Prime Minister Benjamin Netanyahu and Finance Minister Yuval Steinitz will, on Sunday, 3.1.10, submit for Cabinet approval, an aid package for Sderot and the communities in the area adjacent to the Gaza Strip.  The basket of benefits is worth approximately NIS 190 million.  Additionally, approximately NIS 150 will be invested in the structural reinforcement of educational institutions in follow-up of previous decisions.

The decision was formulated by Prime Minister's Office Director-General Eyal Gabai and Finance Ministry Budget Director Udi Nisan and includes a series of benefits in the infrastructures, education, social welfare, employment, etc.  The goal of the decision is to continue strengthening the communities in the area in order to provide stability, increase social; and civil strength and improve local authorities' and residents' ability to cope.

According to the decision, NIS 51 million will be earmarked for upgrading local authorities' sewage infrastructure so as to allow them to deal with communities' expansion.

Local residents and businesses will continue to receive local rate discounts albeit in a reduced format.  Given the improved security situation, it will stand at 35% for residences and 25% for factories and businesses.  Local authorities will also receive special grants in order to deal with the consequences of the security situation; Sderot will receive NIS 9 million, other local communities NIS 6 million.  This is in accordance with the decision's underlying basis, that of changing the balance of Government investments in the area from current budgets to regional infrastructures and development.

Extensions on personal income tax discounts will be extended for 2010 and will stand at 20%.  In order to encourage newcomers, exemptions on rents in Sderot and the communities in the area adjacent to the Gaza Strip will be extended to 31.12.10.  NIS 2 million will be allocated to upgrading factories in the Sderot Industrial Zone.

The activity of five centers that offer psychological and social services will continue on their present footing.  Emergency medical services for area communities will continue.

NIS 14 million will be invested in building reinforced daycare centers will be built in the communities in the area adjacent to the Gaza Strip.  Approximately NIS 140 million will be invested in structural reinforcements at educational institutions in Sderot and the communities in the area adjacent to the Gaza Strip in 2010.

Prime Minister Netanyahu said: "The decision expresses our commitment to the security of the residents in the area adjacent to the Gaza Strip, and to the continuation of normal life amidst prosperity and growth in infrastructures, education and other areas.  Concern for the security and welfare of our brothers, citizens of the State of Israel whose communities have served as targets for thousands of missiles fired by Iranian-sponsored terrorist groups, will continue to top our unity government's list of priorities."

Finance Minister Dr. Steinitz added that, "Our goal is to show the residents of Sderot and the communities in the area adjacent to the Gaza Strip that we have not forgotten what happened to them a year ago and we are not ignoring the fact that the security uncertainty requires the continued strengthening the communities in the area even during a period of calm."