According to the Chair of the State Control Committee Amnon Cohen, a great amount of money has been invested into industry, but it is dispersed and wasted instead of being focused
The state has invested a lot of money in order to encourage industry and sources of business in the periphery, but it has become clear that most of the investment has been wasted due to a lack of planning from the start, arguments between government ministries, a lack of information and a lack of examination. This all arose from a State Comptroller report. MK Cohen said that ”The state is indeed investing a lot of money, resources and attention, but because of a lack of preparation, focus and dependency on outside information, much of the money has been wasted and spread out.”
The industrial parks are spread amongst a few local authorities who have split the management of the area. The management of development areas in the Ministry of Economics works in the area to carry out the government policies and beginning from 2008, it has received a budget of 150-200 million NIS every year.
In his examination, the State Comptroller found that some of the industrial areas are only half filled and their economic potential is not being met. The ministry is not checking if the activities of the Industrial Parks Development Administration are efficient or if they are contributing to the economic and social advancement in the periphery. The Administration has also not defined measures to examine the success or failure of the industrial area to achieve the goals that it means to achieve. Furthermore, the administration has not examined the economic efficiency of the parks and has not learned lessons from its work.
According to the State Comptroller, the Ministry of Economics is only partially involved in the planning process and has no master plan for the development of industry. The ministry is not working in order to ensure that the state fills its industry potential. The Comptroller also found that the Ministry of Economics frequently makes decisions influenced by instances of pressure put upon them by the heads of the local authorities.
There will be a meeting discussing the report this coming Wednesday at 9AM and will be broadcast on the Knesset`s website.