Willie Penrose (Longford-Westmeath, Labour)
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Question 34: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the measures she is considering to assist small and medium sized businesses which may have suffered damage or loss during the recent flooding, having particular regard to further job losses; and if she will make a statement on the matter. [44700/09]

Willie Penrose (Longford-Westmeath, Labour)
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Question 36: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if she has had talks or plans to have talks with the banks about the provision of short term credit facilities for small and medium sized-businesses who have suffered damage or loss during the recent flooding; and if she will make a statement on the matter. [44585/09]

Mary Coughlan (Donegal South West, Fianna Fail)
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I propose to take questions Nos. 34 and 36 together.

I take this opportunity to acknowledge the deep personal distress and loss suffered by so many people around our country as a result of the recent flooding caused by unprecedented weather conditions. We have all seen vivid images of the impact of the floods on family homes and farms, community resources and business premises.

Local action plans were implemented to address immediate emergency responses, to rescue and safeguard people and to protect to the greatest extent possible homes and premises from the affects of flooding. These efforts are continuing. We must acknowledge the dedication and commitment of the personnel of the various authorities and agencies, public and voluntary, communities and individuals who did outstanding work in assisting with the rescue efforts.

Government focus has been on responding through the rescue efforts and in assisting those in exceptional need or experiencing hardship as a result of the flooding. Exceptional and urgent needs payments are being paid out immediately by community welfare officers to people who need immediate basics such as food, shelter, accommodation, bedding and furniture. The Deputy will be aware of the announcement of initial funding of €10 million for a humanitarian assistance scheme, operated through the Department of Social and Family Affairs, to facilitate individuals and families returning to their homes. As this is a hardship fund, such assistance will be means tested. What is being provided is not compensation but humanitarian relief for those in immediate difficulty.

Flood damage has also caused difficulties for businesses in the affected areas. While some businesses have been able to clean up and re-open others are still dealing with flooded premises and water damaged equipment and stocks. The humanitarian assistance scheme is not intended to cover business losses. It is primarily for the insurance sector to respond to such businesses under the terms of their commercial insurance policies. It is not the State's role to put itself in loco the insurance industry. Insurance companies should respond quickly to their customers' claims and ensure that payments flow back to policyholders to facilitate early resumption of business.

The banking sector too has an important role to play in supporting businesses coping with the impact of flood damage. It is imperative that such businesses receive supportive responses from banks to requests for working capital loans and re-stocking loans and for any temporary adjustments to loan facilities already in operation. I am glad to note that one main bank, Bank of Ireland, has already announced a number of measures to assist both personal and business customers in areas impacted by the recent floods. The bank is asking such customers to make contact with their local branch or the bank's emergency helpline so the bank can assess the most appropriate support as quickly as possible. Emergency working capital facilities or loan repayment deferrals for business customers can be considered.

Within my Department, the enterprise support agencies are available to offer advice to client businesses requiring assistance. The normal financial supports from these agencies remain available to clients. I have asked the County and City Enterprise Boards in the relevant areas to report to me on the effects of the flooding on their clients' businesses. The gathering of this information will intensify as businesses move to recovery stage and the extent of their needs becomes clearer. The Minister of State, Deputy Kelleher, and I will assess as a matter of urgency this information when received.

Willie Penrose (Longford-Westmeath, Labour)
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I thank the Minister for her detailed reply. I concur with her remarks about the people and statutory agencies who worked extremely hard to assist people in these adverse circumstances. I sympathise with householders who suffered huge losses and have been displaced from their homes and with the small and medium sized business and farming community. I have first-hand evidence of what happened in Athlone, Longford, Cavan, Carrick-on-Shannon and so on. Huge devastation has been inflicted on households and small and medium sized enterprises across the geographical area. The flooding has washed away years of hard toil and perspiration and has left in its wake a trail of destruction, devastation and massive loss.

These people, including householders, business people and farmers, will have to pick up the pieces during the next couple of months. For those who have insurance, the first port of call for them will be their insurance company and statutory agencies such as the local authorities. I know Westmeath County Council and Athlone County Council have done the best they can within meagre and limited resources, which we must never forget. There are, however, people who do not have insurance and who are in a precarious situation. These people may not have been able to obtain insurance because they previously made a claim in respect of flooding. We are aware that businesses are facing challenging times and are urging people to shop local and support local businesses that have been affected in recent weeks by the flooding. Insurance companies may cover companies who make a claim for flood damage if such flooding is random.

Brendan Howlin (Wexford, Labour)
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The Deputy must ask a question.

Willie Penrose (Longford-Westmeath, Labour)
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I wish to ask a few questions of the Minister.

Brendan Howlin (Wexford, Labour)
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I will call the Deputy again on a supplementary question.

Willie Penrose (Longford-Westmeath, Labour)
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Members may have heard on "Frontline" on Monday night Mr. Peter Callan, a window manufacturer who expressed concern for the welfare of his employees and Mr. Finn from Gort who expressed his concerned about his furniture factory, employees and neighbours. Deputy Wall spoke of the steel manufacturer in Athy which has closed with the loss of ten jobs.

Given the current situation, could a grant aid system be devised to assist people to replace machinery and equipment? This could be administered through the County Enterprise Boards. Is it not time to look afresh at this issue and to consider the introduction of a national insurance scheme for people living in flood plains who cannot obtain insurance? We need to start thinking outside the box. Perhaps the Minister will address those two issues.

Mary Coughlan (Donegal South West, Fianna Fail)
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The Deputy's idea is a good one, which perhaps we should consider.

Willie Penrose (Longford-Westmeath, Labour)
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I hope the Minister will consider it. I am not point scoring.

Mary Coughlan (Donegal South West, Fianna Fail)
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No. This is a serious issue for the people concerned. I suggested the County Enterprise Boards deal with this issue given their local knowledge and so on. They have come back to me with an initial response in terms of what is happening locally. Some people have made contact and others have not. I have asked the County Enterprise Boards to reaffirm what is happening and to, if at all possible, ascertain if people are insured. I echo the call made by the Minister of State, Deputy Kelleher, that the insurance companies be up-front with those who are insured in terms of providing seed capital to assist them to get back on their feet. Without a doubt, a number of companies have agreed to do this, which is good.

On the CEBs, until such time as we assess need - some individuals have been in touch with me and my offices and we are working with them and their insurance companies or banks - we cannot articulate the overall Government response. The Deputy's proposal for the introduction of a national insurance scheme merits consideration.

Willie Penrose (Longford-Westmeath, Labour)
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Perhaps I can make some other suggestions. I do so in an effort to be constructive. Perhaps local authorities could be encouraged to grant rates and charges waivers to affected businesses and households. This would be useful. Perhaps also the Government could - this was mentioned this morning by Deputy Sheahan - take steps to amend the Credit Union Act 1977 to allow credit unions to extend from five years, which is currently the maximum period, to ten years the period in respect of loan repayments. Will the Minister ask the famous banks, whom the people subjected to this flooding are bank-rolling through their taxes, including householders, farmers and small businesses, to assist specific householders and businesses? These people have been identified by the local authorities in Cork, Westmeath, Leitrim and Galway. Will the Minister request the banks to reduce their overdraft rates, which are excessive, and to give people term loans at a competitive rate? A drop of 2% in this regard would be significant. It would be akin to the Government giving people a grant of, say, €15,000 or €20,000. It is important this is done. Perhaps also they could be asked to lengthen the period of repayment and to advance term loans and overdraft facilities at discounted rates, all of which would be positive steps.

Will the Minister liaise with the banks to ensure they do their job with regard to the people who have been affected by the flooding, including small businesses, farmers and so forth? The bank representatives have appeared before the Oireachtas committees. They tell the committees one thing but 48 hours later we hear something different. One day they did not need capital but 48 hours later they did need capital from the Government. The banks must meet their commitments without fudging or dodging. They should play a positive role to help this country get back on its feet and to help the businesses, householders and farmers who are suffering. I seek positive action from the banks, not mealy-mouthed responses.

Mary Coughlan (Donegal South West, Fianna Fail)
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I would not disagree with the Deputy's comments. The Minister of State has met with the banks' representatives on a number of occasions. We have called on them to support people in a pragmatic way. As I indicated, the Bank of Ireland has done so and my assumption is that at local level all the relevant banks will involve themselves with the humanitarian needs of these businesses, farmers and others who have been affected substantially by the flooding. Equally, an up-front payment from the insurance companies would be hugely beneficial. This issue was raised at the meeting with the Small Business Forum last week. The Minister of State took the meeting after I had to come to the House. We had further discussions on the matter in that context.

We will continue to engage on these issues. We can also engage with the Department of Finance on consideration of the amendment to the Credit Union Act.

Willie Penrose (Longford-Westmeath, Labour)
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Do not forget the insurance scheme.

Mary Coughlan (Donegal South West, Fianna Fail)
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All these things are very expensive-----

Willie Penrose (Longford-Westmeath, Labour)
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Take a look at the one in Florida.

Mary Coughlan (Donegal South West, Fianna Fail)
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I will ask Forfás to examine whether consideration should be given to setting up such a scheme.

Willie Penrose (Longford-Westmeath, Labour)
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It would be a limited scheme.