Israel's Treasury Minister Says New Natural Gas Regulation Not Good Enough
On Friday, Israeli Treasury Minister Moshe Kahlon weighed in on the debate surrounding the natural gas regulatory framework in a way that might rattle Israeli politics and delay the framework's approval.
In a short interview with Walla, a popular Israeli website, Minister Kahlon declared that the new regulatory framework, advanced by the Prime Minister and already approved by the government, is not good enough. "If you would ask me if I think that the framework should be improved–I think that Israel citizens deserve more and they are entitled to get more," the minister said. "Regrettably I cannot deal with this matter."
Minister Kahlon's short statement was made at critical juncture, on the eve of a two-and-a-half week marathon debate in Knesset's Economy Committee on the framework. Eitan Cabel, the committee's chairman and an opposition member of the Knesset (MK), has promised to fulfil Minister Kahlon's wish to bring Israel's citizens a better framework.
Before Israel's latest elections, last March, Minister Kahlon, who became a success story in Israeli politics following a successful reform he implemented in the mobile phone market when he served as the Communication Minister, promised in his campaign to dismantle the natural gas monopoly. However, after he was nominated as Treasury Minister, he made a U-turn and announced that because of his friendship with a businessman named Kobi Maimon, he had a conflict of interests and had to give up his powers in this matter. Since then, he has refused to take any action and to take part in any vote, either in the government or in the Knesset, on natural gas issues. Just last Friday he broke his silence--possibly for a reason.
His friend, Mr. Maimon, is an adviser (rumours suggest a controlling shareholder) in Isramco, a 30% shareholder in the Tamar gas field. Isramco was the only energy company in Israel that has claimed the framework isn't good. Isramco's main concern is that Leviathan will be developed at the expense of Tamar. The possibility remains that Treasury Minister Kahlon's latest involvement in the natural gas saga might help his friend if it leads to another upheaval in what many in Israel consider as a sordid saga.