A battle over who bears responsibility in government for poverty and socio-economic policies erupted Tuesday between Prime Minister Ehud Olmert and opposition leader MK Benjamin Netanyahu during a discussion in Knesset over Olmert's decision not to appoint a welfare minister.

The discussion was initiated by MK Ran Cohen (Meretz), after 40 MKs signed a petition calling for a Knesset hearing to address the issue.

Cohen called poverty a larger strategic threat to Israel than Iran, and referring to the government's policy on the matter as "disgusting."

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Olmert was infuriated that a number of MKs walked out of the hearing, saying "Forty MKs demanded the prime minister be present to discuss this issue they see as urgent, and most of them walked out during the discussion," Olmert said.

Olmert blamed Netanyahu and Likud for the rates of poverty, calling them "hypocrites." He said that during his term as prime minister, welfare budgets increased. He said the last few cabinets were "merciless" with regard welfare.

"The person who needs to hear all these facts is the one who is responsible for the poverty situation," he said. He promised he would appoint a welfare minister soon.

Netanyahu responded by saying that, "Olmert is fighting poverty the same way he won the war in Lebanon. You all are wasting money on this government's exaggerations. You are not increasing welfare budgets, nor appointing a minister in charge."

Netanyahu also said, "Olmert is trying to shrug off responsibility. If there is something that worked during the past Lebanon war it is the economy. It isn?t clear who is responsible for that, but what is for sure is that Olmert was part of the past government, voted in favor of the budget at the time, and supported the steps I took to take us out of the economic crisis."