Statement delivered by Senator Kerry O’Brien, Permanent Mission of Australia to the United Nation on Item 126: Improving the Financial System of the United Nations
October 28, 2008
(As delivered)
Mr Chairman
I have the honour to speak today on behalf of Canada, Australia and New Zealand. Our delegations thank Under Secretary-General Kane for her presentation on the financial situation of the UN on 28 October. This information allows us to take a broader view of UN finances and assess how we, as Member States, are acquitting our responsibilities to the Organisation. Unfortunately, year in year out, the picture that is presented is not particularly positive. This matter becomes even more salient at a moment when the world is faced with a very uncertain financial climate.
We are concerned to note that the UN’s financial situation in 2008 is not generally better than in 2007. One consolation is that unpaid assessments for the Tribunals and the Capital Master Plan budgets have decreased in comparison to October 2007. We note that regular budget assessments and payments were both lower – and the decrease in assessments results from budget adjustments, primarily for special political missions. Funding for these missions will in turn see an increase to the 2008 regular budget assessment. The situation for unpaid peacekeeping budget assessments is mixed. The total outstanding, US$2.9 billion, is a huge amount. It is also approximately US$198 million higher than end 2007, but at the same time, it is US$575 million lower than 31 October 2007.
Mr Chairman
Turning now more specifically to the regular budget, we note that 133 Member States had paid their regular budget contribution by 24 October, seven higher than at the same time in 2007 but ten less than end-2000 which, with 143 fully paid Member States, is a total we should aim to beat. Unfortunately, 59 Member States of this Organisation have chosen not to comply with their obligations under the Charter, with one Member State accounting for 94% of the amount outstanding.
The liquidity necessary to ensure efficient, full and effective implementation of mandated programmes depends on the timely and full payment of assessed contributions. In that regard, we are concerned the UN may have to borrow just under US$150 million from reserve accounts to cover regular budget expenditure unless arrears are significantly addressed in the short-term. We hope that Member States will fulfill their Charter obligations at the earliest time possible, paying in full and without condition, lest delivery of UN programmes in 2008 be compromised.
Mr Chairman
We are disappointed the peacekeeping budget situation remains grave with $2.9 billion outstanding and only 31 countries paid in full. With peacekeeping missions increasing in number, size and complexity, it is essential that sufficient resources are provided for missions to effectively carry out their mandates. We urge the 161 Members that have not yet paid their assessments to do so in full and without condition; not doing so puts the UN military and civilian personnel on the ground, and the people they are trying to help, at risk, and contributes to delays in reimbursing troop-contributing countries.
We have noted Under Secretary-General Kane’s advice regarding the likely retention of a projected $227 million in the closed mission accounts in order to manage cash shortfalls in other accounts. As we have raised before, the decision to retain funds continues to penalize those Member States who have paid their assessments, in order to manage the consequences of those who do not. The continued retention of closed missions funds is a short term solution to managing cash-flow problems, but it is a solution that the Secretary-General is forced to use to manage the fact that many Member States are not fulfilling their responsibilities to pay. If the General Assembly wishes to maintain its restrictions on cross-borrowing, then it must provide the liquidity for all peacekeeping missions and Tribunals so that cross-borrowing need not be an option.
Mr Chairman
We are heartened that unpaid assessments for the Tribunals have declined again and while the number of countries with amounts outstanding has declined since last year, we still note with concern that 95 Members have amounts outstanding.
Mr Chairman
The “honour roll” contains a noteworthy number of 31 countries – a marked improvement from previous years (such as 16 in 2005). We see merit in highlighting the honour roll composition - it includes both developed and developing countries, and countries from all continents. Our delegations look forward to the day when an “honour roll” is no longer necessary because all Members have fulfilled their Charter obligations and have paid in full, on time and without condition. Until that day comes, however, we sincerely urge every Member State to aspire for inclusion on this list.
Thank you