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SELECT COMMITTEE ON FINANCE AND THE PUBLIC SERVICE debate -
Wednesday, 27 Nov 2002

Vol. 1 No. 2

Message to Dáil.

In accordance with Standing Order 85, the Clerk to the committee will send the following message to the Clerk of the Dáil:

The Select Committee on Finance and the Public Service has completed its consideration of the following Estimate for the Public Services for the services for the year ending on the 31st of December, 2002: Vote 2, Office of the Houses of the Oireachtas and the European Parliament, Supplementary Estimate.

On behalf of the select committee, I thank the Minister of State and his officials for attending today's meetings. The Minister of State will stay with us to discuss the Supplementary Estimate, Vote 44, Flood Relief.

Vote 44 - Flood Relief (Supplementary).

I thank the select committee for agreeing to meet this afternoon to consider the Supplementary Estimate, 2002, Vote 44 - Flood Relief. As it currently stands, the main element of Vote 44 is the provision of €8.5 million in the form of humanitarian aid to the victims of the severe flooding which occurred throughout the country over 1 and 2 February 2002. Members will recall that the Government acted quickly to deal with that situation and decided on 5 February to put in place a scheme of humanitarian assistance to be administered by the Irish Red Cross Society. In all, over 725 applications for aid were subsequently received and a total of €8.5 million was paid out under the scheme.

I am seeking approval for a Supplementary Estimate for Vote 44 to enable us to fund a similar humanitarian aid scheme for those who have suffered severe hardship and distress arising from the most recent flooding. The cause of the recent flooding was exceptionally heavy rainfall during a two day period on 9 and 10 November, which led to flooding of homes in Athlone, and again on 14 and 15 November, which primarily affected the east of the country, particularly Dublin city, Meath and Kildare.

On its own, this concentrated heavy rainfall would not have been expected to have such disastrous consequences, but when combined with two and a half times the average rainfall in the month of October and the first two weeks in November, it led to the serious flooding we have witnessed.

In view of the seriousness of the situation and the numbers of homes affected by the flooding I asked my officials in the Office of Public Works to begin preparations for initiating a humanitarian aid scheme similar to those schemes approved by the Government in similar situations in the past - in 1996, November 2000 and February 2002.

At its meeting on 19 November 2002, the Government approved my proposal to initiate a similar humanitarian aid scheme in this case. As before, the scheme will be administered by the Irish Red Cross Society on behalf of the Office of Public Works. I would like to express my particular thanks to Mr. David Andrews, chairman, and the officers and staff of the Irish Red Cross Society for their willingness to become involved again in this humanitarian aid scheme.

The eligibility criteria are extreme hardship, homelessness, damage to homes and serious injury. It is important to remind members that the scheme provides for relief of hardship and not compensation for losses. Its main function is to assist people to restore their lives to some semblance of normality.

The closing date for receipt of applications by the Irish Red Cross Society is 6 December. The society will then commence the process of evaluating applications and visiting all applicants to assess need. Payments will commence a number of weeks later. I am confident the society will deal speedily and sympathetically with all applications for aid.

I would like to take this opportunity to once again express sympathy, on my own behalf and that of the Government, to everyone affected by the flooding in recent weeks. It has been a traumatic time for people whose homes have been flooded.

An amount of €5 million is sought on this occasion to cover the cost of the scheme. Recent comments in the media suggested that approval of funding for this scheme somehow represents a reversal of Government decisions on the Estimates. I welcome this opportunity to stress that this is not the case. These humanitarian aid schemes are, of their nature, entirely unpredictable and it is not the practice to provide for them in advance in the Estimates. The Supplementary Estimate of €5 million will bring the total requirement for Vote 44 in 2002 to €13.564 million.

Following discussions with the Taoiseach this morning, I have asked the Office of Public Works to make arrangements for the areas of Cork city affected by flooding on two occasions in the past week, to be included in the humanitarian aid scheme administered by the Red Cross.

Since my appointment as Minister of State, I have been concerned at the increased frequency of serious flooding. I am determined that the Government, through the Office of Public Works and local authorities, should be in a position to respond adequately to this problem. To that end, I am finalising proposals for a major review of this whole area. The purpose of the review is to assess the extent of the problem countrywide, clarify roles and responsibilities of the various agencies involved, and recommend appropriate action. The review will be carried out by a group representing the major stakeholders - the Office of Public Works, the Department of Finance, the Department of the Environment and Local Government, local authorities and representatives of farming organisations. The review group will receive submissions from, and consult with, a further wide range of relevant bodies.

The Government and I are committed to responding quickly in order to assist those who have suffered hardship caused by flooding. I commend this Supplementary Estimate for Vote 44 to the select committee. I thank members for their attention and I shall be pleased to hear their views. I will attempt to answer any questions members of the committee may wish to raise.

I thank the Minister of State for having introduced this Estimate. As a Deputy representing one of the constituencies directly affected by the flooding, I know the extent of the hardship and anguish people have suffered in recent weeks. People hit by the floods are trying to come terms with the crisis and the establishment of this fund will provide some consolation, at least.

How did the Minister of State arrive at a figure of €5 million in respect of this incident, compared to the sum of €8.5 million last February? As far as I can recall the previous incident, the extent of the damage on this occasion is far more widespread. In his speech, the Minister of State said that 725 people claimed flood relief aid on the last occasion. The current incident, however, could conservatively be estimated to have hit twice that number of people.

My constituency may not be at the epicentre of the flooding but at least 250 people have been affected in a couple of roads around Tolka Park. The whole of the Taoiseach's constituency in Drumcondra on the other side of the road, which was the focus of more flooding, would add approximately another 700 claimants. Added to that, areas have been flooded in Dunboyne and Clonee in County Meath, so I suspect that this Estimate is considerably short of what is required to maintain a similar level of support to that provided last February.

I presume the Minister of State will reply that in the case of the latest incidents the level of insurance cover for the affected households appears to be higher. That raises the issue of what exactly the criteria are for allocating aid. Media reports quoted people in Ringsend and East Wall as saying that the system, as operated in practice, was not fair and equitable. There were numerous instances where people whose homes were uninsured seemed to be getting less compensation than others who were insured. There seemed to be question marks over the clarity of the criteria employed, which in turn produced confusion in the minds of applicants as to what they might receive cover for. In turn, that produced inequitable arrangements in the end.

It is important to have greater clarity about these matters. I know that a balance must be struck between having a detailed set of criteria and being able to respond in a positive way to the exigencies of the situation where floods are concerned. However, clear criteria need to be established so that we, who ultimately vote the money for flood relief, can be satisfied that the system is being administered fairly to all applicants. Some of the cases quoted, albeit anecdotally, suggest that double the amount of compensation was paid to people who were insured, compared to those who did not have cover, although both experienced similar flood damage. That begs a question about the criteria employed.

The deeper issue is what sort of criteria will the Red Cross apply and will the public be made aware of them? The statements made by the Minister of State and the Red Cross are vague. They refer to "damage to homes" and "extreme hardship" but some people do not really know what that means and so they will not claim. I met a man whose house was under two feet of water, yet he did not think the Government should be compensating him. It is mind-blowing to think that while the Government can find money for stadia and God knows what else, it would not compensate an old-age pensioner living in those flooded conditions. There is a need for some assurance that not just the loudest and best informed will get support and that there is a proper and equitable system of distribution. I am sure the Red Cross will be doing everything it can.

I welcome the review the Minister of State has announced. This is the third incidence of major flooding in Dublin this year. This is thought to be a particularly severe one which we do not expect to recur, but there is no doubt in my mind that the Tolka has been dramatically changed because of development in Clonee, Dunboyne, Mulhuddart and Blanchardstown. This whole valley, which offered a natural flood plain for high water in the Tolka, is now gone. Naturally, this has squeezed the volume down into the city. It is not surprising that we are now seeing these floods occurring because of the level of development.

There is a need for the Office of Public Works to recognise that the view that Dublin City Council can cope with flooding in the Tolka is a fiction. I am a member of Dublin City Council and we have no influence regarding what happens in Meath. We are at the end of the pipeline. If it floods in our area, we can try to issue sandbags and man the barricades, but in terms of developing a long-term response, responsibility lies with the Office of Public Works. It has the expertise.

I understand that, under Office of Public Works legislation, a river has to be designated as being under its responsibility. The Office of Public Works has responsibility for rivers like the Moy. I do not know the flooding potential in that area, but it is tiny compared to that of a river like the Tolka. Therefore, it is a fiction to suggest that Dublin City Council, which represents a tiny geographical area within the flow of this river, could come up with a solution. It must be accepted that it is the Government's responsibility to deal with this issue. The Minister of State should signal soon, if not today, that he is taking on that responsibility and not hiding behind the fiction.

Someone has estimated that it would cost €100 million to deal with the Tolka. There is no way Dublin City Council could come up with that figure. Others have said €50 million and I do not know where the truth lies.

Although people are coming to terms with the latest incident, they wonder if there will be another flood tomorrow or in 12 months time. They are trying to rebuild their lives with no certainty. Everybody is sitting on their hands. Dublin City Council is saying it can only do so much and the Office of Public Works is saying it is the responsibility of Dublin City Council. The Department will have to get off the fence regarding this issue and come to terms with reality.

I welcome the statement of the Minister of State and I particularly welcome the reference to flooding in Cork city. While the Taoiseach was up to his knees in water in Drumcondra, he was not particularly interested in Blanchardstown in my own area, which suffered severely from the effects of the flooding, nor indeed in the dilemma of people in certain parts of Dunboyne and Clonee.

I find the amount in the Estimate very small in the context of the extreme nature of the damage caused for several miles along the Tolka, together with the damage done to business premises in Cork, which appears to have been very extensive. With reference to the Minister of State's statement that he is setting up a review group, the one set of people not included in that group, and who ought to be, are the developers and builders and the councillors who voted. That includes councillors from Fianna Fáil and Fine Gael in particular and some Progressive Democrats, who have voted for absolutely irresponsible rezoning all along the flood plains of the Tolka.

The Tolka and its tributaries have a wide flood plain, particularly in the County Meath area. For instance, the village of Clonee and its business premises were flooded extensively in similar rains two years ago. There is a dreadful problem facing a number of the businesses there because, owing to rezoning and building along one of the tributaries of the Tolka, it is inevitable that the floods will recur again and again.

I recall meeting an architect who told me he bought a house in an estate called Beechdale near Dunboyne and I had to tell him that my grandfather used to look after cattle in that area, which traditionally had to be taken out of those lands in winter because they were so wet. We have another proposal by the same developers, in concert with Fianna Fáil and Fine Gael, to rezone approximately 4,500 units at a location called Pelletstown in the Dublin city area, just above the flood plains of the Tolka. One does not need to be Einstein to figure out what will happen to these residences.

We have had a disgraceful series of rezonings in the Phoenix Park racecourse. The proposal for the racecourse is to have 2,400 units thereon, ceding again that the surface water run-off will go directly into the Tolka. At a spot on Herbert Road at the back of Blanchardstown - near the bridge going into Blanchardstown hospital - the water level rose by three metres in under two hours during the recent rains. It is not possible any more to direct additional run-off into the Tolka. Part of the Taoiseach's constituency will go under water semi-permanently if what is being contemplated proceeds. It has been done to facilitate the exceptional greed of developers and it makes no sense.

I understand that the Taoiseach, as well as standing up to his knees in water, is writing to Dublin City Council to ask it to spend €100 million on flood defences in respect of the Tolka. One might as well throw the money into the sea because one cannot build successfully on a flood plain in the manner that developers have done. Meath County Council has now proceeded in all the areas south-east of Clonee and Dunboyne villages - Deputy Richard Bruton will know those areas very well - to rezone exceptionally large areas for industry and housing over and beyond what I have just spoken about. Unless somebody brings the planners to their senses in that region, we will face a bill for flood defences that will ultimately run into many hundreds of millions.

With regard to the Red Cross scheme, let us consider the experiences of a couple of families in Castlecurragh. They are in a new shared ownership housing development by Fingal County Council, which is to be a showpiece for shared ownership. Beautiful houses have been built in the area but, unfortunately, they became flooded. There is an inquiry into the reason for the flooding but the young families who are buying on an affordable basis had just moved in and had no house contents insurance. The residents of up to 20 houses are facing the destruction of large amounts of their consumer goods, such as washing machines.

Previously, the Red Cross scheme was quite limited. This is an exceptional case and because it involves affordable houses, the young people involved have had great difficulty in putting the money together to get into them, and most of those people have modest employment. Fingal County Council has embarked on a large programme of affordable housing. There is limited property insurance available through the council's management scheme. If the Red Cross scheme is not able to assist these young families who are without insurance for the contents of their homes, will the Minister of State agree to consider specific cases of hardship?

Travelling by train from Wexford this morning, I saw large amounts of surface water along the east coast. If the rains continue to fall, another crisis could occur. We should consider the planning issues involved because building on flood plains is creating serious difficulties.

The flooding in County Wexford has revealed the poor maintenance of the drainage systems for the removal of surface water, both on private land and on council property. The Office of Public Works should ensure that there are up to date mechanisms for safely removing surface water from houses. Some houses in County Wexford were flooded because the drainage through private property was blocked.

The south-east has suffered the same problems as Dublin. There has been huge structural damage to some of the very old houses in County Wexford that were flooded. There has also been major damage to roads. Some country roads in the county have been destroyed. Will the Minister of State indicate if funding can be provided to repair the damage to the roads throughout the country?

I am not sure if a fund of €5 million will cover this crisis because the damage appears to be far more extensive than during the previous episode of flooding at the beginning of the year and many more places have been affected.

I compliment the Red Cross for the manner in which it processed applications under the previous flood relief programme. I know a number of those involved in the Red Cross and I was impressed with the sympathetic and humanitarian way the organisation went about its work. I am confident the same will happen on this occasion.

Will the Minister indicate if the 700 or 800 applicants to which he referred is an estimate? Is he aware of the attitude of the insurance industry? Will the Government continually meet the liabilities arising from what should be the industry's remit, namely, the insuring of property and the processing of claims? Will the industry take advantage of the Government's generosity?

There appears to be some evidence indicating changes to the climate in this country. This issue requires a far more serious response than ad hoc arrangements by the Government on every occasion there is an episode of flooding. It is now a recurring problem and has wider implications. The introduction of a Supplementary Estimate for the Red Cross is not sufficient.

I welcome the Minister of State's review of problem areas throughout the country, although I have doubts about the feasibility of creating an authority greater than the existing agencies - the Office of Public Works, the local authorities and the Department. In some instances, these agencies have been negligent in executing their remit.

The Minister of State and I have attended many public meetings, especially those relating to the future of the Shannon basin, over the years. It beggars belief that, in my lifetime, the Office of Public Works has not seen fit to remove debris from the main channel of the River Shannon, while, during the same period, it has allowed 50,000 acres of peat bogland to be drained into the river. If a great asset and resource such as the River Shannon is neglected, it will create major problems, particularly when it is then used as an outfall by every local authority and industrial development in nine counties.

The Minister of State should ensure that the review should insist on the Office of Public Works meetings its responsibilities. The same should apply to the local authorities which have not maintained the rivers under their control. The flooding in the constituency of Westmeath arose because of the failure to drain a river that has been used as an outfall for housing development. These simple matters have not been addressed. I have attended many meetings where responsibility has been passed from Dúchas to the Office of Public Works, the ESB and other bodies, but nobody has admitted responsibility for the maintenance of the River Shannon. This needs to be done.

The media has widely reported the difficulties with the River Tolka and with other rivers in Dublin and Cork. People in the south Roscommon area have been victims of flooding once or twice a year during my lifetime. When others celebrated the millennium, 26 families were marooned because of flooding and had to be brought home by a high lorry. They celebrated the millennium around fires.

I welcome the Minister of State's comments. I have heard him speak on this matter and I know he has an interest in it. I hope the various bodies involved, including the Office of Public Works and the local authorities, will be given specific responsibilities which they will be obliged to meet.

I welcome the involvement of the Red Cross and the provision of funding to it. However, the proposed funding discriminates against the farming community. There is to be no compensation for the loss of fodder. While it is possible to get insurance against property and house contents, it is not possible to obtain it for the loss of winter grazing, which farmers in the Shannon basin have lost. They must buy fodder and suffer a consequent reduction in income. Yet again the farming community has been handed the wooden spoon. Some compensation was provided in the past in the form of vouchers for £500 to £1,000 for fodder, but that has not happened in recent years. It illustrates the low value placed on farming as a way of life. It is no longer considered necessary to protect farming. I hope the position of farmers will be considered when awarding compensation, especially in cases of hardship. I look forward to the review and to the possibility of having an input to it at local fora and meetings.

The figure of €5 million we sought in the Estimate is based on the best information at our disposal. When €8.5 million was eventually paid out to residents in Dublin city by the Red Cross on the last occasion, an initial Estimate of €5 million was sought so clearly the Red Cross did its calculations——

What was the initial estimate of the number of claimants on this occasion?

On the last occasion the pay out was slightly over an average of €10,000; I think it was €10,700. This figure is based on 500 houses with claims of roughly €10,000 per house.

That is way out.

We will see. If the Red Cross comes up with three times that figure, we will be obliged to provide for that. We did not just pick a figure out of the sky. A good deal of information has been given by Deputies and other people in the areas affected of a fairly substantial level of insurance cover. The money will be paid out largely in respect of homes that are not insured.

With regard to the assessment criteria, assessment will be based on people's needs, their personal losses, stress, their belongings and their capacity to recover from these losses. If they have no insurance and the local authority does not own the house, they will be given enough money to get their house back to some semblance of normality. Householders who are insured are advised to immediately claim from their insurance. I heard some insurance personnel yesterday claim to have acted quickly in dealing with a number of cases, and they spoke of figures up to €50,000 per house. Being insured, therefore, will not debar anyone from claiming assistance from the Red Cross, but applicants must show that hardship has been suffered. If they had insurance and it did not cover all their losses, the amount they would get from the Red Cross would be in the nature of a top-up. The Red Cross has a good deal of experience in this area.

I met David Andrews, who gave me a full report of the results of the spending of €8.5 million in the North Wall area and I understand there was not one complaint. The locals were extremely happy with the way they were dealt with both in terms of equity and the compassion and common sense shown by members of the Red Cross. As expressed by some other members, I have great confidence in the Red Cross in carrying out this job.

People must apply for such assistance and they will have every opportunity to do so. I heard the advertisement for such assistance on radio this morning and it is carried in all the local and national newspapers. People can contact the 1800 freefone number to inquire about the scheme. Local people will be aware of the position and they will inform their neighbours. If one person is affected, it is likely that his or her neighbours will also be affected.

This is the third incident of such flooding, which is a concern. Global warming and climate change are a fact of life. There can also be exceptional years when rainfall is high. It is probably not a defence to say that this is an exceptional year in which there has been a rise in rainfall; we only have to look out the window this morning to see that the ground is already saturated, and it is raining heavily again. It has been an exceptional year for rain by any standards. The indications are that we may have similar incidences of heavy rainfall into the future and, therefore, we must legislate for that.

The Deputy mentioned Dublin City Council. The council has a responsibility to maintain the rivers. I know from my experience and from what people have told me that there is a sizeable amount of debris in the rivers. People have reported prams, supermarket trolleys and even wrecked cars being found in them. Dublin City Council has a responsibility to take care of such debris.

The Office of Public Works paid €870,000 for a survey to the carried out on this area. The consultants have been asked to come up with an interim report to ascertain the type of interim measures that can be taken. It will be completed in a number of days. I expect they will identify works that can be done to alleviate the problems that may arise.

Will the Minister of State designate the river as he has designated small rivers with arterial drainage, which then become his responsibility? The corporation can pull prams out of the Tolka, but that is only pub talk. It is not the source of the problem.

That is not pub talk. I have detailed engineers' reports about where specific flooding happened and they indicate that a metre wide culvert was blocked with debris. It is the autumn and there are fallen leaves and debris, and culverts can become blocked.

This information must be disseminated to ensure that people face their responsibilities. The position is impossible for residents who face the possibility that in 12 months' time they will be back to square one. Someone must take leadership and hold those responsible to account. We do not have the engineers' report to which the Minister of State referred. It should be in the public domain and Dublin City Council excoriated until it deals with the problem. Equally, the Minister of State must have responsibility for the wider issue. The practice of passing the buck between the different agencies will continue. If the engineers in the city council were sitting around this table, they would have other stories to tell us. Leadership and accountability are needed. I do not know how we will get that but the Minister of State is in a better position than we are to do so.

That is the reason we decided on this major review. I do not accept that we are trying to hide behind anyone. There is a difficulty in terms of who has responsibility. There is an element of buck passing when that position is not clear. When the major multimillion euro review of all the major drainage in Dublin was instigated recently, the Office of Public Works advised Dublin City Council that work should be done on the River Tolka. For that reason we invested €870,000 in the review. This is not a simple issue, and I know people have made various comments about the Shannon. A county councillor in my own county said recently at a council meeting that there was a gate somewhere in Limerick which was holding up all the water and if somebody would just open it, the problem would be solved. That was a very simplistic view. He was a member of the Deputy's own party. I have invited him to show me the gate. The whole hydrology aspect is very complicated. The consultants' review will cost €870,000. I have no doubt, however, that it will take a long time so we should seriously examine whatever interim measures are recommended by the consultants and try to put them in place at whatever cost.

On the other issues raised by Deputy Burton, when the Government made the initial announcement it was to do with two dates; it had nothing to do with geography. There is a need now to include Cork and if, as Deputy Twomey said, other problems arise out of the continued heavy rainfall, that aid will be extended.

The review group will involve local councillors because it will include the local authorities which have responsibility for planning, as does the Department of the Environment and Local Government.

The point I am making is that Dublin City Council has a plan to put 4,500 housing units just a few hundred metres from the Tolka flood plain in the Cabra-Finglas area at Pelletstown, and Fingal County Council has rezoned the Phoenix Park racecourse for 2,500 units which will be built close to the Tolka, about half a mile away. Unknown quantities of rezoning have occurred on the flood plains around Dunboyne and Clonee which are known to everybody in the area. I suggest to Deputy Finneran that the equivalent would be if somebody suggested putting 7,000 housing units in the area he mentioned, where families who were marooned celebrated the new millennium by being transported back to their homes on a high lorry.

It does not make any sense for the councils to be allowed to rezone in an intemperate way. The Minister of State's counterpart, the Minister for Justice, Equality and Law Reform, is fond of lecturing the left - we know he is not a communist - about saving money for the public purse but to build vast amounts of housing on the flood plains of rivers and not expect the thousands of householders and businesses to be subsequently flooded is ridiculous. That is the issue I want addressed.

We have extended beyond the detailed consideration of the Supplementary Estimates.

The Office of Public Works has a key role in relation to rivers and with global warming and so on the Tolka is a classic flood river, particularly in the Meath area. I am from this area and I know the river right down its length. The type of flooding experienced this year and two years ago only previously occurred in 1954. The consequences of inappropriate rezoning is going to create bills of hundreds of millions on the public purse and that is crazy.

The developments are now there. Clearly the study will take into account——

They are not here yet. These are new developments.

Clearly the study will take that into account. The science of hydrology can measure the impact. There are rivers the size of the Tolka servicing much bigger urban areas than north County Dublin. Technically it is possible but that is an issue——

Can the Minister of State tell me what rivers he is referring to? I would like him to give me an example because I know what I am talking about. We have a population of 72,000 in the Blanchardstown, Dublin 15, area. I do not know if the Minister of State is familiar with the area but it is one of the largest population areas in the State.

We have heard this speech several times.

May I continue?

There is a study to the extent of 870,000 by consultants who appreciate all——

Sorry, 800 what?

The sum of €870,000 has been spent on a study that is going to go right from Dublin Bay up to the source of the Tolka.

May I make clear to the Minister of State that he is talking about an incredible level of population in and around the flood plains of the Tolka.

If it were a simple matter we would not have this type of study.

Rezoning seems to be simple for the councillors from Fianna Fáil, Fine Gael and the Progressive Democrats.

I am sure they will make a recommendation.

We have considered in detail the Supplementary Estimate which is expenditure for this year. Most of what is being discussed is potential future cost.

I am trying to avoid misery for these families every year from now on.

That is not the item on theagenda.

I am sure the study will take new developments on board.

The study will take that into account. There will be no further——

May I respond to Deputy Twomey who raised the issue of further flooding. The roads are the responsibility of somebody else, thankfully. Deputy Nolan asked about the attitude of the insurance industry. People insure their houses against such eventualities because there is a risk involved and that is where the insurance industry makes its money. I know they have had some difficulties lately and that would appear to be largely due to their investment policies rather than to their insurance policies. I have some experience of insurance and I know that where there are risks from storm or flooding it increases the risk of insurance activity. We are having discussions with the Insurance Industry Federation at the moment and I expect that it would make some recommendations. If a massive investment by the State is going to minimise flooding to such an extent that it will not be an issue then clearly it should have an impact on insurance premia in the future.

They continue to say they will not move.

All insurance companies measure risk be it young drivers or houses on a floodplain.

That is the immediate issue for, as the Minister of State says, 500 houses, but I say 1,000.

It would be a negative move by insurance companies just because they have to pay a claim. Insurance companies reinsure. Irish insurance companies——

Would the Minister of State open a discussion with the insurance companies on that issue, on behalf of this committee?

Yes, we will. We would take a dim view of an insurance company if because of one flooding claim it decided not to insure people along the river. That would be unacceptable.

In reply to Deputy Finneran's question about the River Shannon, one of the first deputations I received as Minister of State was from some of my ex-colleagues from the IFA about the Shannon. Management of the River Shannon rather than drainage of the river is the new attitude. We will be presenting a detailed engineering report very soon. I visited the houses which were flooded during the millennium year. I am not aware of houses being flooded this year but they would automatically qualify for the humanitarian aid scheme.

In terms of the issues raised by the Deputy on fodder relief, Teagasc was to compile a report but it never materialised. The Minister for Agriculture and Food made it clear that he did not expect that there would be any aid forthcoming. We will be presenting our reports soon. There may be scope for some smaller reliefs such as those mentioned by the Deputy.

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