Mr. Pat O'Connell:

I thank the committee for the opportunity to state why we support Deputy Michael McGrath's Bill. The Cork Business Association, founded in 1957, is a not-for-profit organisation representing almost 200 businesses in Cork city. Membership consists of a mix of local indigenous businesses and national and multinational retailers. As an organisation, we cover a wide sectoral base, including the retail, hospitality, financial, property, insurance, catering, educational and service industry sectors. A significant number of our members are on the city centre island, circled by the north and south channels of the River Lee. The flood relief works proposed by the OPW are due to begin in 2018 and have been widely welcomed by businesses in Cork. Current estimates for the cost of these works is €140 million to €150 million, the largest ever flood scheme proposed in this country and a significant investment of taxpayers' money. Confidence in these works has been taken from the OPW’s track record of very successful schemes delivered in Mallow, Fermoy, Clonmel and Waterford. These have all been designed to meet a one in 100 year event and in all cases have proved very effective to date.

Since March 2014, a memorandum of understanding has been in place between the OPW and Insurance Ireland which allows for the exchange of flood defence data. Many inadvertently believed this transparency and delivery of robust flood defences would naturally lead to realistic flood insurance being reinstated. Alas, Irish insurance companies, unlike their UK counterparts, have not shown the same level of social responsibility. Given the massive investment of taxpayers' money, estimated to be in the region of €500 million over the next few years, the openness of the OPW in sharing information, the track record of OPW and given that insurance by its nature is the management of risk where the premiums of the many pay for the losses of the few, surely we as taxpayers and clients have the right to expect more from our insurance industry. Insurance is not a solution for possible loss. However, being able to transfer or share risk, traditionally done through insurance, is critical to the economic success of business, communities and regions. The abdication of responsibility in this instance by the insurance industry is truly reprehensible.

The late Owen O'Callaghan, a prominent and active member of the Cork Business Association and one of Cork city's largest developers, said on several occasions that many retail operations have bypassed Cork city because they are unable to get flood insurance. If the current status quopersists when the OPW works in Cork are completed, how are we as a business organisation expected to encourage and recommend existing businesses to expand and spend thousands upgrading their premises? How do we expect inward investment, whether domestic or foreign, to our city when our insurance industry shows no faith in the flood defences. There are already areas suffering dereliction and neglect following the last flooding. Business owners have been unwilling or more likely unable during what was the worst recession to hit this country to raise the funds to repair the damage. Many have suffered physical or psychological illness from the anxiety and stress. The immediate and future circumstances of many have utterly changed. The human and economic cost has left many business owners broken or broke.

Let there be no doubt the current status quois unsustainable. On behalf of myself and my colleagues, I thank the committee for the opportunity to put forward our views on this issue and to raise some important questions about the provision of flood insurance. Our sincere hope is that these questions, views and concerns can be addressed in a meaningful way. We are happy to answer any questions from committee members.