Terrorist strikes to cost 'Big Apple' up to $105bn

Mayor Rudolph Giuliani urged people in New York yesterday to "relax and go about their lives," but with the increased security measures introduced in the city after the US began attacking targets in Afghanistan on Sunday, it is becoming harder to do just that.

The Big Apple is facing a $90-$105 billion (€98-€111 billion) loss to its economy because of the destruction of the World Trade Centre on September 11th, according to New York comptroller Mr Alan Hevesi.

In a metropolis dependant to a great extent on the financial industry and tourism for its vibrancy, the increased security measures and edginess about a new attack are having a depressing effect.

New York has lost 30 million square feet of office space and its hotels and restaurant businesses are experiencing the worst crisis in memory, at a time when many New Yorkers are propelled by a psychological insecurity to seek a living elsewhere.

In a report on the effects of the catastrophe, Mr Hevesi said New York could see 115,000 jobs vanish by next summer including 29,000 at airlines, hotels and restaurants, and 15,000 in the securities industry.

"We know now that we have already lost $45 billion in the attack... in lost infrastructure, buildings, equipment and human lives," Mr Hevesi said. The cost of human lives could not be quantified, he said, but based on lost salaries and wages the cost to the city from the deaths could be $11 billion over the victims' lifetimes.

The cleanup, police overtime, lost rent and businesses, and treatment of surviving victims could cost an additional $42 billion said Mr Hevesi, who hopes to recoup the losses from insurance and federal aid. The removal of rubble alone could cost $5 billion, rebuilding $14 billion, overtime $3 billion and replacement of lost vehicles $1 billion (one fire department accident response engine costs $400,000).

Before the attacks, New York was already "going into a slide and maybe a recession - this makes it much worse," he said. Many New Yorkers fear a return to dirtier streets, greater crime, disintegrating schools and a move to the suburbs in New Jersey or Connecticut. The city's projected budget deficit of $4 billion, revised since the attacks, has forced the New York administration to order all services curtailed.

Insurance industry officials say Mr Hevesi may be exaggerating the extent of the losses.

The federal government has set aside $20 billion for recovery efforts and New York is asking for a further $20 billion to cover losses before insurance payments and private aid, much of it for the families of the 5,372 people missing or known dead from the attacks.