30. Provisions

Provision for reorganisation costs

The purpose of the provision for reorganisation costs is to cover the costs arising from reorganisation measures. Most of the provision is needed for redundancy schemes, bridging payments and the redeployment of staff whose jobs have been eliminated as a result of reorganisations. Important starting points for determining the provisions for reorganisation costs at year-end 2023 and 2022 in the Netherlands are:

• the collective labour agreement arrangements covering the period 1 July 2022 to 1 January 2024;

• estimates with respect to advancement and outflow during the reorganisation.

Provision for soil remediation

The provision for soil remediation is for managing and remedying environmental damage. The provision is calculated using an average discount rate of 2.5% (2022: 2.5%). A change in estimate was applied in 2023; for an explanation, see the general notes.

Provision for the continued payment of unsocial hours during holidays

The Group has created a provision for the claimed irregular hours allowance for days’ leave over and above the statutory minimum. The legal proceedings with respect to this topic have not yet been completed in 2023. The release and withdrawal are related to the (expected) payments in respect of irregularity allowances during holidays. The provision is classified as current.

Provisions for Abellio Germany

In the insolvency proceedings regarding the former German holding Abellio GmbH, the trustee has reached agreement with the creditors and NS. The agreement will serve to settle the bankruptcy, a process that will take some time. The provision at 31 December 2023 has been aligned with the outcome of the proceedings and consists of a provision for guarantees and a provision for the insolvency plan. The provision for guarantees concerns part of the total guarantees issued as disclosed in note 33 of the financial statements.

Other provisions

Chromium-6

On 31 January 2019, the National Institute for Public Health and the Environment (RIVM) presented the results of an investigation into the use of Chromium-6 at the tROM reintegration project in Tilburg. In that project, between 2004 and 2011, people on unemployment benefits worked on trains belonging to NS and the Dutch Railway Museum at the then NedTrain workshop in Tilburg, which had been made available to third parties. RIVM carried out an investigation in which NS cooperated. An independent committee drew conclusions on the basis of the results of the investigation and formulated ad hoc recommendations. At the beginning of February 2019, the parties (municipality of Tilburg, NS and the Dutch Railway Museum) announced that they would come to an arrangement jointly and each on the basis of its own responsibility. NS had already provided for its share of the expected costs as at 31 December 2019 and updated this figure based on its understanding as at 30 December 2023. The movement in the provision is recognised in other operating expenses. Furthermore, the police carried out a criminal investigation on the instructions of the Public Prosecution Service, in which NedTrain was one of the suspects. Both NedTrain and the municipality of Tilburg were prosecuted for violating the Working Conditions Act (Arbeidsomstandighedenwet) and the Environmental Management Act (Wet milieubeheer). The court delivered judgement on 1 February 2023. With regard to the violation of the Working Conditions Act, the Court ruled that the Public Prosecution Service is barred from prosecuting because the alleged violation has expired. NedTrain has, however, been fined €250,000 for complicity in violation of the Environmental Management Act, which has been included in the results for 2022. NS has decided not to bring an appeal.

‘Other provisions’ include provisions for losses arising from accidents and fire, provisions for maintenance in connection with lease contracts in Germany, a management fee provision for the settlement of claims and proceedings by the management of Transport UK Group Ltd and provisions for staff-related matters.