I thank the President for his remarks.

I thank Dan Tichon for the manner in which he performed his duties as Speaker of the 14th Knesset. On behalf of all the members of the House, I wish to say that he fulfilled his task very ably, guarding the dignity of the Knesset and its spirit as a whole.

It is time to say farewell to the outgoing members of the Knesset. Each and every one of them will carry the merit of his contribution with him, with the future ahead of them all.

I wish to welcome the new members of Knesset, who will face for the first time the work of this House, and get a first taste of its quintessential qualities.

The Knesset reflects the will of the people, congregating around a democratic regime and respect for the law. Its task is not to conceal differences of opinion or ignore them. It upholds the freedom of convictions.

This House, from the first day of its inception, served as a meeting-place for different people and divergent views. It comprises not only of contrasting positions, but also of conflicting ones. Its rulings are based on the vote of the majority.

Democracy recognizes not only the dictum of the majority, but also the need to respect the minority. The House does not hide its decisions, just as it is not ashamed to build bridges and suggest compromises, with the aim of defending the unity of the many and the dignity of the few.

It must decide as required, and honour as desired.

For democracy is not only the right of every citizen to be equal, but also the equal right of every citizen to be different.

This House represents the legislature, and also has the function of monitoring the operations of the executive branch. As the legislative body of the state, it is responsible for upholding the law, and safeguarding the autonomy of its judicial system.

In its capacity as supervisor, the House has the task of criticizing and is also open to criticism. And at times, the nature of the censure is tough and blunt. This, however, should not generate resentment. Democracy is not the product of caresses. It has to stand up to intense scrutiny, to redress injustices and avert mistakes.

One must not, however, underestimate the parliamentary system of government. Even though mistakes have been made, this House has much to be proud of. It has contributed to the history of Israel huge and far-reaching accomplishments, at times by a large majority and at times by a small majority. It has withstood the test of the construction of the state, the establishment of its army, the crafting of its economy, educational and judicial systems. It ruled in matters of life and death, in war and peace. And it pursued its objectives without compromising the principles of freedom. It has nothing to be ashamed of as it eyes the mirror of history.

There is, nevertheless, room for improvement. Firstly, in the culture of its human relations and style of its debates, not to mention the electoral system, in regard to which both its supporters and opponents agree that it needs to be completed or changed. While it is true that the compelling events encountered in Israel have turned our nation into a country that cannot complain of boredom, and that it is distinguished by a stormy temperament, the House, however, could only profit were it to add to the attested freedom, some restraining discipline and representative balance.

The 14th Knesset did not complete its term. It was elected after the devastating assassination of the late prime minister and minister of defense, Yitzhak Rabin - may his soul rest in peace - under whose leadership we put into motion the ground-breaking peace-making process in the Middle East. A process which, in my view, is irreversible, and which needs to be continued until it turns into a permanent peace. The Knesset was judged by its ability to tackle this challenge. This will also be the test of its future.

It is the second time that the elections in Israel were conducted according to the system of direct voting for the prime minister and proportional voting for the Knesset. There is undoubtedly a contradiction in terms between direct voting and proportional voting that needs to be adjusted.

I wish to convey my best wishes to the outgoing prime minister, Benjamin Netanyahu, and welcome the prime minister elect, Ehud Barak, who won by an impressive majority.

The 15th Knesset opens a new page in the history of the state. To attain the heights to which we naturally aspire, we must endeavour to achieve comprehensive peace, true equality, and promote our moral values not only as individuals, but also as a people.

Only true peace will award true hope for the next generation.

In the words of Hezekiah to Isaiah : "For there shall be peace and truth in my days" (Isaiah, 39:8).

And in order to attain equality, it is necessary for the institutions of learning, from infant nurseries to universities, to be accessible to all. Today, knowledge is the key to equality. And as promised by the Rock of Israel: "The Lord GOD hath given me the tongue of the learned, that I should know how to speak a word in season to him that is weary: he wakeneth morning by morning, he wakeneth mine ear to hear as the learned." (Isaiah, 50:4)

Peace, truth and education are the foundations of present-day culture.

Israel must be a land based on moral values, and not only a territorial definition. A country that will not reconcile itself with discrimination of a national nature, between Jews and Arabs; or religious, between Ashkenazi and Sephardi ethnic communities; or of gender, between women and men; or economic, between poor and rich.

Recognition of the supremacy of the law, and uncompromising respect for the judicial system and dispensation of justice, constitute the cornerstones of our democracy. Justice needs to be courted not dismissed.

Compliments are being paid to our people for their long memory. And it certainly has a lot to remember. From the revelation of Sinai, the despicable Holocaust, to the revival of Israel.

However, the whole world, comprising our region, and including our country, is embarking on a new era that requires rich imagination, and not only long memory. For what is anticipated surpasses that which has already accumulated.

Vision, as memory, is not unfamiliar to us. The greatness of Israel does not lie only in what it has gained, but also in what it can become.

We live here in great density, and that is why we need a generous peace. Relations between peoples are no less important than borders between nations.

We live in a confined area - and it is therefore crucial that our survival hinges on intelligence, and not only on land.

We are a people with a long history, whose existence rests on the spirit and not only on its powers. In our history, the vision of the Prophets was no less important than the deeds of the Kings.

We are a people that has known affliction, destruction and holocaust. As great as is the spirit - we still have to keep the strength of our army, to avert a threat to the security of Israel.

These observations do not necessarily conflict with one another, they rather complete one another. And at the end, they not only complete each other, but also unite the people, at the roots, and the stems, and its landscape and the environment.

In this Knesset we will have to take great decisions relating to the future of the state: permanent borders, settling rapports between religion and the state; and the establishment of social norms. It calls for personal responsibility, lying on the shoulders of each and every one of us. The choices will be hard. But without them, we shall remain a divided people. It is in our capacity to come together as a nation, which is democratic, secure and aspiring for peace.