Histadrut (General Federation of Labor in Israel) chairman Ofer Eini responded cautiously to the economic plan presented today by the prime minister and the minister of finance. "The true test of the government will be in the result. We intend to maintain intensive dialogue, in the "Round Table" forum, to arrive at an agreed economic plan in the next two to three weeks to minimize the waves of layoffs, as was agreed yesterday with the minister of finance. The workers in danger of being laid off and the public as a whole are now closely examining the seriousness of the government's intentions. I hope the government will meet expectations and take advantage of the opportunity that has arisen, in order to achieve a good outcome in the form of an agreed economic plan, for the benefit of those workers and the entire economy."
"What was presented was only the main points of the economic plan. The details will be formulated, as agreed, over two to three weeks in partnership with the employers and the Hidstadrut. Netanyahu and Steinitz touched on the right points," said Manufacturers Association president Shraga Brosh.
"The economic plan is good and goes in the right direction, but some changes need to be introduced into it," said Federation of Israeli Chambers of Commerce president Uriel Lynn, adding that expanding negative income tax to the whole country was a mistake.
Opposition members of Knesset, on the other hand, chose to attack the plan. "At the center of the plan is making the rich richer, a scandalous tax reduction in tax rates for the wealthiest and for the big corporations, at the expense of the state budget and social services, said Dov Hanin (Hadash) today. According to him, Netanyahu's focus on encouraging exporters is a mistaken concept. "Exports already account for 50% of Israel's GDP, and the ability to expand exports beyond that in conditions of a global crisis is in grave doubt. The focus should have been on encouraging production for the needs of the Israeli economy, and on expanding social and public services health, education, and community. Expanding social services could generate additional jobs and offer a real way of coping with widening unemployment," Hanin said.
Kadima MKs said the plan was full of slogans and empty of content, designed to make the public forget the waste of billions of shekels in forming the coalition.
Ophir Pines-Paz of the Labor Party, who is at least nominally part of the coalition, said, "Instead of a real emergency plan, Netanyahu and Steinitz have presented a plan devoid of vision, a jumble of words and hot air. The plan is an insult to the public's intelligence and a pretence at action intended to deceive the public, the employers and the workers."
Pines-Paz added, "The biggest and most wasteful government in Israel's history, with thirty ministers and nine deputy ministers, has impudently decided to cut the health and education budgets and freeze salaries. Where is the personal example?"
Published by Globes [online], Israel business news - www.globes.co.il - on April 23, 2009
© Copyright of Globes Publisher Itonut (1983) Ltd. 2009