October - November 2012 - Association of Dutch Businessmen

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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. 20
Bizz News Prostitutes’ lobby group bankrupt A lobby group dedicated to turning prostitution into an acceptable profession while working to combat violence and exploitation has gone bankrupt. De Rode Draad (red thread) was declared bankrupt and its office has been closed. The group’s financial problems have been caused by the withdrawal of subsidies because of spending cuts. Donations have also gone done because of the economic crisis. Police consultations Rode Draad acted as an official sounding board for prostitutes in meetings with police and officials. It had five permanent workers. Prostitution is legal in the Netherlands and brothels and escort agencies are supposed to have council licenses. Prostitutes are also expected to pay tax. In an effort to stop young women becoming involved, moves are currently under way to raise the official age limit from 18 to 21. But despite official regulation, according to some police experts between 50% and 90% of the prostitutes working in Amsterdam’s sex industry have been forced into it, even in officially-licensed brothels and clubs. Reality Last November, Amsterdam council executive Lodewijk Asscher said the Netherlands often deals with prostitution by turning a blind eye to the ‘raw reality’. Many opinion writers and officials ‘deny’ that there are problems and believe the sex industry is well ordered, he said. But there is a ‘collective silence’ about the truth, he said, referring to forced prostitution and human trafficking. For years Asscher has been involved in efforts to clean up Amsterdam’s notorious red light district by reducing the number of buildings licensed for prostitution and trying to combat crime. Most doctors oppose market forces in healthcare Three quarters of Dutch doctors think efforts to introduce market forces into the Dutch healthcare system should be reversed, according to research by health sector magazine Medisch Contact. In total, 86% of family doctors and 70% of specialists want an end to competition between healthcare providers. Further competition is considered a good idea by 8% and 16% would like to keep things as they are now. Doctors’ main objection to market forces is the increasing power given to health insurance companies, the survey shows. Insurance companies now have to make agreements with providers based on price as part of government efforts to cut over spending on healthcare. ‘Doctors are seen as each other’s competitor not colleague and this is bad for cooperation,’ magazine editor Hans van Santen said. Business service sector grows turnover but remains somber The business service sector has seen slight growth but expectations remain somber, the latest figures from the national statistics office CBS figures show. Turnover in the sector grew 1.3% in the second quarter compared with the year-earlier period, the CBS said. Over the first half growth was 0.7%. Travel agents and inspection agencies booked the best growth, with 9.4% and 5.9% respectively. Architects had the worst quarter with a drop of 10% in turnover. The business service sector is experiencing a worsening economic climate and expects average turnover and prices across the sector to remain the same as 2011, but with fewer workers. Former ABN Amro unit under investigation in Libor scandal The Dutch central bank DNB is investigating the role of part of the ABN Amro bank in the Libor scandal. The part of ABN Amro responsible for setting Libor rates is now owned by Scottish bank RBS. Until 2008, ABN Amro was part of the panel that set the daily Libor rate - which forms the basis for interest on credit and loans. That same year, the bank was split up and the three parts taken over by RBS, Santander and Fortis. When Fortis went bankrupt, its part returned to the Dutch state under the name ABN Amro. Both RBS and DNB confirmed the investigation. An investigation into the part played in the Libor scandal by Rabobank is already under way. GelissenComputers IT consultancy & service Maintenance Installation Consultancy Configuration Laptop, desktop, data recovery, PC and laptop reinstallation. Complete server (24/7 service), corporate and home network. Liaison between providers, external IT department and clients. Applications, e-mail and cloud services plus Macintosh, Windows, Linux and advanced wireless solutions. Call 24/7 for an appointment: +65 8189 5747 • www.gelissencomputers.com • robbert@gelissencomputers.com Advertising_Gelissen_MOTHER_FILE_PLUS_BLEED.indd 1 23/3/12 10:34 AM 21
Page 1: Association of Dutch Businesspeople
Page 4 and 5: Contents Vol. 22 / No. 6 / Oct-Nov
Page 6 and 7: Events Rinske Bloemendal Linda Pete
Page 8 and 9: Events An Evening with Steve “Pet
Page 10 and 11: Business Sustainability & Business:
Page 12 and 13: Business A LEAN Journey to Excellen
Page 14 and 15: Business Project-based Working in S
Page 16 and 17: Business Interview with Marcel van
Page 18 and 19: Business Can you learn Charisma? Tr
Page 20 and 21: Extra NCA supporting local charitie
Page 24 and 25: know your tax THE FLEXIBILISATION O
Page 26 and 27: Not to miss Rugby Sevens Tournament
Page 28 and 29: ADB News Name : Lennart Luten Why d
Page 30 and 31: ADB News Doing Business in Indonesi
Page 32: Making the purest water drinkable s

October - November 2012 - Association of Dutch Businessmen

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