The reform of PSG “in small steps” but “not in small arms”

The reform of PSG “in small steps” but “not in small arms”
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Tahiti, April 25, 2024 – In response to Édouard Fritch’s oral question on the government timetable for the implementation of the PSG reform, the Minister of Health, Cédric Mercadal, outlined a timetable spread over one year . The discussions started at the beginning of February with the social partners have already resulted in “finalized” draft texts and will soon be submitted to the assembly, says the minister who defends a methodology “small steps” but not “little arms”.

“I am not struck by amnesia”, first launched the President of the Country to the address of Édouard Fritch who accused him, in his oral question this Thursday morning to the assembly, of having a “failing memory”even “selective” in the Generalized Social Protection (PSG) file. In his defense, Moetai Brotherson immediately reacted to the decision taken the day before, in the Council of Ministers, to make contributions, from 1er Next June, members of the government will join the CPS pension plan. A purely demagogic decision which will please public opinion but which will not advance the schmilblick in resolving the balance of social accounts. (Read box).

He then gave the floor to his “excellent minister” of Health to respond to elected Tapura on the merits. For the record and in a few words, Édouard Fritch asked to know the timetable planned for this famous reform, also affirming that the social partners were considering “to increase social charges in order to compensate for a loss estimated at 9 billion francs” following the abolition of social VAT.

Three measures announced for the year

If Minister Cédric Mercadal will not respond on this specific point, he did, however, provide some answers regarding the timetable with proposals. First, he explains having started discussions with the social partners since “1er FEBRUARY” last, and that these “monthly meetings” allowed the establishment of “four workshops”, which themselves led to “finalized draft texts, which were sent to employer and union centers in order to collect their observations and contributions”. The Minister of Health adds that “the meeting is planned within 15 days with the first measures”, without specifying when the elected representatives of the assembly will be informed. On the other hand, Cédric Mercadal gave guidelines, at least for this year, to carry out this reform aimed at building a “robust, fair, equitable and sustainable social protection system”.

Three levers to get there: first, it proposes “a membership review”in order to “put people on the right diets” to avoid disputes and breaches of rights. Then the minister hears “continue benefit reform” started under the previous mandate for better care of the population. Finally, Cédric Mercadal wants to intensify controls, particularly concerning “fraud and hidden work”even if he is well aware that “this work will not take a year: let’s be realistic”. To conclude, the minister also announced that he had proposed to the social partners to swap the “strategic committee” created to work on the universal social protection system, against “a room dedicated to social protection within Cesec”. To be continued…

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