[Dr. Aaron Lerner - IMRA: Until the cabinet decision today, DM Barak was
effectively stopping almost new activity of the Rural Settlement Division in
Judea and Samaria. The decision today strips him of his veto power in this
matter.]

Cabinet Communiqué
(Communicated by the Cabinet Secretariat)

At the weekly Cabinet meeting today (Sunday), 19.6.11:

1. Prime Minister Benjamin Netanyahu made the following remarks:

Today, the Cabinet will authorize a ministerial committee to deal with the
national housing commissions law. There is a housing shortage in the State
of Israel. Many young people are obliged to live with their parents, and a
few with their grandparents. Young couples, discharged soldiers and
students feel that their dream of purchasing an apartment is moving further
away due to rising prices. Prices are rising because there is a shortage of
apartments in the state of Israel. There is no supply of apartments because
not enough apartments are being planned, and not enough are being marketed.

We started to resolve the marketing side with an historic decision, a
historic reform, when we signed – several weeks ago – a major reform at the
Israel Land Administration. We still have to deal with the law on pensions
for ILA employees and I hope that this will be done during the Knesset
summer recess. But even this giant reform is not enough.

There is one more condition that must be carried out together with those
steps that we have already taken. We mean a reform of apartment planning.
Completing the legislative process for this reform will take at least a year
or two. Many factors regarding environmental protection and others, are
lengthening the process.

It is for this reason that we would like to bypass the bureaucracy for 1.5
years with the housing commissions law, which will be submitted to the
Cabinet today. I am certain that the Cabinet will authorize a ministerial
committee to quickly deal with the law so that the permanent planning reform
might be completed. We will be able to close the gaps and bring about
apartments.

We would like to bring approximately 10,000 apartments per annum. We have a
shortfall of 80,000-100,000 apartments, which significantly hurts young
Israelis and we are simply going to fill the shortfall by an emergency
action, i.e. the housing commissions. Therefore, I am requesting not only
ministers' support today but also MKs' support during the expedited
legislative process, which I would like to complete before the summer
recess.

If we have both rapid planning and quick marketing, we will be able to
resolve the State of Israel's housing problems. This will not happen
overnight by the way, but the giant reforms that we enacted in 2003-2004
have proven themselves vis-à-vis the Israeli economy. We will do exactly
the same thing with basic reforms of the housing market and in the future we
will see positive results. The State of Israel and the housing market will
benefit from this for many years. These are fundamental reforms."

Prime Minister Netanyahu also said: "I have spoken with ministers regarding
the cultural institutions in Kiryat Shemona and we have reached agreement on
how to deal with the issue so as to resolve the matter, within a week. I
have instructed Prime Minister's Office Director-General Eyal Gabai to bring
about an agreed-upon solution that, I think, will solve the problem. I
updated Kiryat Shemona Mayor Nissim Malka on this decision."

Prime Minister Netanyahu referred to the "Turning Point 5" National Home
front Exercise: "The "Turning Point 5" National Home Front Exercise will be
held this week. The Government has invested greatly in home front defense.
It is the new front. I would like Home front Defense Minister Matan Vilnai
to say a few words."

Minister Vilnai said: "Indeed, this is the fifth year that we have held this
exercise. The exercise regards extreme situations such as massive firing
deep into the State of Israel. I assume that the State of Israel's
deterrent capability, its ability to exact a high price from the other side,
is clear to the other side, which will avoid this as much as possible. It
understands why it should avoid it. In any case, we must hold the exercise
and it is designed, first of all, for those who sit around this table, so
that we might coordinate among ourselves, take responsibility and also
emphasize national infrastructures. All of our national infrastructures
will participate in the exercise as will one-third of local councils, which
are our cornerstones. There will be staff exercises that we will all be
involved in. I see that ministries are holding discussions led by their
ministers; this is very important. Home Front Command units will hold major
field drills. This exercise will be all throughout the country. On
Wednesday, 22.6.11, there will be two sirens, at 11:00, when people will be
at work; everyone will have to ask himself, "What must I do?", and at 19:00,
when people are at home with their families, what are they to do. This is
an exercise. I look around the world and nowhere are there exercises of
this scope. It and its success are our security."

2. Pursuant to Article 31b of Basic Law: The Government, the Cabinet decided
to transfer to the Prime Minister the Defense Minister's responsibilities –
under Article 19 of the 1985 Budgetary Foundations Law – for the budgets of
units attached to the Prime Minister's Office, the functions of which are
related to the security of the state and its residents. This decision will
be submitted for Knesset approval.

3. In continuation of its 22.7.07 and 19.7.09 decisions, and pursuant to
Article 31d of Basic Law: The Government, the Cabinet decided to transfer
responsibility for the World Zionist Organization Rural Settlement Division
from the agriculture and Rural Development Ministry to the Prime Minister's
Office. This decision will be submitted for Knesset approval.

[AL: from the Hebrew explanation: "in Section D government resolution No.
601, the words "will be brought for pre-approval of the Defense Minister and
if necessary the approval of the Prime Minister" shall be deleted and
replaced with: "shall be made in coordination with the Defense Minister.
That is to say that coordination does not require consent."

4. The Cabinet approved the draft planning procedures to accelerate
residential construction law, which was initiated and advanced by Prime
Minister Netanyahu.

5. Jewish People Policy Planning Institute representatives briefed ministers
on various data and trends regarding the challenges facing the Jewish People
both in Israel and around the world. The JPPPI officials discussed – inter
alia – demographic and geopolitical developments, the global economic
situation's effects on the Jewish People, assimilation, the campaign to
delegitimize and isolate the State of Israel, strengthening ties between
Israel and Jewish communities around the world and increasing education.
The officials also discussed the JPPPI's future plans, including the
creation of tools to analyze the trends and developments affecting the
Jewish People.