STATEMENT BY H.E. STAFFORD O. NEIL, AMBASSADOR/PERMANENT REPRESENTATIVE OF JAMAICA TO THE UNITED NATIONS. ON BEHALF OF THE GROUP OF SEVENTY-SEVEN AND CHINA, TO THE 69TH PLENARY MEETING OF THE GENERAL ASSEMBLY AT ITS 6OTH SESSION: EXPLANATION OF VOTE ON AGENDA ITEM I24 'PRoposno Pnocnanrnrr BuocET FoRrue BrnNxrulr'2006-2007' FRrDAy, 23nn DncsMenR. 2005 Mr. President, The Group of 77 andChina agreedto the adoption,without a vote, of the resolutionon the biennium budget for 2006-2007and the accompanying resolutionon appropriations.But we have to expresssomeseriousconcernsand reservations. First, as to process. As you yourself have frequently stated,negotiationsand decision-making the United Nations in should be conductedin an open,transparent and inclusive process. For this, thereare established arrangements through the Committee structure. Unfortunately,what happened this occasiondid not meet the requiredhigh standards.The on negotiatingprocesswas conductedin a closedgroup and behind closeddoors. We recognisethe constraintsof time and pressures completethe agendaand especiallyto to adopt a budgetfor the biennium 2006-2007- a critical objectiveto be fulfilled. It had to be done to avoid plunging the Organisationinto crisis. But it is unfortunatelybecomingtoo frequentfor negotiationand decision-making be done to througha closedgroup. Theseprocedures have to change,otherwise,the integrity of consensus decisionswill be opento question. On this occasion,there was considerable dissatisfaction the Group of 77 fromthe by-passing in of the 5th Committeein the negotiationson the budget. Second,as to substance. We are pleasedthat we were able to arrive at a consensus a budgetfor the next biennium. We on believeit is a good budgetand thosein the negotiationscontributedto a good outcome. The G-77 negotiatedconstructively,in good faith, towardsthat result,and mademany compromises and gestures accommodate to other parties.

However, we have to expressour gravestreservations the inclusion, in paragraph3 of the at appropriations resolution, a spending of limitationof US$950million. This hasnullified, to a greatextent,the fruits of our efforts by effectively reducingthe biennium budgetto a six-month budget. This is a seriousaberrationin our budgetaryarrangements sucha spendinglimitation to be for imposedon the Secretary-General. Worse is that the purposeis to apply pressure Member on Statesto act under the pain of deprivationof funding to the Organisation. This is contrary to the spirit of the UN Charter,which requiresMember Statesto fulfil obligationswith regardto the financing of the tIN. The introductionof conditionalitiesinto the systemthrough the control of the purseis a very troubling and regrettable tendency. As we have consistentlystatedand demonstrated, G-77 and China supportreform for better the management and improved efficiency in the Secretariat. Our Headsof Stateand Govemment have pledgedtheir supportand our delegations working toward fulfilling that commitment. are We will not always agreeon all proposalsand we will continueto judge proposalson their merits. Unfortunately,now a veritable Sword of Damoclesis placedover our headsin the form of a threat to UN financing, coming from the largestcontributorsto the budget. That is why it is a sad occasionfor us in many respects. The G-77 reject conditionalitiesand we opposethe imposition of the spendinglimit on the Secretary-General. But we faced a difficult choice. We did not wish to risk a seriousfinancial crisis for the Organisation, which would result from the failure to adopta budget. We therefore2 decidednot to call for a vote on the imposition of a spendingcap,despiteour strongobjection.

Mr. President, The G-77 and China wish to state,for the record,that we regardthis action as an exceptional measure, which should not be treatedas a precedent. It shouldneverbe repeated. We also wish to statethat it is our expectation that the membershipwill ensurethat the request for further spendingpower for the outstandingbalancewill be honouredwhen the SecretaryGeneralmakeshis request mid-year2006. in