The 15th Forum of cities has announced a complete shutdown of local planning and construction committees, effective immediately. This is in protest to the government’s promotion of the Settlements Law, which includes chapters on nationalizing property taxes, national infrastructures, planning and construction, and damage to the protection of the environment and health. The 15th Forum Cities claims that the Settlements Law will severely damage the powers and abilities of the local government to manage the cities of Israel and provide services to citizens and residents. The shutdown will continue until Sunday, March 19, 2023, or until the government removes the aforementioned chapters from the law.
Raul Sargo, the president of the Contractors Association, has responded that this decision is an “own goal of the mayors of the big cities” who are intentionally harming their own residents. He claims that the strike will delay the construction of new apartments and prevent residents from entering their current apartments, causing an increase in apartment prices and rents. The Association of Contractors Building the Land believes that the strike is premature and that negotiations between the government and the municipalities in Israel should take place before any drastic measures are taken.
The construction industry in Israel has already experienced a 15% drop in the volume of construction starts since the middle of last year, and the Association estimates that it will stand at 15,000 housing units or less this quarter. This decline in construction volumes is a result of uncertainty in the industry, the economy, and the increase in interest rates by the Bank of Israel, which has negatively impacted young couples seeking apartments.
Sargo emphasizes that the State of Israel cannot afford a stoppage of the construction and infrastructure industry, which is one of the largest employers in the economy, with over 250,000 Israeli workers. The industry’s paralysis could lead to a direct blow to them and the stability of the banks and the entire economy, as the scope of its credit from the banking system hovers around one trillion shekels.
From this morning: the 15th Forum disables the Planning and Construction Committees in protest of the Settlements Law | Raul Sargo, the president of the Contractors Association, claims in response: “This is an own goal of the mayors of the big cities who intentionally harm their own residents, who will not be able to enter their apartments and that the construction of their new apartments will be delayed for many months.”
Haim Schiff March 19, 2023
The cities of the 15th Forum announced the complete shutdown of the activities of the local planning and construction committees as of today, in protest that the government did not remove from the Settlements Law the chapters on the nationalization of property taxes, national infrastructures and planning and construction.
According to the announcement of the 15th Forum Cities, “The law of settlements that the government is promoting these days in a predatory and unprecedented manner will severely damage the powers and abilities of the local government to perform its duties, manage the cities of Israel, and provide services to citizens and residents.”
In a statement delivered last week, it was stated that “Therefore, and in accordance with the decision of the plenum of mayors of the 15th forum, the forum informs that the government has and will not remove from the settlement bill the chapter on nationalizing property taxes, the chapter on national infrastructures, and the chapter on planning and construction, including stopping damage to the protection of the environment and health, until This coming Sunday, March 19, 2023, the cities of the 15th Forum will completely shut down the activities of the local planning and construction committees, including the planning and licensing activities. As long as the government continues to promote these chapters, the 15th Forum will intensify the struggle, including shutting down the education system in the cities.” .
“This is a self-inflicted goal of the mayors of the big cities who intentionally harm their residents. The mayors of the big cities in Israel are taking captive the residents of the cities who will not be able to enter their apartments that have already been built and those whose construction of their new apartments will be delayed for many months. Precisely in a period of real difficulty to go out and build new apartments, this strike will greatly damage the supply of apartments and cause an increase in apartment prices and rents” – This is how the president of the time Builders Contractors Association, Raul Sargo, responded today to the shutdown of construction planning and licensing activities by the heads of The 15 largest cities in the country.
We will remind you that since the middle of last year the volume of construction starts in Israel has dropped by more than 15% and according to the association’s assessment, it is expected to stand at 15,000 housing units or less this quarter. The new declines continue and construction volumes are cut mainly in light of the uncertainty in the industry and the economy and the increase in interest rates by the Bank of Israel.
In the Association of Contractors Building the Land, they say that the strike is A step too early, since it comes even before in-depth substantive discussions between the government and the powerful municipalities in Israel on their demands. “In fact, we the contractors can mediate between the municipalities and the contractors, since we are the ones and together we can reach the tools that will advance the start and end of construction more quickly. The delays are seriously hurting the young couples. Such a shutdown, on the part of the mayors, will also have a negative contribution regarding the increase in apartment prices, which are now in moderation “, He says.
Sargo emphasized: “The State of Israel cannot afford a stoppage of the construction and infrastructure industry, and when that happens, the price it pays is enormous. The entire Israeli economy depends on the continuation of construction work. Our industry is one of the largest employers in the economy, with over 250,000 Israeli workers, and its paralysis is a direct blow to them Our industry is one of the largest borrowers in the economy and the scope of its credit from the banking system hovers around one trillion shekels, so its paralysis is a very dangerous damage to the stability of the banks and the entire economy.”