Bush Vows New Orleans 'will Rise Again'

The US president, George Bush, today accepted responsibility for his administration's failure to respond adequately to Hurricane Katrina.

He also pledged that the government would pay for most of the costs of rebuilding the American Gulf coast in one of the largest reconstruction projects in US history.

"When the federal government fails to meet such an obligation, I as president am responsible for the problem, and for the solution," he said. "This government will learn the lessons of Hurricane Katrina."

Mr Bush was speaking from an empty Jackson Square in New Orleans during his fourth visit to the hurricane-ravaged area. Critics have said Washington's response to the disaster was slow and inadequate.

He vowed that the government would do "whatever it takes" to rebuild the region.

"Tonight I ... offer this pledge of the American people: throughout the area hit by the hurricane, we will do what it takes, we will stay as long as it takes, to help citizens rebuild their communities and their lives," he said.

Experts have estimated that the reconstruction project could cost as much as $200bn (£111bn). The US congress has already approved $62bn for the disaster, but this is expected to have been spent by next month.

The official death toll climbed to 795 today after Louisiana confirmed there were 558 dead in the state. There have been 218 confirmed dead in Mississippi and 19 in Florida, Alabama, Georgia and Tennessee.

Mr Bush said Americans had "every right to expect" more effective federal action in a time of emergency. He ordered the Homeland Security department to undertake an immediate review of emergency plans in every major city.

"Our cities must have clear and up-to-date plans for responding to natural disasters and disease outbreaks or a terrorist attack, for evacuating large numbers of people in an emergency and for providing the food and water and security they would need," he said.

Mr Bush proposed setting up "worker recovery accounts" providing up to $5,000 each to hurricane victims for job training and childcare during their hunt for work. He also proposed the creation of a Gulf Opportunity Zone in Louisiana, Mississippi and Alabama, offering tax breaks to encourage businesses to stay in the devastated region and new businesses to open.

Also today, the Mississippi attorney general, Jim Hood, began suing five US insurance companies, saying they had tried to trick hurricane survivors out of millions of dollars in homeowner claims.

Mr Hood said the companies had asked homeowners to sign forms that acknowledged they sustained flood damage, which is not covered by their insurance policies. "It is taking advantage of people in the most dire straits," he said.

The companies - Nationwide Mutual Insurance, Mississippi Farm Bureau Insurance, State Farm Fire and Casualty, Allstate Property and Casualty, and United Services Automobile Association - deny the accusations.

The mayor of New Orleans, Ray Nagin, said today that three districts would reopen next week and the historic French Quarter would be open by the end of September.

"There is no way to imagine America without New Orleans, and this great city will rise again," said Mr Bush.

Meanwhile, a remembrance service for the victims and those affected by Hurricane Katrina will be held at St Paul's Cathedral in London at 12.30pm today.