report of the managing board
introduction
In the course of years the annual report of the open company has
changed character. From an explanation of the result it has
developed into a report that indicates, inter alia, the social framework
within which the company maps out its policy.
Thus the annual report has grown from a historic review the woe
and weal of the company during the past year - into a document in
which the board sets out the policy that should be pursued in the
given field of social forces. In doing so the entrepreneur is more or
less expected to give his opinion to all those who may exercise
influence on these external conditions.
An annual report, however, is primarily written for those who are
interested in the business results of the company. They are, besides
its own staff first of all, the shareholders as providers of risk
bearing capital and those who consider becoming shareholders;
besides, the providers of loan capital, notably our mortgage-bond-
holders, occupy an important position in our credit business.
In our annual reports we have for many years called attention to
those social developments which are of influence in determining our
policy. Within this framework we have raised many subjects, such
as the rent and subsidy policies, the value of real estate, inflation and
the impact of the money and capital market on business results.
But above all we have tried to make it clear which course we follow.
In this connection we pointed out in our previous annual report
that the problems with which Dutch economy is confronted at the
moment are not only the result of a cyclical set-back, but bear a
structural character on important points. Notably in the field of
employment it became clear that if economic conditions should
improve, no essential decrease in the rate of unemployment should
be expected. The year 1976 merely saw the rate of unemployment
creep up even further, with a certain stabilization during the last
few months.
The Government tried to tackle the economic problems in two
fields. By issuing wage measures for the whole of the year 1976
they wanted to try to force back the high rate of inflation. On the
other hand, they considered it their duty to fight unemployment by
planning employment programmes. These efforts resulted in in
flation being reduced to a level of below 9% in 1976. However,
compared with our chief trading partner, the German Federal
Republic, this rate is still too high.
We take the view that fighting inflation should have priority in the
Government's efforts to restore the Dutch economy to a healthy
