Joan Collins (Dublin South Central, United Left)
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186. To ask the Minister for Finance his views on the refusal by two insurance companies to insure a house (details supplied) in Dublin 9 that they claim is a flood risk area; and if he will make a statement on the matter. [4411/16]

Michael Noonan (Limerick City, Fine Gael)
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I am aware of the difficulties that the absence of flood insurance cover can cause to householders and businesses. However, the provision of insurance cover and the price at which it is offered is a commercial matter for insurance companies and is based on an assessment of the risks they are willing to accept and adequate provisioning to meet those risks.  In my role as Minister for Finance, I have responsibility for the development of the legal framework governing financial regulation.  Neither I, nor the Central Bank of Ireland, can interfere in the provision or pricing of insurance products or have the power to direct insurance companies to provide flood cover to specific individuals.

Government policy in relation to flooding is focused on the development of a sustainable, planned and risk-based approach to dealing with flooding problems, with a view to addressing the increased availability of flood insurance.  To achieve this aim, there is a focus on prioritising spending on flood relief measures, development and implementation of plans by the Office of Public Works (OPW) to implement flood relief schemes. This strategy is complemented by a Memorandum of Understanding between the OPW and Insurance Ireland which provides for the transfer by the OPW of data in relation to completed flood defence schemes to the insurance industry, which should provide a basis for the increased provision of flood insurance in areas where works have been completed. 

With regard to the area referred to in your question, I am advised by the OPW that they can confirm that plans for the development of a flood relief scheme for the River Poddle are underway.  The river crosses two local authority boundaries, South Dublin County Council (SDCC) and Dublin City Council.  SDCC will take the lead role in the development of the scheme and will take proposals through planning and eventual construction.  The procurement process for consultants to develop the design is expected to be commenced shortly by SDCC.  The OPW has given a commitment in principle to fund the scheme, subject to it being viable from a cost perspective and being an environmentally acceptable scheme.

OPW also advises that there was a severe flooding event in October 2011, which affected the Poddle, with one of the main causes being blocked culverts. Some interim works have been carried out by SDCC which includes new debris screens on culverts on the river which are monitored by telemetry. Any alarms can be responded to quickly so that debris build-up can be removed in good time. Some improvements upstream have also been undertaken which has resulted in some flow being directed towards the River Dodder which lessens the amount of flood waters passing downstream on the Poddle.

The current flooding crisis has raised issues in relation to insurance and flooding. The Taoiseach and some other of my colleagues in Government met the insurance industry on Tuesday 12th January 2016 to discuss the industry's role in providing flood insurance and to obtain the industry's views on flood insurance issues such as those outlined in the correspondence supplied by the Deputy.  The Taoiseach asked the insurance industry to revert back within two weeks following further consideration of their approach to the provision of insurance in areas where demountable defences are in place, along with details on the availability of insurance in areas with flood defences.  The insurance industry did respond on Friday 22nd January and their response is under consideration.

In addition, my officials are undertaking detailed research on alternative options with the potential to ensure greater availability of flood insurance. This will be in the form of a comparative analysis of the different approaches to flood insurance in other countries.