"Israel does not have a balanced economy". This comment comes, with a sigh, from Ekkehard Koethe, general manger of Siemens Israel, two years in Israel. "You find excellence in high-tech, telecommunications, health, computers, agricultural systems and pharmaceutics, but the State's transport systems are in very poor shape. This state of affairs cannot persist. It must not be allowed to go on for long".
In an interview with "Globes", Koethe criticises the government's infrastructure policy, something the head of a mammoth foreign firm's local office does not usually do. "The government must subsidise investment in transportation", says Koethe. "Today, what with the huge traffic jams on Israel's roads, meetings have to he held over the telephone".
"Globes": How can Israel's transportation problems be solved? The government does not have limitless funds. Maybe what is needed is more privatisation in this field?
Koethe: "Transportation cannot easily be privatised, the government must be aware of that. There are other ways to resolve the traffic jams: Israel has been indulging herself in recent years with private transport. People prefer to drive their own cars, rather than using public transport. A public transport system must be created which will also combine basic comfort. The government must also bear in mind the future protection of environmental quality. This will not be achieved if people continue to use private transport almost exclusively".
"Globes": In your opinion, does the Israeli government fail to recognise the importance of investing in mass public transportation?
Koethe: "I have a feeling that the State hasn't got the guts to say: now we are going to start applying a long-term transportation policy. The problem must be dealt with in a more focused manner. It's no use saying 'today we'll do the Cross-Israel highway, and tomorrow we'll do something else', a road in Jerusalem for example. A political decision needs to be made. I, personally, am of the opinion that politicians are inhibited when it comes to long-term investments because they look for an immediate political dividend. They are afraid that someone else, in the future, will be cutting the ribbon on the new road. When setting up a state-of-the-art transportation system in an urban area, at least 5-7 years will elapse before anything becomes visible, so governmental decisions call for a lot of courage".
"Globes": During your two years in Israel, has there been no improvement whatsoever? After all, bigger investments were scheduled to be made in these fields.
Koethe: Things are getting worse from one day to the next. Looking at government budgets, we see that there still isn't enough money for the policy I recommend. Rail transport, in particular, is lacking. Roads, on the whole, are good. The problem with Israel's existing railway lines is that they are neither fast, nor comfortable nor sufficient. So if, nevertheless, the government wants to do something practical about its intention of blocking the approach to the central towns, or, alternatively, collecting congestion fees, then car drivers have no alternative at all in the framework of rail transport".
"Globes": Meanwhile, there is talk of the government investing $60 million annually in developing new railway lines".
Koethe: "With that amount of money, forget it, it's not enough".
"Globes": Even the Tel-Aviv metropolitan mass transport project, in which $2 billion is supposed to be invested, is not making any progress. Siemens itself is enquiring about participation in tenders connected with the project. What is your view of this?
Koethe: "It seems to me that things swing up and down here. In my opinion, the direction they are taking is the opposite of what it should be. Firstly, a political decision, planning and consultation are needed, followed by a plan combining a light railway, a regular railway, shuttle buses, parking systems and an underground railway. Only after that should financing methods be sought. Today, people are doing the opposite, and prior to taking concrete decisions, they deal with the more advanced matters. First they employed consultation, now they are looking for companies to execute the project. But what about the rest of it? Without prior planning, down to the last detail, nothing can be done in practise".
"Globes": Is the regional political situation not preventing Siemens from entering into investment in Israel?
Koethe: "Personally, as an onlooker, I have the feeling that all the elements connected with the political situation in Israel and the surroundings are taking up valuable time with this government, with the regrettable result that it does not get round to economic-infrastructure decisions, as in transportation.
"From our point of view, if we are to step up our operations, we need to invest more in sales and service and also to bolster technical support, and then we will undoubtedly sell more of our products. There are two ways we can achieve this: having our agencies invest in Israel, or for Siemens itself to invest the money. The matter is still being examined, and decisions will be reached shortly".
Siemens is active in Israel also in data communications, computers, medicine, electrical equipment and in high-tech. Its representation in Israel was established when Koethe was appointed general manager. Siemens is also stepping up its activity in the Territories and is involved mainly in communications. Siemens' annual revenues from activity in Israel and the Territories is estimated at a few hundred million dollars. Most of its Israeli revenues, 133,000-140,000 German marks annually, come from the sale of equipment to the Israel Electric Corporation.