As expected, the third support package for companies suffering from the corona crisis is widely supported in the House of Representatives. The parties do wonder whether the measures are sufficient if a second wave results in the economy partially coming to a standstill, while state aid is actually declining.
As expected, the third support package for companies suffering from the corona crisis is widely supported in the House of Representatives. The parties do wonder whether the measures are sufficient if a second wave results in the economy partially coming to a standstill, while state aid is actually declining.
“We are on the eve of a second blow to the labor market. We should not talk about phasing out aid measures, but about building them up,” said SP MP Bart van Kent on Thursday.
“If we have to go back to a lockdown, God forbid, we will adjust the package,” said Steven van Weyenberg (D66).
“How quickly can we scale up and how quickly can percentages be adjusted if necessary?” Wondered CDA MP Hilde Palland.
The number of positive corona tests increased by 2,552 in the past 24 hours. 25 new hospitalizations and 16 corona-related deaths have also been recorded.
Help is getting less and less
The third support package will run from October 1 to July 1 next year. Gradually, the support is slightly reduced.
For example, the wage subsidy (NOW), the largest part of the package, reimburses up to 90 percent of the salary. Entrepreneurs are eligible for this if they suffer at least 20 percent loss of turnover.
From January, the salary allowance will be reduced in steps to a maximum of 60 percent, while the threshold for making use of it will be increased to a minimum of 30 percent loss of turnover.
‘The government cannot solve everything’
Minister Eric Wiebes (Economic Affairs), who designed the aid packages together with fellow ministers Wouter Koolmees (Social Affairs) and Wopke Hoekstra (Finance), thinks the phasing out can be justified.
In the long run, entrepreneurs have to adapt to the changing reality, say the ministers. “The government cannot solve everything,” said Wiebes.
According to Hoekstra, the damage of a second lockdown would be “really disastrous for the economy and for public finances”. If in the end things really get worse with the virus, then Hoekstra can talk about extra measures.
Longer term for tax deferral repayment
The SGP threatened to vote against the entire package if nothing is done about the term to repay deferred tax. Now entrepreneurs have to pay back within two years from January. The SGP wants to extend that period to four years.
Hoekstra called it a “logical and sensible suggestion” to give companies a longer delay, although he thinks four years is a bit dismal.
The Cabinet listened to the wishes of PvdA and GroenLinks
During the debate it became clear that the wishes of some opposition parties had been listened to. PvdA leader Lodewijk Asscher demanded a job guarantee for employees who are fired because of the corona crisis, so that they keep their income in the search for other work.
The cabinet had already announced a package of measures worth 1.4 billion euros, mainly intended to guide people to other work.
Employers who make use of government support must make a mandatory effort to do so, Asscher believes.
Koolmees wants to include this in the conditions for wage subsidy, but did not want to go so far as to fine employers if they do not comply with the agreement. The minister fears that companies will only get into further problems or become reluctant to apply for support.
GroenLinks was promised to look at the position of vulnerable young people under the age of 27. Due to their age, they have to deal with stricter social assistance rules, such as a waiting period of four weeks.
That waiting period should be abolished, just like the ban on extra earnings during benefits, the opposition party believes. A majority of the House agrees.