Knesset backs Gaza payments

The plan is fiercely opposed by settlers

The Israeli Knesset has given initial approval to a bill to compensate settlers leaving Gaza under Prime Minister Sharon's withdrawal plan.

The bill, approved by 64 votes to 44, also envisages punishment for those who refuse to leave.

Under Mr Sharon's controversial disengagement plan, all 21 settlements in the Gaza Strip and four of 120 in the West Bank would be removed.

The parliament has already approved the withdrawal itself.

DISENGAGEMENT PLAN Israel will pull out all its 8,000 settlers from 21 fortified enclaves in Gaza Israel will maintain control of Gaza's borders, coastline and airspace Four isolated West Bank settlements also to be evacuated

The compensation bill will now go to committee for further work and will have to pass two more readings.

It states that families who leave the occupied territories can expect to receive between $200,000 and $300,000.

Earlier in the day Mr Sharon was forced to postpone an initial vote on his budget plans when it became clear that he could not command a majority in the Knesset.

Mr Sharon's faces a political challenge after rebels within his Likud party and former coalition partners vowed to block domestic legislation in protest at the Gaza plan.

Under Mr Sharon's plan some 8,000 settlers and the troops that protect them are to leave Gaza.

The proposed evacuations are to be carried out in phases - and each phase will require approval with a cabinet vote.

Enlarge Map

The plan is fiercely opposed by settlers and hard-line politicians. But opinion polls say around 65% of Israelis are in favour.

Israel has occupied the West Bank and Gaza Strip since capturing them in the 1967 war.

It has settled about 400,000 Jewish citizens there, among a 3.5-million-strong Palestinian population.

The settlements are considered illegal under international law, although Israel does not accept this.

The Israeli prime minister says withdrawing settlements from the Gaza Strip, and concentrating on bigger settlements in the West Bank, will improve security across the country.