FICC:Courts impose most red tape on businesses

Israel's court system is the most bureaucratic government institution businesses have to deal with, according to study.

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July 14, 2013 18:49
1 minute read.
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Israel’s court system is the most bureaucratic government institution businesses have to deal with, while the Transportation Ministry is the least, according to a study by the Federation of Israeli Chambers of Commerce.

In its second quarterly Bureaucracy Index for 2013, which was released Sunday, the FICC awarded the courts an overall score of 6.34 on a scale from one to 10, below Israel’s overall average of 6.98 and the Transportation Ministry’s 7.23.

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The seven institutions ranked from most efficient to least efficient were: Transportation Ministry, Economy and Trade Ministry, Health Ministry, Interior Ministry, National Insurance Institute, Finance Ministry and the courts.

The scores were compiled based on measures for how long the office takes to render its services, quality of service, availability of the institution’s representatives and their personal approach.

While the business sector believes services should take an average of about three-and-a-half weeks, the average time it took for Israel’s bureaucracy to render them was triple, taking about 10 and a half weeks. The courts took 27 weeks, or more than six months, to process requests the business community expected should take 11 weeks.

The study found that 38 percent of business owners think bureaucracy and red tape have harmed their business in a significant or very significant way.

On the bright side, the overall picture has improved over the five years since the FICC began compiling the index, rising from 6.5 to 6.98. Even the courts, once assessed a 5.89 score, are among the most improved. The National Insurance Institute has become less efficient over time, dropping from 7.49 to 7.06.

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“There is no doubt that there’s been a change in the state authorities’ awareness,” FICC president Uriel Lynn said. “Recognizing that reducing bureaucracy will contribute to growth without budgetary expenditures and even save the state money has entered the decision makers’ thinking, as the government’s decision to make the public sector more efficient demonstrates.”

Responsibility to wring out further efficiencies rests at the feet of the directors of each government agency, he said.

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