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Information Paper #2 ISRAEL'S WATER DILEMMAS; WATER AND WATER-RELATED AGENCIES IN ISRAEL; ISRAEL'S WATER LAWS 25 April 1988 Associates for Middle East Research, Inc. 2400 Chestnut Street Philadelphia, PA 19103 INFORMATION PAPER Israel's Water Dilemmas A severe water shortage looms on the horizon for Israel. To meet its water needs, Israel has, in the recent past, consistently used over 100 percent of its renewable resources. The situation has become par ticularly acute with subpar rainfalls in recent years. In 1985/86 Israel's aquifers were overdrawn by 247 Mem, or more than 40 percent over the renewable amount (#3911). In that year Israel consumed a total of 1987 Mem (#3697), while we have determined that Israel's total renewable water resources is around 1800 Mem. Israel, therefore, used over 110% of its water in 1985/86. The total groundwater deficit that has accumulated since Israel began overpumping has been estimated at around 1700 Mem 1300 from Israel's coastal plain aquifer which as a result has become dangerously saline, and 400 Mem from the Yarkon-Taninim aquifer Israel s aquifers, especially the coastal aquifer, are nearing the "red line , the point at which further pumping will do irreversible damage And should this line be crossed the aquifers would be destroyed and be come useless to future generations (#3911). Last year, 1987, was an exceptionally good rain year for Israel, but this has done little to relieve the huge groundwater deficit. It would take several such good years in a row to begin to improve Israel's water situation without con servation measures being taken. The impending disaster has fueled debate in Israel on how best to resolve the situation, with various groups all trying to promote their own interests. The debate centers around subsidies for agricultural water. Israeli farmers pay a much lower price for their water than do mestic users. (Industry is also considerably subsidized, but uses a relatively small amount of water, only about 5% in 1985/86 (#3697) ) The price they pay (about $.09 per cubic meter) is, in fact, well below the * wJI2ri,of Producin9 and delivering the water (about $.27 per cubic meter)(#3756). Furthermore, it is argued that only one-fourth of the total subsidies are actually budgeted. Three-fourths of the roughly $200 million in subsidies is "covert", meaning that the depreciation of the water system is not included as part of the water budget, so that rates even before the addition of subsidies, are based on artificially low calculations of production costs (#3892). The opponents of the subsidies, led by the Ministry of Finance and the local water authorities argue that the artificially low prices pro mote waste. As water is wasted and becomes more scarce, the costs of producing it go up. And the domestic users are the ones who bear the brunt of these costs. A newly formed scientist's lobby argues that any further increase in the water deficit could have disastrous, permanent consequences. Already it is uncertain whether the coastal aquifer can be salvaged. Removing the subsidies to let water price reflect real water ?S?Lo?u1d dlscoura9e waste and might help the cause of conservation (#3888). -1 The supporters of the subsidies are led by the Minister of Agriculture and the powerful farmer's lobby. They argue that there are no "covert" subsidies. The depreciation costs of the water network are a national obligation as part of national infrastructure, and should not be paid for by just water users. They argue that the "overt" subsidies are necessary to encourage the agricultural sector. Agriculture has always had a special prominence in Israeli ideology. Agricultural settlements are an effective means of population dispersion, and agriculture is needed to create the "food security" deemed vital for Israel's indepen dent existence. ,*,., Opponents of the agricultural lobby have directed much of their •Wi criticism at cotton production. Cotton is a tremendous water consumer, as well as a soil destroyer, and has not been very profitable. However because of the low price of subsidized water, it is profitable for far mers to grow it. Proponents of cotton praise it as the "pride" of Israeli agriculture and say that its troubles have been due to a glut on the world market. Furthermore, they argue that cotton thrives on re claimed sewage water and so does not waste natural reserves (#3757) Cotton's detractors contend that if cotton growing was phased out 200 Mem a year could be saved (#2338). The elimination of cotton also poses no threat to the ideal of "food security". Opponents of the agricultural lobby also find fault with the current water administrative structure. The Water Commission, to whom re sponsibility for and control of all Israel's water resources is given is not independent but works within the Ministry of Agriculture Agriculture, it is argued, maintains a disproportionate share of in fluence on water policy, and is able to disregard the interests of the other sectors as well as the warnings of scientific experts. Opponents of agriculture have suggested moving the Water Commission out of the Ministry of Agriculture and into another Ministry, possibly the Energy and Infrastructure Ministry or the Economy and Planning Ministry (#3759) The local water authorities, who are also under the auspices of the Ministry of Agriculture, wish to be moved elsewhere, as they feel their interests are not adequately addressed (mainly because their quotas have been cut, and their prices have been raised) (#3893). The local water supply networks are in notoriously bad condition, losing an average of 25 percent of their water through leakage. With the current pricing system, ?SL1S no incentive ^r the local authorities to repair the networks f $ ; Politics may play a part in all this debate, but it is not clear* to what extent. The Minister of Finance is from the Liberal Party in the Likud bloc, while the Minister of Agriculture is in the Labor Party of the Alignment. The Water Commissioner is a political appointment from the Liberal Party, but has since gone into collusion with Labor (#3891) The heads of the two Ministries suggested as new homes for the Water Commission (Energy and Infrastructure or Economy and Planning) are both with the Labor Party (#3914). In the past agriculture has been more closely identified with Labor, but in fact, the debate seems to cut across party lines, with Agriculture (and the settlement groups) on one side and the other water consumers opposed (#3922). -2- Technology is seen by many as a way to solve the water shortage dilemma without dramatically altering policy. Desalination is used on a small scale, though the costs are still prohibitively expensive, and reclaimed sewage water is used increasingly in agriculture. (However, in 1986, 70% of farmers who received reclaimed sewage water did not have their fresh water quotas cut back (#3760).) In 1986 the Water Commissioner responded to the crisis by cutting agricultural water quotas by 200 Mem. These new quotas were not exceeded, and so remain in force (#3895). Last year the area of land under cotton shrank to half what it was in previous years. There has also been discussion in the Water Commission about the possibility of reducing subsidies, though not eliminating them, and attempts to change domestic habits could save about 30-40 Mem per year, according to a Water Commission source (#3922). -3- WATER AND WATER-RELATED AGENCIES IN ISRAEL Drainage Authorities Created by Drainage Law of 1957. Have "practically unlimited power" in regulating floods and runoff (#3921). Knesset Contains a Water Committee, which approves the Ministry of Agriculture's plans to set fines and levy water prices, but not its plans for subsidies. The Water Committee is a subcommittee of the Finance Committee and is heavily under the influence of the agricultural lobby (#1477). Contains and Interior Committee which is heavily under the influence of the lobby of the Local Authorities, representing urban interests against agriculture (#3893). Local Authorities Buy water from Mekorot and distribute it to consumers. Their prices are set by the Ministry of Agriculture and the Ministry of the Interior (#1477). Set conditions for sewer systems and determine sewerage charges Issue licenses for industrial waste disposal (#3921). Organized together in Center for Local Governments. Propose their own projects and bargain with Mekorot and the government over water rights (#3922). Mekorot Founded in 1936 by the Jewish Agency and the Histadrut "to develop resources on a larger scale". The government has since taken over one-third of the shares (#1118). Jewish National Fund also has an interest (#2695). Responsible for taking samples and testing the domestic water it supplies in Ministry of Health approved labs, and sendinq the test results to the Ministry of Health (#2449) Responsible for construction, operation, and maintenance of national water supply system (up to 60% of Israel's water used). Appointed National Water Authority by the 1959 Water Law (#2695) Carries out all water works in State budget, supervised by the Ministry of Agriculture (#1438). Set its own prices until 1978 when the Ministry of Agriculture bv authority of the 1959 Water Law, fixed its prices. Supplies water to Local Authorities, not individual homes, and performs its own recharge and other water preservation schemes (#1477) Reduces or shuts off water supplies to moshavim or towns in debt' /2oo?f ^?«?d t0 renew SUDDly (#oolo,#3818). by Ministry of Agriculture Founded in 1937 by Keren haYsod, the Jewish National Fund, Palestine Land Development Co., and Nir Co. Government and the Jewish Agency now own a majority. The Minister of Agriculture sits on the board. Operates the National Water Carrier, water supply pUnu'o^l)5 f°r teStin9 and research' and sewa9e Purification Almost everyone now buys water from Mekorot because most private wells have become too polluted (#3922).
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