27 Jun 2013

New Caledonia's secretary of Labour says tax reform will help territory

4:39 am on 27 June 2013

The New Caledonia government's secretary of Labour, George Mandaoue says tax reform will help the territory as it prepares for possible independence.

An arrangement to end a recent strike in New Caledonia by unions includes plans for tax reform by mid-2014.

Mr Mandaoue says the current tax set-up mainly benefits the rich and needs to be reworked in the interests of equality.

There's an increasing focus on the local share of revenue from New Caledonia's thriving nickel mining industry as the territory enters the final phase of the Noumea Accord which provides for a possible referendum on independence between next year and 2018.

Mr Mandaoue says too much revenue flows untaxed out of New Caledonia.

His words are translated.

"Independence is economically affordable because all the money has been taken out by the companies like the SLN, Vale and all this, insurance, banking... there's a lot of money going out and it's not being taxed."

The New Caledonia government's secretary of Labour, George Mandaoue.