A number of additional subsidies for residents of Bonaire, St. Eustatius, and
Saba expire on the 1 st of January 2025. They include the energy allowance for
persons on the legal minimum wage and contributions for electricity and
drinking water. These subsidies were a temporary cost-of-living allowance in
addition to the increase of the minimum income.
In a letter to the House of Representatives, State Secretary Szabó informed that the
Cabinet recognises that the costs for utilities will rise. It involves an increase of at
least $40 for electricity and $6 for water. For the energy allowance, it would be about
$108 a month. However, the increase remains limited because a number of subsidies
will continue in 2025. For instance, the internet and telephone allowance for
households on a minimum income is maintained and there are funds to enable public
transport. In addition to higher minimum wages, employer contributions have also
been reduced.
Moreover, the Cabinet intends to take further measures to support persons on the
legal minimum wage on the islands. In the spring, the Cabinet will decide how to
efficiently use the remaining purchasing power resources. For this purpose, the
Cabinet earmarked an additional €9.5 million in total. This will allow the most adverse
effects of the cost increase to be absorbed from the spring onwards, especially for
persons on the legal minimum wage. Later this year, the Cabinet will send a letter to
the House of Representatives with the Cabinet’s response to the report of the
Committee Social Minimum Caribbean Netherlands.
Amendments at budget debate Kingdom Relations
In the same letter, the State Secretary responds to three proposed budget
amendments. It involves two amendments to maintain the temporary subsidies by
adding more funds to the BES fund. One amendment concerns the transfer of
€800,000 of the implementation costs for the slavery history programme to the Royal
Netherlands Marechaussee (KMar).
State Secretary Szabó advises against the first-mentioned amendments because
part of the expiring subsidies are not funded from the BES fund. Moreover, the
withdrawal of these funds (€7 million) from the Kingdom Relations budget implies that
other policies that are also important for the islands cannot be implemented. The
State Secretary further informs that he intends to fund the required resources for
capacity expansion of the KMar from his own budget if the KMar calls for it.
