Kahlon attacks Netanyahu on executive salaries

Moshe Kahlon and Benjamin Netanyahu
Moshe Kahlon and Benjamin Netanyahu

The Minister of Finance accused the Prime Minister of violating the coalition agreements to support his reforms.

Ministry of Finance Moshe Kahlon today strongly criticized Prime Minister Benjamin Netanyahu. Speaking at a conference of the "Calcalist" newspaper, he commented on Netanyahu's intervention on the reform restricting executive salaries approved by the Knesset Finance Committee a week ago.

Kahlon said he read about Netanyahu's action in a newspaper. "If there's a change in the coalition agreements, I'd like to know about it… I think he should call me on the phone and tell me, 'My dear Minister of Finance, I have decided to violate the agreement.' I take this seriously, because all agreements should be honored. This took me by surprise, because I have a signed agreement with the Prime Minister. One of my conditions for entering the government was that he wouldn't interfere with my reforms. He signed an agreement stating that he would promote them."

Kahlon's comments follow Netanyahu's opposition to limiting executive salaries in the financial sector to 35 times the salary cost of the employee with the lowest salary in the company. Netanyahu also considered raising the salary ceiling above which salaries are not recognized as expenses from gross NIS 2.5 million to gross NIS 3.5 million.

Kahlon also referred to the state of the real estate market, saying, "We have put an end to land speculation in Israel. We have committed ourselves to marketing 70,000 apartments, and we'll meet that commitment. When the country stops using land prices to make a profit at its childrens' expense, it will come out ahead."

He mentioned the capital market reform he was leading - the establishment of another independent authority, saying "A year from now, there will be an independent authority. There are a few disputes with Hauser (Israel Security Authority chairman Shmuel Hauser, A.B.), but we'll work it out, and it will be all right. You can't eliminate everything."

Kahlon also commented on the Strum Committee for strengthening competition with the banks, saying that the committee was scheduled to present its final report at the end of the month. "I'm telling you that the Strum Committee will publish its conclusions at the end of March. We'll bring it to the cabinet, and we'll also confer with the Governor of the Bank of Israel about it. We'll see what can be done to keep the lamb whole and the wolf happy."

Published by Globes [online], Israel business news - www.globes-online.com - on March 22, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

Moshe Kahlon and Benjamin Netanyahu
Moshe Kahlon and Benjamin Netanyahu
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