Prime Minister Benjamin Netanyahu opposes raising the minimum wage. Although he has declined to comment publicly on the issue, en route to Paris, where he will attend Israel's accession ceremony to the OECD, he told "Globes" today, "I will express my opinion in the clearest way at the next cabinet meeting that discusses the issue. We should be very cautious."
Netanyahu reportedly opposes the private member's bill by MK Amir Peretz (Labor) to raise the minimum wage to NIS 4,600, and he will torpedo the measure. The ministerial legislative committee approved the bill last Sunday.
The ranks against Peretz include Minister of Finance Yuval Steinitz and Governor of the Bank of Israel Prof. Stanley Fischer. Netanyahu's aides say that raising the minimum wage is risky in times like these when markets are seesawing. They warned against political actions that would ultimately hurt the poor.
As for Israel's accession to the OECD, Netanyahu sees this as a triumph. "The world knows Israel as a developed market. Joining the club of developed countries will bring foreign investment to Israel, and will require us to comply with international standards and face constant comparison with other countries," he said.
At a press conference on the plane carrying him to Paris, Netanyahu expounded at length on what he calls the "growth triangle": transportation infrastructures, land, and planning. He expressed deep frustration at the bureaucracy, saying that any initiative that crossed two ministries became trapped between them and nothing got done. Only the prime minister can set objectives, move things forward, and execute decisions.
Netanyahu told his aides that he was emphasizing transport infrastructures in the Negev and Galilee, and that he was promoting a new expressway that would allow travel from Haifa to Tiberias in 20-30 minutes.
Netanyahu also opposes bills to limit executive salaries, which he believes should be dealt with through a comprehensive plan to deal with over-centralization in the economy and measures to block horizontal monopolies. He strongly cautions against drawing conclusions. He told his aides, "because of you are driven by populism, you paralyze the economy."
Netanyahu plans to tackle over-concentration in the private sector, which he believes greatly harms competition. He wants to target what he calls the horizontal monopolies that dominate the economy. Two such conglomerates are Nochi Dankner's IDB Holding Corp. Ltd. (TASE:IDBH) and Yitzhak Tshuva's Delek Group Ltd. (TASE: DLEKG).
Netanyahu said, "Over-concentration is a problem that does not photograph well, but Israel needs more reforms to foster competitiveness. I will deal with the problem of over-concentration in the private sector. One way of dealing with the problem is to prevent the control of non-financial corporations by financial institutions, which harms competitiveness and credit."
In response to a question by "Globes", Netanyahu said that there is a tight timetable. "Operative measures will be taken during the coming year, and if legislation is needed, there will be legislation."
Netanyahu told his aides that the tycoons were not his friends. It wouldn’t help them because he will not go easy on anybody. "I am not afraid of anybody," he said.
Published by Globes [online], Israel business news - www.globes-online.com - on May 27, 2010
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