An angry rift has developed between Deputy Premier Yigael Yadin and Minister of Commerce, Industry and Tourism Gideon Patt over the Cabinet’s controversial decision to link development loans to industry to the cost of living index. Yadin and Minister of Social Betterment Yisrael Katz, both of the Democratic Movement, supported the Cabinet majority. The decision, which could eliminate cheap government loans for industry, was assailed by the Manufactures Association last week.
In a radio interview over the weekend, Patt Focussed his criticism on the two DM ministers who, he charged, pretend to be protectors of the public welfare. He said they were ignorant of the implications of the loan decision but did not have to worry about their constituents because they stood no chance of participating in the next government.
Although Patt is a member of Likud, Premier Menachem Begin is backing Yadin. The latter warned Patt not to presume to forecast the next election results. Presiding at today’s Cabinet meeting in the absence of Begin who was resting for the Herut convention tonight, Yadin said he regarded Patt’s remarks as “serious.” Patt told reporters that he stands by them.
The Democratic Movement, headed by Yadin, remained in the coalition after the original Democratic Movement for Change (DMC) split last year the dissenters formed a new opposition faction Shai. Yadin and Katz, who deal mainly with social issues, and Justice Minister Shmuel Tamir comprise the Democratic Movement faction in the Cabinet. The DM supported the government’s new economic program which includes a budget pared by IL 6.9 billion. Yadin and Katz insisted however that the cuts should not affect social programs.
NEW PRICE HIKES AHEAD
Meanwhile, Israelis are girding for a new round of price hikes expected to be announced in the next few days. They will include higher prices for electricity and water supply, public transportation, flour and its by-products and such basic commodities as bread, milk and dairy products. Government sources indicated that political factors will determine when the increases are announced Public indignation is running high and Likud fears. that its popularity with the electorate is waning. But given soaring fuel prices on the world market, the finance and energy ministries say the price increases cannot be postponed for long.
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