"A moral appeal should suffice"

12th April 2007, Comments 0 comments

12 April 2007, AMSTERDAM – Finance Minister Wouter Bos (Labour PvdA) is making a "moral appeal" to senior management at large companies to refrain from taking excessive salaries. He will not be introducing any extra measures to rein in high salaries in the business sector, the Volkskrant reports.

12 April 2007

AMSTERDAM – Finance Minister Wouter Bos (Labour PvdA) is making a "moral appeal" to senior management at large companies to refrain from taking excessive salaries. He will not be introducing any extra measures to rein in high salaries in the business sector, the Volkskrant reports.

This emerged on Wednesday in the debate in Parliament on exorbitant salaries in the business sector. The PvdA faction has been arguing over the past few days that an extra tax for high incomes should be introduced, but the party will not push the issue.

"Our standpoint on this issue differs from that of the cabinet," MP Paul Tang said. "But there is no point now in digging our heels in."

The parliamentary debate was in response to the high salaries announced at Numico, PCM and ING. Bos repeated his view that it was not the time for fiscal measures. Increasing the tax on the highest tax bracket even further, from 52 to 55 percent as trade union confederation FNV had suggested, would have an adverse effect the minister said. "In reality people look at the net salary. The result of increasing the tax would be that the gross compensation would simply increase."

Many MPs reminded Bos of his statements during the election campaign that the previous government was lacking in effectiveness. "Pitiful," said Bas van der Vlies, leader of the fundamentalist Christian SGP. "For years you have been saying that something must be done. It turns out those were just empty suggestions."

Bos refused to call the high salaries "unacceptable." "That would suggest that I have measures to make sure that such salaries are done away with."

He does think that the proportions of the salaries "cannot be justified." Bos is calling on shareholders, unions and board members at these companies to take on their responsibility.

[Copyright Expatica News 2007]

Subject: Dutch news

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