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The Japanese Government has ordered Tokyo Electric to pay one million yen in compensation to every family within 30 km of the Fukushima nuclear power plant.  The compensation is around £7,365 per family and the total compensation bill is expected to be very hefty as there are around 12 towns and cities within the radius.  Over 50,0000 households are to receive the payment by the end of next week.

However many people have complained about the level of compensation as it is thought to be too low particularly given that more than 130,000 people still live in evacuation centres.

It is not only displaced people who are able to claim compensation.  The government has set up a special panel who aim to set up guidelines on Compensation for Nuclear Damage.  So far it has been agreed that evacuees who suffer from mental trauma should also receive compensation.Farmers and fisherman also hope to be able to claim compensation as they have also incurred losses due to the radiation leaks.

The Bank of America has estimated that the total compensation bill could be as much as 11 trillion yen.  The public are concerned whether or not Tokyo Electric will be able to meet the compensation bill as the company already faces huge costs as a result of trying t o stabilise the plant.  The company has already announced plans to cut salaries and make redundancies so it is hoped that they won’t have to raise money by raising electricity prices. 

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