THE HAGUE--The Dutch Council of Ministers on Friday approved the second support package for the Caribbean Netherlands to help residents and entrepreneurs on the islands cope with the coronavirus crisis for the next four months, until mid-October.
As part of this package, which comprises comparable measures to those taken in the European Netherlands, the public entities Bonaire, St. Eustatius and Saba will receive in total 1.3 million euros to enable the local governments to take island-specific measures to meet the needs of citizens and businesses. Support Package 2.0 is an extension of the first package that was approved in March.
The coronavirus crisis has a huge impact on society in the Caribbean Netherlands, like any other part of the world. Although the islands have largely escaped the coronavirus in terms of health up to now, Bonaire, St. Eustatius and Saba have been seriously affected in an economic sense. The tourist sector, which drives a large part of the economy, has come to a halt.
The Dutch government has added a number of new measures to the existing ones, which already include a temporary subsidy regulation for wage cost and loss of income. One of the new measures is the temporary income support scheme. Part of the new package is an expansion of the temporary reimbursement of fixed cost up to a maximum of 50,000 euros for businesses.
Also, the bridging loan for small businesses has been added. The fiscal measures will be continued. Deferment of paying taxes is possible for entrepreneurs who are in liquidity problems due to the corona crisis.
This second emergency package was sent to the Second Chamber of the Dutch Parliament on Friday on behalf of State Secretary for Home Affairs and Kingdom Relations Raymond Knops, Minister of Economic Affairs and Climate Policy Eric Wiebes, State Secretary of Economic Affairs and Climate Mona Keijzer, Minister of Finance Wopke Hoekstra, State Secretary of Finance Hans Vijlbrief, Minister of Infrastructure and Water Management Cora van Nieuwenhuizen and State Secretary of Social Affairs and Labour Tamara van Ark.
“With this extension we are protecting jobs and incomes in the coming period by supporting affected companies and sole traders. Tough times are ahead for the islands and big demands will be required of the local community. At the same time, the Dutch government is convinced that once again during this crisis the resilience of the islands will ensure that together, government and society on both sides of the ocean will pull through,” Knops said in a press release.
In a letter to the Second Chamber, he said that a longer period of extension than the current four months, as requested by the Central Dialogue Bonaire and the Central Dialogue St. Eustatius, was not a pressing issue for now.
“Naturally, the government continuously monitors the specific situation in the Caribbean Netherlands. The point of departure is that the Caribbean Netherlands as much as possible is included in the decision-taking in the Netherlands. Additional island-specific measures are conceivable, but will have to be considered at that time within the social-economic context,” he stated.
In his letter, Knops also addressed the economic prospects for the three islands. “In the Caribbean Netherlands too, the crisis will undoubtedly result in bankruptcies, loss of employment and the associated reduction of purchasing power.”
According to Knops, it is important that entrepreneurs on the islands, in particular in the tourism sector, adapt to the new economic situation. “The government will do its best to use the resilience of the economy, and to specifically stimulate and invest, taking into account the social-economic circumstances.”
From this perspective it is crucial for the Caribbean Netherlands to get tourism, the most important economic engine, going. A decision still has to be taken to open the border for (certain) tourists and under what circumstances that can take place. The advice of the Outbreak Management Team Caribbean can be an important point of departure. The opening of the air space is an essential precondition. It is expected that a decision will be taken on this shortly, announced Knops.
The Dutch government has made two million euros available to improve the connection between St. Eustatius and Saba via ferry service between the Windward Islands. The public entities Saba and St. Eustatius are currently busy with the plans for this ferry connection.
“The objective is to make all necessary preparations so that, when the situation allows it, tourism can immediately be started. This will contribute to a quicker economic recovery of the Windward Islands,” Knops noted.
Cooperation is taking place in this regard with St. Maarten, St. Eustatius and Saba, the Ministry of Infrastructure and Water Management, the Ministry of Economic Affairs and Climate Policy, and the Ministry of Home Affairs and Kingdom Relations.
Bonaire, St. Eustatius and Saba are very vulnerable because of their large dependence on tourism. That is why diversification of the economy is of importance by creating other employment; for example, through information and communication technology (ICT) services and agriculture, stated Knops, adding that talks will be held with the public entities and the social partners on this subject.
For now, it is important that quick execution of the various government investments in infrastructure, school buildings and nature takes place. The funding is often available, but the execution of the work, which involves a lot of employment, faces challenges, stated Knops.
