At the end of the Government meeting of July 11, 2004, Government Secretary Israel Maimon reported the following:

1. At the opening of the Government meetings the Prime Minister addressed the decision of the International Court of Justice at the Hague.  The Prime Minister stated the following:
Less than an hour ago, an Israeli woman was murdered by Palestinian terrorist criminals and other citizens were wounded.  We all pray for their speedy recovery.  The murder which took place this morning is the first to take place under the patronage of the opinion of the International Court of Justice at The Hague.  On Friday, the sacred right of the war against terror received a slap in the face from the International Court of Justice at the Hague, following its opinion that the Security Fence for the prevention of terror is an illegal act, and that Israel must dismantle it.
I would like to clarify: the State of Israel rejects outright the International Court of Justice at The Hague’s opinion.  This is a biased opinion, which is supported solely by political considerations.  The opinion completely ignores the reason behind the construction of the Security Fence – which is murderous Palestinian terror.  It is only concerned with the Israeli response – the erection of the Fence, which is the most reasonable measure in the face of this wicked terror.
However, what the judges of the Court refused to see, the Palestinians were quick to demonstrate this morning, by killing and injuring innocent civilians.  There is a reason that the Palestinians are fighting the construction of the Fence.  They know very well that the completion of the Fence will make it extremely difficult for them to continue perpetrating acts of murder.
The opinion transmits a deadly message encouraging terror on the one hand, while on the other hand undermining the countries who are trying to protect themselves against it.  Anyone who is concerned about the spread of the plague of terror must, today, stand beside Israel in its claim that such an immoral and dangerous opinion must cease to exist.  Any cultured person to whom a stand against terror is important must stand beside Israel, and negate the opinion and its dangerous implications.

2. The Minister of the Interior and the Director General of his Ministry presented the Government with a survey of the situation of the local authorities.
The Minister and the Director General noted that the Ministry of the Interior approved a recovery plan for 76 authorities, out of which only 30 signed the plan.  They also stated that in all authorities which signed the plan, the issue of salaries was attended to, and funds are allocated to them. 
The Minister of the Interior emphasized that those authorities included in the recovery plan, received extension for the authority to approve the recovery plan and the budget by July 31, and as of August 1, 2004, the Minister will exercise his authority to dissolve the council, or the council and its director, and appoint (commissioner??) authorities.  All this, with regard to councils which will not approve the plan.
3. Today, during its meeting, the Government discussed the issue of the conversion system in Israel.  The current situation is that the conversion system operates through several Ministries.  In light of the fact that the Government is interested in advancing the issue of conversion, and in order to coordinate between the various functions active in this field and bringing them closer, it resolved as follows:
• In accordance with the Basic Law: the Government, the Unit of the Rabbinical Courts for Conversion will be transferred from the Ministry of Justice to the Prime Minister’s Office, to the conversion system in Israel.
• In accordance with the request of the Chief Rabbi, the President of the Great Rabbinical Court – the location of the unit of Rabbinical Courts for Conversion in the Prime Minister’s Office will be examined and determined in coordination with the head of the conversion system in Israel, the Director General of the Chief Rabbinate and the Government Secretary.
• In addition, the Government resolved that the authorities which were granted to the Rabbinical Courts Administration, will be granted to the head of the conversion system.
• To transfer from the Ministry of Justice to the Prime Minister’s Office the clauses which were united in its budget and/or were allocated to the issue of the special conversion courts, as well as the manpower which attended to this issue, as well as the means and the resources at its disposal.  In case of dispute on the aforementioned topics, the Government Secretary will make a decision.
• Until the full transference of all budgets and means, as aforementioned, the special Courts for Conversion, including their employees and judges, will continue to receive all administrative services, as they did so far, from the Ministry of Justice, inter alia through the Rabbinical Courts Administration, unless resolved otherwise by the Prime Minister’s Office and the Ministry of Justice.
• The employees of the special conversion courts and the judges will remain in their current locations, unless resolved otherwise by the Prime Minister’s Office.
4. The Government resolved to allow Yelmazler International, Construction Company, Inc., a special permit to employ 800 foreign workers in Israel, in the field of construction, in the years 2004-2007, in light of reciprocal purchase deals to Turkey from Israel.  It is emphasized that the aforementioned does not imply increasing the general quota of foreign workers in the field of construction.
Moreover, the Government resolved to instruct the Minister of the Interior to supply the Yelmazler Company with permits for residence and employment in Israel of 800 workers from Turkey.  In addition, the Government resolved to instruct the Minister of the Interior to issue permits for residence and employment in Israel to workers from Turkey who will be employed by the firm and will enter Israel to replace workers who wish to return to Turkey (one worker will replace another).
5. The Government resolved to authorize the Ministerial Committee for legislation to discuss and approve the draft for the Volunteer National Service Law (an experimental program for men) (???) (amendment) 2004- (following: the “Law”) and present it to the Knesset immediately.
According to this law, an experimental program was held for the integration of men who were exempt from military service, in the framework of national service for men.  The time period which was undermined for the plan was September 1, 2001 to August 31, 2003, while the Government has authority to extend the set period to a period which will not exceed one year.  And indeed, this period was extended to August 31, 2004.
Following the success of the plan, the Government resolved to authorize the Minister of Welfare to amend the law so that the set period of time will end on August 31, 2006, and also to enable the Government to extend the set period to periods which will not exceed one year.
6. The Government discussed the appeal by the Minister of Agriculture and Rural Development on the decision by the Ministerial Committee on Legislation to oppose the proposed water and sewage corporation bill 2003 (amendment water supplied for Agriculture), which was presented to the Knesset by MK Shalom Simchon.  The Government resolved not to approve the appeal of the Minister of Agriculture and Rural Development.
7. The Government discussed the appeal by the Minister of Agriculture and Rural Development regarding the decision by the Ministerial Committee on Legislation to oppose the proposed hen-house branch council bill (production and distribution) (amendment – removal of excesses) –2004, of MK Orit Noked and other members of Knesset.
The Government resolved to support the proposed bill in a primary vote in the Knesset, on condition that the draft be coordinated with the Government – a coordination which will take place before the primary vote on the proposed bill.
8. The Minister of Finance, the Director General of his Office, the Director of the Economy and Research Unit at the Ministry of Finance and the director of budgets presented the Government with a survey of the state of the Israeli economy and presented macro-economic plans for the 2005 budget.
With the surveys presented by the Ministry of Finance officials, the Government embarked on a series of meetings and discussions on the economic policy for 2005, and the budget for that year.
The Governor of the Bank of Israel presented to the Government his position regarding the targets which the socio-economic policy of the Government must aspire for.  The Governor addressed the working plan the Government must pursue in order to achieve its targets.
Upon completion of discussions, the Prime Minister stated the following:
“We succeeded in meeting all the goals we set for ourselves, and in moving from recession to growth – this is a tremendous achievement by the Government.  I attribute great importance to adhering, also in 2005, to an economic policy which is focused on growth and maintains the public’s trust, as we did in 2004.
At the same time, it must not seem as if our policy hurts the underprivileged sectors indiscriminately.  Therefore, we must make a clear distinction between those who can work and should be encouraged to find employment, and those underprivileged sectors who cannot work (severely handicapped, elderly, children at risk) – those who must not be harmed and should be given assistance. 
Last week I met with the Minister of Finance and his team and informed them that I support the continuation of our economic policy.  In addition, I formulated a number of national targets, which must be reflected in the budget of 2005 and in the coming years:
1) Ensuring the quality of our future generation (education).
2) Encouraging immigrant absorption
3) Promoting minority sectors in Israel, emphasizing a solution to the issue of the Bedouins
4) Strengthening Jerusalem
I also clarified that in the budget of 2005 we must secure all funds required for the implementation of the Disengagement Plan and the continuation of the construction of the fence.