Source: http://www.usunnewyork.usmission.gov/press_releases/20071025_264.html http://www.usunnewyork.usmission.gov/press_releases/20071025_264.html Date: October 25, 2007 USUN PRESS RELEASE # 264(07) October 25, 2007 FOR IMMEDIATE RELEASE Office of Press and Public Diplomacy United States Mission to the United Nations 140 East 45th Street New York, N.Y. 10017 Statement by Ambassador Mark D. Wallace, U.S. Representative for UN Management & Reform, on the Introduction of the proposed Programme Budget for the Bienium 2008-2009, to the Fifth Committee of the General Assembly, October 25, 2007 -------------------------------------------------------------------------------- Thank you, Mr. Chairman, The United States joins other members in expressing our appreciation to the Secretary General for introducing his proposed budget for 2008-2009 to the Fifth Committee. We would also like to express our appreciation to the members of the Secretariat, including Under Secretary General Alicia Barcena and Controller Warren Sach and their staff who have produced the budget estimates for our consideration. Our delegation appreciates the difficulty encountered by the Secretary General in preparing this budget given that the budget cycle began before he took office. We welcome his commitment to be personally involved in budget planning for the period 2010-2011. In addition, we thank the chairman of the Advisory Committee on Administrative and Budgetary Questions, Mr. Rajat Saha, for the report of the Advisory Committee on the budget. The Secretary-General’s preliminary estimate for the biennium 2008-2009 is $4.19 billion. As the Secretariat has indicated, this figure does not include recosting to take account of inflation and currency fluctuations. Such recosting is likely to add $270 million to the final figure. The $4.19 billion preliminary estimate does not include a significant number of “add-ons” identified by the Secretariat. The “add-ons” include a number of reform related activities that are likely to be considered during this session. The “add ons” include such matters as Administration of Justice, OIOS, Human Rights Council activity, Enterprise Resource Planning, additional SPM activity, including UNAMI, or further PBIs. The Secretariat indicated that the “add ons” already identified could cost over $306 million in addition to the estimated $270 million for recosting. Thus, it appears that the actual budget could be in the region of $4.7 billion for 2008-2009 -- perhaps even in excess of that number. Such a budget represents an increase of 15% beyond the 2006-2007 budget. Such unrestrained growth in the budget is not sustainable. When the Secretariat proposed an increased budget or additional funding request, we as members states must insist that the Secretariat identify cost savings and prioritize such new initiatives. We must encourage budget Discipline. Given the demands on Member States to fund ever increasing budgets, it is imperative that we manage the UN’s resources wisely. We all recognize that budget discipline is good management and good management is in everyone’s best interests. Member States reasonably expect the UN to use the resources that we provide as efficiently as possible in carrying out mandates. My government has consistently maintained and others have advocated that we adhere to zero growth in the budget. Zero growth does not appear to be an option before us. We must, nonetheless, seek to control growth in the budget while ensuring that there are sufficient funds to meet the mandates authorized by Member States. We have an obligation to do so. No organization can operate effectively without seeking to prioritize expenditures and reprogram budgets to cut back on redundant or less relevant programs and redirect resources to new challenges and priorities. Meaningful priority setting is key to the achievement of budget discipline. Too many priorities suggests there are no priorities. The future of this institution depends on sound management and governance. We will never truly achieve a persistent culture of sound management and governance without real budgetary discipline. The Advisory Committee on Administrative and Budgetary Questions has played an important role over the years in bringing some discipline to the UN budget process. We have read the ACABQ report carefully and we share the ACABQ concern with the “piece-meal approach” taken by the Secretariat in regard to the presentation of the budget. As so clearly stated by the ACABQ, it is the responsibility of the Secretariat to ensure that the budget presents the fullest possible picture of UN requirements for the coming biennium. Key to developing a full picture is the need to end “budgeting by installment” which the ACABQ notes is a disservice to Member States and undermines their ability to fulfill our important oversight responsibilities. The budgeting process is based on a partnership between the Secretariat and Member States. As such, the role of Member States is undermined if we are confronted with substantial add-ons outside of the normal budget process, as in the present case. We are disappointed that the ACABQ was able to identify only $11.5 million in savings out of a budget of $4.2 billion. We believe that we must examine the budget carefully in an effort to identify even greater savings without undermining the achievement of the mandates of the Organization. We also look forward to the views of the ACABQ as they address the “add-ons” already identified by the Secretariat, and others that have not yet been identified. We must carefully scrutinize these proposals to identify whether it is appropriate to proceed with them and, if so, we must prioritize their adoption and implementation keeping in mind not only the Secretariat objectives but also the realities of the budget. Effective management and budgeting is key to setting this organization on a strong foundation. As President Bush remarked, “This great institution must work for great purposes – to free people from tyranny and violence, hunger and disease, illiteracy and ignorance, and poverty and despair.” We look forward to working with other delegations and the Secretariat to approve a budget that reflects sound management and discipline while supporting the UN’s priority activities and fulfillment of its noble purpose. Finally, we hope that we can conclude these discussions in a timely manner so that all of the many hardworking people in this room can return home on time for the winter holidays. Thank you, Mr. Chairman.