Summary: 10 November 2009, New York - Statement on behalf of the European Union by Ms. Maria Håkansson, Counsellor, Permanent Mission of Sweden to the United Nations, 64th Session of the General Assembly Fifth Committee, Item 131: Programme budget for the biennium 2008-2009, Capital Master Plan
Mr. Chairman,
I have the honour to speak on behalf of the European Union.
The Candidate Countries Turkey, Croatia* and the former Yugoslav Republic of Macedonia*, the Countries of the Stabilisation and Association Process and potential candidates Albania, Montenegro and Serbia, and the EFTA country Liechtenstein, member of the European Economic Area, as well as Ukraine, the Republic of Moldova and Armenia align themselves with this statement.
Mr. Chairman,
At the outset, I would like to thank the Assistant Secretary-General and Executive Director of the Capital Master Plan Project, Mr. Michael Adlerstein, the Assistant Secretary-General, Controller, Mr. Jun Yamazaki and the Chief of Policy and Oversight Coordination Service, Mr. Mario Baez, for introducing the relevant reports of the Secretary-General, the Director of External Audit of South Africa and the Chairman of the Audit Operations Committee of the Board of Auditors, Mr. Imran Vanker, for
introducing the report of the Board of Auditors for the year ended 31 December 2008 on the Capital Master Plan, and the Chairperson of the Advisory Committee on Administrative and Budgetary Questions (ACABQ), Ms. Susan McLurg, for her presentation of that Committee's report.
Mr. Chairman
The European Union has been a firm supporter of the Capital Master Plan since the proposal was first presented to the Committee nearly a decade ago, and we are pleased to now see the project well under way, despite some ongoing slippage in the construction schedule. We commend the Assistant Secretary-General Mr. Michael Adlerstein for his able leadership and we are encouraged by the work that he and his team has performed so far.
The European Union is however concerned that certain recommendations made by the Board of Auditors, particularly relating to the dual issues of cost estimates and the review of contractual amendments, were not accepted by the Secretary-General. We share the opinion of the ACABQ that the response of the Secretary-General to the concerns raised by the Board of Auditors has not been fully justified, and we will seek greater clarity in this regard during informal consultations.
Mr. Chairman,
We are encouraged to see that the value engineering exercise has resulted in a more cost-effective use of resources, and recognise the healthy cash balance the project enjoys. Furthermore we expect that the Secretariat will seize opportunities presented in the current economic climate to lower costs of contracts and operations in an effort to bring the project back within the agreed budget, while still ensuring the quality and functionality of the project.
Turning to the associated costs, the European Union would once again like to express its regret that these were not built into the original budget proposals for the Capital Master Plan and we remain unconvinced that these costs cannot be absorbed from within the approved budget. We concur with the ACABQ in its view that the associated costs should not include investment costs or long-term commitments and will seek further details on this during informal consultations, bearing in mind that
necessary expenses must be met in order not to compromise the success of the project.
Mr. Chairman,
The European Union will also pursue questions on subjects such as the donations policy and the secondary data centre during informal consultations and we will engage constructively and diligently with other Member States in our discussions to ensure the continued effective and efficient management of the Capital Master Plan.
Mr. Chairman, I thank you.
* Croatia and the former Yugoslav Republic of Macedonia continue to be part of the Stabilisation and Association Process.
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