Steinitz: Defense budget must be transparent

Israeli observability co groundcover raises $35m

Addressing the Sderot Conference for Society, Minister of Finance Yuval Steinitz reiterated his call to cut the defense budget.

"We're fighting a hard defensive battle for the Israeli economy," said Minister of Finance Yuval Steinitz at the Sderot Conference for Society today. "The battle for the economy, the battle for society, and the security situation are all connected. This battle isn't only a defensive battle for the economy, but for Israel's citizens. We've been fighting for three years to prevent mass unemployment of the kind seen in Spain, Italy, Ireland, Portugal, and the US… When I took up office, Israel's unemployment rate was projected to reach 10-15%, which would widen gaps and hurt millions of people and the poor."

Steinitz linked the prevention of mass unemployment to his response to the demands of the social protest. "Taking care of society and security requires a growing economy, not a shrinking one; an economy that creates jobs, not one that loses them."

After heckling by demonstrators who called for "social justice for the Negev", and "instead of caring for society, you're dismantling society", Steinitz continued, "Until now, we've succeeded in preventing mass unemployment in Israel and creating growth, but this achievement must be fought for to continue. Education and welfare are important, but unemployment is the most important, even if times are tough. We must encourage investment in Israel, rather than drive away businesspeople."

As for the social protest, Steinitz said, "In the past year, there has been an immense struggle, the likes of which Israel has never seen about to whom belongs the country's natural treasures. 18 months ago, after a Ministry of Finance debate, I decided to put an end to the situation in which the Israeli public does not benefit from its proper share of the huge natural gas discoveries. This was the biggest battle waged here - for NIS 200 billion in current prices. The figure could still rise. I decided that we would apply international standards. The battle was against Israeli and foreign energy companies, and battalions of lobbyists and demonstrations against me and Sheshinski. It wasn’t an easy fight. When I decided to set up the Sheshinski committee, most Ministry of Finance officials advised against it."

Hecklers again interrupted, shouting, "Where's the money? Where's the sovereign fund that was supposed to be established in November?" Steinitz replied, "I know the law and the fund will be established."

Steinitz reiterated his call to cut the defense budget and his argument with Minister of Defense Ehud Barak, saying, "This is an argument over transparency. Just like in the battle over the Sheshinski recommendations, where I brought the proper result, the same will happen on the issue of transparency and control over the defense budget."