Dáil Éireann Debate, Thursday - 13 May 2021
224. Deputy Gary Gannon asked the Minister for Finance the status of issues facing home buyers in East Wall, Dublin 3 in relation to home cover and perceived flood risks; the funding allocated to this area in relation to flood risk management; and if he will make a statement on the matter. [25501/21]
View answerAs Minister for Finance, I am responsible for the development of the legal framework governing financial services regulation, including for the insurance sector. It is important at the outset to state that the provision of cover is a commercial matter for insurance companies. This is based on an assessment of the risks they are willing to accept. Consequently, neither I nor the Central Bank of Ireland can interfere in the provision or pricing of insurance products, as reinforced by the EU framework for insurance (Solvency II Directive). However, I would like to assure the Deputy that insurance reform is a key priority for the Government, and Minister of State Fleming and I will continue to play a lead role in this policy area.
Current government policy in relation to increasing flood insurance coverage is primarily focused on the development of a sustainable, planned and risk-based approach to managing flooding problems. Almost €1 billion in flood relief measures is being invested over the lifetime of the National Development Plan 2018-2027, with an expectation that insurers will provide cover where this has occurred. This approach is complemented by a Memorandum of Understanding between the Office of Public Works (OPW) and industry representatives Insurance Ireland. This provides for the exchange of data in relation to completed flood defence schemes which should, in turn, provide a basis for the increased provision of flood insurance in these areas.
While there has been an overall increase in the provision of flood insurance between 2015 and 2020, it is recognised that some householders are still experiencing difficulties. This is particularly the case for households in areas with demountable flood defences. I am conscious of the challenges that the absence or withdrawal of flood insurance cover can cause to homeowners and businesses. My officials are engaging with both Insurance Ireland, the OPW and other stakeholders regarding flood defence schemes and how the levels of insurance cover might be improved in areas where flood defence works have been completed.
With regard to flood risk management in East Wall, Dublin 3, I have been advised by the OPW that the area is afforded flood protection from two flood defence schemes progressed by both it and Dublin City Council.
Part of East Wall is protected by the Tolka Flood Relief Scheme. The Dublin City element of this was completed in 2008 at a cost of approximately €7.5m, and protects approximately 1,345 properties. The area in question also experienced significant tidal flooding in November 2002 when the Royal Canal overtopped. This is now protected by the upgrade of Spencer Dock Sea Lock. Dublin City Council completed the Spencer Dock Scheme in 2009 with OPW funding of €3.4m protecting approximately 1,200 properties. As a result of this investment, I understand the high tide event of January 2014, which was higher than 2002, did not result in any flooding in the East Wall area.
