October - November 2012 - Association of Dutch Businessmen

Bizz News
Greek eurozone withdrawal would cost the Netherlands €22bn: ING
The collapse of the eurozone would not only cause a major recession in the Netherlands, but would cost the country
hundreds of billions of euros in lost assets, according to economists. In total, the cost to the country would be €339bn, of
which banks’ finances would contract by €111m and the government’s by €121bn, the report said. If rather than a total
collapse, Greece left the eurozone instead, the impact on the Dutch economy would be around €22bn.
Manageable
Of this, the government would have to write-off €17.75bn and the private sector the rest. ‘That will hurt, but it does not
have to lead to insurmountable problems for the country,’ the report said. ‘So at first sight, a Greek withdrawal would
be manageable.’ However, ‘the biggest problem would be that a Greek pull-out could trigger a domino effect,’ the report
concluded. The best option for the eurozone crisis is to ensure the survival of the euro, but it is impossible to say how
much that would cost the country, the report said.
Hotel prices
remain high in the
Netherlands
The price of a hotel room in
the Netherlands remains high
despite the economic crisis, with
the average rate at €110 a night.
Only Finland’s hotels are slightly
higher, according to figures
released in the ING Hotel Price
Index. Hoteliers in other tourist
countries such as Italy, Spain and
France have slashed prices. Hotel
rates throughout the Netherlands
are influenced by the prices in
Amsterdam, where the dearth
of hotel rooms means the price
can remain high, said Jan van der
Doelen from ING. The average
price of a room in Amsterdam is
€123 a night.
Financial sector sees drop in consumer
confidence
Consumer confidence in the financial sector fell again in 2012, according to
research by Porter Novelli among 500 people over the age of 18. Of those
questioned, 66% were critical about banking bonuses and 87% thought
financial products are too complex, the research shows. ‘Of course the
economic crisis does not help, but it is clear the financial sector must
itself take steps to win back confidence,’ said Porter Novelli’s Frank Peters.
According to Peters, banks, insurers and pension funds must renounce the old
financial world culture and be seen to do so.
State-owned railway group NS uses Ireland to dodge Dutch taxes
The state-owned Dutch railway company NS has managed to cut its Dutch tax bill by at least €250m since 1999 by routing
the cost of new trains through Ireland. The tax dodge means the treasury has lost out on income generated by a company
it owns. The finance ministry, meanwhile, is said to be ‘unhappy’ about the arrangement, which it has been aware of from
the beginning. In effect, NS’s Irish subsidiary, NS Financial Services, has spent €1.7bn on new trains which it then rents to
the NS in the Netherlands. None of the trains has ever been used on the Irish railways.
Dividends
This allows the Dutch operation to avoid tax. In Ireland, railway companies have paid an average 9% tax on their profits in
recent years. In the Netherlands, NS would have to pay 25% profit tax on the train rental. Some of the ‘missing’ cash does
end up with the treasury in the form of dividends. In a statement, the NS said the tax route had been developed to allow
it to ‘better compete in the market’. Other large transport firms also use Ireland to reduce their tax liabilities and there
is nothing illegal about this, the NS said. There is effectively no competition on the Dutch railways and NS operates all
intercity and most local train services.
Morals
Political party leaders were quick to react to the news. CDA leader Sybrand Buma said it showed a ‘lack of morals’. Labour
leader Diederik Samsom said the NS had used a ‘bizarre construction which just is not right’, and an SP spokesman said
the situation is ‘unacceptable’. Caretaker tax minister Frans Weekers said: ‘Of course, we would rather have seen these
activities take place in the Netherlands.’ Economist Martin Holterman, who is an expert on the Dutch railways, said the NS
is busy ‘playing at being a company’. But the NS is not a company but a government service, he said.
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