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Katz: My move saved people from running hungry on the streets, satisfied people

The finance minister reveals the amount of grants in the incentive program for employers to get out of the corona crisis, insists that the Knesset policy was necessary and may even be extended, claims that the assistance provided by the government saved hundreds of thousands of businesses and promises no tax increases in 2021. "I did what was necessary "M"

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• Israel Katz

Sonia Gorodisky

Thursday, March 18, 2021, 11:30 p.m.

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In the video: Personal elections - Tal Shalev in a conversation with Minister Israel Katz (Photo: Niv Aharonson)

In the weeks leading up to the election, Finance Minister Israel Katz is touring the country.

Among restaurants and cafes trying to recover from the long closure and negative highs in deficit and unemployment, Katz claims he is receiving positive reviews and appreciation, and dismisses criticism of managing the economic crisis.

"Suspicion of the government is replaced by appreciation," he says.

In an interview with Walla!

He outlines the next steps he will try to take in order to accelerate the return of the economy, insists that the grant program for every citizen will be realized, says that the Knesset policy has saved more than a million people from poverty - and attacks the chairman Yesh Atid Yair Lapid The economic crisis.

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Dismisses criticism.

Katz (Photo: Danny Shem Tov, Knesset Spokeswoman)

Last week, the Knesset's Labor and Welfare Committee approved the grants for the veteran unemployed who have been in the Knesset for more than 130 days. Katz (Likud) described the plan as "not serious," and the person who is going to carry it out, Social Security Director General Meir Spiegler, claimed that it was a cumbersome plan that would not hit the target.

The grants are far from what you and the Prime Minister promised - full unemployment benefits for two months

.

"This is not accurate.

The unemployed over 130 days who return to work at a lower wage will receive an average wage increase of about NIS 9,000 in four months. "

Will these grants encourage the unemployed to return to the employment circle?

" They will encourage, because the economy has also opened up.

Contrary to what is distributed, the vast majority of the unemployed return to work as soon as the business opens.

By now, I estimate that close to 300,000 unemployed have returned to work.

The employment service talks about 200,000, but they are not updated there.

The vast majority return.

This was also the case in previous closures.

There are about 200,000 unemployed who were ejected in the first closure and businesses have learned to manage without them, have shrunk regularly - these are the veteran unemployed who may become chronic.

It's a challenge all over the world, and here too. "

So what do you do?

" I put out a professional training program that works very well and luckily I built a very limited directorate in the Ministry of Finance.

There are already trainings that have been launched, which bring the people who worked low wages to be high wages, or discharged soldiers who put them in the labor force.

"" The second thing, these are the incentives for returning workers and employers.

I agreed with the ministry and in a few days the plan of incentives will be published for employers who will absorb veteran unemployed, these are amounts of about NIS 9,000-7,000 per employee, it is not yet closed for good.

This will encourage employers to create jobs.

Both the incentives for employees and employers - this is a double movement that will bring a lot of unemployed back to work.

So this is the solution, we will not throw them into the streets. "

"The aid prevented the collapse of hundreds of thousands of businesses."

Restaurant in Netanya, November (Photo: Reuven Castro)

"If the need arises, we will extend the period of unemployment to those who will not be able to return to work. We have set an index of declining unemployment to 7.5%, beyond which we will return to the previous rules," he said. Declares.

He said, "When I got the job there were 1.2 million unemployed. I think that move saved people from running hungry on the streets. Aid to the business sector prevented a real collapse of hundreds of thousands of businesses. If you hung out with me, you would hear people's responses - 'You saved us.'

But after the aid stops the business may collapse

.

"That's not true.

I meet the business owners, the help helped them get organized.

By the way, in 2020 fewer businesses were closed than in 2019 because of this assistance.

This is the real figure.

"It is true that we also wanted to give an opening grant (" start-up grant "for businesses exiting the third closure promised under the economic plan - SG) and this was denied to us by the legal system and Bnei Gantz and all that.

"We were told at first you did not give, after that it turned out that we gave, so they say that if you stop giving, they will collapse. Every time you find something. Come on. Tell me you do not help business, after that you do help, but there is a deficit. Because the money went to aid. "

More on Walla!

Better to Stay at Home: Why the Finance Plan for the Unemployed is likely to fail

To the full article

What will happen to the grants to citizens, the promise will be fulfilled?

"We will do it after the election. This grant also makes sense (a grant for every citizen up to the seventh decile - SG).

Everything opens up, you need an incentive to increase consumption.

These are citizens who earn up to about 13-12 thousand gross per month, the middle class.

The U.S. is giving $ 1,400 to a citizen now. All the grants we have offered and all the assistance, including the IDF, are right things.

I also changed the criteria for getting business assistance, there were debates about it with Meridor and other officials, and really aid is now flowing and not as it was before.

" Quiet in the Ministry of Finance and I brought silence to the streets, there are no demonstrations and the streets are empty.

Now that I walk around a lot, I also understand why, because people are happy.

So I did what was required in difficult conditions with the backing of the Prime Minister.

When I took over as prime minister, he told me that when he was finance minister with Arik Sharon, Sharon told him to manage on his own.

I told the prime minister - I understand, I will manage on my own. "

"We will do it after the election."

The first grant program (Photo: Government Press Office, Kobi Gideon)

On Monday, Katz posted in a Facebook post that he reprimanded the director of the Tax Authority, Eran Yaakov, for exceeding his powers in changing the terms of receiving the grants.

The statement drew criticism that Yaakov acted in accordance with the law, while Katz deliberately reduced the number of officials.

"Then he will brief better," Katz clarified his position.

"The truth is simple - he made a change without consent contrary to the policy we decided on, that the grants would be given according to bi-monthly VAT reports, to facilitate and expedite the receipt of the grants." According to Katz, "he and his system changed that and obliged the self-employed and business owners In submitting an annual report as a condition for submitting the grant.

This is something that is not true, it is burdensome.

It was important for the reprimand to be public, in public transparency, so that he knew we had not changed the policy and things would be corrected, "

Katz said this week. Millions of shekels to the state as a result of the amendment of the law.

The budget deficit is at an all-time high.

See you soon raising taxes?

"Absolutely not. Absolutely not. I promised that in 2020 there will be no tax increases, I also promised that in 2021 there will be no. I do not believe in tax increases, I believe in lowering taxes and maintaining and creating income through growth."

You were supposed to approve the increase in investment in infrastructure, where is it stuck?

"This is a scandal. It should have been approved by the Finance Committee, the ombudsman also approved it.

But Lapid's representative does not approve of it being put to a vote in committee.

This is a very serious thing.

It has nothing to do with elections but with the ability of all developers to prepare for project promotion, to form partnerships, to close funding.

This is exactly what we need to accelerate the economy.

"" Today, insurance funds, pensions and others manage over two trillion shekels and invest abroad, because it is not profitable for them in Israel, and I am going to change that - to increase the scope of activity allowed in Israel .And then through legislation they are given tax benefits as there are in real estate.

The public coffers will benefit from this, the funds will benefit from this, and the economy will also benefit from this. This is an amazing thing. One hundred billion shekels of investment in infrastructure.

" Was not even tied to budget.

In the past, I have come to an understanding with Lapid that if there are plans related to Corona or the interest of the economy, he will support their promotion.

Now because of the election and the uproar it is stuck.

"The Corona is about to end, the economy is back and it needs growth engines, and this is one of the most powerful engines."

"Because of the election plans are stuck."

Lapid (Photo: Knesset Channel, Shmulik Grossman, Knesset Spokeswoman)

Housing prices are soaring, and the government seems to have completely neglected the issue

.

"Housing prices in Israel skyrocketed even before I took office, despite measures to curb demand and collect taxes, so there was less construction and prices went up. I do not believe in reducing demand. I lowered the purchase tax, and I will continue to do such things. I believe in construction, increasing supply, like "I did in infrastructure, where the situation was more serious more than ten years ago. I opened the field to full competition, they set up infrastructure here on an unprecedented scale."

"Regarding housing prices - much more must be built. First of all the person who runs it is the Ministry of Housing, according to the agreements they took the housing headquarters to them. But there are some laws in the Arrangements Law that will help speed up construction. First of all - an upgraded urban renewal plan. "There is also a section called self-licensing that will allow contractors and developers to move forward without too much bureaucracy."

"All of these are in the Arrangements Law. Once the government is formed and the budget is approved, these laws will pass as well. If more credit is given to contractors, they will be given more credit, if we need to help workers we will help workers. I believe in increasing supply, and when supply is wide enough. ".

What grade would you give yourself as Minister of Finance?

(Laughs) "I will not give myself a grade. I do the right things, and I see how it works. Those who give us these grades are credit rating companies, the International Monetary Fund, the OECD chief economist who said you will learn from Israel about vaccines and also about economics. "In fact, Israel has suffered less than other countries, in the top three for the positive. It's an amazing thing that GDP fell by only 2.4%, much less than forecast."

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