Helen Clark. Pic: NZPA

Wellington, Jan 18 NZPA - The Labour Party says the Middle East peace process will be set back if Israel's troops continue to occupy the territory.

Foreign affairs spokeswoman Helen Clark described Israel's unilateral ceasefire, which began today, as a necessary step towards stopping the conflict.

"The tragedy is that this ceasefire, declared unilaterally by Israel, comes after 22 days of intense conflict which should never have happened and which has immeasurably set back the peace process between Israel and the Palestinians," she said in a statement.

"That process will fail to gain traction now if Israeli troops continue to occupy Gaza and if the blockade of the territory continues."

Miss Clark said the world was looking to Hamas to stop its rocket attacks "while acknowledging that their impact has been but a tiny faction of that of the Israeli strikes on Gaza".

The Government has taken a neutral stance. Since the conflict began, Foreign Minister Murray McCully has been urging both sides to agree to a ceasefire.

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