EU Presidency Statement - Capital Master Plan

Mr. Chairman,

I have the honour to speak on behalf of the EU. The Candidate Countries Bulgaria, Romania, Turkey and Croatia , the Countries of the Stabilisation and Association Process and potential candidates Albania, Bosnia and Herzegovina, the Former Yugoslav Republic of Macedonia, Serbia and Montenegro, and the EFTA countries Iceland, Liechtenstein and Norway, members of the European Economic Area, align themselves with this declaration.

Let me begin by thanking Mr. Clarkson for introducing the reports on the CMP and Mr. Kuznetsov for introducing the related ACABQ report.

Mr. Chairman,

1. The EU position on the Capital Master Plan is well known to all. On various occasions we have stated that the condition of the UN headquarters here in New York is not only inadequate by almost all modern working standards, it is also downright dangerous. Falling concrete, asbestos, exploding steam valves, inaccurate fire alarm signals, incomplete or nonexistent sprinklers; in the context of our discussions on safety and security for UN personnel this session, one needs little imagination to picture the disastrous consequences in the event of a serious emergency in this building.

2. Therefore, Mr. Chairman, we should move expeditiously on this matter. It is regrettable, that the current provisional financing offer from the Host Country has not, thus far, moved us forward as much as we expected two years ago, and that we needed to ask the Secretariat to look for other financing options. We reiterate our belief that Host Countries bear special responsibilities towards their respective UN presence. It should also be borne in mind that Host Countries derive special benefits from the presence of the UN. We will keep looking at alternatives that would bring the Host Country's offer more into line with established practice in other Host Countries.

3. However, the EU recognizes that the main part of 59th session of the GA is not the time to discuss the financing of the CMP as a whole, particularly as the US Congress has not yet made a final decision on a provisional loan offer. We thank the Secretariat for providing us with several interesting possibilities for funding arrangements. We will come back to them in due course. So for now, let me focus on the swing space, and the conversion of the commitment authority.

Mr. Chairman,

4. Apart from the funding arrangements, the issue of a swing space during renovation is crucial to CMP financing and implementation. The progress report identifies several worrying developments regarding the planned swing space (UNDC5). The costs for it have risen; the planned financing through issuing tax-free bonds seems uncertain; there is, as yet, no agreement on the mitigation process with the New York City and State authorities; and there have been significant delays in the architectural and planning work.

5. We now see ourselves faced with a delay of at least 27 months in the completion of UNDC5, and serious doubts regarding the viability of the building as a long term consolidation building for the UN. The EU should like to know when we will receive more certainty on UNDC5, and what are the contingency plans should UNDC5 fall through. We expect the Secretariat to provide us with a report on these crucial issues during the resumed session.

Mr. Chairman,

6. Let me turn briefly to some of the other issues before us today. On the establishment of an advisory board that will provide advice to the Secretary-General on possible commercial borrowing and other financing options, we concur with the ACABQ that this board should be formed as expeditiously as possible. We wonder why this has not happened earlier, and would be interested in the details of the projected membership.

7. On the proposals of additional conference rooms, allowing natural light into the rooms, and parking spaces, we agree with the ACABQ that it would be premature to take decisions on these issues, given the uncertainties of the financial arrangements for the CMP as a whole. However, we will ask some questions during informal consultations in connection with the report of the Board of Auditors.

Mr. Chairman,

8. In conclusion, much has changed since we discussed the Capital Master Plan two years ago. Many questions still need to be resolved, nevertheless it is our belief that the CMP cannot be simply put on hold. Therefore we approve the conversion of USD 18,6 million of the original commitment authority (USD 26 million) into an appropriation for the biennium 2004-2005, and further approve the remainder as a commitment authority for the biennium 2006-2007. The EU understands that the activities that will be funded through this appropriation are of such a basic nature that they will remain necessary, notwithstanding any major changes to the original Capital Master Plan.

We look forward to discussing matters further during our informal consultations.

Thank you, Mr. Chairman.

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• EU Presidency Statement - Capital Master Plan (17/3/2005)
• EU Presidency Statement - The Capital Master Plan (16/3/2004)