Summary: March 17, 2004: Statement by Ms. Margaret Stanley, Second Secretary, on behalf of the European Union, on Item 134. The Administrative and Budgetary Aspects of Financing of Peacekeeping Operations (New York)
Mr. Chairman,
I have the honour to speak on behalf of the European Union. The Acceding Countries Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, and Slovenia, the Stabilization and Association Process Countries, Albania, Bosnia and Herzegovina, Croatia, the Former Yugoslav Republic of Macedonia and Serbia and Montenegro, the Associated Countries Bulgaria, Romania and Turkey and the EFTA countries, members of the European Economic Area, Iceland, Liechtenstein and
Norway, declare that they align themselves with this statement.
We wish to thank Ms. Catherine Pollard, Director of the Peace-kkeping Financing Division, and Mr. Vladimir Kuznetsov, Chairman of ACABQ, for their introductions to this item. The Secretary-General's report contained in document A/58/723 on the implementation of paragraph 3 of GA Resolution 57/323 proposes the postponement of the return of $84,446,000 to Member States from closed mission accounts.
We note that the Secretary-General proposes the retention of these funds because of the immediate cash needs of new and expected peacekeeping missions. We also take note of his statement that there is a significant time-lag between the approval of assessments and the collection of contributions. We stand ready to discuss this issue further.
The European Union strongly believes that any decision in favour of retaining these funds would not be a solution to the UN's ongoing dire financial situation, and would merely be a temporary band-aid for a much wider problem. The EU believes it is important to consider in detail not only the effects but the causes of this problem. Let us be frank, those member states that pay on time and in full are effectively subsidising those that do not. Allowing the Secretariat to retain member states'
money from closed missions is simply another form of subsidy. This is an unacceptable state of affairs.
The reason the UN is facing a shortfall is the late or non-payment by many member states of their assessments. This will be compounded this year by increasing budgets for Peacekeeping Operations and Tribunals. In this respect, the EU would urge the United States to actively review and adjust its payments schedule to ensure the financial viability of the UN throughout the year.
Mr Chairman, the European Union will reiterate the position it has consistently taken, in line with the Charter, of full, timely and unconditional payments by all member states. We would, therefore, request a clear statement from the Secretary-General on the causes of the cash-flow problems, especially in peacekeeping, as well as inventive ideas on ways of rectifying it.
Thank you Mr. Chairman.
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