The Knesset Finance Committee today approved a clause in the concentration in the economy bill limiting business pyramids to just two levels. The bill will have far-reaching consequences for Israel's major holding companies, such as Israel Corporation (TASE: ILCO), Delek Group Ltd. (TASE: DLEKG), and IDB Holding Corp. Ltd. (TASE:IDBH).
The Finance Committee accepted the minority position presented by outgoing Budget Director Gal Hershkowitz, a member of the concentration in the economy committee, to limit business pyramids to two levels.
During the meeting, MK Merav Michaeli (Labor) demanded that lobbyists be removed from the committee room. Finance Committee chairman MK Nissan Slomiansky (Habayit Hayehudi) rejected the demand, saying, "MKs are strong enough to withstand pressure." He was supported by other committee members.
MK Stav Shafir (Labor) also objected to the presence of lobbyists in the committee room, proposing that they be identified by name. This request was also rejected by a majority of committee members, including Slomiansky, who said, "You want me to read who gave notes to the social guard in this room advising them on the subject of the law?"
Minister of Finance Yair Lapid was not present at the meeting, after cancelling his participation in order to attend an OECD finance minister's meeting in France. That trip was cancelled this morning because of the coalition crisis over the draft.
In April, the Knesset plenum passed the concentration in the economy bill in its first reading. The law aims to restrict concentration in the economy and increase competition. Minister of the Economy Naftali Bennett will be responsible for its implementation.
The bill is based on the concentration in the economy committee's recommendations on three issues: considerations of concentration and competition on the economy of privatizations; limiting business pyramids of holding companies; and the separation of holding companies' financial and non-financial holdings.
Published by Globes [online], Israel business news - www.globes-online.com - on May 28, 2013
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