13 Oct 2011

Tripartite report calls for overhaul of New Caledonia economy

2:32 pm on 13 October 2011

A report has been presented in New Caledonia aimed to help retool the economy after mass protests against the high cost of living earlier this year.

The recommendations have been drawn up by a committee made of members of the unions, Congress and the government.

The committee found that key factors for the inequality in the resource-rich territory were high import levies, inadequate taxation of capital, a lack of competition among wholesale distributors as well as high costs of transport and energy.

It recommends more transparency of margins and prices, the examination of tax loopholes, taxing top incomes and setting a levy on expensive property.

The tri-partite accord says 21 percent of New Caledonians live in poverty which makes it necessary to overhaul the territory's socio-economic system.