BICOM

Israel announced yesterday that it would resume the transfer of Palestinian Authority tax funds to Ramallah, but not before warning it will consider freezing the funds again if the PA renews its bid for statehood recognition in UN institutions. Prime Minister Benjamin Netanyahu’s senior cabinet of eight ministers on Tuesday voted in favour of releasing £64 million in Palestinian tax revenues and customs to the PA.

The ministers decided to release the funds following reports that the Palestinians had suspended their unilateral efforts for statehood and that plans by the Fatah organisation to reconcile with Hamas were far off.

The transfer to the PA of £64 million was held up after UNESCO accepted the Palestinians as a full member in early November. Foreign Minister Avigdor Lieberman voted against the motion, but despite disagreement over this issue, Lieberman made it clear earlier this week that he would not leave the coalition over this matter.

Quartet Middle East Envoy Tony Blair welcomed the release of the tax funds. Blair said it was an important decision and crucial to sustaining the Palestinian Authority and supporting the Palestinian institutions. “As I have said on numerous occasions, this is Palestinian money, which is critical to sustaining the PA and should be transferred on a regular and predictable basis in line with previous Israeli-Palestinian agreements. Withholding these funds only benefits those who oppose peace and Israeli-Palestinian cooperation,” Blair said.

The tax and customs revenues belong to the Palestinian Authority but are collected by Israel. According to a 1994 treaty, Israel must hand over the funds on a monthly basis.

The Palestinians suspended plans to seek membership in UN agencies after their successful UNESCO bid. However, after failing to achieve recognition of statehood from the UN Security Council, the PA is now reportedly considering non-member state status at the UN General Assembly.