29 October 1998

Statement by

Mr. Morteza Mirmohammad

Representative of the Islamic Republic of Iran


Agenda Item 118

Scale of Assessments

for the Apportionment of the Expenses of the Organization

New York, 29 October 1998


In the Name of God, the Compassionate, the Merciful

I thank the Chairman of the Committee on Contributions for presenting the report of the fifty-eight session of the COC. I support the statement of the distinguished delegation of Indonesia on behalf of the G77 and China on this agenda item.

To avoid sounding repetitious, I wish to take this opportunity to put on record, briefly, my delegation s view on some particular issues.

We note the intention of the Committee on Contributions to consider a number of issues on the scale methodology further at its fifty-ninth session, with a view to making a consolidated set of recommendations to the General Assembly at its fifty-fourth session.  In this regard, my delegation believes that the criterion for measuring the capacity to pay, if determined only by the income measure, does not truly reflect the real capacity to pay of Member States which are at different levels of development. Therefore, other elements which are crucial to a more accurate and realistic determination of the Member States real capacity to pay, such as low per capita income formula and debt-burden adjustment should be taken into account.

We concur with the view expressed in Para 59 of the COC report that the parameters of the current formula for the low per capita income meet the needs of all countries with low per capita income and best reflect the capacity to pay of Member States.

We note the agreement of the COC to examine the possible further reduction of the base period to three years in the context of the scale for the period 2001-2003. We believe that a three-year base period would have the advantage of providing the most recent and therefore the most realistic, approximation of Member States current capacity to pay.

On the issue of conversion rates we share the reservations of members of the COC on the use of purchasing power parity conversion rates for the purposes of the scale, on both conceptual and practical grounds, and the continuing problems with the availability and comparability of purchasing power parity rates.

As regards the suggestion for reintroduction of a ceiling on per capita assessment set at the level of the per capita assessment of the Member State with the highest assessment we endorse the view of the COC that this would clearly be contrary to the principle of capacity to pay.

Mr. Chairman,

My delegation support the position of the G77 and China on the issue of the review of the procedural aspects of the consideration of requests for exemption under Article 19, of the Charter.  We note the view of the COC that any change in the periodicity or timing of the calculation and application of Article 19 could have implications for this procedural aspects and we emphasize that such implications should be taken into account in the review of any such change.

With regard to the possibility of calculating and applying of Article 19 of the Charter at the beginning of each calendar year and at the beginning of the Peacekeeping Financial Period, due attention should be given to the discrepancy between the financial period of the United Nations and some Member States.

We recall that the agenda item before us, is not related to the peace- keeping scale but rather the regular budget. Nevertheless, we believe that the ad hoc mechanism for the  apportionment of the expenses of the PKO s, which reflects the special responsibilities of the permanent members of the Security Council, shall be institutionalized.

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