Jerusalem: Israel's Cabinet today (Oct 24, 2004) approved a compensation package for settlers leaving the Gaza Strip under Prime Minister Ariel Sharon's controversial disengagement plan.

The bill, called the "Evacuation-Compensation Law", empowers Sharon to issue orders for the evacuation of the settlements and envisages punishment for those who refuse to leave.

The bill was approved 13-6, with Sharon's archrival, Finance Minister Benjamin Netanyahu, voting in favour of the bill.

The disengagement plan will be brought to debate in the Knesset tomorrow with a vote on it expected on Tuesday (Oct 26, 2004).

"The law will ease like as much as possible for the settlers who will be evacuated," Sharon told his cabinet ahead of the vote, adding "I'm sure that even those who are opposed to the disengagement will not want to make life difficult for the settlers."

Netanyahu and Education Minister Limor Livnat, who also voted in favour, had earlier tried to convince the Prime Minister to go for a nationwide referendum on the plan to lend it greater credibility.

Sharon promptly rejected the request saying it would derail the time-table set for the plan and would be an unnecessary exercise. The Knesset is the right forum for such political decisions, he had said.

Four Ministers from Sharon's party voted against the bill and were joined by two more Ministers from the right wing parties in the coalition.