Dutch present compensation package for earthquake-prone Groningen province

Dutch present compensation package for earthquake-prone Groningen province | INFBusiness.com

Various new measures to compensate the province of Groningen, which has been struggling with the fallout of local gas extraction, were announced by Prime Minister Mark Rutte and State Secretary for Mining Hans Vijlbrief on Tuesday.

Annual investments into damage compensation, the construction of new housing, and tackling energy poverty were among the measures announced by Rutte and Vijlbrief.

The Groningen gas field was perceived as a potential alternative to Russian gas supplies at the height of the EU energy crisis in the autumn of last year.

Despite the gas fields once producing more than 40 million cubic metres (bcm) of gas annually – equivalent to 10% of the EU’s consumption – the Dutch government decided to cap production at the Groningen gas fields at 2.8 bcm for 2023 to limit seismic risks, with exceptions only for unforeseen circumstances or extreme weather.

“It’s all about damage repair and reinforcement before anything else – that needs to be much faster, much less judicial and much less bureaucratic. […] It’s about investing in people’s mental health, in public services and in the social strength of [the] city and surrounding area,” Rutte stated in a speech regarding the compensation package.

“And it is about a stronger and sustainable economy and employment. In short, then, it is about future prospects for the people who live here,” he added.

In 30 years, the government intends to invest €22 billion into the region. The measures include tackling energy poverty by preparing homes to be gas-free, investing in hydrogen production, and increasing the region’s agricultural output.

The government also committed to raising employment and school dropout rates to the national average and installing so-called “earthquake coaches” to help residents with earthquake-related problems, especially regarding mental health.

The package comes as a response to the results of a parliamentary inquiry published back in February. The inquiry concluded that the Dutch state and oil companies neglected the long-term risks of gas extraction in the region due to its economic profitability.

“The commission of inquiry is […] right to say that the inhabitants of the earthquake area in Groningen and North Drenthe have been let down for decades, that they have not been heard enough and that their interests have been subordinated to the financial interests of the Netherlands,” said Rutte.

However, both local and national politicians showcased scepticism regarding the government’s promises.

“I have serious doubts that this debt of honour can be repaid with these measures. Looking seriously and critically at the package, I don’t know if you eliminate all the differences and uncertainties,” said King’s Commissioner for Groningen, René Paas (CDA).

Socialist party MP Sandra Beckerman called the package “an insult”, pointing out that gas extraction in Groningen had generated profits of roughly €400 billion.

(Benedikt Stöckl | EURACTIV.com)

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