Despite the heavy winter rains and the rapidly filling Kinneret, water prices continue to rise. In an interview with “IDF Radio" (Galei Zahal) today, Minister of Energy and Water Resources Uzi Landau said that the company has no authority to reduce the price of water, and blamed the previous government for the higher price, even though the price of water has soared under the Netanyahu government.
"Why doesn’t the price of water fall? I think that the question should be directed at Ms. Livni. Her government, the Livni-Olmert government, was responsible for raising the price of water. The Water Authority was authorized by the Livni-Olmert government to set the tariffs. It was taken out of the hands of the government, and the government has no authority to set prices. That's the law," said Landau.
"IDF Radio": So you cannot set electricity prices either?
Landau: "Yes. There is the Electricity Authority. The government has no authority. I am very pleased that you have raised this issue with me."
Is the Water Authority a private or public body?
"It's a public body… Why is the price of water going up? Partly because the State of Israel invested a lot of money in water purification, desalination, and sewage facilities."
Union of Local Authorities chairman Shlomo Bohbot, slammed Landau, saying, "I suggest to Landau that if he is again offered the energy and water portfolio to refuse it, because he has no authority over water and electricity. The water issue is abuse. It's an edict that the public cannot withstand. The government is stealing money from the people; it's levied VAT on water. The Water Authority acts with chutzpah, arrogance, and without mercy, and I reject what Landau says. There is no such thing - you're a minister! You can pass another law that takes the authority away from the Water Authority! Mekorot sells water to the water companies at NIS 2 per cubic meter, and they sell it to the people at NIS 9-14 per cubic meter!"
Landau said in response, "A bill has been tabled to change the Water Law, but was stopped because of the elections. I advise not lambasting the Water Authority. After all, the Knesset placed this need on it. As for VAT on water, it is no more than 4-5%. Bottom line, we're a country where the price of water is no higher than in Europe."
Published by Globes [online], Israel business news - www.globes-online.com - on January 8, 2013
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