December 2009 / January 2010 - Association of Dutch Businessmen

Business news
Sources: Het Financieele Dagblad and Reuters
‘Heavy work’ focus of pension plan critique
Opposition MPs launched a strong attack on the cabinet’s
plans to increase the state pension age from 65 to 67 during
a parliamentary debate. In particular, ministers’ decision to
force employers to find other jobs for people who have done
‘heavy work’ for 30 years came under fire. The Liberals are
not opposed to the pension age increase in principle. However,
the coalition has made a ‘monster’ out of the plan, Liberal
leader Mark Rutte said. The move will deliver savings too
late, is unfair, is unworkable when it comes to people who
do heavy jobs and will have a drastic effect on employers,
Rutte said.
Employers
The cabinet has agreed to increase the state and corporate
pension age from 65 to 66 in 2020 and then to 67 in 2027. They
also plan to make it easier for people who do ‘heavy work’
to still retire at 65 or be given new, lighter duties by their
employers. The VVD suggests that everyone who has earned
at least 70% of the minimum wage for 40 years should still be
allowed to retire at 65. This would get around the problem of
how to cope with people who have done hard physical labour
and cannot work any longer, Rutte said. Alexander Pechtold,
leader of the Liberal democratic party D66, said it would
probably be impossible to define the concept of ‘heavy work’.
Femke Halsema, leader of the left-wing greens Groenlinks
also supports the increase in principle. But she sided with the
Liberals’ 40-year plan and dismissed the cabinet’s proposals
as a ‘political patchwork’.
Unworkable
The Socialists and anti-Islam PVV both support the current
65-year retirement age. The PVV came under attack from other
parties for saying an end to migration from Muslim countries
would produce enough cost savings to eliminate the need to
raise the state pension age. Labour’s parliamentary leader
Mariette Hamer said the party is prepared to drop the heavy
work clause if it proves to be unworkable. ‘ But we will come
up with something else,’ she was quoted as saying. ‘ Employers
must take responsibility for their workers’ careers.’ The debate
is set to continue.
ING moves back into profit
Financial services group ING confirmed it had booked net profit
of €499m and underlying profit of €778m in the third quarter
of this year, reversing a year of decline. But the company gave
no more details of its plans to split off its insurance activities.
ING announced its third quarter figures on October 26, at the
same time it broke news of the separation and a €7.5bn rights
issue. The split up is part of the agreement reached with the
European Commission on ING’s €10bn capital injection from
the Dutch state. CEO Jan Hommen said ING has completed
most of the first stage of its restructuring process but gave no
more information. ‘It was not an easy decision,’ quoted him as
saying. ‘But I strongly believe this is the right decision at the
right moment. The financial services sector will be transformed
by the crisis and the winners will be those who win back the
trust of their clients.’
Half Holland’s households run
financial risks
Some half of the Netherlands’ seven million households
are running the risk of getting into financial trouble because
they don’t have enough savings, says family spending institute
Nibud in a new report. Nibud says 25% of households never save
and a further 25% only put money away for a rainy day when they
have some left over. And four out of five households never look
at what their future spending needs are likely to be. In addition,
a quarter of households are overdrawn at the bank at least
once a month and one third have a non mortgage-related loan,
quoted Nibud as saying. Impulsive people who look for comfort
and an easy life, and career-oriented people with a fondness
for luxury are the most likely to get into financial difficult, the
report found.
31
Vol.19 • No. 10 • December 2009 / January 2010