Travel

New Caledonia Country Brief - May 2009

Introduction

Relations between Australia and New Caledonia have broadened and strengthened in recent years. Australia welcomed the creation of the New Caledonian Government in 1999 and supports New Caledonia's increased involvement in the Pacific region.

Political Overview

Government

The Head of State is the President of the French Republic, Nicolas Sarkozy (UMP). The High Commissioner for the French Republic in New Caledonia is Yves Dassonville. New Caledonia has a unique autonomous status within the Republic of France established by the laws implementing the Noumea Accord of 1998.

General elections were held in New Caledonia on 10 May 2009. The formation of New Caledonia’s government is expected to be finalised by mid-June 2009.

In the French Senate, New Caledonia is represented by Senator Simon Loueckhote (RPC). In the French National Assembly, it is represented by two Députés, Gaël Yanno (Rassemblement-UMP) and Pierre Frogier (Rassemblement-UMP).

Evolving status

The Noumea Accord (1998) and consequent Organic Law (May 1999) provided the constitutional framework under which New Caledonia is governed today and defined its institutions. The Accord and Organic Law also defined New Caledonia's relations with metropolitan France for the following 15-20 years and set out a timetable for New Caledonia to assume responsibility for most areas of government. Economic affairs, industrial relations and external trade were among the first powers New Caledonia assumed in January 2000. A second group of powers was transferred in 2004 and a third is to be transferred in 2009 (but there has been some discussion in New Caledonia as to this timetable and this is currently the subject of a number of joint working groups formed between New Caledonia and the French State). The Noumea Accord provides for the Congress of New Caledonia (by a majority of 3/5, ie 32 members out of the 54) to conduct during its five-year mandate starting in 2014 as many as three referenda on whether New Caledonia should assume the final sovereign powers (justice, public order, defence, currency and foreign affairs) and become fully independent.  If a date has not been proposed by Congress within the first four years of this mandate (ie by 2018), then the Noumea Accord commits France to conduct the referendum.

New institutions

The laws implementing the Noumea Accord gave New Caledonia an executive government of between five and eleven members, to be elected by and responsible to the New Caledonian Congress. A proportional voting procedure ensures that the main parties together make up the "collegial" government. The New Caledonian Congress is made up of 54 members out of the three Provincial Assemblies (Southern, Northern and Islands Provinces, which have 32, 15 and 7 members respectively). The five-yearly provincial elections which choose these three assemblies are therefore important also for determining the composition of the Congress and the proportional representation of parties in the executive government.

Following the Noumea Accord, provincial elections were held in 1999, leading to three successive governments dominated by the loyalist party RPCR under the presidencies of first Jean Leques (also Mayor of Noumea) and then Pierre Frogier (also a member of the French National Assembly).

The next Provincial Elections were conducted on 9 May 2004. As before, no party had an outright majority, but this time the RPCR, now known as Rassemblement-UMP, was not in a position to form a winning coalition. The Future Together (Avenir Ensemble - AE - comprising dissidents from the RPCR, notably Harold Martin and Philippe Gomes, together with businessman Didier Leroux and the members of his Alliance Party) had seats in the Congress equal to the Rassemblement-UMP. The new loyalist party formed a new government with the support of Front National and political ally LKS and Harold Martin was elected to the Presidency of the Government of New Caledonia by the Congress..

The Noumea Accord also provides for an Economic and Social Council to advise the government and a Custom Senate comprising representatives from each of New Caledonia's eight customary areas. The government must consult the Custom Senate on subjects relating to Kanak identity. Kanaks make up around 45 per cent of the total New Caledonian population of some 240,000.

Recent political developments

General elections were held in New Caledonia on 10 May 2009. The main loyalist parties gained 31 seats in the Congress while pro-independence parties won 23 seats (up from 18).  The formation of a government of New Caledonia is expected to be complete by mid-June 2009. In the French presidential election in April-May 2007, New Caledonian voters strongly supported the eventual winner, Nicolas Sarkozy (UMP). Prior to the general election held in June, all the main loyalist parties in New Caledonia suffered splits as a result of rivalries over leadership or candidacy. The Rassemblement-UMP was the winner in both constituencies, with Gaël Yanno becoming the new député in the seat previously held by Jacques Lafleur, and Pierre Frogier holding his seat.

Foreign Relations

As provided for in the Noumea Accord, New Caledonia and France now share responsibility for New Caledonia's regional relations, allowing New Caledonia to apply to join some international organisations in its own right. Accordingly, New Caledonia became an Observer to the Pacific Islands Forum (PIF) in 1999 and in 2006 was welcomed into the new PIF category of Associate Member. New Caledonia is a long-standing member of the Secretariat of the Pacific Community (SPC), which has its headquarters in Noumea. The Noumea Accord also allows New Caledonia to conclude some international agreements.

Economic Overview

New Caledonia has a long-established nickel industry (and around one-quarter of the world's known nickel deposits). Despite the substantial fall in world nickel prices in 2008-09 several large mining infrastructure projects are planned to proceed. Financial transfers from France are also an important source of income - some AUD 1.51 billion per annum. Most of this covers expenditure on education and other public service salaries, social security contributions and pensions. The remainder of French funding goes to special development projects (particularly in the Northern and Islands Provinces - most of New Caledonia's wealth being concentrated in the Southern Province which includes Noumea). French funding assists the New Caledonian Government and the Assemblies of the three provinces to fund infrastructure, housing, health, training, and environment, sports and cultural programs. French funding also assists the municipalities in New Caledonia to fulfil their responsibilities and supports ‘microprojects’ to encourage economic development at the level of individuals, usually in the Kanak communities. French assistance to New Caledonia and a pegged exchange rate (formerly to the French franc, now to the Euro) protect New Caledonia's economy from major fluctuations. New Caledonians enjoy a high GDP per capita. Estimated GDP for 2007, the most recent year for which figures are available, was US$7.4 billion and GDP per capita estimated for 2007 at US$30,638. There is a significant disparity in wealth distribution, made more painful for some by the high cost of living owing to heavy market protection (favouring local and European goods).

See also

Bilateral Relationship

Australia provides approximately AUD1 million annually to fund tertiary degrees in Australia for students from New Caledonia, French Polynesia and Wallis and Futuna. Their scholarships are focused on employment needs in tourism, hospitality, mining, aquaculture, environmental studies, international relations and trade, information technology and professional specialised English language training.

Australia has interests in working with the New Caledonian and French authorities in New Caledonia in a range of areas including: promoting greater trade and investment; cooperating in providing regional natural disaster relief; defence co-operation including visits and joint exercises; combating security threats and crime; and promoting links through sport, tourism and culture. Tourists in both directions have benefitted from visa arrangements Australia and France negotiated in 1998 and the new working holiday-maker arrangements between France and Australia.

In early 2000, the then President of the Government of New Caledonia Jean Leques visited Australia for the Forum Economic Ministers' Meeting, and again for the Olympics in September 2000, and his successor as President, Pierre Frogier, visited Australia in September 2003 as leader of a delegation from the French National Assembly's France-Australia Friendship Group. In 2006, a visit to Australia in September was conducted by a Congress Delegation headed by First Vice-President of Congress Isabelle Ohlen. In November 2008, Parliamentary Secretary for Pacific Island Affairs, Duncan Kerr, visited New Caledonia for Armistice Day memorial ceremonies and bilateral talks. In March 2009, French High Commissioner Yves Dassonville visited Australia for bilateral talks in Canberra.

Bilateral Economic and Trade Relationship

New Caledonia is Australia's fourth largest buyer of exports in the Pacific. In 2007-08, Australian merchandise exports to New Caledonia totalled AU$358.744 million (mostly coal, civil engineering equipment and wheat). But New Caledonian import duties on non-EU products and some seasonal quotas restrict Australia's market share to around 11 per cent (behind France and Singapore; from Singapore it now imports petroleum). Australia imported goods worth around AUD85.3 million from New Caledonia in 2007-08, mostly iron ore. Australia is New Caledonia's sixth largest export destination.

In recognition of growing business ties between Australia and New Caledonia, the two governments signed a Trade and Economic Relations Arrangement on 8 March 2002. The Arrangement provides a framework for expanding bilateral trade and investment flows. The first Officials' Talks pursuant to the Arrangement were held in Canberra in September 2002.

An Australia-New Caledonia Business Council (CAANC) was founded in 2003. Its members include Australian and New Caledonian business people and it has links to the Australia-Pacific Islands Business Council (APIBC). Its patrons are the Australian Consul-General in Noumea and the President of New Caledonia's Chamber of Commerce and Industry (CCI).

In 2005, the New Caledonian Government hosted the second round of Officials' Trade Talks pursuant to the Australia - New Caledonia Trade and Economic Relations Arrangement. The Talks yielded a range of advances on bilateral trade and economic issues. Outcomes included New Caledonia's willingness to further explore options for reduction of duties; agreement by New Caledonia to expand its recognition of Australian education qualifications; and agreement to pursue cooperation (including information/personnel exchange) in taxation, quarantine, mining services and professional training.

Since the 2005 Trade Talks, the two Governments have continued pursuing the agreed trade agenda with productive results, including the recognition of over 100 Australian qualifications in New Caledonia, the construction of an underwater fibre optic communications cable between New Caledonia and Sydney and a significant increase in quarantine cooperation.

Visitor Information

Australians travelling to New Caledonia are advised to consult the Smartraveller travel advice.