Fifth Committee: Administrative and Budgetary; Reforms require budget revisions.

The Fifth Committee at the sixtieth session of the General Assembly dealt with a comprehensive agenda of budgetary and administrative matters, with particular attention given to the 2006-2007 biennium budget and management reform measures.

The workload was particularly heavy as a result of decisions made at the 2005 World Summit in September. Although the initial budget documents were prepared in August, many of the developments contained in the World Summit Outcome document had direct budgetary implications requiring the UN Secretariat to provide revised budget estimates.

In an interview with the UN Chronicle, Committee Chairman John William Ashe of Antigua and Barbuda identified the proposed Human Rights Council and Peacebuilding Commission as two examples of the impact of the World Summit. "To set up these bodies does have financial implications; you need Secretariat staff to oversee their functions and to serve on these bodies. In addition, there are some management reform issues, such as staff buyouts, and they too have budgetary implications--so all these have complicated what is already a complicated session."

The General Assembly concluded its plenary session on 23 December by adopting a 2006-2007 budget of $3.79 billion, including a provision that would, "as an exceptional measure", limit the first-year expenditures the Secretary-General can enter into to $950 million, with the remaining funds subject to a later request. As it acted on a series of resolutions recommended by the Fifth Committee, the Assembly indicated that it expected the expenditures in the course of 2006 to amount to approximately $1.9 billion, and the spending limit would, in effect, cover the needs of the United Nations for approximately half the year.

In late October 2005, Secretary-General Kofi Annan presented to the Committee the original $3.608 billion budget proposal for 2006-2007. The budget was the first to be prepared in conjunction with a shortened biennial programme--the United Nations policy framework that has been aligned with the two-year cycle. It represented less than 0.1 per cent real growth on the 2004-2005 budget before the revised estimates arising from the World Summit Outcome document were included. "Growth in priority areas is to be funded largely through the reallocation of resources", the Secretary-General said. "The budget continues a trend of significant investments in staff development and information technology, and maintains our capacity to handle special political missions", he added. "Our agenda is very ambitious but achievable."

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Management of human resources was a key consideration in the budget, in which staff costs make up an estimated $2.2 billion. The proposed staffing level of 9,538 posts for 2006-2007 represents a net decline of 10 posts from the 2004-2005 levels, but reflects an overall increase of 82 professional posts in order to strengthen key areas, countered by a reduction of 92 general service positions.

The Advisory Committee on Administrative and Budgetary Questions (ACABQ) recommended further improvements in central coordination of the staffing table to ensure an organization-wide, rather than piecemeal, approach to resource planning.

"This Committee has a pivotal role to play in transforming our Organization and in giving it the flexible management, and the skilled, motivated workforce it needs to meet today's challenges", Mr. Annan said. He described management reform as indispensable, whose goal is to "equip the Secretary-General and the Secretariat with the management tools and resources needed to handle complex global operations", and combine authority with accountability, "Working together, we can and must achieve this", he stressed.

In the ensuing debate, several delegations expressed concern over the budget that was rapidly approaching the $4-billion mark, a rise of over 50 per cent from the past two budget cycles. Toshiro Ozawa of Japan warned that unless concrete results were achieved in the area of management reform, Member States would face enormous difficulties in justifying the ever-increasing budget level of the United Nations.

The formal introduction of the budget was followed by a long series of informal consultation as Member States worked to agree on a final figure. "Any time, whenever it comes to money in the United Nations, it usually is very contentious", Ambassador Ashe told the Chronicle. "In addition to that, the budget surprisingly only forms a small proportion of the finances of the United Nations. The peacekeeping aspects are quite costly; some of them are extremely complicated and run to over $1 billion", the Committee Chairman said, "therefore, because of contributions from Member States, it is very complicated".

Extrabudgetary resources during the 2006-2007 biennium are estimated to run to $5.16 billion, a net increase of approximately $184.9 million, which will be used for a variety of activities that include conflict resolution, electoral assistance, mine action, dissemination and wider appreciation of international law, as well as for central support services and outreach activities at regional disarmament centres.

During its regular session, the Fifth Committee again approved the financing of two International Tribunals--for the Former Yugoslavia and for Rwanda--and the revised budgets for peacekeeping missions in Haiti, Cote d'Ivoire, Sudan and the Democratic Republic of the Congo. It also reviewed the updated financial position of closed peacekeeping missions.

Several delegations expressed concern over the ongoing practice of cross-borrowing from closed peacekeeping missions, in order to finance the International Tribunals and active peacekeeping operations.

Elizabeth Galvez of the United Kingdom, speaking on behalf of the European Union and associated States, drew attention to the "more or less permanent debt of $2 billion" of Member States to the peacekeeping budgets. She said that this continuing problem of arrears and the inability of the Fifth Committee to substantively address the problem were of serious concern, especially to troop-contributing countries that would not receive timely or full reimbursement.

Frances Lission of Australia, speaking also on behalf of Canada and New Zealand, expressed disappointment that several permanent members of the Security Council, which hold a privileged position, particularly in regard to the peacekeeping operations, were among those with the largest unpaid assessments for peacekeeping missions.

According to projections presented by United Nations Controller Warren Sach, amounts owed to Member States for troops and contingent-owned equipment would come to $779 million at the end of 2005. Commenting on the overall financial position of the Organization, he said that as of October 2005 its overall cash position was stronger than at the end of 2004. He added that projections to the end of 2005 for the regular budget and the International Tribunals were also more positive, despite the fact that as of October 2005 dues amounting to one third of the regular budget were still outstanding, with the United States responsible for 80 per cent of the unpaid dues.

"As always the financial situation of the United Nations tends to be precarious at best, terrible at worst", Chairman Ashe told the Chronicle. "Getting Member States to pay in full and on time, that's a tall order, which I don't think can be overcome any time soon." The critical nature of the budget negotiations was highlighted by the Secretary-General's decision to cancel a planned trip to China at the beginning of December, in order to stay at UN Headquarters and work with Member States to ensure the approval of the budget.

"We have concerns about the wisdom of adopting a two-year budget before Member States can make all the decisions needed to implement important reforms, including a mandate review", John Bolton, of the United States, said. He proposed instead the adoption of an interim budget of three to four months to provide adequate time to consider the Secretariat's review of mandates and UN rules and regulations. However, this posed a serious problem, as based on a normal payment pattern in which some States make no contributions until the end of the year, the regular budget would be short of over $320 million for the first quarter of 2006.

Additional issues addressed by the Fifth Committee in 2005 included continuing efforts to strengthen and facilitate the work of United Nations oversight and planning bodies, such as the Board of Auditors, the Office of Internal Oversight Services, the Joint Inspection Unit and the Committee for Planning and Coordination; appointments to subsidiary bodies; the implementation of recommendations to reform the five regional commissions of the United Nations; and the travel policy for UN staff.

RELATED ARTICLE: Enhanced United Nations Safety and Security

The establishment of the Department of Safety and Security (DSS) within the United Nations in December 2004, under the guidance of resolution 59/276, was one of the most significant outcomes of the fifty-ninth session of the General Assembly. A year later, in 2005, the Fifth Committee considered and reviewed what has been achieved so far under this new directorate. The creation of the Department combined three separate entities responsible for staff safety: the Office of the Security Coordinator; the Security and Safety Services; and the security component of the Department of Peacekeeping Operations (DPKO).

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Under-Secretary-General for Safety and Security David Veness told the Committee that it was their top priority to create a world-class, flexible security service that was capable of helping the United Nations to carry out its mandates and activities in the most challenging parts of the world. The Department's establishment involved the development of new security and safety policies, procedures and techniques, with particular attention given to relations with host Governments--a sharpened primary focus on operational effectiveness at the field level--and a system-wide integration of existing security capacities.

In view of heightened threats and risks, a fundamental review of technical security policies, procedures and practices is necessary to ensure effectiveness. There was a segment of international terrorist groups that openly and unabashedly identify the United Nations as an enemy and would seek to inflict casualties in large numbers if the United Nations lowered its defenses, said Mr. Veness, making the need for an enhanced security management system all the more crucial.

The immediate focus of the new Department is upgrading all aspects of physical security, from fencing, barriers and access control to emergency preparedness and response at Secretariat facilities. It is also working closely with the respective directors-general and executive secretaries at UN offices away from Headquarters. Integrated security management systems have already been established for large high-risk missions, such as in Afghanistan, Iraq, Kosovo and Sudan. Joint DSS/DPKO teams recently visited Haiti, the Democratic Republic of the Congo and Cote d'Ivoire to initiate similar integrated security structure.

The Fifth Committee evaluated the efforts to strengthen and unify the United Nations safety and security system, which included the introduction of 383 new security posts, 134 of them on a temporary basis, bringing the total to 1,775 worldwide. Recruitment involved the screening of more than 6,000 applicants and conducting hundreds of hour-long interviews. Mr. Veness assured the Committee that his Department had been "pulling out every stop and straining every resource" to fulfil its responsibilities with the UN staffing system, including ensuring equitable geographical distribution of new posts. However, delays in the recruitment process have meant that new appointments at UN Headquarters and in the field would probably not be completed until June 2006.

The Secretary-General stated in a report that "considerable visible progress has already been achieved in developing an integrated system-wide security management system that ensures consistency, efficiency and effectiveness in safeguarding our staff". The huge task of getting DSS up and running in 2005 has been achieved; therefore, 2006 should see further progress in strengthening and coordinating security arrangements at UN posts worldwide.

--Sally Bolton