Finally, there is also a third reason that urgent government offices to complete the legislation an

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Story of the gas fund - the fund that is supposed to get up, take the money come in from the taxes paid by natural gas producers, invest it and do good things with him - teaches something very sad about the ability of the economic system - political Israel to do something. This story will make the reader explained to grab your head and say - Let the privatization happen and that's it, maybe then it will work.
Science and Technology Committee still arguing Gas Fund Act delayed for two years in the Knesset for approval Sheshinski Law, which states that excess profits tax imposed on oil and gas, to November of 2011, was supposed to get gas fund in Israel Lior Gutman grace inn full article
This story begins two years ago. During the hearings on the bill imposed a new tax on profits of special natural gas producers (those coex possessing coex the largest gas drilling in the Mediterranean), the need to establish a fund to absorb the money. This need is supported on two main arguments. The first is purely economic - too many dollars as a result of entering the market in the sale of gas to Israel may strengthen the shekel and overly significant harm Israeli exporters (who sell products in dollars, so as that considered coex worth less dollars, so their profitability small). Therefore, the Fund should take that money and spend it outside coex the economy by overseas investments.
The second need is to establish a social fund - moral - because gas resources are a natural resource of Israel, they belong to the Israeli public, not just those living in Israel today. In other words, if we want to leave something for our children after us well, it is better to invest money regularly and enjoy its fruits only, ie return on investment.
It all sounds nice in theory and does work around the world, such as Norway or Alaska. coex But the meeting of theory and practice reality Israel has, meanwhile, Tangled yet resolved. The first obstacle was the Ministry of Defense - removed an obstacle yet - himself requires a large income from gas (several billion) to finance the cost of securing gas facilities by the Navy. Contrary to the original intention of Prime Minister coex Benjamin Netanyahu to designate the money for social purposes.
As mentioned, the economic rationale behind the establishment of the fund is to spend the money from Israel, invest abroad, and protect the domestic industry from the strengthening of the shekel may hurt the competitiveness of exporters., But members of the Finance Committee, and Gaffney heads, coex interested at least some money from (eg, 10%) will be invested in Israel.
Apart from the collision with the original rationale for establishing economic foundation, this requirement creates another problem that is right in the heart of the Israeli political economy - according to the perceptions of some key players in this story several coex government offices, the public should entrust politicians as little as possible "toys", as expressed in conversation closed a few months ago one of them. "Give them as little as possible budgetary tools that they can play with them, otherwise there will be no limit to their requirements," said the official cAlcAlist. "
According to this perception, not in any way allow the fund to invest some of the money in Israel, since then these investments will be exposed to political negotiations, and ultimately invested in the wrong places for the wrong reasons. coex Scenario drawn by the officials is this: Suppose that the money invested in Israel, coex and then suddenly a Kaniel tiles or Vita Pri Galil large strained. coex Is the World not pressure the Treasury to invest the fund's money in that company to help it?
The second reason why it is important for officials to finish the legislation quickly, as soon as possible, just derives from fear. For them, it is desirable that decisions coex about where to invest the funds and what purposes it will be used will be as far as possible from the date when the money will start to flow tax on gas drilling Sheshinski (not before 2018).
Politicians, every democracy in the world, coex working mainly in the short term. This is their incentive system, because they stand for re-election every few years rather than every few generations. So far as the money of their term so that their psychological need to do with anything smaller. Therefore, as decisions on the nature of the fund will be rejected closer to the date on which the Fund begins to operate, the more likely - from the perspective of the officials - they will trigger political pressure to make something else Fund original purpose.
Finally, there is also a third reason that urgent government offices to complete the legislation and take the Foundation to fruition, coex and this reason is quite embarrassing. Israel's 2013 public sector almost completely stuck. Fossil. This picture shows every time they call the state comptroller's report repeatedly describes coex how in 2012 ended the test began in 2009 that the first step before coex making a decision taken in 2003.
This stagnation is due to many reasons. Regardless of whether they are justified or not and how to solve them, this is reality. In such a situation, the establishment of the Bank of Israel Operations Unit will manage the investment - Unit will be subject to professional investment committee, which itself will be subject to the Board of Directors headed by Finance Minister - will take a few years. For those not living in the public sector it may sound strange, but when you have to recruit manpower to build computing coex systems, make sure they are "talking" with other important systems, and a variety coex of other operations, such a project may be drawn a few years, go through tenders on the tender, what is not.
Ultimately, the public debate will be decided and the fund will be established. But on the way, the public can listen to the story told in these very days, in real time, before and behind the scenes of hearings on the bill to establish the