Speakers Focus on Cost Savings, Staff Productivity, as Fifth Committee Considers Proposal to Limit Business-Class Air Travel
Delegates in the Fifth Committee (Administrative and Budgetary), on the second day of the first part of its resumed session, turned their attention today to the way in which United Nations staff members travel the world, taking up a proposal from the Secretary-General aimed at limiting their use of business class.
Currently, under a dual threshold model, staff members below the level of Assistant Secretary-General travelling on official business can go business class for direct flights longer than nine hours and indirect flights longer than 11 hours. The proposed single threshold, if recommended by the Committee and adopted by the General Assembly, would be set at 10 hours.
According to the Secretary-General’s biennial report on standards of accommodation for air travel, which spells out the proposed change, 13 per cent of all commercial airline journeys purchased by the United Nations between 1 July 2016 and 30 June 2018 were in business class. However, the number of such journeys increased year-on-year, from 6,254 in the July-December 2016 period to 6,981 in January-June 2018.
Emphasizing that “today’s business class is yesterday’s first class,” the representative of the United States said travel policies reflect the way in which organizations use their resources. Many Member States, including the United States, have adjusted their travel policies, he said, and the United Nations must adapt as well. Stressing the importance of cost-conscious and mission-essential travel, he said the time is ripe for considering comprehensive travel rules for United Nations-related personnel at all levels.
In the same vein, the European Union’s delegate said that promoting a culture of accountability is key to guaranteeing more prudent use of travel resources. Reaffirming the need for a single-threshold model, he said comments and recommendations from the Advisory Committee on Administrative and Budgetary Questions (ACABQ) provide a good starting point. He also invited the Secretary-General to review air travel policy for members of the United Nations various organs, subsidiary bodies, committees, councils, commissions and conferences.
The representative of Japan said that while a single threshold is worth discussing, greater savings could be achieved by standardizing economy class, as is the case for many Member States, he said. Japan will pay close attention to whether a standard for business class based solely on travel time is adequate, he added.
Speaking on behalf of the “Group of 77” developing countries and China, the observer for the State of Palestine said the Group would be seeking more information. He emphasized, however, that any new system should impose no additional burden on the Organization’s finances nor should it have a negative impact on staff productivity.
Patrick Carey, Director of the Department of Operational Support’s Division of Administration (New York), introduced the Secretary-General’s 77-page report. He said the overall impact of a single-threshold model – measured by several factors - would be essentially cost-neutral, while still achieving significant efficiencies and simplifications. “A great deal of analysis and data modelling has been produced to support this proposal,” he said, adding that its adoption would enable the Secretariat to further streamline its travel administration processes.
Cihan Terzi, Chair of the Advisory Committee, introduced its related report, saying the ACABQ recommends the adoption of the Secretary-General’s proposal, but on a pilot basis in order to analyse its benefits and cost efficiencies, with the results to be presented to the General Assembly during its seventy-fifth session.
In other business, the Fifth Committee took up the Secretary-General’s report on the construction of a new facility for the International Residual Mechanism for Criminal Tribunals in Arusha. The representative of the United Republic of Tanzania, the host country, drew attention to uncertainties resulting especially from the rectification of the heating, ventilation and air-conditioning system due to a design error. He called for joint efforts by all parties concerned to ensure that the project is completed with no further delays.
The Committee also considered reports on the United Nations organizational resilience management system, with the observer for the State of Palestine, on behalf of the Group of 77, welcoming the progress made so far, but requesting more information about compliance and the development of indicators to gauge the Organization’s emergency management capabilities. She added that collaboration with host Governments is key for all emergency and security risk management efforts.
Also speaking today were representatives of Uganda (on behalf of the African Group) and Ethiopia.
The Fifth Committee will meet again on Friday, 15 March to take up questions regarding the global service delivery model, management of after-service health insurance, and procurement.
International Residual Mechanism for Criminal Tribunals in Arusha
OLUFEMI ELIAS, Assistant Secretary-General and Registrar of the International Residual Mechanism for Criminal Tribunals, introduced the Secretary-General’s progress report on the construction project of the new premises for the Mechanism in Arusha, United Republic of Tanzania (document A/73/718). He said that the Mechanism has continued to settle into its new home in Laki Laki on the outskirts of Arusha. The construction is nearly complete, and the staff members now fully enjoy modern, comfortable and environmentally friendly premises. The state-of-the-art courtroom building has successfully hosted the Arusha branch’s inaugural judicial proceedings with the initial appearance of five accused in the Trinabo et al case in September 2018. Earlier this month, the courtroom building hosted the first plenary of Mechanism judges. The project remains within the approved budget of $8.8 million, inclusive of the contingency provision, he added.
CIHAN TERZI, Chair of the Advisory Committee on Administrative and Budgetary Questions (ACABQ), introducing its related report (document A/73/763), expressed concern about delays in the closeout phase of the project for the second consecutive year. The Advisory Committee recommends that the Secretary-General monitor the phase more closely and proactively to ensure outstanding remediations and other activities are implemented without further delay and within the revised timelines and approved resources. ACABQ trusts that the Secretary-General’s next report will be the final one for this project. The Advisory Committee recommends that the final report contain comprehensive information on accountability for the delays, as well as on the contractual remedies and the costs recouped from the architect and the contractor.
NADA TARBUSH, observer for the State of Palestine, speaking on behalf of the “Group of 77” developing countries and China, said that the Group is pleased to note that rectification of the punch list items has been completed. The Secretary-General was unable to submit the final progress report due to uncertainties, especially those resulting from the rectification of the heating, ventilation and air conditioning system due to a design error by the architectural firm. The Group trusts that the final progress report will be presented as soon as the heating, ventilation and air-conditioning work has been completed. The Group emphasizes the need for the Secretary-General and his team to carefully examine the contractual arrangement with the architectural firm, which is responsible for the design errors and subsequent project delays and take appropriate action to quickly address the matter. The Group also stresses the need to establish a facility management scheme after the project is completed.
CAROLINE NALWANGA MAGAMBO (Uganda), speaking on behalf of the African Group, noted that $80,100 in expenses related to 10 per cent of the remaining punch list work will be deducted from the contractor. Pointing out that a project closeout delay caused by the heating, ventilation and air-conditioning system remediation necessitated $280,000 in contingency funds, she said the Group is interested in taking action against the architect. The Group notes the frequent change of the project management team and that the Mechanism had to acquire temporary expertise from the Economic Commission for Africa (ECA) to support the project. The Group trusts that the Administration will analyse the cause of the high turnover of managers in the construction projects and document lessons learned and best practices to be applied to other capital projects.
MODEST MERO (United Republic of Tanzania), associating himself with the African Group and the Group of 77 and China, said that his Government has been working hand in hand with the United Nations since the project pre-construction phase, and the project is now entering its final stage. Expressing appreciation to the United Nations for the existing cooperation between the Mechanism and the Government, he said that such an excellent relationship continued throughout the project cycle. He, however, voiced concern that the Secretary-General was unable to submit the final progress report due to uncertainties, especially those resulting from the rectification of the heating, ventilation and air-conditioning system as a result of a design error by the architectural firm, calling for joint efforts of all players to ensure the project work is completed without further delays.
Organizational Resilience Management
OLGA DE LA PIEDRA, Director, Office of the Under-Secretary-General, Department of Management Strategy, Policy and Compliance, introduced the Secretary-General’s report on progress in the implementation of the organizational resilience management system (document A/73/666). She highlighted some achievements over the past three years, including constant improvement in managing global insurance thanks to the new practice of solicitating broker services. The inter-agency practitioners developed guidelines for the effective use of automated emergency notification systems. The framework for the organizational resilience management system was promulgated globally across the Secretariat.
At Headquarters, collaboration of the key disciplines of the organizational resilience management system has become a regular routine, as has collaboration among different crisis management entities, namely the Senior Emergency Policy Team, the Crisis Operations Group and the Emergency Operations Centre, she said. Offices away from the Headquarters and the United Nations Regional Commissions report that the framework opens the door for joint emergency management among United Nations organizations located at the same duty station. The report also stresses the importance of working closely with field missions, she added.
Mr. TERZI, ACABQ Chair, introducing its related report (document A/73/775), welcomed the efforts made in applying the principles of the organizational resilience management system across the United Nations. The Advisory Committee trusts that the Secretary-General will develop clear rating scales for the key performance indicators to ensure consistency and coherence in implementation and recommends that future policy guidelines integrate maintenance and practice exercises through information, briefings and use of regular practice drills. ACABQ reiterates its recommendations that efforts continue to be made to coordinate and integrate the organizational resilience management system with the Organization’s overall risk management framework. Given the importance of training core staff, the Advisory Committee recommends that critical courses such as business continuity be prioritized in training programmes from within existing resources.
Ms. TARBUSH, observer for the State of Palestine, speaking for the Group of 77 and China, welcomed the progress made in implementing an organizational resilience management system, which must address all elements, including crisis management, security management, business continuity, information and communications technology, disaster recovery, medical emergency response, crisis communication and support to staff, survivors and families. The Group notes the information provided on the level of compliance, but wishes to receive, during informal consultations, further information on the criteria and methods of determining compliance, as well as on the development of future indicators to measure the Organization’s capabilities in emergency management. The Group will also seek further information on the redistribution of responsibilities for the Headquarters governance structure between the Department of Management Strategy, Policy and Compliance and the Department of Operational Support. The Group stresses that collaboration with host Governments is an important part of all emergency and security risk management efforts.
Standards of Accommodation for Air Travel
PATRICK CAREY, Director, Division of Administration (New York), Department of Operational Support, introduced the Secretary-General’s report on standards for accommodation for air travel (document A/73/705), which covers the two-year period ended 30 June 2018, comparative statistics for the two-year period ended 30 June 2016 and trend analyses for the past 10 years. He said that, as requested by the General Assembly, the Administration has continued to limit the use of exceptions to the standards of accommodation for air travel, with the overall number of requests decreasing from 1,293 for the July 2014-June 2016 period to 1,204 for the July 2016-June 2018 period. Section V of the report presents Secretariat-wide travel statistics based on data extracted from the Umoja travel module, while Section VIII presents an enhanced analysis and more detailed recommendations concerning a single threshold for the use of business class by staff before the level of Assistant Secretary-General and eligible family members.
Elaborating, he said the Secretary-General is proposing to further simplify and improve the Secretariat’s travel policy by implementing a single-threshold, total travel time model for the use of business class. Based on the Secretariat’s historical travel pattern, the overall impact – measured by several factors – of a single threshold model set at 10 hours would be essentially cost-neutral, while still achieving significant efficiencies and simplifications. If adopted, this change would enable the Secretariat to further streamline its travel administration process, paving the way to more fully utilize the enabling nature of technology and to benefit from its related efficiencies. “A great deal of analysis and data modelling has been produced to support this proposal,” he added.
Mr. TERZI introduced the Advisory Committee’s related report (document A/73/779), saying it recommends the adoption of the Secretary-General’s proposal, but on a pilot basis. During that pilot period, full use should be made of Umoja data to assess the benefits and cost efficiencies of the 10-hour threshold, and then to draw conclusions and lessons learned. The ACABQ recommends that the results of the pilot project should be presented to the Assembly during its seventy-fifth session for consideration and decision by Member States. With respect to the authority to approve exceptions to the standards of accommodation for air travel, which is delegated to the Under-Secretary-General for the Department of Management, Strategy, Policy and Compliance, he said the ACABQ trusts that the approval process will not be decentralized under the new system of delegation of authority. It also trusts that more efforts will be made to encourage staff members to voluntarily downgrade from their entitled class, where possible. He went on to convey the Advisory Committee’s ongoing disappointment with the low overall level of compliance with the advance purchase policy, emphasizing the need for stronger efforts in that regard.
MAJED S.F. BAMYA, observer for the State of Palestine, speaking on behalf of the Group of 77 and China, said the Group will examine the Secretary-General’s proposals with a view to empowering the Secretariat to deliver on all its mandates in a cost-effective manner. It is crucial to make full use of Umoja to improve the quality and transparency of travel-related information provided to Member States. The Group agrees with the Advisory Committee that the approval process for exceptions to the standards of accommodation for air travel not be decentralized. The Secretariat should meanwhile redouble its efforts to address the low compliance rate with the advance purchase policy directive.
The procurement process for all air travel management service contracts must fully comply with general procurement principles, he said. On the proposed establishment of a single threshold for business class travel, he said the Group will seek further information, but emphasized that any new system should not impose an additional burden on the Organization’s finances nor should it have a negative impact on staff productivity. He concluded by stressing that any changes concerning standards of accommodation for air travel remain the exclusive prerogative of the Fifth Committee and the General Assembly.
SERGE CHRISTIANE, European Union, stated that official travel resources should be used more judiciously, and encouraged every United Nations entity to strive for greater discipline. Promoting a culture of accountability is key to guaranteeing a more prudent use of travel resources, he said. Given that over-spending on travel is a recurring issue, he called for greater use of Umoja to ensure greater transparency on travel costs. He recommended that the level of compliance with the advance purchase policy become a performance measurement for managerial evaluations.
First-class travel is not in the spirit of a modern, accountable, effective and efficient United Nations and it should be abolished throughout the Organization, he said. Business class today is the same as first class yesterday and, pending the formal abolishment of first-class travel, voluntary downgrades should continue to be incentivized. Reaffirming the need for a single threshold, total travel time model, he said the Advisory Committee’s comments and recommendations are a good starting point for refining its implementation and use. He went on to invite the Secretary-General to carry out a long overdue review of air travel policy for members of the United Nations various organs, subsidiary bodies, committees, councils, commissions and conferences.
BRIAN CONROY (United States) said an organization’s travel policies and their implementation provide a window into how it plans and uses its resources. Travel luxuries limit the availability of funds for essential travel and exposes an organization to reputational damage. Emphasizing that “today’s business class is yesterday’s first class,” he said it is time for the Committee to consider how it can broaden the categories of United Nations personnel subject to the ban on first-class travel. He added that while the United States appreciates the Secretary-General’s proposal for a single threshold for business class, it is disappointing that cost savings was not a primary goal. It is also disappointing that, while economy-class travel decreased in 2018, business and first-class travel increased. Moreover, only 35 per cent of official travel conformed to the advance purchase policy, he said, adding: “Clearly, the Organization can and must do more to address these challenges.” He went on to say that many Member States, including the United States, have adjusted their travel policies and that the United Nations – whose travel expenses are funded by Member States’ taxpayers – must also adapt, update and focus its resources where they can have the greatest impact. Emphasizing the importance of cost-conscious and mission-essential travel, he said the time is ripe to consider comprehensive travel rules for United Nations-related personnel at all levels.
TOMOYO YAMAGUCHI (Japan) said it would be worthwhile for the Committee to discuss how it can reverse the trend of ever-rising travel costs while ensuring the smooth running of the Organization, including through better use of information and communications technology. While Japan believes that a single threshold for business travel is worth discussing, greater savings could be achieved by standardizing economy class in the United Nations, as is the case for many Member State, he said. Japan will pay close attention to whether a standard for business class based solely on travel time is adequate.
ESHETE TILAHUN WOLDEYES (Ethiopia) thanked all delegates who took the floor on Monday and today to express condolences following the loss of Ethiopian Airlines flight 302 on 10 March. Ethiopian Airlines is known for its excellence of service, safety and security, “but there is a limit to human talent and knowledge”, he said, adding that an investigation is under way in cooperation with all partners and stakeholders, including The Boeing Company. He added the Permanent Mission of Ethiopia to the United Nations stands ready to render services as needed.