Prime Minister Naftali Bennett and Minister of Economy and Industry Orna Barbibai announced today (Thursday) that they intend to bring to the government’s approval the reform to shorten processes in industry and its framework, ease bureaucracy and regulation in the fields of planning and construction, and promote planning certainty for industry in Israel
* The duration of the establishment of a plant in Israel will be shortened to two years instead of 5-4 years in the current situation.
* The first permit licensing center of its kind will be established in Israel, which will reduce the time of issuing permits by 50%.
* As part of its activities, the center will also deal with the identification and treatment of barriers.
* The time for issuing a building permit will be reduced from two years to only 3 months (for 30% of applications).
* Significant emphasis will be given to the aspects of the environment and maintaining safety.
Prime Minister Naftali Bennett: "Wonderful news for the planning and construction industry in Israel. For the economy to grow and the economy to prosper, the state needs to allow business owners to run ahead and interfere as little as possible. Entrepreneurs are the living spirit and we need to help them, not delay them in unnecessary and complicated procedures. For years the state has made it difficult in these contexts, now we are releasing the cork and taking another step for the business sector in Israel".
Minister of Economy and Industry, Orna Barbibai: "Improving the business environment and reducing the regulatory burden is a national goal that is designed to significantly shorten times, to enable industry and the business sector to compete fairly and lead the economy to growth. I welcome the ability to convene this complex project, based on professional collaborations between the Ministry of Economy and Industry and the Prime Minister’s and Home Affairs offices.".
The government is expected to approve at its weekly meeting this coming Sunday the proposal of the Prime Minister and the Minister of Economy and Industry to strengthen Israeli industry in the areas of planning and construction. According to the current situation, the process of establishing a factory in Israel takes between 4-5 years and it stems from a complex process that includes various approvals from dozens of government and local authority bodies, along with locating land available to industry. As part of the committee’s activities, the difficulties faced by developers interested in establishing or upgrading a plant were analyzed: locating and allocating land, statutory planning and obtaining a building permit.
The decision includes a pilot, in the framework of which the first permit licensing center of its kind will be established in the north of the country. The center’s activities are expected to reduce the length of time it takes to issue a building permit for new and existing plants by about 50% of the current situation. The center will employ dedicated personnel who will be allocated for the benefit of the move and will include representatives of the Ministry of Environmental Protection, the Fire Commission and the Home Front Command, in cooperation with the local committees on behalf of the local government. This is a unique model that brings all government and local government actors to cooperate and work together, in a way that puts the entrepreneur at the center and saves him from running around between the various factors, reduces unnecessary costs, provides certainty and shortens schedules. This unique model will also deal with the identification of horizontal barriers in the process of building a permit for industry, and a recommendation to the relevant parties on the solution of the barriers.
Another significant move that will be promoted as part of the reform is the promotion of regulations exempting from building permits for industry. In order to invest in innovation or regulatory adjustments, which the industry frequently needs, as opposed to residential buildings, it is necessary to streamline the process so that the industry can adapt itself easily and efficiently to the changing reality.
The exemption regulations will shorten the time of issuing a building permit for a number of defined works, from two years to only three months, and will respond to about 30% of applications in the industry. The regulations allow for an exemption from the permit issuance process for common facilities in factories such as warehouses, technical facilities, operating areas and more, thus shortening the time to start construction from two years to only three months. In order to safeguard the public interest, the regulations establish a reporting procedure to the local committee before and after execution, in order to ensure the proper implementation of the regulations. In addition, the procedure emphasizes safety and environmental issues, so that on the one hand, there is relief in regulation of the industry and on the other hand, strict adherence to safety and the environment is maintained.
The decision also includes a policy document for detailed planning of industrial areas, which focuses on resolving common barriers in industrial planning in Israel, with an emphasis on environmental regulation, adapting statutory planning to the requirements of building licensing, transportation and more. In addition, a working team will be convened to regularly improve and accompany real estate issues and planning and construction for industry, which will consist of representatives from the Ministry of Economy and Industry, the Israel Land Authority and the Planning Administration.