Frequently asked questions about the Social and Economic Council
Is the Dutch Cabinet obliged to ask the Council’s advice on all important social and economic matters?
The Cabinet’s obligation to ask the Council’s advice on all significant social and economic policy intentions was reversed in law in 1995, but there has been no fall in the number of requests received by the Council.
If the Cabinet does not ask the Council for its advice on a matter that the latter regards as important, the Council may decide to issue an advisory report of its own volition. As a rule, it will only do so if it believes that its advice will have the unanimous backing of all its members. Approximately 17 percent of the Council's advisory reports are issued of its own accord. Generally, these are reports that deal with matters of international policy.
Can other bodies besides the Cabinet ask the Council’s advice?
The Upper and Lower Chambers of Parliament have been permitted to ask the Council’s advice since 1 January 1997. The first request for advice – which came from the Lower Chamber of Parliament – was about inadequate old-age pension entitlement and dates from December 1999. The Council issued its report in May 2000. In June 2002, the Upper Chamber asked the Council for its advice on the Bussemaker-Van Dijke bill, which concerned working hours. The Council’s report was issued in October 2002. The Council is presently working on its response to a request from the Lower Chamber regarding the future of the government’s policy on the elderly.
How long does it take the Council to prepare an advisory report?
The Council generally takes about six and a half months to prepare a report. In many cases, it would be difficult to do so in less time. After all, one reason why the Council’s reports are so significant is that they have broad support among employers and employees. It is therefore vital that the Council should be able to consult the members of employers’ associations and trade unions, something for which it must set aside enough time. The Council can, however, also respond to a request within three months when time is of the essence. It does so by issuing an advisory letter in that case.
How effective are the Council’s advisory reports?
It is difficult to express the effectiveness of the Council’s advice in figures. It cannot be gauged simply by the impact on legislation and regulations, as not every report concerns a piece of proposed legislation. Often, the Council’s advice merely records its response or its views on a policy memorandum, for example. When such policies are turned into legislation, elements of the Council’s advice are often incorporated into the relevant act or regulation.
However, the effectiveness of the Council’s advice cannot be judged solely by the action the Cabinet takes on the basis of that advice. What is also important is that the Council’s members – the employer and employee representatives and the members appointed by the Crown – and their backers engage in discussion. The Council is equally important in bringing parties together and generating support for policy changes. How an advisory report contributes to generating such support can be measured by the degree to which the advice is unanimous. More than eighty percent of the Council’s advisory reports have the unanimous support of its members. In almost half the cases in which opinions are divided, the members agree on the overall principles but not on all the details. In approximately ten percent of the reports, the members disagree on the overall principles.
Is the Cabinet obliged to follow the Council’s advice?
No, the Cabinet is free to decide whether or not to follow the Council's advice. However, if the employer, employee and Crown members unanimously support an advisory report, the message for the Cabinet is clear. According to the 1997 Framework Act Governing Advisory Bodies (Kaderwet adviescolleges), the Cabinet should respond to the Council’s advice within three months of its being issued. The agreement is that, if the Cabinet does not follow the Council’s advice, it must explain why not.
What role do the Crown members of the Council play?
Those members of the Council appointed by the Crown are independent experts. They are appointed by the Queen at the Cabinet’s proposal, but they do not represent the government. They are not obliged to consult with the government or act in accordance with the government's instructions. Their duty is to serve the public interest. Their role also involves seeking compromises when employers and employees are unable to reach consensus. The individuals who make up the group of Crown members are selected because they represent the most important political movements and scholarly or scientific disciplines.
Is the Council a government body?
No, the Council is not a government body. It is financed from fees paid by all businesses in the Netherlands to the Chambers of Commerce. This method of financing is based on the idea that businesses are in fact a partnership between employers and employees. The size of the fee depends on the size and the type of business (legal form).
The Council’s autonomy is enshrined in the Industrial Organisation Act ( Wet op de bedrijfsorganisatie ). The Act states that the Council is responsible not only for ensuring the smooth functioning of commerce and industry but also for promoting the general interest.
Does the Council provide funding?
The Council does not provide any funding. It does subsidise the costs of a number of institutions, i.e.:
- the Labour Foundation ( Stichting van de Arbeid );
- provincial advisory and consultation bodies;
- the Foundation for Annual Reporting (Stichting voor de Jaarverslaggeving).
The Labour Foundation receives 75 percent of its funding from the Council and the rest from the national employers’ federations and trade union confederations.
Fifty percent of the budget of the provincial advisory and consultation bodies is covered by the Council, up to a maximum of 39,900 euros per body per annum.
Two-thirds of the budget of the Foundation for Annual Reporting is subsidised by the Council. Together, these subsidies account for 10 percent of the Council’s expenses.