Ministry of Agriculture concerns: withdrawal of policy supporting farmers at the expense of consumers • OECD report criticizes Israel for harm in competition • Minister of incoming economy: "I will take care of locals"

• Alon Schuster // Photo: Gideon Markovich

The agricultural sector celebrates the appointment of MK Alon Schuster (resilience to Israel) to the Minister of Agriculture, but officials in the ministry fear that Schuster may withdraw from reforms that have reduced the cost of living. 

"Alon Schuster is the right man in the right place, and we are confident that he will be able to restore agriculture to its proper place in Israeli society," the Israel Farmers Association said. Moshav Movement Secretary General Amit Yifrach addressed the Shuster directly: "This is a day lined up for rural and entire agriculture; A man who came from agriculture, from rural areas, from regional councils. ”Recently, Schuster expressed his desire to" increase blue and white egg production at the expense of imports "- this is when the head of veterinary service at the Department of Agriculture warned that increasing quotas, including old" trash cans, " There will be a "health hazard."

Data released by the Chief Economist at the Ministry of Finance show that there has been a sharp rise in food prices by a nominal rate of 25% over the past decade, and comparing food prices in Israel in terms of purchasing power has found that food prices in Israel are 25% higher than the OECD average. . At the same time, the OECD report criticizing Israel for using "market-distorting practices", mainly low competition, import restrictions, indirect subsidies and other government actions in favor of the alleged farmers, leading to an increase in the cost of living for the general public.  

"Transparency must be increased"

The organization called for Israel to "increase competition and transparency in the field of agricultural food. The high tariffs on chicken, mutton, eggs and some of the fruits and vegetables can be easily removed, and if necessary, they can be temporarily replaced with direct support for farmers." "Our interest," which promotes the adoption of a free trade policy, states: "The new Minister of Agriculture has a duty to prevent recurrence of basic consumer goods by eliminating production boards and opening up the market to competition and imports. The civil interest requires this." 

Meanwhile, incoming Economy Minister MK Amir Peretz plans to introduce "flexible unemployment benefits", which will allow those who have paid a significant reduction to continue receiving partial unemployment benefits. This is an intervention that will encourage employers to lower wages for workers returning from the USSR. 

In addition, he announced the promotion of encouraging local industries, suggesting the reintroduction of the cement monopoly by imposing the levy tax on imports and eliminating personal import tax benefits.