Both the Government and the Israel Federation of Labor were called upon here today by Dr. Yeshayahu Foerder. chairman of the board of directors of the Mortgage Bank, to refrain from approving direct or indirect wage increases. Such raises, said Dr. Foerder, would hamper construction of new housing needed for the shelter of the large influx of new immigrants now coming to Israel.
Construction of housing must be given top most priority in Israel this year, Dr. Foerder said. In addition to keeping wage scales at present levels, as encouragement to private builders, he advocated a 50 percent government subsidy to people renting houses, so as to encourage builders to construct more dwellings for lease instead of purchase Dr. Foerder also proposed that the Government remove taxes from cement and other construction materials.
Meanwhile, leaders of Federation of Labor met with Finance Minister Levi Eshkol and Pinhas Saphir, Minister of Trade and Industry. The labor leaders discussed the possibility of giving some concessions to low income families to enable those of lower economic status to meet the higher prices for consumer goods which went into effect last week when tax and customs levies were raised. As a result of the conference, it is understood, some measures will be worked out for aid to low income families, possibly including a reduction in their income taxes.
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