The governor of the Bank of France has spoken out for more competition and lower public sector wages in New Caledonia to help fight the high cost of living in the territory.
Christian Noyer made the comments in Noumea after a meeting of the leaders of the defacto central bank of the French Pacific territories and following a 12-day general strike last month to force prices on some goods and services to be lowered.
Mr Noyer says jobs need to be created and salaries aligned with productivity gains.
He says this involves a gradual winding down of the indexed salaries of the territory's French public service members, whose pays are about double of those in mainland France.
Mr Noyer says despite an economic slow-down in New Caledonia, its economy will be growing thanks to its nickel plants.