Association of Contractors and Builders in Israel president Nisim Bublil has said that the hike in cost in employing foreign workers, before training Israeli workers in their place, which is being implemented by the Ministry of Finance and Knesset Finance Committee, will directly hurt homebuyers.
The Knesset Finance Committee today approved the Ministry of Finance's proposal as part of the Economic Arrangements Law to double fees for employing foreign workers in construction and industry. According to the Association of Contractors and Builders in Israel, contractors currently pay fees of NIS 1,800 per month per foreign worker and this will not rise to NIS 3,600, making the cost of a worker each month NIS 12,000.
The Association of Contractors and Builders in Israel calculates that this will add about NIS 25,000 to the price of an average apartment.
Bublil said, "Government policies for construction are contradictory with the right hand not knowing what the left is doing. Everybody declares that there is importance in encouraging young couples to buy an apartment in Israel and lower the prices of homes but in practice decisions are taken to raise prices and harm homebuyers."
Published by Globes [online], Israel business news - www.globes-online.com - on July 7, 2009
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