Billy Kelleher (Cork North Central, Fianna Fail) | Oireachtas source

I thank the Chairman for allowing me to contribute. I represent the constituency of Cork North-Central. It covers the north side of the city and includes a large hinterland around the periphery of the city as well as the city centre. We have been devastated on several occasions and it is nothing new to the psychology of people in Cork city to have normal flooding or tidal flooding, which may come with a south-easterly. However, in November 2009 we had extensive flooding in the city. At the time I called for an independent investigation into the cause of the flooding and the contributory factors. At the time I held major concerns, along with other Deputies in Cork, about the behaviour of the ESB.

That issue has not been adequately addressed and investigated and no final conclusion has been reached. I do not expect the delegates from the Irish Insurance Federation, IIF, to comment on who was liable for the flooding, but I have grave concerns about the behaviour of the ESB on that fateful night. Only for the grace of God, nobody was drowned, but huge damage was done to property and people's lives. In the context of that flooding and other floods, does the IIF or its members ever consider taking actions against people who may have been responsible for or contributed to a flooding or does it just always pass the costs on to policyholders in general? I am concerned that the easy option in such circumstances, rather than take an action against those who may be culpable or negligent in addressing issues that allow certain areas to be flooded, is to hike up premiums throughout the country and ask the householder to pay.

In the context of the 2009 flooding, did the IIF or any of its members look at any State agency or the ESB with regard to whether they were either culpable or liable in any way or did they just decide to pay out and recoup the moneys from policyholders over a period of time? I am very concerned about this particular aspect of the 2009 flooding and I believe this committee has a fundamental role to play in ensuring some finality is brought to this issue. The ESB and others should be brought before the committee and held to account, as we tried to do previously without success.

On the issue of geocoding, in June 2011 Glanmire was flooded extensively as a result of an act of God, in the context of the amount of rain that fell. However, we are now getting evidence from constituents living in Glanmire and elsewhere whose properties were extensively flooded on that fateful night that they cannot get insurance because of geocoding. Glanmire and certain areas near the Glashaboy River have been highlighted as a high risk category. Therefore, when people from these areas apply for insurance or a quote, they are refused because of the geocoding system in use. Is that what is happening? I have had contact from people who live on the top of a hill in that area and the only way they would be affected by flooding would be if they were at sea level. Their house would certainly not be flooded. This situation must be examined.

Insurers are asking fewer people to carry a higher burden, but the theory behind insurance is to spread risk among a greater number of people. We now have situations in areas like Glanmire, which I accept are prone to flooding, where obtaining insurance is difficult. Some of these places had never been flooded previously until June 2011. Why are we allowing this to happen? Is there any appeals mechanism in place so that a person refused insurance by a number of insurers can get insurance? Can they approach the Irish Insurance Federation or to whom should they go to appeal a decision to refuse insurance or to at least be offered a quote?

I also want clarity on the issue of the value of a house whose owner is unable to acquire insurance for it. Effectively such a house is worthless, because the only person who could buy the house would be a cash buyer due to the fact that if the buyer applied for a mortgage, he or she would be obliged to obtain insurance. Most solicitors would advise a person not to purchase if insurance could not be obtained. The banks certainly would not release money for a mortgage for a house that could not be insured. This needs to be addressed. Hundreds of people in the Cork Harbour basin area, particularly the marsh area, will find it exceptionally difficult to dispose of their houses because new purchasers will be unable to get full protection and therefore will not be able to get a mortgage or buy the house.

In the context of local authorities, we have heard of cases where the authorities do not keep drains cleared, maintain flood defences or have proper alert systems in place. In view of the amount paid out by insurance companies, almost €500 million in the extensive flooding between November 2000 and June 2012 - my apologies for saying earlier the Glanmire flooding was in 2011, it was 2012 - how closely does the Irish Insurance Federation work with or monitor local authorities to ensure they carry out their obligations with regard to the maintenance of flood defences? It has been mentioned that some of the floods caused recently were due to the lack of maintenance of grilles and culverts. Does the federation do anything to ensure local authorities carry out their obligations in those areas?

The Irish Insurance Federation needs to carry out a review to ensure that people are at least given a quote from insurance companies in areas of high flood risk. I accept people may have to pay a premium, but the logic of insurance is that it carries those that have a high risk by spreading the load among those that have a low or no risk.