Israel needs more segregation?

That's what a Shas minister is saying according to this Ha'aretz article:

Housing Minister Ariel Atias on Thursday warned against the spread of Arab population into various parts of Israel, saying that preventing this phenomenon was no less than a national responsibility.

"I see [it] as a national duty to prevent the spread of a population that, to say the least, does not love the state of Israel," Atias told a conference of the Israel Bar Association, which focused on a reforming Israel's Land Administration.

The Shas minister referred to Harish, a housing project built for the Haredi community in northern Israel, saying that the Arab population from the nearby Wadi Ara was spreading into the Harish area.

Atias went on to address the issue of the Galilee, saying that "if we go on like we have until now, we will lose the Galilee. Populations that should not mix are spreading there. I don't think that it is appropriate [for them] to live together."....
.......
Atias argued that lands should be marketed to each sector separately, in order to create segregation, not just between Jews and Arabs but also between other sectors, such as ultra-Orthodox and secular Jews. "There is a severe housing crisis among the young ultra-Orthodox couples, and in the general population. I, as an ultra-Orthodox Jew, don't think that religious Jews should have to live in the same neighborhood as secular couples, so as to avoid unnecessary friction. And since some 5,000 to 6,000 religious couples get married every year, a problem arises because they require a certain kind of community life that goes along with their lifestyle."

Now this is stange to me because I thought that Israel was already a segregationist state so what's been happening?

The housing minister went on to say that the problem stemmed from faulty handling of land within the Land Administration and the Housing Ministry, among other reasons. "Today there is a serious housing crisis facing all the young couples in Israel, in part because of the limited appropriation of land in recent years in the Lands Administration and the Housing Ministry, and also due to faulty decision making which resulted from the high turnover of ministers over the last decade ? 8 ministers have held the office of Housing minister in the last decade and the Land Administration wasn?t under the ministry's authority for part of the time."

Ah, I see. Israel has always been a segregationist state but the high turnover of ministers has led to administrative inefficiencies that meant that segregation as per the zionist project wasn't enforced with due rigour.

If anyone finds this story in the mainstream English language media please let me know. I suspect this overt expression of what zionism is all about will slip below the radar.