Bush package to boost economy

This is Bush's second visit to New York since the attacks

President Bush has announced a revitalisation package of between $60bn and $75bn for the US economy.

Mr Bush said the package was needed on top of regular expenditure to "kick start" the economy and avert a recession following the 11 September suicide attacks on New York and Washington.

We've now got a reason to do what it takes, to not only provide security at home, to do what it takes to win the war on terrorism, but we've also got to do what it takes to make sure this economy gets growing, so people can find work

President Bush

He said it would be used to boost consumer confidence, encourage business investment and take care of those laid off as a result of the attacks.

He also said he favoured further tax cuts to encourage consumer spending and help the "shocked" economy to recover.

Mr Bush made the announcement after meeting business leaders in New York, on his second visit to the city since the destruction of the World Trade Centre.

Correspondents say the visit - which also included a visit to a city elementary school - is more upbeat than the last, when he focused on meeting rescue workers and victims' families.

Plea to Congress

The package comes in addition to a $40bn emergency spending plan and $15bn in aid for the US airline industry already approved by Congress.

We believe the underpinnings are there for economic recovery

President Bush

Many economists believe that at least $100bn willl be needed to turn the economy around.

Mr Bush urged lawmakers to settle their differences over the details and approve the stimulus package "as quickly as possible".

"We've just got to ... provide a kick start to give people reason to be confident, and we will do that," he said.

"We've now got a reason to do what it takes, to not only provide security at home, to do what it takes to win the war on terrorism, but we've also got to do what it takes to make sure this economy gets growing, so people can find work."

Hope for growth

Mr Bush's remarks came after Treasury Secretary Paul O'Neill told the Senate Finance Committee that the third quarter would almost certainly show negative economic growth, but that this could be avoided in the fourth quarter if consumer confidence was revived promptly.

Senate Democrat leader Tom Daschle said $50bn was an appropriate amount for such a package adding that, although it was deficit spending, there was probably no alternative.

Most experts believe the US economy - which was already weakening before the attacks - has now tipped into recession.

Job losses have been heavy - particularly in the airline industry, with 85,000 so far announced by the country's six major airlines and at least another 20,000 by manufacturer Boeing.