UN: EU Statement on the Programme budget for the biennium 2006-2007

UN 61st Session; V Committee, Agenda Item 117: Programme budget for the biennium 2006-2007, New York, 16 October 2006

Statement by Ms. Sinikka Koski, adviser, Permanent Mission of Finland to the United Nations, on behalf of the European Union

 Mr. Chairman,

I have the honour to speak on behalf of the European Union.

The Acceding Countries Bulgaria and Romania, the Candidate Countries Turkey, Croatia* and the former Yugoslav Republic of Macedonia*, the Countries of the Stabilisation and Association Process and potential candidates Albania, Bosnia and Herzegovina, Montenegro, Serbia, and the EFTA country Norway, member of the European Economic Area, as well as Ukraine and the Republic of Moldova align themselves with this declaration.

*) Croatia and the former Yugoslav Republic of Macedonia continue to be part of the Stabilisation and Association Process.

We would like to thank Director of Programme Planning and Budget Division, Ms. Sharon Van Buerle, for the introductionary remarks and the Chairman of the ACABQ, Mr. Rajat Saha for advisory committee's reports respectively.

Mr Chairman,

Regarding the annual progress report on the construction of additional office facilities for the Economic Commision of Africa, Addis Ababa, we would like to thank the Government of Ethiopia for its efforts and cooperation as host country, in particular for assisting with the allocation of additional land for this project.

The EU would also like to thank the Government of Austria, another host contry, for taking responsibility of the finances for nearly the entire construction of additional conference facilities at the Vienna International Centre. These finances amount €52.5 million. We welcome the agreement achieved among the organizations, regarding the cost-sharing ratios for the rest €2.5 million on the construction project and the division of maintanance costs for the new facility.

We take note of both these progress reports. In addition, we would like to receive regular updates on the removal of asbestos at the Vienna International Centre as recommended by the ACABQ.

Mr. Chairman,

With respect to establishing a contingent liability reserve for the UN Postal Administration, the EU is ready to discuss the proposal. In this regard, we maintain certain questions to be addressed at the informals. We note that all oversight bodies support this recommendation. Yet, we would like to encourage a continuation of the search for additional options, to protect against the actual and potential loss caused by the bulk mail. Indeed, we are not yet fully convinced to create a new fund to cover the risk, while a working capital fund already exists.

The EU would like to take this opportunity to thank the authorities in Switzerland for reaching an agreement with the UN regarding commercial mail and thereby assisting the UN Postal Administration to run its operations more cost-effectively for the benefit of the organization.

Mr. Chairman, Colleagues

Let us move next to the report on the "Identification of additional resources for the Development Account".

The Development Account was introduced in 1997 as one of the reform proposals by the UN Secretary-General. Its main idea was to capture and combine two primary objectives of the reform, that of improving the cost-effectiveness of UN programme management and administration and the other one of laying more emphasis on socio-economic development activities and capacity-building in the field.

The EU supported the inception of the Development Account, seeing merit in the idea of transferring the identified system-wide savings into the funding base for specific socio-economic activities in developing countries.

We take note that according to the GA reports the Development Account has been managed with professionalism. During the past five tranches the 94 projects, implemented or still in progress, have contributed to the follow-up processes of the UN conferences, including reaching for the Millennium Development Goals. We warmly welcome the fact that these projects tend to use local expertise and local consultants, as well as gather the lessons learned that can benefit the policy analysis process and development planning. Furthermore, these projects encourage interagency cooperation.

The EU looks forward to discussing this topic during the informals. There are a number of issues where we would like to see more clarification and information. At this point, we are listening to the views of our colleagues and partners in order to reach a shared understanding and decision.

It should be noted that modalities and sustainability of funding for the Development Account has been on the agenda of our meetings on several occassions. In that regard, over the years the General Assembly has requested a number of reports in the course of seeking the right format. Today's report rather bluntly states that after the first biennium any further savings have not been identified for the Development Account. According to the report, the savings - before they are even identified - are utilized by programme managers for other tasks, some of them being new GA mandates. The report in front of us today, unfortunately, was not able to provide us with a set of concrete proposals.

The Development Account is a unique arrangement that was created in the context of the biennium budgetary process, seperate from the operational activities as such. During the informals we hope to acquire an outcome to clarify the identification of savings.

Thank you.