May I begin by congratulating the President on his election to preside over the General Assembly at its fifty-second session. We are in good hands as we begin our work during what the Secretary-General has called “the reform Assembly.” I know, too, that my Foreign Minister, on whose behalf I am speaking, would want to warmly congratulate the outgoing President, Ambassador Razali Ismail of Malaysia, on his efforts during the past 12 months. It has been a challenging time, and he has demonstrated the decisive leadership we all expected of him. Two years ago, at the fiftieth anniversary of the United Nations, world leaders undertook to give the twenty- first century an Organization equipped, financed and structured to serve effectively the peoples in whose name it was established. With the year 2000 now only 27 months away, we are still far from that goal. This is a matter of great concern to New Zealand. We firmly believe in the United Nations as a vehicle to a better life for the world's citizens, and not just for those who live now. We have a responsibility to strengthen the Organization for our grandchildren and beyond. We must not let them and ourselves down by allowing an unreformed United Nations to slide into increasing irrelevance. We do not pretend the process of reform is easy or finite. As the Secretary-General has said, “Reform is not an event; it is a process.” [A/51/950, para. 25] Our own in volvement on the intergovernmental track, including co- chairing the Working Group on the Strengthening of the United Nations System and the Working Group on an Agenda for Development, has given us a good appreciation of the complexities involved in producing positive outcomes acceptable to 185 Member States. We know the Secretary-General faces the same issues with his 16 July package. As with any package, it is inevitable that some Member States will find fault with individual elements. But we are firmly of the belief that the package should be viewed as a whole. This will be for the greater good of the Organization. Difficulties with individual elements of the package should not be allowed to unpick the overall good which is in it. We appeal to Member States to acknowledge this reality and to give the Secretary-General their generous support. It is small countries like New Zealand, and developing countries, which, as we see it, stand most to benefit from what the Secretary-General is trying to achieve. To reform and strengthen the United Nations effectively, we see a need to redistribute resources away from administration and into areas which are important for those of us who place a high priority on the United Nations itself. We support efficiencies, not cost-cutting. The crucial difference between the two is that one approach seeks simply to save money without regard to the impact on the Organization. We cannot support this. The United Nations is too important to us to allow such a downgrading. An approach based on efficiencies allows us to reinvigorate the United Nations by reinvesting the money saved from outdated administrative practices. This is central to the Secretary-General's package. In particular, the proposal for a “development dividend” channelling resources freed by administrative efficiencies into strengthening the development activities of the United Nations is most welcome. We can certify from our own national experience that the sort of management reforms proposed in the package do indeed lead to a reduction in administrative overheads, allowing more to be delivered in terms of substantive programmes. At a time when development funds are diminishing, the significance of this step should not be lost. New Zealand is a country that is increasing its overseas aid — by 40 per cent since the 1992 United Nations Conference on Environment and Development, the Rio Summit. Our contributions through the United Nations system have also increased by nearly 50 per cent over the last five years. But the global trend is the opposite, particularly among the larger traditional donors. It is becoming harder and harder for Governments to meet their Charter commitment to promote the economic and social advancement of all peoples. One of the modest outcomes of the last two years of reform efforts within the United Nations has been the elaboration of an Agenda for Development 19 reaffirming the primacy of development, setting objectives and recommending ways of achieving them. But, with the best will in the world, implementing that Agenda will come to naught in the absence of adequate funding. The Secretary-General's reforms are designed to deliver more for development. Equally important, they are designed to boost confidence in the United Nations, confidence which two weeks ago was given tangible form by Mr. Ted Turner's billion-dollar grant to assist United Nations agencies in key development activities. That generous offer has given the Organization a real boost and could be a catalyst for leveraging further private-sector funds for development. We must support the Secretary- General's efforts to make the United Nations the best vehicle for delivering such assistance. Member States need to trust the Secretary-General to fulfil his responsibilities under the Charter: to give effect to the policy directions which they set. We need to be clear and realistic in the priorities we set for the United Nations. We cannot mandate the Organization with more and more new tasks and somehow expect these to be achieved within current resources. And, having set the priorities, we must resist the temptation to micro-manage. This will involve a sea-change in the way Member States have become accustomed to operating. The Fifth Committee still makes decisions about staff numbers and placement within the Secretariat, administrative decisions that in any modern organization would be the responsibility of its managers. We know that the transitional process of change will not be easy for those working in the Secretariat either. But — and we are conscious of our own experience in New Zealand in instituting public-sector reform — the managerial and results-based budgeting proposals in the July package will improve work performance and will deliver greater job satisfaction to those working for the United Nations. The Organization's most important resource is its people. The package recognizes the vital importance of investment in staff. If the best and brightest are to be attracted to and retained by the United Nations, they must be recruited, trained, promoted and paid according to procedures which are as good as the best employed by Member States. It is also important to stress here the loyalty owed to the Secretary-General by those who work for him. He has the right to expect their full support for his leadership and for the initiatives he puts forward. Anything less would be dishonourable, would subvert due process and would potentially disenfranchise Member States. It could not be tolerated. I referred earlier to the intergovernmental track. It is worth touching on the key issues of Security Council and financial reform. On the former, New Zealand will judge specific proposals for enlargement of the Security Council by the yardstick of democracy and the representativeness of the institution as a whole. Increasing the proportion of permanent to non-permanent members runs counter to this principle. Nor could a package on Security Council reform be acceptable to us without substantive proposals opening up and modernizing the workings of the Council. Sunshine, an American jurist once observed, is the best disinfectant. Member States must continue to participate in the debate in the search for a consensus solution. On financial reform, New Zealand is strongly concerned about the crisis facing the United Nations. It is true that there are problems with the scales of assessments for both the regular and the peacekeeping budgets. The present floor has a negative impact on smaller, vulnerable nations, such as the South Pacific island countries, New Zealand's neighbours. This is just one example of the kind of problem that needs to be addressed. But those who want to see changes made to the scale need to offer genuine inducements, not threats. We cannot accept that any Member State is entitled to withhold payments unilaterally or that the assessment of those countries that will not pay their dues should be picked up by others. All assessed contributions must be paid in full, on time and unconditionally. It is a violation of international legal obligations to do otherwise. This must be regarded with the utmost seriousness by Member States. It undermines the Organization's ability to operate. It penalizes, through damage to the Organization, those Member States that abide by their obligations. When the State responsible for the largest percentage of arrears owed to the United Nations is also the richest, and when that State in addition attaches conditions to the payment of only a portion of what it owes, it is understandable that these actions should generate real scepticism in this Assembly. This sorry state of affairs must be resolved quickly. But it can be resolved only on the basis of a credible commitment that all conditions will be eliminated now and that all payments will be made on time. And that means in January each year. 20 I would like to raise another reform issue which has not featured prominently in discussions to date, namely United Nations regional groupings. It seems to us that this is an issue that deserves examination. The groupings are in need of revision to bring them up to date with present-day geopolitical realities. It is anomalous, for example, that our Pacific island neighbours, members with us of the South Pacific Forum grouping, belong to the Asian Group while, for historical reasons, New Zealand belongs to the Group of Western European and Other States. The fundamental importance we accord our membership of the institutions of the South Pacific Forum, of the Asia-Pacific Economic Cooperation Council and of the Regional Forum of the Association of South-East Asian Nations (ASEAN), and our relationship with ASEAN itself, should be able to be better reflected in the regional groupings. We accordingly see value in a reconfiguration of New York electoral groupings to bring them more in line with those used elsewhere in the United Nations system, where New Zealand in most cases sits with our South Pacific partners and our East Asian neighbours. Developments in other regions will result in further anomalies in the present structure. We see at a future stage some long and complex negotiations over regional seat allocations for a revised system of regional groups. New Zealand of course will join with others in negotiating new and equitable allocations of seats. While we look forward to the outcome of that process, we realize that it will not come overnight. In the meantime, and as a matter of high priority, my delegation is working to forge a closer relationship with the Asian regional group in New York. I would like to close my statement by focusing once more on the utmost importance of Member States' giving positive endorsement to the Secretary-General's package at this General Assembly, as New Zealand will be doing — not only because it provides a positive and concrete start to a reform process, but also because the alternative of not supporting the Secretary-General will, in our view, seriously undermine the credibility of the United Nations. For two years the United Nations has been involved in the current reform exercise. But none of us can pretend that reform is an end in itself, or that introspection is an ongoing excuse for inaction. The United Nations exists to deliver concrete, substantive assistance to the hundreds of millions most in need. No amount of self-analysis is a substitute for that. Moreover, sustained emphasis on introspection will erode the Organization's capacity, and possibly also its will, to perform the tasks for which it was created. The challenge now is to embrace the bold programme of reform outlined by the Secretary-General, to use this General Assembly to begin to implement it, and then to direct our energy where it rightly belongs, to taking practical steps to reduce suffering and build a better and more peaceful world: like drawing up a solid, practical programme for alleviating poverty in the coming decade; like establishing an international criminal court which will ensure that individuals are held responsible for war crimes; like supporting and enhancing the United Nations capability for preventive diplomacy; and like invigorating the United Nations capacity for peacekeeping. These are the standards by which the real success or failure of the United Nations will be judged. New Zealand is determined that the verdict will be a positive one. Working together, we can ensure that it is.