All parties competing for the job had to demonstrate that the Dutch economy would benefit.
But now that the choice has fallen on the French company Naval, there are doubts as to whether that will work out in practice.
“The question is how much work will end up with Dutch companies,” says Wouter Kruijt, naval expert and former director of shipbuilder IHC.
“I have my doubts about that.”
One of the other contenders was Sweden’s Saab, which submitted a bid together with Dutch shipbuilder Damen.
That alliance hoped to win the order by betting on the added value for the Dutch economy.
After all, the submarines would be built in the Netherlands.
The French state company Naval is also carrying out the order in cooperation with a Dutch shipbuilder: IHC in Kinderdijk.
According to insiders, the Naval/IHC proposal states that 40 percent of sales will go to Dutch IHC.
But IHC’s director himself said recently in Schuttevaer magazine that he expects the added value of the deal with the French to be limited. Secret What exactly was in the requirements package of the Netherlands when the tenders were requested is secret.
So also how big a share Dutch companies should have in the construction.
Kruijt says he heard from sources “close to the fire” that the Netherlands is asking for a contribution of at least 5 percent.
Kruijt therefore does not expect Naval to adhere to the 40 percent figure mentioned in practice.
“I would be surprised if that is set in hard contracts. I think it’s more toward 10 or 15 percent.”
Kruijt also feels that the French do not have the best history when it comes to collaborations with other countries.
He points to an earlier difficult deal between Naval and Australia.
“My confidence in the French is not high,” he says. ‘Construction can be done in the Netherlands’ Where the cabinet has mainly gone wrong, according to Kruijt, is to lump the design and construction of the submarines together.
“That a foreign party is involved in the design, I think is a good action. Because indeed we have not designed and built new submarines since the Walrus in the 1990s. But about 80 percent of the building could be done in the Netherlands today. That technology, knowledge and skill are still there.”
So by giving the contract to Naval, Kruijt says, not only does a lot of money go abroad, but also knowledge.
“You are now stuck with the French for the next thirty years. Because if you want to be able to maintain it, you also have to have built it to a significant extent.”
Why the choice fell to Naval after all is anyone’s guess, Kruijt says.
“There has been enormous lobbying in any case. Last April, Macron paid a state visit to the Netherlands during which this order was high on the agenda. Apparently that lobbying has been successful.”
Government as a market player Governments regularly compete with companies.
Think of city guards securing business parks. To prevent distortion of competition, governments must follow rules of conduct. Rules of conduct for government The Market and Government Act (which amended the Competition Act) contains 4 rules of conduct.
These rules apply to the entire government. Passing on costs Governments must pass on all costs they incur for a service in the price.
Does a municipal parks department also maintain private gardens?
If so, governments must charge the full cost of that private maintenance to the owners of the private gardens. Favoritism prohibition Governments may not favor their own public companies over competing companies.
For example, by offering cheap rates. Data use Governments may not re-use the data in their possession for other activities.
This is only allowed if other organizations or companies also have access to the data (under the same conditions).
For example, is a municipality using the municipal register to send a commercial mailing?
Then this is only allowed if it makes the data available to others under the same conditions.
Companies can thus compete with the government on an equal footing. Separation of functions Does a government have an administrative role in certain services, and does it also perform those services itself?
If so, the same persons may not be involved in both governance and implementation.
The municipal official who handles the application for a logging permit cannot offer logging services to private individuals at the same time.
If a government offers goods or services on the market, it must comply with these rules of conduct.
This is the case, for example, when the municipality rents out its gymnasium.
If a government offers goods or services on the market, it must comply with these rules of conduct.
This is the case, for example, when the municipality rents out its sports hall.
Or if it maintains the green spaces at private homes. Exceptions to the rules of conduct competition The rules of conduct apply to governments that carry out economic activities.
Either themselves or through their public companies.
There are a number of exceptions to this.
The Guide to the Market and Government Act describes these exceptions.
Using a “decision tree” and by answering 9 questions, governments can determine whether the Market and Government Act applies to them.
This manual is a practical guide for authorities that have to deal with this law. Supervision of compliance with competition rules The rules of conduct under the Market and Government Act are set out in the Competition Act.
The Consumer and Market Authority (ACM) supervises compliance with these rules of conduct. Complaints about unfair government competition Do entrepreneurs think that the government is competing unfairly and not complying with the rules of conduct?
Then they can file a complaint with the organization they have problems with.
They can also take their complaint about unfair competition to the ACM.
The ACM can then investigate unfair competition. Does the ACM determine that the law is being violated?
Then it can impose a fine for each day the law is violated. Rutte III: preventing unwanted competition between governments and private parties The government wants to prevent improper and undesirable competition between governments and private parties. The general interest provision of the Market and Government Act will therefore be tightened. This is stated in the coalition agreement ‘Trust in the Future’. French Naval is a state company so there is arguably no level playing field. That important aspect has so far remained undiscussed. Political responsibility for the ministry lies with the Minister of Defense. The current minister of defense is Ruben Brekelmans (VVD). There is also a secretary of state, Gijs Tuinman (BBB).Gijs Tuinman has been the secretary of state for defense since July 2, 2024. Information about the State Secretary of Defense can be found at rijksoverheid.nl.
But now that the choice has fallen on the French company Naval, there are doubts as to whether that will work out in practice.
“The question is how much work will end up with Dutch companies,” says Wouter Kruijt, naval expert and former director of shipbuilder IHC.
“I have my doubts about that.”
One of the other contenders was Sweden’s Saab, which submitted a bid together with Dutch shipbuilder Damen.
That alliance hoped to win the order by betting on the added value for the Dutch economy.
After all, the submarines would be built in the Netherlands.
The French state company Naval is also carrying out the order in cooperation with a Dutch shipbuilder: IHC in Kinderdijk.
According to insiders, the Naval/IHC proposal states that 40 percent of sales will go to Dutch IHC.
But IHC’s director himself said recently in Schuttevaer magazine that he expects the added value of the deal with the French to be limited. Secret What exactly was in the requirements package of the Netherlands when the tenders were requested is secret.
So also how big a share Dutch companies should have in the construction.
Kruijt says he heard from sources “close to the fire” that the Netherlands is asking for a contribution of at least 5 percent.
Kruijt therefore does not expect Naval to adhere to the 40 percent figure mentioned in practice.
“I would be surprised if that is set in hard contracts. I think it’s more toward 10 or 15 percent.”
Kruijt also feels that the French do not have the best history when it comes to collaborations with other countries.
He points to an earlier difficult deal between Naval and Australia.
“My confidence in the French is not high,” he says. ‘Construction can be done in the Netherlands’ Where the cabinet has mainly gone wrong, according to Kruijt, is to lump the design and construction of the submarines together.
“That a foreign party is involved in the design, I think is a good action. Because indeed we have not designed and built new submarines since the Walrus in the 1990s. But about 80 percent of the building could be done in the Netherlands today. That technology, knowledge and skill are still there.”
So by giving the contract to Naval, Kruijt says, not only does a lot of money go abroad, but also knowledge.
“You are now stuck with the French for the next thirty years. Because if you want to be able to maintain it, you also have to have built it to a significant extent.”
Why the choice fell to Naval after all is anyone’s guess, Kruijt says.
“There has been enormous lobbying in any case. Last April, Macron paid a state visit to the Netherlands during which this order was high on the agenda. Apparently that lobbying has been successful.”
Government as a market player Governments regularly compete with companies.Think of city guards securing business parks. To prevent distortion of competition, governments must follow rules of conduct. Rules of conduct for government The Market and Government Act (which amended the Competition Act) contains 4 rules of conduct.
These rules apply to the entire government. Passing on costs Governments must pass on all costs they incur for a service in the price.
Does a municipal parks department also maintain private gardens?
If so, governments must charge the full cost of that private maintenance to the owners of the private gardens. Favoritism prohibition Governments may not favor their own public companies over competing companies.
For example, by offering cheap rates. Data use Governments may not re-use the data in their possession for other activities.
This is only allowed if other organizations or companies also have access to the data (under the same conditions).
For example, is a municipality using the municipal register to send a commercial mailing?
Then this is only allowed if it makes the data available to others under the same conditions.
Companies can thus compete with the government on an equal footing. Separation of functions Does a government have an administrative role in certain services, and does it also perform those services itself?
If so, the same persons may not be involved in both governance and implementation.
The municipal official who handles the application for a logging permit cannot offer logging services to private individuals at the same time.
If a government offers goods or services on the market, it must comply with these rules of conduct.
This is the case, for example, when the municipality rents out its gymnasium.
If a government offers goods or services on the market, it must comply with these rules of conduct.
This is the case, for example, when the municipality rents out its sports hall.
Or if it maintains the green spaces at private homes. Exceptions to the rules of conduct competition The rules of conduct apply to governments that carry out economic activities.
Either themselves or through their public companies.
There are a number of exceptions to this.
The Guide to the Market and Government Act describes these exceptions.
Using a “decision tree” and by answering 9 questions, governments can determine whether the Market and Government Act applies to them.
This manual is a practical guide for authorities that have to deal with this law. Supervision of compliance with competition rules The rules of conduct under the Market and Government Act are set out in the Competition Act.
The Consumer and Market Authority (ACM) supervises compliance with these rules of conduct. Complaints about unfair government competition Do entrepreneurs think that the government is competing unfairly and not complying with the rules of conduct?
Then they can file a complaint with the organization they have problems with.
They can also take their complaint about unfair competition to the ACM.
The ACM can then investigate unfair competition. Does the ACM determine that the law is being violated?
Then it can impose a fine for each day the law is violated. Rutte III: preventing unwanted competition between governments and private parties The government wants to prevent improper and undesirable competition between governments and private parties. The general interest provision of the Market and Government Act will therefore be tightened. This is stated in the coalition agreement ‘Trust in the Future’. French Naval is a state company so there is arguably no level playing field. That important aspect has so far remained undiscussed. Political responsibility for the ministry lies with the Minister of Defense. The current minister of defense is Ruben Brekelmans (VVD). There is also a secretary of state, Gijs Tuinman (BBB).Gijs Tuinman has been the secretary of state for defense since July 2, 2024. Information about the State Secretary of Defense can be found at rijksoverheid.nl.