24 Jun 2013

Index tweaks won't hurt New Caledonians, says top banker

1:40 pm on 24 June 2013

The Director of the Overseas Central Bank of New Caledonia says families will not suffer a reduced standard of living with the gradual winding down of indexed salaries.

Thierry Beltrand has echoed comments earlier this month by the visiting governor of the Bank of France, Christian Noyer, calling for more competition and lower public sector wages to help fight the high cost of living in New Caledonia.

Mr Beltrand agrees that the reduction of indexation of public service salaries, which are almost double those in mainland France, is imperative.

"Salaries must lower and costs will lower but you always keep your level of life. He never said: just cut the indexation and the prices stay here. No. Everybody must agree with this. But it's a very long-term process."

Thierry Beltrand