Thomas Gould (Cork North Central, Sinn Fein)
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166. To ask the Minister for Finance if he is aware that banks will not give loans to purchase businesses in Blackpool, County Cork due to a lack of flood relief protection. [36358/24]

Jack Chambers (Dublin West, Fianna Fail)
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As Minister for Finance, I have policy responsibility for the development of the legal framework governing financial services regulation, including for the insurance sector. In terms of the challenges associated with obtaining flood cover, please be aware that the provision of such cover is a commercial matter for insurance companies, based on an actuarial assessment of the risks they are willing to accept. Government cannot interfere in the provision or pricing of insurance, or direct as to what cover is provided, as is reinforced by the EU framework for insurance (Solvency II Directive).

In terms of the outcome of the current approach to flood insurance, it should be noted that according to EU level data, Ireland has an above-average rate of flood cover relative to the rest of the EU. However, it is acknowledged that some households are still experiencing difficulties, particularly in areas with demountable flood defences which require varying degrees of human intervention in their installation. Where Government has invested in flood defences, Government’s reasonable expectation is that the industry should improve the level of cover in areas where demountable defences exist.

The industry representative body Insurance Ireland has previously informed the Department that generally when insurers are assessing flood risk for underwriting purposes they will utilise third-party bespoke flood risk maps. These are based on their individual historical claims experience/risk surveys undertaken of locations, and other information such as constructed flood defences provided to Insurance Ireland by the Office of Public Works (OPW).

Within the parameters of the regulatory framework, the decision to grant or refuse credit (or to decide the amount of credit to provide in response to a particular application) is a business decision to be made by the regulated entity and, as the Minister for Finance, I have no function or role in such matters.

There are various independent mechanisms in place to aid borrowers in their dealings with lenders. The Financial Services and Pensions Ombudsman (FSPO) is an independent, impartial, fair and free service that helps resolve complaints from consumers, including small businesses and other organisations, against financial service providers and pension providers.

In 2010 my Department established which provides an independent, impartial credit appeals process for SMEs, including sole traders and farmers. The role of Credit Review is to help SMEs who have had an application for credit of up to €3 million declined or reduced by participating banks (AIB, Bank of Ireland, PTSB) and who feel that they have a viable business proposition.

Credit Review also examines when SME borrowers feel that the terms and conditions of their existing loan, or a new loan offer, are unfairly burdensome or have been unreasonably changed.