Olmert: Erez industrial zone to be closed for good

[Gimel]

Industry, Trade and Employment Minister Ehud Olmert has decided to close the Erez industrial zone permanently, and to disperse the Israeli-owned businesses there throughout the south of the country.

Olmert announced on Tuesday that, following the cabinet's decision to approve in principal Prime Minister Ariel Sharon's revised disengagement plan, he had decided to relocate the factories in the industrial zone because of the volatile security situation.

He also cited the irregular permission granted to Palestinian workers employed there, which has placed the businesses in a precarious financial situation. Some 4,000 Palestinians are employed by the factories.

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[Gimel]

1. Withdrawal

The extent that Israel had helped to provide employment for the Palestinians in joint ventures, as well as employment in Israel becomes more apparent as separation is made inevitable.