"What we're proposing is that projects authorized by the Palestinian (National) Authority and have a reliable third-party guarantor inside the Gaza Strip -- under the auspices of the international community," he told Xinhua.

Israeli security personnel inspect goods at the Kerem Shalom Crossing terminal before it is transferred to Gaza Strip, south Israel, June 21, 2010. The Israeli government on Sunday announced the steps to loosen its blockade on the Gaza Strip. [Rafael Ben-Ari/Xinhua]

"We do have a problem with rockets, missiles, other war materials that are ultimately shot at our people. It's not a theoretical problem. We've had thousands of rockets shot at our civilian population. We don't want to see it happen again," Regev said at the conclusion of the weekly subcommittee session.

Palestinian groups in Gaza had fired Kassam and mortar rockets at the town of Sderot and neighboring communities surrounding the enclave. Addressing it as one of the major threats to the Jewish state, Israeli army launched a massive offensive against the strip in late 2008, which claimed the lives of some 1,400 Palestinians and 13 Israelis.

The lack of building materials has been standing in the way of Gaza's reconstruction, since most of its infrastructures and buildings were destroyed during the three-week military operation.

Facing internal criticism against the government's decision to ease the blockade on Gaza, Israeli Prime Minister Benjamin Netanyahu told Israeli parliament members on Monday that "over time, the effectiveness of the civilian siege has dropped," and the blockade "gave Hamas a PR advantage."

Israel's change of policy came after the May 31 incident, when Israeli navy commandos boarded a Gaza-bound pro-Palestinian international aid flotilla and killed nine activists on one of the ships.

The bloodshed brought about a chorus of criticism against Israel from the international community, who has since been pressuring the Jewish state to lift or ease the Gaza siege.

Since the deadly raid, pro-Palestinian groups have vowed to send more Gaza-bound aid ships.

"Israel will continue to make sure that all cargo reaching the Gaza Strip is checked, is examined," Regev said when asked what Israel's response would be to the ships coming in the future.