At this morning's cabinet meeting, Prime Minister Benjamin Netanyahu is due to present a file on reduction of the regulatory burden in Israel. The file contains 54 plans that, according to the Prime Minister's Office, will lead to an annual saving to the Israeli economy of over NIS 1.35 billion and cut more than 40 million days waiting time for regulatory approvals every year.
For example, the Ministry of Defense has introduced online applications for the Home Front Command approval required in many cases for obtaining building permits for residential construction. The Prime Minister's Office estimates that this will save NIS 108 million annually, mostly through obviating the need to present four copies of the blueprints for building projects. This measure will also save 207,000 days waiting time for the approval.
The most significant saving will come from transferring driving tests to two concessionaires and establishing a supervisory mechanism for them. According to the Prime Minister's Office, this measure alone will save 18 million days waiting time and NIS 144 million annually. Establishing a "green track" for approval of applications for probate will save 1.7 million days waiting time, according to the Prime Minister's Office.
In some cases the streamlining is not a question of abolishing superfluous existing requirements but rather of partial implementation of new regulations. For example, the Israel Fire and Rescue Services, which has issued a set of new fire prevention regulations, will require only partial implementation of them in existing buildings.
Another interesting change is designed to make it easier to obtain an apostille (certification of the authenticity of a document by the state for the purpose of obtaining international recognition of it). At present, an apostille can be obtained only from the Ministry of Foreign Affairs in Jerusalem. Under the reform plan, additional government offices will provide this service.
In advance of today's government meeting Netanyahu said, "We are committed to continue cutting excess regulation in order to take the Israeli economy to new levels of growth and prosperity. The momentum of reduction in regulation will accelerate in the coming years." The prime minster added: "The government's increasing action on this plane, from relaxations in licensing for small and medium-size companies, via relaxations for importers and exporters, to reduction in the bureaucracy that affects every citizen of the country, demonstrates my government's clear commitment to dealing with every area characterized by excessive regulation."
Prime Minister's Office director general Eli Groner said, "Anyone familiar with the public sector knows very well how hard it is to turn the government ship around and to inculcate a new organizational culture." Groner pointed out that within two years the State of Israel had jumped from 98th to 41st place in the World Economic Forum’s annual Global Competitiveness Report that measures the burden of government regulation, and said, "These figures and the file before you are proof that our efforts are bearing fruit."
The Israel Manufacturers Association said in response to the regulation cutting measures, "We welcome the continuing action taken by the Prime Minister's Office vis-a-vis the various regulators to cut back regulation. The figures published by the Prime Minister's Office highlight the importance of continuing the process in order to improve the business environment in Israel, to improve Israel's ranking in international indices and to enable businesses and entrepreneurs to develop and employ workers. Reducing regulation is critical for industry and the private sector in the face of fierce international competition and the programs introduced by most of the OECD countries to improve regulation."
The Manufacturers Association added however, "The regulatory burden continues to be a heavy weight on the back of the private sector in Israel. New regulations spring up daily, and more energetic work is required of all the entities involved to end the continuing damage to the engine of the economy."
Published by Globes [online], Israel business news - www.globes-online.com - on May 6, 2018
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