Finance Minister presents plan: Investment will add 10,000 jobs

Bar-On presented a NIS 21.7 billion economic stimulus plan.

"We're increasing government investment in available projects in infrastructure, energy, transportation, water, tourism, and the labor market by NIS 21.7 billion, a 41% increase compared with investment in 2008. This increase will create at least 10,000 jobs," said Minister of Finance Ronnie Bar-On at the press conference where he presented his economic stimulus plan.

Bar-On said, "The global economy is in the midst of a very severe crisis. The global crisis will affect, and is already affecting, the Israeli economy, and will severely affect its growth rate. We have the means to enable the economy to emerge from this crisis with minimal damage. We're a small but strong country coping with a global storm, and I'm sure that we can withstand the storm even if it damages us. Know that we're a strong society that has withstood the harshest times, and we'll show responsibility and maturity and get through the difficult times ahead of us."

Bar-On continued, "This stimulus plan presented to the cabinet today is unprecedented in scale and in its contribution to economic efficiency. It assumes that economic growth will be less than predicted before the crisis. After we reviewed the government's ability to help, on the basis of figures in the government's possession, we made the decision to continue the tax cut plan, which will create certainty for the business sector, improve competitiveness, and encourage private consumption, as well as dealing with credit and the labor market." He added that this package of measures could not have been implemented with the fiscal responsibility and attention to the debt/GDP ratio over recent years.

Bar-On went on, "We turned over every rock, looked at every plan, and thoroughly examined the plans of the ministries and government companies in order to immediately execute every measure that will contribute to growth.

"This crisis has created an opportunity to hire as teachers and manufacturing workers thousands of people who've lost their jobs. We must return to 'Israeli' work in nursing, agriculture, and construction. The layoffs are painful, and should not be made unless they are essential. This plan is a response to the firings. The hiring and retraining of workers is a top priority."

Bar-On added, "The government will not shirk! Act with the responsibility you should demonstrate. We're entering a political jungle. I hear complaints by those who do not know the plan and claim that it's not enough. This plan will stimulate economic activity. Second, it is not the final word. This crisis is at its height, and we have more plans. It is my duty to maintain a flexibility of action. I call on you to leave behind your partisan calculations. That is too risky a gamble at the expense of Israel's citizens. Not approving this plan will carry a heavy price. You must not tarry. This plan must be approved as is."

Published by Globes [online], Israel business news - www.globes-online.com - on November 19, 2008

© Copyright of Globes Publisher Itonut (1983) Ltd. 2008

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