Old paper: Wage demand cut after intervention by Prince (7)
I believe the answer is:
papyrus
'old paper' is the definition.
'papyrus' can be an answer for 'paper' (papyrus is a kind of paper). I am not certain of the 'old' bit.
I cannot understand how the remainder of the clue works.
Can you help me to learn more?
(Other definitions for papyrus that I've seen before include "Egyptian paper reed" , "Old African paper" , "old document" , "Kind of paper used in old Egyptian manuscripts" , "Paper made from reed by ancient Egyptians" .)