Decline in Purchasing Power in the Caribbean Netherlands Called “Improper” and “Unacceptable”

The site DossierKoninkrijksRelaties writes that a report from Nibud has sparked shock and outrage in both the Caribbean Netherlands (BES islands) and The Hague, revealing that the purchasing power of low-income residents is set to decline by nearly 10% starting January 1. Critics have labeled the government’s policy changes as “improper,” “unacceptable,” and “shocking.”

The decline is attributed to the Schoof cabinet’s decision to discontinue energy allowances for low-income households and subsidies for fixed energy, water, and telecom connection rates. This will result in a loss of $184 per month for minimum-wage earners and $174 for families with two children earning 1.5 times the minimum wage. Welfare recipients are similarly affected.

Outrage from Key Figures

Reinier van Zutphen, National Ombudsman

National Ombudsman Reinier van Zutphen criticized severely, stating, “The government is pushing citizens of Bonaire, Saba, and Statia deeper into poverty. These measures show that the citizens of the islands are dealing with an unreliable government. A 10% drop in income exacerbates poverty while supermarket prices continue to rise. The lack of adequate support is shocking and improper.”

Norman ‘Nochi’ Willem, chairman of USIBO, an umbrella organization for trade unions in Bonaire, called the policy consequences “unacceptable.” He highlighted that recent gains in purchasing power, achieved after 14 years and a large public demonstration, have been “completely undermined.” Willem announced plans to unite trade unions and stakeholders to push for immediate compensation.

Similarly, Merwyn Stegers, chair of the Central Dialogue, argued for the reinstatement of subsidies, warning that without intervention, the decline in purchasing power will persist until wage adjustments are implemented—a process that typically takes a year. He also cautioned about the ripple effects on the business community, which faces higher energy costs.

Political Reactions

Members of the House of Representatives voiced their concerns:

  • Michiel van Nispen (SP): “We cannot allow inequality to deepen. Proposals like the Cedar amendment, which aim to address this issue, have our full support.”
  • Peter van Haasen (PVV): “The disparity in regulations and subsidies between the Caribbean and European Netherlands is troubling. The reversal of energy allowances is hitting people hard.”
  • Raoul White (GroenLinks-PvdA): “It’s unacceptable that BES residents are penalized due to bureaucratic disagreements. A bridging solution is urgently needed, along with a structural approach to ensure incomes do not fall below Nibud’s minimum thresholds.”

Government Response

State Secretary Zsolt Szabó

State Secretary Zsolt Szabo (Kingdom Relations) declined to address the issue directly, stating that a detailed response would be provided to the House of Representatives ahead of the December 11 committee debate on the subsistence level in the Caribbean Netherlands. Szabo had previously dismissed pleas to extend allowances, arguing that purchasing power developments would be considered in the spring.

In the meantime, advocacy groups like Unkobon, a consumer association, are considering legal action against the State.

Upcoming Debates

The House of Representatives is set to discuss the Social Affairs and Employment budget on November 29-30, providing an opportunity to press ministers on this issue. This will be followed by the December 11 Parliamentary Committee debate on the Thode Committee report, “Worthy Existence.” Remarkably, the Thode Committee has yet to be invited to discuss its findings, despite the report being published over a year ago.

The situation underscores the urgent need for equitable solutions to address the growing disparity between the BES islands and the European Netherlands.

DossierKoninkrijksRelaties

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