Finance Minister Levi Eshkol told Israel’s Parliament today–in response to sharp opposition party criticism–that the formation of a government company to develop and exploit atomic energy for peaceful purposes had been motivated by the need to relieve the government of the heavy burden of financing such development.
He made the statement in reply to charges that the company had been set up to bypass Parliamentary control. After proposing that the question be submitted to a committee, the critics withdrew motions for a general debate on the question. Incorporated at 50,000,000 pounds ($16,666,666), the firm’s founding shareholders include Prime Minister David Ben-Gurion, Mr. Eshkol, and Deputy Defense Minister Shimon Peres as representatives of the government.
The Finance Minister also rejected allegations that the project was kept secret until the company’s formation was announced on December 9. He recalled recommendations he had made to the Knesset last year to mobilize supplementary funds for security needs from sources other than taxation. He added that when prospective donors, both individuals and institutions, were canvassed for support of the project, they indicated they preferred subscribing to the project.
It was then decided, with approval of the state controller, he added, to form a limited company for atomic energy development. He said that the shares would not pay dividends and that the only founders were holders of shares, a majority of whom were representatives of the Government. They will control the company’s policies, he said. All shareholders will sign a first waiver of rights to the Government and he assured the Knesset that the company’s activities would come under control of Parliament.
The Herut, Mapam, Communist, Liberals and Agudat Israel challenged both the company’s formulation and its “partisan aspect” as reflected in the personalities of the shareholders. The critics said the arrangement was tantamount to handing over total control of a “most sensitive instrument” to a “partisan group.” So grave a matter, which might determine the fate of the nation, must be vested in a public authority and cannot become the exclusive domain of Government parties, they declared.
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