1 Oct 2013

French Polynesia leadership split over hotel tax exemption calls

2:40 pm on 1 October 2013

A public disagreement has erupted in French Polynesia over its Paris-based representative's call to end tax exemption for hotel developments.

Brigitte Girardin, who is a former French government minister, is being contradicted by French Polynesia's president, Gaston Flosse, who says exemptions should stay to develop the sector which is a vital pillar of the economy.

This comes amid ongoing questions over the legality of her contract as it was signed by the vice-presidency, which under the autonomy statute doesn't exist as an entity or institution.

The publisher of the Tahiti Pacifique monthly, Alex du Prel, says a corruption conviction hampers Mr Flosse.

"They are doing acrobatics with the law. Why? Because otherwise Mr Flosse cannot be president. If you have a president who cannot sign and decide on money matters and cannot even sign a five-dollar cheque because he is barred by the law, he cannot be president."

Alex du Prel says it is not clear why Mrs Girardin called for an end to the tax exemptions.