the Secretary- General should complete consultations with the funds and programmes on the methodology for apportioning charges to its affiliated programmes for services rendered to the Fund on their behalf. On proposed staffing changes, her delegation was sympathetic to the position articulated by the European Union.

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Other Matters

Mr. YAMAGIWA (Japan) said the Committee was to take up human resources management on Monday, and a large number of documents were to be introduced. In addition to concerns about efficiency, his delegation had concerns about the lack of information on those documents contained in the status of preparedness of documentation. The Secretariat should circulate a complete list.

MOVSES ABELIAN (Armenia), Fifth Committee Chairman, said the Secretariat would make all possible efforts to distribute that list.

EVA SILOT BRAVO (Cuba) said that when human resources was next discussed, the report of the ACABQ on the question of human resources in the context of reform should be available. The representative of Tunisia had suggested that and she hoped the document would be obtained.

The Chairman said the matter had been communicated to the ACABQ, although no reply had yet been received.

RICHARD SKLAR (United States) recalled that several weeks ago, the Under-Secretary-General for Management, Joseph Connor, had addressed the Committee on the United Nations financial situation. At the end of that statement, the United States delegation had indicated that it expected its Congress would vote on the matter and that payments to the United Nations would be made. That had occurred.

At that time, the United States had indicated that the United States Government had approved payment of $164 million -- roughly $50 million for the regular budget and $111 for peacekeeping, he continued. In fact, the United Nations had received that $164 million shortly after. He had further indicated the Congress was to vote on full appropriation for the regular and peacekeeping budgets. Yesterday, the United States had delivered $197 million to the United Nations, bringing the total United States contributions for peacekeeping and regular budgets to roughly $560 million for the year.

The United States Administration was still working to address the problem of arrears that stemmed largely from the years 1991 to 1995, he said. For three years, the United States had essentially delivered all the money it owed for current bills.

Also, Under-Secretary-General Connor had indicated that the United Nations might have to borrow $247 million from peacekeeping operations to cover regular budget expenses at the end of the year, he said. However, $197 of that $247 potential deficit had now been received. That meant the maximum amount that would have to be borrowed by the regular budget from peacekeeping would be roughly $50 million. If the programme report indicated

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that spending had been less than planned, the United Nations might be in a situation where no borrowing was necessary.

NICK THORNE (United Kingdom) welcomed the news from the representative of the United States. The United Kingdom was sad that no progress seemed to be made on paying off United States arrears. Mr. Connor should indicate to the Committee whether the situation on cross-borrowing might actually be improved, and also provide information on the updated United States arrears situation. He hoped the United States could tell Member States when the United Nations could expect the remainder of the payments, and whether any conditions would be attached.

The Chairman informed the Committee that he had received a letter from the representative of Costa Rica, asking that he request the Office of Legal Affairs to give its views on two questions raised during informal consultations on Article 19 of the Charter -- which removes Member States' voting rights when their arrears equaled or exceeded two years' contributions. The Legal Office was to be asked its views on a paragraph proposed for a draft by which the Assembly would decide that henceforth any exception to Article 19 should be reviewed by the Committee on Contributions before being reviewed by the General Assembly.

JUDITH CARDOZE (Panama) said Committee members should purchase their tickets to the party on 20 November and urged States to make donations of gifts or trips.

AMJAD SIAL (Pakistan) said his delegation had also submitted two paragraphs to the coordinator of the consultations on Article 19 which the Bureau should take into account when submitting the request to the Office of Legal Affairs.

FRANK SMYTH (Ireland), coordinator of the item, said that the paragraphs referred to by the representative of Pakistan pertained to Article 19 of the Charter and Rule 160 of the General Assembly's Rules of Procedure. The Office of Legal Affairs should comment on whether that Rule impacted on the authority of the General Assembly, enshrined in Article 19 of the Charter, to take action on the matter independently.

The Chairman said he would transmit the requests.

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