Finance

1.3 billion euros in support for companies after new corona measures

The Fixed Charges Allowance applies to companies that see their turnover fall by 30 percent ‘and also meet the other conditions’.

By far the largest part of the money will go to reopening the TVL. Companies that meet the turnover threshold will be reimbursed 85 percent of the estimated fixed costs.

The fixed-cost scheme expired in the third quarter and was recently only available for night-time catering, but is now being expanded again. Under the new conditions, companies can also apply for support if they did not receive TVL support in the second and third quarter of 2021.

The cabinet is allocating 1.2 billion euros extra for this scheme.

‘Very disappointing arrangement’

MKB Nederland is not pleased with the compensation and calls it very disappointing. “In practice, few entrepreneurs are likely to qualify,” says the trade association.

“With three weeks of measures you will never achieve the 30 percent loss of turnover in a quarter.” In addition, only the fixed costs are compensated and the labor costs that make up the largest part of the losses are not, according to the organization.

In this way, the consequences of the policy are shifted onto the hands of entrepreneurs, says MKB Nederland. The entrepreneurs argue in favor of fully compensating all affected entrepreneurs and also want to open everything again as soon as possible so that money can be earned and compensation is not necessary.

Events

There will also be support for the events sector. No unplaced events are allowed from November 13 to December 4. Events that can take place can only take place until 18:00. In addition, there is a maximum capacity of 1250 visitors per room.

For events banned by the government, the support is increased to 100 percent, as happened in the summer period.

Sport

No spectators are allowed to be present at sports activities. For professional sports events, the cabinet is making a maximum of 36 million euros available to compensate for income from ticket sales and to accommodate season ticket holders for the period 13 November to 4 December.

To help companies through the corona crisis, the cabinet made a number of support packages last year. Companies affected by the corona crisis can, among other things, appeal to wage support (NOW) and an allowance for fixed costs such as energy costs and rent (TVL).

Not returning

Another well-known support measure, the NOW, will not return, the ministers involved write to the House of Representatives. The wage subsidy is ‘a generic, coarse scheme’ that does not fit in with the short package of measures. A risk is that ‘that employers will also receive support who have regular turnover losses that cannot be traced back to the new restrictive measures’.

Moreover, ‘at the moment we are aware of the situation where companies are desperate for labor and, in addition, there will be more or less work in certain sectors for a longer period of time or even structurally’. The NOW would prevent people from deciding to switch to sectors where there is a large shortage of workers, say the ministers.

Tens of millions of euros are set aside for specific schemes for agriculture, events, the cultural sector and sport.

completed

Those support packages were phased out in October as society reopened due to the low number of corona infections. However, it was taken into account that new support would be needed once stricter measures were taken due to the flaring corona virus.

The aid packages have cost the government tens of billions of euros in the past 1.5 years. In June, when not all support packages had been phased out, the Court of Audit calculated that up to that point 76.2 billion euros had been spent in connection with the corona crisis.

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