The Galilee Development Authority will allocate at least NIS 500,000 to Israeli Arab entrepreneurs, as part of the plan to rebuild the Galilee after the war in Lebanon.

This comes out of a NIS 1.5 million budget that was gathered for rebuilding the north.

This is the first time the Authority is apportioning a special sum for the Arab public.

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The Galilee Development Authority - a government agency subordinate to Vice Premier Shimon Peres - announced in a letter to heads of Arab municipalities that it would fund entrepreneurs in industry, education, environmental fields and "any initiative that will work to improve the quality of life in the Galilee."

Until now, government cooperation with Arab municipalities was limited, and the majority of budget funds were allocated to Jewish municipalities.

The Authority's director, Shmuel (Sammy) Bar-Lev, said he places much significance in cooperation with the Arab population. Bar-Lev said this is a first step in the process to build confidence with the Arab public.

"The Authority represents all 104 municipalities in the Galilee. We would like to be the brokering source between the needs of the Arab municipalities and various government offices," Bar-Lev said.

The "Bimkom-Planners for Planning Rights" organization responded to the Authority's statements and said that "the authority's intention is positive, but it won't reach its goal without using affirmative action. There is no way to make up for years of discrimination."