Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

107. To ask the Minister for Finance if the interdepartmental flood policy co-ordination group has completed its report; the current status of the matter; his views on ensuring that flood insurance cover is provided in areas where OPW flood relief schemes have been completed; and if he will make a statement on the matter. [32815/16]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

An Inter-Departmental Flood Policy Co-ordination Group has been established to examine the issue of flooding, and to ensure a whole of Government approach in the area of Flood Policy. This Group is chaired by Seán Canney TD, Minister of State with special responsibility for the OPW and Flood Relief. The OPW are the lead agency and have responsibility for co-ordinating and submitting the final report of the group to Government.  A second interim report of the Interdepartmental Group is currently being finalised and is expected to be brought to Government next week. 

As an input to the Inter-Departmental Group's work the Department of Finance has carried out a review of flood insurance with a particular focus on the strategies that other jurisdictions have implemented to increase the availability of flood insurance cover. This work examined a number of policy options and has made a number of recommendations. The completed report has been provided to OPW to feed into the report of the Inter-Departmental Group.

I am aware of the difficulties that the absence or withdrawal of flood insurance cover can cause to both homeowners and businesses and the flooding crisis in late 2015 raised issues in relation to insurance and flooding.  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 or businesses. 

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.  This involves working to improve the availability of flood cover by:

- prioritising spending on flood relief measures by OPW and relevant local authorities; and

- improving channels of communication between the OPW and the insurance industry in order to reach a better understanding about the provision of flood cover in marginal areas.

To achieve this aim the Office of Public Works (OPW) is carrying out assessments of 300 areas under the Catchment Flood Risk Assessment and Management (CFRAM) programme and each area is on target to have a Flood Risk Management Plan (FRMP) by the end of 2016. Decisions on future investment in relation to flood risk management will be informed by the FRMP's

I am strongly of the view that flood insurance cover should be provided in areas where OPW flood relief schemes have been completed. The Government strategy is complemented by a Memorandum of Understanding between the OPW and Insurance Ireland which provides for the exchange of data in relation to completed flood defence schemes which should provide a basis for the increased provision of flood insurance in areas where works have been completed.