State Secretary Szabó informs Chamber on consequences of subsidy expiry in Caribbean Netherlands
A number of additional subsidies for residents of Bonaire, St. Eustatius, and Saba expire on the 1st of January 2025. They include the energy allowance for persons on the legal minimum wage and contributions for electricity and drinking water. These subsidies were a temporary cost-of-living allowance in addition to the increase of the minimum income.
In a letter to the House of Representatives, State Secretary Szabó informed that the Cabinet recognises that the costs for utilities will rise. It involves an increase of at least $40 for electricity and $6 for water. For the energy allowance, it would be about $108 a month. However, the increase remains limited because a number of subsidies will continue in 2025. For instance, the internet and telephone allowance is maintained and there are funds to enable public transport. In addition to higher minimum wages, employer contributions have also been reduced.
Moreover, the Cabinet intends to take further measures to support persons on the legal minimum wage on the islands. In the spring, the Cabinet will decide how to efficiently use the remaining purchasing power resources. For this purpose, the Cabinet earmarked an additional €9.5 million in total. This will allow the most adverse effects of the cost increase to be absorbed from the spring onwards, especially for persons on the legal minimum wage. Later this year, the Cabinet will send a letter to the House of Representatives with the Cabinet’s response to the report of the Committee Social Minimum Caribbean Netherlands.
Amendments at budget debate Kingdom Relations
In the same letter, the State Secretary responds to three proposed budget amendments. It involves two amendments to maintain the temporary subsidies by adding more funds to the BES fund. One amendment concerns the transfer of €800,000 of the implementation costs for the slavery history programme to the Royal Netherlands Marechaussee (KMar).
State Secretary Szabó advises against the first-mentioned amendments because part of the expiring subsidies are not funded from the BES fund. Moreover, the withdrawal of these funds (€7 million) from the Kingdom Relations budget implies that other policies that are also important for the islands cannot be implemented. The State Secretary further informs that he intends to fund the required resources for capacity expansion of the KMar from his own budget if the KMar calls for it.