16 Feb 2007

Niue government considers general ten percent pay cut

3:19 pm on 16 February 2007

The Niue government is looking at new ways of reducing its spending after widespread opposition to plans to cut public servants' work hours by 20 percent.

The government needs to cut about a million US dollars from its spending over the next five months.

It wanted public servants to go on a four-day week but the chamber of commerce and the public service association are strongly opposed.

Finance minister, Fisa Pihigia, says they are now are looking at other proposals.

"One of the proposals at the moment is rather than the four day week which only affected some of the workers, why not ten percent cuts across the board that will affect everyone. We haven't changed the former decision we made but we have to consider the ten percent at the moment in relation to the response from the Niue public service association."

Fisa Pihigia says a decision is likely early next week.