The Israel Land Council has unanimously voted to accept the Israel Land Authority (ILA) far reaching reforms and recommendations that kibbutz cooperatives will be able to purchase kibbutz residential rights for 33% of the value of the land. The Israel Land Council, headed by the Ministry of Construction and Housing Director General Shlomo Ben Eliyahu, approved the recommendations of the ILA's Lieberman Committee for Arranging Kibbutz Residential Rights.
The Kibbutz Movement believes that in the coming years 65,000 new homes will be built out of a total of 120,000 that have been approved.
In effect this is the first time that the State has acknowledged the rights of kibbutz members.
In the past the Supreme Court, in response to a petition by social change organization Democratic Mizrahi Rainbow - New Discourse, ruled that kibbutz members could buy their homes for 33% of the property's value. However, this decision was never implemented by most kibbutzim because of bureaucratic difficulties and concern that if individuals were able to buy and sell their kibbutz homes, this would transform kibbutzim into community settlements and moshavim (agricultural cooperative settlements), and the special character of the kibbutz would disappear.
Now, the committee headed by ILA Director General Benzi Lieberman who was appointed by Housing Minister Uri Ariel has approved an alternative arrangement. This arrangement will give kibbutz members property rights (collectively) but leave management and ownerships of the property in the hands of the kibbutz itself. This will protect the kibbutz as an entity while allowing kibbutz members to financially benefit from the land they own but not sell homes individually.
On any given kibbutz 66% of members will have to vote to accept the arrangement.
However, the Kibbutz Movement believes many kibbutzim will be unable to take advantage of the government's offer even at a discount of 66% of the property's value, except in regions where property values are low.
Kibbutz Movement Legal Counsel Adv. Miki Drori said, "The issue of the freeze in building permits for kibbutzim is still not solved. The payments will be too high and the decision is a terrible one financially. The discounts for collective sales and paying ahead of time are zero and so this decision will only be applicable to the periphery where there is a discount in land prices. The decision won't be applicable in central Israel where the cost of land is huge. Only kibbutzim in an excellent financial situation will be able to realize this."
Lieberman stresses that most Israeli kibbutzim are in the periphery and will therefore be able to take advantage of the new situation.
Social change organizations including Democratic Mizrahi Rainbow - New Discourse oppose the latest arrangements.
Published by Globes [online], Israel business news - www.globes-online.com - on September 1, 2014
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