Finance Minister Bezalel Smotrich.
Reduced the increase in price to 9%, but who will pay the difference? (Photo: Image processing, Niv Aaronson, Jonathan Zindel Flash 90)
The prices of the milk products that are under supervision will be 9% more expensive tomorrow, this after
the Minister of Finance, Bezalel Smotrich
, turned to
the Minister of Agriculture, Avi Dichter,
and the two jointly signed an order that will increase the price of the supervised milk products by only 9%, with the remaining amount which was agreed upon, and for which the prices were supposed to jump by 16%, will be divided into payments in agreement with the dairies.
As one dives deeper into the decision, it seems that what stands behind the unusual step, in which the state actually unilaterally violates the agreement signed between the Treasury and the dairies, is a political need to present proof of the war on the cost of living and less real thought for the citizen's pocket.
First, because
the price will increase, even if at a more moderate rate
than planned.
That is: precisely on the eve of Shavuot, the public will be forced to pay dearly for the supervised debt products.
Second, because
The state will also have to return the difference to the dairies, in a way that will probably be at the expense of the public
, either through additional costs or in an indirect way.
Thirdly, as we learned from the experience with Terra (owned by the central company CBC), which stopped producing milk in bags and butter, leaving Tnuva in fact as the exclusive producer in the field (which created a shortage from time to time), there is a danger that dairies will stop producing products that are under supervision, or at least reduce the
scope
or the supply (for example, "enriched" milk instead of regular milk, flavored cheese, etc.).
The issue of rising prices was known since the outline between the Treasury and the dairies was agreed upon, during the days of the previous government, but the Treasury neglected to deal with the issue, even though the Minister of Finance promised right upon his arrival
All this before we mentioned the dairies' threat to go to the High Court, since on the face of it it appears that the ministers violated an express agreement signed with them
.
Chairman of the Economic Committee, MK David Bitan.
I don't understand the Treasury, I don't understand the ultra-Orthodox (Photo: Knesset Spokesperson, Noam Moskovitz)
"I don't understand the ultra-orthodox"
In fact, the only body required to fight the increase was the Knesset's Economic Committee, headed by Smotrich's coalition partner, MK David Bitan. The committee proposed to reward the dairy farms with subsidies, instead of the automatic mechanism that was agreed upon. Following this, MK Bitan announced today Because the committee will meet tomorrow to discuss the issue:
"The Minister of Finance promised me that he would cut the increase in half and he did so, but nevertheless I hear that in June the prices will rise again in the second half and this is not serious.
What the Treasury should do is give the dairies aid of NIS 100 million, As they do with the price of fuel, the treasury gave a tax discount and absorbed the increase, until the price starts to drop globally. I understand that this means that there will soon be a 5 percent drop in inputs."
Bitan added: "I don't understand their ultra-Orthodox families with children and they don't care if the price of milk will be high or not. They can exert political pressure on that too, not to mention the fact that we lowered the tax on sugary drinks and Coca-Cola raised the price, so we also lost tax and we also paid more. I suggest the ultra-Orthodox come to their senses and take care of the cost of living as well"
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milk
Cost of living
Bezalel Smotrich
David Bitan
