50 Million state aid agreed for Lorca - but may be more quakes

 

The Murcia Regional President, Ramón Luis Valcárcel, together with the mayor of Lorca, Francisco Jodar, agreed a new Royal Decree of 35 measures yesterday, to assess and repair the full effects of the damage caused by the earthquakes that hit the town on 11 May. These measures is expected to be adopted at the Council of Ministers on Friday after parliament approves the draft later today.

Following a meeting in Madrid between local and regional politicians, together with national government Ministers, the situation is said to have been evaluated, and financial aid has been agreed upon between the three governments. The plan will have an overall budget of between 40 to 50 Million euros, which will be added to Insurance payments the other aid already paid out in to the town.

The Presidential Minister told the media that "The three governments have shown a genuine cooperation and a common spirit to resolve this very serious problem," he went on to say how the plan is for the long-term, and that there "it is important for the Government made a Royal Decree and now adopt other new measures with 35 still needed."

Tax and other financial benefits were also discussed for the town - for example the reduction of notary costs for registering new housing and a 50% reduction of municipal taxes on local businesses. All of which are intended to stimulate the local economy after suffering a heavy setback in the weeks following the May earthquakes.

The meeting also addressed the Insurance Consortium's compensation claims, which have to date resolved 26,000 of the 29,000 claims filed. The Government is also processing costs 20 million euros to cover emergency expenses, demolition, cleaning etc.. on top of the 3 million already paid out to the town.

The Ministry of Economy and Finance has already made 207 payments for the repair of houses affected by the earthquake, to a total of 440,000 euros. The Cabinet has also approved a further 367 cases, which leaves a further 1075 to be addresses.

The Ministries of Development, Tourism and Culture are also jointly working to repair and restore the cultural assets of the town, such as the Palacio de Guevara, the Wall of Lorca, the Porch of San Antonio and the Church of San Mateo, the Castle and the Parador, in order to encourage trade and tourism in the Town, which have been allocated a budget of 5 Million euros.

Meanwhile, IGN Geologists have not ruled out the possibility of further siesmic activity in the area and have called upon state building engineers to revise their building regulations to take such activity into account.