Lean Dulzin, chairman of the Jewish Agency and World Zionist Organization Executives; urged the government today not to hurt Project Renewal during the projected cuts envisioned under the austerity program announced last week by Finance Minister Yigal Hurwitz.
Addressing the Jewish Agency Executive meeting here, Dulzin warned that if the project were frozen, it would actually be abolished. This, he said, would cause further difficulties in Israel’s poverty neighborhoods and constitute an insult to contributors overseas. Dulzin said he would ask Premier Menachem Begin to exert his influence for the continued work on the project.
One indication for a possible conflict on this issue was when Hurwitz yesterday postponed a discussion on a proposal by Labor Minister Yisrael Katz to allocate IL 8.9 million and temporary posts for 35 community workers to Project Renewal. Hurwitz argued that the whole plan was too grandiose. He insisted that no part of the plan should be approved before a further discussion.
Neither Dulzin nor Deputy Premier Yigael Yadin, who are jointly in charge of the project, have been told anything definite yet and do not know whether Hurwitz really intends-to freeze the government’s 50 percent contribution to Project Renewal. Yadin has warned he would resign if the project was dropped.
CONSEQUENCES OF FREEZING PROJECT
Dulzin told the Jewish Agency Executive that since the decision to launch the project was taken jointly by the government and the Agency, it could not be reversed unilaterally by the government. He explained that the millions of dollars contributed for the project by world Jewry could not be used for any other purpose.
If the government froze its part of the project, Dulzin said, housing, construction and renovation of the slum neighborhoods would be affected. The Jewish Agency part of the deal consists mainly of welfare. Without the housing element, the entire balance of a “carefully planned and integrated program would be upset,” he warned.
Dulzin said Project Renewal would have no significant effect on inflation. “If I had the choice of two or three percent inflation and continue with Project Renewal, I would prefer Project Renewal.”
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