Bush restates pledge on Katrina rebuilding

President George W. Bush this afternoon underscored his goal of a massive rebuilding effort to make storm-battered Gulf Coast…

President George W. Bush this afternoon underscored his goal of a massive rebuilding effort to make storm-battered Gulf Coast communities "better and stronger," brushing aside growing Republican worries about the impact on the budget deficit.

"Out of this tragedy comes an opportunity to harness the good and gracious spirit of America, and deliver new hope to neighborhoods that were suffering before the storm," Mr Bush said in his weekly radio address.

Mr Bush has said the federal government will assume the bulk of the costs for what he says will be "one of the largest reconstruction efforts the world has ever seen." He said on Friday he would not raise taxes to pay for it.

Mr Bush, who is intent on shoring up confidence in his handling of Katrina's aftermath after a slow initial federal response, has said he believes the budget can handle the costs and that he would look for ways to cut unnecessary spending.

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"I have made a pledge of the American people: Throughout the area hit by the hurricane, we will help our citizens rebuild their communities and their lives," he said.

The effort will involve repairing public infrastructure, including roads, bridges, schools and water systems in the area ravaged by Hurricane Katrina and offering incentives for businesses to New Orleans and other cities.

He did not give a price tag for the long-term recovery, which some in Congress think could exceed $200 billion. Fiscal conservatives in both houses of Congress are fretting about the budget deficit, which hit a record $412 billion last year but is forecast to ease to $333 billion this year.

Spending in the hundreds of billions could easily send the deficit to new heights. Oklahoma Republican Senator Tom Coburn has threatened to hold up future emergency spending bills if offsetting budget cuts are not found.

Agencies