22 Feb 2007

Niue opts for cuts as budget crisis bites

5:23 pm on 22 February 2007

The government of Niue has agreed to a raft of cuts to try and ease a financial crisis.

It is cutting the salaries of all public servants, including parliamentarians, by ten percent.

As well village councils grants have been cut in half, while those for church pastors and community development assistance have been frozen.

The finance minister, Fisa Pihigia, says they expect to save about a million US dollars through the changes.

The cuts come after an outcry over earlier plans to reduce the hours of some public servants by 20 percent.