Many companies are perfectly capable of passing on the increased energy costs and some even go the extra mile. This emerges from a research by the Central Planning Bureau, in which various industries were also examined. ‘We have some industries in this country that should never have gotten this big,’ says Professor Arnoud Boot.
According to Boot, two important conclusions emerged from the research. ‘The first is that some industries are taking advantage of the opportunity to raise prices further. Because if prices fluctuate strongly, it won’t be very noticeable if you raise prices.’ However, he stresses that companies should always have the ability to adjust prices.
For example, Boot says the industry used 40% less gas over the past year. “You also get changes in the composition of industrial companies,” he continues. “We have some industries in this small country that should never have gotten this big, either because of the energy and space they consume or the air pollution they cause.”
Take a step back
If a giant company like Tata Steel, for example, has an effect on the environment and energy consumption that is not in line with climate guidelines, then according to Boot we should get rid of such a company. “You have to get rid of that air pollution in a densely populated area.” Especially given the extremely low unemployment in the Netherlands, there is no need to keep such industries in the Netherlands according to Boot. ‘This is a valid argument in southern Europe, for example, where there is a twenty per cent youth unemployment rate. In a country like Holland it is a strange argument to use.’
An oft-heard argument in favor of keeping such large and annoying companies is that when they leave, they would also take many other companies with them that depend on their services and products. “We need to see if there are companies that fall between two stools and are so crucial to the Netherlands that they drag the rest of the economy along with them,” says Boot. “If there aren’t any, it’s very simple: the government should take a step back.”
Source: BNR
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
