Sources inform “Globes” that the Ministry of Finance yesterday appealed to acting Attorney General Edna Arbel to stop the Investment Promotion Center of the Ministry of Industry, Trade and Labor providing a grant to the Central Bottling Company (Coca Cola Israel) for moving its plant to Ashkelon.
In its appeal, the Ministry of Finance asserted that the grant and its size had been determined before the Industrial Development Bank of Israel survey on the matter had been obtained. The ministry is asking Arbel to rule that the decision was taken contrary to proper administration, without taking into account all the relevant aspects and considerations, and in disregard of outgoing Attorney General Elyakim Rubinstein’s instructions. The ministry claims the decision was “economically disadvantageous”, and “clearly unreasonable”.
On the basis of a new survey by the Industrial Development Bank of Israel, the Ministry of Industry, Trade, and Labor recently approved a NIS 65 million grant for Coca Cola Israel. The Industry Ministry approved a $60 million investment, instead of the $110 million figure used in the survey. The Industry Ministry said in response, “The Ministry of Finance lacks authority to overrule the Investment Promotion Center’s decisions. The decision will not be reversed.”
The Ministry of Finance’s appeal to Arbel repeats its arguments against the grant for the Coca Cola plant. The Ministry of Finance asserts that the investment adds little value to the economy, that alternative uses for the grant and for boosting employment in Ashkelon have not been considered, and that Coca Cola Israel’s monopoly status will be reinforced, at the expense of its competitors in the carbonated drinks market and the consumers.
Published by Globes [online] - www.globes.co.il - on January 21, 2004