Commissioners use improvement plan as budget guide
Rare collaboration between Minister of Foreign Affairs
Tzipi Livni, Minister of Defense Amir Peretz and Minister
of Strategic Affairs Avigdor Lieberman has led to another
postponement of the government's decision whether to buy
natural gas from BG Group plc (NYSE: BRG; LSE: BG) (British
Gas).
At yesterday's cabinet meeting, the Prime Minister's Office
and the Ministries of Finance and National Infrastructures
called for a vote on the subject, even though the ministers
present at the meeting did not discuss the subject, and
only intended to hold an immediate vote. Lieberman halted
the cabinet discussion and raised possible consequences
of British Gas transferring to the Palestinian Authority
royalties from Israel Electric Corporation (IEC). He noted
that the cabinet had already discussed that this money might
be used to finance anti-Israeli terrorism.
Peretz said that the defense establishment had not yet
reviewed the matter, and the security ramifications should
be taken into account.
Livni called for a thorough review of the diplomatic and
security consequences of the purchase of natural gas owned
by the Palestinian Authority. She also called for a discussion
on the reverse scenario -- the possible consequences of
not buying gas from a British company supported by the British
government.
Even though the government has discussed the subject for
years, no comprehensive and adequate study has been held
to date on the diplomatic and security ramifications of
natural gas from reservoirs located in the territorial waters
of the Palestinian Authority. In December 2004, the government
decided not to buy, market, or sell natural gas, or instruct
any other entity to do so. At yesterday's cabinet meeting,
the Prime Minister's Office and the Ministries of Finance
and National Infrastructures sought to cancel this decision.
Had that happened, IEC could buy natural gas from Yam Thetis,
Egypt, and the Palestinian Authority.
