FIFTH COMMITTEE APPROVES $3.16 BILLION 2004-2005 BUDGET, AS IT CONCLUDES MAIN PART OF FIFTY-EIGHTH SESSION

Fifty-eighth General Assembly

Fifth Committee

30^th Meeting (PM)

FIFTH COMMITTEE APPROVES $3.16 BILLION 2004-2005 BUDGET,

AS IT CONCLUDES MAIN PART OF FIFTY-EIGHTH SESSION

Acting on all outstanding issues, the Fifth Committee (Administrative and Budgetary) this afternoonapproved a 2004-2005 United Nations budget of some $3.16 billion gross and concluded its work for the main part of its fifty-eighth session.

Under the budget’s terms, an estimate for income (other than from staff assessment) amounts to $28.8 million, bringing the net expenditure for the biennium to some $3.13 billion.

The budget has been prepared in accordance with the outline approved at the end of last year and the priorities identified by the General Assembly in the medium-term plan for 2002-2005 and agreed upon at the Millennium Summit and recent global conferences.  The main priorities include the maintenance of international peace and security; promotion of sustained economic growth and sustainable development; development of Africa; promotion of human rights; coordination of humanitarian assistance; promotion of justice and international law; disarmament and drug control, crime prevention and combating international terrorism.

The second budget prepared on the basis of a results-oriented methodology, the document places increased emphasis on the delivery of results within each programme.  To achieve that goal, the budget envisions a range of measures to realize more efficient utilization of resources, including structural reorganization, redeployment of resources, streamlining, issuing guidelines and improving project design.

In an effort to modernize the United Nations, the budget also envisions the first practical steps to implement a long-awaited reform of the budgetary cycle and entrusts the Secretary-General with wider power of redeploying staff on an experimental basis.  By the terms of one of the budget drafts, the Secretary-General would be requested to commence redeployment of posts in 2004-2005, “to meet the Organization’s evolving needs in attaining its mandated” goals.  The experiment would be limited to up to 50 posts and would not imply any change in the human resources management policies of the United Nations.

[The Committee acted on the Advisory Committee on Administrative and Budgetary Questions (ACABQ)’s recommendation on the need to manage the Secretariat staffing table as a whole, keeping the grade level of posts under constant review.  According to the ACABQ’s report on the budget proposal, with departments and offices not “owning” posts at particular grade levels, such an approach would involve exchanges of posts among various units and sections of the budget.]

In an effort to streamline the complex and costly process of planning and budgeting, the Committee recommended preparing, on a trial basis, a two-part strategic framework to replace the current four-year medium-term plan.  Constituting the principal policy directive of the United Nations, it would consist of a plan outline, reflecting the longer-term objectives of the Organization, and a two-year programme plan.  The strategic framework would serve as the basis for programme planning, budgeting, monitoring and evaluation.  A final decision on the matter would be made at the Assembly’s sixty-second session, following a review of experiences gained.

While approving some of the new positions and post conversions, which were presented in the Secretary-General’s budget proposal, the Assembly would also address concerns regarding the high percentage of General Service posts (almost 60 per cent) within the United Nations, particularly in view of significant investments in information and communications technology.  By the terms of the budget draft, in 2004-2005, the Assembly would request the Secretary-General to suspend recruitment of new General Service personnel, with the exception of safety and security personnel and editorial assistants in language functions.  It would also abolish six General Service posts in the Department of Economic and Social Affairs and in the Economic Commission for Europe.

Among the reductions approved on the basis of the Budget Committee’s recommendations would be a $3.2 million decrease in the proposed provision for restoration of common services; a $2.5 million reduction in the general temporary assistance (except for the General Assembly affairs and conference services); and a $2 million reduction in the provision for overtime and night differential, except for security operations.  The Assembly would also defer until 2005 an appropriation for the budgetary provisions for Joint Inspection Unit.

In connection with public information requests, an allocation for information centres would be reduced by $2 million; and total appropriations for publications would be reduced by $400,000.  At the same time, however, an amount of $105,200 would be restored for the Department of Public Information for supplies and materials under outreach services. 

Acting on the contingency fund, which has been created to finance extraordinary and unforeseen expenses, the Committee approved a consolidated statement of programme budget implications and revised estimates, deciding on a number of individual charges in that respect, which total some $9.86 million.

By another draft, to facilitate financing pending receipt of contributions from Member States and in cases of unforeseen expenses, the Committee recommended that the Assembly create a Working Capital Fund for 2004-2005, to which Member States would make advances in accordance with the regular budget scale of assessments.  By a related text, the Secretary-General was authorized -- with prior concurrence of the Advisory Committee and subject to the financial regulations of the United Nations -– to enter into commitments to meet unforeseen and extraordinary expenses arising either during or subsequent to the biennium, including expenses not exceeding $8 million in any single year for the maintenance of peace and security, and an amount up to $500,000 for security measures.

Also this afternoon, the Committee endorsed the conclusions and recommendations of the Committee for Programme and Coordination on the proposed revisions to the medium-term plan for the period 2002-2005, which constitutes the principal policy directive of the United Nations.  Those revisions, for the most part, relate to the latest decisions by intergovernmental bodies and international conferences.

By another draft resolution, the Assembly would approve the draft biennial calendar of conferences and meetings of the United Nations for the next biennium, as submitted by the Committee on Conferences.  The draft also contains provisions on the utilization of conference-servicing resources and facilities, documentation- and publication-related matters, information technology, translation and interpretation.

In other action this afternoon, the Committee made recommendations on such matters as the utilization of the provision for special political missions, the contingency fund, a subvention for the United Nations Institute for Disarmament Research, the information and communication technologies (ICT) framework, a comprehensive review of the post structure of the United Nations Secretariat, and modernization of conference facilities in Nairobi. 

And finally, the Committee approved its programme of work for 2004-2005 and decided to defer to its resumed session consideration of several items and related documents, including those on human resources management, administration of justice within the United Nations, and activities of the Office of Internal Oversight Services.

The Committee also heard closing statements by the Under-Secretary General for Management, Catherine Ann Bertini, and the Chairman of the Committee, Hynek Kmoniček (Czech Republic).

Background

Scheduled to act on all outstanding issues this afternoon, the Fifth Committee (Administrative and Budgetary) had before it numerous texts related to the proposed budget for the next biennium, the pattern of conferences, programme planning and proposals to improve the planning and budgeting process.  It also had before it programme budget implications of several drafts before the Assembly.

By the terms of the draft resolution on the pattern of conferences (document A/C.5/58/L.42), the Assembly would approve the draft biennial calendar of conferences and meetings of the United Nations for 2004-2005, as submitted by the Committee on Conferences, which would be authorized to make adjustments to that calendar in accordance with possible future decisions of the General Assembly.  The draft also contains provisions on the utilization of conference-servicing resources and facilities, documentation- and publication-related matters, information technology, translation and interpretation.

The Committee also had before it a draft resolution on programme planning (document A/C.5/58/L.46), by the terms of which the Assembly would endorse the conclusions and recommendations of the Committee for Programme and Coordination (CPC) on the proposed revisions to the medium-term plan for the period 2002-2005 as contained in the report of the Committee for the work of its forty-third session.  Those revisions, for the most part, relate to the latest decisions by intergovernmental bodies and international conferences.

Also by the text, the Assembly would request the Secretary-General to submit to the Assembly at its fifty-ninth session, through the CPC, a report on priority-setting.  It would also endorse the recommendations of the CPC on the review of efficiency of the administrative and financial functioning of the United Nations and decide to consider a report of the Secretary-General on the practice of involving United Nations programme managers in investigative processes at the first part of its resumed fifty-eighth session.

By a related text -– a draft resolution entitled Strengthening of the United Nations:  an agenda for further change (document A/C.5/58/L.47) -- the Assembly would take up the proposals to improve the current process of planning and budgeting.  Stressing that setting the priorities is the prerogative of Member States, which need to participate fully in the budgetary preparation process from its early stages, the Assembly would ask the Secretary-General to prepare, on a trial basis, for submission at its fifty-ninth session, a strategic framework to replace the current four-year medium-term plan, which would comprise in one document a plan outline, reflecting the longer-term objectives of the Organization; and a programme plan, to cover two years.

At the same time, it would decide that the budget outline, which would be submitted for consideration after the adoption of the strategic framework, would continue to provide the same level of detail as at present.  After their approval, the budget outline and strategic framework will together form the basis for preparing the proposed programme budget.

The strategic framework, as outlined above, would constitute the principal policy directive of the United Nations and would serve as the basis for programme planning, budgeting, monitoring and evaluation.  Prior to taking a final decision on the matter at its sixty-second session, the Assembly would return to the issue, reviewing the experiences gained with the changes made in the planning and budgetary process.

Addressing the role of the CPC, the Assembly would also decide that it would no longer consider the budget outline, but would review the programmatic aspects of the new and/or revised mandates approved by the Assembly subsequent to the adoption of the biennial programme plan, as well as any differences that arise between the biennial programme plan and the programmatic aspects of the proposed programme budget.  The Committee would also be invited to submit at its next session proposals on enhancing its role in monitoring and evaluation and recommendations on improving its effectiveness.

Also by the text, the programme narratives of the programme budget fascicles would be identical to the biennial programme plan; the current format of the budget proposal and the level of information contained therein would remain the same.

Emphasizingthe need to strengthen the monitoring and evaluation system, the Assembly would also urge the Secretary-General to improve the format and timing of programme performance and evaluation reports; ensure that resources are clearly identified in all the sections of the proposed programme budget for the performance of the monitoring and evaluation functions; and entrust the Office of Internal Oversight Services, in collaboration with the Joint Inspection Unit, with submitting proposals on the strengthening and monitoring of programme performance and evaluation, for consideration at its sixtieth session.

Proposed Programme Budget for 2004-2005

The first document under this agenda item is A/C.5/58/L.53, which contains 11 draft decisions related to programme budget implications of various drafts before the Assembly.

According to part A of the text, no appropriation from the contingency fund would be sought if the Assembly adopts draft resolution A/C.6/58/L.18 related to the Special Committee on the Charter of the United Nations on Strengthening the Role of the Organization.

Part B is a statement on programme budget implications of the First Committee (Disarmament and International Security) draft (document A/C.1/58/L.1/Rev.1), by the terms of which the Assembly would decide to convene in June-July 2006 a conference to review implementation of the Programme of Action to Prevent, Combat and Eradicate the Illicit Trade in Small Arms and Light Weapons in All Its Aspects.  Should the Assembly adopt the text, an additional provision of some $1.37 million –- a charge against the contingency fund -- would be required for 2004-2005 to prepare for the conference.

Regarding the financing of the International Research and Training Institute for the Advancement of Women (INSTRAW), by the terms of part C of the text, the Committee would inform the Assembly that should it adopt draft resolution A/C.3/58/L.36, an amount of $234,700 would be set aside in the contingency fund for the biennium to provide the Institute with complementary funds, if needed.

Part D relates to draft resolution A/C.3/58/L.78, concerning the Ad Hoc Committee on a Comprehensive and Integral International Convention on the Protection and Promotion of the Rights and Dignity of Persons with Disabilities.  By the text, the Assembly would endorse the Ad Hoc Committee’s decision to establish a working group, which would prepare a draft for negotiations on the convention.  It would also decide that prior to the fifty-ninth session of the Assembly, the Ad Hoc Committee should hold, within existing resources, two 10-day sessions in 2004.

The Fifth Committee would inform the Assembly that should it adopt the draft, a provision of $626,200 would be required in 2004-2005, which would represent a charge against the contingency fund.

According to part E, programme budget implications of draft resolution A/58/L.19 on the law of the sea would amount to $305,600 as a charge against the contingency fund.  By the terms of the draft, the Assembly would address the need to establish a regular process for global reporting and assessment of the state of the marine environment by 2004.  Among those steps, a group of experts would be convened to produce a draft document with details on the scope, general framework and outline of the regular process, peer review, secretariat, capacity-building and funding.  An international workshop with representatives from all interested parties would also be convened, in conjunction with the fifth meeting of the United Nations Open-ended Informal Consultative Process on oceans and the law of the sea.  Moreover, an intergovernmental meeting to formally establish the regular process would be convened in Reykjavik, Iceland, in 2004.

Part F contains programme budget implications of the Second Committee (Economic and Financial) draft on the implementation of the United Nations Convention to Combat Desertification in Those Countries Experiencing Serious Drought and/or Desertification, Particularly in Africa (document A/C.2/58/L.7/Rev.1).  Additional requirements arising out of possible adoption of the text amount to some $1.34 million for holding the seventh session of the Conference of the Parties to the Convention and its subsidiary bodies.  It would represent a charge against the contingency fund.

In connection with a Second Committee draft on protection of global climate, the Fifth Committee, in part G of the text, would inform the Assembly that should it adopt the draft, a provision of $3.39 million would be required in 2004-2005 as a charge against the contingency fund.

Part H concerns a draft resolution on the Office of the Special Representative for Children and Armed Conflict (document A/C.3/58/L.28, as orally revised).  The Fifth Committee informs the Assembly that any appropriations needed in connection with the draft would be considered no later than the first part of its resumed session.

In connection with resolution A/58/L.38 on the situation in Central America, by the terms of which the Secretary-General would continue to provide good offices, as well as substantive support and political guidance in that region, the Fifth Committee, in part I of the draft, would decide to inform the Assembly that should it adopt the text, an amount of $218,000 would be charged against the provision for special political missions of the proposed budget for the biennium.

According to part J of the draft, programme budget implications of a draft resolution (document A/58/L.30) on the final year-long renewal of the mandate of the United Nations Verification Mission in Guatemala (MINUGUA) through 31 December 2004 amount to some $6.72 million, to be charged against the provision for special political missions in the proposed budget for 2004-2005.

And finally, in part K of the draft, the Fifth Committee informs the Assembly that should it adopt draft resolution A/C.3/58/L.68/Rev.1 on the situation of human rights in Myanmar, an amount of $245,900 would be charged against the provision for special political missions in the proposed budget for 2004-2005.

The Committee also had before it a draft resolution on the questions relating to the proposed programme budget for the biennium 2004-2005 (document A/C.5/58/L.48), which determines the priorities for the budget, provides justification for decisions and describes the main budget sections.

By the text, the Assembly would endorse the narrative of the budget proposal as presented by the Committee for Programme and Coordination, subject to the modifications reflected in Annex I of the draft.  Also subject to the provisions of the draft, the Assembly would endorse the recommendations of the Advisory Committee on Administrative and Budgetary Questions (ACABQ) concerning post and non-post resources for 2004-2005.

Regarding the human resources aspects of the budget, by the terms of the draft resolution, the Assembly would address the Advisory Committee’s recommendation to manage the Secretariat staffing table as a whole, keeping the grade level of posts under constant review.  According to the ACABQ’s report on the budget proposal, with departments and offices not “owning” posts at particular grade levels, such an approach would involve exchanges of posts among various units and sections of the budget.

In that connection, on an experimental basis, the Secretary-General would be requested to commence redeployment of posts in 2004-2005, “to meet the Organization’s evolving needs in attaining its mandated” goals.  The experiment would be limited to up to 50 posts and would not imply any change in the human resources management policies of the United Nations.  It would not apply to language services and would not be implemented in connection with resolutions calling for the implementation of decisions within existing resources.

Among other provisions, the text contains paragraphs that make it clear that the authority to redeploy posts would in no way prevent the Secretary-General from requesting additional posts and that the experiment would not exacerbate high vacancy rates in any budget sections.

Acting on the post requests presented by the Secretary-General in his budget proposal, the Assembly would approve some of the new positions and post conversions.  However, responding to the concern of the Advisory Committee regarding the high percentage of General Service posts (almost 60 per cent), particularly in view of significant investments in information and communications technology, the Assembly would request the Secretary-General to suspend recruitment of new General Service personnel for the biennium with the exception of safety and security personnel and editorial assistants in language functions.  It would also abolish six General Service posts in the Department of Economic and Social Affairs and in the Economic Commission for Europe (ECE).

Among the reductions approved on the basis of the Budget Committee’s recommendations would be a $3.2 million decrease in the proposed provision for restoration of common services; a $2.5 million reduction in the general temporary assistance (except for the General Assembly Affairs and Conference Services); and a $2 million reduction in the provision for overtime and night differential, except for security operations.  The Assembly would also defer until 2005 an appropriation for the budgetary provisions for the Joint Inspection Unit.

In connection with public information requests, an allocation for information centres would be reduced by $2 million; and total appropriations for publications would be reduced by $400,000.  At the same time, an amount of $105,200 would be restored to the Department of Public Information for supplies and materials under outreach services.  The Secretary-General would be requested to conduct, through the Office of Internal Oversight Services, a review of the operation and management of the Organization’s libraries, with a view to reducing their staffing requirements in light of technological advances and delivery of information services.

The Assembly would request the Secretary-General to continue to implement the information and communications technology strategy and provide a progress report thereon to the next session of the Assembly.  At the same session, the Secretary-General would be requested to make proposals in connection with a comprehensive review of the regular programme of technical cooperation, which he would also be asked to undertake.

In connection with the efforts to reduce the level of under-representation of Member States and the number of under-represented countries, the Secretary-General would be requested to report during the fifty-ninth session on proposals to develop a more robust capability of the Office of Human Resources Management in that respect.  The Oversight Office would be entrusted to conduct a study on the availability in local labour markets of the skills for which international recruitment now takes place.

To ensure independence of the United Nations Administrative Tribunal, the Assembly would request the Secretary-General to ensure that its secretariat is separated from the Office of Legal Affairs.  As for the proposal to transfer the technical secretariats of the Fifth and Sixth Committees to the Department for General Assembly and Conference Management, the Assembly would defer its consideration of the matter with a view to taking a decision in the context of the 2006-2007 budget proposal.

Several paragraphs of the draft are devoted to the efforts to find the most appropriate mechanism for managing the currency aspects of recosting methodology.  Under the current practice, the budget figure is adjusted several times during the budget cycle to account for inflation and exchange rate fluctuations.  Deciding to revert to the question in the context of the first performance report for the biennium, the Assembly would request the Secretary-General to include in that document information on the variation between projected recosting needs as of October 2003 and the time of his report.  The Board of Auditors would be requested to examine the recosting methodology and propose the most appropriate mechanism for managing the currency aspects of the budget.

For now, the Assembly would decide to maintain the current recosting practice, with the exception of the regular programme of technical cooperation under section 23 of the budget, to which recosting would not be applied.

The budget is to be presented to the Assembly in draft resolutions A/C.5/58/L.49, A/C.5/58/L.50, A/C.5/58/L.51, A/C.5/58/L.52 and A/C.5/58/L.56 (Parts I and II).  The texts contain the proposed programme budget of the United Nations for 2004-2005, the Committee’s recommendations on special subjects and a two-part report of the Fifth Committee.

The programme budget for the biennium 2004-2005 (document A/C.5/58/L.49) totalling $3.16 billion, is appropriated for the following:

SECTION	Thousands of U.S. Dollars
Overall policy-making, direction and coordination	593 884.9
Political affairs	349 252.2
International justice and law	70 245.4
International cooperation for development	336 495.3
Regional cooperation for development	388 613.7
Human rights and humanitarian affairs	170 670.5
Public information	155 869.9
Common support services	516 168.9
Internal oversight	23 227.2
Jointly financed administrative activities and special expenses	102 445.3
Capital expenditures	58 651.3
Staff assessment	382 270.7
Development Account	13 065.0
Total	3 160 860.3

An estimate for income (other than from staff assessment) amounts to $28.8 million, bringing the net expenditure for the biennium to some

$3.13 billion.

A document containing recommendations related to various aspects of the 2004-2005 budget (document A/C.5/58.L.50) contains 17 draft resolutions and four draft decisions recommended by the Committee.

By the terms of draft resolution I on information and communication technology strategy, the Assembly would take note of the Secretary-General’s report and welcome the steps being taken to address all requests contained in its resolution 57/304 in connection with the strategic information and communication technologies (ICT) framework, which is being developed by the Secretary-General.  It would further reiterate the need to indicate the return on investment for planned and proposed major projects in terms that are as quantitative as possible.  It also took note of the report of the Joint Inspection Unit, the comments of the Secretary-General and those of the United Nations System Chief Executives Board for Coordination thereon, and the related report of the ACABQ.

By draft resolution II on the comprehensive review of the post structure of the United Nations Secretariat (document A/C.5/58/L.22) the Assembly would take note of the report of the Secretary-General on the comprehensive review of the post structure of the United Nations Secretariat and of the related report of the ACABQ.

By draft resolution III, the Assembly would approve a request for a subvention of $227,600 for the United Nations Institute for Disarmament Research for the year 2004 from the approved regular budget of the United Nations, on the understanding that no additional appropriation would be required under section 4, Disarmament, of the proposed programme budget for the biennium 2004-2005.  It would further request the Secretary-General to report at the main part of the fifty-ninth session on the continuing need for a subvention to the Institute, taking into account previous reports and any relevant decisions on the issue of subventions.

By the terms of draft resolution IV on improving and modernizing the conference facilities at the United Nations Office at Nairobi in order to accommodate adequately major meetings and conferences (document A/C.5/58/L.31), the Assembly would authorize the modernization of the existing conference facilities at the United Nations Office at Nairobi and appropriate related resources under section 33 -- construction, alteration, improvement and major maintenance -- of the 2004-2005 proposed programme budget to finance the modernization, on the understanding that within the overall appropriation an amount of some $1.03 million would represent a charge against the contingency fund, if approved in the context of the Assembly’s consideration of the consolidated statement of programme budget implications and revised estimates to be submitted by the Secretary-General.

By further terms of the text, the Assembly would also decide to approve the utilization of some $1.02 million for the modernization of the existing conference facilities at the Nairobi Office, to be financed with the available balance of the construction-in-progress account, subject to the decision mentioned above.

Through a text on special political missions -– estimates in respect of matters of which the Security Council is seized (draft resolution V), the Assembly would approve a charge of $133.12 million for the 17 special political missions contained in table I, part II, of the Secretary-General’s report, and also approve a further charge of $2.17 million for the United Nations Mission in Côte d’Ivoire, for the period 1 January through 4 February 2004, consequent to the adoption of relevant resolutions.  It would finally approve some $7.19 million for the three special political missions emanating from General Assembly decisions and also presented in table I of the Secretary-General’s report.  All of those funds would be put against the provision for such missions under section 3, Political affairs, of the proposed programme budget for the biennium 2004-2005.

By draft resolution VI on Joint Inspection Unit, the Assembly would approve the gross budget for that Unit, in the year 2004, in the amount of $4.9 million, and decide to take action on the corresponding 2005 budget in context of the first budget performance report for the biennium 2004-2005.

Draft resolution VII on the International Civil Service Commission would have the Assembly approve $14.7 million as the gross budget for that body, for the biennium 2004-2005.

Another text -– draft resolution VIII -- concerning the Office of the United Nations Security Coordinator (UNSECOORD), would set that Office’s budget at   $86.4 million for the 2004-2005 biennium.

Also before the Committee was draft resolution IX on revised estimates resulting from resolutions and decisions of the Economic and Social Council at its substantive session of 2003, which takes note of the Secretary-General’s report on that subject and invites the Council to review its decision 2003/264, on a Social Forum before sessions of the Subcommission on Human Rights in that light.  It also requests the Secretary-General to provide required conference services related to Council decision 2003/269 and report on such expenditures to the Council, deciding that $193,800 would be set aside as a contingency fund for such services.

By draft resolution X on administrative expenses of the United Nations Joint Staff Pension Fund, the Assembly would approve expenses, chargeable directly to that Fund, totaling $80.77 million net for administration of the Fund for the biennium 2004-2005, with no change in the initial appropriation of $74.38 million for the corresponding 2002-2003 expenses.  It would also approve an additional $1.5 million above the level of resources under section I, Overall policy-making, direction and coordination, of the regular budget of the United Nations for the biennium 2004-2005, as the Organization’s share of those expenses for the central secretariat.  It would authorize the Pension Board to supplement the voluntary contributions to the Emergency Fund for that same biennium by an amount not exceeding $200,000.

By draft resolution XI, on special political missions, the Assembly would note that an unallocated balance of $26.95 million remained against the provision of $16.43 million for special political missions.

On the proposed programme budget for the International Trade Centre UNCTAD/WTO (draft resolution XII), the Assembly would approve $23.47 million for the 2004-2005 biennium under section 13 of that Organization’s operations.

Through draft resolution XIII on the effect of changes in rates of exchange and inflation, the Assembly would take note of the revised estimates arising from recosting due to those phenomena.

Draft resolution XIV deals with financial viability of the United Nations Institute for Training and Research (UNITAR).  By this text, the Assembly would cancel the debt of the Institute in respect of rental and maintenance charges in the amount of $321,184.  It would also request the Executive Director to rationalize the financial structure of the Institute.

By draft resolution XV, the Assembly would take note of the Secretary-General’s report on cost implications of providing more predictable and adequate conference services to the meetings of regional and other major groupings of Member States and a related ACABQ report.

Draft resolution XVI on the contingency fund would have the Assembly note that a balance of $11.31 million remains in it.

By draft resolution XVII, the Assembly would reiterate relevant paragraphs of its resolution 56/288, in which it requested the Secretary-General to ensure the provision of conference and support services to the Counter-Terrorism Committee without adversely affecting other conference services.  It would also appropriate some $8.19 million to support the meeting requirements of the Committee in 2004-2005.

Draft decision I contained in the same document would have the Assembly take note of the Secretary-General’s report on implementation of projects from the Development Account and concur with the recommendations of the Advisory Committee in that respect.

By draft decision II, the Assembly would note that the effects of inflation and currency fluctuations on the budget can be both positive and negative.  It would also take note of related Secretary-General’s and ACABQ reports.

By the terms of draft decisions III and IV, the Assembly would take note of reports related to the proportion of General Service staff to Professional staff in the regional commissions and to the work of the United Nations Fund for International Partnerships.

In addition to those texts, a compendium of all Fifth Committee resolutions and decisions, part II of the Committee’s report, also contains decision V related to the capital master plan, by which the Assembly would take note of several documents on that matter.

By the terms of decision X, the Assembly would take note of the reports on the administration and management of the Office of United Nations High Commissioner for Human Rights.

Decision Y would have the Assembly take note of the Secretary-General’s statement on the administrative and financial implications of the decisions and recommendations contained in the report of the International Civil Service Commission (ICSC) for 2003 and a related report of the ACABQ.

By the terms of a draft resolution on unforeseen and extraordinary expenses for the coming biennium (document A/C.5/58/L.51), the Assembly would authorize the Secretary-General -- with prior concurrence of the Advisory Committee and subject to the financial regulations of the United Nations -- to enter into commitments to meet unforeseen and extraordinary expenses arising either during or subsequent to the biennium.  By the text, such commitments include an amount not exceeding

$8 million in any one year of the biennium in connection with the maintenance of peace and security; some of the expenses occasioned by the International Criminal Court; and a total of $500,000 for inter-organizational security measures.

Should a decision of the Security Council result in the need to enter into commitments relating to the maintenance of peace and security in an amount exceeding $10 million, that matter would be brought before the General Assembly.

Also before the Committee was a draft resolution on the Working Capital Fund for 2004-2005 (document A/C.5/58/L.52), by which the Assembly would establish such a fund, to which Member States would make advances in accordance with the 2004 scale of assessments for the regular budget of the Organization.  The Secretary-General would be authorized to advance from the Fund such sums as may be necessary to finance budgetary appropriations pending the receipt of contributions; amounts needed for unforeseen and extraordinary expenses and other payments.

By the terms of draft resolution A/C.5/58/L.54, the Assembly would defer to its resumed session consideration of several items and related documents, including those on human resources management, administration of justice within the United Nations, and activities of the Office of Internal Oversight Services.

Action on Drafts

Acting on all outstanding issues for the main part of the session, the Committee first took up a draft resolution on the pattern of conferences (document A/C.5/58/L.42).  The document was introduced by ABDELMALEK BOUHEDDOU (Algeria) and approved without a vote.

NONYE UDO (Nigeria) introduced a draft resolution on programme planning (document A/C.5/58/L.46).  The text was approved without a vote.

The Committee then approved -– also without a vote -– a draft resolution entitled Strengthening of the United Nations:  an agenda for further change (document A/C.5/58/L.47), which was presented by JAIDEEP MAXUMDAR (India).  He also introduced a small editorial amendment to the text.

As the Committee turned to the budget for the next biennium, FELICITY BUCHANAN (New Zealand) introduced A/C.5/58/L.53, which contains 11 draft decisions related to programme budget implications of various drafts before the Assembly.  All were approved without a vote.

The Committee then approved, without a vote, a draft resolution on the questions relating to the proposed programme budget for the biennium 2004-2005 (document A/C.5/58/L.48).  The text was presented by AIZAZ CHAUDHRY (Pakistan), who also introduced several corrections to the draft.  He also said that in his opinion, the text contained many distinguishing traits:  it was short and action-oriented.  Its implications were well known, and there were no surprises, or ambiguities.  It had a reasonable number of reporting requests, which would allow the Secretariat to produce high-quality reports.

The budget resolution should not become an omnibus for all policy prescriptions, he continued.  It should only translate the agreed policy into action, and the draft before the Committee did just that.  He hoped that in the future, the current format would be retained.  He hoped that the budget would result in a stronger United Nations.

Prior to the approval of the text, the representative of Italy (on behalf of the European Union and associated States) recalled his delegation’s earlier statement that it wanted “to fill the ship with fuel, but with an engine that is capable of travelling at full stem ahead”.  In that respect, he was glad that, notwithstanding many difficulties, that target had been achieved.  The Organization now had a new budget amounting to $3.16 billion, which was intended to allow the Organization to accomplish its increased international mandates.

At the same time, the draft included the first practical steps to effectively implement the long-awaited reform of the budgetary cycle and entrusted the Secretary-General with wider power of redeploying staff on an experimental basis.  Those reforms would help to modernize the United Nations and would produce incremental results and further efficiency gains in the future.  He particularly stressed the importance of the reform of the Joint Inspection Unit, which should progress in the first resumed session.

The representative of Morocco (on behalf of the “Group of 77” developing countries and China) said that while the last few days had seemed very difficult, she appreciated the cooperation and constructive attitude displayed by the negotiating partners.  The Fifth Committee had a collective responsibility to approve funding for the Organization for the next two years, and the Group considered the outcome of the negotiations on the budget to be a true reflection of the “broadest possible agreement” espoused in General Assembly resolution 41/213.

The Group attached great importance to the work of the Organization and the need to ensure its effective and smooth functioning, she continued.  It had consistently maintained the position that resources proposed by the Secretary-General and approved by the Assembly must be commensurate with the mandates given by the Member States.  She hoped the resources approved today would be adequate for the proper discharge of the Organization’s mandates.  The Group would continue to contribute to the ongoing reform process, with a view to ensuring that the Organization was able to efficiently implement its programmes and activities.

Committee Secretary MOVSES ABELIAN then also introduced a correction to the text.

Also prior to action, the representative of the United States joined others in expressing his appreciation to all those who had contributed to the agreement on the text.  The negotiations had sometimes been difficult and frustrating, but as a result of the Committee’s work, a short budget resolution was going to be approved, which contained many innovations and reforms.

The representative of the Russian Federation associated himself with the previous speakers’ words of gratitude and thanks.  The budget would be adopted in the interests of the Organization and all Member States, allowing the United Nations to carry out its mandated activities.

Speaking after the approval of the text, the representative of Japan expressed appreciation for administrative and budgetary progress in the United Nations. However, though accepting the budget resolution, he expressed serious concern over the drastic increase in the level of the United Nations regular budget.  The sharp increase in the assessments for his Government directly translated, he said, in a diminution in the amount the country could allocate to voluntary contributions to development and humanitarian organizations.  That should not happen in the name of strengthening the United Nations.

He appealed to Member States to rethink the priorities in the allocation of such finite resources.  In addition, he said that it was absolutely critical that the Secretariat provide responsible explanations of expenditures to Member States, since governments such as that of Japan were held accountable to their taxpayers.

Committee Chairman HYNEK KMONICEK (Czech Republic) then introduced a number of draft resolutions, beginning with draft resolution entitled Programme budget for the biennium 2004-2005 (document A/C.5/58/L.49).  That text was adopted without a vote.

The Committee then turned to the draft resolution, entitled special subjects relating to the proposed programme budget for the biennium 2004-2005 (document A/C.5/58/L.50), which was adopted without a vote.

The draft resolution on unforeseen and extraordinary expenses for the biennium 2004-2005 (document (A/C.5/58/L.51) was then considered and adopted without a vote.

After considering the draft resolution on the Working Capital Fund for the biennium (document (A/C.5/58/L.52), the Committee adopted it also without a vote.

The CHAIRMAN then drew the attention of the Committee to the draft report of the Fifth Committee on the proposed programme budget for the biennium 2004-2005(document (document A/C.5/58/L.56, Parts I and II).

The Committee then resumed its consideration of agenda item 119, entitled “Review of the efficiency and the administrative and financial functioning of the United Nations”, considering two draft decisions contained in the biennial programme of work of the Fifth Committee (document A/C.5/58/L.55); and questions deferred for future considerations (document A/C.5/58/L.54).  After the Committee Secretary pointed out corrections to be made to the text, both were adopted without a vote.

Also, prior to the adoption of draft decision A/C.5/58/L.54, the Committee was informed that the first part of the resumed fifty-eighth session would be held from 8 to 31 March 2004 and the second from 8 to 31 May 2004.

With the conclusion of items under consideration, the Under-Secretary-General for Management, CATHERINE ANN BERTINI, gave concluding remarks.  She congratulated members of the Committee for having passed the budget, as well as the reform measures, a scale of assessment and other accomplishments.  Overall, a reasonable budget level had been achieved.  Regarding a suspension of General Service recruitment, she asked Member States to consider the important contribution of those staff members.  The decision should be implemented with that in mind.  She thanked all who had contributed to the Committee’s work.

Calling the Committee negotiations a very interesting experience, HYNEK KMONÍČEK (Czech Republic), Chairman of the Committee, then thanked Committee members and wished everyone a happy new year.  The representative of the Dominican Republic, on behalf of the Latin American and Caribbean Group, also thanked the bureau.

The CHAIRMAN then declared closed the Fifth Committee during the main part of the fifty-eight session of the General Assembly.

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