Israel's mayors today carried out their threat and launched an unlimited general strike of all local authorities. The final decision to go ahead was made before dawn today, after talks with Prime Minister Benjamin Netanyahu failed, when he refused to offer concrete proposals to prevent damage to local authorities' revenues.
The strike includes municipal welfare services, garbage removal, community centers, parking tickets, and veterinary services. All municipal offices are closed. Schools are open, although administrative workers are absent, and kindergartens and daycare centers are open only where parents replace striking assistants.
The Union of Local Authorities strike committee met this afternoon to discuss escalating the strike, and sources hint that the municipalities have the means to disrupt people's daily routine all week. Dimona Mayor Meir Cohen is chairing the strike committee, and Ramat Hasharon Mayor Yitzhak Rochberger is in charge of special missions.
Officials from the Ministry of Interior, Ministry of Finance, and the Prime Minister's Office will meet this evening to prepare solutions to end the strike today.
Key demand: Cancel arnona exemptions
The mayors' key demand is the cancellation of arnona (local property tax) exemptions that Minister of Interior Eli Yishai has granted, mostly for large families, students, and IDF reservists, or to indemnify the local authorities for the lost revenues. The mayors are also demanding the restoration of NIS 500 million cut from the education budget, and an end to VAT on water, which was part of the establishment of municipal water companies.
The mayors also want the government to oppose a slew of private members bills in the Knesset, which will harm local authorities. These include a bill by MK Haim Katz (Likud) to exempt from arnona protected enterprises and rehabilitation centers that employ or house handicapped individuals; and a bill by MK Yoel Hasson (Kadima) to grant student dormitories 30% deductions on arnona.
A list published by the Union of Local Authorities lists 11 bills, which will cost them NIS 500-750 million in lost revenues.
Published by Globes [online], Israel business news - www.globes-online.com - on January 16, 2012
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