Dáil Éireann Debate, Tuesday - 17 May 2016
169. Deputy Paul Murphy asked the Minister for Finance the steps he will take to ensure that persons who have suffered from flooding in an area (details supplied) will get adequate house insurance; and if he will make a statement on the matter. [10664/16]
View answerI am aware of the difficulties that the absence or withdrawal of flood insurance cover can cause to homeowners and the recent flooding crisis has 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. 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.
The OPW informed me that they have they have not carried out any flood defence works in the area mentioned and they have no plans to do so. The area is not included in the 300 areas most at risk from flooding under the National Catchment Flood Risk Assessment & Management Programme (CFRAM).
However, the OPW operates a scheme called the Minor Flood Mitigation and Coastal Protection Works Scheme under which funding can be made available to Local Authorities to carry out works or studies on flood mitigation and coastal protection. The scheme applies to relatively straightforward cases of flooding where a solution can be readily identified by a local authority and achieved in a short time frame. Applications are considered for projects that are estimated to cost up to €500,000.
In 2012, OPW paid a sum of €333,000 under this scheme to South Dublin County Council for flood mitigation works in the Jobstown/Killinarden/Knockmore areas of Tallaght. The works were designed to resolve issues which had given rise to a number of flood incidents in the area.
It should be noted that remedial works carried out under this scheme are not covered by the Memorandum of Understanding between Insurance Ireland and OPW, as they are not built to the 1 in 100 years standard that large scale flood protection works carried out by the OPW are.
My officials are undertaking further research in the area of flood insurance which will include a comparative analysis of the different approaches to flood insurance taken in other countries. This will then feed into a report to Government from the Inter-Departmental Flood Policy Co-Ordination Group.
