The Norfolk Island government is planning to slash spending and cut jobs as the economy remains in the doldrums.
Australia's funding allocation to the territory for the coming year is just over $US5 million.
But finance minister Tim Sheridan says that's still about $US2 million short and spending needs to be slashed by 15% across the board.
The island's economy, which depends on tourism, is still in a slump. Radio New Zealand International reports dozens of families have been split for months at a time over the past two years as breadwinners go to Australia to work.
