THE HAGUE, 15/01/03 - The government has too many subsidy schemes to stimulate research and development by businesses, Finance State Secretary Steven van Eijck claimed yesterday. His economic affairs counterpart Joop Wijn backed him and announced drastic cuts.

A jungle of subsidy rulings leads small businesses in particular to lose track of the possibilities, so that the benefits remain restricted to large companies, Van Eijck said at a meeting of his Pim Fortuyn List (LPF) party. Christian democrat (CDA) Wijn shared his criticism that the subsidies are spread too thinly over too many projects, and said in a reaction that he was working on reducing the number of subsidy schemes from 67 to six.

To stimulate the economy, Van Eijck advocated long-term wage moderation to inflation level, a more stringent job disability benefit (WAO) system and an increased income difference between employees and those on benefit. He also insisted the government should ensure that the tax system no longer encouraged people to stop working from the age of 61.