UNITED NATIONS CLEARLY DAMAGED BY INCREASINGLY ACRIMONIOUS DEBATE ON SCALE OF ASSESSMENTS, FIFTH COMMITTEE TOLD

Press Release
GA/AB/3316

UNITED NATIONS CLEARLY DAMAGED BY INCREASINGLY ACRIMONIOUS DEBATE ON SCALE OF ASSESSMENTS, FIFTH COMMITTEE TOLD

Committee Also Takes Up Pattern of Conferences

The United Nations was the battlefield in an increasingly acrimonious war about the scale of assessments, and it had clearly been damaged by the debate, the Fifth Committee (Administrative and Budgetary) was told this afternoon, as it continued its discussion of the scale of assessment used to determine the apportionment of the United Nations’ expenses among its membership.

A truce must be declared so trust could be built before any discussion of money commenced, the representative of Singapore continued. A clear and simple formula must be found, and the starting point was clearly capacity-to- pay. If trust was re-established, a solution would be found because the amounts of money concerned were, in fact, relatively small.

The scale should be more stable, simpler and more transparent, the representative of Australia, speaking also on behalf of Canada and New Zealand, stated. The current methodology did not accurately reflect capacity to pay, as the rates it produced failed to reflect recent changes in economic circumstances. A shorter base period of three years, and annual recalculation, would better reflect Member States’ current capacity-to-pay.

Little progress had been made on improving the rates of use of United Nations conference facilities at its office at Nairobi, the representative of Kenya, speaking also on behalf of Tanzania and Uganda, explained when the Committee turned to its consideration of the United Nations pattern of conferences. It was time to move away from rhetoric to tangible measures to improve the capacity of the Nairobi conference centre, he added. Concerns about costs involved were unconvincing, as the centre had hosted more than 100 missions and was serviced by excellent airline connections.

The representative of Jamaica endorsed the concern about persistent under-use of the Nairobi facilities. It was unacceptable that the only United Nations office located in a developing country was not properly equipped, she said. Specific policy suggestions were needed.

Fifth Committee - 1a - Press Release GA/AB/3316 10th Meeting (PM) 19 October 1999

In general, the delivery of conference services had been severely affected by economy measures, she added, and the point at which no further cuts could be tolerated had been reached. Any unexpected increase in the demand for meetings could upset the balance the Department of General Assembly Affairs and Conference Services had carefully crafted.

Speaking on the same agenda item, the representative of China said the requirement that all six official languages of the Organization be treated equally should be seriously implemented. United Nations web sites in languages other than English and French lagged behind in updating, content and enrichment.

He was also concerned at the proposed 0.8 per cent reduction in the budget for conference services, at a time when the plans for the Millenium Assembly meant its workloads were likely to increase. Any reduction might adversely affect the provision of services, and the Committee should bear this in mind when it considered the 2000-2001 budget proposals.

The representatives of the Philippines, on behalf of the Association of Southeast Asian Nations, Croatia, Myanmar, Burkina Faso and Kuwait also spoke on the scale of assessments. On the pattern of conferences, the Committee also heard from the representatives of Guyana, on behalf of the “Group of 77” developing countries and China, Republic of Korea, Bangladesh, Japan and Syria.

The Committee will meet again at 3 p.m. on 20 October to continue its consideration of the scale of assessments and the pattern of conferences, and to take action on draft proposals on procurement reform and the operation of the Development Account.

Programme of Work

The Fifth Committee (Administrative and Budgetary) met this afternoon to continue its consideration of the scale of assessments for the apportioning of the expenses of the Organization among its Member States, and of the pattern of United Nations conference.

(For background on these issues, see press release GA/AB/3314 of 18 October).

Statements on Scale of Assessments

MARIA LOURDES V. RAMIREZ LOPEZ (Philippines), speaking on behalf of the Member States of the Association of Southeast Asian Nations (ASEAN), said the United Nations would continue to depend on a handful of countries in the financing of its expenses, given the varying degrees of economic development of its general membership.

She stressed that any review of the scale methodology should build upon the broad political consensus that existed, and that any changes should not increase the financial burden beyond the means of developing countries. The ASEAN’s position on the elements that should be part of the scale methodology for 2001-2003 included: support for the Contributions Committee’s recommendation that future scales be based on Gross National Product (GNP) as a starting point for determining capacity to pay; that the base period should reflect a country’s capacity to pay in a realistic manner; that market exchange rates be used for the purposes of the scale; that debt burden adjustment be retained to help developing countries; that low per capita income allowance remain an integral part of the scale methodology; that the current ceiling not be lowered further; and that the floor rate be retained at 0.001 per cent.

She said annual recalculation of the assessment rates would be disruptive; instead, this should remain valid for three years. She rejected the notion that the financial crisis of the Organization was caused by the scale of assessments -– that was due to late or non-payment by Member States.

The ASEAN also strongly believed that the scale of assessments for peacekeeping operations should be considered under the relevant agenda item and not under the current item, she added.

HENRY FOX (Australia), speaking also on behalf of Canada and New Zealand, said it was his longstanding view that the scale should be more stable, simpler and more transparent. Efforts towards achieving this were welcome, but the objective was still a long way off. The current methodology of the scale did not produce an accurate reflection of capacity-to-pay. Current contribution rates did not reflect the high and sustained economic growth rates experienced in some parts of the world, nor the declines and painful transitions in others, as a result of elements of the methodology which obscured these changes.

The scale should reflect current capacity to pay, so a shorter base period of three years was appropriate, he said. The Committee on Contributions should limit the use of price adjusted rates of currency exchange, and where Member States had fixed their exchange rates to the United States dollar, such rates should apply. If the debt burden adjustment was maintained, it should be based on actual principle repayments -– the debt-flow approach.

The low per-capita-income allowance deserved close attention, he said. It was the extent of, rather than the fact of, this relief that needed to be reviewed. Its calculation should involve a reduction of total assessable income by the adjustment amount, rather than its reallocation to other Member States. He was opposed to proposed delays in assigning points to Member States moving above the threshold.

The ceiling on assessments also skewed the scale away from capacity-to- pay, he said. The current ceiling conferred a benefit on the largest and wealthiest contributor, the burden of which was borne by others, and that was especially inequitable when the current floor obliged some Member States to pay more than their assessed capacity-to-pay. He was not opposed to a review of the ceiling or the peacekeeping scale in principle, but arguments about movements should be made on their merits, rather than linked to other issues, and with due regard to the effect on other States. Over-reliance on one contributor was not healthy, but he did not support unilateral determination of rates.

The idea of annual recalculation was important, he said. The scale would not change for three years, but the data would be updated, thus allowing assessments to better reflect contemporary realities. While he had advocated the Assembly adopting incentives for prompt payments of assessment, such measures had not been adopted. As Article 19 sanctions remained the only encouragement for prompt payment, the Committee must avoid taking decisions on waivers that undermined its effectiveness. The Committee on Contributions’ proposal that a time-frame be introduced for application for such waivers merited consideration. A thirty-day deadline for the calculation of assessments owed for the purposes of Article 19 should be consistently applied.

He remained committed to a new scale, adopted by consensus, which reasserted the primacy of capacity-to-pay, he said in conclusion.

JASMINKA DINIC (Croatia) said that to reflect current economic reality a three-year base period was appropriate and the question of annual recalculation of the scale was worthy of consideration. He welcomed the continuing use of market exchange rates, and supported the retention of debt- burden adjustment as one of the elements in calculating the scale, using debt flow data.

Low per-capita income adjustment, she said, was a very important element in the scale –- it met the needs of all countries and reflected the capacity to pay of Member States. However, Croatia would support a further reduction in the level of the gradient from 80 per cent, given consensus. It also supported maintaining the minimum assessment rate at 0.001 per cent, but proposed a reconsideration of the application of the maximum rate for the least developed countries.

She said, Croatia supported the implementation of Article 19 of the Charter, since this was the only sanction against Member States that were not meeting their obligations, and the Contributions Committee could further explore a strengthening of the procedure. However, equal treatment of all Member States involved each country being treated individually, on a case by case basis, she stressed.

KISHORE MAHBUBANI (Singapore) said that on his return to the United Nations, after a 10-year absence, many things had changed. However the continuous haggling over the scale of assessments had not, and the debate had only become more acrimonious. All sides had dug themselves deeper trenches, and while it was foolhardy to emerge from one's trench while the battle was raging, that was what must be done to arrive at consensus.

A truce must be declared so trust-building could be undertaken before the discussion of money commenced, he said. The first move had to be made by the United States, as its arrears had contributed to distrust and damaged its reputation. However, trust-building was a two-way street, and all sides must stop sniping. Even if one-side won, the battlefield -– in this case the United Nations -– was always damaged. It had clearly been damaged by the debate over the scale.

The only long-term viable solution was to find a clear and simple formula, he said. The complexity of current formulations was a source of problems. The starting point was clearly capacity-to-pay, and the main indicator was GNP. Due consideration must be given to the low per-capita income. Annual recalculation would only further complicate issues.

In the details, there were clearly problems, he said. The larger contributors resented that despite their contributions, they must abide by the principle of ”one country -- one vote" when it came to budget matters. No contemporary democracy would violate that principle, but the reality was more complex, and in reality the rich usually had more influence on national decisions. Sovereign equality was already compromised in the Charter, and as a consequence permanent members of the Security Council had a much greater say in the selection of the Organization’s chief executive officer -– its Secretary-General.

The permanent five Council Members paid more for peacekeeping assessments, but they were not asked to pay more for the regular budget, he said. There was an argument that could be made that the United States should pay more, rather than less, to the United Nations. Eloquent arguments could continue to be made by all sides but they would not lead to an outcome unless Member States recommitted to their Organization and to capacity-to-pay as the principle for determining assessments. Trust must be re-established before the discussion could move to the details. If it was, he was confident a solution would be found because the amounts concerned were, in fact, relatively small.

U KO KO (Myanmar) said the grave financial crisis of the United Nations had arisen because of the non-payment by some Member States, not because of the scale methodology. Myanmar had always endeavoured to pay its assessed contributions in full and on time. It was imperative that all Member States do the same.

HILAIRE SOULAMA (Burkina Faso) said he wanted to comment on the section of the Contributions Committee’s report that dealt with measures to ensure timely payment of assessments and Article 19 sanctions. The proposals were clearly well-meant, but they might bring about contrary results by penalizing developing countries. For example, to envisage conditioning the provision of troops to payment of assessment would undermine the very foundation of the Organization.

The Organization’s financial situation was going from bad to worse, he said. Member States must pay for the Organization and the principle of capacity-to-pay must remain the essence of what each paid. Because his country was committed to the United Nations, despite its status as a least- developed country, it always tried to live up to the commitment to pay its share of the Organization's budget. While any unilateral decision on payment was unacceptable, any changes to encourage payment must also allow for exemptions for States that were unable to pay.

A solution to the United Nations financial crisis required the exercise of goodwill by all Member States, he said. Respect for the principles of the United Nations Charter was at stake. No alchemy that might have adverse affects on legitimate interests would remedy the problem.

ZIYAD MONAYAIR (Kuwait) supported the recommendation of the Committee on the modalities for reviewing exemptions under Article 19 of the Charter. The main cause of the United Nations financial crisis was not the scale of assessments, but Member States non-respect of their obligation to pay contributions in full and on time. Any revision of the current methodology would have only limited impact if there were still contributions outstanding. There must be a political will on the part of States to pay their contributions. Kuwait was proud of being among the first States that had fully paid their contributions.

The present method of calculating capacity-to-pay had to be more precise, accurate and transparent, he said. The essential principle that had to be taken into account was that all economic factors be considered when those had an impact on the developing countries.

The Contributions Committee would have even greater challenges to overcome at its next session, he said. It would be facing even more difficult decisions. He hoped that the Contributions Committee would be able to come up with even more precise recommendations.

Statements on Pattern of Conferences

GARFIELD BARNWELL (Guyana), speaking on behalf of the “Group of 77” developing countries and China, said he noted the overall use of conference services in New York exceeded the benchmark, with similar trends in Geneva and Vienna. He welcomed the inclusion in the report of figures on Nairobi. The Group wished to reaffirm the position taken by its Foreign Ministers, who had underscored the importance of the United Nations Office at Nairobi as the only headquarters location in the developing world, and stated that it should have the same status as Geneva and Vienna. He reiterated the Ministers’ concerns at the low numbers of meetings held there, and insisted on the necessity of establishing a permanent translation service in Nairobi.

He noted that General Assembly decisions on the format of reports were still not being fully implemented. Full implementation of Assembly decisions must occur, and he sought explanations of non-compliance. The Group was reluctant to consider reports that were presented in accordance with Assembly decisions.

The Group was concerned about chronic delay in submission of documents, he said. Timely submission was particularly important for small delegations. The Documents Distribution Section should be strengthened to assist in improving the timeliness of distribution.

It was also deeply concerned at the suspension of production of some United Nations publications in all official languages, and at the continued high rates of self-revision in translation. Public information material must be available in all official languages on the United Nations web site, in accordance with Assembly resolutions 52/214 and 53/208. The Group would like to receive information from the Secretariat on the implementation of those provisions.

He was also concerned about proposed further reductions in the budget for Conference Services for 2000-2001, he said. In view of the difficulties Conference Services faced, the Group found the proposal difficult to understand. All necessary resources should be provided for its effective functioning.

In order to avoid further imbalance in the rate of utilization of conference services in different duty stations, the Group emphasized the necessity and importance of all United Nations bodies and organs abiding by the headquarters rule, and asked the Committee on Conferences to carefully consider each request before allowing exemptions to this rule.

FARES M. KUINDWA (Kenya), speaking on behalf of the East African Cooperation of Kenya, Tanzania and Uganda, said he was disappointed that little progress had been made on increasing the utilization of conference facilities at the United Nations Office at Nairobi. Kenya raised those concerns not just because of the Offices location, nor because it was the only important United Nations centre in the developing world. More importantly, the Office hosted the headquarters of two very important programmes, the United Nations Environment Programme (UNEP) and the United Nations Centre for Human Settlements (HABITAT).

It was time to move away from rhetoric to tangible measures if the United Nations was serious about improving the capacity of the conference centre at Nairobi. It also made no sense at all that the high-level Committee of Ministers and Officials should be held in Bonn instead of Nairobi. It was disappointing that the excuse for this decision was that the meeting should coincide with the fifth session of the Conference of the Parties to the United Nations Framework Convention on Climate Change.

Kenya welcomed the proposal to establish a permanent interpretation service at Nairobi, he said. That would set an example for other inter- governmental bodies to emulate. He felt that the concern by some delegations about costs involved in transportation and upkeep were unconvincing. Nairobi had already hosted more than 100 missions and had excellent airline connections with the outside world. He hoped that the Nairobi duty station would be adequately addressed in proposals for a system of managed assignments based on career incentives aimed at reducing the excessive vacancy rates at some duty stations. YOON SEONG-MEE (Republic of Korea) said she endorsed the revised draft calendar of meetings and conferences prepared by the Committee on Conferences. She also concurred with the view that every effort should be made to avoid simultaneous peak periods at the various duty stations. She noted the improvements in utilization factors for conference services in New York, Geneva and Vienna for 1998, but remained concerned about the low use rate in Nairobi.

Her country was also concerned at high vacancy rates at small duty stations, she said. She noted the Secretary-General’s efforts to make assignments away from Headquarters more attractive, and awaited more concrete proposals on introducing a system of managed assignments based on career incentives from him.

She noted that the overall level of resources proposed for 2000-2001 for this area reflected a net reduction of 0.8 per cent, she said. Such reductions should be achieved through Organizational cost-saving measures and technological innovations. Economy measures should not adversely affect the delivery and quality of conference services.

MICHELLE MARSTON (Jamaica) said she was concerned about the decline in the number of United Nations bodies that utilized 80 per cent or more of their available conference servicing resources in 1998. Jamaica urged those bodies that were consistently below the established benchmark to take appropriate action to improve the situation.

She noted that the delivery of conference services had been severely affected by economy measures, and wished to be sure that the department was not being stripped bare. There was a need to establish a point at which States were satisfied that no further cuts could be tolerated. She believed that point had been reached. An unexpected increase in the demand for meetings could upset the balance between a decline in workload and a decline in financial resources.

She, too, was concerned at the persistent under-utilization of conference services at the United Nations offices at Nairobi. It could not accept that the only United Nations office located in a developing country was not equipped to handle any possible increase in the utilization of its conference services. Specific policy suggestions were needed, now that the Secretary-General had determined that the provision of permanent interpretation was not cost effective and that there were prohibitive constraints standing in the way of remote interpretation.

M. RIAZ HAMIDULLAH (Bangladesh) said his delegation fully supported the Committee’s recommendations on planning the calendar of conferences and meetings; better use of the United Nations conference facilities at Nairobi -– the only such offices in the developing world; and proposals for improved career development and reducing vacancy rates in the language services.

The adoption of new technology, and in particular the United Nations web site, had benefited the Member States, he noted. He believed that the Secretariat should go forward with imaginative technological ideas that were both effective and efficient.

Bangladesh was concerned about the late issuance of documents, he said. The Secretariat should clearly say what had caused the delay in such cases. His delegation was also concerned, along with many others, about the decrease in the quality of translation and interpretation services over the past few years.

YE XUENONG (China) said the provision requiring equal treatment of all six official languages should be seriously implemented, including on the United Nations web sites. Certain sites needed to be further improved. Search functions needed to be enhanced to better serve users, as anyone who had used the Optical Disk System would agree. In addition, web pages in languages other than English and French lagged behind in updating, content and enrichment.

In its office in Nairobi, the United Nations had its only centre in a developing country, he noted. It should therefore enjoy equal status with other United Nations offices. Its facilities should be completed and utilization rates should be improved. Information about Nairobi utilization rates would help Member States follow the rates of use of the Nairobi office.

There was a consensus by Member States on the need to improve document quality, including in their drafting and translation, he said. The Organization’s management systems must be enhanced to ensure improvement. Late submission of documents remained a longstanding problem. China was encouraged by improvements in coordination on document production, but many documents were still not submitted to the Documents Distribution Section on time, causing delays in printing. Late submission should be addressed. He agreed with the Committee on Conferences’ proposal that reasons for late submission should be included in such reports.

The Department of General Assembly Affairs and Conference Services work was a key part of United Nations activities, he said noting that it faced major challenges next year, including the preparation for the Millenium Assembly. Yet in the 2000-2001 budget proposals, its proposed net resources were 0.8 per cent less than those allocated for the current biennium. The proposed reduction might adversely affect the work of the Department and the Fifth Committee should give this matter due attention when considering the programme budget for 2000-2001.

KOJI F.X. YAMAGIWA (Japan) welcomed that the overall factor for the utilization of conference servicing resources was 81 per cent, and that this exceeded the benchmark. But it was concerned that the utilization factor for meetings held in New York was one point down from the previous year. Serious efforts should be made to rectify a situation in which some bodies under- utilized conference servicing resources over an extended period of time.

He took note of the identification of late submission by author departments as the most important reason for the late issuance of documents. That required a more focused and constructive approach. Also, the system of managed assignments, when properly installed, would, he said, enhance the career prospects of staff members in the language services and improve the functioning of the conference services at centres away from Headquarters.

ABDOU AL-MOULA NAKKARI (Syria) said his delegation attached special importance to the issue of conference services. The provision of conference services was a joint responsibility; it was therefore important to improve them to a level commensurate with the international character of the United Nations. The hallmark of multi-lingualism reflected the unique character of the United Nations.

He did not agree that the provision of remote interpretation services was a genuine alternative to on-site interpretation. Remote interpretation could be implemented on a small scale only; it could not be a new method altogether -- partly because of the high cost. Also, delegates would have to be in face-to-face contact with interpreters prior to the meeting to reconcile terms used in the vernacular and terms used in the language of relay.

His delegation also supported the Secretary-General’s efforts to decrease the vacancy rates in language services. These were on the increase year after year, to the detriment of the services. The increased reliance on self-revision had reduced quality.

He welcomed the start last year of United Nations web sites in Arabic, Russian and Chinese, but noted that the international page for the Arabic language was the only site whose pages appeared as an image that could not be downloaded. He asked why Arabic was being treated differently than other languages. He hoped that the implementation of economy measures would not affect the quality of conference services, and again underlined the importance of those services

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