Housing Minister Ze'ev Boim made an about-face and Thursday refuted reports of his ministry's approval of plans to build up to 15,000 new housing units in the northeastern Jerusalem neighborhood of Atarot, close to the Atarot industrial zone, known as the largest industrial park in the capital.

Boim told Voice of Israel government radio Thursday morning "The subject of a feasibility assessment was brought to me, but I suggested we drop it." Ministry spokesman Eran Sidis went farther, saying the Atarot plan had been one of several submitted for consideration, but was "obviously ruled out because of the sensitive nature of the peace talks."  He added, "We wouldn't even dream of doing it."

Spokespersons for Prime Minister Ehud Olmert and Foreign Minister Tzipi Livni said they had not been informed of the Housing Ministry's decision to approve the project. The existence of the plan was revealed by a Haaretz report and confirmed by the Housing Ministry on Wednesday.