Proposed bigger government cut of gas field revenue roils Israel.

Proposed bigger government cut of gas field revenue roils Israel.A panel reviewing Israel's policy on oil and gas resources has recommended more than doubling the government's take of profits. But Israeli and U.S. firms behind recent discoveries are fighting back.Big natural gas fields found recently off Israel's coast could be a game-changer for the small country, pumping billions of dollars into the economy. But the prospect of huge profits is igniting a battle to divide the spoils, long before drilling gets underway.A government committee appointed to review Israel's policy on oil and gas resources recommended late Monday more than doubling the government's take of production profits to as much as 62%.Committee Chairman Eytan Sheshinski, a retired Hebrew University economics professor, said the revised rate, which still must be approved by the parliament, would create a "balance between the companies' profitability and the public."But a consortium of Israeli and American companies behind the recent gas discoveries is fighting the move, warning that the higher rate could make the project unfeasible.The previous 30% rate, established in 1952, reflected a period when the young country had no funds for exploration and no known natural resources. The low rate was designed to encourage private companies to undertake risky investment.Read the full story here.