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Finance Committee approves aid expansion for North

 
 A building in Kiryat Shmona that was hit by a Hezbollah rocket  (photo credit: Eyal margolin / Flash 90)
A building in Kiryat Shmona that was hit by a Hezbollah rocket
(photo credit: Eyal margolin / Flash 90)

Compensation plans for residents and businesses in Israel's north have been previously criticized for providing financial aid retroactively.

Expanded compensation for businesses in Israel's north was approved in the Knesset Finance Committee on Wednesday.

The expansion of aid includes making businesses in the Upper Galilee eligible for the full aid package offered to northern businesses for the first time, the Knesset said.

The aid was approved through August at the demand of the committee, after the original regulations suggested only included May and June, said the committee.

Compensation plans for residents and businesses in Israel's north have been previously criticized for providing financial aid retroactively, leaving beneficiaries struggling to cover the costs of current months while waiting for aid.

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The committee also called on the Finance Minister to reexamine expanding compensation to newly included areas to previous months, and to communities who are farther away from the frontlines, but whose businesses are still significantly impacted by the war.

 Head of the Finance committee MK Moshe Gafni speaks during a discussion on the state budget at the assembly hall of the Israeli parliament in Jerusalem, March 12, 2024.  (credit: YONATAN SINDEL/FLASH90)
Head of the Finance committee MK Moshe Gafni speaks during a discussion on the state budget at the assembly hall of the Israeli parliament in Jerusalem, March 12, 2024. (credit: YONATAN SINDEL/FLASH90)

Committee head, UTJ MK Moshe Gafni welcomed the expansion of aid, but said solutions must be provided to additional areas.

Roey Cohen, representing Lahav - an organization of freelancers and businesses, expressed frustration to the committee over the government's compensation, and the failure to include aid for previous months for areas not previously included in the plan.

Retroactive compensation 

"There are businesses who are not getting compensation because the Finance Minister is preventing this from them, when everyone knows that they deserve it," he said


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"What is the Finance Minister's problem with saying that a business that lost 40% and can prove it will get compensation? That is all we are asking for."

"You managed to expand the [area eligible for aid] from the conflict line to nearly 30 km. [from the border]," he said, asking why it was not possible to give them compensation from January.

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"If they deserve it for May, they deserve it previously as well" he added.

The Finance Ministry said that they will continue to examine how aid can be given and to examine some of the points and criticisms raised in committee.

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