Category: Legislation

Facing persistent price crises in the pearl sector, Teva Rohfritsch, French Polynesia’s Minister of Economic Revival, announces a comprehensive reform of this emblematic industry.

This initiative comes as a global oversupply of pearls continues to heavily weigh on production prices.

Following a series of consultations with industry professionals and mayors of pearl-producing municipalities, a territorial bill is expected to be presented to the Assembly before year-end. In this exclusive interview, Minister Rohfritsch details the challenges and proposed measures.

Why involve mayors in discussions to revive the industry?

“It is crucial to have a shared draft text, and mayors’ early participation is essential to restore the pearl’s value,” explains the minister. “Currently, pearl prices show no increase, and it’s time to address this issue firmly. As local representatives, mayors must act as territorial guardians to ensure regulations are enforced.”

Is increased production control planned?

“Indeed, stronger production control is necessary,” confirms Rohfritsch. “We must manage inventories held by traders and in the lagoons. All stakeholders will have to comply with production quotas.”

What economic levers are planned to revive the pearl industry?

The minister stresses that “controlling supply is imperative to raise pearl prices.” He adds that “defining quality standards and their presentation in international markets, in collaboration with professionals and mayors, is crucial. We aim to simplify export procedures by controlling production.”

What are the production figures for this year and next?

“The lack of visibility on production is a major concern. That’s why tighter control is needed,” states Rohfritsch. “Currently, we have rough estimates, but more precise data is essential. The pearl farming minister’s production regulation requires thorough knowledge of all its aspects.”

What would be the consequences of rising pearl prices?

“If pearl prices recover, we expect job creation and economic growth, particularly in the islands,” the minister asserts. “It’s vital to bring populations back to these islands, as many migrated to Tahiti or diversified their activities after the price collapse. The pearl is a French treasure, and we must restore its value.”

Is the focus on quality over quantity?

“Yes, current discussions address elements like nacre thickness and visual criteria,” specifies Rohfritsch. “The goal is to elevate the product, empower professionals, and establish a sustainable quality label. Geographic origin designations, like ‘Rikitea Pearl,’ are also being considered.”

A historic crackdown has shaken Polynesia’s pearl industry.

Last Friday around 5:30 PM, customs officers at Papeete’s ferry terminal intercepted a man arriving from Moorea by scooter. In his bag, they uncovered nine lots of loose pearls weighing 5.3 kg, along with four lots of keshi pearls totaling 460 grams. Unable to justify the origin of these precious goods, the man violated strict regulations governing the local pearl trade.

The search continued with the discovery of 820,000 FCFP in cash, neatly arranged in 10,000 FCFP bills. Suspecting a larger operation, customs officers proceeded to raid his home. There, they made an unprecedented find: 327 kg of Tahitian pearls stored in safes and on shelves—the largest seizure in the territory’s history.

The individual, who claimed to be a cultured pearl producer, was found to be in serious violation. The stock included rejects, directly contravening current regulations designed to protect the reputation and quality of Tahitian pearls. Initial estimates place the minimum value of this seized treasure at approximately 38 million francs.

The alleged smuggler faces a fine of 76 million FCFP and up to three years in prison. Customs authorities are actively investigating the precise origin of these pearls and any potential illicit networks involved. This dramatic case highlights the challenges of combating fraud in an industry that is both strategically vital and fragile for French Polynesia.

The Polynesian government has formally terminated the appointment of Hinano Teanotoga, Director of the Pearl House, through a council of ministers decree. The public industrial and commercial establishment (EPIC) will officially dissolve on November 30, 2013, marking a major restructuring of the pearl sector and the elimination of its primary promotional and legal protection body.

Employment Impact

• 12 employees affected:
  • 1 civil servant (to be reassigned)
  • 11 private-contract workers (facing layoffs)
• Nuihau Laurey, Vice President of the government, confirmed the decision, citing “streamlining of public action” and the Pearl House’s “lack of demonstrated usefulness.”

Rationale Behind the Closure

• Many of the Pearl House’s functions were already being handled by the Marine Resources Directorate
• Limited engagement from pearl farmers and internal reorganizations prompted the shutdown
• The government will transfer remaining responsibilities to the Marine Resources Directorate

A Short-Lived Institution

Established in 2009, the Pearl House was tasked with:
✔ Promoting and protecting pearls and pearl products
✔ Managing sorting, classification, and valuation of pearl production

This closure signals a shift in institutional strategy, highlighting the ongoing challenges facing Tahiti’s pearl industry. The move underscores the government’s push for greater efficiency amid financial constraints and evolving sector demands.

The Ministry of Marine Resources has issued an official statement clarifying key details about the dissolution of the Maison de la Perle.

Revised Timeline & Budget Details

🗓 New Closure Date: December 2013 (not August as previously reported) – allowing 5 months for employee transition
💰 2013 Budget Breakdown:

• Total: 735 million CFP francs
• Includes 500 million CFP exceptional subsidy (originally allocated for the now-defunct Tahiti Pearl Consortium SEM)

Staff Transition Plan

👥 Current Employees: 8

• 1 administrative detachee to return to original department
• 7 others undergoing labor code-compliant dismissal procedures
  🤝 Commitment: Human-centered approach to workforce restructuring

Political Context

The dissolution follows:
✔ Unanimous vote by autonomist parties (Tahoeraa/A Ti’a Porinetia)
✔ Criticism of SEM’s excessive costs amid budgetary constraints

“We honor our teams’ contributions to promoting Polynesian pearls while ensuring responsible transition management,” stated Ministry representatives. The extended timeline aims to balance fiscal responsibility with social obligations.

Established by ministerial decree in September 2009, the Maison de la Perle (Pearl House) will cease operations in August 2013 after just four years of activity. Marine Resources Minister Tearii Alpha spearheaded this decision, recently approved by the Council of Ministers.

Key Facts About the Closure:

• Original Mandate: Legal protection, promotion, grading, and valuation of Tahitian pearls
• Controversial Legacy: Industry professionals consistently questioned its effectiveness
• Budget Concerns:
  • Annual operating costs: 250-300 million CFP francs
  • 2013 peak expenditure: 735 million CFP francs

Government Rationale:
✔ Streamlining Public Services: Most functions will revert to the Marine Resources Directorate
✔ Fiscal Discipline: Part of broader austerity measures under the Growth Pact with France
✔ Future Reforms: Three other public entities under review for potential dissolution/partial privatization

“This restructuring prioritizes efficiency without compromising sector support,” stated Vice President Nuihau Laurey. The government aims to complete its evaluation of other at-risk agencies by year’s end, with targeted privatizations possible based on audit findings.

The Council of Ministers has decided to permanently close the Maison de la Perle (Pearl House) on September 30. Established in 2009 as a public commercial entity, its shutdown aligns with broader government efforts to reduce public spending and streamline state intervention.

Sector Restructuring Plan

🔹 Legal Protection & Labeling

• Now managed by the Marine Resources Directorate (DRM)
• Pearl classification becomes voluntary (no longer mandatory)

🔹 Promotion & Marketing

• Shifted entirely to private sector professionals
• Producers and traders will organize under a new private entity
• Future integration into a broader Polynesian products promotion agency

🔹 Commercialization Support

• Fully delegated to private industry players

Government Rationale

This restructuring aims to:
✔ Optimize public resources
✔ Enhance sector efficiency
✔ Empower private stakeholders

“Pearl farming remains vital to Polynesia’s economy, but its future lies in industry-led growth,” stated a government representative. The move signals a definitive shift from state-driven to private-sector management of this iconic industry.

This Thursday morning, representatives from both Tahoeraa Huiraatira and A Ti’a Porinetia parties united in the Polynesian Assembly to unanimously approve the dissolution of the Tahiti Pearl Consortium SEM – a controversial entity established under former President Temaru’s administration last February.

Key Developments:
✔ Historic Consensus: Rare cross-party agreement terminates the embattled organization
✔ Scathing Criticism: Autonomist factions denounced the initiative as a “spaghetti-flavored heist” (nod to the Italian jewelry consultant involved)
✔ Ministerial Confirmation: Pearl Minister Tearii Alpha cited the fatal lack of private investment

Next Steps for the Sector:

• Pearl Council Inauguration: First meeting scheduled July 1 to redefine industry strategy
• Continuity Measures: Laser traceability system (slated for year-end implementation) will proceed under Maison de la Perle

Political Fallout:
UPLD opposition members voiced strong dissent:

• Antony Géros accused the government of “repainting a blue project orange/yellow”
• Critics maintain dissolution jeopardizes long-term sector restructuring

“This clean slate allows genuine collaboration with professionals,” stated Minister Alpha, signaling a pragmatic shift from state-led to industry-driven solutions for Tahiti’s signature export.

The Marine Resources Commission of Polynesia’s Assembly approved (7 votes in favor, 2 against) a deliberation proposal to terminate the Tahiti Pearl Consortium (TPC) this Friday. The measure will soon proceed to a plenary vote.

About the TPC:

• Established under former President Temaru’s administration
• Designed as a public-private partnership (SEM) to market Tahitian pearls
• Developed with input from Italian jewelry expert Gaetano Caballieri
• Faced immediate industry opposition to direct state involvement in commercial activities
• Failed to secure the required 15% private investment

New Government Approach:
Marine Resources Minister Tearii Alpha announced a policy shift:

• Redefined government role: Focus on regulation and quality control while leaving commercialization to private sector
• Continued state involvement: Limited to trade negotiations (e.g., tariff discussions with China) for new market access
• Pearl Council creation: New ministerial-level advisory body with industry representatives (first meeting expected within 15 days)
• Long-term goal: Enhance production quality to boost prices for this key economic sector

Maison de la Perle Update:
No closure decision has been made. Current evaluations include:

• Budgetary assessment
• Mission redefinition
• Plans for deeper private sector collaboration in development strategies

“Our priority is supporting quality improvements that will strengthen the entire value chain,” Minister Alpha stated, signaling a more collaborative approach following the TPC’s controversial tenure.

French Polynesia currently allocates over 500 maritime concessions for pearl farms, primarily concentrated in the Tuamotu archipelago, with Ahe and Manihi serving as key production hubs. As of May 2012, Ahe Lagoon alone hosted 80 concessions, though questions remain about actual production levels despite strict 5-year permitting requirements.

New Regulatory Measures:
✔ Moratorium announced on temporary maritime permits for pearl farming
✔ Compliance review of existing concessions to verify active use
✔ Strategic assessment to align lagoon usage with sustainable quotas

Current Industry Snapshot (2011 Data):

• 9,720 hectares of lagoons utilized for pearl farming
• Nearing the 10,000-hectare territorial cap
• Tahitian pearls remain Polynesia’s top export commodity

Challenges Driving Reform:

• Declining pearl quality standards
• Oversaturation of producers
• Recent industry crisis requiring intervention

“This pause will help us recalibrate for long-term sustainability,” stated government spokesperson Marcel Tuihani. The moratorium precedes a comprehensive sector evaluation aimed at developing a coherent revitalization strategy for Polynesia’s iconic pearl industry.

The Tahiti Pearl Consortium (TPC), the public-private partnership (SEM) established on February 8 by French Polynesia’s Assembly, faces significant hurdles in its formation process.

Core Challenge:

• Securing private investors to cover 15% of capital (90 million FCFP)
• This funding is critical for the TPC to fulfill its role in restructuring the pearl sector

Current Status:

• Formation remains incomplete
• Government-appointed board members already designated (April 10, 2013 Council of Ministers decree):
  • Ministers Antony Geros, Temaurii Foster, Daniel Herlemme
  • Assembly representative Victor Maamaatuaiahutapu
• Marine Resources Ministry describes this as “standard procedure”

Next Steps:
The incoming French Polynesian government will need to:

1. Resolve private investment challenges
2. Determine the project’s future direction

“This transitional phase leaves the pearl industry’s restructuring in uncertainty,” observes a sector analyst. The TPC’s viability now hinges on either attracting reluctant private capital or awaiting political reassessment.