“800 companies” are “totally destroyed, burned or unable to resume”, warns the Chamber of Commerce and Industry

“25% of the archipelago’s GDP” was destroyed two months after the start of the riots, said David Guyenne, president of the New Caledonia Chamber of Commerce and Industry, on franceinfo on Wednesday.

“800 companies” are “totally destroyed, burned or unable to resume”, said David Guyenne, president of the Chamber of Commerce and Industry of New Caledonia, on franceinfo on Wednesday July 31, two months after the start of the riots in the archipelago. After the riots, 20,000 people found themselves unemployed, directly or indirectly, “which represents 30% of private salaried employment”. “25% of New Caledonia’s GDP” was destroyed in two months“it’s absolutely catastrophic”, he was alarmed.

The State has granted exceptional aid which is part of a global package amounting to 300 million euros of aid to communities and businesses excluding those linked to Nickel. “It won’t be enough,” assured David Guyenne, but, according to him, the State must first support “the social protection system, the unemployment system of New Caledonia, to avoid this collapse of the Caledonian social fabric”. Then, help businesses with “subsidies”.

franceinfo: What is the situation today in New Caledonia?

David Guyenne: It’s a rather strange situation because we don’t talk about New Caledonia much anymore, because in fact, there are no more businesses burned, there are no more exactions and very dangerous roadblocks. However, the apparent return to calm is a false calm. There are still places in New Caledonia where we can’t go because the rioters’ roadblocks are too dangerous. And then above all, we are in a situation where every day, we have a risk of collapse of the Caledonian economic and social system. It’s a very difficult time, with a lot of uncertainty and very little certainty.

Are you able to live a fairly normal life?

We must not get used to this state of affairs in New Caledonia today. Yes, Caledonians are very resilient. Caledonians understand that returning to order, for example, takes time in very complicated situations. However, in a territory of the Republic, we cannot accept this. We understand that New Caledonia is a very complicated, very difficult territory and that we must tread carefully when we move forward. But we will have to find solutions, otherwise the entire economy and social fabric will collapse.

How many businesses were destroyed in the riots?

Today, the situation has stabilized. We will present the minister with a very heavy report. 800 businesses completely destroyed, burned or unable to resume, 20,000 direct or indirect unemployed, which represents 30% of private salaried employment and 25% of New Caledonia’s GDP destroyed in two months. It is absolutely catastrophic. Businesses have had no choice but to resort to partial unemployment or contract terminations because they are living their survival.

“What is worrying is that the entire economic and social system is seized up.”

David Guyenne, President of the CCI of New Caledonia

on franceinfo

We are unable to put oil in the various cogs because there is no return to order. Companies cannot get back into a state of sustainable operation. Suppliers, customers, nothing is functioning normally. The players must put liquidity into the cogs of the Caledonian economy, for example insurance companies, banks or the State through emergency aid. But today, the money is not arriving in sufficient force and quickly enough.

The nickel sector that made New Caledonia prosper is doing very badly, because it is facing competition from Asia. Are nickel companies heading for bankruptcy?

Nickel companies can, in the short term, be real players in the recovery because the amounts in the mining sector are very quickly very significant for the export of ore. With the problems of access to mines, to the resource to even be able to export it, we know that there are perhaps one or two factories that will collapse soon. In any case, one is announced in the coming weeks. Yes, that will darken the picture a little more and above all weaken the entire New Caledonian economic system.

The amount of damage caused by the riots is estimated at 2 billion euros by the New Caledonian government. The government is planning a new emergency aid of 150 million. Where should this money go?

That will not be enough. We are in survival mode, the State must intervene in two ways. First, to support the social protection system, the unemployment system of New Caledonia, to avoid precisely this collapse of the Caledonian social fabric. The State must also intervene directly with Caledonian businesses through subsidies so that businesses survive. What we are asking for is time to find a political solution, an institutional solution and a new Caledonian economic model in the next six months, the State must help us with subsidies to prevent all the tools that today allow for a fragile living together and a fragile Caledonian “doing together” from continuing to exist.