Exciting weeks on all fronts
October 23, 2023
The Public Affairs department represents the interests of Royal FloraHolland, its members and the floriculture sector in society, the media and politics. This is an update on the lobbying aimed at the early elections to the Dutch House of Representatives on 22 November.
With all that is coming at growers and our marketplace, we have to make choices in advocacy. Name a societal challenge and it affects us: energy transition, reduced resource use, water management, being a good employer, increasing biodiversity, etc. We therefore consciously choose which topics we are fully committed to and where we seek cooperation with other interest groups and sector partners. Who has the most expertise or the best entrance into the relevant official or political network? Together we achieve so much more!
Royal FloraHolland employs two lobbyists. Willem Jan Verdoes has the focus on 'The Hague', Aileen de Witte represents our interests in Brussels. They are active full-time on behalf of the VBN. National policy is important and much of it now comes about as a result of European decision-making. Here is a look behind the scenes using two current examples.
Result of VAT increase not commensurate with blows to industry
Thursday, October 26, was the last sitting day of the House of Representatives in its old composition. The abolition of the reduced VAT rate for ornamental horticulture, to use the proceeds to pay lower interest rates for student loans, also came up for a vote. Fortunately, this will not go through. Another source of funding has been found. This is not to say that the danger is over, as it is up to a new cabinet to decide on all low VAT rates in the future.
An increase in the current reduced VAT rate for ornamental plant products, from 9% to the standard rate of 21%, has long been a desire of the government. After all, it provides additional money in the state treasury. The outgoing cabinet is leaving the decision on this to a subsequent cabinet. We are already holding talks with members of parliament to inform them of the consequences of such an increase. And then it turns out that these are certainly not always clear. We have the facts clearly in order, because together with the VGB, VBW, Tuinbranche NL and the CVAH we had Wageningen University calculate the consequences for the sector. The loss of turnover in all links of the chain is great, because a VAT increase has a direct effect on consumer spending. In addition, the net result for the state treasury appears disproportionate to the "blows" to the sector. A number of political parties are certainly sensitive to the accumulation of negative effects due to increased costs, unfavorable tax measures and relatively high inflation and really don't think an increase in VAT is wise!
A lot of legislation
In Brussels, a lot of legislation is coming our way from the Green Deal to ensure that the agreed climate goals are met. One far-reaching bill is the Sustainable Use Regulation (SUR). Among other things, it states that the use of chemical crop protection agents must be reduced by 50% by 2030. Also, farmers and gardeners must apply IPM and "chemistry" may only be used as a last resort. From the VBN, we confirm the need to become more sustainable, but in consultation with the sector about the feasibility. For example, in the lobby we are pushing for an exception for the use of chemical crop protection agents in closed systems and a fair transition compensation for crop damage as a result of the rigorous reduction in the use of agents.
Exciting weeks on all fronts
These are exciting weeks on all fronts. There is never a guarantee that our efforts will produce the desired results. But we are trying with 100% commitment to ensure that our members can continue to do what they do best!
Do you have any questions, or would you like more information on this topic? Please send an email to publicaffairs@royalfloraholland.com.
With all that is coming at growers and our marketplace, we have to make choices in advocacy. Name a societal challenge and it affects us: energy transition, reduced resource use, water management, being a good employer, increasing biodiversity, etc. We therefore consciously choose which topics we are fully committed to and where we seek cooperation with other interest groups and sector partners. Who has the most expertise or the best entrance into the relevant official or political network? Together we achieve so much more!
Royal FloraHolland employs two lobbyists. Willem Jan Verdoes has the focus on 'The Hague', Aileen de Witte represents our interests in Brussels. They are active full-time on behalf of the VBN. National policy is important and much of it now comes about as a result of European decision-making. Here is a look behind the scenes using two current examples.
Result of VAT increase not commensurate with blows to industry
Thursday, October 26, was the last sitting day of the House of Representatives in its old composition. The abolition of the reduced VAT rate for ornamental horticulture, to use the proceeds to pay lower interest rates for student loans, also came up for a vote. Fortunately, this will not go through. Another source of funding has been found. This is not to say that the danger is over, as it is up to a new cabinet to decide on all low VAT rates in the future.
An increase in the current reduced VAT rate for ornamental plant products, from 9% to the standard rate of 21%, has long been a desire of the government. After all, it provides additional money in the state treasury. The outgoing cabinet is leaving the decision on this to a subsequent cabinet. We are already holding talks with members of parliament to inform them of the consequences of such an increase. And then it turns out that these are certainly not always clear. We have the facts clearly in order, because together with the VGB, VBW, Tuinbranche NL and the CVAH we had Wageningen University calculate the consequences for the sector. The loss of turnover in all links of the chain is great, because a VAT increase has a direct effect on consumer spending. In addition, the net result for the state treasury appears disproportionate to the "blows" to the sector. A number of political parties are certainly sensitive to the accumulation of negative effects due to increased costs, unfavorable tax measures and relatively high inflation and really don't think an increase in VAT is wise!
A lot of legislation
In Brussels, a lot of legislation is coming our way from the Green Deal to ensure that the agreed climate goals are met. One far-reaching bill is the Sustainable Use Regulation (SUR). Among other things, it states that the use of chemical crop protection agents must be reduced by 50% by 2030. Also, farmers and gardeners must apply IPM and "chemistry" may only be used as a last resort. From the VBN, we confirm the need to become more sustainable, but in consultation with the sector about the feasibility. For example, in the lobby we are pushing for an exception for the use of chemical crop protection agents in closed systems and a fair transition compensation for crop damage as a result of the rigorous reduction in the use of agents.
Exciting weeks on all fronts
These are exciting weeks on all fronts. There is never a guarantee that our efforts will produce the desired results. But we are trying with 100% commitment to ensure that our members can continue to do what they do best!
Do you have any questions, or would you like more information on this topic? Please send an email to publicaffairs@royalfloraholland.com.
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