Bush promises to tackle poverty during rebuilding

US: President Bush has promised to tackle the poverty and racial inequality exposed by Hurricane Katrina, and to pay for most…

US: President Bush has promised to tackle the poverty and racial inequality exposed by Hurricane Katrina, and to pay for most of the disaster with federal funds.

Addressing a prayer service at the National Cathedral in Washington, Mr Bush said that as the US cleared away debris of the hurricane it should also clear away the legacy of inequality.

"Some of the greatest hardships fell upon citizens already facing lives of struggle, the elderly, the vulnerable and the poor.

"As we rebuild homes and businesses we will renew our promise as a land of equality and decency, and one day Americans will look back at the response to Hurricane Katrina and say that our country grew not only in prosperity but in character and justice."

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In a televised address from New Orleans on Thursday evening, Mr Bush promised a massive effort to rebuild the Gulf Coast, to resettle evacuees and to strengthen the levees that broke.

He announced the creation of a Gulf Opportunity Zone to offer tax incentives and loans to small businesses to encourage the return of investment to the region.

Evacuees who have lost their jobs will receive up to $5,000 to pay for retraining and childcare while they seek new jobs.

An Urban Homesteading Act will give people on low incomes government-owned land to build houses through a lottery, and the federal government will pay for "the great majority" of the cost of rebuilding roads, bridges, schools and waterworks.

Mr Bush acknowledged that the federal response to the disaster was inadequate, and promised to find out what went wrong.

"When the federal government fails to meet such an obligation I, as president, am responsible for the problem and for the solution.

"So I've ordered every cabinet secretary to participate in a comprehensive review of the government response to the hurricane.

"This government will learn the lessons of Hurricane Katrina. We're going to review every action and make necessary changes so that we are better prepared for any challenge of nature or act of evil men that could threaten our people."

Mr Bush said that American without New Orleans was unimaginable. However he acknowledged the difficulties posed by the city's physical situation.

"In the long run the New Orleans area has a particular challenge because much of the city lies below sea level.

"The people who call it home need to have reassurance that their lives will be safer in the years to come. Protecting a city that sits lower than the water around it is not easy, but it can and has been done."

During a press conference with Russian president Vladimir Putin yesterday Mr Bush said he would set no limit on the cost of rebuilding the Gulf Coast.