The Central Bottling Co. (Coca-Cola Israel) today announced that it has cancelled plans to move its bottling plant from Bnai Brak to Ashkelon. The company said the decision was made due to problems with scheduling that conflicted with its original plan.
It is believed that today's decision is the outcome of a harsh public outcry against the Investment Promotion Center of the Ministry of Industry, Trade and Labor's approval of the move. The Investment Center's decision was initiated by Minister of Industry, Trade and Labor, Minister of Communications and vice-premier Ehud Olmert. It contradicted the position taken by the Ministry of Finance and the Attorney General.
The Ministry of Industry, Trade and Labor was to have granted the project NIS 65 million. Today the Movement for Quality Government in Israel filed a petition against the grant.
The Movement for Quality Government asserted that the grant for moving Coca Cola Israel’s plant from Bnei Brak to Ashkelon contravenes the rules of proper administration, grossly violates the principles of equality before the law and social justice, is extremely unreasonable, and lacks all proportion.
The Movement for Quality Government alleged that the decision discriminates in favor of Coca Cola Israel, without giving other concerns a chance to compete for grants budgeted by the Investment Center. The Movement for Quality Government also petitioned the High Court of Justice for an order directing Olmert to budget resources to solve Ashkelon’s employment problem.
The Movement for Quality Government said that a tax benefit plan should be discussed, which the Investment Center usually uses in cases of relocating a monopolistic enterprise. The Movement for Quality Government also asked to court to disqualify the Industrial Development Bank of Israel survey, and asked that a new survey be conducted by a party neither directly nor indirectly subordinate to Olmert.
Published by Globes [online] - www.globes.co.il - on February 8, 2004