President Bush & Aid Comes To The Hurricane Katrina Victims
Friday, September 02, 2005SUSIE GHARIB: More than $100 billion. That`s how much the damage from hurricane Katrina and the ensuing flood in New Orleans could end up costing. The estimate was announced today by Risk Management Solutions which had originally assessed the cost of Katrina at $25 billion. But that was before the levees burst in New Orleans flooding at least 150,000 properties according to Risk Management. In fact, the firm says it`s the most damaging flood in U.S. history.
ROBERT MUIR-WOOD, CHIEF RESEARCH OFFICER, RISK MANAGEMENT SOLUTIONS: The situation in New Orleans indicate that actually probably people weren`t sufficiently informed about the probabilities were that this event could happen and what the consequences are actually going to be, because the consequences I think are now proving to be much more significant then anybody had actually thought through.
GHARIB: Meanwhile, Congress pledged $10.5 billion to fund the relief efforts in the Gulf coast region. Nearly all of that money is earmarked for the Federal Emergency Management Agency. A half billion goes to the Department of Defense to help the victims of hurricane Katrina. The president called the measure a small down payment for what will be a years long rebuilding effort. Stephanie Dhue reports.
STEPHANIE DHUE, NIGHTLY BUSINESS REPORT CORRESPONDENT: Walking the storm ravaged streets of Biloxi, handing out hugs along the way, President Bush saw the devastation and heard from survivors of hurricane Katrina. While he admitted the results of the relief effort were inadequate, he promised to repair the region.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We`ve got a lot of rebuilding to do. First, we`re going to save lives and stabilize the situation. And then we`re going to help these communities rebuild. The good news is -- and it`s hard for some to see it now -- that out of this chaos is going to come a fantastic Gulf coast, like it was before.
DHUE: But there are rumblings that rebuilding New Orleans may be a mistake. House Speaker Dennis Hastert questioned if it made sense to rebuild a city that sits seven feet below sea level. He later clarified that saying he didn`t mean New Orleans would be abandoned or relocated. Still, Hastert`s comments infuriated members of the Congressional Black Caucus.
REP. ELIJAH CUMMINGS (D) MARYLAND, CONGRESSIONAL BLACK CAUCUS: We are rebuilding Baghdad, but we got a speaker of the House who says he questions whether we should rebuild New Orleans. Give me a break.
DHUE: On Capitol Hill, lawmakers were promising to rebuild.
REP. TOM DELAY, HOUSE MAJORITY LEADER: Beyond this initial installment of funding, we will provide for humanitarian relief as long as the victims of this storm need it.
DHUE: Lawmakers are also considering the long term economic impact, to the affected states and the nation.
REP. ROY BLUNT, HOUSE MAJORITY WHIP: I suspect that means some kind of stimulus package out there to be sure that we see the economy move forward as it needs to rather than it might in response to this disaster.
DHUE: But for now, the focus is still getting the victims of hurricane Katrina the food, water, and medical attention they need. Stephanie Dhue, NIGHTLY BUSINESS REPORT, Washington.
