UNGA: FIFTH COMMITTEE DISCUSSES SCALES OF

UNCLAS USUN NEW YORK 000984

SIPDIS

DEPARTMENT FOR IO

E.O. 12958: N/A
TAGS: PREL ORCA
SUBJECT: UNGA: FIFTH COMMITTEE DISCUSSES SCALES OF
ASSESSMENTS, ARREARS


1. On October 6 and 7, the Fifth Committee held formal
discussions on agenda item 122: "Scale of Assessments for the
Apportionment of the Expenses of the United Nations." Member
States considered the annual Report of the Committee on
Contributions (A/63/11),which reflects the Committee,s
broad discussion of all of the elements of the scale
methodology. Notably, the Committee on Contributions report
recommends granting temporary exemptions from loss-of-vote
under Article 19 of the UN Charter to the seven Member States
who could not pay their assessments due to "reasons beyond
their control." The Fifth Committee also considered the
Secretary-General's Report on Multi-Year Payment Plans for
the seven countries in arrears (A/63/68),which details the
voluntary payment plans and schedules of Liberia, Sao Tome
and Principe, and Tajikistan, each with significant arrears.


2. During formal discussions, developing countries called
for continued adherence to the "capacity to pay" principle
and an end to the 22 percent ceiling on assessments, citing
the ceiling as a distorting factor of the "capacity-to-pay"
concept. After formal introductions, Member States moved
into informal discussions where the Committee approved a
draft resolution to grant the Article 19 exemption and
preserve voting rights for seven countries.


3. In the debate on methodology, nearly every Member State
advocated preserving the status quo. Antigua and Barbuda,
speaking on behalf of the G-77 and China, reaffirmed
"capacity to pay" as a "fundamental principle" that "should
not be altered in any way." Angola, on behalf of the African
Group, cited the current oil, food and financial crises in
support of the G-77 position. Russia jumped on the
bandwagon, denying any need for major methodological changes.
Mexico stated the methodology may only need some
"fine-tuning."


4. As expected, Antigua and Barbuda, speaking on behalf of
the G-77 and China, also criticized the existing 22 percent
ceiling as a "unilateral move by one Member State" that
distorts other Member States, assessments. Iran also called
for abandonment of the ceiling, claiming that it was a
"political compromise" that is "detrimental to other Member
States." Venezuela condemned the ceiling as "unilaterally"
imposed by the country that pays the least in real terms,
which is being subsidized by all the other Member States.


5. Positive interventions came from France, on behalf of the
European Union, and Japan. France advocated timely payments
for those able, and multi-year payment plans for those in
difficulty. Japan vaunted its payment record despite
financial difficulties, and called for a better methodology.


6. Article 19: With no contention, the Fifth Committee
approved a draft resolution in informal discussions extending
voting rights to the following seven Member States who could
not make required payments due to "reasons beyond the
control" of the Member: Central African Republic, Comoros,
Guinea-Bissau, Liberia, Sao Tome and Principe, Somalia and
Tajikistan. However, France did express that it will pursue
a more reserved policy when granting future exemptions from
Article 19, which stipulates loss-of-vote due to deadbeats.
UNGA subsequently passed this resolution by consensus.


7. Multi-year payment plans: Member States commended
Liberia, Sao Tome and Principe, and Tajikistan for continuing
to implement their respective a multi-year payment strategies
to alleviate arrearages. There were no new requests for
payment plans over the last year. These requests are made on
a voluntary basis.
Khalilzad