The Supreme has given the Ministry of Transport two weeks to permit the Plonter in the reciprocal procurement – vehicle and transport

The Supreme Court granted the Ministry of Transport two weeks, starting this Sunday, to reach agreement on a quick mediation process between it and the Finance and Economy Ministries on the reciprocity and preference of the country’s produce in public transport tenders. The decision was made at a hearing Monday, following the Department of Transportation’s appeal for a ruling by the District Court last July. The composition of the judges at the top included the president, Esther Chai; Manny Mazuz and Uzi Fogelman.

The controversy – whether the tender law that includes reciprocal procurement applies to public transport tenders – has been in legal battles and inter-agency struggles for about two years. It prevents the purchase of more than 2,000 buses and their expansion by about 40%.

The reciprocal purchase obligation stipulates that a foreign supplier that has won a public body tender in Israel should make a purchase and local investment. The controversy is whether this duty also applies to bus tenders. That is, is it the purchase of goods (buses) or service.

According to the Finance Ministry’s position, which bus importers support, public transport is not profitable and the demand for reciprocal procurement will hurt competition. The Ministry of Economy, on the other hand, argues that reciprocal procurement is required to protect Israeli manufacturing, crate and automotive industries. If the duty is applied, overseas manufacturers will be required to make about 35% of the cost of buses in Israel.

“Made in Israel”, which also appears in the Tender Law, is defined in the law as a product of which at least 35% of it is produced in Israel. Unlike in many developed countries, buses in Israel today consist of a imported ready-made chassis, which accounts for about 50% of the vehicle, on which the vehicle is assembled in crate and carriage factories. This has many economic effects, among other things, because buses imported from China are cheap in about 15% of those made up in Israel.

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Supreme CourtPhoto: Oren Ben Hakon

Last July, the Jerusalem District Court ruled that the parties must reach a compromise outline. Indeed, a compromise was reached for 830 new and less polluting buses – the procurement procurement that Egged and Dan are committed to in accordance with agreements with the state.

But the Ministry of Transport’s negotiations with bus importers have come to a dead end, due to opposition from China Motors importer Itzik Kaufman. The state representative confirmed in a recent hearing yesterday that the parties were close to a compromise outline and that one of the parties (whose name was not mentioned but this is Kipman) opposed it.

Even more significant tenders for the Israeli public, for which the parties were not at all close to reaching agreements, are the seven bus tenders stuck following the controversy over the reciprocal procurement. These are expected to be significant service additions to the existing 40% bus system and include the purchase of an additional 1,250 buses. This is a necessary step to meet demand and reduce severe congestion on the roads – a move that will stall for two years following disputes between the finance and economic ministries, Israeli bus industry companies and bus importers. Prominent auctions out of the seven are two huge auctions to double the number of buses in Jerusalem.

Yesterday, dozens of public transport passengers from Beit Shemesh and Jerusalem demonstrated a demand for the release of transport tenders. “We demand that the court immediately release the stuck tenders, expedite their implementation and release the public transport passengers from the tycoons,” said Yossi Saidov, co-founder of 15 Minutes to Improve Public Transport.

“The new tenders are critical for public transport travelers and for the development of the cities in which they are supposed to operate,” Saidov adds. “For example, in Jerusalem, the auction is expected to double public transportation services, creating fast and new lines that travel directly from the residential neighborhoods to the city’s working areas on Begin Road. The other auctions throughout the country will add service to all types of population: ultra-Orthodox, secular, settlers and Arabs. Hundreds of thousands of passengers every day causing huge damage to the economy. “

The mayor of Beit Shemesh Aliza Bloch, who is also planning to improve public transport in the city, was also present. “It is not possible for city residents to continue to be hostage to the state of transportation in the city,” Bloch said. “The tenders are stuck, the need for public transportation services in Beit Shemesh is on the rise, and the auction that is stuck is no longer relevant to the needs of the developing city,” added Nathan Ruinstein, the date of operation of the residents of Beit Shemesh.