Proposition 54K0879

Projet de loi visant l'adaptation du titre 3 de la loi du 15 mai 2014 portant exécution du pacte de compétitivité, d'emploi et de relance et des articles 275/8 et 275/9 du Code des impôts sur les revenus 1992 au règlement (UE) n° 651/2014 de la Commission du 17 juin 2014 déclarant certaines catégories d'aides compatibles avec le marché intérieur en application des articles 107 et 108 du Traité.

General information ¶

Submitted by

MR Swedish coalition

Submission date

Feb. 6, 2015

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Subjects

collective dismissal competitiveness reflation less-favoured region State aid

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Discussion ¶

March 12, 2015 | Plenary session (Chamber of representatives)

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Mr. Speaker, Mr. Minister, Colleagues, the relance measure on specific aid in devastated zones makes it possible to provide support to employers who wish to make an investment in a region affected by large-scale collective redundancies.

This draft law is a first necessary step to make this relief measure operational as soon as possible. The measure consists in allowing employers to receive an exemption of 25 % from the transfer of the corporate advance fee for the new employees for a period of two years. These new jobs must be the result of an investment supported by the Region.

The Minister therefore stressed in the committee that the concept of “Western aid” should be interpreted broadly and is not limited to investment aid.

According to the cooperation agreement to be concluded with each Region showing interest in the federal measure, the Region will submit a list of regional support measures to the Minister. This list will therefore be included by the administration in a circular.

An additional condition for SMEs is that the workplace must continue to exist for at least three years. For large companies, this is five years.

The Minister pointed out that in order to avoid requiring the separate and prior approval of the European Commission for each delimitation of a support zone, it was opted to make the measures developed in Articles 14 to 19 of the Competitiveness Pact Act compliant with the General Group Exemption Regulation drawn up by the European Commission, which was recently amended and entered into force on 1 July 2014.

Colleagues Smaers, Vanvelthoven, Dewael, Van Rompuy and myself took the floor. All asked for additional information on the preparatory contacts with the Regions and on the status of the cooperation agreements. How quickly can the aid measures come into effect? It also emphasized the importance of making the application procedure as simple as possible.

The Minister responded that it is expected that the actual entry into force of all these measures would be at the end of April 2015. The Minister also stated that on 18 December 2014, at the time when the Council of Ministers approved the preliminary draft law and a draft cooperation agreement, all competent regional authorities received a letter asking to start negotiations in that framework.

So far, only negotiations have taken place with the Flemish government and these negotiations are therefore in a final stage. The list of regional aid measures that may be eligible for federal aid to Flanders was approved by the Flemish government on 27 February. The Flemish colleagues therefore emphasized the enormous importance of this measure for the regions of Kempen and Limburg.

Colleague Gilkinet had some questions about the measure and about the support for investments. He asked if they were effective.

Mr Gilkinet also submitted an amendment to provide for an annual review of the criteria and percentages determined to be eligible for exemption from enterprise premium, as well as a general review of the aid measure after a three-year period. That amendment was not approved because the Minister confirmed that an annual review would take place, and that is also stated in the explanatory note. This annual review is also explicitly included in the arrangement and in the cooperation agreements with the Regions.

The bill was adopted in the committee with 13 votes for and 1 against.

I now come to my personal concerns.

Colleagues, I am very pleased that this government has made a priority of the current draft law on degraded zones. I think that is such a terrible word that I would rather talk about support zones.

In my opinion, this bill is of enormous importance, on the Flemish side, for the regions of Kempen and Limburg. The closure of Ford Genk has caused a lot and is currently catastrophic for Limburg. A lot of people are currently looking for a job.

Just the measure of the exemption from the transfer of corporate advance tax of 25 % can give a push in the back so that the companies in Limburg and in the Kempen take the step to recruit new people. I am therefore very pleased that the current measure is very broad, because the difficulty often consisted in the mandatory combination with investment aid. All kinds of measures, from the SME portfolio on RSZ reduction to all kinds of loans that can be obtained through the Flemish government, can serve as regional support, which was also one of the conditions.

I only hope, Mr. Minister, that we reach the 30 April limit. Can you confirm that we are still on schedule and that all the steps that had to be taken to reach that date have been successful?

Thank you very much, also on behalf of the Limburgers.

Mr. Speaker, Mr. Minister, dear colleagues, we will today adopt the law that executes the Competitiveness Pact and the articles of the Tax Code to bring them in line with the decision of the European Commission.

The MR group obviously supports this project, because at the end of this agreement, the government has committed to ensure, in collaboration with the regional executives, that the relief measure concerning specific aid to free zones is operational as soon as possible.

When drawing up the Competitiveness Pact, the government aimed to take a measure that would provide short-term aid to employers who wish to invest in a region affected by significant dismissals.

After the European Commission has agreed, the adoption of this project will allow investors to know in advance and with accuracy the reductions of professional pre-count they will benefit from in case of hiring personnel.

In order for the investment to come into account, it must also be recognized by the Regions and it must be granted aid by the Regions for this investment. In this context, you told us, Mr. Minister, “A cooperation agreement must be concluded with the Regions.” We just heard that was the case for Flanders. Hopefully Wallonia will follow. We therefore hope that these cooperation agreements, signed quickly, will allow this measure to bring out all its effects, because it is an important and necessary step, in order to make operational this relief measure, which sends a clear signal in favour of the economic re-development of these areas.

The MR welcomes the fact that the government is acting quickly, efficiently and accurately through simple incentive tax instruments, in order to enable investors to settle, grow and create jobs in difficult cities. We obviously think of La Campine and Limburg as well as Carsid in the Charleroi region, Caterpillar and now we think, in the province of Luxembourg, of a company that has just announced that it will close its doors in June 2016.

Our group, Mr. Minister, will support this project, which is the foundation of a new dynamic in terms of development but also in terms of synergy with the Regions.

The draft law, which is put to the vote today, has its origin in the law of 15 May 2014 concerning the implementation of the Pact for Competitiveness, Employment and Recovery. In the same period, May last year, the previous Flemish government made the decision to establish support zones for Genk and Turnhout. In the Flemish administrations, concrete dossiers were drawn up in order to be able to take support measures for the more affected regions from both the regional and federal levels.

I hold my presentation together with my colleagues from Limburg for the benefit of the Kempen, but above all also for the benefit of Limburg. We all think this is a very good measure. Therefore, we cannot wait to approve the bill here so that this measure can be implemented. After all, it is a measure that can contribute to additional employment and relance in the devastated zones. I think that word use is not entirely correct.

It is regrettable that we have had to come to the establishment of disrupted zones, given the large-scale consequences of the collective dismissals at Ford Genk in Limburg, and a lot of restructuring and collective dismissals in the Kempen. Think of Philips Turnhout, Heinz Turnhout and Henrad Herentals. The Kempen and Limburg are the most industrialized regions in Flanders. There are a lot of things in Wallonia. In these regions, the consequences of crises and large-scale crises are felt first.

We are therefore pleased that these tax aid measures have experienced a fairly rapid process. We hope that this will bring us a step closer to new growth and employment in the affected regions.

I recently heard Marcia De Wachter of the National Bank of Belgium say that it must ⁇ be extra difficult for the regions of Kempen and Limburg to have to fight against the Netherlands that in recent years has invested heavily in a serious reduction of the burden on labor. In the Netherlands, a tax shift has already been implemented. For the northern regions of Kempen and Limburg, it is therefore all the more important that they receive a reduction in wage charges because otherwise they may be even more difficult to compete with the Netherlands, where the wage charges are much lower than in Belgium.

I therefore hope that this fiscal favourable measure, together with the strategic economic plans SALK and DYNAK, Limburg and the Kempen, can bring some dynamism and growth and that we can effectively provide new jobs and new investments in these regions in the coming years.

Mr. Minister, as you promised during the consideration of this bill in the Finance Committee, I ask you for a very quick implementation of the bill and the necessary royal decree, which is still to be made, in order to carry out a simple application procedure for the tax favour measure. The cooperation agreement between the federal government and the Flemish government should also come quickly, so that we have an effective measure at the beginning of May, on which our companies can rely.

Mr. Speaker, Mr. Minister, colleagues, many have already said it here: today we approve the bill that makes it possible to officially recognize the region of Genk, and in case of enlargement Limburg, and Turnhout as a support zone. In that zone, companies will receive a 25 % reduction on the social contributions on the new employment they create there. I can assure you that this measure does not come a moment too early, Mr. Minister.

In June 2013, our group leader Patrick Dewael already advocated in this hemisphere to recognize Limburg as a disrupted zone. The announcement of the closure of Ford Genk was then in Limburg just like a bomb. The factory has been closed for two months. The closure affected our social and economic tissue. 12,000 people lost their jobs either directly or indirectly. It was a tough note to crack for many families in Limburg.

In times of crisis, we need resilience and a horizon. For Limburg, this meant more investments, more companies, more economy, new economic poles, innovation, creativity and solidarity, but above all a lot of job creation and job retention. The exemption from the transfer of the corporate advance tax of 25 % for companies investing is a direct economic injection that can count. No plan load, no waiting times, simple, bright and clear. A substantial reduction in wage costs, oxygen for our economy.

Patrick Dewael emphasized this already in the Finance Committee of 25 February. He said there: “This is a fiscal stimulus that can really make the difference, which can get investors over the line to invest not in the Netherlands or Germany but here with us and create jobs.

This is also a measure that has proven its usefulness in the past. After the closure of the Kempic coal mines, she helped us to create new jobs. Or as he also said in that committee: “This measure is like the turbo on the SALK.”

Also for the Turnhout region, this is a concrete and very strong push in the back. In recent years, the region has often come to the news with dismissals and shutdowns such as Philips, Heinz, McCain and DAF. This measure gives the very necessary impulse to entrepreneurs who want to invest in the Kempen and, above all, create jobs.

Mr. Minister, you stated in the committee that the publication will take place in mid-March. The cooperation agreement with the Regions can be signed immediately afterwards. The same would apply to the publication of the KB that marks the zones. This measure will actually come into effect by the end of April.

Today we leave the dark winter quietly behind us. The economic spring will bring growth and prosperity, seed jobs and harvest jobs in Limburg, in Turnhout, in Flanders, in our country.

I would like to thank the colleagues who will support this project today.

I think there are little differences of opinion on this matter. It has emerged in the previous legislature at a time of major economic problems in a number of regions in our country.

I think all political parties have drawn to this with all their power and force to get this file around.

We have encountered a delay in this file that is not due to anyone. I am pleased that this element of the competitiveness pact that was created under the previous government has also been incorporated by this minister and has led to this draft to a good end.

Mr. Minister, you have understood in the committee that speed in this is desired. You then suggested the time path as late April, early May. Per ⁇ you need to explain that a moment. Is everything on schedule or are there any obstacles to overcome?

I would like to emphasize the need for speed again today, because I know of new investors who have been waiting for that measure for months. Again, the delay is no one’s fault, but speed is needed to be able to create the jobs we talked about this afternoon in many discussions in the most vulnerable areas of our region.

I hope that we can approve the text today unanimously or almost unanimously and that the speed that is now in it can also be kept.

Mr. Speaker, Mr. Minister, dear colleagues, I am quite sad to have to break, in some way, this unanimity in favour of this bill.

This is the mechanism referred to in Articles 275.8 and 275.9 of the Income Tax Code. But the philosophy of these two articles is the same as that of articles 275.1 to 275.9.

What is this mechanism? We should be able to tell the workers. In fact, the employer takes, from the salary of his employees, a pre-count that he must return to the tax. Instead of reversing the aforementioned pre-account to the latter, it accumulates it, which represents 25 %.

Some of these articles aim to cumulate different exemptions. Sometimes it is a question of 100% of the pre-account. In other words, the entire employee tax is collected by the employer and is not paid to the tax. I can only call this a legalized theft of workers’ wages.

One can only support and applaud with both hands the idea of supporting the Regions in difficulty, but this should not be done through costly and ineffective measures. In fact, what is the cost of this professional pre-account exemption? I am not talking only about Articles 275.8 and 275.9; I am talking about all the exemptions from professional pre-account. In 2005, this represented for the state a cost of 200 million euros. In 2013, the last available figures, we reached 3 billion euros in terms of budget loss for the state. The amount was thus multiplied by fifteen between 2005 and 2013. This is huge, while the result is zero in terms of jobs. We talk about the cost of notional interest, but with this measure of exemption from the professional pre-count, we are facing the younger sister of the latter.

Rather than reducing state resources under the pretext of creating jobs that you never see being created, let us use them to create jobs where it is necessary.

In addition, I would like to express a particular criticism regarding the aforementioned articles. Along with the gift offered to employers, we are witnessing an extension of the temporary work. Workers are subject to double punishment. Not only do they have to pay a portion of their taxes to their boss, but they also see their working conditions deteriorate as they are forced to work as temporary workers.

In conclusion, all of this is PTB-GO! I will vote against this proposal.

Mr. Speaker, I think there is indeed quite a large consensus around this project, except for the philosophical remarks of Mr. Van Hees. It ⁇ won’t surprise him that I disagree with that.

This is not the first time we disagree on this point.

Restoring competitiveness creates jobs. The government has a comprehensive agenda in this area. The bill under discussion will further strengthen this effect for Limburg and other provinces.

In addition, we in Limburg have indeed experience with this type of measures and with their positive results.

With regard to this assembly, I would like to emphasize that we are trying to maintain a tight timetable. Following today’s discussion, the draft law will be published in the Belgian Staatsblad in the second half of March. The signing of the cooperation agreement with Flanders, following the publication of the law in the Belgian Staatsblad, will take place at the end of March. The publication of the KB with support zones and the corresponding form necessary to obtain the response will take place in the second half of April. The measure will enter into force at the end of April or early May. This is the timeline that we have set out in the committee and that we will try to maintain. We will do everything we can to make this stand.

I have another small comment specifically for Limburg. I am in consultation with the Flemish Government to ensure that the delimitation of the zones is carried out in the most adequate and meaningful way in order to ⁇ maximum results.

Finally, at the end of January, meetings were held with all the Regions to present this bill. The Flemish Region reacted immediately. Unfortunately, until now, I have not received any reaction from the Walloon Region or the Brussels Region. The address of the Finance Office has not changed.