Coalition problems surfaced on Monday as the 11 Yisrael Beitenu MKs absented themselves from the no-confidence vote in the government in protest over the fact that the faction did not receive the chair of the Knesset Finance Committee.

Labor faction chair MK Yoram Marciano accused Prime Minister Ehud Olmert of failing to meet his obligation to transfer funds for social issues under the Economic Arrangements Bill, and threatened to break up the coalition.

Labor demanded that Yisrael Beitenu be immediately ousted from the coalition and that Avigdor Lieberman be dismissed from the cabinet as a result of the absence.

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Yisrael Beitenu argued that when it joined the coalition it gave up the position of chair of the State Control Committee, but received nothing to replace it. The faction is demanding another ministerial portfolio, as well as the chairmanship of the Finance Committee.

"The Labor faction would like to tell the prime minister that it will not ignore the fact that Yisrael Beitenu acts in the coalition according to its desire for jobs and positions," Marciano said.

Marciano and Olmert had words with each other on leaving the gala concert of the Israel Philharmonic Orchestra at the Knesset on Monday.

Coalition chair MK Avigdor Itzchaky (Kadima) seemed unbothered by Yisrael Beitenu's absence. "They said last week they weren't going to be there," he said.

Following his angry exchange with Olmert, Marciano said, "the Economic Arrangements Law passed thanks to Labor. We can see to it that the budget won't pass and the coalition will break up."