Defense Minister Ehud Barak said on Tuesday evening that he does not know how long the ceasefire with Gaza's terror groups will hold. Therefore the period of relative calm, he said, "should be used to strengthen the civilian infrastructure and fortification of Sderot and the Gaza-vicinity communities."

Barak added that the time should also be used to push forward with the negotiations to secure the release of kidnapped soldier Gilad Shalit.

Speaking after a party rally in Dimona ahead of the municipal elections, the Labor chairman said: "There are difficult decisions ahead, and we will pay a heavy price. But it is our moral duty as commanders to do everything possible to bring Gilad home safe and sound."

Barak also commented on the transfer of NIS 72 million to the Gaza Strip. "That money isn't going to Hamas' hands," he emphasized, "it belongs to the Palestinian Authority and we transferred it at the behest of Palestinian Prime Minister Salam Fayyad.

"Our position is that we support the PA and block Hamas. This was the PA's request, it is their money and they know what they're doing with it."

Earlier in the day Barak observed a live fire drill in the Golan Heights. He addressed Hizbullah's growing strength in Lebanon and said: "It's not by chance that we are training her in the Golan with such intensity and scope."

Barak expressed his optimism regarding the IDF's capabilities. "The army is back to what it once was, to the right values, to the right kind of training, and it is our duty as a government to ensure it has the means to continue this level of training," he said.

When asked about the Finance Ministry's intentions to cut the defense budget, Barak answered: "We live in a country where security is not only built on tanks and aircraft, but also in education and welfare and dealing with (social) problem, it's in the fostering of excellence."

The minister stressed however that Israel hasn't the "luxury" of damaging the defense budget.