New law will let Dutch gov’t force companies to produce for defense
The Dutch government is working on a new law that will allow it to compel “a small number of companies” to manufacture equipment for the armed forces in an “emergency.” The law also allows the government to requisition these companies’ stocks. The Cabinet wants to gain more control over the Dutch defense industry’s production capacity and stock, AD reports.
CDA Minister Heleen Herbert of Economic Affairs will submit the bill to the Council of State for advice on Wednesday. She told the newspaper that companies won’t be compelled right off. The government will first ask for voluntary help for Defense. Only if that proves insufficient will the government switch to force.
Herbert also stressed that the law will only be deployed in an “emergency situation” and only applies to a limited number of companies. She said that the companies in question are already aware of the law, and the Cabinet has already made agreements with them regarding compensation.
“If there is a war situation, this law provides the possibility to designate a few Dutch companies for production,” she said. The companies involved will not be made public. “I think most people will understand why not: this is part of what keeps you safe.” The list may also change “over time” as new companies are added to it.
According to the Minister, it mostly involves companies that make items “that are already recognized as something needed in a war situation.” But war-adjacent companies, like drugstores and bandage makers, could also be designated. “That is not inconceivable,” Herbert said. “But it is mainly companies that are already producing for Defense.”
The law will also give certain defense companies in the Netherlands a kind of seal of approval, making it easier for them to secure orders from abroad, Herbert said. “We would then stamp the fact that you are a solid company. That has been thoroughly screened, and it is clear who is pulling the strings.”
Herbert hopes to implement the law sometime next year.
