Acting Justice Minister Meir Sheetrit (Kadima) on Thursday called on Defense Minister Amir Peretz (Labor) to leave his post and take a different portfolio instead.

Speaking on Israel Radio, Sheetrit said that when the talks over forming the coalition were held in April this year, he was of the opinion that Peretz should become Finance Minister, and not take the defense portfolio.

Peretz, who ran an election campaign with a strong social agenda, was refused the finance portfolio by Prime Minister Ehud Olmert, who wanted to reserve the ministry for a member of his Kadima party.

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In his interview, Sheetrit also referred to the deadlocked peace talks with Israel's hostile neighbors, calling on Olmert to engage in immediate dialogue with the Palestinians and Syria.

"The Prime Minister can make history or become history. We all know what the peace accord with the Palestinians look like, also with Syria, provided it shakes off its ties to Iran and Hezbollah, and it would be a great shame to continue with bloodshed for another twenty years," Sheetrit said.