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  • November 23, 2012

    Gaza op to cost NIS 3B in damages

    Finance minister meets with Bank of Israel governor for first discussion since beginning of fighting, says ‘economy has not suffered significantly so far’

    Gad Lior, YNET

    The damage to the Israeli economy from the past week of fighting in Gaza is expected to total NIS 3 billion (about $760 million), according to data compiled by government ministries, the Manufacturers Association of Israel, the Chamber of Commerce, banks and investment houses.

    Should the ceasefire fail, the damage will grow, particularly ifincoming tourism suffers a significant blow and if the the call up of tens of thousands of reserve soldiers will have to be funded for an extended period of time.

    In such a case, the state budget deficit is expected to grow, requiring further cuts in the welfare and education budgets and other crucial activities.

    “We will compensate all workers forced to stay away from their workplaces in the south following Home Front Command orders, and will take care of proper compensation for parents forced to stay home with their children following the decision to shut down schools,” Finance Minister Yuval Steinitz told Yedioth Ahronoth on Monday after meeting with Bank of Israel Governor Stanley Fischer to discuss the state of the economy following the fighting in the south.

    “We will look into ways to assist the small businesses which encounter difficulties following the fighting,” Steinitz said. “We have already decided to postpone tax payments, the submission of periodical reports and national insurance payments for all residents located up to 40 kilometers (25 miles) from the Gaza Strip.”

    Steinitz added, “Clearly, there are army expenses and property damages we will have to fund, but at the moment the economy has not suffered a significant blow beyond the army’s spending on the mobilization of reserve forces and the fighting and on compensating residents for property damages. The damages are not expected to last for a long time. The economy will not suffer any significant damage.”

    Sources with knowledge of Israel’s economy estimate that the defense establishment will demand NIS 1-2 billion ($250-510 million) in compensation for war expenses. The first “bill”, of NIS 750 million ($190 million), for additional Iron Dome batteries, has already been submitted. In this case, the United States will fund the expense.

    The defense establishment expenses will include the cost of ammunition (every launch of an Iron Dome missile costs about NIS 250,000), the cost of the mobilization of hundreds of tanks and military vehicles for operational activity, the call up of tens of thousands of reserve soldiers, as well as accommodating, feeding, transporting them and arming them with expensive military equipment, thousands of Air Force sorties, fuel expenses to mobilize the forces, etc.

    Economic growth to suffer
    The damage to the civil economy is huge: Tens of thousands of soldiers have been recruited and left their workplaces. In addition, business owners in areas within the missile range are losing tens of millions of shekels in income and economic activity. The loss of proceeds in the commercial and services sector in the south is estimated at more than NIS 100 million ($25 million) a day.

    Major damage has already been sustained by property – houses, roads, public equipment, infrastructure, vehicles, businesses, etc. These damages are already estimated at tens of millions of shekels a day.

    The operation of the National Economy Emergency System will cost millions of shekels. Owners of small businesses will be compensated by the Tax Authority and receive major tax reductions, which will be subtracted from the State’s income taxes.

    The opening, renovation and maintenance of hundreds of bomb shelters will cost local authorities tens of millions of shekels, which will be fully demanded from the state coffers. The expenses of Magen David Adom, fire services, police, ZAKA and other rescue and emergency organizations are estimated at tens of millions of shekels.

    Israel‘s economic growth is expected to suffer by 0.1% each week of fighting. Local production has also been damaged, and tourism is suffering too.

    “The public will have to pay for some of the new war expenses,” said a senior economy official.

    Some 22,893 self-employed people work in the communities significantly affected by the fighting in the south, 1,241 of whom work in communities located up to 7 kilometers (4.5 miles) from the Gaza Strip, whose normal life has been completely disrupted and who cannot work.

    The rest of the self-employed, about 21,652, work 7-40 kilometers from the Strip. These people can work, but are dependent on the existence of a fortified space in their workplace and on finding an arrangement for their children, according to figures released by the Lahav Israel Association of the Self-Employed.

    These figures also reveal that the average daily proceeds of a self-employed person who does not employ hired work stands at some NIS 1,055 ($270), and so if the government compensates the self-employed for the loss of proceeds, the compensation could reach NIS 24.2 million ($6.2 million) a day.

    If the government decides to fully compensate residents located 0-7 kilometers from Gaza and provide an average compensation of 50% to all other residents, the compensation for the loss of proceeds will amount to NIS 12.7 million ($3.25 million) a day.




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  • Posted by Ted Belman @ 10:08 am | 16 Comments »

    16 Comments to Gaza op to cost NIS 3B in damages

    1. vivarto says:

      Once all the losses are counted, Israel will have paid 1.2 billion for killing 120 Palis.
      Now that’s a million per Pali.
      A lot of money can be saved with a better approach:

      Pay any Pali $10,000 for killing another Pali. That’s only 1% of the current cost.
      In fact they’d probably do it for much less. Perhaps as little as 2,000 per head.
      All the money that they earn must be deposited in an Israeli bank.
      They can draw on their Israeli accounts and use it for buying Israeli goods.
      That will be good for Israeli economy. Moreover, After they have killed out each other, the money will still be in the Israeli bank.

    2. Shy Guy says:

      Better yet, calculate the 100s of billions of dollar which the Oslo Agreements and everything which followed have cost Israel.

    3. the phoenix says:

      @ vivarto:
      dear vivarto,
      i LOVE your idea! :) there is simple logical elegance to it.
      but on a more serious note, an excellent idea was put forward by michael levy on another thread.
      his recommendation was:
      “Since Israel controls the monetary flow into Gaza, she should deduct the cost of every Iron dome misslie which Israel used against Gaza from those funds.”

      in all my comments on this blog, i am screaming from the rooftop that israel should not be apologetic about ANY of its actions and if anything, should give a diplomatic (or not) middle finger to the world.

      having said that, michael’s suggestion calls the bluff and the sickening hypocrisy of the WORLD in their thinly disguised veil of wishing the jews to be killed while hiding under the ‘humanitarian cause of the suffering people of gaza’ (spit!).

      let’s say that we could agree in a very farfetched way that the european scum,the black bastard in the wh, and hitlery have a point: do not stop the electricity and water since you are ‘punishing’ innocent people…
      how would they justify the NECESSITY of having alll these rockets by their criminal-savage-musloid-darlings?
      how would they spin the fact that israel must keep on taking it on the chin?

    4. vivarto says:

      Sorry for my error above.
      1.2 billion divide by 120 == 10 million.
      Yes, Israel paid 10 million for each dead Pali.
      That’s obscene.

    5. Donald freyman says:

      @ vivarto:
      Both sides should Invoice the costs of the war to-The White House
      1600 Pennsylvania Avenue NW
      Washington, DC 20500U

      Uncle Sam is the major funder of Israel and Gaza- Uncle Sam pays the bills and ULTIMATELY CALLS THE SHOTS. AND DON’T FORGET THAT IMPORTANT FACT.

    6. vivarto says:

      @ Donald freyman:
      The tragedy is that the American financial help to Israel is hurting Israel.
      Firstly America gives more money to the genocidal enemies of Israel than to Israel. Many times more when counted as the percentage of their GDP.
      Secondly, America then has the power to control Israel.
      For example American “help” destroyed the Israeli fighter jet project.

    7. the phoenix says:

      @ Donald freyman:

      Uncle Sam is the major funder of Israel and Gaza- Uncle Sam pays the bills and ULTIMATELY CALLS THE SHOTS. AND DON’T FORGET THAT IMPORTANT FACT.

      Herr freyman,… just STFU

    8. Laura says:

      Uncle Sam is the major funder of Israel and Gaza- Uncle Sam pays the bills and ULTIMATELY CALLS THE SHOTS. AND DON’T FORGET THAT IMPORTANT FACT.

      They provide funds to Israel under the condition that Israel uses the money to buy military hardware from the United States. The money has already gone back into America. So screw you, freyman. Enough with the canard that the U.S. “gives” aid to Israel. It doesn’t give Israel anything, it ensures a reliable, lucrative market for American weaponry.

    9. Donald freyman says:

      @ Laura:
      I hate your constant libeling of America. Without the unflinching support, and assistance (diplomatic, military, technical and psychological) from the U.S., Israel would not be Israel today. Israel would not EXIST. Bibi knows it, most Jews know it all the Arabs knows it, But poor little Laura does not know it. Please stop trying to rewrite history.

    10. vivarto says:

      @ Donald freyman:
      It is not as simple as you say.
      I am not 100% that this is correct.
      America forced Israel to give Sinai to Egypt in 1949. Then again in 1956.
      Then again under Carter Israel was forced to give Sinai to the Arab enemies.
      The 1967 war was won with French fighter jets, rather then American.
      Israeli nuclear program was developed in cooperation with French, not American.
      Israel may be better off diversifying its weapon suppliers.
      Russian weapons are fine and much cheaper.

    11. yamit82 says:

      Three billion Israeli shekels is less than 1/2% of our annual GDP. Very tiny Bump to overcome. The Amt of Dollars Obama promised to advance Iron Dome and Arrow missile defense more than compensates to Israel any monetary expenditure for 8 days of conflict. World Jewry have increased donations and bond purchases. In the end on a macro level Israel will probably make a profit.

    12. lois lane says:

      @ yamit82:
      Yam- Tsk..Tsk..Tsk. Such language. Even a tough old broad like Laura ( who no doubt has been around the block several times) has been shocked out of her knickers( no mean feat) reading F—ck–g assh.. Wash your mouth out in sulfuric acid, at the very least, For shame, for shame.

    13. yamit82 says:

      @ lois lane:
      lois lane Said:

      Yam- Tsk..Tsk..Tsk. Such language. Even a tough old broad like Laura ( who no doubt has been around the block several times) has been shocked out of her knickers( no mean feat) reading F—ck–g assh.. Wash your mouth out in sulfuric acid, at the very least, For shame, for shame.

      Hymie I knew you would like it 😛