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What happened to the "flag reform"?

The big surprise of the Arrangements Act

Raising the retirement age and congestion fees on the roads - yes, raising the property tax for housing and fighting regulation - no.

The new draft of the Arrangements Law is thinner - and at least at the moment mainly reflects the chaos prevailing in the Bennett government, which is unable to implement, for the time being, what it defined just a week ago as the "flagship reform"

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• Naftali Bennett

• Avigdor Lieberman

• Arrangements Law

• State budget

Sonia Gorodisky

Friday, 23 July 2021, 09:54 Updated: 10:34

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In the middle of Thursday night, the Ministry of Finance spokeswoman distributed the draft structural changes accompanying the economic plan for 2021 and 2022 (the Arrangements Law). These are decision-making proposals that are expected to be discussed at the cabinet meeting to approve the state budget on August 1, and until then it is available for public comment on the Ministry of Finance website. https://bit.ly/3kTGfLs

The Arrangements Law booklet contains 45 economic reforms that the Ministry of Finance wants to start and promote in the next two years. Important reforms to the economy can be found in it, such as raising the retirement age and integrating populations in the employment market, promoting the metro law and even the proposal that provoked a large public protest of imposing congestion charges at the entrance to Gush Dan.

In addition, the draft includes some other interesting reforms such as moving to green energy, promoting innovation and encouraging the growth of the high-tech industry, reducing the cost of living by removing import barriers, increasing housing supply, including accelerating urban renewal procedures, exporting medical cannabis, administrative flexibility in education And more.

However, this is a thinner booklet than the previous draft that was leaked to the media more than a week ago, this is because some of the reforms did not go into it. For example, you will not find in it the kosher reform (which also provoked opposition from some of the rabbis of religious Zionism, Bennett's original base, although mainly for political and non-halakhic reasons), raising residential property tax rates, which Lieberman described as essential and the financial stability reform of hospitals was not included .

And what about the "flagship economic reform for businesses in Israel" as defined by Prime Minister Bennett - the reform to reduce regulation?

Where it is supposed to appear in the booklet, it reads: "The draft decision-making proposal regarding a national plan to improve regulation will be distributed to the public for comment in the coming days."

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Bennett, Lieberman and Saar present the plan to reduce regulation.

This time, their struggle is not with the opposition, but with government ministers who will not easily part with the power they have today (Photo: Official website, Amit Shabi)

What happened to the "flag reform"?

The Arrangements Law is used by many politicians to promote reforms that are considered particularly cumbersome to pass in the Knesset. Some of the reforms are introduced as a "goat" that will be used for bargaining (for example, the road congestion fee that Lieberman has already hinted he will not insist on). But in the case of the reform to reduce regulation, this is not a "goat."

Just two weeks ago, she was introduced at the first joint press conference of Prime Minister Naftali Bennett, Finance Minister Avigdor Lieberman and Justice Minister Gideon Saar. The attorney general said even then that he supported the reform.

The Ministry of Finance sought to promote the reform under the Arrangements Act, the most appropriate place for such a reform, which provokes much opposition from various government ministries - this is because their role as sole regulators in their field will be undermined - and all steps will be overseen by a new body. .

Last Tuesday, there was a heated debate that lasted 12 hours on the issue of the "swinging" reforms that were included in the Arrangements Law, but there is a legal difficulty in advancing them.

Hearing attended by the Attorney General, the Budget Division and the Bureau of Justice of the Ministry of Finance. During the discussion, many criticisms were made of senior officials in several ministries complained that his partner did not reduce the process of formulating regulatory reform.

Therefore, the Attorney General decided to set another hearing on the reform of the reduction Mandelblit supports advancing the reform, but will have to decide whether the proposal is "ripe" to be included in the forthcoming Arrangements Law, and if not, how it can be promoted outside its framework. .

Dr. Ron Tomer, President of the Manufacturers' Association, addressed the Ombudsman in a scathing letter (Photo: Mark Israel Salem)

The excess cost of regulation: NIS 75 billion

The president of the Manufacturers' Association and the chairman of the presidency of employers and businesses, Dr. Ron Tomer, sent a firm letter to Attorney General Avichai Mandelblit last night, in which he clarified that he expects to work immediately to return the regulatory reform to the Arrangements Law, which is one of the government's guidelines. "

Despite the natural reluctance of the regulators who have brought us to the current situation, the government plan presented (after a long and comprehensive staff work) to improve regulatory policy and reduce the regulatory burden must be implemented immediately.

The abolition of regulatory treatment will prevent the economy from emerging from the crisis.

The excess cost of regulation according to the Ministry of Finance is NIS 75 billion, and especially in light of the deep crisis in the Israeli economy in the face of the outbreak of the corona crisis, it is of paramount importance to reduce this regulation to improve Israeli competitiveness, develop the private sector and business. the standard of living and wages of all citizens, "reads the appeal.

Thus it seems that Naftali Bennett learned just from personal experience that the struggle in opposition to the plenum is not everything - the important reforms he wanted to promote, he will have to force first of all the ministers in his government. these in turn will not rush Give up powers so quickly that usually come with the option to appoint many appointments on their side.

President of the Association of Chambers of Commerce, Adv. Uriel Lin: "The regulator strives to grow and suck more resources from the state budget" (Photo: Mark Israel Salem)

"Legal advisers must not be allowed to run the country"

If the Manufacturers' Association's letter to the Attorney General seems harsh, then it seems that the response of Adv. Let the legal advisers run the country. Not because it is right to belittle law-abiding people, but because you see the need to advance national missions built on a narrow view of the needs of the state and society.

"Lynn added that" there is no doubt, we are a state of law and the law must be upheld. However, the development of an approach that achieves national and economic goals must be done beyond law enforcement, according to the worldview of the legal advisers, is wrong.

They in fact strive to preserve the unlimited power of the statutory regulator and make it one who can shape the patterns of society and the economy, without balance and while ignoring the need to achieve overarching goals of economic growth and job creation.

To explain the need for additional layers of regulation, the regulator is able to treat the consumer as an infantile lacking discretion.

”“ The regulator in many cases constantly strives to produce more regulation to justify its existence.

It aims to grow and suck for himself more resources from the state budget. "

" Where were the legal advisors as regulator Israel did not commit the Government Decision 2118 from October 2014, the economy suffered from an excess of regulation is also a time when small businesses struggled to survive in the era of sources. "

" Approach to legal counsel implies negation The power from the government to set national goals and actually run the country. "Lynn concluded.

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