Vienna Chapter
Mr. Chairman, His Excellency Ambassador Horvath,
It gives me great pleasure to felicitate you on behalf of the Group
of 77 and China for your election as the Chairman of the 20º Session
of the Programme and Budget Committee. We are confident that under your
able leadership this Session of the PBC would be guided in a smooth manner
and reach fruitful conclusion. I would also avail myself of this
opportunity to congratulate the other members of the Bureau on their
election. The Group would also like to thank your predecessor H.E.
Ambassador Naqvi, Permanent Representative of Pakistan, for his
commendable conduct of the previous PBC meeting.
The Group is grateful to the Secretariat for making necessary
arrangements and consultations for the meeting
The G-77 and China would be making comments on the Agenda items 3, 5,
6, 7, 8 and 9 in the course of discussions on each item. I would restrict
my intervention to comment on items 7, 8 and 9. for this opening
statement.
Mr. Chairman,
1. The Group of G77 and China has considered the documents PBC.20/3,
PBC.20/5 and PBC.20/2 on the financial audit and we take note that the
External Auditor provided assurance that the financial records of UNIDO
are reliable and well maintained and that adequate internal controls have
been implemented. He has expressed an unqualified opinion on the financial
statements of the Organization for the biennium ended 31 December 2003.
2. Regarding governance matters, the Group expresses its appreciation
for the steps taken by the Director-General to consolidate and strengthen
the internal oversight and control mechanism of UNIDO, and in particular
the establishment of the Office of the Comptroller General (OCG). We also
take note that the Secretariat has advised that the issue of fraud
prevention strategy and contingency policy is receiving attention and it
expects that such a strategy will be developed by the end of 2004, in
coordination with other sister United Nations organizations.
3. The Group is of the view that for a matter of credibility it is
important that UNIDO addresses various environmental aspects in its
current operations including the development and implementation of a
coherent policy and management strategy.(financial aspects)
4. With regard to the financial situation, the Group notes with
satisfaction that the in 2002-2003, the Organization achieved one of its
highest collection rates in respect of assessed contributions, with
collection rates of 93 and 92 per cent for the years 2002 and 2003
respectively. This compares favorably with the collection rates for 2000
and 2001, which were 84 and 92 per cent respectively.
5. However little progress is being made in reducing the arrears and
the Group encourages the Secretariat to continue its efforts to solve this
situation. The Group takes note with satisfaction that an increase in
technical cooperation activities has been achieved in the current biennium
due to an increase in voluntary contributions received in the 2002-2003
financial period. Furthermore, the Group is encouraged that the
expenditure under the technical cooperation programme has shown an
increase of some 14 per cent over the previous biennium.
6. The Group of G77 and China notes with appreciation that a
results-based management system based on the balanced scorecard approach
had been developed. However, the Group is concerned that the current
Administrative Instructions do not provide adequate guidance in respect of
the maintenance of inventory records that meet the objective of control in
respect of the safeguarding and custody of assets, and also of providing
reliable information for the disclosure requirements of the UNSAS.
Therefore, the Secretariat should take steps to improve the completeness
and reliability of non-expendable equipment inventory records as a
priority.
7. The Group expresses its appreciation for the promulgation by the
Secretariat of a Human Resource Management (HRM) Framework in June 2001 in
order to enhance the organization's capacity. A key element of the HRM
Framework was improved competitive selection procedures, which, in turn,
would result in the recruitment of highly qualified candidates, and lead
to a reduced recruitment cycle.
8. Thus a comparison of the recruitment cycle both before and after
the implementation of the HRM Framework indicated a reduction from 8.8
months to 3 months. However, we encourage the Secretariat to provide the
recruitment section with a sufficient available staff resource. Thus, the
Group in line with the comments of the External Auditor would like to
commend the Secretariat for the well organized staff learning function and
specially the introduction of the initiative of a management development
programme.
9. Regarding the field offices, the Group is of the view that UNIDO
should take any measure to increase flexibility to support the
indispensable needs of offices and to build an efficient bridge of
communication and reporting between headquarters and field offices. Some
initiatives should also be taken in order to maintain reliable access to
information databases at headquarters.
Mr. Chairman,
1. The Group of 77 and China takes note of the document PBC.20/8 on
the financial situation of UNIDO, and appreciates that the operational
budget recorded a surplus of EU1.7 million during the first six months of
2004.
2. However, the Group is concerned by the decrease of the regular
budget and cash resources which is EU36.5 million, compared to the amount
of EU44.5 million as in June 2003, thus a decrease of 13.1%.
3. The Group of 77 and China, notes with satisfaction the improvement
of technical cooperation delivery, as compared to the years 2003 and 2002.
4. The Group of 77 and China also notes with satisfaction that a
total of 61 Member States, including 8 Least developed countries have made
full payments for their assessed contributions for the year 2004. However,
the Group is concerned about the rate of assessed contributions from
Member States, which stood at 65.6% in 2004 as of 78.7% in 2003, which has
resulted in 46 Member States losing their voting rights.
5. The Group, therefore, appeals to Member States and former Member
States in arrears to fulfill their financial commitment towards the
Organization.
6. The Group of 77 and China commends the arrangement made between
Sierra-Leone and the Secretariat, and welcomes the ongoing negotiations
with other Member States like Brazil, Kazakhstan and Tajikistan.
7. The Group of 77 and China would like to emphasize on the
importance of the technical cooperation delivery, and will follow with
interest the useful information to be provided by the Secretariat
concerning the special account for the regular programme of technical
cooperation, as mentioned in paragraph III of document PBC.20/8.
Mr. Chairman,
1. The Group of G77 and China takes note of document PBC.20/4 on the
mobilization of financial resources which points out that the
extrabudgetary funding for the delivery of UNIDO services is extremely
important, given the very limited availability of funding for technical
cooperation activities from the regular budget.
2. The Group takes note that the Secretariat has simplified and
streamlined the definition and presentation of UNIDO's portfolio
activities and hopes this will enhance international development
priorities and match with doors funding priorities. The Group also
welcomes the Secretariat's version of the internal review and funds
allocation process which is aimed at ensuring rapid formulation and
implementation of projects, and looks forward to a more positive response
from donors on this new formula.
3. While we express our appreciation for the positive developments
during previous years in terms of improved UNIDO access to GEF funding and
the expected important project approvals in the coming months, and the
expected increase in the level of programme delivery in the coming years
under the Montreal Protocol, we urge the Secretariat to try to spread
these projects and programmes under these funds to all regions. We also
encourage the Secretariat to continue its efforts to develop and implement
projects funded by international development partners.
4. Finally, the Group encourages the Secretariat and the Member
States to work closely together on selected priority themes, with a view
to promoting and mobilizing funding for the implementation of these
important activities in response to international development priorities.
Mr. Chairman,
1. The Group takes note of the document IDB.29/7 and would like to
thank the Secretariat for information that Member States received on the
enhanced security arrangements to enable the Vienna based Organizations to
comply with the Headquarter's Minimum Operating Standards being proposed
by UN Headquarters in New York.
2. The Group would like to stress that the recommendations for
enhancing security measures should be decided by the Member States after
consultation in a transparent manner with the Secretariat and with due
regards to cost efficiency and realistic and practical approach based on a
real threat perception and on the local security situation.
3. Concerning the additional financial burdens as a result of these
measures, the Group welcomes the creation by the Director-General of a
special account to be financed by voluntary contributions or any other
extra-budgetary resources and supports the draft conclusions recommended
on this issue, contained in paragraph III, document IDB.29/7.
4. Taking into account that based on the Headquarters agreement
between the Government of Austria and UNIDO, the host country shall
closely cooperate regarding the interrelation of effective security
measures within and in the immediate vicinity outside the Headquarters
seat, the Group would like to thank the Austrian Government for its
positive offer to cover the costs of security enhancement outside the VIC.
5. The Group also encourages the host country as well as all donor
countries to facilitate application of the new security measures in the
VIC through their generous and timely contributions to the said account.
The Group wishes to be informed of the results of the consultations in
this respect.
Mr. Chairman,
1. The Group of 77 and China has taken note of the document PBC 20/6
containing the proposals of the Director General on the Medium Term
Programme Framework (MTPF) for the years 2006-2009.
2. The Group notes that the MTPF for 2006-2009 is expected to evolve
from the current MTPF for 2004-2007 and to maintain broad continuity with
it. The finalisation of the MTPF has to be in conformity with the Business
Plan and the Strategic Guidelines "Towards improved UNIDO programme
delivery". UNIDO should retain its focus on providing technical
cooperation services that enhance skills, technology and related
capacities, with emphasis in areas where it has a comparative advantage.
3. Recalling the GC.10/Res.4 "South-South Cooperation", the
Group wishes to further focus on South-South Cooperation activities in the
Medium-Term Programme Framework 2006-2009 of UNIDO and to redouble UNIDO's
efforts to mobilize funds for this purpose.
4. The programmatic content has to be devised in the context of the
areas of emphasis including investment promotion, technology transfer,
diffusion and management; trade facilitation and market access; and
multilateral environmental agreements to be pursued under the revised
service modules. Special emphasis should be given to mobilisation of funds
and effective implementation so as to achieve increase in programme
delivery.
5. The Group hopes that the MTPF 2006-2009 will carefully take into
account the experience of MTPF 2004-2007 which will be facilitated by the
overlap period of 2006-2007 and take adequate corrective actions as may be
required in terms of priority and to effectively utilise the comparative
advantages of UNIDO.
Mr. Chairman,
1. The Group has carefully examined the document PBC.20/9 containing
some elements of the draft cooperation agreement on strategic alliance
between UNIDO and UNDP and would like to commend the Secretariat on its
efforts to improve the functioning of UNIDO through decentralization and
enhanced interagency cooperation.
2. The Group took note of the discussions held with UNDP and had
followed with keen interest the work of the Informal Advisory Group on
Decentralization. It would also like to express its appreciation for the
efforts of the co-chairmen, H.E. the Ambassador of China and H.E. the
Ambassador of Germany, to come up with useful recommendations.
3. The Group recalls the importance of its previous requests to the
Secretariat to further define the decentralization process bearing in mind
its multi-faceted nature, and the mandate laid down in the business plan
of 1997 to strengthen the existing field structure through delegation of
authority and a redeployment of resources and professional staff with
required level of expertise from Headquarters to the field within the
given budgetary framework.
4. The Group welcomes the initiative of the Secretariat to negotiate
a strategic alliance with UNDP to develop a joint programme of technical
cooperation in the area of private sector development. However, recalling
the mandate of UNIDO as stipulated in its Constitution, which is to
promote sustainable industrial development, the Group would like to
emphasize that this should remain as the main objective of the
Organization in the context of the proposed new alliance with UNDP, and
eventually if any decision is to be taken in the future to broaden this
alliance.
5. Due to the fact that the proposed cooperation agreement could
affect the entire structure of UNIDO in the field, the Group would like to
express the following concerns and comments on the proposed strategic
alliance: · Integrity, identity, visibility, and responsiveness of
UNIDO should be maintained. · Respective mandate of UNIDO and UNDP
within the proposed strategic alliance should be defined more clearly. ·
Elaboration of the rationale used in the determination of the type, level
and location of the representation is needed. · The future field
representation scheme should preserve and build upon UNIDO's previous and
existing achievements in the various regions. · Any conversion of
UNIDO offices should be made only after having evaluated the results of
the pilot phase and in close consultation with the Member States. ·
The one-year evaluation period is insufficient to effectively evaluate and
determine the future of UNIDO desk offices and accordingly the Group
recommends that the performance assessment be made after two years as
initially proposed by the Secretariat.
6. For all these reasons, the Group would like to request the
Secretariat to provide a detailed plan regarding the nature of this
process and the details of its financial implications as well as a
comprehensive report and assessment in the form of a proposal to
decentralize the organization to the next IDB session as stipulated in
IDB.28/Dec.2 and in accordance with the Constitution of UNIDO.
7. The Group highlights the importance of the need to capture
momentum in alliance building with UNDP and takes note of the information
contained in document PBC.20/9. The Group, however, suggests that in line
with the recommendation of IDB.28/Dec. 2, the cooperation agreement should
be brought to the attention of the next IDB for its consideration.
8. The Group underscores the need to have an Implementation Document
of the proposed cooperation agreement with the UNDP to be considered and
approved by the November IDB in line with Resolution IDB.28/Dec.2.
Thank you, Mr. Chairman.
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