Anne Rabbitte (Galway East, Fianna Fail) | Oireachtas source

I thank the Deputy. I am taking this on behalf of the Minister of State, Deputy Carroll MacNeill. I first acknowledge the enormous damage caused by the recent flood events as a result of Storm Babet and the impact it has had on families, communities and businesses. Yesterday, the Government opened two emergency business flooding schemes for small businesses, sports clubs, and community and voluntary organisations unable to secure flood insurance and affected by recent flooding in counties Cork, Waterford, Limerick, Kilkenny and Louth. These provide humanitarian support towards the cost of returning their premises to their pre-flood condition. This support will have two stages. The first will commence immediately and will provide a contribution of up to €5,000, depending on the scale of damage incurred. It is anticipated this will meet the needs of the majority of those affected. The intention is to process payments as fast as possible.

However, if the premises have incurred significant damages above €5,000, businesses can apply for additional financial support, following an assessment by the Irish Red Cross. The total level of support available for both stages combined will be capped at €20,000.

Recognising the exceptional severity of the flooding in some areas, the Government has agreed to activate an enhanced emergency business flooding scheme that provides higher levels of financial support for businesses that have been severely affected in certain locations. This too will have a quick payment mechanism capped at €10,000. However, where a small number of applicants may have more significant damage, there is scope for further assistance, totalling up to €100,000. Also announced as part of this package are low-cost business loans through Social Finance Ireland. Complementing this, support to affected householders is available through the Department of Social Protection’s humanitarian assistance scheme. This covers funding for emergency income supports, replacement of household goods and internal property repairs.

These recent events have made clear the devastating impact flooding can have on communities across Ireland. In my constituency, as with many communities across the country, households and businesses are increasingly confronted with climate risks such as flooding and coastal flooding but also other climate events such as windstorms and fires. I understand exactly what the Deputy is saying. Coming from the banks of the Shannon in Portumna, we have had our fair share of flooding along the Shannon Callows.

Turning to the core of the Deputy’s Topical Issue, a centralised fund to compensate uninsured claimants following a flood event would not have the desired positive impact and could instead run the risk of unintended consequences, such as insurers pricing prohibitively for high-risk properties, an increase in premiums of low-to-medium flood risk properties, or even insurers deciding to withdraw from the market altogether. It is likely to have the opposite effect and would undermine the well-established and functioning market for insurance cover that ensures that flood insurance is widely available in Ireland. I am sure we all agree that we do not wish to undermine or negatively impact the current provision of such cover. The potential spillover effects of this should not be underestimated, with risks to the overall insurance competition landscape in Ireland and to jeopardising the gains made in insurance reform in recent years. We should not lose sight of the fact that the Government has developed a comprehensive whole-of-Government action plan for insurance reform, which addresses insurance issues in a structured and targeted manner. We are already holding the insurance industry to account in the provision of accessible and affordable insurance policies.

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