1 Jul 2011

Sharp cuts in French Polynesia public sector by year end

3:38 pm on 1 July 2011

A leaked copy of French Polynesia's planned reforms shows massive cuts in the public sector are to be implemented by the end of the year.

The Nouvelles de Tahiti newspaper has published the document which the assembly is to consider next week after it deferred this week's sitting.

To obtain a French loan of 60 million US dollars, a number of public agencies are to be merged or disestablished.

The plan provides for asset sales and the closure of Tahiti Tourism's 11 overseas offices, with the destination's international promotion to be privatised.

The revamp also entails changing the tax system by reducing the reliance on indirect taxes over three years.

The plan also provides for the closure of the public broadcaster, Tahiti Nui TV, and the news agency, Tahitipresse.

There is no indication how many jobs will be lost as a result of the restructure.