3 Oct 2011

French Polynesia politicians face pay cuts

5:04 am on 3 October 2011

The French Polynesian assembly has been forced to approve pay cuts for political leaders in line with a change of the organic law adopted by France.

This means assembly members have had their remuneration reduced by 10 percent to no more than 7,800 US dollars a month.

The assembly earlier rejected a proposal by Sabrina Birk to cut entitlements in half, reflecting a call by president Oscar Temaru in May when he suggested such a cut to balance the budget.

The assembly also opposed a bid by Sandra Levy-Agami who proposed that politicians should be paid the minimum wage.

Meanwhile, the territory's Social Welfare Fund, which is responsible for health care and pensions, has rejected a government bid to give it a 55 million US dollar loan.

The Fund, known as CPS, says it is not a bank.