An emergency 231 million euro (NZ$428 million) French aid package for New Caledonia has been reduced by one third because of the French Pacific territory’s current political crisis.

The initial French package was endorsed in early December 2024, in an 11th-hour vote at the French National Assembly, minutes before French Prime Minister Michel Barnier and his government fell in a motion of no confidence.

The “end of management 2024” bill amounted to 231 million euros, specifically to allow New Caledonia’s essential public services to keep operating in the next few weeks.

But the financial package was pre-conditioned to New Caledonia’s Congress endorsing reforms before the end of the year.

Out of the three tranches of the total aid, the Congress managed, during its December 23, 2024, sitting, to endorse two.

Then, on Christmas Eve, New Caledonia’s government fell, due to a resignation by one of its members, Calédonie Ensemble.

Domino effect
Since the government led by Louis Mapou was toppled on Christmas Eve, pro-independence MPs at the Congress refused to take part in further votes.

They did not turn up on the Boxing Day sitting on Thursday, December 26.

This made it impossible for Congress to endorse the third and last tranche of the reforms, which were a precondition to the last third of the French aid package.

Letter from Bayrou and Valls
In a letter received by New Caledonia’s MPs at the weekend, both new French Prime Minister François Bayrou and his new Minister for Overseas Manuel Valls explained the failure for New Caledonia’s Congress to endorse the last third of the demanded reform package.

It means the whole package of 231 million euros will not be paid in full, and that one third of the total will have to wait until this year.

The confirmed amount, for the time being, is now 154 million euros (NZ$285 million) which will go towards New Caledonia’s Provinces and municipalities (125 million euros — NZ$231 million).

The remaining 29 million euros (NZ$54 million) will be paid and used for the payment of New Caledonia’s unemployment benefits and to allow the French Pacific territory’s power company, ENERCAL, which is on the brink of collapse without immediate assistance.

77 million euros withheld
“The last third of the initial 231 million euros package for New Caledonia (77 million euros [NZ$143 million]) will be released in 2025, once the pre-condition as stipulated in the initial agreement, regarding a reform of the TGC (General Consumption Tax, a local equivalent of a VAT) is adopted by (New Caledonia’s) Congress. Failing that, it will not,” Bayrou and Valls explained in the same letter.

They further wrote that those reforms were “indispensable” to ensure “visibility and stability” for New Caledonia’s “economic stakeholders and more generally to all of New Caledonians at a time when a dialogue is supposed to take place on its institutional future.”

The bloc resignation from Calédonie Ensemble entails that the whole government of New Caledonia is deemed to have resigned and acts in a caretaker mode until the inception of a new government.

New Caledonia’s Congress has been convened for a special sitting next week on 7 January 2025 to elect a new government, under the principle of proportional representation and a spirit of “collegiality”.

One particular point of contention was Mapou’s efforts to secure a loan of up to 1 billion euros from France, under a ‘PS2R’ (reconstruction, refoundation and salvage) plan to rebuild New Caledonia after the riots’ damage (estimated at some 2.2 billion euros) and the subsequent thousands of job losses.

This article is republished under a community partnership agreement with RNZ.

Article by AsiaPacificReport.nz

French President Emmanuel Macron and Vanuatu Prime Minister Ishmael Kalsakau have reached an agreement to settle the “land problem” in the southern region of Vanuatu before the end of this year.

Prime Minister Kalsakau made this declaration during his speech at the 7th Melanesian Arts and Cultural Festival (MACFEST) in Saralana Park yesterday afternoon, coinciding with President Macron’s visit to the festival.

“We have talked about a topic that is important to the people of Vanuatu in relation to the problem for us in the Southern Islands. The President has said that we will resolve the land problem between now and December,” he said.

Though not explicitly naming them, it is evident that the southern land problem mentioned refers to the islands of Matthew and Hunter, located in the southern portion of Vanuatu, over which significant demands have been made.

In addition to this issue, the boundary between New Caledonia and Vanuatu remains unresolved.

The hope was that during President Macron’s visit, Prime Minister Kalsakau — carried in a traditional basket by Aneityum bearers during the opening of MACFEST 2023 — would address the Matthew and Hunter issue with the French leader.

As part of Vanuatu’s traditional practice, Kalsakau and President Macron participated in a kava-drinking ceremony, expressing their wish for the fruitful resolution of the discussed matters.

Matthew and Hunter are two small and uninhabited volcanic islands in the South Pacific, located 300 kilometres east of New Caledonia and south-east of Vanuatu.

Both islands are claimed by Vanuatu as part of Tafea province, and considered by the people of Aneityum to be part of their custom ownership. However, since 2007 they had also been claimed by France as part of New Caledonia.

Elation over statement
The announcement of the two leaders’ commitment to resolving the southern land issue was met with elation among the people of Vanuatu, particularly in the Tafea province.

“France has come back to Vanuatu; President Macron has told me that it has been a long time, but he has come back today with huge support to help us more,” said Prime Minister Kalsakau, expressing gratitude.

The Vanuatu government head revealed that France had allocated a “substantial sum” of money to be signed-off soon, which would lead to significant development in Vanuatu.

This would include the reconstruction of French schools and hospitals, such as the Melsisi Hospital in Pentecost, which had been damaged by past cyclones.

In response to the requests made by PM Kalsakau and President Macron, the chiefs of the Tafea province conducted another customary ceremony to acknowledge and honour the visiting leaders.

President Macron at MACFEST 2023
More than 4000 people gathered yesterday at Saralana Park to witness the presence of President Macron and warmly welcome him to MACFEST 2023.

He delighted the crowd by delivering a speech in Bislama language, noting the significance of Vanuatu’s relationship with France and highlighting its special and historical nature.

“Let me tell you how pleased I am to be with you, not only as a foreign head of state but as a neighbour, coming directly from Noumea,” President Macron said.

He praised Prime Minister Kalsakau for fostering a strong bond between the two countries amid “various challenges and foreign interactions”, emphasising that their connection went beyond bilateral relations, rooted in their shared history.

President Macron further shared his satisfaction with the discussions he had with Kalsakau, expressing joy that his day could culminate with the celebration of MACFEST, symbolising the exchange between himself and Vanuatu’s PM.

“My delegation is thrilled to participate in the dances and demonstrations that bring together delegations from across the region, celebrating the strength and vitality of Melanesia and the spirit of exchange and sharing,” he said.

The President expressed his pride in being part of the region, particularly in New Caledonia, and witnessing the young teenagers of Melanesia coming together, dancing, and singing, driven by the belief that they will overcome the challenges of today and tomorrow.

Last night, President Macron departed for Papua New Guinea to continue his historic Pacific visit. He expressed his happiness in meeting members from PNG, Solomon Islands, Fiji, and other participating nations during MACFEST.

Doddy Morris is a Vanuatu Daily Post journalist. Republished with permission.

Article by AsiaPacificReport.nz

As Tonga’s recovery from the recent volcanic eruption and tsunami ramps up there is growing concern for the psychological and emotional wellbeing of survivors.

According to the government, 84 percent of the population has been impacted, with assessments of the widespread destruction still being conducted.

Two Tongans and a British national were killed during the disaster.

RNZ Pacific’s Tonga correspondent Kalafi Moala said that while the recovery was building up steam a lot of people were still visibly shaken.

“For example near here, where there were homes in the waterfront that were destroyed, when you go over to inspect the place you see people that are just staring,” he said.

“With looks in their faces not only of disappointment, but it is a look of hurt,” he added.

French aid
A French Navy ship is to take relief supplies to Tonga following the volcanic eruption and tsunami.

The Red Cross in Noumea has readied 21 pallets which the patrol boat La Glorieuse will deliver to Nuku’alofa.

The 10 tonnes of goods include tents for about 100 families, hygiene kits, solar-powered lights as well as masks.

A coordinator, Vincent Lepley, has told the local broadcaster that as Tonga was covid-19 free, no staff would be sent.

He said the delivery would be made within the French partnership with New Zealand and Australia as well as Tonga’s Red Cross.

Help from Fiji on the way

The first contingent of 51 Fiji soldiers are still awaiting approval from the Tongan government to assist New Zealand and Australia in their relief efforts in the kingdom.

The Fijians arrived in Brisbane last Saturday to join Australia’s Defence Force deployment to Tonga.

Fiji army commander Major-General Ro Jone Kalouniwai said the group consisted of engineers, medics and other specialists.

He said they would carry out rehabilitation and further assessments in Tonga.

The Fiji military said the soldiers had completed covid-19 tests and isolation requirements before heading to Australia.

“Looking at the damage and the things that happened in Tonga so far, we are going engineer heavy so we taking a lot of plant operators, we are looking at construction workers, civil engineers and also medical staff. The rest are all part of the manpower that can assist these specialists’ engineers in the work they are doing,” he said.

Volunteers needed
Twelve shipping containers bound for Tonga have been fully packed with food and water by Aotearoa Tonga Relief Committee volunteers.

Thirteen additional containers are being sent to Auckland’s Mount Smart Stadium today.

The drop off points for the public remain closed as the hundreds of drums already onsite need loading.

Committee co-chair Jenny Salesa said volunteers worked until 10pm last night.

But she said more people power was needed for the final push today, with packers expected to work until midnight.

All volunteers must be fully vaccinated.

This article is republished under a community partnership agreement with RNZ.

Article by AsiaPacificReport.nz