The national priority areas bill that the government today submitted to the Knesset Finance Committee proposes that families moving from central Israel to development towns and outlying areas, which will be declared national priority areas, receive free electricity, water and telephones for three years. New immigrants who have been in Israel for up to three years and move to development towns and outlying areas will also receive grants to help cover rent and local land taxes. Individuals over the age of 25 will also be eligible for the benefits.
The government bill is intended to replace the Development Towns and Areas Law (1988), against which a series of petitions have been filed the High Court of Justice on the grounds that the law is discriminatory.
In addition, after two years, residents of development towns and outlying areas and families that move their from central Israel will be eligible for double the usual loans to buy homes. These housing loans will be converted into grants after three years.
The bill also proposes that residents of development towns will not pay for kindergartens, and will be eligible for free daycare, and primary and secondary schools. They will be eligible for tuition grants for universities and Torah institutions, and will receive financing for children’s activities, including sports, culture, workshops and gardening.
Prime Minister Ehud Olmert, after consulting with Minister of Finance Abraham Hirchson, will determine the ordinances for applying the bill. Olmert and Hirchson, together with the ministers responsible for applying the bill, will also decide which communities in the outlying areas will be declared national priority areas.
The bill is due to come into effect in January 2008.
Published by Globes [online], Israel business news - www.globes.co.il - on March 13, 2007
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