Braverman: Finance Minister Bar-On's conservative policy in 2008 left us no remedy in 2009.
Knesset Finance Committee chairman MK Avishay Braverman (Labor) told "Globes" today, "The high-tech sector is facing an unbearable year. Of course we worry about our soldiers in Gaza, but the economic crisis will not pass over us, and when there is a cease-fire it will all come back to us.
"There is an economic low point here that has not been seen since the 1930s. This will impact 2009, which will be the most difficult year ever. Without proper policies, I see fifty thousand unemployed in the high-tech sector. Some of the companies which have become international are having difficulties, and they will have layoffs."
Braverman recommended three steps to take:
Increase the chief scientist's funds. Offer tax incentives to employers in order not to fire workers. "We are scared of lower tax revenues, but layoffs will lead to a problem in income taxes." Deal with the problem of working capital. "What the Treasury is adding is not enough. The banks don't bring enough money, and several firms do not have working capital." Braverman said that operation "Cast Lead" against Hamas in Gaza would apparently end in about a week, and that the economic difficulties would only worsen. "This is the time for aggressive policy, and not to be conservative. The Minister of Finance decides on priorities. The conservative policy of Minister of Finance Ronnie Bar-On in 2008 led to the point where we have no remedies in 2009."
Sources close to Ronnie Bar-On responded, "Braverman was, and remains, a demagogue. As usual, he wakes up and responds late. In the past month, the budget for the Chief Scientist has been increased NIS 200 million."
Published by Globes [online], Israel business news - www.globes-online.com - on January 14, 2009
© Copyright of Globes Publisher Itonut (1983) Ltd. 2009