Seán Canney (Galway East, Independent) | Oireachtas source

I too thank Deputy Michael McGrath for introducing this Private Members' Bill on the topic of flood insurance and I am delighted to have the opportunity to speak on this very important issue. Like the Minister, Deputy Noonan, the Minister of State, Deputy Eoghan Murphy, and other speakers, I am fully aware of the difficulties experienced by certain households and businesses in securing flood insurance in areas at most risk of flooding.

Government policy for flood insurance is intrinsically linked to Ireland's policy to manage flood risk. The evidence is available to support the claim that the Government's investment to protect at-risk properties delivers the best and most feasible outcome to prevent flooding and is improving the availability of flood insurance cover to these areas. The Government investment in capital works of €480 million since 1995 is yielding significant benefit in protecting 12,000 properties. We have already completed 37 major and approximately 400 minor capital works, and the economic benefit to the State in damage and losses avoided is estimated at €1.2 billion.

One important outcome of the CFRAM programme is the comprehensive mapping of areas at risk of flooding. The OPW flood maps were developed under the requirements of the EU floods directive. They are area-based and cannot be used to designate individual properties. Their purpose is to identify feasible community-based plans to manage flood risk. Therefore, and in line with other member states, the OPW has made clear that the information in the maps cannot be used for commercial purposes, including by the insurance industry. The OPW has written to the insurance industry to make this clear.

This Bill proposes the introduction of what is in effect compulsory provision of flood insurance in certain specified circumstances, namely, within "designated areas", with the designation being determined by a flood hazard map issued by the OPW or as otherwise determined by the OPW. I share Deputy Eoghan Murphy's views on the Bill as it is based on a flawed understanding of the OPW maps, OPW's role and the purpose of the flood maps developed under the EU floods directive.

To support the regular exchange of information between the insurance industry and the OPW in respect of flood defence works, a memorandum of understanding between Insurance Ireland and the Office of Public Works was signed on 24 February 2014. Insurance Ireland represents 95% of the domestic insurance and 85% of the international life insurance market. The OPW has provided data to Insurance Ireland in respect of 16 completed flood defence schemes, showing the design, extent and nature of the protections offered by these works. There is now clear evidence that this strategy is working, as demonstrated by an incremental increase in the provision of flood insurance in areas protected by flood defences. An increase in flood cover from 75% to 83% in these areas has been observed up to January 2016. Where the defences are permanent in nature, the figure is 89% and where demountable defences are used, the figure is 78%.

I have received assurances from Insurance Ireland that it will reassess the risk from the deployment protocols, warning systems and emergency response systems in place where demountable defences are utilised. At that meeting, I also got agreement from the insurance industry and the State to explore further means to increase insurance availability. To achieve this goal, the working group established under the memorandum of understanding is now meeting quarterly and being chaired by the State.

As well as accelerating the exchange of data between the industry and the OPW, since last winter the OPW has accelerated its resources to complete major flood defence schemes. This year, there is a record of 12 major schemes at construction and a further 23 at design development stage. These include schemes in Bandon, Crossmolina, and Claregalway. These details have been made available to the insurance industry.

The flood risk management plans emphasise the importance of non-structural measures and support the whole-of-Government approach adopted to tackle flood risk management.

I have been chairing the interdepartmental flood policy co-ordination group and the group's progress report about the many positive policy measures in place was recently approved by the Government.

In conclusion, the Government's current policy is yielding benefits for availability of flood insurance. This benefit will accelerate in line with the acceleration of construction of and investment in defence schemes. The data exchange between the Office of Public Works and Insurance Ireland, through the memorandum, is a means of measuring this benefit as one of many positive outcomes and impacts of the Government's current policy and investment in flood risk management.

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