Economic damage from no Palestinian entry at NIS 3b/month

During a Knesset debate today, a representative from the Ministry of Finance warned of the significant economic damage that would result from not admitting Palestinian workers. Asaf Geva, a manager at the ministry, estimated that the monthly economic loss would amount to approximately NIS 3 billion ($826 million).

The debate, initiated by MK Eliyahu Rabivo of the Likud Party, aimed to address the situation and policy regarding Palestinian workers in Israel and urge the Israeli government to make a timely decision on the matter.

The discussion involved ministers, a representative of the Coordination of Government Activities in the Territories (COGAT), the Yesha Council, heads of authorities in the West Bank, CEOs of government ministries, Knesset members, and other senior officials.

Rabivo emphasized the need for a decision, stating that delaying it could significantly harm the economy. He also proposed opening the doors to foreign workers from various countries to compensate for the potential shortage in industries such as construction, agriculture, and cleaning.

The MK further emphasized that the government must choose whether to rely on Palestinian workers or not, following the principle of bilateral agreements with foreign countries. He criticized the lack of clarity regarding the admission of workers from Gaza, pointing out that even though a closure had been imposed in the West Bank area, workers from Gaza still entered, often ending up in conflict zones, hospitals, and hotels.

MK Moshe Abutbul, Deputy Minister of Agriculture, supported the need for a clear decision and highlighted the importance of workers in sectors such as agriculture, construction, and nursing.

Nitzan Tzuk, head of a branch of the National Security Council, explained the current situation, stating that before the war, 160,000 Palestinians entered Israel, but since the war, the West Bank has been closed with exceptions only for essential enterprises. He added that the NSC had developed new tests and potential guidelines to allow the entry of up to 80,000 Palestinians.

Raul Sargo, president of the Contractors Association, expressed the dire straits the industry was facing, with only 30% productivity and 50% of construction sites inactive. The impact on Israel's economy and housing market was significant, potentially affecting a million people directly and countless indirect industries. He stressed the urgency of the situation, warning that the state's income from real estate taxes may suffer, posing a major risk to citizens and possibly leading to legal claims against the state.

In conclusion, the debate highlighted the urgent need for a government decision on admitting Palestinian workers. The economic consequences of not doing so could result in a monthly loss estimated at NIS 3 billion. The discussion also emphasized the importance of finding alternative solutions, such as allowing foreign workers from other countries to fill the labor gap in key sectors. The state's economy and the livelihoods of many people depend on addressing this issue promptly.