NEW CALEDONIA’S government has approved a draft deliberation to create a fund that would give Congress authority over social security and disability budget allocations — a power the institution currently lacks.
The proposed fund (CAFAT – Compensation Fund for Family Allowances, Occupational Accidents and Pensions for Workers in New Caledonia and Dependencies), would redirect taxes and subsidies that now flow directly to public establishments into a single pool managed by Congress. Currently, lawmakers validate sums for different organizations without being able to adjust their distribution.
“This offers additional room for maneuver to the institution, which has been limited in its action,” the government said in a statement.
The fund will receive revenue from the Caledonian solidarity contribution, the general consumption tax, taxes on alcohol and tobacco, and the additional social contribution. Subsidies from New Caledonia, the state, and provincial governments would also feed into it.
Under the new system, Congress would determine annual resource allocations for each of New Caledonia’s five social security branches plus the disability system. A management committee — including the government president, budget and health officials, and the presidents of Congress and the CAFAT board — would present prior-year financial results to guide distribution.
The government had already signaled this shift in April, adopting a preliminary bill that would let elected officials review funding based on actual needs. The fund represents the achievement of that goal.
The proposal now moves to Congress for consideration.
Source: Les Nouvelles Calédoniennes
