Budget crisis in Netherlands

Press, Volume CXII, Issue 32971, 18 July 1972, Page 15

Budget crisis in Netherlands

(N.Z.P .A.-Reuter—Copyright)

THE HAGUE, July 17. Two Cabinet Ministers resigned today, plunging the Dutch Government into a crisis amid marathon consultations over an expected 1973 Budget deficit of SNZBS7 million.

The two Ministers who resigned were Dr Wilem Drees, jun., aged 50, Minister of Transport and Waterways, and Mr Maurits de Bauw, aged 47, Minister of Sciences. Both belong to the Democratic Socialist 70 Party and their departure indicated major disagreement with Government proposals for budget economies. Dr Drees is a former director of the Budget and son of a former Prime Minister. Cabinet ministers have been meeting for five days now, sometimes for 12 hours at a time, in an effort to devise economies and tap new sources of income.

It had already been reported that the Government hoped to save SNZ4SO million from economies in Government ministries alone. Dr Drees and Mr de Brau are the only members of the Democratic Socialist 70 Party in the five-way coalition Cabinet of the Prime Minister (Mr Biesheuvel). The party was formed in 1970 by dissident members of the Dutch labour party.

The 16-member Right of centre Cabinet, named in June last year, also includes six members of the Catholic Peoples Party, three from the Protestant Anti-Revolutionary Party, three from the liberal Peoples Party for Freedom and Democracy and two from the (Protestant) Christian Historical Union.

The five parties together hold 82 seats in the 150-seat Second Chamber (Lower House) of Parliament. Mr Biesheuvel has informed Queen Juliana of the two , resignations, Government of- • ficials said. Political sources in The

Hague said that Dr Drees and Mr de Brauw left because they could not agree to the economies aimed at their ministries.

According to Dutch newspaper correspondents Mr Biesheuvel has been trying to force through the economies at marathon sessions lasting until the small hours. Political circles had also forecast trouble over a reported Government plan to increase added-value tax, in some cases to 16 or 17 per cent. This they said, would contradict one of the mainstays of Government policy: to keep prices down and com. bat inflation.