7 Aug 2002

Niue Government decides against job cuts

4:36 pm on 7 August 2002

The Government of Niue will not cut jobs to meet its huge budget deficit.

It had delayed tabling the Budget for a month while departments looked at options for cutting spending.

They considered reducing the working hours of public employees by up to 20 percent but the Premier Young Vivian today ruled this out.

"20 percent, you're talking about people that keep this place going.So if you take that away from people, you know, they're not going to pay their bills, they're not going to spend their money, and things will absolutley stand still."

The Premier of Niue, Young Vivian, says the Government believes it can make up the deficit of around half a million US dollars, with very strict controls on other spending.

He says they may also tighten eligibility for the pension and will look at other benefit payments.

Mr Vivian says they hope to table the Budget tomorrow.