While the gas framework in question – a deal aimed at settling disagreements between the country's developers and the government – received cabinet approval in August, the plans faced additional hurdles after failing to receive the approval of the antitrust commissioner. Fully realizing the gas deal ultimately required that the economy minister – a role currently being filled by Netanyahu – invoke a legal clause to circumvent the commissioner's objections – Article 52 of the 1988 Restrictive Trade Practices Law.
"We came today to provide gas to Israel, to the Israeli economy, to the Israeli citizens," Netanyahu said at a signing ceremony on Thursday, held at the Neot Hovav Industrial Park in the Negev.
Although the prime minister signed off on Article 52 on Thursday – and thereby fully activated the gas outline – the deal still may face additional hurdles prior to truly seeing the light of day. Opposition leader Isaac Herzog made clear on Thursday that the Zionist Union intends to submit a petition to the High Court of Justice, arguing against Netanyahu's employment of the legal clause.
"Signing off on the gas outline by means of Article 52 means using the name of Israel's security in vain," Herzog said, at an event at the Interdisciplinary Center of Herzliya. "This is a cynical exploitation of security needs and serves interests that do not benefit the Israeli public. The Zionist Union faction will petition the High Court in the near future, with the goal of stopping this crooked process, in order to preserve the Israeli economy and restore the rights of the Israeli public."
The need to employ Article 52 arose due to the refusal of former antitrust commissioner David Gilo to support the gas outline. Gilo, who resigned in August over the issue, said he felt that the terms of the deal would stifle competition in the country's natural gas sector. His successor has likewise refrained from backing the outline.
While Article 52 has never been implemented in Israel’s history, an economy minister can do so by citing national security or foreign policy interests. After former economy minister Arye Deri resigned from his position last month, Netanyahu gained the authority to activate the clause.
Prior to invoking Article 52, Netanyahu was required to conduct consultations with the Economic Affairs Committee, which ultimately involved 11 sessions of discussions on the subject among politicians and professionals in the sector.
Although the conclusions of the committee were not legally binding, its members voted in a narrow majority on Monday to recommend against Article 52's activation. Seven committee members from the opposition voted against recommending its use while six committee members from the coalition voted in favor.
Following the vote, Economic Affairs Committee Chairman Eitan Cabel (Zionist Union) accused Netanyahu of holding the consultations simply as a "procedural formality."
On Wednesday, Cabel sent a letter to Netanyahu on behalf of himself and the committee members who had objected to Article 52's use, outlining the reasons they felt he should not activate the clause.
"We were not convinced that at this time, as well as in the foreseeable future, there are reasons of foreign policy and security that justify such an extreme measure as an administrative exemption from the law's commands in the hands of the economy minister, while the supervision of monopolies and restrictive trade practices should be carefully controlled, in the manner determined by the Antitrust Law," the letter said.
Meanwhile, in a last-ditch effort to prevent the invocation of Article 52, an environmental NGO – the Israeli Forum for the Preservation of Beaches – submitted a petition to the High Court of Justice on Wednesday night, demanding a temporary order to stop the prime minister from signing a final approval of the article.
"The temporary order is requested in order to prevent the signing and/or advancement of international trade agreements, which could bind the State of Israel from changing the outline and/or the statutory plans to regulate gas production," the petition said.
By Sharon Udasin
