Quotes from Dutch companies on the worsening business climate

Just Eat Takeaway.com NV

12/03/2024 12:40

AMSTERDAM, March 12 (Reuters) - In response to questions
from Reuters, more than a dozen Dutch companies said they were
concerned about the country's business climate, while others
have spoken publicly. 
    Here is a selection of comments:
            
    JUST EAT TAKEAWAY
    Meals company Just Eat Takeaway  TKWY.AS  CEO Jitse Groen
said that as a small country, the Netherlands does not have the
luxury of rolling out less favourable business policies.
    "There is no point for companies to choose the Netherlands
without highly educated foreign personnel and without good
flight connections, and with tax disadvantages and restrictive
regulations," he said in a statement on X.
    
    KLM
    KLM, the Dutch arm of Air France-KLM  AIRF.PA , told Reuters
that while it cannot realistically move operations, "of course"
it is concerned.
    "Tax and immigration policy have a direct impact on the
business model of KLM and our partners. So do infrastructure
issues, like the proposed reduction of flight movements at
Schiphol. Under the bonnet, the Dutch business climate is
deteriorating in many ways, while other countries have made sure
they became more attractive for corporate investments."
    
    ING
    ING  INGA.AS , the country's largest bank, said that while
the Netherlands will remain its home market, "making location
choices is a constant", and it values consistent policy when
making investment decisions.
    "Some of the proposals put forward last year clearly do not
improve the Dutch investment and business climate in that sense
and would also affect Dutch banks' competitiveness towards
foreign banks and our ability to support the economy."
    
    AKZO NOBEL
    Paint maker AkzoNobel  AKZO.AS  told Reuters: 
    "It is important that the government creates stability and
predictability for companies. In this case tax policy, share
buy-back policies and the tax deductibility of interest are
important."
      
    DSM
    Nutritional chemicals maker DSM  DSFIR.AS  became domiciled
in Switzerland after a 2022 merger with Firmenich but maintains
a second headquarters in Maastricht. 
    "You won’t see immediate effects (of a deteriorating
investment climate) but the delayed impact, after three to five
years, can be extremely damaging and irreversible for a specific
industry," the company told Reuters. 

    SHELL AND UNILEVER
    Shell  SHEL.L  and Unilever  ULVR.L  moved their
headquarters to London after the Dutch government in 2018
reneged on a promise to scrap a dividend withholding tax. 
    Shell, which maintains large operations in the Netherlands,
told Reuters it remains concerned about the aftermath of a 2022
court ruling that ordered the company to cut carbon emissions by
45% by 2030 - which it says circumvented the lawmaking process.
    While Shell has appealed, environmental groups are now suing
ING to force it to stop financing fossil fuel projects.
    Environmental groups' approach is "not the right one", Shell
said. "It would severely impact the Dutch investment climate,
economy, and jobs".
    Unilever, which retains R&D in Rotterdam said "it is vital
to us that a country pays attention to and supports innovation".
       
    AEGON
    Insurer Aegon 50OR.L  moved its legal base to Bermuda in
2023 after selling its Dutch operations to ASR  ASRNL.AS .
Though the company does most of its business in the United
States, it said it has no intention for now of closing its Dutch
headquarters.
    
     ASR
    Insurer ASR told Reuters it was worried about unpredictable
governance, citing an "increase in bank tax, the pivot on the
dividend tax and the taxation of share buybacks". It said that
since the new parliament took office, there has been "a lack of
clear decisions or a course that companies can respond to in a
timely manner".
    
    NN Group
    "There is a high regulatory burden for Dutch companies, both
from the EU and their own country. Also, the government is not
always consistent in its policy and places a lot of emphasis on
taxing instead of investing," the financial services group told
Reuters.
    Like Aegon, NN  NN.AS  ruled out a headquarter change.

    AHOLD
    Ahold  AD.AS  runs the Netherlands' largest supermarket
chain and its largest webshop Bol.com.
    "Maintaining our current level of prosperity in the
Netherlands ... (is) not guaranteed and requires predictable,
clear, consistent and stimulating fiscal policies," it told
Reuters.
    "As an employer of more than 100,000 people in the
Netherlands, retaining and attracting talent is of great
importance. Particularly in today's labour market, it's crucial
for the Netherlands to remain an appealing hub to attract
international talent."
    
    BOOKING.COM, TOMTOM, PICNIC
    In an open letter in February, CEOs of nine Dutch tech firms
said they were concerned about maintaining the country's
competitive position and access to labour. 
    "We call on a new government to treasure this strong
position, offer stability with clear, predictable lawmaking and
to invest in an open, knowledge-intensive economy," they wrote.
   “It is crucial that our country remains attractive to
knowledge workers who make a positive contribution to our
innovative power. Moreover, diversity within teams helps to
better understand and serve the world.”

 (Reporting by Charlotte van Campenhout and Toby Sterling;
Editing by Kirsten Donovan)
 ((toby.sterling@thomsonreuters.com;))