(haipo) – The Knesset plenum approved in first reading the bill by Energy and Infrastructure Minister Eli Cohen, which allows local authorities that meet the criteria to manage the water sector themselves, without water corporations. According to the proposal, the authorities will be required to maintain a closed financial system, so that water revenues will be directed solely to managing the system and upgrading infrastructure. The move, which passed after lengthy discussions, is expected to reduce inflated expenses and streamline the operation of the water and sewage sector.
The essence of the law: self-management for authorities that meet the criteria
The bill states that local authorities that are deemed appropriate will be able to abolish the water corporations and manage the water sector themselves.
The central principle: a closed financial economy, in which every shekel collected from the public will be invested back into the water system.
According to the Ministry of Energy, the move is intended to:
- Reduce administrative duplication
- Reduce unnecessary expenses
- Streamline service to residents
- Reduce water rates in the long term
"There is no room for dozens of inflated corporations"
Energy and Infrastructure Minister Eli Cohen said the move is intended to put an end to wasteful spending and inflated management by some water corporations. He said: "There is no place in the economy for dozens of inflated corporations with hundreds of unnecessary jobs. This is a classic case of the golem rising up against its creator and creating a waste of hundreds of millions of shekels a year. Authorities that meet the criteria will be able to manage the water sector themselves and thus save millions of shekels."
The minister added that the goal is to ensure efficient treatment of a basic resource such as water, and reduce the rate for the public.
Professional staff work led to the bill
The bill is based on extensive staff work conducted at the Ministry of Energy and Infrastructure, headed by the ministry's Director General Yossi Dayan and with the participation of professional advisors, including:
- Ze'ev Bielsky — Former Mayor of Ra'anana
- Attorney Dror Strum — Former Antitrust Commissioner
The work examined the functioning of water corporations and the administrative duplications that have arisen since their establishment.
Continuation of the process: The proposal moves to preparation for second and third readings
After approval on first reading, the law will be forwarded for further discussions in Knesset committees for final drafting.
The proposal was also approved by the Ministerial Committee for Legislation and is expected to move forward relatively quickly.
The main problem: duplication and unnecessary costs
According to the Ministry of Energy, water corporations currently maintain management systems that are duplicated by those in place in local authorities, leading to high costs and higher water rates for the public.
The new law is expected to:
- Reduce operating expenses
- Prevent waste of public funds
- Improve operational efficiency
- Strengthen the ability of authorities to invest in water and sewage infrastructure
Looking ahead: Structural change in the water sector
If the law is finally approved, it could bring about a significant change in the structure of the water sector in Israel.
Local authorities that choose to abolish the corporations will be required to meet professional standards and maintain full transparency in financial management.
The advantage of making water cheaper for the consumer is savings in collecting VAT, which is 18% of the final price. The municipality is a tax collector who cannot collect VAT. Now there will be savings in manpower. They collect from associates. Cars and their maintenance, and just collect.
For general information, it is true that the authority is the tax collector, but the VAT price is reflected in the price at the local authority.
… In short, as it was a few years ago, before there were water corporations…
Management in municipalities is even more corrupt and wasteful than in corporations.
In Haifa, corporations were established, including Carmel Water, to voluntarily employ hundreds of workers not through the municipality in the form of discriminatory employment under inferior conditions to those of municipal employees. The corporations are much more efficient than the Haifa Municipality. In fact, if we close the municipality and open it in the format of the salary structure in a municipal corporation, the salary and pension costs would be reduced and the benefits would be reduced by 250 million shekels, said Israel Ben Shalom, the outgoing director of Haifa Corporations.
At a good time and with good luck, Carmel Water and more will be closed.
The main thing is that the entire "industry" of the shrunken pipe will come back.
To municipalities in all cities. The time has come. 🙏
Please be precise. The picture is of Carmel Water in Neve Paz, close to Gesher Paz.
Chatterboxes, looking to garner votes. You have no idea what you're talking about. Without the water corporations, there would be no investments in infrastructure, you would look like the sixties.
It's really interesting how things worked out when the local authority managed the water sector and the residents paid it much less than wasteful corporations.
From the 1st side: You do pay attention to the symptoms but not the problem.
On the other hand: It's time for complaints against the system and perhaps you will promote drastic change (apolitical, against the failures and problems created due to poor planning and management and immune to double and qualitative criticism, do not involve anyone who was close to the plate and did not criticize the situation).