The government has released 130 million euros in additional aid for businesses and public services in New Caledonia to help deal with the crisis that began in mid-May, the Ministry of the Economy announced on Wednesday. “This state aid will in particular make it possible to finance the operation of public services (health, electricity) and the payment of social benefits in September.”Bercy indicates in a press release, specifying that their payment will be conditional “to the adoption of reforms to improve the New Caledonian economic and social model”.
With this new aid package, the State’s support for New Caledonia since the riots that ravaged the territory and destroyed its economic fabric amounts to 400 million euros, excluding support for the nickel industry, the press release adds. In detail, “if the conditions set by the State are respected”it will pay 48.4 million euros in repayable advances to the community of New Caledonia, including 41.9 million to finance the local health insurance system and 4.8 million euros to avoid the cessation of payment of the electricity system manager Enercal.
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“Safeguarding, rebuilding and reconstruction”
While 100 million euros have already been paid to the New Caledonian government at the end of July to finance the partial unemployment scheme, an additional 61.4 million euros will be released to finance it in September and October. According to local government figures, the destruction, looting and fires have caused at least 2.2 billion euros of damage and nearly one in five employees is on total or partial unemployment. At the end of August, the New Caledonian Congress adopted a resolution requesting massive state support of 500 billion Pacific francs (around 4.2 billion euros) to rebuild the archipelago.
Meanwhile, the local government has begun public consultations ahead of a plan “safeguarding, rebuilding and reconstruction” aiming to change the economic and social model of New Caledonia. On Tuesday, the loyalist leader and president of the Southern Province – the richest and most populated in New Caledonia -, Sonia Backès, was received at the Élysée by Emmanuel Macron. “On the economy, we discussed the need to move very, very quickly to a phase of massive public investment to restart the economic machine. (The Head of State) told me that he shared this vision of things.”she said after the meeting.
