On 31 March 1997, Ireland was owed approximately £11 million by the United Nations. This sum derives exclusively from costs relating to our participation in UN peacekeeping operations. The main components of the total arrears owing are £4.4 million for troop costs, arising largely from the contribution of an Irish battalion to UNIFIL, and £5 million for death and disability payments. In 1996 the UN made repayments of £5.2 million to Ireland in respect of arrears owing for peace keeping operations. This year, £1.4 million has been reimbursed to Ireland for troop contribution costs.
The delay on the part of the UN in making full reimbursement to Ireland and to other troop contributing states of costs arising from their contribution to peacekeeping operations is a matter of serious concern. It is due to the serious financial crisis the UN has experienced in recent years which has been largely caused by the non-payment of arrears and assessed contributions to the UN budget by certain major member states. Consequently the UN system has experienced an ongoing cash flow difficulty which has resulted, inter alia, in the delay of full payment of peacekeeping costs to troop contributing states.
Ireland and other troop contributors have consistently made clear to the UN Secretary-General and the Secretariat that priority should be given to the full reimbursement of sums owing as soon as possible. I conveyed these views to the former Secretary-General during a bilateral meeting in New York last September. Our permanent mission to the UN in New York also makes regular representations to the UN to give priority to this matter. While we appreciate the serious financial difficulties within the UN system, nonetheless there is a clear obligation on the part of the UN to make full and early reimbursement of peacekeeping costs.
The matter of peacekeeping arrears is one of several negative consequences of the current serious financial crisis within the United Nations. This crisis is a matter of grave concern since it threatens the ability of the UN to discharge effectively its on going responsibilities in peacekeeping and economic and social development programmes.It underlines the need for a reform of UN funding, to which the Deputy refers.
Ireland, with its partners in the EU, has been to the fore in seeking the necessary agreement on such a reform. The EU put forward a set of proposals in January 1996 for a new scale of assessment of contributions by member states to the UN budget. We actively sought support for these proposals through a continuous process of demarches, consultation and negotiation with other UN member states, including such key contributors as the US.
The main thrust of the EU proposal is that member state contributions to the UN budget should be assessed on a basis which is clear, simple and transparent and grounded on their capacity to pay. Its principal recommendations are that assessment would be on a base figure of GNP averaged over three years to give a fair reflection of economic strength. The current minimum contribution of 0.01 per cent of the budget, which has proved difficult for many poorer developing countries, would be removed. The maximum single contribution level of 25 per cent, applicable only to the US, would be maintained, as also would the 15 per cent surcharge on peacekeeping assessments applicable to the permanent members of the Security Council. This reflects their responsibility in regard to decisions on international peace and security. The EU reform proposal also recommends a system of incentives for early payment and penalties for late payment of assessed contributions. If the EU proposal on UN funding was accepted 120 of the 185 member states, mostly poorer developing countries, would pay less than at present with the bulk of increases falling to developed countries.
Another area where the UN is in need of agreement on reform is in its institutions. Ireland and the EU have been active in seeking the type of structural reform which would ensure a more effective and revitalised UN system better able to meet the challenges of the coming millennium. There is a need for review of the operation of major organs, such as the General Assembly, the Security Council and the Economic and Social Council to see how they can be made more responsive to the tasks facing the UN. We have argued that within the overall UN system, including the Secretariat, there should be a thorough review of present functions and programmes to ensure they have a more effective impact within available resources, particularly in such areas as economic and social development.
During its Presidency of the EU, Ireland took the initiative in establishing a common EU position on necessary reforms, both structural and operational, in the economic and social development activities of the UN system. In December 1996 the EU put forward a set of proposals for consideration by member states and the Secretary-General which recommended a more active and coherent policy and priority setting role in this area by the Economic and Social Council, the body charged with overall responsibility for UN activities in this sector. In addition, structural changes in the secretariat, involving amalgamation of departments dealing with this area under a single Under-Secretary General, are proposed, as well as a better co-ordination in the field of the various assistance and development programmes of UN agencies and bodies in developing countries under a single UN representative.
Progress to date on reform issues has not been at the pace required. There are different perceptions among member states on what changes are required in any major reform of the UN. The financial crisis within the UN and the unresolved problem of the payment of substantive arrears, particularly by the US, has proved a clear obstacle in convincing all states, and in particular the developing countries, that reform is necessary, not as a cost cutting exercise but to make the United Nations a more vital and effective instrument of peace and development and thus restore confidence in its multilateral role.
The new Secretary-General, supported by the EU and others, has sought to give fresh political impetus to the process and indicated that he intends to elaborate an overall package of reform measures for presentation to the General Assembly in the summer. Present indications are that as regards strengthening the development role of the UN, several of the proposals which the Secretary-General is likely to recommend will accord fully with the approach outlined in the EU position.
Ireland and her partners in the EU will lend full support and encouragement to the Secretary-General in his efforts to promote agreement on an overall reform package. At the same time we continue to lobby support and agreement among the member states of the United Nations for the proposals of the Union on UN funding and reform of the UN in the economic and social areas.