Kevin Humphreys (Dublin South East, Labour) | Oireachtas source

The Minister of State, Deputy Brian Hayes, mentioned what happened in February 2002 when €65 million worth damage occurred in the Dublin area. That was 12 years ago and we are still waiting for the insurance companies to react and for people in those areas to get flood insurance. When people get back on their feet, which I believe they will, and the repairs are done, they still have to face the consequences of the lack of insurance in the event of their houses being flooded again.

I want to focus in my contribution on the issue of flood insurance. Tens of thousands of homes cannot get insurance cover. That means people cannot sell their homes or buy new homes. They are trapped in a catchment area. If they bought a two-bedroomed house they cannot move to a three-bedroomed house and if they want to downsize they cannot do so because if they cannot get flood insurance they cannot get a mortgage.

As the Minister of State, Deputy Hayes, said on "Prime Time" last Tuesday, we need to discuss whether the State needs to become the insurer of last resort. We as legislators have a responsibility to act. The insurance industry in Ireland has been subject to light touch regulation and that needs to be changed. In that respect, I need only mention PMPA, the Quinn Group or the RSA. As Deputy Catherine Murphy said, entire areas have been blacklisted. That is the position even if one's house is on the top of a hill where it cannot be touched by flood water, as has happened to home owners in Lucan. It is unbelievable.

I ask that on foot of this debate a national survey would be carried out to establish exactly how many homeowners cannot get flood insurance. The Minister for Finance, Deputy Noonan, referred to a memorandum of understanding between the OPW and the insurance industry. That will only work for those areas that have had flood protection works carried out by the OPW. I will not hold my breath for bringing in of such a memorandum of understanding.

We need to examine what is happening elsewhere. In the UK there is the operation of a statement of principles between the Government and the insurance industry. That allows for insurance companies to continue insuring areas where flood defence work has taken place. That agreement will be replace by a proposal called Flood Re, the impact of which is that £10.50 put on every policy to cover those areas that are being flooded. The flood forum in Cork has put forward a very good scheme that would have a limited liability.

On foot of this debate we should go to the Central Bank - the Financial Regulator - to make sure that insurance companies play a fair and clear role in this regard. Home owners who have had flood insurance for 30, 40 and 50 years who never made a claim now find that can not longer get insurance. This is not acceptable. Action is needed. I heard Deputy Barry Cowen speak about bringing a Private Members' Bill on this issue before the House. I spoke last week, last month and last year on this issue. We need to move on. People need certainty security and flood insurance. This House needs to act and act now.

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