The anger and disappointment at the
move of the water systems from being under the control of the municipal authorities to external companies has been festering for a while. The main result has been the increase in the price of water, along with the additional charge of VAT tax of 16% that was not charged when under the municipal authority. Cynics say this was done as a way of giving out more jobs to cronies, with the price hikes and taxes necessary for the purpose of being able to rent or build new buildings to house the new water control companies and pay the bloated salaries of the management teams.
While some mayors implemented the move immediately, claiming their hands were tied, other mayors refused to cooperate, saying it is detrimental to the average citizen, and took the risk of breaking the new law in refusal to establish said water companies. At the same time, the Interior Minister came under consistent lobbying and pressure to reverse the decision and integrate the water controls back to the municipal authorities, and closing the external water control companies.
The fight seems to be over. An agreement was reach between the local authorities and the Finance Ministry that will put the water authorities back under the control of the municipal authorities. These water companies will become "municipal companies" under the direct authority of the mayor.
Bill payment will go back to the responsibility of the
iryah, the municipality, thus canceling out the double collection systems that had been established - the already existing municipal system along with the newly created water authority systems.
The amount of how much the price of water will be reduced is still under discussion. The government wanted to approve a 5% reduction in prices, while the representatives of the local authorities wanted to implement a price reduction of 30%.
(source: Walla News)
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ReplyDeleteIsrael Private Tour. Nice Blog...
Do you think they would refund the VAT for the past year that it had been in place?
ReplyDeleteLet it go on record that our dear mayor was one of the first to open Mei Shemesh for his cronies.
ReplyDeletecollecting water fees was a big cash cow for the municipalities. they didn't always turn over the money either. occaisionally there were stories about whole towns having their water cut off. why should someone's water be cut off when he paid his bill? because the city or moetza used the money for something else.
ReplyDeletethis money was also supposed to pay for upkeep on the water infrastrcuture. never happened
The cronyism with setting up Mei Shemesh was obvious, but their response to water issues (leaks pouring into the street) is far more efficient than when it was part of Balayish's portfolio.
ReplyDeleteThat said, their billing system has some definite problems, for example creating "meshutaf" charges when there are none. And getting resolution via the Mei Shemesh billing staff is far more difficult than from the iriyah staff.