Administrative costs by NTA Metropolitan Mass Transit System Ltd. doubled to NIS 85 million in 2013 and NIS 89 million in 2012 from their levels in 2010-11, states a special report on the company by the Knesset Research Department. The average salary at NTA, a government company, was NIS 16,501 in 2012, almost double the average national salary.
The average salary at NTA is higher than the average salary of NIS 14,109 for government employees, but less than the average salary of NIS 19,310 at government companies, such as Israel Electric Corporation (IEC) (TASE: ELEC.B22), Israel Railways, and the seaports.
The government invested NIS 2.9 billion in NTA through the end of 2013. Its operating budget rose to NIS 470 million a year in 2012-13 from NIS 145 million in 2010, because of the increase in manpower from 65 employees in 2010 to 170 employees in 2013. NTA's salary expense rose 278% from NIS 12.7 million in 2010 to NIS 48 million in 2013.
In 2010, the original budget for building the Tel Aviv light rail's Red Line was NIS 10.7 billion, and the line was to become operation in 2017. The cost has since ballooned to NIS 14.4 billion and the operating date has been pushed back to 2022. The Knesset Research Department attributes the increase to risk items that were not included in the earlier estimates.
The report includes NTA's response, "In line with the government decision, since 2011, the company has been building the Red Line… In 2012, the company was engaged in digging the shafts for the tunneling machines and in planning the Red Line in its entirety. This activity increased the operating turnover and income because the company is budgeted in full. As for the increase in general and administrative expenses in 2012, in line with the government decision tasking the company with the responsibility for building the Tel Aviv Metropolitan Light Rail, the company increased its workforce and hired engineers and skilled manpower to manager and oversee the construction work… These employees have relatively high salary levels, which means that the increase in the salary cost is greater than the increase in the number of employees."
Published by Globes [online], Israel business news - www.globes-online.com - on April 3, 2014
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