EU Presidency Statement - Improving the financial situation of the UN

EU Presidency Statement on Item 126: Improving the financial situation of the United Nations by the Permanent Mission of the United Kingdom to the United Nations on behalf of the European Union, Fifth Committee, United Nations, New York

Thank you Mr Chairman. I have the honour to speak on behalf of the European Union. The Acceding Countries Bulgaria and Romania, the Candidate Countries Turkey and Croatia*, the Countries of the Stabilisation and Association Process and potential candidates Albania, Bosnia and Herzegovina, the former Yugoslav Republic of Macedonia, Serbia and Montenegro, EFTA country Liechtenstein, member of the European Economic Area, as well as Ukraine and the Republic of Moldova align themselves with this declaration.

On behalf of the EU, I thank the Controller Mr Warren Sach for his briefing on 13 October on the financial situation of the UN.

Mr Chairman, reform is this year's slogan. The Summit adopted a series of decisions designed to equip the UN with the means to respond more effectively to the needs and challenges of today and those of tomorrow. Yet there is one area where we have seen no real movement and that is on the timely payment in full of contributions to the UN.

We demand that the United Nations become more efficient. Yet by mid October, they are still waiting for one third of their regular budget to be paid, ninety per cent of that debt owed by just 3 Member States. We mandate several large-scale peacekeeping missions. And yet, there is a more or less permanent debt of $2billion from Member States.

The Secretariat warn us twice a year that they need to be able to count on full and timely payment of assessed contributions in order to plan and execute efficiently the programmes that we have mandated. A handful of States admirably respond with payments within the thirty-day deadline. The rest of the Member States manage to pay within the first few months, in spite of the difficulties of early prediction of resource requirements. But some MS consistently pay not at all or so late that the UN is on the verge of severe cash flow difficulties by the time their contributions do come through. This is not an efficient way to run a multi-billion dollar organisation.

The European Union therefore asks that all Member States take their obligations to the Organisation as seriously as they expect the Secretariat to take theirs and to take steps to change payment schedules for the Regular Budget where these are endangering the efficient functioning of the organisation.

Because of the lack of financial stability and predictability, the Organisation has been unable to reimburse some Troop Contributing Countries promptly. The largest TCCs are developing countries. Many are participating or have been asked to participate in more than one Peacekeeping operation. They have a legitimate expectation to be reimbursed fully and quickly. Until this Committee is able to have a substantive debate on late payments then TCCs will continue to face delayed reimbursements. However, where delays in TCC reimbursement are caused by delays in signing Memoranda of Understanding, we urge that this issue be addressed by those responsible as a matter of urgency. We do not expect to be presented with revised PK mission budgets simply because they are running low on cash, as was the case earlier this year with 2 missions. We note furthermore that the difficult cash position of MONUC will not be helped by the very late issuance of the MONUC budget which will inevitably delay the issuing of assessments for this mission. Meanwhile, the Secretariat repeatedly requests, and have done so again this session, the retention of funds in closed peacekeeping accounts that have been owed to us for many years now.

We are relieved that the financial situation of the International Tribunals has eased compared to previous years. Nevertheless, the projection of a cash deficit at the end of the year for the Rwanda Tribunal is worrying. It is also disappointing that a few MS have for more than ten years paid nothing at all towards Tribunal costs. We would urge them to demonstrate their commitment both to international justice and to Charter Article 17, i.e. to the Organisation, by making payments soon.

I thank you Mr Chairman.


* Croatia continues to be part of the Stabilisation and Association Process

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• EU Presidency Statement - 5th Committee: Review of Efficiency (12/10/2005)
• EU Presidency Statement - 5th Committee: Programme of Work (10/10/2005)
• EU Presidency Statement - Board of Auditors  (10/10/2005)
• EU Presidency Statement - Joint Inspection Unit (10/10/2005)