Dáil Éireann Debate, Tuesday - 26 January 2016
56. Deputy Robert Troy asked the Minister for Defence if he will extend the remit of the scheme he announced on 10 December 2015 for small businesses affected by flooding in order that more businesses may apply as currently funding is only available for businesses that are located within an area that pays local authority commercial rates; and if he will make a statement on the matter. [2740/16]
View answerThe Government approved the allocation of €5m to be distributed as emergency humanitarian support to small businesses and community, sporting and voluntary bodies which through no fault of their own have been unable to secure flood insurance and have been flooded recently.
The scheme, which is being administered by the Irish Red Cross Society, provides a once-off ex gratia contribution towards the costs of returning a business premises to its pre-flood condition including the replacement of flooring, fixtures and fittings and damaged stock.
The emergency nature of the response to the difficulties caused by the flooding required a streamlined process. At the same time, the distribution of funds provided by the Exchequer must be subject to prudent management and financial controls and to criteria which provide for accountability and auditing.
In the case of small businesses, the controls that have been put in place for payment under the scheme are considered reasonable, including that the business must have been trading at the time of the flooding incident and that the business must have been operating in a rateable premises.
Applications under a threshold of €5,000 are being paid following a quick verification process between the Irish Red Cross and the local authority responsible for the area in which the business was flooded.
The second stage of the scheme provides a means to seek further support of up to €20,000 per property. This involves a more lengthy process requiring a detailed assessment by loss adjusters appointed for this purpose by the Irish Red Cross.
I have visited a number of sites affected by the flooding in recent weeks and have seen at first hand the difficulties many small businesses have experienced. In cases of particular hardship I am open to having the criteria reviewed where exceptional circumstances arise.
