Cabinet collapse: controversial policies on ice

The collapse of the cabinet means a number of controversial pieces of legislation are now likely to be put on hold pending the election of a new government or may disappear all together.


In a period of caretaker government, MPs can continue to process new legislation which has majority support. But in practice, the objections of just one party can be enough to halt the process.
According to the FD, there are no formal regulations to cover what happens to draft legislation in the run-up to an election. Charlotte Brands, political researcher at Radboud University in Nijmegen told the paper: ‘important dossiers which cannot be dropped may still be processed with majority support.’
Pension age increase
The outgoing cabinet’s plans to increase the state pension age from 65 to 67 are extremely controversial and strongly opposed by several parties. Labour, while in government, accepted the move but MPs will now be free to change their minds.
But parliamentary research Miel Jacobs told the FD he expected social affairs minister Piet Hein Donner to try to continue to process the legislation.
€35bn in savings
The 20 committees set up to investigate all areas of government strategy and spending in an effort to indentify €35bn in cuts and extra sources of revenue will also continue their work, Jacobs told the FD.
The cash is need to help the government balance its books following the recession. However, any recommendations the committees make are likely to be central in coalition negotiations, once the election has been held.
Kilometer tax
Transport minister Camiel Eurlings efforts to introduce a kilometer tax on motoring are now likely to strand, insiders say.
The measure, which the government says will make motoring cheaper for most people, has generated a storm of criticism in terms of cost and privacy.
Privatisation
Health minister Ab Klink’s wish to experiment with giving hospitals the right to pay out profits to shareholders are likely to be put on hold as well.
The same goes for justice minister Ernst Hirsch Ballin’s proposals to allow semi-public sector organisations such as schools and housing corporations to turn themselves into ‘social enterprises’ which will also be able to attract private capital and pay out dividends.
Fast track planning powers
Legislation paving the way for fast-tracking planning procedures until the end of the economic crisis has already been held up in the upper house of parliament because of fundamental objections.
The aim of the temporary legislation is to reduce the permits and planning procedures needed for 58 key construction and infrastructure projects. Ministers believe that kick-starting the building sector is key to boosting the economy during the crisis and will reduce unemployment.
Sunday shopping
Cabinet plans to clamp down on local councils which wrongly allow shops to open on Sundays because they claim to be in a tourist area have already been delayed for at least a year because of the recession.
But economic affairs minister Maria van der Hoeven’s efforts to draw up tougher definitions of a tourist area, due to come into effect in January 2011, will now be halted.
Redundancy law
Social affairs minister Piet Hein Donner’s wish to bring in changes to redundancy law and formalise a maximum one year’s pay-out to people earning over €75,000 a year will also be put on hold.

Public sector salaries

Home affairs minister Guusje ter Horst’s plan to introduce legislation setting maximum salaries for public sector pay are also in doubt. The prime minister’s basic salary of €180,000 is already considered the guideline maximum for the public sector but the minister had hoped to anchor this in law by 2011.
Home ownership
Finance minister Wouter Bos’s plan to increase the home owners tax on houses valued at over €1m is also likely to flounder.
But phasing out tax relief for interest repayment-only mortgages could be back on the agenda during the election campaign.

Smoking ban

Small cafe owners say they expect the cabinet’s fall will bring an end to Klink’s efforts to close a loophole in the smoking ban, which allows customers in bars and cafes without staff to carry on smoking.

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