In January 2004, Katz announced a plan to substantially increase the number of settlers in the Golan Heights. In March 2004, he suggested making a referendum among all registered members of Likud, which allowed Ariel Sharon, intent on mobilising public opinion to back his Gaza disengagement plan, to get round opposition within the Likud convention, dominated by Israeli settler pressure groups. Katz along with Benjamin Netanyahu, Silvan Shalom and Limor Livnat announced that they would resign from the government within two weeks if Sharon did not agree to hold a national referendum on the pull out plan. In the same period, he lobbied, together with the World Zionist Organization, to have $32 billion set aside to provide incentives and subsidies for settlements in the West Bank.