Swiss government to pay $56,000 to each victim of New Year bar fire

Switzerland said on Wednesday it would make a one-off payment of 50,000 Swiss francs ($56,000) to severely injured survivors and bereaved families of the New Year bar fire in the ski resort of Crans-Montana that killed 41 people and injured over 100 more.

The so-called solidarity contribution aims to provide swift financial support to victims and serve as a gesture of compassion, Switzerland's governing Federal Council said.

In principle, the payment should apply to each individual who lost their life as well as every person who was hospitalised, the Federal Council said in a statement.

"The Federal Council shares with the victims and their families the desire for truth and justice," Swiss President Guy Parmelin told a news conference. "We too want to know what happened, why, and how it could have been prevented."

Witnesses and prosecutors said the blaze appeared to have been started by the use of sparkling candles that ignited foam soundproofing on the bar's basement ceiling.

Swiss authorities said 115 people were injured in the fire. Most of those who died were teenagers and many of the victims were foreigners, including several from France and Italy.

The Federal Council said it will also convene a roundtable to help victims, insurers and authorities reach out-of-court settlements, potentially averting lengthy legal battles. It aims to contribute up to 20 million francs to such settlements.

The Federal Council said it hoped parliament would quickly expedite the legislation it had drafted to help the victims.

The government also aims to allocate 8.5 million francs to help affected cantons cover extraordinary costs.

The government said it had taken the steps following analysis by the Federal Office of Justice which found gaps in existing support systems, which are primarily designed for individual cases and struggle with large-scale disasters.

-Reporting by Dave Graham; Editing by Madeline Chambers/Reuters