Dáil Éireann Debate, Thursday - 23 November 2023
23. Deputy Ged Nash asked the Minister for Enterprise, Trade and Employment the number of businesses in Louth affected by the recent flooding events that have applied for financial support under the flood relief scheme for businesses to date; the number and value of the payments made to date; when he plans to bring forward the statutory flood relief scheme for businesses; and if he will make a statement on the matter. [51445/23]
View answerWe have finally got to flooding in Louth. I would appreciate an update from the Minister on the nature of the statutory scheme he is considering to provide enhanced business supports for firms that are the victims of flooding. There are ad hoc schemes that the Minister brought to Cabinet recently in response to particular flooding events. There have been three such events in my constituency since August. There were floods in Bettystown and Mornington and, as the Minister will be aware, there was a more recent flood in north Louth. I would appreciate an update on the proposed scheme.
On 24 October, the Government activated the emergency business flooding humanitarian schemes that provide enhanced support of up to €100,000 to business, community, voluntary and sporting bodies that have been impacted by severe flooding events caused by recent storms. The current schemes now cover counties Galway, Cork, Waterford, Limerick, Louth, Wexford and Kilkenny. We want to ensure no one is excluded.
To date, the Irish Red Cross has received 11 applications from businesses in Louth. The applications have only recently been submitted and are currently being processed and are not at payment stage yet. The number of applications may rise as the closing date for receipt of applications is Friday, 15 December. It is a priority for the Government to provide the necessary emergency funding to those affected by these terrible flooding events. I have been to Midleton on numerous occasions and we continue to work through schemes for that area. We have 44 applicants from Midleton and have spent well over €600,000 so far.
There are two schemes, if I have time to outline them. One is the standard scheme, through which a business can apply to the Irish Red Cross for a €5,000 upfront payment without any auditing or anything linked to it. Businesses can also claim up to €20,000, which is a €15,000 on top of the standard scheme, on the back of an assessor making a recommendation on costs and losses. There is also an enhanced flooding scheme, through which businesses can get an upfront payment of €10,000 subject to an audit to show that figure is fully verifiable.
Then they can apply for up to €100,000, that is €90,000 on top of that, on back of a full assessment by a team of assessors that the Red Cross has assembled. Those are the two schemes. Ironically, many businesses will apply for the standard scheme because it is cleaner and easier in some ways if the losses are not significant but the enhanced scheme is there for the businesses that have really been devastated. The Government has effectively made a decision to increase fivefold the supports that are available as a result of the extent of the flooding this year from €20,000 to €100,000 now. I will meet Red Cross representatives later today to talk about any anomalies or any flexibilities it deems appropriate to get money to people quickly.
I thank the Minister. Can we assume the statutory scheme, when he brings it forward, will look very similar to the business flood relief and enhanced flood relief schemes? Will he give a timeline on their introduction?
I want to record my appreciation to him for the rapid response by him and his Department on the introduction of a scheme for Louth on foot of the devastating experience by many businesses in the Carlingford area of north Louth at the end of October and in early November. He will accept that bringing in schemes on an ad hoc basis in response to flood events is simply not adequate. Climate change is here. This is the most demonstrable impact of climate change that people face. The devastation and havoc caused is very real. All the costs, however, cannot be socialised. There is a responsibility on the insurance industry to work with the Government to ensure those at risk can obtain flood relief cover given that climate change is here, this is its impact and the industry cannot shirk its responsibilities.
The insurance industry does have a responsibility to work with businesses post flooding and not to simply write off parts of the country because we have a flooding event. The Government will play its part in humanitarian support, which is effectively what this is. The Red Cross is a humanitarian organisation implementing humanitarian supports for businesses. It is not the alternative to insurance provision although, in the short term, in many parts of Ireland where it is not possible to attain flood cover, we must have supports available to business should flooding happen again there, which is why we need to move ahead with OPW-funded schemes to actually get flood protection in place in towns such as Midleton and other parts of the country, including Louth because we know that works. The reason Mallow, Fermoy, Bandon, Skibbereen and Clonmel have not flooded this year, despite all the rain, is the OPW has spent tens of millions of euro on each of those schemes and they work. They protect businesses and homes. We need to focus on climate adaptation as well as mitigation in Ireland and commit hundreds of millions of euro to put infrastructure in place to face the new realities of more violent storms and more rain. The Government is committed to doing that.
