Minister of Housing and Construction Zev Boim (Kadima) has rejected international and left-wing criticism of the government's decision to build a new housing project in Givat Zev, saying approval for the project was issued nearly a decade ago but was delayed due to Arab violence.

On Sunday, Boim announced construction plans for 550 new homes in Givat Zev, and more than 1,100 in the northern Jerusalem neighborhoods of Neve Ya'akov and Pisgat Zev, located in areas liberated by Israel in the 1967 Six Day War. 

Peace Now leader Yariv Oppenheimer slammed the announcement as "scandalous," and UN, European and US officials have called on Israel to reverse the decision, calling the move "unhelpful" and a violation of the so-called Road Map plan favored by the Quartet. 

However, National Infrastructure Minister Binyamin Ben-Eliezer (Labor-Meimad) rejected the criticism. He said the building project won't affect negotiations with the Palestinian Authority because he expects the communities in question to remain under Israeli jurisdiction in any eventual settlement with the PA.  Furthermore, Ben-Eliezer told Voice of Israel government radio that an extended building freeze in "settlement" blocs such as Gush Etzion, Maaleh Adumim, Ariel and Givat Zev would cost the building industry hundreds of millions of shekels.

Government officials said no building would take place on private Arab-owned land, and that all land for the project was sold to developers and private individuals.

Prime Minister Ehud Olmert also rejected international criticism of the plan, and said building will continue in all areas of Jerusalem and the above-mentioned areas. However, he said the government would not approve any new Jewish communities in Judea and Samaria.