Reform of the Israel Land Administration (ILA) is getting underway. The ministerial committee for ILA reform today approved the measure, which Prime Minister Benjamin Netanyahu promised to carry out when he took office.
The government will submit legislation to redefine the status of ILA land in cities, and to allow tenders for, and the sale of, land to private parties for industrial, commercial, hotel, and residential development in urban areas. The legislation will completely sever any ties between the ILA and the individual buyers of the land after the sale.
The reform includes the transfer ownership of land from the ILA to the tenants who currently lease it under long-term leases for residences or business, and who will now assume full ownership. The terms for the transfer of ownership, including compensation, will be determined by the ministerial committee. If necessary, legislation will be prepared for this purpose. The marketing of new land will be solely for sale, not leases, even if there is no detailed plan for the land.
Under the reform, the ILA will cease to have any role in planning and developing infrastructures, and the responsibility will be transferred to local authorities and the private sector. Cases that require government involvement in planning and development will come under the responsibility of the Ministry of Housing and Construction, which will outsource the work.
The ILA will be replaced with a Land Authority, which will have a headquarters and three divisions. The business division will market land and carry out transactions, the land protection division will oversee and enforce the state's land rights, and the service division will be responsible for current leases. The service division will outsource its work.
The reform stipulates that the ILA must, by law, sell urban land, and it will cease its involvement in planning for any land it sells. Since the ILA is paid "leasing fees" by tenants and developers, the government decided that the ILA's land betterment fees will be increased to compensate the Treasury for funds currently transferred to the ILA.
The first stage of the reform will apply to local planning and building commissions of local authorities with more than 100,000 residents. Smaller communities can be incorporated into regional commissions of at least 100,000 residents, with the consent of the minister of the interior, so that this reform will apply to them as well. The legislative amendments for this purpose will be included in the 2009-10 economics arrangements bill.
The ministerial committee for reform includes Prime Minister Benjamin Netanyahu, Minister of Finance Yuval Steinitz, Minister of Justice Yaakov Neeman, Minister of Housing and Construction Ariel Atias, and Minister of Minority Affairs Avishai Braverman.
Published by Globes [online], Israel business news - www.globes-online.com - on May 4, 2009
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