A special report delivered at the Knesset by State Comptroller Micha Lindenstrauss has Knesset Members scrambling to try to stop a steep water price hike from taking effect two days from now. They are motivated by a desire to prevent affecting those below the poverty line.
Lindenstrauss says the steep water price hikes – 25% two days from now, and nearly the same again in the coming year – will hurt the weaker sectors, and were not set in a professional manner.
Herzog: "The levy for overuse of water was canceled recently after a big hubbub – because it affects the upper middle class and their lawns; but this hike, which will hurt the lower classes by raising the price of every drop of water that we drink, has been ignored…”
Likud MK Miri Regev, who has been railing against the impending price jumps for two months, plans to meet with Prime Minister Binyamin Netanyahu this afternoon (Wednesday) and ask that he call off the price hike until the matter can be reviewed. MK Regev, who said that she initiated the Lindenstrauss report and agrees with its conclusions, says she will turn to the Supreme Court if the water price hike is not suspended.
Herzog Lashes Out at Priorities
Welfare Minister Yitchak Herzog said similarly, “I have been talking about this for weeks, yet as usual, we wake up at the last minute. And the worst thing is that the levy for overuse of water was canceled recently after a big hubbub – because it affects the upper middle class and their lawns; but this hike, which will hurt the lower classes by raising the price of every drop of water that we drink, has been ignored…”
Knesset Control Committee Chairman Yoel Hasson said the price hikes should be frozen immediately.
The largest price hike is set to go into effect in only two days – 25% on Jan. 1 – followed by 16% on July 1, and yet another 2% in the beginning of 2011. A significant part of the hike is due to the addition of the 16.5% VAT (Value Added Tax, to be lowered to 16% this week) for the first time. As of July 1, water will cost 9.43 shekels per cubic meter per month for up to 2.5 meters per family member, and 13.28 shekels for each cubic meter beyond that.
The Lindenstrauss report, parts of which the Comptroller read aloud at the Knesset on Wednesday morning, states, “Given that water is an essential product for every single citizen, raising its rates so much is liable to seriously hurt the weaker sectors of society… It would be appropriate for decisions of this nature to be made after a fundamental check of the data and of the components of the rates has been ascertained, and after formulating a comprehensive program and timetables to close the gaps created in the past.”
Lindenstrauss also noted that the eight-member Water Authority that now sets the rates includes only two public representatives, compared with six representing the authorities.
Water Authority Chairman Prof. Uri Shani continues to insist that the steep hike is necessary: “If we do not raise the prices, water services will not be able to be provided to the public as early as this coming year.” He has said that the hikes will help pay for Israel’s primary solution to its water crisis, desalination.