Popular former MK will not head lands authority

Former Likud MK Moshe Kahlon, known for leading a pricing revolution in Israel’s telecom industry, won’t have a chance to repeat the feat in the housing market, Prime Minister Benjamin Netanyahu said Tuesday.

Kahlon, a popular former minister who left politics last year, had been slated to take over as head of the Israel Land Administration, with the hopes of lowering housing prices, particularly for young couples and discharged IDF soldiers.

However, a coalition agreement kept the ministry under the aegis of the Jewish Home party, stymieing Netanyahu’s plan to appoint Kahlon. Instead, Housing Minister Uri Ariel of Jewish Home has been the acting chairman of the ILA, and for now will continue to serve in that capacity.

The ILA manages the 93% of Israeli land that is state-owned or -run, and is currently part of the Housing Ministry.

Netanyahu tried unsuccessfully to push through a law bringing the authority under the aegis of the Prime Minister’s Office, which would have rendered the Housing Ministry, a much-coveted position since it has authority over the ILA, a much less substantial post.

During a meeting with Kahlon on Tuesday, Netanyahu said “the election results do not allow us to implement all of our plans.” Still, the prime minister said he believed that “only by putting the Israel Land Administration under the control of the Prime Minister’s Office, together with the appointment of Moshe Kahlon to the position, can significantly lower the costs of apartments for the good of all Israelis.”

In the previous government, Kahlon served as communications minister, where he championed reforms that lowered cellphone bills by hundreds of shekels per family.

When Netanyahu announced Kahlon’s appointment shortly before elections in January, he was harshly criticized by members of the Knesset opposition, who accused him of using the popular Sephardi politician as a “fig leaf” to halt his party’s rapid decline in the pre-election polls.

MK Erel Margalit (Labor) attacked the prime minister over the announcement Tuesday, signaling he was unconvinced over Netanyahu’s reasoning for not appointing Kahlon.  “Netanyahu does not want people who threaten him by his side, he is afraid of good people,” said Margalit. “Kahlon is a man of action and the public loves him. He will bring results. It is a disgrace that Netanyahu is stopping a housing revolution for political considerations.”

Kahlon announced his temporary departure from political life in October 2012. After reports that he was contemplating setting up his own party, he stressed that “obviously I’m not leaving Likud.”

Adiv Sterman contributed to this report.