Mofaz says fence is good for economy

The operational efficacy of the separation fence at stopping terror attacks has been unequivocally proven, and in those places where the fence has been built, the number of terror attacks has dropped by dozens of percent. In addition, the fence has contributed to an increase in the gross domestic product and has resulted in a 0.3 percent decline in unemployment, Defense Minister Shaul Mofaz said yesterday.

Mofaz said the fence is one of the country's largest-ever infrastructure ventures that will cost between NIS 8-9 billion - NIS 5 billion already has been allocated to its construction. Annual maintenance of the fence will cost NIS 170,000 per kilometer, or NIS 85 million a year, which will be paid by the Defense Ministry.

Given the country's high unemployment rate, the real cost to the economy is much lower than the absolute numbers invested in the fence's construction. Mofaz said direct employment on the fence has given paying jobs to 5,400 people, including 3,400 in construction. "The additional jobs created by the fence, at a time of rising unemployment, is like fresh air for the construction industry and the economy in general," Mofaz told participants at a seminar at Kfar Ruppin on the fence's economic aspects.

Taking into consideration the increased market consumption as a result of the 5,400 jobs means that up to 8,000 jobs have been created by the fence.

Mofaz said the fence's contribution to the improved security situation has contributed to the improving economy. This improvement has offset the economic harm done by terror, encouraged investment, and helped tourism.

Mofaz presented data showing that the Israeli economy lost NIS 25 billion in 2002-2003 due to the intifada. The GDP shrank by 3 percent, and commerce and services dropped some NIS 3.5 billion in 2003 alone. He said that "if the fence continues to provide the security and sense of security that we hope for, and I believe it will, that means bringing back, at last, NIS 10 billion lost in 2003." That figure represents 2 percent growth, and would mean the creation of 35,000 jobs.

	Defense Minister Shaul Mofaz speaking in Kfar Ruppin yesterday.
	Photo by: Guy Raivitz