17 Jun 2013

Tahiti's Flosse opposes cutting indexed pay for public servants

3:16 pm on 17 June 2013

French Polynesia's president, Gaston Flosse, has warned that it would be a catastrophe if the indexed salaries of French public servants in Tahiti were to be reduced.

Such a cut has been proposed by the head of the Bank of France for New Caledonia to curb the cost of living, but Mr Flosse wants them to keep their pay, which is about double the salary paid in mainland France.

He says there will be higher taxes on top incomes amid expectations of an economic recovery by the end of next year.

Mr Flosse has meanwhile chosen a former French overseas territories minister, Brigitte Girardin, as advisor for his talks planned with the French President, Francois Hollande, next month.

She will reportedly help run the territory's mission in Paris.