New York seeks $54bn to rebuild

Reconstruction and repairs will cost about $34bn

By the BBC's Mike Donkin in New York

New York Governor George Pataki is asking the United States Government for $54bn to rebuild downtown Manhattan and regenerate the city's damaged economy in the wake of the attacks on the World Trade Center.

Governor Pataki has requested $34bn to reconstruct the area around the World Trade Center site, and to repair damaged infrastructure like subway tracks and tunnels.

People who bet against New York have always lost

New York City Mayor Rudy Giuliani

Another $20bn will go towards stimulating a city economy that is hitting the bottom.

Governor Pataki unveiled a plan called "rebuild New York, rebuild America", which was put together after talks with business chiefs and labour unions.

It would provide help to small businesses, struggling in the wake of the attack. It would also provide new transport systems, increased security and a boost to employment.

'Urgently needed'

President George W Bush has already pledged part of the cash but New York City Mayor Rudy Giuliani, reinforcing the claim for more, said this was not the city going cap-in-hand to Washington. It was support that was urgently needed, he said.

Mayor Giuliani has announced budget cuts

He described the city's problems as huge. He cited lost economic activity, lost revenue in taxation from struggling hotels, restaurants, and shops and 100,000 lost jobs.

The mayor has announced budget cuts of up to 15% in all spending departments. Only schools and the fire service were given gentler treatment.

But Mr Giuliani also sounded a characteristically upbeat note.

"People who bet against New York have always lost," he said.

"We're going to come through this."