25 Jun 2013

Forced price cuts come into effect in New Caledonia

1:41 pm on 25 June 2013

New Caledonia has adopted lowered prices on a range of consumer goods in line with an agreement drawn up last month to end a 12-day general strike against the high cost of living.

The measures involve a ten-percent price drop on about 500 products that are expected to make up 80 percent of the needs of the average consumer.

The arrangement to end the strike by most unions also provides for a tax reform by mid-2014, introducing a tax on activities that will absorb a range of current levies.

The conflict has also rekindled debate on whether the indexed salaries of public servants paid by France should be gradually cut.

The cost of living is much higher than in France, in part because of a relative lack of competition.