HRD Task Force President: No Nationalization Plans

At a presentation to the Board of the HRD by the president of the task force commissioned to develop a new structure for the organization, board members were informed that while certain aspects of the proposal made by the group are negotiable, the rest are ‘hard coded’ and not open for discussion (see IDEX Online report here).

Before going into the details of the proposal, Dr Brice De Ruyver, president of the task group, took the opportunity to dispel rumors that the government is considering nationalizing HRD or take control of its assets.

According to the proposal, six of the twelve members of the new board will represent diamond traders: big, medium and small companies, defined by annual turnover. De Ruyver rejected calls at the meeting that representation will be based on type of business – rough and polished dealers as is today – but was open to discuss the cut off point for each size category.

Currently size is defined as companies with turnover exceeding $100 million per annum; companies with turnover between $30 million to $100 million; and companies with a turnover below $30 million.

Another seat, planned to be reserved for a bank representative, could possibly be given to the Antwerp bourses, raising the number of their seats to three, in which case the formation of a consultation commission with the banks was suggested by De Ruyver.

Alternatively, the seat can be offered to the producers (diamond miners) who are members of the current HRD Board but were not included in the newly suggested structure. De Ruyver expressed a preference to giving the seat to the bourses and form another consultation commission to work with the producers.

One seat will be given to the cutting industry and another to the two unions. The 12th seat is suggested to be for an Independent figure that could help the trade with a unique experience. This final Board member must be unanimously nominated by the other 11 members.

According to the plan, two new companies will be formed. One of them, HRD Publiek, will be the organization representing the interests of the Antwerp diamond industry. HRD Publiek, said De Ruyver, will have a representative from each registered diamond company or diamond trader as members. This will ensure that all future decisions will be made jointly by all companies.

The presentation was concluded, after a Q&A, with a stern warning that the government wants a representative partner, but if the restructuring plan is rejected, government will independently chose through whom to negotiate with the diamond industry.