”Five years have passed, and prices have not gone down, and in certain cases they have gone up,” members of the Finance Committee told government representatives during Monday`s meeting marking five years since the launch of the social protest in Israel.

The committee members slammed Finance Minister Moshe Kahlon for ”being afraid to fight the monopolies,” and members of Kahlon`s Kulanu party said in response, ”We are advancing many reforms, and we can already see the results on the ground.”

Finance Committee Chairman MK Moshe Gafni (United Torah Judaism) said ”with all due respect to the Finance Ministry and talks of reform, in practice the prices have not gone down.”

MK Uri Maklev (United Torah Judaism) said, ”Five years after the `cottage cheese` protest, and not only have the prices not gone down, in real terms they have increased, because the prices of commodities around the world have dropped 30-50 percent, and this is not being reflected in the Israeli market. Prices are 20% higher, on average, than in Europe. The prices of inputs have also decreased, as has the price of gas and energy, but this has not had any effect. What happened is that the monopolies and chain stores have gained huge profits at the consumers` expense.”

Finance Committee Chairman Gafni: ”In the absence of substantial government activity, the committee will take the lead on tackling the high cost of living”

(Committee Chairman MK Moshe Gafni)

MK Manuel Trajtenberg (Zionist Camp) explained that ”The expense basket of a young family has three main components: housing, education and food. In housing the prices have only gone up; in education there has been some progress regarding ages 3-4, but not a week goes by that we are not asked to answer questions regarding family expenses related to education. An average family with three children spends some NIS 5,000 a month on education, day care, afternoon child care, camps, and more. As far as food is concerned, some positive steps have been taken, but that nut has not been cracked and, ultimately, too much power has been left in the hands of a small number of companies.”

MK Yitzhak Vaknin (Shas) charged that the Trajtenberg Committee, which examined and proposed solutions to Israel`s socioeconomic problems, was established only to ”ease tensions” and ”take the wind out of the social protest`s sails.” In practice, he said, ”nothing has been done.” Vaknin called to restore the supervision on prices, saying ”in the absence of competition, this is the solution.”

MK Oren Hazan (Likud) said the problem is ”greediness.” The chain store owners and the major wholesalers ”earn tens of millions on the public`s back,” he stated. ”And meanwhile, here in the Knesset, people are strong at talking. The finance minister can make bold decisions and change the market without fearing his friends the tycoons. Here in this committee we have the power to advance a plan to dissolve the monopolies. We will enact a law to that effect.”

MK Roy Folkman of Kulanu said, ”We have waged an all-out war on the monopolies. In Israel there is a very high level of centrality, and a finance minister who does not fear them arrived. We launched reforms in the importing of fresh meat and the prices have dropped. With fish as well, we created parallel importing. For years no one has dared to deal with the monopolies, which have a strong hold in Israeli politics, and we have started doing so. A change can already be seen in toiletries, food items, children`s toys and other items. The fight takes courage and ability. Increasing competition is the only way. Supervision does not work; they`ll only raise the price of other items. The business sector is more sophisticated than the regulator.”

MK Rachel Azaria, also from Kulanu, said ”We are making great efforts, but every issue that reaches the Knesset gets stuck there. Every reform encounters objections, and it is nearly impossible to pass anything, including the fight against black capital. I belong to the finance minister`s faction and it is my job to pass things, but nothing can be advanced; there are always dramas here; in some cases it’s the kibbutzim, in others kashrut – everybody has an interest. We have to be brave and deal with the basic problems: monopolies, quotas and interested bodies that prevent change. In the Arrangements Law we will introduce important reforms, and then we will see if all those who are yelling here will support them. We are the cause of the high prices. We have an opportunity to lower the cost of living, and I hope everyone here will support [the measures].”

MK Eitan Broshi (Zionist Camp) said: ”There is something here that is not connected to the `cottage` protests, and that is the income level of working people and which basket they can afford. When there were tax breaks we said the ability to deal with expenses should be increased. We also have to talk about income. The `cottage` protest was also about low income. A country that lets Rami Levy light [an Independence Day] torch is a country that has gone crazy.”

MK Yulia Malinovsky (Yisrael Beitenu) argued that if the housing and education costs are reduced, ”then we will be able to deal with the food prices, although they are high.” MK Orly Levi-Abekasis (Yisrael Beitenu) said, ”The wrong moves are being made. With every quota and tax reduction the state is giving up on revenues, but the consumer does not benefit. The state gives up on hundreds of millions of shekels, the farmers and the kibbutzim are neglected, but no one can promise that this discount eventually reaches the consumer.”

Committee Chairman MK Gafni said at the meeting`s conclusion that ”with all due respect to the Finance Ministry – and I am pleased with the reforms you are implementing – the prices have not gone down. The price for farmers is lowered, but the consumer does not benefit from it. The Arrangements Law is bad. It creates bad legislation and hurts the Knesset. It cannot be used to reduce prices. The Finance Committee, on all its members, from both the coalition and opposition, will tackle the cost of living issue. We will not wait for the government.”