New Caledonia: There is an urgent need to revive economic machinery, Mimsy Daly, President of Medef-NC

Following an interview with NC News, the president of Medef-NC has returned to some economic points in the region that have experienced many events over the past two years. Between the referendum and the health crisis, there is now a potential crisis on raw material prices associated with the upcoming Ukrainian conflict, and the territory must find an institutional and economic path to make significant changes. .. Several themes were discussed during the exchange.

Towards the end of the health crisis

The recent lifting of vaccination obligations recorded in Congress on February 24 was received with great peace of mind by local businesses.
“This vaccination obligation, especially the so-called” sensitive “sector, has unplanned sanctions and is under discussion, so the deadline of February 28 will make a decision at this level. I couldn’t wait. Sanctions is not an exact term, it is the suspension of employment contracts if not vaccinated, causing many problems for businesses. We have to be very clear. Yes, of course, lifting vaccination obligations involves lifting company restrictions, and we can only be satisfied with it. “..
An improvement that does not mean the end of the constraint. Judgment was made because certain measures were taken for 7 weeks, wearing masks, or even during periods of Covid-related outages. “Too long” Depends on the employer’s organization.
According to Mimsy Daly, the lifting of these measures is “Consistency issues. One of the main constraints that still remains is gauges, which directly affect some sectors. Restaurants, bars and sports halls severely limit access to facilities. It has been forced to do so and has a great impact on sales.
According to the president of Medef-NC, putting an end to these obstacles to business involves conducting a clear health assessment, especially as part of the services of the Department of Health and Social Affairs (DASS). ).

Retirement from 60 to 62

The territory recently announced a postponement of retirement age, which will increase from 60 to 62 in a gradual six-month phase. Measures taken in the face of the very difficult situations faced by the Family Allowance Compensation Fund, Occupational Accidents and the Worker Provident Fund (CAFAT).
With a deficit of CFP francs of 7 billion (58.8 million euros) in 2021, with the same provisional evaluation in 2022, the system “Entered the wall” According to the president of Medef-NC.
Therefore, this decision is welcomed by businesses, and employers’ organizations hope that the latter, which is valid for the private sector today, will also apply to the public sector.
However, this is not the definitive solution, according to Mimsy Daly.
“But key demographic trends, longer lifespans, and increased wage and pension rights mean that system sustainability issues must be reassessed on a regular basis.”

Public spending, Achilles heel of territory

Another major subject peculiar to the territory is its significant public spending. A well-known question in New Caledonia, it was recently revived by a visit by the President of the Foreign Business Federation (FEDOM). He turned his finger on excessive public spending.
Perspectives shared by Medef-NC:
“Yes, especially when considering tax reform in New Caledonia, that’s the sustainability of our model. Today, public spending is over 60% of GDP, and in an autonomous economy it’s a compulsory tax rate of over 60% of GDP. Is imposed, but this cannot be maintained. “
The issue of public spending and its reduction is an important issue, according to the president of employers’ organizations, especially in the context of skill transfer. A “overhaul” The whole system “Taxes can’t solve everything.”
Discussions are taking place among governments, parliaments, business people and social partners. “We hope that this dialogue will continue in the coming weeks and that tax reform will truly reflect these economic implications in particular.”

Fighting inequality at the heart of territorial projects

The axis defended by the institution, the fight against inequality is a necessity for the development of the territory. According to Mimsy Daly “The first inequality is employment inequality. New Caledonia’s employment rate is too low, 10 points lower than countries with similar GDP and wealth, so we have a fountain to restore employment on our territory. I have to find it. “
Another important area of ​​development for Medef-NC in this area is the reduction of tax inequality to balance support for the economy and prevent it from happening. “I am very concerned that only one sector will do damage to others.”

Economic recovery due to investment

After two years of health and economic crisis, and in the context of uncertainty about the geopolitical situation in Europe, the resurgence of the New Caledonian economy is at the heart of remorse. According to Medef-NC, the main key to this issue is the issue of public and private investment. Areas closely related to tax affairs.
“Because the subject of tax is basic, especially the need to resume investment in New Caledonia, it is not only a public investment, but also an attraction for private investment both domestically and internationally. This is an investor. We are assuming a favorable situation for us. We are not completely there yet. “
Another important point in this context is the point of employment. Apart from the inequality issues mentioned, territorial agents report strong tensions on recruitment and skills in specific sectors.
Mimsy Daly pays particular attention to the shortcomings of the tourism, medical, auditing, finance and accounting sectors.
Access to this skill is essential, and reopening the border at the end of the health crisis is the first good news to enable the skill to be acquired in France. However, according to the president of Medef-NC, working on the development of training within the territory is also a problem to address this issue.

Institutional projects, lesser known to the business community

A referendum on New Caledonia’s institutional projects is scheduled for June 2023, but major changes could affect the organization and framework of New Caledonia’s business community itself. Questions and discussions that want Caledonia’s business community to be involved, but are worried about employer organizations from a calendar perspective.
“The debate seems to have already been postponed at the end of the presidential election, and we have a year left to decide on this institutional project, so we say we’re a little worried about a very candid schedule. Today, neither by state nor by local level executives, there is a real way proposed to us. “
If Medef-NC wants to consolidate the debate, it’s a matter of making the calendar visible first, lamented Mimsy Daly: “Today we have nothing.”
“It’s not very clear how this project will be shaped. If we had to vote for New Caledonians in June 2023, it seems far from us any lead. It’s a method that everyone can be satisfied with. ”

Damian Chaillot