Smotrich Threatens: No Budget Without 'Dairy Sector Reforms'

SadaNews - Israeli Finance Minister Bezalel Smotrich threatened the government of occupation leader Benjamin Netanyahu not to support the budget and not to guarantee the survival of the government coalition if a plan to reform the dairy sector is not included in the accompanying settlement law for the budget. This threat came during communications held on Tuesday evening, according to reports published in Hebrew media.

Following this, Netanyahu made the decision to push the reform through the settlement law, despite the objections of the government’s legal advisor. It was also decided to transfer the discussion of the law to another parliamentary committee instead of the Economic Committee, which is headed by Knesset member David Bitan, who opposes the plan. This transfer was considered a procedural step aimed at reducing centers of opposition within the legislative process.

Netanyahu spoke with Knesset members from his party who expressed reservations about the reform and urged them to support transferring the law to a committee aligned with the finance minister’s position, promising that subsequent legislative stages would see compromise amendments, including increased compensation for affected dairy farmers.

The two steps, including including the reform in the settlement law and changing the committee's path, are considered crucial by Smotrich to expedite approval and bypass objections. However, legal sources indicated that this could open a confrontation with the Knesset's legal advisors and expose the plan to legal challenges.

In parallel, milk producers' unions announced a temporary freeze on their protest actions related to reducing supply to retail outlets, in response to a request from the Israeli Minister of Agriculture, aimed at allowing for the exhaustion of communications and attempts to reach a solution. However, they confirmed that strikes could resume if a legislative process deemed sound does not progress and announced their intention to carry out a wide protest day in front of the Knesset.

The proposed reform plan includes abolishing the planning system and production quotas, reducing the target price by about 15%, and removing large producers from the sector, which could lead to the closure of hundreds of farms, in addition to dismantling the Milk Council and opening the market to free imports by eliminating customs duties over a specified period.