United Nations General Assembly: Fifth Committee
20 October 2005
Item 126: Improving the Financial Situation of the United Nations
Statement by H.E. Frances Lisson
Ambassador and Deputy Permanent Representative
Permanent Mission of Australia to the United Nations
On behalf of Canada, Australia and New Zealand
(Check against delivery)
Mr Chairman,
I have the honour today to speak on behalf of Canada, Australia and New Zealand.
Our delegations would like to thank Assistant Secretary General Sach for his presentation on the Financial Situation of the United Nations. This information allows us to take a broader view of UN finances and assess how we, as member states, are aquitting our responsibilities to the Organisation. Unfortunately, it is not a particularly positive picture that has been presented.
Mr Chairman,
We are pleased that there are signs of improvement in the financial forecast, and that the United Nations is presently in a better cash position than at the end of 2004. However, this good news should not obscure the fact that unpaid assessments have increased for the regular budget, tribunals and the Capital Master Plan.
It is encouraging that the number of member states paying their regular budget assessments in full is 17 more than this time last year. It does leave 65 member states owing a total of $739 million, of which over 90% is owed by three member states. The payment of these assessments would do much to stabilise the financial situation of the United Nations.
Whilst the level of outstanding peacekeeping assessments has fallen this year, it is still unacceptably high at $2.1 billion, with only 19 member states paying 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. It is disappointing to see several permanent members of the Security Council, a privileged position particularly in regards to peacekeeping, amongst the list of those with the largest unpaid peacekeeping assessments.
We are pleased at the signs of progress in the funding of the two tribunals, but note that there are still 112 member states with amounts outstanding.
We look forward to receiving further information on the financing of the Capital Master Plan following the review currently underway.
Mr Chairman,
The ‘honour roll’ – which contains just 16 member states – is lamentably short. However, we note that it includes both rich and poor member states, and countries from all continents except one. We believe that every member state should aim to be on the list. There is an obvious disjuncture when member states advocate for the UN to take on additional tasks without paying their share of the costs.
It is clear from the data presented that a handful of member states are responsible for the vast majority of unpaid assessments. This does not lessen the obligation of those states with relatively smaller assessments. Accordingly, we call on all member states to meet their obligations under Article 17 of the Charter in full, on time and without conditions.
Mr Chairman,
We have noted the Secretary General’s proposal to retain $83 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 penalise those member states which have paid their assessments in order to manage the consequences of those who do not fully meet their obligations. It adds to the ongoing inequity between those who pay on time and those who pay late, in part or not at all. There is no room for freeloaders in a system based on equal rights and responsibilities.
Obviously, cash flow is a perennial problem for peacekeeping operations and the tribunals, with a peak of $79 million of cross-borrowing from closed operations this year. The continued retention of closed mission funds is a short term solution. We would welcome suggestions from the Secretariat on how it plans to resolve this issue in the long term to ensure the financial security of peacekeeping operations and the tribunals.
Mr Chairman,
There are some positive signs that the financial situation is improving. But, clearly, the health of the UN’s finances depends on member states. We urge all member states to ensure that progress continues.
Thank you, Mr Chairman.