Itongadol.- The Knesset Constitution Committee approved the amendment to the Mandatory Tenders [Preference for Israeli Products] Law, giving greater preference for manufacturers producing Israeli-made goods in Sderot and the Gaza envelope communities when competing against overseas suppliers in government tenders on Monday.
"The industrialists in the Sderot and Gaza envelope region are struggling with a complex, difficult daily reality. The benefits are aimed, among other things, at aiding manufacturers in Sderot and the Gaza envelope communities cope with the difficulties resulting from the security situation in the region, in the wake of Operation Protective Edge," stated Economy Minister Aryeh Deri.
The amendment to the Law joins with other elements of the Economy Ministry\’s plan for strengthening the economy and civilian resilience in the Sderot and Gaza envelope communities, which includes benefits to production plants from the Investment Center, increased grants from the Chief Scientist, fortifying day care centers, giving increased subsidies for families, improving industrial infrastructure, and more.
According to the amendment, which is intended to help manufacturers in the Sderot and Gaza envelope regions cope with the security and economic difficulties they face, Israeli-made goods that are manufactured in the Sderot and Gaza envelope region will be entitled to a 20 percent preference in the price criterion when competing in a government tender against an overseas supplier, as opposed to a 15% rate as currently determined by the regulations.
The amendment also includes additional definitions regarding the location and production source in the Sderot and Gaza envelope communities.
According to the government resolution, the proposed amendment will be enacted as an emergency measure for a 5-year period, from the day the amendments are applied.
"It is both important and urgent to quickly implement the amendments, so as to provide tools for manufacturers to participate in the tenders and help them rehabilitate their businesses from the damage caused by the security situation in the region,” added Deri.