Dutch Prime Minister Jan Peter Balkenende has defended Crown Prince Willem-Alexander's plans to build a holiday home in Mozambique. He was speaking during a heated parliamentary debate on the issue.

The crown prince and his wife, Princess Máxima, are planning to construct a luxury resort on a peninsula on the Mozambican coast, where they will have a large villa. The prince and the developers involved say the billion-euro project will benefit the local population and will include a school and a clinic.

However, their claims are disputed, and it is said local people are being chased off their land to make way for the project. The controversy has led to critical questions being asked both in the Dutch press and by MPs.

Opposition in parliament is being led by left-wing parties, with MPs calling for the project to be scrapped. They say it is bringing the royal family into disrepute. Recent opinion polls indicate the royal family is becoming less popular with the Dutch.

Photo: Queen Beatrix, Prince Willem-Alexander and Princess Máxima (ANP)