Olmert made the remarks a day after an Arab Israeli resident of East Jerusalem went on a deadly bulldozer rampage, killing three Israeli citizens.
"I think we have to be tougher in part of the measures we take against terrorists, especially terrorists who are part of our internal fabric of life." (Www.hxen.com)
In Wednesday's attack, the 30-year-old assailant, Hussam Dwayat, used a massive construction vehicle to ram buses, crush cars and target pedestrians. Three people were killed before Israeli security personnel shot and killed him.
Police said they believe Dwayat acted alone and was not connected to any Palestinian militant group.
But city officials confirmed that they issued an order to demolish Dwayat's home in 2005 on grounds that it was built illegally.
Dwayat won a stay in court, but was ordered to pay 166-thousand shekels or 50-thousand US dollars in fines for building his house without a permit.