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Traditional copra farming
occupies a rather special position in the
atolls' economy. The atolls are responsible
for more than half of the total Polynesian production, and this proportion seems to be
increasing, although the overall level of
activity has decreased. For example, the
Tuamotu-Gambier atolls accounted for 63% of
the total output in 1998, and for 73% in 1999.
Since copra production
has been going on for a long time, unlike pearl farming
and tourism, it is still the sole source
of financial income on many of the atolls. The
Territorial authorities are convinced that this
activity helps to keep the local populations from
leaving the atolls. Since it therefore plays both
an economic and a social role, copra farming is
subsidised by the public authorities.
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Financial aid and tax
exemptions :
Copra production on the atolls is heavily subsidised
by the public authorities. As stated by ITSTAT
in their "Tableaux de l'Economie Polynésienne":
"in 1996, the financial aid awarded was
practically equivalent to the value of the
total output itself".
"L'Huilerie de Tahiti" , the
semi-public oil manufacturing company, 51% of
which is owned by the Territory, is obliged by
its statutes to purchase all the copra
delivered by the farmers. The company does not
export copra, but only crude and refined oil.
The
policy adopted by the Territory to prevent the
local populations from leaving the atolls led the
authorities to set up
a fund in 1967 to
maintain the price of copra, so as to
ensure that the farmers would have a stable income,
although this means that the buying prices are
much higher than the world market rates. Given the
predicted cost of maintaining the copra prices,
this fund's 2000 budget is expected to amount to
720 million Fr. CFP, based on the current estimate
that the copra output is likely to reach 9 200
tonnes: this figure is 19% higher than in 1999,
when it amounted to only
7464 tonnes.
Another less direct but equally efficient measure
which has been taken concerns not only copra but
also fishing, aquaculture, tourism and business,
for example. It consists of subsidising the
creation of firms via the F.A.D.I.P.
(Fonds d'aménagement et de développement
des îles de la Polynésie française), which
provides financial backing sometimes amounting to
as much as 80% of the total sum invested. The
whole of Polynesia is eligible for this form of
subsidy, apart from the islands of Tahiti et
Moorea.
The main goal is always to encourage the
development of economic, social and cultural
activities in the outlying archipelagos in order
to persuade the populations to stay where they
are.
As far as copra is concerned, the subsidy takes
the form of a bonus paid per kilo of harvested and
prepared copra.
At the copra processing level,
the "Laboratoire de Cosmétologie du
Pacifique Sud", a highly active company
dealing in the export of the Tahitian monoi which
now has its own original trade-mark, has benefited
from the tax relief measures taken with regard to
raw materials which have to be processed. Thanks
to these measures, the firm certainly intends to
reduce its production costs and
become more competitive on the export
market.
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