An outside observer could get the impression that the Israeli Knesset was recently painted bright green. This week, for example, the Knesset won the “Green Globe” title, which was awarded by the environmental umbrella organization “Life and Environment.” The title was awarded to the Knesset for the “Green Knesset” project, in which it displayed “Environmental leadership that is inspirational to the public and other government entities.” The Knesset, believe it or not, is even promoting a tender to install solar panels on its roof in order to save energy.
In the same “green spirit,” various Knesset committees are marking “Environment Day” by discussing various important environmental topics. But if we filter out the PR noise and dig down deep, we find that there is much more illusion than actual strategic activity.
A cruel joke
Take, for example, an important topic such as reducing vehicle emissions during peak traffic hours on the roads by encouraging workers to commute via public transport. Tomorrow, the Economic Committee will discuss the matter under the heartwarming title of “Green commute - encouraging the use of public transport.” But those who shudder at the thought that they may need to trade the privilege of sitting their cars in traffic for some measly bus pass can calm down - this is just another layer of plaster covering a thick wall of indifference.
Encouraging workers to commute on public transport was first raised in the government more than fifteen years ago, and, in its last manifestation, the idea was launched in 2008 under the “Clean Air Law,” which the government passed. The law stated that the government was to approve a multi-year national plan to implement the law by 2012, in accordance with the Minister of Environmental Protection’s recommendations.
But only in August of last year, 20 months after the final date stipulated in the law, and after the High Court of Justice became involved, did the government approve the national multi-year plan. And even then, it turned out that the budget earmarked for its implementation turned the whole matter into a cruel joke. Of the NIS 650 million that then Minister of Environment Gilad Erdan demanded in 2011 for the law’s implementation, based on recommendations made by a public committee and team of experts (who determined that the program would yield the economy benefits amounting to NIS 10.1 billion), only NIS 140 million was approved. Not annually, but for the entire period of implementation - until 2018.
Under the same plan, which had shriveled overnight (and was passed two years late), it was determined that a team would be established that would make assessments and submit recommendations within 90 days for the implementation of “incentives for businesses to reduce the use of personal vehicles.” Among them were: “Cooperation between several employers to arrange transportation for workers, including rides from public transport to employment centers,” “ Cooperation with public transport operators in order to create travel arrangements that are convenient for workers,” and steps “to reduce the economic worthwhilenes of driving a car to work,” such as parking fees, congestion tax, and the like.
A lot of talk. And what was the budget designated by the government for all these important goals? NIS 40 million - for the entire period. In other words, NIS 8-10 million a year.
And now, some perspective: According to Ministry of Environmental Protection data, 62% of workers in Israel commute to work by car daily. Of them, some 320,000 drive company cars, which are given to them by the companies with the stated goal of using them to commute to and from work. These vehicles receive direct and indirect tax incentives for intensive use. These incentives include, among other things, unlimited fuel benefits, which are not included in the taxable “use value,” no tax deductibility cap on expenses for employers, and more. These tax benefits together have a total value of NIS 1.5 billion annually, and all this is meant to be countered through government disincentives to encourage “green commuting” with a total budget of less than NIS 10 million annually. A cruel joke.
It should be mentioned, in the defense of the Ministry of Finance, that in internal discussions, it has actually examined various ideas for indirect encouragement of reduction of personal vehicle use for work commutes through a “congestion tax.” In other words, levying a spot tax on any vehicle that travels in congested areas during peak hours, which is to say, specific taxation of private vehicles used to commute to work. Theoretically, this plan still exists, and is being promoted as a “pilot.” But the Ministry of Transport has already rushed to announce that it will not allow it pass because it is “an additional burden on the middle class.”
And what about setting an example?
“Well, fine,” you say, “The government has good intentions, but it doesn’t have enough money to implement them. So at least it can set a good example and contribute to the national “green commute” effort. In the Economic Arrangements Law that was published last year, the Ministry of Finance stated that “The body of government workers currently includes 46,111 workers for whom the government pays travel allowances and reimburses various vehicle and travel expenses. In addition, there are employees of municipalities and government agencies who are awarded similar travel and vehicle expenses. Thus, travel allowance arrangements for government workers indirectly affect a significant portion of public sector workers."
The document goes on to say that “The current method of payment for travel by public transport does not sufficiently encourage workers to use public transport and creates a distortion in the market.” And there is also a solution: “Replacing vehicle reimbursements for government workers with discounted public transport arrangements, in order to reduce personal vehicle use among public sector employees and to encourage them to use public transport using free tickets.”
But don’t worry. The recommendation was only for new employees, not existing employees who receive reimbursements for personal vehicle use, and also not for employees who receive a car from the government - which includes thousands of senior officials in the government and its offshootss, and even this will not be implemented. In other words, a lot of talk, and little action. In parallel, the IDF is currently holding a tender to lease thousands of cars for employees and officers, and these should thoroughly neutralize the use of public transport among officers and senior defense officials.
And what about that “green Knesset” that saves paper and installs solar panels on its roof? Will it set an example to encourage “green commutes”? We don’t really need to answer that, but we will note that while the law was being passed, the Knesset renewed the leases on its fleet for MKs and Knesset employees, leaving intact the very generous mileage allowance on the leased vehicles. So, here is a personal suggestion for the agenda at the Economic Affairs Committee session this week: “How can the Knesset members set a personal example in ‘green commuting’?” For whatever reason, we suspect that this matter will not be addressed.
The green comptroller
And we will close with words from the State Comptroller’s report on reducing vehicle emissions, which will also, coincidentally, be discussed in the coming days, this time in the State Control committee. The report, which is many pages long, found a long list of deficiencies in the government’s conduct on matters such as enforcing the Clean Air Law among municipalities and local authorities, establishing monitoring stations, the activity of licensing offices and, of course, a failure to encourage commuting to work via public transport. The bottom line is: “Due to the partial implementation of the law, ongoing damage to public health and welfare is occurring, and, therefore, significant financial damage to the economy is caused as well. All parties involved in the matter must act with determination to correct the deficiencies.” So, without spoiling the festive mood of “Environment Day,” we remind you that green is not only the color of a sprouting new leaf, but also the color of stagnant water.
Published by Globes [online], Israel business news - www.globes-online.com - on June 16, 2014
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