INTERVIEW - Dutch Employers Fear Cost of New Govt's Green Drive
Date: 22-Feb-07
Country: NETHERLANDS
Author: Foo Yun Chee
"We are afraid of new green taxes, for example on cars, fuel and all kinds of environment taxes which are not yet specified in the programme, that will be costly for companies," Bernard Wientjes, president of the Confederation of Netherlands Industry and Employers told Reuters in an interview.
The new Dutch government, made up of a coalition of Christian Democrats, Labour and Christian Union parties, will be sworn into power on Thursday following November elections and weeks of negotiations.
The new accord presented early this month underlines the incoming government's green credentials with more aggressive environmental policies and climate change targets than the previous cabinet.
Proposals include levying a tax on air tickets, an environment distinction for cleaner and more economical cars and setting up a taskforce to look into higher taxes for environmentally damaging energy and fuels.
But details have been sketchy, with the coalition saying it would only announce specifics after extensive talks with unions, employer groups and the wider public.
Such taxes will unfairly burden Dutch companies compared with their European counterparts by creating an unlevel playing field, said Wientjes.
"When there is a tax, it has to be equal in all countries in Europe, a level playing field. We suggest, don't do it alone. Do it on the European level," he said.
NO NUCLEAR POWER
Although the incoming government is pushing for greener measures, it has also ruled out building new nuclear power plants during its four-year mandate. The Netherlands' sole nuclear power plant is at Borssele, which will be kept open until at least 2033.
This decision will leave companies dependent on expensive crude oil, said Wientjes.
"We are disappointed. We need, according to employers, nuclear energy, because the energy we get from oil and gas is much too much expensive," said Wientjes.
He said it would also defeat efforts to tackle problems related to climate change. The new government wants to cut the emission of gases linked to global warming, by 30 pecent in 2020 from their 1990 level, beyond the EU's 20-percent goal.
Nuclear energy is back in vogue in some European countries as it produces few greenhouse gas emissions. Europe is struggling to meet emission cuts targets under the Kyoto protocol and reduce dependency on imported crude oil.
But analysts said the proposals will give the Netherlands a head start in clean technology and a boost for the future.
"For growth in the long run, it helps to have state-of-the-art technologies, more environment friendly than other countries," said Charles Kalshoven, Postbank economist.
"I think it is good to start with these small steps and think about bigger steps later on."
