"Strengthening Jerusalem should a national priority. Jerusalem could be an alternative to settlers evacuated under the disengagement plan," said Minister of Housing and Construction Isaac Herzog yesterday at the Jerusalem Conference 2005.
Herzog listed projects that his ministry could coordinate with the Ministry of Finance:
- Urban development by providing incentives for vacate-and-build schemes for replacing poor and disintegrating housing.
- Developing public buildings in Jerusalem.
- Developing new neighborhoods, such as Har Homa.
Herzog said Jerusalem could compete against communities in the south in absorbing settlers evacuated under the disengagement plan. "My ministry recommended expanding Nitzan and north Ashkelon, and strongly objected to moving evacuated settlers to the Nitzanim sand dunes nature reserve. Jerusalem can be a worthwhile alternative."
Commenting on the high price of land in Jerusalem, Herzog said, "Under certain circumstances, there is no choice except government intervention in cases of market failure. The Ministry of Finance won't let us move forward on this matter at present.
"This is a mistake and it's wrong. I recommend that pillars of the community in Jerusalem raise this issue. They shouldn’t be satisfied with a few million shekels; they should continue to demand more and more."
Africa-Israel Investments (TASE: AFIL) CEO Pinchas Cohen said, "Africa-Israel does not make a profit in Jerusalem, but chairman Lev Leviev has made a strategic decision to stay and grow in the city."
Jerusalem Global Ventures (JGV) founding partner Shlomo Kalish said Jerusalem would have high tech if engineers would choose to reside in the city. "Most engineering graduates leave the city when their studies are over. Engineering schools should be strengthened," he said, adding that he was no great believer in massive government intervention in the economy, since it rarely lasted. "Market forces should be allowed to work," he said.
Published by Globes [online], Israel business news - www.globes.co.il - on April 12, 2005