Statement by Mr. Hidehiko Hamada, Deputy Permanent Representative of Japan at the 57th Session of the Commission on Narcotic Drugs, Item 12

Mr. Chairman, Distinguished Delegates,
 

On behalf of the Japanese Government I am pleased to address the 57th session of the Commission on Narcotic Drugs. To begin with, I would like to express our sincere appreciation to you Ambassador Shamaa for your successful chairing in the high-level segment of 57th CND.

I am sure that under your guidance and leadership we will come to a very successful outcome with this regular session as well.
 

Mr. Chairman,
 

Japan highly commends the UNODC’s role and expertise in the areas of drugs and crimes, and has actively supported the UNODC’s activities through its regional and thematic programmes primarily in Afghanistan and its neighboring countries, South-East Asia, West and North African regions. Japan continues to give high priority to international cooperation on world drug problem and therefore hopes to continue working with the UNODC and the Member States in a constructive manner.
 

Mr. Chairman,
 

With regards to the full cost recovery, we would like to first draw your attention to Res 56/17, especially para 13 which stresses that the provisional implementation of a new funding model in the biennium 2014-2015 will need to be reviewed by the Commission to assess its effectiveness and further feasibility. Japan would like to highlight the following issues that need to be addressed for its review.
 

Mr. Chairman,
 

While we were hopeful of well prepared and smooth introduction of FCR, we have already encountered some difficult situations including delays in preparing project proposals due to the complexity of FCR, and we have seen some inconsistency in its application. In this regard, we take note of the FCR guidance note developed by the secretariat while we would have appreciated it if such guidance were provided when we were discussing the FCR at the reconvened session. The guidance note indeed provides us the basic ideas of items to be included in FCR. For the better understanding on FCR, we would request the secretariat to provide us with further information that addresses the challenges and lessons learned during the initial phase of its provisional implementation.
 

Mr. Chairman,
 

Also, during our discussion with the secretariat on new FCR-applied proposals, it has become evident that there is a high amount of cost associated with some regional and country offices. In some cases, such cost amounts to 23% including 13% of PSC. We note our concern that such high cost rate will make UNODC projects less attractive for the donors compared with other international organizations and lead to possible decrease in SP funding despite UNODC’s unique capacity in drug and crime areas. Japan would appreciate the UNODC’s further efforts for efficiency and cost effectiveness to reduce management costs so as to minimize the cost recovery rate.
 

Mr. Chairman,
 

Under the new funding model, transparency, accountability, efficiency and cost-effectiveness are critically important. In this regard, we would like to draw your attention to the use of PSC. As we have expressed our views on many occasions, Japan would like to re-emphasize the importance of provision of timely and sufficient information, regarding the PSC particular, details of its expenditure and its appropriateness.
 

Mr. Chairman,
 

As we have pointed out last year, the down trend of GP contribution might be further accelerated as part of the effect of full cost recovery funding. Provisional implementation of FCR could affect the donors to the General Purpose Funding, particularly for those who made their contribution based on understanding that their GP contribution would be allocated to the management cost of the UNODC.

Japan would like to urge the UNODC to make persuasive case for Donors’ support for GP funding.
 

Mr. Chairman,
 

Let me conclude with our appreciation to UNODC’s tremendous work in the area of drug and crime. With a view to continue our support to the UNODC, Japan would reassure you to engage in constructive dialogue to improve the financial situation of the office.
 

Thank you.