Dia 1

1
(No Transcript)
2

• Equilibrium
• restore balance between expenses and income
• Contribution of WRO to the project market
• at the FLAPP final conference
• Zaragoza
• June 13 and 14
• 2007
• Waterboard Roer en Overmaas (WRO)
• Sittard
• The Netherlands
• Drs. J.H.J. Lutgens RA RI

3
LOGO EAST ProgrammeVNG International and
Ministry of Foreign affairs

• Focus of LOGO East projects
• Strengthening the capacity of regional and local
  governments of Romania, Turkey,Ukraine,Serbia and
  Montenegro by the end 2007.
• Increasing the number and quality of partnerships
  between regional and local governments in the
  Netherlands and Romania, Turkey,Ukraine, Serbia
  and Montenegro by the end of 2007

4
LOGO East Equilibrium project partners

• Waterboard Roer and Overmaas
• (WRO)
• Mr. Ing. Jac in den Kleef, deputy director
• Mr. Drs. Hans Lutgens, chartered
  accountant/concerncontroller
• Waterboard Tranz Tisza Region Environment and
  Water
• (TTREW)
• Mr. Maszlo Kothay, general director
• Mr. Dr. Sabolcz Toth, chief legal department
• Waterboard Somes Tisa Water Division
• (STWD)
• Mr. Marius Minzat, general director
• Mr. Aurel Filip, financial director

5
Cooperation among Dutch , Hungarian and Romanian
Waterboard

• Problem
• In the near future the Romanian Waterboard will
  have
• no sufficient durable income to maintain dykes in
• a proper condition to prevent flood.
• Fixed solution
• Create durable income ? taxes.
• Project objective
• Design an applicable blueprint of a tax system
  for the
• Romanian Waterboard based on the best practices
  in
• The Netherlands (decentralized tax system) and in
• Hungary (centralized tax system).

6
Project approach
7
The Netherlands
WRO ?
8
Netherlands the drain of Europe

• 25 below sea level
• gt50 overflow without dykes, dams and embankments

• Fighting water
• Polders, dykes, pumps
• Amersfoort at Sea
• Inconveniences of waterPolders below sea level

WRO?
9
Hansje Brinker
10
Deltawerken
11
The Prof. Dr. Ir. P. Vellinga ReportSprint to
2015

• Summary (1)
• More than 50 of the existing sea and river
  protection system does not comply with the
  protection standards (1960)
• 2008 2015 necessary additional investments
  3,2 billion.
• Actual developments
• rise of sea level (climat change)
• economic growth
• indicate that additional investments are
  necessary during 2015 -2025 9 billion to
  become compliant with the actual standards.?
  Formula of Van Danzig and Eijgenraam(2005/2006).

12
The Prof. Dr. Ir. P. Vellinga ReportSprint to
2015

• Summary (2)
• Van Danzig and Eijgenraam formula
• Reduction in p(flood) X (damage and
  losses)
• equals
• necessary expenses to reduce prabability
  
• Financing investments and maintenance by
• Central government
• Local Government (waterboards)
• Privat financing

13
The Prof. Dr. Ir. P. Vellinga ReportSprint to
2015

• Evaluation of financing alternatives
• Evaluation viewpoints
• Effectiveness
• Efficiency
• Justice
• Sustainability
• Score
• Central government 6.3
• Local Government 7.1 ?
• Privat 5.9

14
Evaluation grid tax systems (1)

• Viewpoints
• The benefit Principle
• The polluter pays principle
• The cost recovery principle
• The solidarity principle
• The legality principle
• The social principle
• The stability principle
• Others
• Complexity
• Democratic
• Transparancy
• Robust
• Costs

15
Evaluation grid tax systems (2)

• Comparison
• central government tax system
• ( Hungary)
• versus
• local government
• tax system
• ( The Netherlands)
• And the winner is

16
The local tax system

• Most important argumentation
• I. Most important and almost only mission of
  Waterboards flood protection
• reliable and durable financing of all necessary
  investments and maintenance costs
• no competition in allocating funds.
• II. The local tax system is more democratic than
  the centralized tax system.
• Conclusion
• Best tax practice ? the Local waterboard tax
  system.

17
(No Transcript)
18
Applicability of the Dutch Tax system

• Lutgens Policy Hypothesis ?
• Poster
• Countries is transition (like Romania) will step
  by step implement the decentralized tax system.
• More democratic
• Ensure financing necessary maintenance and
  investments
• Projects results will be applicable worldwide

19
Summer 2006
20
(No Transcript)
21
Grashoppers message to all the Equilibrium
projectmembers

• Create happy taxpayers

22
Discussion