Tonga's new Prime Minister, Dr Feleti Sevele, says about a quarter of Tonga's civil service jobs will be axed.
On his first official visit to New Zealand, Dr Sevele told members of Auckland's Tongan community that the country was under tough economic pressure, TVNZ reported.
He said trimming a thousand civil service jobs was a just the start of Government spending cuts.
He wanted three years to improve the economy, and political change over time would see less power residing with the royal family.
A seven-week strike last year by thousands of public servants over pay issues saw cars and schools in Tonga torched, and arsonists were accused of burning down a house belonging to the royal family.
The industrial dispute even spilled over to New Zealand, with brawls and a four-day protest camp in the street outside the royal home in Epsom.
The strikers secured pay rises of up to 80 per cent and a commitment from the Government to "give due consideration" to introducing democratic reforms.
- NZPA
Tonga to axe 1000 jobs
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