Globes, Eric Mirowski, 19.06.2020

The cement war is at its peak, and is rising to the ministerial level: Finance Minister Israel Katz tweeted that he was about to reject the recommendation of the Minister of Economy and Industry, Amir Peretz, to raise the levy on cement imports from Turkey and Greece by up to 17.25% for a five-year period. Katz's argument, also backed by professionals in his office, is that Peretz's move would strengthen the eagle monopoly at the expense of free competition against cement importers. This is because the levy levy will raise the price of imported cement, thereby contributing to the increase in cement prices in Israel, even though Nesher has pledged that it will not raise the prices of cement from its products.

Peretz's decision is individualized between the various cement producers in Turkey and Greece, according to cement prices. Thus, one Turkish manufacturer will not be charged a surcharge at all, and a surcharge of 5.6-8.8% will be imposed on four manufacturers. A higher levy of 15-17.25% was imposed on the permit.

Peretz explained: "In recent years, cement imported into Israel at the price of cement has led to a decline in cement prices that have not rolled to the consumer and, apart from the injury to the domestic producer industry, the fall in prices has not led to a reduction in the price of concrete or a reduction in housing prices. Therefore, it is clear that the prices of apartments are not affected by cement prices, because cement inputs are negligible in the consumer price of the apartment, and moreover, the price of cement that is currently sold is significantly lower than the price according to an undertaking that Nesher undertook to preserve the competition as a condition for further removal of cement from the price of NIS 346 Per ton. "

Peretz added, as stated, that Nesher has pledged in writing to the state not to raise cement prices throughout the period in which the levy will be valid, but Treasury believes that after such a step, the price of cement will rise, since Nesher's competitors will have to raise their cement prices.

To make the decision, it must pass through Finance Minister Israel Katz and the Knesset Finance Committee. At least Katz wasn't convinced of her willingness. On the contrary. He tweeted, saying he did not intend to receive Peretz's appeal: "Minister of Economy Amir Peretz informed me today that he recommends raising the levies on imported cement and thus raising his price. By an authority I intend to reject this recommendation outright, "Katz tweeted. And the question will be, what will happen in the finance committee, and how will the issue be resolved, where each regulator holds its own position.

Katz is also politically backed by who was a designated Finance Minister, Nir Barkat, and Intelligence Minister Eli Cohen until recently served as Minister of Economy and Industry. Barkat congratulated Katz for his decision, while Cohen said, "To say that the imposition of the foam will not affect housing prices is like saying that the milk price will not affect the price of cheese. Waving an empty slogan of the content of human economics, but giving in to monopolies and pressure groups, hurts home buyers and especially the young couples. "

Peretz explained in his decision that he said, "There is real concern that continuing to hurt the domestic manufacturing industry will reduce domestic production activity and reduce long-term cement prices, increase import prices and economic harm to the economy. Importance in preserving the good of the economy in the long run, "but Treasury officials, led by Minister Katz and the Competition Authority, believe this will result in a rise in prices and a return to Nesher's status as a self-cement monopoly as in the past. Peretz said he rejected the claims that the levy would restore Nesher to a market share higher than 90%, as it had in the past, calling them "unrealistic", because Cement is currently conducting competition with importers.

This is a tough war that the local cement monopoly director Nesher, owned by Len Belvetnik, who previously owned an absolute majority of the cement market in Israel, while today its share of this market is estimated to be about 50%, with cement importers, headed by Symant, controlled by businessmen Sami Katsav, Assi Schmelzer And Shlomi Vogel.

Nesher claims that importers are taking advantage of surplus production created in countries such as Turkey and Greece, in order to import cement at prices even cheaper from the countries of origin, contrary to competition principles, which justifies the imposition of high surcharges on importers; By contrast, importers and the Chamber of Commerce argue that the problem lies entirely with Nesher, which operates as a monopoly and wants to preserve its high profitability. The economic umbrella organizations of both parties are fully supportive of them - the Association of Manufacturers in Nesher and the Association of Chambers of Importers.

The competition authority, which accompanied the moves, has expressed support throughout the non-imposition of the impoundment on the import of cement and does not accept the claims made by Nesher, which currently reflects unfair competition from importers. This is despite the fact that Nesher is no longer a monopoly. Last year, the company applied to the competition authority to cancel its declaration as a monopoly, but it has not yet done so.

In 2017, the flooding investigation began, conducted as part of the Ministry of Economy. As part of the first investigation, the Commissioner of Trade Duties, Danny Tal, determined that all the conditions for imposing the levy were fulfilled. The ministerial advisory committee discussed the report in 2018, but from what was then called "economic considerations", the levy dropped only a quarter of a percent. Last year, Tal was tasked with re-examining the issue.

In April this year, Tal announced its intention to recommend the dumping of dumping levies, to 29.95% for Greece and Turkey-made cement to 17.25%. The advisory committee that examined the report refused to accept its recommendations, suggesting that the levy should remain at only a quarter of a percent.

In the end, Peretz decided to meet the party's recommendations halfway. The decision of the Minister of Economy and Industry requires the approval of the Minister of Finance and the Knesset Finance Committee.

Symant responded that she hopes Finance Minister Israel Katz will change Peretz's decision. "Peretz's decision seeks to bring Israel back to the monopolies and committees. The decision is made in rough seams and completely ignores the conclusions of the trade commission's decision that there is no room for an increase in the levy. .

"In his decision, Minister Peretz is actually imposing a" monopoly tax "that will cost the public purchasers about NIS 100,000 and will cost hundreds of millions of shekels of state spending on infrastructure.

"Thanks to the competition, we were able to develop a new cement and concrete industry in Israel that employs thousands of workers and bring about a 30% reduction in prices. , Cementing and building in Israel, disguising it with a populist argument of "the need to protect the source of livelihoods of Israelis."

The Ministry of Economy emphasizes that the proportion of cement from the price of the apartment is less than one percent, so that the increase in price will not lead to a significant increase in housing prices.

Nesher notebook welcomes nature's decision. "We appreciate the decision, which emphasizes the importance of Israeli industry and its centrality in the Israeli economy," the company responded. "We will work decently and transparently, both for the building of the country and its infrastructure, and in recognition of the importance of the cost of living in Israel.

The Association of Manufacturers said: "In the reality of a million unemployed people, the main task of the Israeli government is to protect those who create jobs in Israel from activities aimed at destroying economic and infrastructure industries. We congratulate Minister Amir Peretz for his decision and expect the prime ministers to understand this and mobilize all power to protect The jobs as well as the independent production capacity of the economy, especially with regard to production for infrastructure development in Israel. "