20 Oct 2010

French report says French Polynesia situation is serious

2:36 pm on 20 October 2010

A French government financial report, which outlines massive cuts to be made in French Polynesia, has been officially tabled - a week after excerpts of a leaked copy was published by a Tahiti newspaper.

The report was compiled by a top French official, Anne Bolliet, on behalf of the French overseas territories minister, Marie-Luce Penchard.

Mrs Bolliet says the situation is serious as since 2008 the territory has no longer managed to repay its debts which at the same time have kept growing.

She recommends cuts to the cost of running the government and the closure of a dozen publicly funded entities, such as a television network and a news agency.

The Social and Economic Council says such closures would lead to thousands of job losses within a couple of years, raising the question if such a deterioration is being sought before help is offered.

The president, Gaston Tong Sang, says the report is not to be taken literally but says some housekeeping needs to be done.