Dear Colleague,
A number of individual diamantaires have introduced a lawsuit against the Intern Compensation Fund. The BVGD wishes to state clearly that it is not one of the parties of the lawsuit, but is supportive.
The following points should be clarified:
1. The position of the BVGD is that we are supportive of diamond manufacturing in Belgium but that the Industry's course of actions is only hurting their own base.
2. It is obvious that this misguided plan has proven its ineffectiveness, even worse it has accelerated the exodus of manufacturing jobs.
3. Regrettably, by not revealing their accounts, by hiding their actions, by passing a Royal Decree without informing the market, the people from the Industry have damaged relations with those willing to help them.
4. The Intern Compensation Fund is rumoured to have at least 65 million euro.
4.7 million more were added in 2007 while only 1.7 million was spent. An extra 3 million was thus uselessly siphoned from the market to be frozen in an unproductive (for the diamond trade) bank account.
5. If 1.7 million euro was all that was needed, the interest alone from the capital they have was more than enough to cover their needs.
6. So, the "social plan" is uncovered for what it really is: a taxation of diamond companies that has no economic justification whatsoever. This hurts the business climate and the future of Antwerp.
7. In order for Antwerp to be dynamic and prosperous, those illegal and unjustified practices have to stop. The “social plan” should be scrapped without delay.
8. The BVGD is ready to examine with our colleagues from the Industry their needs and resources as well as better methods for encouraging diamond manufacturing in Antwerp using market-efficient techniques that do not hurt the diamond trade and the business environment of Antwerp.
Best regards,
Andre Gumuchdjian
President of the Board of Directors of BVGD
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