_a.jpg "Photo: Amir Cohen")
Qassam damage - there's an economic price too
Photo: Amir Cohen
Damage to Sderot factories: NIS 40 million
Factories in the line of fire have lost an estimated NIS 40,000,000 (USD 9,338,748) over past three years. Only 14 percent are opting out though, since property values dropped by 80 percent
The daily Qassam rocket attacks from Gaza have cost the factories in the Sderot industrial zone NIS 40,000,000 (USD 9,338,748) in damages over the past three years, so say the industrialist union.
Deadly Attack
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Some 40 factories in the Sderot area manufacture paper, metals, plastics and high-tech products. 93 percent of these factories report crippling worker-absentee figures. 64 percent of these factories report that clients are afraid of coming to Sderot. 57 percent say that suppliers are often no-shows and 54 percent say that professional service providers don’t come to the region.
60 percent of the factories report drops in production both in quantity and quality due to the stress among workers. 71 percent of factories have difficulties recruiting personnel.
54 percent say they've lost international clientele.
But despite these discouraging figures only 2 percent of workers have left because of the rocket attacks and only 14 percent of factory directors intend to relocate their businesses. A possible reason could be the 80 percent drop in the value of their property.
However factory execs are concerned that property taxes will rise again after being cut back to half their original price in 2004. According to expected government plans the tax break will only stand at 25 percent in 2007.
Industrialist Union President Shraga Brosh: "I call on the finance minister and minister of the interior to work towards keeping the tax down to 50 percent for two more years at least. Raising the tax now will hurt the factories in Sderot at a time when they should be aided."
In a recent meeting between union CEO Yehuda Segev and factory managers in Sderot the factories demanded tax breaks, government aid, a loan fund similar to the one aiding businesses in the country's north after the war in Lebanon. The managers are also seeking government funding for fortifying the factories and purchasing pagers and alarm systems for the factories that are our of hearing range from Sderot's sirens.
