Asia-Pacific Network: 1 January 1999
DEVELOPMENT: NEW CALEDONIA ADOPTS ECONOMIC RESCUE BUDGET
A new Budget for 1999 has been adopted in New Caledonia which aims to rescue Air Caledonie International and boost the nickel mining industry.
By JACQUES BOENGKIH in Noumea
THE NEW CALEDONIA TERRITORIAL CONGRESS has adopted a Budget of 71 billion French
Pacific Francs (US$700 million) for 1999.
The budget was adopted by a large majority of RPCR, FCCI and FLNKS members on
December 30.
Marie-Noelle Themereau, President of the Finance Committee, said New Caledonia
had a healthy economy which allowed the Congress to play its role of revenues
collector.
Mrs Themereau said such a good budget also resulted from "good governance
policies", specially in the spending of public funds.
More than 61 billion Pacific francs will be to cover the running costs of the
territorial administration which the major employer in the territory.
The balance will be for investments such as CPF500 million will be invested
in Air Caledonie International to save the airline from a financial crash.
Also, CPF450 million will be spent on saving the nickel mining sector which is
currently in a disastrous situation due to a dramatic fall of exports.
The prawns export industry will get CPF250 million.
FLNKS members complained because CPF250 million were supposed to be invested in
supporting the SMSP Kanak controlled mining company in taking over of Kouaoua
Nickel Mining Corporation, a company formerly owned by Michel Pentecost which has
been liquidated.
The RPCR-FCCI coalition replied that it had decided to invest more money in the
mining sector and to help more miners that were victims of the nickel crisis.