The high cost of living overseas, a very sensitive subject for the government

by time news

2023-06-08 18:00:39

The high cost of living will be one of the sensitive issues of the interministerial committee for overseas territories, brought together by the Prime Minister, Elisabeth Borne, on July 3, to take a series of measures on the economy of the territories. The exorbitant cost of food products focuses the concerns of voters, from the Antilles to Polynesia: even before inflation, food cost on average 28% to 38% more expensive than in France, according to an INSEE survey. of 2015 (the latest available), quoted by the Overseas Ministry.

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In the National Assembly, the commission of inquiry devoted to this subject is completing its hearings, often critical of the policy of the executive. Minister Delegate Jean-François Carenco repeated many times before her, Wednesday June 7, that inflation had been lower overseas than in France in 2022 thanks to the government’s efforts, but he hardly convinced . The opposition considers that temporary measures to support purchasing power (fuel, housing, transport) are not enough. And that structural changes are long overdue.

“It is time to engage in structural reflections”, agreed the Minister of the Economy, Bruno Le Maire. Heard on Thursday, June 8, he recalled that the overseas territories benefit from purchasing power support mechanisms for 7 billion euros per year: reduced VAT, regulated electricity prices, tax refunds for fuels.

“A pattern of economic captivity”

But, in terms of taxation, only « orientations » will be presented on July 3 on a central subject: the maintenance of dock dues, this tax inherited from the 17e century, intended to finance local authorities and protect the production of overseas territories. Admitting “malfunctions”the General Directorate for Overseas France revealed to the commission that this tax increases the price of flour in supermarkets by 27.5%, butter, oil or baby jars by 20%. “A consensus is emerging for an in-depth reform”, underlined the Mayor. The timeline remains unclear. “We are going to propose involving local elected officials, continuing technical work product by product and finding ways to compensate” lowering the tax. The La France insoumise group pointed out that, in Reunion, dock dues can finance 20,000 jobs.

The Minister also promised to ” the firmness “, in order to better guarantee competition in territories whose economy, dependent on imports, is dominated by a few large transport and distribution groups. “Oligopolies have persisted since post-colonizationaccuses the socialist deputy (related Nupes) of Martinique Johnny Hajjar, rapporteur of the commission of inquiry. We are experiencing a pattern of economic captivity by groups that have horizontal and vertical concentration, a situation that has been increasing since the Covid-19 crisis. »

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