Instead of holding the weekly cabinet meeting at the Prime
Minister's Office, this week's meeting was held at the
Menachem Begin Heritage Building in the Mishkanot Shaananim
neighborhood just outside the Old City to mark the 40th
anniversary since East and West Jerusalem were united under
Israeli sovereignty.
Jerusalem Mayor Rabbi Uri Lupoliansky, who took part in the
meeting, warned against the demographic collapse of the city
and the loss of a Jewish majority.
"Instead of Jewish sovereignty Jerusalem would be headed by
Hamas, which knows it can conquer Jerusalem demographically
in just 12 years," says Rabbi Lupoliansky, calling on the
government to present a methodical plan to maintain the
Jewish majority in Jerusalem rather than just piecemeal plans
here and there.
Jerusalem Affairs Minister Yaakov Edri advised the cabinet
members to carefully consider the Mayor's remarks. "The
threat is very serious and significant for the Jewish future
of Jerusalem. We must act through a comprehensive plan to
strengthen the population of the capital of Israel."
Internal Security Minister Avi Dichter said all government
offices and institutions should be moved to Jerusalem,
especially the Defense Ministry, saying this would strengthen
the city, boost employment and drive the local economy.
Prime Minister Ehud Olmert said he intends to seek government
approval for a series of decisions aimed at buttressing
Jerusalem, investing a total of NIS 630 million ($160
million). The proposals include canceling employers' taxes at
nonprofit organizations, renovating the Atarot Industrial
Zone, moving all government offices and institutions to
Jerusalem within eight years (except for the Defense Ministry
and the Agricultural Ministry) and constructing new buildings
to house the courts and a school for Jerusalem studies.
Raanan Dinur, director-general of the Prime Minister's Office
and former director-general of the Jerusalem Municipality
when Olmert served as mayor, said that the government wants
"to guarantee the strength and power of Jerusalem. The plans
brought before the government, especially the plan to cancel
employers' taxes and move the government offices to
Jerusalem, would help a great deal in achieving this
goal."
The cancellation of employers' taxes would apply at all
social and chessed organizations, educational and
cultural institutions, the local authority and more. If
passed, the decision could bring tens of thousands of
employees to the city and employers would pay lower taxes,
allowing them to devote more funds to activities or raising
salaries. According to estimates this tax break would come to
over NIS 300 million ($75 million) per year.
The plan to move all government offices entails not renewing
rental contracts in buildings rented by the government
outside of Jerusalem. Almost all rental contracts for
government offices are scheduled to expire by the year 2015.
According to estimates this would have a profound effect on
growth and development in the city, increasing the number of
jobs and municipal revenue, allowing the city to invest more
money into resources for the benefit of local residents. Most
of all it would prevent out-migration by giving residents
reasons to stay.
The construction of a new court building and a school for
Jerusalem studies would also bring in jobs for contractors
and others and contribute to the local economy.